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13068670v2 35 ARTICLE VII REMEDIES ON DEFAULT Section 7.01 Events of Default. Each of the following events is hereby defined as, and is declared to be and to constitute, an “Event of Default”: (a) If payment of the principal of any of the Bonds, or any premium thereon, when the same shall become due and payable, whether at maturity or proceedings for redemption, declaration or otherwise, shall not be made; or (b) If payment of any interest on the Bonds when the same shall become due and payable (in which case interest shall be payable to the extent permitted by law on any overdue installments of interest, in each case at the interest rate borne by the Bonds in respect of which such interest is overdue) shall not be made; or (c) If there should be a default in the due and punctual performance of any of the other covenants, conditions, agreements and provisions contained in the Bonds or in this Indenture, or in any indenture supplemental hereto, and such default shall have continued for a period of sixty days after written notice, specifying such default and requiring the same to be remedied, shall have been given to the Corporation by the Trustee, or if such notice is given to the Trustee and the Corporation by the Holders of not less than twenty-five percent (25%) in principal amount of the Bonds then outstanding; or (d) If any event of default as that term is defined in the Loan Agreement shall occur and be continuing. Section 7.02 Acceleration of Maturity. Subject to the terms of the Subordination Agreement, upon the occurrence of an Event of Default, the Trustee may, and upon written request of the Holders of twenty-five percent (25%) in aggregate principal amount of Bonds outstanding hereunder, provided that such requesting Holders have offered indemnity to the Trustee, to its sole satisfaction, pursuant to Section 8.06 of this Indenture, and that the Trustee has received no conflicting direction from the majority of Holders pursuant to Section 7.07 of this Indenture, shall, by notice in writing delivered to the Issuer declare the principal of all Bonds hereby secured then outstanding and the interest accrued thereon immediately due and payable, and such principal and interest shall thereupon become and be immediately due and payable subject, however, to the right of the Holders of a majority in aggregate principal amount of Bonds then outstanding hereunder, by written notice to the Issuer and to the Trustee, to annul such declaration and destroy its effect at any time if all covenants with respect to which default shall have been made shall be fully performed or made good, and all arrears of interest upon all Bonds outstanding hereunder and the reasonable expenses and charges of the Trustee, its agent and attorneys, and all other indebtedness secured hereby (except the principal of any Bonds which have not then attained their stated maturity and interest accrued on such Bonds since the last interest payment date) shall be paid, or the amount thereof shall be paid to the Trustee for the benefit of those entitled thereto. Section 7.03 Enforcement of Covenants and Conditions. In any case of Default or breach of any of the covenants and conditions of this Indenture, or to protect the Trust Estate, the Trustee,