Common use of Automatic Reduction and Termination Clause in Contracts

Automatic Reduction and Termination. (i) The Commitments of all Lenders shall be automatically reduced to zero at 5:00 p.m. on the Commitment Termination Date. (ii) If the daily average aggregate amount of the Commitments of all Lenders for any period of three consecutive months ending on any Determination Date exceeds 120% of the daily average of the Advances Outstanding during such period, then on such Determination Date, the aggregate amount of the Commitments of the Lenders shall be automatically and permanently reduced (pro rata, based on each Lender’s Percentage), to an aggregate amount equal to the greater of (x) 120% of the daily average of the Advances Outstanding during such three-month period and (y) the Advances Outstanding on such Determination Date (such reduction, an “Automatic Commitment Reduction”); provided that the Borrower may elect not to have such Automatic Commitment Reduction apply upon delivery to Administrative Agent of written notice at least 10 Business Days prior to such Determination Date (subject to the increased Commitment Fee Rate as described in such definition). Other than as set forth in the preceding sentence, the occurrence of any subsequent Automatic Commitment Reduction shall have no effect on the Commitment Fee Rate.