Common use of Additional Rights After the Closing Clause in Contracts

Additional Rights After the Closing. After the Closing, in the event IXC completes additional portions of the Available System, (a) IXC hereby grants, without further action on its part, rights to PSINet so that each of the PSINet Fiber IRU and the Base IRU in the IXC Fibers is extended to cover such completed portions of the Available System (but only up to a total of 10,000 Route Miles) effective immediately upon completion of each portion, and (b) IXC hereby grants, without further action on its part, and will execute the necessary documents to evidence such grant of, additional security interests so that PSINet has a continuing, first priority, perfected and exclusive security interest in (i) the Long- Term Indivisible IRU (with such defined phrase being extended to cover such completed portions of the Available System) and the products and proceeds thereof, and (ii) the Short-Term Indivisible IRU (with such defined phrase being extended to cover such completed portion of the Available System) and the products and proceeds thereof, and the Long-Term Indivisible IRU and the Short-Term Indivisible IRU, as so extended, will thereupon become part of the Collateral. Notwithstanding the foregoing, however, commencing in respect of any completed portion of the Available System, after the date on which such completed portion of the Available System shall have been completed, the length of the Short-Term Indivisible IRU shall not exceed the excess, if any, of 10,000 Route Miles over the number of completed Route Miles on the Available System Accepted by PSINet. To the extent completion of additional portions of the Available System requires shortening the length of the Short-Term Indivisible IRU (which is subject to the security interest pursuant to the preceding sentence) by a certain number of Route Miles (the "Reduction Miles"), the Short-Term Indivisible IRU shall be deemed to be shortened 30 days after the date on which such completed portion of the Available System shall have been completed, by changing its definition to exclude a number of Route Miles equal to the number of Reduction Miles. The specific Route Miles excluded shall be determined by excluding that number of Route Miles of the Available System most recently completed beginning with the eastern most portion along the applicable route, all as set forth in a written notice from IXC to PSINet pursuant to the Security Agreement. The security interest in the Short-Term Indefeasible IRU shall terminate upon the first to occur of the following: (i) IXC's making Available and PSINet's Acceptance of all of the IRU Capacity, and granting an IRU therein, to PSINet on the terms and subject to the conditions of this Agreement, and (ii) the written consent of the parties.