Commitment Reallocation Sample Clauses
The Commitment Reallocation clause defines the process by which obligations or commitments under an agreement can be redistributed among the parties. Typically, this clause outlines the circumstances under which reallocation is permitted, such as changes in project scope or participant capacity, and specifies the method for adjusting each party's share of responsibilities or deliverables. Its core function is to provide flexibility and ensure that the agreement remains workable if original commitments become impractical, thereby maintaining project continuity and fairness among participants.
Commitment Reallocation. (a) Upon giving effect to this Agreement on the Second Amendment Effective Date, any Loans outstanding under the Credit Agreement (as in effect immediately prior to the Second Amendment Effective Date) shall be reallocated among the Lenders in accordance with their respective Credit Exposure, with such reallocations to be effected on the date hereof, including through the funding of replacement Loans by certain Lenders (the “New Lenders”) and/or the paydown of a portion of the principal amount of certain existing Loans to certain Lenders (with this Agreement satisfying any notice required by the terms of the Credit Agreement), in each case, in the amounts set forth on Schedule 1 hereto, such that after giving effect to such reallocation, the aggregate outstanding Loans on and after the Second Amendment Effective Date shall equal the aggregate outstanding Loans prior to the effectiveness of this Agreement, and each Lender’s pro rata share of the Loans shall equal such ▇▇▇▇▇▇’s pro rata share of the Commitments. Each of the Lenders and Loan Parties party hereto hereby (i) authorize and direct the Administrative Agent to effect such reallocation, notwithstanding that such loans may be made, or such loans may be repaid, as applicable, on a non-pro rata basis and (ii) acknowledge and agree that (x) accrued and unpaid interest on the Loans outstanding under the Credit Agreement, which have accrued to but excluding the Second Amendment Effective Date, shall be paid on the Second Amendment Effective Date to the Lenders of such Loans outstanding under the Credit Agreement as in effect immediately prior to the Second Amendment Effective Date and (y) interest amounts which have accrued from and after the Second Amendment Effective Date will be payable to the Lenders of the Loans outstanding under the Amended Credit Agreement (after giving effect to the reallocation contemplated hereby) on the next succeeding Interest Payment Date, which shall be one month from the Second Amendment Effective Date.
(b) Upon the effectiveness of this Agreement, any Non-Consenting Lenders shall cease to be a Lender under the Amended Credit Agreement, in accordance with Section 4.12(b)(vi) of the Amended Credit Agreement.
Commitment Reallocation