Common use of Accrual; Payment Clause in Contracts

Accrual; Payment. Subject to Section 4(b)(ii) below, interest shall accrue on the principal sums outstanding at a rate per annum equal to the Base Rate, plus, (i) if the Company pays such interest in kind, 1.00% and, (ii) without regard to whether or not the Company pays such interest in kind (and in addition to any increase pursuant to clause (i) of this sentence), an increase of 1.00% following the second anniversary of the date hereof and additional increases of 1.00% following each anniversary of the date of this Note thereafter (the “Applicable Interest”). The Applicable Interest shall become due and payable in accordance with Section 2. Any accrued interest which for any reason has not theretofore been paid shall be paid in full on the Maturity Date.