Reduction Events Sample Clauses
A Reduction Events clause defines specific circumstances under which the obligations or quantities under a contract may be decreased. In practice, this clause might apply to situations such as a decrease in the supply of goods due to unforeseen events, or a reduction in payment obligations if certain conditions are met. Its core function is to provide a clear mechanism for adjusting contractual commitments in response to changing circumstances, thereby managing risk and ensuring fairness for both parties.
Reduction Events. (a) (i) On any date of receipt of any Net Proceeds in respect of any Reduction Event by any Several Loan Party:
Reduction Events. At all times prior to the Termination Date, cause the Net Cash Proceeds of each Reduction Event (to the extent of the related Reduction Amount) to be deposited to the Escrow Account on each date of receipt thereof (provided, that in the case of a Specified Debt Financing or a Specified Equity Issuance, the Borrower shall cause such Net Cash Proceeds to be directly deposited to the Escrow Account and shall not permit such Net Cash Proceeds to be deposited to any other account of the Borrower or any of its Subsidiaries pending transfer to the Escrow Account), except to the extent that such Net Cash Proceeds are applied to prepay the outstanding Loans in accordance with clause (ii) of Section 2.06(c).
Reduction Events. (b)(i)(B) of the Credit Agreement is hereby amended by deleting the phrase "or any Competitive Bid Loan" and replacing it with the phrase ", any Competitive Bid Loan or any Quoted Rate Swingline Loan".
Reduction Events