Common use of Interest Rate and Payment Clause in Contracts

Interest Rate and Payment. The Note shall be payable and bear interest as follows. The Borrower, promptly upon receipt of an invoice, shall pay interest only on the Advances on or before the last day of each of the months referred to in Schedule l hereto (each such date being herein called a "Payment Date") until the first Payment Date of the first full quarter following the earlier of (a) the date two years from the date hereof or (b) the date on which the CFC Commitment has been fully advanced (the earlier of such dates being herein called the "Amortization Basis Date"). Thereafter, quarterly or monthly installments, as determined by CFC, of principal and interest in the amounts shown in the Payment Notice (described below), shall be paid on each Payment Date; except that if not sooner paid, any balance of the principal amount and interest accrued thereon shall be due and payable on the Maturity Date (as that term is defined in the Note). On or after the Amortization Basis Date, and thereafter at least quarterly, CFC will furnish to the Borrower a Payment Notice indicating the precise amount of each payment of principal and interest, and the total amount of each such payment. Such Payment Notice shall be sent to the Borrower at least ten (10) days before the next ensuing Payment Date. Principal will be amortized in accordance with the method stated in Schedule l hereto. CFC will use for the purpose of calculating the amortization of principal of each Advance: (a) the fixed interest rate in effect on the date of such Advance, if the Borrower elected a fixed rate; or (b) the variable interest rate in effect on the first day of the first quarter in which principal is due, if the Borrower elected a variable rate. Each payment shall be applied first to any charges then due, second to interest accrued on the principal amount to the due date of such payment (or, at the election of the holder of the Note, to the date of such payment if the same is not paid on its due date) and the balance to the reduction of principal. Prior to the first Advance of this loan. the Borrower must elect in writing either a fixed interest rate or a variable interest rate. Interest shall be computed for the actual number of days elapsed on the basis of a year of 365 days, until the first day of the complete calendar quarter following the Amortization Basis Date. Thereafter, if the loan bears interest at a fixed rate, interest shall be computed on the basis of a 360-day year. If the loan bears interest at a variable rate, then interest shall be computed for the actual number of days elapsed on the basis of a year of 365 days. If the Borrower elects a fixed interest rate, the rate shall equal the CFC long-term rate at the time of the each Advance for loans similarly classified pursuant to the long-term loan programs established by CFC from time to time. Such rate shall apply until a date, determined by CFC, approximately seven years after the first Advance (the "Adjustment Date"), written notice of which shall be provided to the Borrower at least 90 days prior to the Adjustment Date. After the Adjustment Date, the interest rate shall be computed in like manner and fixed by CFC from time to time; provided, however, that CFC will not change any such fixed interest rate without giving the Borrower at least 60 days prior written notice (any such 90-day or 60-day notification period being herein called a "Notification Period" and such period from January 1 to December 31 immediately following a Notification Period being herein called a "Repricing Period"). If the Borrower elects a variable interest rate, the rate for each month shall be equal to the rate established by CFC for such month for variable interest rate long-term loans similarly classified pursuant to the long-term loan programs established by CFC from time to time. Such variable interest rate shall apply until the Maturity Date of the Note unless the Borrower elects to convert to a fixed rate pursuant to the terms hereof. The Borrower may, at any time, convert from a variable interest rate to a converted fixed interest rate provided that the Borrower submits to CFC a resolution of its Board of Directors requesting such conversion. The converted fixed interest rate shall be equal to the rate of interest quoted by CFC and communicated, or generally made known, to borrowers from CFC on the date an authorized representative of the Borrower requests such conversion. Such quoted rate shall remain available to the Borrower for 30 days; it being understood and agreed that the effective date of such quoted rate as to all amounts outstanding on the Note shall be the day after the Payment Date next following receipt by CFC of the resolution referred to in the preceding sentence. Upon the election of the Borrower to convert to a converted fixed rate, such rate shall remain in effect for seven years beginning the January l next following the effective date of such converted fixed interest rate. At the end of such time, the Borrower may elect either a variable interest rate or a fixed interest rate pursuant to the long-term loan policies then in effect and applicable to long-term loans similarly classified. CFC agrees that its long-term loan policies will include a fixed interest rate option until the Maturity Date.

