First Promissory Note Adjustment Sample Clauses
The First Promissory Note Adjustment clause establishes the terms under which the initial promissory note associated with a transaction may be modified after its issuance. Typically, this clause outlines specific conditions or events—such as changes in interest rates, payment schedules, or principal amounts—that trigger an adjustment to the note. For example, if certain financial benchmarks are met or missed, the repayment terms might be recalculated accordingly. The core function of this clause is to provide flexibility and ensure that the promissory note remains fair and reflective of the parties' intentions as circumstances evolve.
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First Promissory Note Adjustment. The principal amount of the First Promissory Note shall be One Million Dollars ($1,000,000) subject to adjustment as follows: if on the Closing Date the sum of (x) Long-Term Debt (excluding the Schreder Promissory Note) and (y) Capital Lease Obligations (together, the “Actual Long-Term Debt”) is less than Six Million Dollars ($6,000,000) (the “Long-Term Debt Target”), then the amount of the First Promissory Note shall be increased by the difference between the Long-Term Debt Target and the Actual Long-Term Debt; provided, however, that in no event will the principal amount of the First Promissory Note exceed Two Million Dollars ($2,000,000).