Temporary Fee Cap Clause Samples
A Temporary Fee Cap clause sets a maximum limit on the fees that can be charged for a specific period during the term of an agreement. Typically, this cap applies to service fees, management fees, or other recurring charges, and remains in effect for a defined timeframe, after which standard or renegotiated rates may apply. The core function of this clause is to provide cost predictability and financial relief to the paying party during the initial phase of a contract, addressing concerns about unexpected or escalating expenses.
Temporary Fee Cap. The Investment Counsel and the Fund hereby agree that effective November 1, 2023, the Investment Counsel shall waive its fees and/or reimburse expenses so that total annual fund operating expenses (excluding interest, taxes, brokerage commissions, and extraordinary expenses) do not exceed 1.05% of average daily net assets. Amounts waived and/or reimbursed shall not be subject to recoupment by the Investment Counsel. This expense cap shall terminate April 30, 2025, unless the Investment Counsel agrees to an extension.