Fees and Commitment Reductions Clause Samples

The "Fees and Commitment Reductions" clause defines how fees are calculated and adjusted in relation to changes in the parties' commitments under an agreement. Typically, this clause outlines the process for reducing financial obligations or service levels, and specifies how such reductions impact the fees owed, such as prorating charges or setting minimum payment thresholds. Its core function is to ensure that both parties have a clear understanding of how financial terms will adapt if the scope of the agreement changes, thereby preventing disputes and maintaining fairness in the contractual relationship.
Fees and Commitment Reductions 
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Related to Fees and Commitment Reductions

  • Application of Commitment Reductions; Payment of Fees The Administrative Agent will promptly notify the Appropriate Lenders of any termination or reduction of unused portions of the Letter of Credit Sublimit or the Swing Line Sublimit or the unused Commitments of any Class under this Section 2.06. Upon any reduction of unused Commitments of any Class, the Commitment of each Lender of such Class shall be reduced by such Lender’s Pro Rata Share of the amount by which such Commitments are reduced (other than the termination of the Commitment of any Lender as provided in Section 3.07). All commitment fees accrued until the effective date of any termination of the Aggregate Commitments shall be paid on the effective date of such termination.