Common use of Option to Pay Cash Interest Clause in Contracts

Option to Pay Cash Interest. (a) At the Company’s sole option, on any Interest Payment Date, the Company may satisfy its obligation to pay interest owed on all Notes on such date by paying Cash Interest rather than issuing Additional Notes provided that the Company complies with the terms and conditions of this Section 2.14. (b) If the Company elects to pay Cash Interest on any such Interest Payment Date, the interest payable on such date shall be calculated (i) with respect to the Series 1 Notes, at a rate of 13% per annum rather than 15% per annum, and (ii) with respect to the Series 2 Notes, at a rate of 13% per annum rather than 15% per annum, each such interest to be accrued and compounded monthly during the applicable interest period. (c) In order to elect payment of Cash Interest on any Interest Payment Date pursuant to this Section 2.14, the Company must deliver notice, pursuant to Section 14.05 of this Amended Indenture, to the Trustee and to the Holders of such election no later than fifteen (15) days preceding the record date for such Interest Payment Date. Such election with respect to any Interest Payment Date will be irrevocable once delivered to the Trustee. Any such notice given in a timely manner will be irrevocable and, accordingly, any failure to pay such Cash Interest on the applicable Interest Payment Date shall constitute a default under Section 6.01(b) hereof, shall not be curable by the delivery of Additional Notes and will accrue further interest under Section 2.12 hereof that must be paid together with the Cash Interest within the applicable cure period in order to remedy such default. (d) Notwithstanding the option to pay Cash Interest in respect of any Interest Payment Date afforded by this Section 2.14, such election may only be made with respect to the next succeeding Interest Payment Date. Except for any Interest Payment Dates and related interest periods for which such election is properly made, all calculations with respect to amounts due under the Amended Indenture, including the calculation of the Applicable Premium and any amounts due upon redemption, repurchase, acceleration or maturity, will be calculated (i) with respect to the Series 1 Notes, at the 15% per annum in-kind interest rate, and (ii) with respect to the Series 2 Notes, at the 15% per annum in-kind interest rate, without giving effect to this Section 2.14. (e) Notwithstanding the provisions of this Section 2.14, interest payable in respect of the final Interest Payment Date may be paid as Cash Interest only and will be calculated (i) with respect to the Series 1 Notes, at an interest rate of 15% per annum, and (ii) with respect to the Series 2 Notes, at an interest rate of 15% per annum.

Option to Pay Cash Interest. (a) At the Company’s sole option, on any Interest Payment Date, the Company may satisfy its obligation to pay interest owed on all Notes on such date by paying Cash Interest rather than issuing Additional Notes provided that the Company complies with the terms and conditions of this Section 2.14. (b) If the Company elects to pay Cash Interest on any such Interest Payment Date, the interest payable on such date shall be calculated (i) with respect to the Series 1 Notes, at a rate of 13% per annum rather than 15% per annum, and (ii) with respect to the Series 2 Notes, at a rate of 13% per annum rather than 15% per annum, each such interest to be accrued and compounded monthly during the applicable interest period. (c) In order to elect payment of Cash Interest on any Interest Payment Date pursuant to this Section 2.14, the Company must deliver notice, pursuant to Section 14.05 of this Amended Indenture, to the Trustee and to the Holders of such election no later than fifteen (15) days preceding the record date for such Interest Payment Date. Such election with respect to any Interest Payment Date will be irrevocable once delivered to the Trustee. Any such notice given in a timely manner will be irrevocable and, accordingly, any failure to pay such Cash Interest on the applicable Interest Payment Date shall constitute a default under Section 6.01(b) hereof, shall not be curable by the delivery of Additional Notes and will accrue further interest under Section 2.12 hereof that must be paid together with the Cash Interest within the applicable cure period in order to remedy such default. (d) Notwithstanding the option to pay Cash Interest in respect of any Interest Payment Date afforded by this Section 2.14, such election may only be made with respect to the next succeeding Interest Payment Date. Except for any Interest Payment Dates and related interest periods for which such election is properly made, all calculations with respect to amounts due under the Amended Indenture, including the calculation of the Applicable Premium and any amounts due upon redemption, repurchase, acceleration or maturity, will be calculated (i) with respect to the Series 1 Notes, at the 15% per annum in-kind interest rate, and (ii) with respect to the Series 2 Notes, at the 15% per annum in-kind interest rate, rate without giving effect to this Section 2.14. (e) Notwithstanding the provisions of this Section 2.14, interest payable in respect of the final Interest Payment Date may be paid as Cash Interest only and will be calculated (i) with respect to the Series 1 Notes, at an interest rate of 15% per annum, and (ii) with respect to the Series 2 Notes, at an interest rate of 15% per annum.