Common use of Deferred Commitment Fee Clause in Contracts

Deferred Commitment Fee. If, prior to the thirty-third calendar month anniversary of the Closing Date, (i) Borrower permanently prepays the Obligations in full and terminates the Commitments, or (ii) the Lenders terminate the Revolving Loan Commitment after the occurrence of an Event of Default, Borrower shall pay to Agent, for the benefit of Lenders, as compensation for the costs of Lenders being prepared to make funds available to Borrower under this Agreement, an amount determined by multiplying the percentage set forth below by $25,000,000: three percent (3.0%) for the first eighteen (18) months following the Closing Date and one and one half percent (1.5%) for the nineteenth through thirty-second months following the Closing Date. No amount will be payable pursuant to this paragraph if Borrower voluntarily prepays the Obligations in full or the Lenders terminate the Revolving Loan Commitment due to, and during the continuance of an Event of Default after the thirty-third calendar month anniversary of the Closing Date. Notwithstanding the foregoing subsection 2.3(d), in the event that Agent exercises its right to implement reserves or new eligibility criteria not specifically provided for in the Agreement, and the effect of the implementation of such reserves or new eligibility criteria is to reduce the available Borrowing Base by more than thirty five percent (35%) in comparison to the Borrowing Base calculated without the effect of such reserves or new eligibility criteria, Borrower shall be permitted to voluntarily and permanently prepay the Obligations in full and terminate the Revolving Loan Commitments without incurring the deferred commitment fee otherwise imposed under this subjection 2.3(d).

Deferred Commitment Fee. If, prior to the thirty-third eighteenth calendar month anniversary of the Closing Third Amendment Effective Date, (i) Borrower permanently prepays the Obligations in full and terminates the Commitments, or (ii) the Lenders terminate the Revolving Loan Commitment after the occurrence of an Event of Default, Borrower shall pay to Agent, for the benefit of Lenders, as compensation for the costs of Lenders being prepared to make funds available to Borrower under this Agreement, an amount determined by multiplying the percentage set forth below by $25,000,00040,000,000: three one percent (3.01.0%) for the first eighteen twelve (1812) months following the Closing Third Amendment Effective Date and one and half of one half percent (1.50.5%) for the nineteenth thirteenth through thirty-second eighteenth months following the Closing Third Amendment Effective Date. No amount will be payable pursuant to this paragraph if Borrower voluntarily prepays the Obligations in full or the Lenders terminate the Revolving Loan Commitment due to, and during the continuance of an Event of Default after the thirty-third eighteenth calendar month anniversary of the Closing Third Amendment Effective Date. Notwithstanding the foregoing subsection 2.3(d), in the event that Agent exercises its right to implement reserves or new eligibility criteria not specifically provided for in the AgreementAgreement (other than adjustments to Liquidity Factors), and the effect of the implementation of such reserves or new eligibility criteria is to reduce the available Borrowing Base by more than thirty five twenty percent (3520%) in comparison to the Borrowing Base calculated without the effect of such reserves or new eligibility criteria, Borrower shall be permitted to voluntarily and permanently prepay the Obligations in full and terminate the Revolving Loan Commitments without incurring the deferred commitment fee otherwise imposed under this subjection subsection 2.3(d).”