Common use of Priority Amount Clause in Contracts

Priority Amount. On each Reservation Date, Founder shall have the right (the “Capital Priority Right”) to reserve up to the Priority Amount for its activities pursuant to the Program Documents during the following Reservation Period. At least 10 business days prior to each Reservation Date, the Company shall inform Founder in writing of the Priority Amount for the following Reservation Period, along with an accounting of how the Priority Amount was calculated. On or prior to the applicable Reservation Date, Founder shall advise the Company in writing of (i) whether Founder intends to exercise its Capital Priority Right and (ii) how much of the Priority Amount Founder intends to use for its activities pursuant to the Program Documents during the Reservation Period (such amount, the “Reserved Priority Amount”). The Company shall allocate the Reserved Priority Amount solely for use by Founder Parties until the following Reservation Date. The amount by which the Reserved Priority Amount at a Reservation Date is less than the full Priority Amount at that Reservation Date will be Lost Priority Amount and will not be subject to the Capital Priority Right.