Common use of Calculation of Discount Factor Clause in Contracts

Calculation of Discount Factor. (a) In connection with the purchase of each Collateral Obligation and prior to such Collateral Obligation being purchased by the Borrower and included in the Collateral, the Administrative Agent will assign (in its sole discretion) a Discount Factor for such Collateral Obligation. (b) If, but only if, a Revaluation Event occurs with respect to any Collateral Obligation, the Discount Factor of such Collateral Obligation may be amended by the Administrative Agent, in its sole discretion (but subject to the following clause (c)). (c) If, with respect to any Collateral Obligation (i) the first Revaluation Event described in clause (g) of the definition thereof occurs with respect to such Collateral Obligation, (ii) the current Leverage Multiple with respect to such Collateral Obligation is less than 2x higher than the Original Leverage Multiple for such Collateral Obligation and (iii) no other Revaluation Event has occurred with respect to such Collateral Obligation, then the Discount Factor for such Collateral Obligation may only be decreased by the Administrative Agent pursuant to clause (b) above by a percentage equal to (x) 1 minus (y)(A) the Original Leverage Multiple for such Collateral Obligation divided by (B) the then-current Leverage Multiple for such Collateral Obligation. (d) The Administrative Agent will provide written notice of each revised Discount Factor to the Borrower, the Investment Manager and the Collateral Agent.

Calculation of Discount Factor. (a) In connection with the purchase of each Collateral Obligation and prior to such Collateral Obligation being purchased by the Borrower and included in the Collateral, the Administrative Facility Agent will assign (in its sole discretion) a Discount Factor for such Collateral Obligation. (b) If, but only if, a Revaluation Event occurs with respect to any Collateral Obligation, the Discount Factor of such Collateral Obligation may be amended by the Administrative Facility Agent, in its sole discretion (but subject to the following clause (c)). (c) If, with respect to any Collateral Obligation (i) the first Revaluation Event described in clause (g) of the definition thereof occurs with respect to such Collateral Obligation, (ii) the current Leverage Multiple with respect to such Collateral Obligation is less than 2x higher than the Original Leverage Multiple for such Collateral Obligation and (iii) no other Revaluation Event has occurred with respect to such Collateral Obligation, then the Discount Factor for such Collateral Obligation may only be decreased by the Administrative Facility Agent pursuant to clause (b) above by a percentage equal to (x) 1 minus (y)(A) the Original Leverage Multiple for such Collateral Obligation divided by (B) the then-current Leverage Multiple for such Collateral Obligation. (d) The Administrative Facility Agent will provide written notice of each revised Discount Factor to the Borrower, the Investment Manager Manager, each Agent and the Collateral Agent.