Common use of Offset Payment for Equity Option Clause in Contracts

Offset Payment for Equity Option. Each time Party A exercises the Equity Option, the Purchase Price that is payable by Party A and/or the Designated Persons to the Transferor in connection with the Purchased Interest shall be used, pursuant to Article 5(a) of the Loan Agreement, to offset the amount outstanding on the Loan (with such offset applied to the principal, interest and capital utilization costs for the Loan as set forth in Article 6 of the Loan Agreement), provided that if there is any tax paid or payable by Party B in connection with the transfer of the Purchased Interest in accordance with this Agreement, then a portion of the Purchase Price equal to the amount of such tax shall be paid to Party B in cash and not applied as an offset to the amount outstanding on the Loan.