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 sum of (a) the daily average of the Advances Outstanding and (b) the daily average of the aggregate Unfunded Advance Amounts for any period of six (6) consecutive months commencing on the day immediately following the last day of the Ramp-Up Period and ending on any Determination Date is less than 75% of the Facility Amount then in effect during such period, then on such Determination Date, upon not less than ten (10) Business Days prior written notice from the Administrative Agent to the Borrower, the Collateral Manager and the Equityholder, the aggregate amount of the Commitments of the Lenders shall be permanently reduced (pro rata, based on each Lender’s Percentage), to an aggregate amount equal to the greater of (x) the Advances Outstanding divided by 75% and (y) the sum of the daily average of the Advances Outstanding and the daily average of the aggregate Unfunded Advance Amounts during such six-month period (such reduction, a “Commitment Reduction”); provided that the Borrower may elect not to have such Commitment Reduction apply upon delivery to Administrative Agent of written notice within ten (10) Business Days of its receipt of notice of such Commitment Reduction.