Common use of Reduction of Variable Amount Upon Decrease in Cap on Permitted Senior Debt Clause in Contracts

Reduction of Variable Amount Upon Decrease in Cap on Permitted Senior Debt. If the Borrower enters into any amendment, restatement, supplement, modification or refinancing of any Junior Debt Document which has the effect of decreasing the maximum amount of Indebtedness for borrowed money constituting “Senior Obligations” (as defined in the Intercreditor Agreement) that the Credit Parties are permitted to incur pursuant to the terms of such Junior Debt Document and such maximum amount is less than the then-effective Variable Amount, the Variable Amount shall automatically be decreased to an amount equal to such maximum amount.