Interest Rate and Payment. The Note Interest on this Debenture shall be payable and bear interest as follows. The Borrower, promptly upon receipt of an invoice, shall pay interest only commence accruing on the Advances on or before the last day of each of the months referred to in Schedule l hereto (each such date being herein called a "Payment Date") until the first Payment Issuance Date of the first full quarter following the earlier of (a) the date two years from the date hereof or (b) the date on which the CFC Commitment has been fully advanced (the earlier of such dates being herein called the "Amortization Basis Date"). Thereafter, quarterly or monthly installments, as determined by CFC, of principal and interest in the amounts shown in the Payment Notice (described below), shall be paid on each Payment Date; except that if not sooner paid, any balance of the principal amount and interest accrued thereon shall be due and payable on the Maturity Date (as that term is defined in the Note). On or after the Amortization Basis Date, and thereafter at least quarterly, CFC will furnish to the Borrower a Payment Notice indicating the precise amount of each payment of principal and interest, and the total amount of each such payment. Such Payment Notice shall be sent to the Borrower at least ten (10) days before the next ensuing Payment Date. Principal will be amortized in accordance with the method stated in Schedule l hereto. CFC will use for the purpose of calculating the amortization of principal of each Advance: (a) the fixed interest rate in effect on the date of such Advance, if the Borrower elected a fixed rate; or (b) the variable interest rate in effect on the first day of the first quarter in which principal is due, if the Borrower elected a variable rate. Each payment shall be applied first to any charges then due, second to interest accrued on the principal amount to the due date of such payment (or, at the election of the holder of the Note, to the date of such payment if the same is not paid on its due date) and the balance to the reduction of principal. Prior to the first Advance of this loan. the Borrower must elect in writing either a fixed interest rate or a variable interest rate. Interest shall be computed for the actual number of days elapsed on the basis of a year of 365 days, until the first day of the complete calendar quarter following the Amortization Basis Date. Thereafter, if the loan bears interest at a fixed rate, interest shall be computed on the basis of a 360365-day yearyear and actual days elapsed and shall be payable in arrears for each Payment Quarter on the first day of the succeeding Payment Quarter during the period beginning on the Issuance Date and ending on, and including, the Maturity Date (each, an “Interest Date”). Interest shall be payable on each Interest Date, to the record holder of this Debenture on the applicable Interest Date, (i) in cash (“Cash Interest”), (ii) in payment in kind with an increase in the Principal amount of this Debenture (“PIK Interest”), or (iii), at the option of the Company with the prior written consent of the Required Holders, in shares of Common Stock (“Interest Shares”) or a combination thereof, provided that the Interest which accrued during any period may be payable in Interest Shares if, and only if, the Company delivers written notice (each, an “Interest Election Notice”) of such election to each holder of the Debentures on or prior to the tenth (10th) Trading Day prior to the Interest Date (each, an “Interest Notice Due Date”). Each Interest Election Notice must specify the amount of Interest that shall be paid as Cash Interest, if any, the amount of Interest that shall be paid as PIK Interest, and the amount of Interest that shall be paid in Interest Shares. Interest to be paid on an Interest Date in PIK Interest shall be paid through the increase in the Principal amount of this Debenture. Interest to be paid on an Interest Date in Interest Shares shall be paid in a number of fully paid and nonassessable shares (provided, that if the issuance would result in the issuance of a fraction of a share of Common Stock, the Company shall round such fraction of a share of Common Stock up to the nearest whole share) of Common Stock equal to the quotient of (a) the amount of Interest payable on such Interest Date less any Cash Interest paid (b) less any PIK Interest paid and (c) the Interest Conversion Price in effect on the applicable Interest Date. If the loan bears interest at a variable rateany Interest Shares are to be paid on an Interest Date, then interest the Company shall (X) provided that the Company’s transfer agent (the “Transfer Agent”) is participating in The Depository Trust Company (“DTC”) Fast Automated Securities Transfer Program and such action is not prohibited by applicable law or regulation or any applicable policy of DTC, credit