ICR Commitment Sample Clauses
The ICR Commitment clause establishes a party's obligation to maintain a specified Interest Coverage Ratio (ICR) throughout the term of an agreement, typically in the context of loan or financing arrangements. This means the borrower must ensure that its earnings are sufficient to cover interest payments by a predetermined multiple, often calculated using EBITDA or a similar metric. By requiring adherence to this financial covenant, the clause helps lenders monitor the borrower's financial health and reduces the risk of default, thereby protecting the lender's interests.
ICR Commitment. Flextronics agrees that it will pass on to Nortel Networks ICR equal to a certain percentage of the total revenue received from purchases of Repair Services made by Nortel Networks (“Total Revenue”). This percentage is defined as the “Committed ICR %”. [•]. If the Total Revenue is reduced because Nortel Networks has not purchased Repair Services from Flextronics for any of the reasons set out in Section 3.3.1(B) or (C), the ICR to be delivered shall be calculated as if the Total Revenue had not been so reduced.
ICR Commitment. Flextronics agrees that it will pass on to Nortel Networks ICR equal to a certain percentage of the total revenue received from purchases of goods and services made by Nortel Networks, excluding purchases of IRM and Non-integrated OEM (“Total Revenue”). This percentage is defined as the “Committed ICR %”. [l ]. If the Total Revenue is reduced because Nortel Networks has not purchased Products from Flextronics for any of the reasons set out in Section 1.3.3(B), (C), (D) or (E), the ICR to be delivered shall be calculated as if the Total Revenue had not been so reduced.