Common use of Application of Principal Payments Clause in Contracts

Application of Principal Payments. (a) Each payment of the principal amount of any Notes shall be applied to the Notes pro rata in accordance with the respective unpaid principal amounts of the Notes at the time held by the holders thereof. Notwithstanding the foregoing provisions of this Section 3.2(a), in the event that a prepayment is made by the Company of all or any portion of the outstanding principal amount of the Purchaser Senior Subordinated Convertible Note and the Additional Notes on or prior to the date that is 30 days after the date hereof, 50% of the aggregate amount of such prepayment shall be applied to the Purchaser Senior Subordinated Convertible Note and 50% of the aggregate amount of such prepayment shall be applied to the Additional Notes, pro rata in accordance with the respective unpaid principal amounts of the Additional Notes. (b) Upon any payment or prepayment of all or a part of the Notes pursuant to Section 3.1, such payment shall be accompanied by a payment of all interest accrued on such principal amount to the date of such payment.