such aggregate number of Interest Shares to which the Holder shall be computed entitled to the Holder’s or its designee’s balance account with DTC through its Deposit Withdrawal Agent Commission system, or (Y) if the foregoing shall not apply, issue and deliver within three Trading Days after the applicable Interest Date, to the address set forth in the register maintained by the Company for the actual number of days elapsed on the basis of a year of 365 days. If the Borrower elects a fixed interest rate, the rate shall equal the CFC long-term rate at the time of the each Advance for loans similarly classified such purpose pursuant to the long-term loan programs established Securities Purchase Agreement or to such address as specified by CFC from time to time. Such rate shall apply until a date, determined by CFC, approximately seven years after the first Advance (the "Adjustment Date"), written notice of which shall be provided Holder in writing to the Borrower Company at least 90 days two Business Days prior to the Adjustment applicable Interest Date, a certificate, registered in the name of the Holder or its designee, for the number of Interest Shares to which the Holder shall be entitled. After Notwithstanding the Adjustment foregoing, the Company shall not be entitled to pay Interest in Interest Shares and shall be required to pay such Interest (i) in cash as Cash Interest, or (ii) in payment in kind as PIK Interest, on each Interest Date if, unless consented to in writing by the Holder, during the period commencing on the applicable Interest Notice Due Date through the applicable Interest Date, the interest rate Equity Conditions have not been satisfied. Interest accrues at the Interest Rate on all outstanding unpaid Principal owed under this Debenture and all accrued Interest is payable on each Interest Date. Upon the occurrence and during the continuance of an Event of Default, the Interest Rate shall be computed in like manner and fixed by CFC from time increased to time; provided, however, that CFC will not change any such fixed interest rate without giving fifteen percent (15.00%) (the Borrower at least 60 days prior written notice (any such 90-day or 60-day notification period being herein called a "Notification Period" and such period from January 1 to December 31 immediately following a Notification Period being herein called a "Repricing Period"“Default Rate”). If In the Borrower elects a variable interest rateevent that such Event of Default is subsequently cured, the rate for each month shall be equal to the rate established by CFC for such month for variable interest rate long-term loans similarly classified pursuant to the long-term loan programs established by CFC from time to time. Such variable interest rate shall apply until the Maturity Date of the Note unless the Borrower elects to convert to a fixed rate pursuant to the terms hereof. The Borrower may, at any time, convert from a variable interest rate to a converted fixed interest rate provided that the Borrower submits to CFC a resolution of its Board of Directors requesting such conversion. The converted fixed interest rate shall be equal to the rate of interest quoted by CFC and communicated, or generally made known, to borrowers from CFC on the date an authorized representative of the Borrower requests such conversion. Such quoted rate shall remain available to the Borrower for 30 days; it being understood and agreed that the effective date of such quoted rate as to all amounts outstanding on the Note shall be the day after the Payment Date next following receipt by CFC of the resolution adjustment referred to in the preceding sentence. Upon the election sentence shall cease to be effective as of the Borrower to convert to a converted fixed rate, such rate shall remain in effect for seven years beginning the January l next following the effective date of such converted fixed interest rate. At cure; provided that the end Interest as calculated and unpaid at such increased rate during the continuance of such time, the Borrower may elect either a variable interest rate or a fixed interest rate pursuant Event of Default shall continue to apply to the long-term loan policies then extent relating to the days after the occurrence of such Event of Default through and including the date of cure of such Event of Default. The Company shall pay any and all taxes that may be payable with respect to the issuance and delivery of Interest Shares; provided that the Company shall not be required to pay any tax that may be payable in effect and applicable respect of any issuance of Interest Shares to long-term loans similarly classified. CFC agrees that its long-term loan policies will include a fixed interest rate option until any Person other than the Maturity DateHolder or with respect to any income tax due by the Holder with respect to such Interest Shares.

