Common use of Reduction of Principal Amount upon Exercise of Warrants Clause in Contracts

Reduction of Principal Amount upon Exercise of Warrants. Any Lender holding Warrants shall be entitled to pay some or all of the Exercise Price (as defined in the Warrants) for any of its Warrants by offsetting amounts owed to such Lender (such Lender, an "Exercising Lender") in respect of its interest in the Loan as provided in Section 2.1(b)(ii) of the Warrants (such exercise, a "Loan Discharge Exercise"). In such event, the principal amount of the Loan outstanding and owing to the Exercising Lender on the effective date of such exercise shall be discharged on a dollar-for-dollar basis by the amount of the Exercising Lender's interest in the Loan which was applied to pay such Exercise Price. Any such reduction in the principal amount of the Loan shall be applied to the then remaining installments of the outstanding principal amount of the Loan owed to such Exercising Lender in the inverse order of maturity thereof. For the avoidance of doubt, no discharge of the principal amount of the Loan as provided herein shall discharge the principal amount of the Loan owed to any other Lender or otherwise impair the Borrower's obligations with respect thereto. An Exercising Lender shall give prompt written notice to the Agent (with a copy to the Borrower) of any exercise of its Warrants in the manner described in this subsection in order to enable the Agent to record such transaction.