Common use of Voluntary Reduction of Letter of Credit Commitments Clause in Contracts

Voluntary Reduction of Letter of Credit Commitments. Upon at least three Business Days prior written notice to Administrative Agent, Company shall have the right, at any time prior to the Pre-Funded L/C Commitment Termination Date, to permanently reduce the Pre-Funded L/C Commitment to zero subject to Company’s cash collateralization to the extent of Issuing Bank’s outstanding Letter of Credit, in an amount (but in no event greater than 105% of the aggregate undrawn face amount) and manner reasonably satisfactory to Administrative Agent and Issuing Bank. Such reduction to the Pre-Funded L/C Commitments shall apply to proportionately and permanently reduce the Pre-Funded L/C Commitment of each Lender (based on their respective Pro Rata Share) to zero. At the time of the reduction of the Pre-Funded L/C Commitments to zero, Administrative Agent shall request Deposit Bank to withdraw from the Pre-Funded L/C Deposit Account the Pre-Funded L/C Deposits and to pay the same over to Administrative Agent, and Administrative Agent shall return to the Pre-Funded L/C Lenders (ratably in accordance with their respective Pro Rata Share) their Pre-Funded L/C Deposits.