Interest Rate and Payment. The This Note shall bear interest at the rate of Twenty- Four Percent (24 %) per annum. Interest shall be payable quarterly, commencing on the Date of Issue, with the first interest payment due on the fifteenth day of the calendar month beginning after the end of the calendar quarter of the Date of Issue, and thereafter on the fifteenth day of the first month after each succeeding calendar quarter. Interest due for any quarterly payment which is for less than a full calendar quarter, shall be pro-rated on a daily basis. Interest due shall be paid by the Corporation to the Holder at the address of the Holder as then reflected on the records of the Corporation. Interest on this Note shall be payable and bear interest as follows. The Borrowerpaid in cash or, promptly upon receipt of an invoice, shall pay interest only on in the Advances on or before the last day of each discretion of the months referred to in Schedule l hereto Corporation (each such date being herein called a "Payment Date") until the first Payment Date of the first full quarter following the earlier of (a) the date two years from the date hereof or (b) the date on which the CFC Commitment has been fully advanced (the earlier of such dates being herein called the "Amortization Basis Date"). Thereafter, quarterly or monthly installments, as determined by CFC, of principal and interest in the amounts shown in the Payment Notice (described below), shall be paid on each Payment Date; except that if not sooner paid, any balance of the principal amount and interest accrued thereon shall be due and payable on the Maturity Date (as that term is defined in the Note). On or after the Amortization Basis Date, and thereafter at least quarterly, CFC will furnish subject to the Borrower a Payment Notice indicating provisions of this paragraph) at the precise amount time of each payment of principal and interest, and in kind by the total amount issuance of each such payment. Such Payment Notice shall be sent number of shares of the $0.001 par value common stock of the Corporation (the “Common Stock”) to the Borrower at least ten (10) days before the next ensuing Payment Date. Principal will be amortized in accordance with the method stated in Schedule l hereto. CFC will use for the purpose Holder of calculating the amortization of principal of each Advance: (a) the fixed interest rate in effect on the date of such Advance, if the Borrower elected a fixed rate; or (b) the variable interest rate in effect on the first day of the first quarter in which principal is due, if the Borrower elected a variable rate. Each payment shall be applied first to any charges then due, second to interest accrued on the principal amount to the due date of such payment (or, at the election of the holder of the this Note, to the date of such payment if the same is not paid on its due date) and the balance to the reduction of principal. Prior to the first Advance of this loan. the Borrower must elect in writing either a fixed interest rate or a variable interest rate. Interest shall be computed for the actual number of days elapsed on the basis of a year of 365 days, until the first day of the complete calendar quarter following the Amortization Basis Date. Thereafter, if the loan bears interest at a fixed rate, interest shall be computed on the basis of a 360-day year. If the loan bears interest at a variable rate, then interest shall be computed for the actual number of days elapsed on the basis of a year of 365 days. If the Borrower elects a fixed interest rate, the rate shall equal the CFC long-term rate at the time of the each Advance for loans similarly classified pursuant to the long-term loan programs established by CFC from time to time. Such rate shall apply until a date, determined by CFC, approximately seven years after the first Advance (the "Adjustment Date"), written notice of which shall be provided to the Borrower at least 90 days prior to the Adjustment Date. After the Adjustment Date, the interest rate shall be computed in like manner and fixed by CFC from time to time; provided, however, that CFC will not change any such fixed interest rate without giving the Borrower at least 60 days prior written notice (any such 90-day or 60-day notification period being herein called a "Notification Period" and such period from January 1 to December 31 immediately following a Notification Period being herein called a "Repricing Period"). If the Borrower elects a variable interest rate, the rate for each month as shall be equal in value to the rate established interest then due (the “Interest Shares”). For purposes of determining the number of shares of the Common Stock to be issued in kind as payment for any interest due, the Common Shares shall be valued at the average of the closing bid price for the Common Shares, on such exchange or electronic medium on which the Common Shares are then traded, for the last twenty (20) trading days of the calendar quarter for which the interest payment is due (the “Average Closing Price”). Notwithstanding the foregoing, the right of the Corporation to make any interest payment in shares of Common Stock on a particular date is subject to the satisfaction (or waiver by CFC the Holder) of the following additional conditions on such date: (1) there is then an effective registration statement covering the Interest Shares, to be issued on such date for which no stop order is in effect; (2) no Event of Default shall exist on such month date; (3) the Average Closing Price is equal to or greater than $.15 per share (as appropriately adjusted for variable any stock split, stock dividend or other similar corporate action); and (4) the Corporation has sufficient authorized but unissued shares of Common Stock to provide for the issuance of the Interest Shares to the Holder and the other holders of the Corporation Notes. At any time the Corporation delivers a notice to the Holder of its election to pay the interest rate long-term loans similarly classified in shares of Common Stock, the Corporation shall timely file a prospectus supplement pursuant to the long-term loan programs established by CFC from time to time. Such variable interest rate shall apply until the Maturity Date Rule 424 of the Note unless the Borrower elects to convert to a fixed rate pursuant to the terms hereof. The Borrower may, at any time, convert from a variable interest rate to a converted fixed interest rate provided that the Borrower submits to CFC a resolution of its Board of Directors requesting Act disclosing such conversion. The converted fixed interest rate shall be equal to the rate of interest quoted by CFC and communicated, or generally made known, to borrowers from CFC on the date an authorized representative of the Borrower requests such conversion. Such quoted rate shall remain available to the Borrower for 30 days; it being understood and agreed that the effective date of such quoted rate as to all amounts outstanding on the Note shall be the day after the Payment Date next following receipt by CFC of the resolution referred to in the preceding sentence. Upon the election of the Borrower to convert to a converted fixed rate, such rate shall remain in effect for seven years beginning the January l next following the effective date of such converted fixed interest rate. At the end of such time, the Borrower may elect either a variable interest rate or a fixed interest rate pursuant to the long-term loan policies then in effect and applicable to long-term loans similarly classified. CFC agrees that its long-term loan policies will include a fixed interest rate option until the Maturity Dateelection.

