Common use of Optional and Mandatory Prepayment Clause in Contracts

Optional and Mandatory Prepayment. The Loan Parties may prepay principal and accrued interest on the Term Loan at any time, in any amount and without penalty. All prepayments of principal and interest shall be applied first to accrued interest, and second to principal. Subject to compliance with the Revolving Credit Facility, the Loan Parties shall, within two (2) Business Days of receipt thereof, apply all cash proceeds of an Equity Offering or Indebtedness Offering, net of taxes and customary fees, commissions, costs and other expenses incurred in connection therewith, to prepay the outstanding principal balance of the Term Loan plus any accrued interest.