Common use of Application of proceeds and reduction of Commitments Clause in Contracts

Application of proceeds and reduction of Commitments. (a) Any Drop Down Proceeds and equity contributed to a Borrower in connection with a Drop Down used for prepayment pursuant to paragraph (a) of Clause 8.2 (Drop Down) shall be applied in the following order: (i) firstly, to prepay the relevant Facility B Tranche with an amount of up to USD 16,250,000 (plus interest and Break Costs); (ii) secondly, to prepay the relevant Facility A Tranche with an amount of up to USD 7,500,000 (plus interest and Break Costs); (iii) thirdly, to prepay the other Facility B Tranche with an amount of up to USD 16,250,000 (plus interest and Break Costs); and (iv) fourthly, to prepay the other Facility A Tranche with an amount of up to USD 7,500,000 (plus interest and Break Costs). (b) Any other amount prepaid or cancelled pursuant to this Agreement shall be applied pro rata against any scheduled repayments (including the balloon) of both Facilities in inverse order of maturity. (c) Any amount cancelled shall reduce each Lender’s Commitment in respect of each Facility by an amount equal to the proportion of the cancelled amount of that Facility which (prior to such reduction) its Commitment in respect of the relevant Facility bears to the Available Facility of that Facility on that date. (d) The application procedures in (a) and (b) above, do not apply to prepayments or cancellations made pursuant to Clauses 7.1 (Illegality) and 7.4 (Right of cancellation and repayment in relation to a single Lender).