Common use of Repayment Amount Clause in Contracts

Repayment Amount. 7.1 The Parties agree that the share transfer price to be paid by the Lender or its designated natural or legal Persons shall be mutually set off against the Loan under this Agreement in accordance with Section 6.1 above. When the Borrower transfers the Interests to the Lender or to the Lender’s designated natural or legal Persons pursuant to the Exclusive Purchase Option Agreement, in case the PRC law (then applicable) requires that the share transfer price should be based on an appraisal of assets by an organization acceptable to the Lender, the Parties agree that the setting off shall be handled in the following manner: In the event that the share transfer price is equal to or less than the principal of the Loan, the Parties agree that the share transfer price shall be set off against the principal of the Loan in its entirety; and hence the Borrower shall be deemed to have fully paid off all principal of the Loan to the Lender and no interest incurred thereon shall be paid. In the event that the share transfer price is more than the principal of the Loan, the Parties agree that the share transfer price shall be set off against the principal and the interest of the Loan together, such that any excess in amount between the share transfer price and the principal of the Loan shall be deemed interest accrued thereon.