Common use of Termination of the Commitment Clause in Contracts

Termination of the Commitment. The Commitment of Lender hereunder shall terminate upon the earlier of (i) the Final Maturity Date and (ii) the date upon which Borrower's Net Income, determined in accordance with GAAP (but before the payment of rent and other obligations under the Leases), for the preceding 12 calendar months is equal to or in excess of 1.25 times the amount of Borrower's rental and other obligations under the Leases for the same period.

Appears in 2 contracts

Sources: Contract for Purchase and Sale of Hotels (Felcor Suite Hotels Inc), Contract for Purchase and Sale of Hotels (Itt Corp /Nv/)