Leverage Reduction in Connection with Covenant Defaults Clause Samples

Leverage Reduction in Connection with Covenant Defaults. (a) Prior to the expiration of each Leverage Grace Period under the Credit Agreement relating to Credit Agreement Events of Default resulting from the failure of the Credit Parties to comply with Section 7.11(c) and/or Section 7.11(d) of the Credit Agreement as of the end of any fiscal quarter occurring on or before December 31, 2000, the Fund shall, subject to Section 2.1(d), make a Mandatory Investment in the amount necessary (after giving effect to any concurrent prepayment pursuant to Section 3.3(b)(iii) of the Credit Agreement made with the proceeds of an Asset Disposition) to enable the Credit Parties to cure such Credit Agreement Events of Default in the manner contemplated by Section 7.11(f) of the Credit Agreement. (b) In the event that, prior to the expiration of the Leverage Grace Period for any fiscal quarter, either (i) the Fund shall fail to make the Mandatory Investment required pursuant to Section 2.1(a) for such fiscal quarter or (ii) the proceeds of the Mandatory Investment required pursuant to Section 2.1(a) for such fiscal quarter are not used, for any reason, to prepay the Loans outstanding under the Credit Agreement in accordance with the terms of Section 3.3(b)(v)(B) thereof, the Fund, subject to Section 2.1(d), hereby promises to pay on demand to the Agent (for the ratable benefit of the Lenders) an amount equal to the amount of such required Mandatory Investment. (c) All amounts paid by the Fund to the Agent pursuant to this Section 2.1 shall be applied by the Agent on behalf of the Lenders to the prepayment of the Loans outstanding under the Credit Agreement in accordance with the terms of Section 3.3(b)(v)(B) thereof. (d) Notwithstanding any provision to contrary set forth in this Section 2.1, the obligations of the Fund under this Section 2.1 automatically shall be terminated upon the making of a Mandatory Investment (or a payment to the Agent) pursuant to, and satisfying the requirements of, Section 2.2 or Section 2.3.