The automatic termination clause specifies conditions under which a contract will end automatically without any further action required by either party. It typically outlines specific events or timelines that trigger the termination, ensuring clarity and reducing the need for additional negotiation or intervention.
Automatic Termination Event: We will automatically redeem your ETNs (in whole only, but not in part) if, on any index business day prior to or on the final valuation date, the intraday index level is less than or equal to the automatic termination trigger calculated on the valuation date immediately preceding the beginning of such index business day. We will redeem your ETNs on the relevant redemption date and will deliver a notice of redemption to the Depositary Trust Company (“DTC”) in the form attached as Annex C that will specify such date. Upon such redemption, you will receive a cash payment equal to the automatic redemption value.
Automatic Termination Trigger: On any valuation date, the automatic termination trigger will equal (a) 1.4 times (b) the closing level of the Index on such valuation date times (c) the financing level on such valuation date divided by (d) the long index amount on such valuation date. The automatic termination trigger will be published under the ticker symbol “FFEU.ATT”.
Automatic Termination Date: An automatic termination date is any index business day on which an automatic termination event occurs.
If an Automatic Termination Event Occurs, Your Payment on the Relevant Redemption Date May Be Less Than the Intraday Indicative Note Value at the Time of the Automatic Termination Event
“Automatic Termination Event” means (i) a change in the Act, or another applicable statute, occurring subsequent to the Effective Date, that will have the effect of creating a new, or higher, assessment or taxation on net income or capital of the FHLBanks, or (ii) a change in the Act, another applicable statute, or the Regulations, occurring subsequent to the Effective Date, that will result in a higher mandatory allocation of an FHLBank’s Quarterly Net Income to any Retained Earnings account than the annual amount, or total amount, specified in an FHLBank’s capital plan as in effect immediately prior to the Automatic Termination Event.
“Automatic Termination Event Declaration Date” means the date specified in section 10.1.1 or 10.1.2 of this Capital Plan. “Bank’s Total Consolidated Obligations” means the daily average carrying value for the calendar quarter, excluding the impact of fair value adjustments (i.e., fair value option and hedging adjustments), of the Bank’s portion of outstanding System Consolidated Obligations for which it is the primary obligor. “Declaration of Automatic Termination” means a signed statement, executed by officers authorized to sign on behalf of each FHLBank that is a signatory to the statement, in which at least 2/3 of the then existing FHLBanks declare their concurrence that a specific statutory or regulatory change meets the definition of an Automatic Termination Event.
“Declaration of Automatic Termination” means a signed statement, executed by officers authorized to sign on behalf of each FHLBank that is a signatory to the statement, in which at least 2/3 of the then existing FHLBanks declare their concurrence that a specific statutory or regulatory change meets the definition of an Automatic Termination Event.
“Automatic Termination Event” means (i) a change in the Act, or another applicable statute, occurring subsequent to the Effective Date, that will have the effect of creating a new, or higher, assessment or taxation on net income or capital of the FHLBanks, or (ii) a change in the Act, another applicable statute, or the Regulations, occurring subsequent to the Effective Date, that will result in a higher mandatory allocation of an FHLBank’s Quarterly Net Income to any Retained Earnings account than the annual amount, or total amount, specified in an FHLBank’s capital plan as in effect immediately prior to the Automatic Termination Event.
This Agreement will terminate automatically (i) upon Consultant’s death or disability (if such disability substantially impairs his ability to provide consulting to the Company), provided, however, that upon such automatic termination, the Company shall not be entitled to any reimbursement of any amount actually paid to Consultant, or (ii) upon Consultant’s valid revocation of the Separation Agreement (in either case, such a termination, an “Automatic Termination”). In the event of an Automatic Termination, notwithstanding anything in this Agreement to the contrary, the Company will only be obligated to pay for consulting actually rendered on or before the date of such automatic termination.
Section 3. Automatic Termination. If the condition specified in Section 2 is not satisfied by the day and time specified therein, and as required to be satisfied, this Agreement will automatically terminate unless the parties mutually agree otherwise, which automatic termination shall be without liability on the part of any party to any other party, except that Section 7 shall at all times be effective and shall survive such automatic termination.
