Common use of Senior Debt Default Clause in Contracts

Senior Debt Default. The Company shall not pay principal of, or interest on, the Notes, and shall not repurchase, redeem or otherwise retire any Notes (collectively, “pay the Notes”) if (a) any principal, premium or interest in respect of any Senior Debt is not paid when due after any applicable grace period or (b) any other default on Senior Debt occurs and the maturity of such Senior Debt is accelerated in accordance with its terms unless, in either case, (i) the default has been cured or waived and any such acceleration has been rescinded or (ii) such Senior Debt has been paid in full; provided, however, that the Company may pay the Notes without regard to the foregoing if the Company receives written notice approving such payment from the Senior Agent. During the continuation of any default (other than a default described in clause (a) or (b) of the preceding sentence) with respect to any Senior Debt pursuant to which the maturity thereof may be accelerated immediately without further notice (except any notice required to effect the acceleration) or the expiration of any applicable grace period, the Company shall not pay the Notes for a period (a “Payment Blockage Period”) commencing upon the receipt by the Company of written notice of such default from the Senior Agent specifying an election to effect a Payment Blockage Period (a “Payment Blockage Notice”) and ending 179 days thereafter. The Payment Blockage Period will end earlier if the Payment Blockage Period is terminated (A) by written notice to the Company from the Senior Agent, (B) because such default is no longer continuing, or (C) because such Senior Debt has been repaid in full. Unless the holders of such Senior Debt or the Senior Agent have accelerated the maturity of such Senior Debt and not rescinded such acceleration, the Company may (unless otherwise prohibited as described in the first sentence of this paragraph) resume payments on the Notes after the end of such Payment Blockage Period. Not more than one Payment Blockage Notice may be given in any consecutive 360-day period, irrespective of the number of defaults with respect to the Senior Debt that have occurred during such period.