The Company shall deliver to the Term Lender annually a statement regarding compliance with this Agreement, and the Company shall upon becoming aware of any Term Loan Default or Term Loan Event of Default, deliver to the Administrative Agent a statement specifying such Term Loan Default or Term Loan Event of Default.
Any principal payment with respect to the Term Loan not paid when due, whether on a Term Loan Payment Date or by acceleration, shall bear interest thereafter at a rate per annum of two percent (2.0%) 36 45 over the Term Loan Applicable Rate in effect with respect to such payment at the time of such default (the "Term Loan Default Rate").
In addition, the Company may, at its option and at any time, elect to have its obligations and those of Term Loan Subsidiary Guarantor released under the covenants contained in Sections 2.9, 11.2, 11.3, 11.4, 11.5, 11.6, 11.7, 11.8, 11.9, 11.10, 11.11, 11.12, 11.13, 11.14 and 11.16 ("Covenant Defeasance") and thereafter any omission to comply with such obligations shall not constitute a Term Loan Default or Term Loan Event of Default.
Term Loan Default means any event or circumstance which, with the giving of notice, the lapse of time, or both, would (if not cured or otherwise remedied during such time) constitute a Term Loan Event of Default.
The Company's Board of Directors may at any time designate any Unrestricted Subsidiary to be a Restricted Subsidiary; provided that such designation shall be deemed to be an incurrence of Debt by a Restricted Subsidiary of any outstanding Debt of such Unrestricted Subsidiary and such designation shall be permitted only if (a) such Debt is permitted under Section 11.5, and (b) no Term Loan Default or Term Loan Event of Default would be in existence following such designation.