Each of the Purchase Agreements is subject to certain interlocking provisions under which certain events under one Purchase Agreement may result in the automatic termination of each of the other Purchase Agreements (the “Automatic Termination Provision”). Additionally, under very limited circumstances, certain events under one Purchase Agreement may give the applicable purchaser the right to terminate that Purchase Agreement alone (or, as to the Three Property Purchase Agreement, to terminate that agreement only with respect to the relevant Property), while the other Purchase Agreements remain in place as to all other Properties (the “Partial Termination Provision”).
Under the Investment Company Act of 1940, as amended, consummation of the transaction will result in the automatic termination of the investment management contract between each Putnam Fund and Putnam Management and any related sub-management and sub-advisory contracts, where applicable. In anticipation of this automatic termination, on June 23, 2023, the Board of Trustees of the Putnam Funds approved a new investment management contract between each Putnam Fund and Putnam Management (and new sub-management and sub-advisory contracts, if applicable), which will be presented to the shareholders of each Putnam Fund for their approval at shareholder meetings currently expected to occur in October 2023.
Under the Investment Company Act of 1940, as amended, and the terms of the applicable agreements, consummation of the transaction will result in the automatic termination of the investment advisory agreement between MAM and the Trust, on behalf of each Fund, and the automatic termination of the distribution agreement between MFD and the Trust, on behalf of each Fund.
Such an assignment under the 1940 Act resulted in the automatic termination of the Prior Agreement. The terms of the New Agreement with SGAM are substantially identical to those of the Prior Agreement with Smith Group. The New Agreement is not expected to result in any material changes to the Portfolio’s investment strategies or portfolio management team.
As required under the 1940 Act, the sub-advisory agreement between DDJ and Northern Trust Investments, Inc. (“NTI”) with respect to the Fund (the “Original Sub-Advisory Agreement”) provided for automatic termination upon an assignment, including a change in control.
As discussed below under “Board Consideration,” the Board approved the appointment of Ranger and the Agreement on behalf of the Fund, effective upon the change in control, due to the Prior Agreement’s automatic termination resulting from the Transaction.
Under the Investment Company Act of 1940, as amended, consummation of the transaction will result in the automatic termination of the management and sub-administration agreements. Therefore, the fund’s Board of Trustees has approved new management and sub-administration agreements; the management agreement will be presented to the shareholders of the fund for their approval. Additional informational materials will be mailed to shareholders.
As discussed below under “Board Consideration,” at a meeting held on April 12, 2021, the Board approved the appointment of SGAM and the New Agreement on behalf of the Portfolio, effective July 1, 2021, due to the Prior Agreement’s automatic termination on or about July 1, 2021, resulting from the Transaction.
The Transaction resulted in the “assignment” under the Investment Company Act of 1940, as amended (the “1940 Act”) of the advisory agreement between Saratoga Capital Management, LLC (“SCM”) and Smith Group, resulting in its automatic termination.
Advisory Agreement with the Trust. Effective July 22, 2021, Pendal Group Limited acquired the assets of the Adviser. This resulted in the automatic termination of the Adviser’s advisory agreement with the Fund.
Automatic termination is a contractual provision that causes a contract to end upon the occurrence of a predetermined event or condition without further action by either party. This type of termination is typically included to manage risk and ensure that parties can disengage from an agreement efficiently under certain circumstances. Automatic termination can be triggered by various events, such as a breach of contract, bankruptcy, expiration of a fixed term, or a failure to meet specific obligations.
You should use automatic termination in contracts when you want to ensure that the agreement concludes automatically upon the occurrence of specified events or conditions. This can be advantageous in situations where:
To write automatic termination provisions, it is essential to clearly define the events or conditions that will trigger the termination and the effects on the contractual relationship. Here is an example of how to draft an automatic termination clause:
The contract shall automatically terminate if either party becomes insolvent, subject to bankruptcy proceedings, or fails to fulfill any material obligation under the contract for a period of 30 days after receipt of written notice by the other party, specifying the nature of such failure.
Ensure that the language is precise and that all parties understand the potential consequences to avoid disputes.
Automatic termination provisions are commonly found in various types of contracts, including:
By including automatic termination clauses in these agreements, parties can better control and mitigate the risks associated with unforeseen or undesirable events.
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