Common use of Additional Interest Under Certain Circumstances Clause in Contracts

Additional Interest Under Certain Circumstances. If the Shelf Registration Statement is not filed with the Commission within 60 days after the date hereof, then on the 61st day after the date hereof, and on each date which is 30 days after such date until such time as the Shelf Registration Statement is filed with the Commission, the Company shall make a cash payment to the Holders of the Initial Securities equal to $5 for each $1,000 principal amount of the Initial Securities held. If the Shelf Registration Statement is not declared effective by the Commission within 120 days after the date hereof, then on the 121st day after the date hereof, the Company shall make a cash payment to the Holders of the Initial Securities equal to $10 for each $1,000 principal amount of the Initial Securities held. If the Shelf Registration Statement is not declared effective by the Commission within 180 days after the date hereof, then on the 181st day after the date hereof (or the 5th day after the date on which such Shelf Registration Statement ceases to be effective or usable by the Investor for any reason for any period other than any Permitted Blackout Period (as defined below)) and on each date which is 90 days after any such date, the Company shall make a cash payment to the Holders of the Initial Securities equal to $15 for each $1,000 principal amount of the Initial Securities held, until such time as the Shelf Registration Statement shall be declared effective by the Commission or is otherwise available for use by the Holders to publicly resell the Securities, at which time the Company's obligation to make such cash payments shall cease. No additional interest shall be payable on the Initial Securities due to any delay in having the Shelf Registration Statement declared effective by the Commission.

Appears in 2 contracts

Sources: Purchase Agreement (World Airways Inc /De/), Registration Rights Agreement (World Airways Inc /De/)

Additional Interest Under Certain Circumstances. If (a) Additional interest (the "Additional Interest") with respect to the Securities shall be assessed if on or prior to the date that is seven months after the Issue Date, neither the Registered Exchange Offer is consummated nor, if required in lieu thereof, the Shelf Registration Statement is not filed with the Commission within 60 days after the date hereof, then on the 61st day after the date hereof, and on each date which is 30 days after such date until such time as the Shelf Registration Statement is filed with the Commission, the Company shall make a cash payment to the Holders of the Initial Securities equal to $5 for each $1,000 principal amount of the Initial Securities held. If the Shelf Registration Statement is not declared effective by the Commission within 120 days (each such event being a "Registration Default"). Additional Interest shall accrue on the Securities over and above the interest rate set forth in the title of the Securities from and including such date for so long as the Securities remain outstanding at a rate of 0.5% per annum; PROVIDED, HOWEVER, if a Registration Default has occurred and is continuing at and after the date hereofthat is thirteen months after the Issue Date, then Additional Interest shall accrue on the 121st day after Securities over and above the interest rate set forth in the title of the Securities from and including such date hereof, for so long as the Company shall make Securities remain outstanding at a cash payment rate of 1.0% per annum. Any amount of Additional Interest due pursuant to the Holders foregoing paragraph will be payable in cash on the regular interest payment dates with respect to the Securities. The amount of Additional Interest will be determined by multiplying the Initial Securities equal to $10 for each $1,000 applicable Additional Interest rate by the principal amount of the Initial Securities held. If Notes, multiplied by a fraction, the Shelf Registration Statement numerator of which is not declared effective by the Commission within 180 number of days after the date hereof, then such Additional Interest rate was applicable during such period (determined on the 181st basis of a 360-day after year comprised of twelve 30-day months), and the date hereof (or the 5th day after the date on which such Shelf Registration Statement ceases to be effective or usable by the Investor for any reason for any period other than any Permitted Blackout Period (as defined below)) and on each date denominator of which is 90 days after any such date, the Company shall make a cash payment to the Holders of the Initial Securities equal to $15 for each $1,000 principal amount of the Initial Securities held, until such time as the Shelf Registration Statement shall be declared effective by the Commission or is otherwise available for use by the Holders to publicly resell the Securities, at which time the Company's obligation to make such cash payments shall cease. No additional interest shall be payable on the Initial Securities due to any delay in having the Shelf Registration Statement declared effective by the Commission360.

Appears in 1 contract

Sources: Registration Agreement (Kelley Oil & Gas Corp)