Scheduled Commitment Reductions Clause Samples
The Scheduled Commitment Reductions clause defines the process by which a party’s financial or contractual commitments are systematically decreased over time according to a predetermined schedule. Typically, this clause outlines specific dates or intervals when the committed amounts are reduced, such as lowering a loan facility’s available credit or decreasing a supplier’s minimum delivery obligations. Its core practical function is to provide predictability and structure to the reduction of obligations, ensuring both parties can plan accordingly and reducing the risk of sudden, unexpected changes in commitments.
Scheduled Commitment Reductions. In addition to any reductions pursuant to Section 2.07(b), the combined Commitments will be permanently reduced by the following amounts (as reduced by any reduction in the applicable year pursuant to Section 2.07(a)) annually on April 11, 2002 and each anniversary thereof through and including the Maturity Date: Date Amount ---- ------ April 11, 2002 $9,750,000 plus 13% of the amount the combined Commitments have been increased pursuant to Section 2.12 on or prior to such date April 11, 2003 $10,500,000 plus 14% of the amount the combined Commitments have been increased pursuant to Section 2.12 on or prior to such date April 11, 2004 $9,750,000 plus 13% of the amount the combined Commitments have been increased pursuant to Section 2.12 on or prior to such date April 11, 2005 Balance of combined Commitments on such date To the extent applicable, Company will make the prepayments required by Section 2.06(c) on such dates.
Scheduled Commitment Reductions. Commencing September 30, 2000, and at the end of each calendar quarter thereafter, the Facility A Commitment as in effect on September 30, 2000, shall be automatically reduced by the percentages set forth below: Quarterly Percentage Reduction of Facility A Commitment In Effect on Dates of Reduction September 30, 2000 ------------------ ---------------------------------- September 30, 2000 and 2.500% December 31, 2000 March 31, 2001, June 30, 3.750% 26 2001, September 30, 2001 and December 31, 2001 March 31, 2002, June 30, 3.750% 2002, September 30, 2002 and December 31, 2002 March 31, 2003, June 30, 4.375% 2003, September 30, 2003 and December 31, 2003 March 31, 2004, June 30, 5.000% 2004, September 30, 2004 and December 31, 2004 March 31, 2005, June 30, 6.875% 2005, September 30, 2005 and December 31, 2005 The Borrower shall make a repayment of the Facility A Loans outstanding, together with accrued interest thereon, on or before the effective date of each reduction in the Facility A Commitment under this Section 2.4, such that the aggregate principal amount of the Facility A Loans, the Swing Line Loans and the Letter of Credit Obligations outstanding at no time exceeds the Facility A Commitment as so reduced. In addition, any remaining unpaid principal and interest under the Facility A Commitment shall be due and payable in full on the Facility A Maturity Date.
Scheduled Commitment Reductions. The Revolving Credit Commitments shall be permanently reduced in 16 quarterly installments, commencing on December 31, 2003 and continuing on each Quarterly Date thereafter through and including the Revolving Credit Commitment Termination Date, each of which installments shall be in an amount equal to the percentage of the Revolving Credit Commitment (as in effect on December 30, 2003) specified opposite such installment in the following table:
Scheduled Commitment Reductions. The Revolving Credit Commitment shall be automatically and permanently reduced on March 31, June 30, September 30 and December 31 of each year commencing on September 30, 2002 and ending on the Revolver Maturity Date by an amount equal to (a) the amount of the Revolving Credit Commitment on September 30, 2002 (before accounting for the September 30, 2002 reduction) multiplied by (b) the quarterly reduction percentage specified below, such that on the Revolver Maturity Date there will be no Revolving Credit Commitment: Revolving Credit Commitment as of 12/31, Assuming Only Quarterly Calendar Scheduled (No Voluntary or Reduction Year Other Mandatory) Reductions Percentage -------- --------------------------- ---------- 2002 $230,000,000 4.00% (two payments only) 2003 $190,000,000 4.00% 2004 $140,000,000 5.00% 2005 $ 90,000,000 5.00% 2006 $ 30,000,000 6.00% 2007 $ 0 (6/30/07) 6.00% (two payments only)
