Common use of Reduction From Sale of Capital Stock and Debt Instruments Clause in Contracts

Reduction From Sale of Capital Stock and Debt Instruments. On the Business Day following the date of receipt by the Borrower of the net proceeds of any sale its Capital Stock or debt instruments or other securities (other than an amount not to exceed $2,000,000 in the aggregate from the sale of securities in connection with any employee stock option plan of the Borrower), the Commitment shall automatically and permanently be reduced by an amount equal (i) 100% of such net proceeds to the extent the Leverage Ratio is greater than or equal to 4.0:1; or (ii) 50% of such net proceeds to the extent the Leverage Ratio is less than 4.0:1; provided, however, the provisions of this Section 2.5(d) shall not apply to equity contributions by the Parent or American Radio Systems. Reductions to the Commitment under this Section shall be applied to the reductions set forth in Section 2.5(a) hereof in inverse order of the reductions set forth therein.