Term B Loan means (i) any Loan converted or made pursuant to clauses (i) or (ii) of Section 2.01(c), respectively, and (ii) any Loan made pursuant to Section 2.01(d)."Term-1 Borrowing" means a borrowing consisting of simultaneous Term B-1 Loans of the same Type and, in the case of Eurodollar Rate Loans, having the same Interest Period made by each of the Term B-1 Lenders pursuant to Section 2.01(a), Section 2.01(c), Section 2.01(dc) and/or pursuant to the applicable Joinder Agreement delivered in connection with an issuance of Term B-1 Loans pursuant to Section 2.16 of this Agreement.
Each party hereto hereby covenants to act at all times consistent with this common understanding and to take no action for purposes of accounting, taxation or bankruptcy which treats the Term B Loan as equity.
In the case of any Event of Default hereunder, interest shall thereafter accrue on the unpaid principal amount of the Term A Loan at 13% per annum (the "A and Term B Loan Default Rate") and shall be immediately payable in full in cash.
Thereafter, and absent the occurrence of any such prior acceleration, the unpaid principal balance of the Term B Loan shall be payable in equal consecutive quarterly principal installments of not less than $225,000, which shall be due and payable on the last Business Day of each March, June, September and December, with the first payment being due and payable upon the first such date occurring after the termination of the deferral of interest payments pursuant to Section 2.1(b) hereof.
In the case of any Event of Default hereunder, interest shall accrue on the unpaid principal amount of the Term B Loan at the A and Term B Loan Default Rate and shall be payable in cash as described in the foregoing.
The parties hereto each hereby acknowledge that Tennessee Farmers has agreed to the low interest rates and payments on the Term B Loan as set forth in Section 2.1(b) hereof solely for the purpose of making this Agreement non-onerous to the Borrowers.