Common use of Specified Payment Premiums Clause in Contracts

Specified Payment Premiums. All (w) optional principal prepayments of the Term Loan, (x) mandatory principal prepayments of the Term Loan (other than pursuant to clause (d) of Section 3.1.4), and (y) principal payments upon or following acceleration of the Term Loan upon or following an Event of Default (collectively, “Specified Payments”) shall be accompanied by a Specified Payment premium (the “Specified Payment Premium”) in an amount equal to the following percentages of the principal amount of the Term Loan so paid: (a) in the case of any such prepayment, repayment or other payment made on or prior to the first anniversary of the Closing Date, 2.0% of the amount of each such Specified Payment; and (b) in the case of any such prepayment, repayment or other payment made after the first anniversary of the Closing Date but on or prior to the third anniversary of the Closing Date, 1.0% of the amount of each such Specified Payment; plus, in each case above, any accrued and unpaid interest thereon to the date of such Specified Payment. The Borrower agrees that the Specified Payment Premium is reasonable in the circumstances and shall in all events be included in the Obligations. The Borrower agrees that the Specified Payment Premium shall be payable upon the occurrence of any Event of Default described in Section 9.1(f), even if the Lender does not exercise its rights under SECTION 9, but elects, at its option, to provide financing to the Borrower or permit the use of cash collateral under the United States Bankruptcy Code.