Interest Rate and Payment. The This Note shall bear interest at the rate of Twenty- Four Percent (24 %) per annum. Interest shall be payable quarterly, commencing on the Date of Issue, with the first interest payment due on the fifteenth day of the calendar month beginning after the end of the calendar quarter of the Date of Issue, and thereafter on the fifteenth day of the first month after each succeeding calendar quarter. Interest due for any quarterly payment which is for less than a full calendar quarter, shall be pro-rated on a daily basis. Interest due shall be paid by the Corporation to the Holder at the address of the Holder as then reflected on the records of the Corporation. Interest on this Note shall be payable and bear interest as follows. The Borrowerpaid in cash or, promptly upon receipt of an invoice, shall pay interest only on in the Advances on or before the last day of each discretion of the months referred to in Schedule l hereto Corporation (each such date being herein called a "Payment Date") until the first Payment Date of the first full quarter following the earlier of (a) the date two years from the date hereof or (b) the date on which the CFC Commitment has been fully advanced (the earlier of such dates being herein called the "Amortization Basis Date"). Thereafter, quarterly or monthly installments, as determined by CFC, of principal and interest in the amounts shown in the Payment Notice (described below), shall be paid on each Payment Date; except that if not sooner paid, any balance of the principal amount and interest accrued thereon shall be due and payable on the Maturity Date (as that term is defined in the Note). On or after the Amortization Basis Date, and thereafter at least quarterly, CFC will furnish subject to the Borrower a Payment Notice indicating provisions of this paragraph) at the precise amount time of each payment of principal and interest, and in kind by the total amount issuance of each such payment. Such Payment Notice shall be sent number of shares of the $0.001 par value common stock of the Corporation (the ?Common Stock?) to the Borrower at least ten (10) days before the next ensuing Payment Date. Principal will be amortized in accordance with the method stated in Schedule l hereto. CFC will use for the purpose Holder of calculating the amortization of principal of each Advance: (a) the fixed interest rate in effect on the date of such Advance, if the Borrower elected a fixed rate; or (b) the variable interest rate in effect on the first day of the first quarter in which principal is due, if the Borrower elected a variable rate. Each payment shall be applied first to any charges then due, second to interest accrued on the principal amount to the due date of such payment (or, at the election of the holder of the this Note, to the date of such payment if the same is not paid on its due date) and the balance to the reduction of principal. Prior to the first Advance of this loan. the Borrower must elect in writing either a fixed interest rate or a variable interest rate. Interest shall be computed for the actual number of days elapsed on the basis of a year of 365 days, until the first day of the complete calendar quarter following the Amortization Basis Date. Thereafter, if the loan bears interest at a fixed rate, interest shall be computed on the basis of a 360-day year. If the loan bears interest at a variable rate, then interest shall be computed for the actual number of days elapsed on the basis of a year of 365 days. If the Borrower elects a fixed interest rate, the rate shall equal the CFC long-term rate at the time of the each Advance for loans similarly classified pursuant to the long-term loan programs established by CFC from time to time. Such rate shall apply until a date, determined by CFC, approximately seven years after the first Advance (the "Adjustment Date"), written notice of which shall be provided to the Borrower at least 90 days prior to the Adjustment Date. After the Adjustment Date, the interest rate shall be computed in like manner and fixed by CFC from time to time; provided, however, that CFC will not change any such fixed interest rate without giving the Borrower at least 60 days prior written notice (any such 90-day or 60-day notification period being herein called a "Notification Period" and such period from January 1 to December 31 immediately following a Notification Period being herein called a "Repricing Period"). If the Borrower elects a variable interest rate, the rate for each month as shall be equal in value to the rate established interest then due (the ?Interest Shares?). For purposes of determining the number of shares of the Common Stock to be issued in kind as payment for any interest due, the Common Shares shall be valued at the average of the closing bid price for the Common Shares, on such exchange or electronic medium on