reverse break fee

reverse break fee
USA
reverse break-up fee, Also known as a reverse termination fee or a reverse break fee.
A fee paid by the buyer if it breaches the acquisition agreement or is unable to consummate the transaction due to lack of financing and the seller terminates the agreement in accordance with its terms. If an acquisition agreement provides for a reverse break-up fee, the amount of the reverse break-up fee and the conditions under which it is paid are usually set out in the termination provisions of the acquisition agreement.
See also

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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