Initial Reductions Clause Samples
The "Initial Reductions" clause defines the specific circumstances and methods by which certain amounts, obligations, or entitlements are decreased at the outset of an agreement or transaction. Typically, this clause outlines the criteria for calculating these reductions, such as applying discounts, deducting prepayments, or adjusting for prior credits, and specifies when and how these adjustments take effect. Its core practical function is to ensure that all parties have a clear and mutual understanding of any upfront changes to the baseline figures, thereby preventing disputes and promoting transparency in the agreement's financial terms.
Initial Reductions. When a justifiable decrease in the number of teaching positions within a particular endorsement area occurs, Teachers who are employed under alternative or emergency licenses, temporary contracts, or who have probationary status, shall have their employment contracts terminated first. These contracts shall be canceled in the following order based upon reverse seniority with the least senior Teachers being reduced first: Teachers employed under alternative or emergency licenses, temporary contracts, Teachers in the first year of employment with the District, Teachers in the second year of employment with the District, Teachers in the third year of employment with the District, Teachers who have more than three years of employment with the District who hold probationary status.
Initial Reductions. In the event that an Initial Reduction Lender's Percentage of the Commitment Amount is greater than $30,000,000 and to the extent the Commitment Amount shall not have been reduced (except to the extent during a period in which an Event of Default was then continuing) or would not be reduced by an amount exceeding in the aggregate $60,000,000, any reduction in the Commitment Amount pursuant to Section 2.2.1 shall result in an adjustment to such Lender's Percentage such that after giving effect to such reduction, such Initial Reduction Lender's adjusted Percentage shall be equal to the quotient, expressed as a percentage, of
(a) the greater of $30,000,000 and the excess of
(i) the product of (A) such Lender's Percentage immediately prior to such reduction and (B) the Commitment Amount immediately prior to such reduction
(ii) the product of (A) the amount of such reduction (the "Reduction Amount") and (B) the Initial Reduction Percentage (as defined below) of such Lender divided by
(b) the excess of the Commitment Amount immediately prior to such reduction over the Reduction Amount; provided, however, that in the event that the Reduction Amount is not entirely applied in reducing the percentages of the Initial Reduction Lenders pursuant to the foregoing and any such Initial Reduction Lender's Percentage (after such application) of the Commitment Amount is in excess of $30,000,000, the portion of such Reduction Amount not so applied shall be applied to reduce such Initial Reduction Lender's Percentage of the Commitment Amount until such Lender's Percentage of the Commitment Amount equals $30,000,000. After adjusting the Percentages of the Initial Reduction Lenders in accordance with the foregoing, the Percentages of the other Lenders shall be adjusted to equal the quotient, expressed as a percentage, of
(a) the product of (i) such Lender's percentage immediately prior to such reduction and (ii) the Commitment Amount immediately prior to such reduction over
(b) the excess of the Commitment Amount immediately prior to such reduction over the Reduction Amount.