Frontier Airlines 2008 Annual Report Download - page 126

(b) Default Rate. Upon the occurrence and during the continuance of a Event of Default, the Borrower shall pay interest on (i) the
unpaid principal amount of each Term Loan owing to each Lender, payable in arrears on the dates referred to in clause (c) below and
on demand, at a rate per annum equal at all times to 2% per annum above the Applicable Rate and (ii) to the fullest extent permitted
by law, the amount of any interest, fee or other amount payable under the Loan Documents that is not paid when due, from the date
such amount shall be due until such amount shall be paid in full, payable on demand, at a rate per annum equal at all times to 2%
above the Applicable Rate.
(c) Payment Dates. Interest on each Term Loan shall be due and payable in arrears on each Interest Payment Date and, to the
extent provided in Section 2.04(b), on demand.
2.05 Computation of Interest. All computations of interest shall be made on the basis of a 365-day year and actual days
elapsed. Interest shall accrue on each Term Loan for the day on which the Term Loan is made, and shall not accrue on a Term Loan,
or any portion thereof, for the day on which the Term Loan or such portion is paid, provided that any Term Loan that is repaid on the
same day on which it is made shall bear interest for one day. Each determination by the Administrative Agent of an interest rate or fee
hereunder shall be conclusive and binding for all purposes, absent manifest error.
2.06 Evidence of Indebtedness.
(a) The Term Loans made by each Lender shall be evidenced by one or more accounts or records maintained by such Lender and
by the Administrative Agent in the ordinary course of business. The accounts or records maintained by the Administrative Agent and
each Lender shall be conclusive absent manifest error of the amount of the Term Loans made by the Lenders to the Borrower and the
interest and payments thereon. Any failure to so record or any error in doing so shall not, however, limit or otherwise affect the
obligation of the Borrower hereunder to pay any amount owing with respect to the Obligations. In the event of any conflict between
the accounts and records maintained by any Lender and the accounts and records of the Administrative Agent in respect of such
matters, the accounts and records of the Administrative Agent shall control in the absence of manifest error. Upon the request of any
Lender, the Borrower shall execute and deliver to such Lender a Term Note, which shall evidence such Lender’s Term Loans in
addition to such accounts or records. Each Lender may attach schedules to its Term Note and endorse thereon the date, amount and
maturity of its Term Loans and payments with respect thereto.
(b) Entries made in good faith by the Administrative Agent in the Register or by any Lender in its account or accounts pursuant to
subsection (a) above, shall be conclusive evidence of the amount of principal and interest due and payable or to become due and
payable from the Borrower to, in the case of the Register, each Lender and, in the case of such account or accounts, such Lender,
under this Agreement and the other Loan Documents, absent manifest error; provided that the failure of the Administrative Agent or
such Lender to make an entry, or any finding that an entry is incorrect, in the Register or such account or accounts shall not limit or
otherwise affect the obligations of the Borrower under this Agreement and the other Loan Documents.
2.07 Payments Generally.
(a) All payments to be made by the Borrower shall be made without condition or deduction for any counterclaim, defense,
recoupment or setoff. Except as otherwise expressly provided herein, all payments by the Borrower hereunder shall be made to the
Administrative Agent, for the account of the respective Lenders to which such payment is owed, at the account specified by the
Administrative Agent in Dollars and in immediately available funds not later than 2:00 p.m. on the dates specified herein. The
Administrative Agent will promptly distribute to each Lender its Pro Rata Share (or other applicable share as provided herein) of such
payment in like funds as received by wire transfer to the account specified by such Lender to the Administrative Agent from time to
time. All payments received by the Administrative Agent after 2:00 p.m. shall be deemed received on the next succeeding Business
Day and any applicable interest shall continue to accrue.
(b) If any payment to be made by the Borrower shall come due on a day other than a Business Day, payment shall be made on the
next following Business Day, and such extension of time shall be reflected in computing interest.
(c)If any Lender makes available to the Administrative Agent funds for any Term Loan to be made by such Lender as provided in
the foregoing provisions of thisArticle II, and such funds are not made available to the Borrower by the Administrative Agent because
the conditions to the Term Borrowing set forth in Article IV are not satisfied or waived in accordance with the terms hereof, the
Administrative Agent shall promptly return such funds (in like funds as received from such Lender) to such Lender, without interest.
(d) The obligations of the Lenders hereunder to make Term Loans are several and not joint. The failure of any Lender to make
any Term Loan on any date required hereunder shall not relieve any other Lender of its corresponding obligation to do so on such
date, and no Lender shall be responsible for the failure of any other Lender to so make its Term Loan.
(e) Whenever any payment received by the Administrative Agent under this Agreement or any of the other Loan Documents is
insufficient to pay in full all amounts due and payable to the Administrative Agent and the Lenders under or in respect of this
Agreement and the other Loan Documents on any date, such payment shall be distributed by the Administrative Agent and applied by
the Administrative Agent and the Lenders in the order of priority set forth in Section 8.03. If the Administrative Agent receives funds
for application to the Obligations of the Loan Parties under or in respect of the Loan Documents under circumstances for which the
Loan Documents do not specify the manner in which such funds are to be applied, the Administrative Agent may, but shall not be
obligated to, elect to distribute such funds to each of the Lenders in accordance with such Lender’s Pro Rata Share of the sum of the
aggregate principal amount of all Term Loans outstanding at such time in repayment or prepayment of such of the outstanding Term
Source: REPUBLIC AIRWAYS HOLDINGS INC, 10-K, March 16, 2009 Powered by Morningstar® Document Research℠