Scheduled Commitment Reductions. The Revolving Credit Commitments shall be permanently reduced in 16 quarterly installments, commencing on December 31, 2003 and continuing on each Quarterly Date thereafter through and including the Revolving Credit Commitment Termination Date, each of which installments shall be in an amount equal to the percentage of the Revolving Credit Commitment (as in effect on December 30, 2003) specified opposite such installment in the following table: =================================================================== Percentage of the Revolving Quarterly Date Credit Commitment Reduction =================================================================== Percentage of the Revolving Quarterly Date Credit Commitment Reduction December 31, 2003 3.75% ------------------------------------------------------------------- March 31, 2004 3.75% ------------------------------------------------------------------- June 30, 2004 3.75% ------------------------------------------------------------------- September 30, 2004 3.75% ------------------------------------------------------------------- December 31, 2004 5.00% ------------------------------------------------------------------- March 31, 2005 5.00% ------------------------------------------------------------------- June 30, 2005 5.00% ------------------------------------------------------------------- September 30, 2005 5.00% ------------------------------------------------------------------- December 31, 2005 10.00% ------------------------------------------------------------------- March 31, 2006 10.00% ------------------------------------------------------------------- June 30, 2006 10.00% ------------------------------------------------------------------- September 30, 2006 10.00% ------------------------------------------------------------------- December 31, 2006 6.25% ------------------------------------------------------------------- March 31, 2007 6.25% ------------------------------------------------------------------- June 30, 2007 6.25% ------------------------------------------------------------------- September 30, 2007 6.25% =================================================================== In addition, the Revolving Credit Commitments shall be permanently reduced to zero on the Revolving Credit Commitment Termination Date.
Scheduled Commitment Reductions. In addition to any reductions pursuant to Section 2.08(b), the combined Commitments will be permanently reduced by $5,000,000 (as such amount may be reduced by any reduction in the applicable year pursuant to Section 2.08(a)) on each of April 11, 2002, April 11, 2003 and April 11, 2004. To the extent applicable, Company shall make the prepayments required by Section 2.07(c) on such dates."
(d) Section 2.14(a) of the Credit Agreement is hereby amended by inserting the date "April 11, 2004" in replacement for the date "April 11, 2002" appearing therein.
Scheduled Commitment Reductions. The aggregate amount of the Commitments shall automatically reduce on the dates, and in the respective amount for each such date, in accordance with the following chart: Date of Automatic Reduction Amount --------------------------- ------ March 31, 1999 $2,500,000 June 30, 1999 $2,500,000 September 30, 1999 $2,500,000 December 31, 1999 $2,500,000 March 31, 2000 $2,500,000 June 30,2000 $2,500,000 September 30, 2000 $2,500,000 December 31, 2000 $2,500,000 March 31, 2001 $3,750,000 June 30, 2001 $3,750,000 September 30,2001 $3,750,000 December 31, 2001 $3,750,000 March 31, 2002 $3,750,000 Maturity Date Remaining amount of Commitments 22 Each such reduction of the Commitments shall automatically occur in accordance with this Section 2.2(c) on each such date, regardless of the aggregate amount of the Commitments on each such date immediately prior to such reduction. Notwithstanding anything herein to the contrary, each mandatory reduction of the Commitments under Section 2.2(c) below shall decrease the amount of the scheduled reductions of the Commitments under this Section 2.2(b) as follows: (i) 50% of each such mandatory reduction will decrease the amount of each of the scheduled quarterly reductions (including the final scheduled reduction on the Maturity Date) in inverse order of maturity and (b) 50% of each such mandatory reduction will decrease the amount of each of the remaining scheduled reductions (excluding the final scheduled reduction on the Maturity Date) on a ratable basis.
Scheduled Commitment Reductions. The chart listing scheduled reductions of the Commitment Amount set forth in Section 6.1.1 is amended in its entirety to read as follows: January 1, 2004 $30,000,000 January 1, 2005 $35,000,000.