Common use of Exit Payment Clause in Contracts

Exit Payment. Notwithstanding anything to the contrary in the Loan Documents, on the date when the Revolver Commitments (in each case, whether before, at the time of or after the Maturity Date or any acceleration, bankruptcy, insolvency or otherwise) are reduced or terminated in an amount that causes (or such lesser amount of Revolver Commitments that are so reduced or terminated that the Lenders have agreed to cause) the remaining amount of outstanding Revolver Commitments to be less than $10,000,000, the Borrowers shall pay in cash at such time to the Lenders (based on their Pro Rata Share of such Revolver Commitments) a non-refundable exit payment (the “Revolver Exit Payment”) in a total amount equal to $1,000,000. The parties to this Agreement acknowledge and agree that the Agent and the Lenders would not have entered into this Agreement and the other Loan Documents without the Borrowers agreeing to pay the Revolver Exit Payment in the aforementioned instances. The parties to this Agreement further acknowledge and agree that the Revolver Exit Payment set forth in this Section 2.09(g) is not intended to act as a penalty or to punish the Borrowers or any other Loan Parties for any such Revolver Commitment reduction or termination.