Common use of Equalisation Clause in Contracts

Equalisation. This clause 4.3 shall apply to a Subsequent Investor who is admitted to the Partnership after the First Closing Date pursuant to the provisions of clause 4.1 or who has increased their Commitment pursuant to clause 4.2, and where Loan Commitments have been drawn down (the "Relevant Drawdown") from existing Investors ("Previous Investors") on or after the First Closing Date but prior to the First Drawdown Date of the Subsequent Investor (otherwise than in respect of Commitments drawn down to meet any General Partner's Share and the provisions of clause 4.4 shall apply in respect of such drawdown). Such Subsequent Investor shall pay to the Partnership on its First Drawdown Date, an amount equal to (in addition to the Capital Contribution required under clause 5.2 and 5.3): the amount notified to such Subsequent Investor by the Manager as being necessary to equalise (in percentage terms) the net amount drawn down from all Investors (excluding any drawdowns in respect of the General Partner's Share, but for the avoidance of doubt including its share of Formation Expenses) after taking into account any amounts (other than any amounts equal to Equalisation Interest) distributed to Previous Investors as set out in this clause 4 ("Equalisation Amount"); and an additional amount calculated thereon during the period commencing on the date of the first Relevant Drawdown and ending on the First Drawdown Date of such Subsequent Investor equal to interest at the rate of ▇▇▇▇▇ plus 2 per cent per annum for the period from the date when such amount (or the relevant portion thereof) would have been drawn down had such Subsequent Investor been an Investor since the First Closing Date to the date of its admission ("Equalisation Interest"). The Equalisation Amount and Equalisation Interest shall be distributed to Previous Investors pro rata to their respective Outstanding Loans as soon as is practicable after receipt from Subsequent Investors. The Equalisation Amount so distributed will be in partial repayment of the Outstanding Loans of the Previous Investors and will increase their Undrawn Loan Commitments (so that immediately thereafter the amounts of all Investors' Undrawn Loan Commitments will bear the same proportion to their respective Loan Commitments) and thereby be available for drawdown again.