which the Common Shares are then traded, for the last twenty (20) trading days of the calendar quarter for which the interest payment is due (the ?Average Closing Price?). Notwithstanding the foregoing, the right of the Corporation to make any interest payment in shares of Common Stock on a particular date is subject to the satisfaction (or waiver by CFC the Holder) of the following additional conditions on such date: (1) there is then an effective registration statement covering the Interest Shares, to be issued on such date for which no stop order is in effect; (2) no Event of Default shall exist on such month date; (3) the Average Closing Price is equal to or greater than $.15 per share (as appropriately adjusted for variable any stock split, stock dividend or other similar corporate action); and (4) the Corporation has sufficient authorized but unissued shares of Common Stock to provide for the issuance of the Interest Shares to the Holder and the other holders of the Corporation Notes. At any time the Corporation delivers a notice to the Holder of its election to pay the interest rate long-term loans similarly classified in shares of Common Stock, the Corporation shall timely file a prospectus supplement pursuant to the long-term loan programs established by CFC from time to time. Such variable interest rate shall apply until the Maturity Date Rule 424 of the Note unless the Borrower elects to convert to a fixed rate pursuant to the terms hereof. The Borrower may, at any time, convert from a variable interest rate to a converted fixed interest rate provided that the Borrower submits to CFC a resolution of its Board of Directors requesting Act disclosing such conversion. The converted fixed interest rate shall be equal to the rate of interest quoted by CFC and communicated, or generally made known, to borrowers from CFC on the date an authorized representative of the Borrower requests such conversion. Such quoted rate shall remain available to the Borrower for 30 days; it being understood and agreed that the effective date of such quoted rate as to all amounts outstanding on the Note shall be the day after the Payment Date next following receipt by CFC of the resolution referred to in the preceding sentence. Upon the election of the Borrower to convert to a converted fixed rate, such rate shall remain in effect for seven years beginning the January l next following the effective date of such converted fixed interest rate. At the end of such time, the Borrower may elect either a variable interest rate or a fixed interest rate pursuant to the long-term loan policies then in effect and applicable to long-term loans similarly classified. CFC agrees that its long-term loan policies will include a fixed interest rate option until the Maturity Dateelection.

Interest Rate and Payment. The Note shall be payable and bear interest as follows. The ; the Borrower, promptly upon receipt of an invoice, shall pay interest only make payments on the Advances in accordance with the provisions set forth in Schedule l here to on or before the last day of each of the months referred to in Schedule l hereto (each such date being herein called a "Payment Date") until the first Payment Date of the first full quarter following the earlier of (a) the date two years from the date hereof or (b) the date on which the CFC Commitment has been fully advanced (the earlier of such dates being herein called the "Amortization Basis Date"). Thereafter, quarterly or monthly installments, as determined by CFC, of principal and interest in the amounts shown in the Payment Notice (described below), Payments shall be paid on each Payment Date; except that if not sooner paid, any balance of the principal amount and interest accrued thereon shall be due and payable on the Maturity Date (as that term is defined in the Note). On or after the Amortization Basis DateDate (defined in Schedule l hereto), and thereafter at least quarterly, CFC will furnish to the Borrower a Payment Notice indicating the precise amount of each payment of principal and interest, and the total amount of each such payment. Such Payment Notice shall be sent to the Borrower at least ten (10) days before the next ensuing Payment Date. Principal will be o amortized in accordance with the method stated in Schedule l hereto. CFC will use for the purpose of calculating the amortization of principal of each Advance: (a) the fixed interest rate in effect on the date of such Advance, if the Borrower elected a fixed rate; or (b) the variable interest rate in effect on the first day of the first quarter in which principal is due, if the Borrower elected a variable rate. Each payment shall be applied first to any charges then due, second to interest accrued on the principal amount to the due date of such payment (or, at the election of the holder of the Note, Note to the date of such payment if the same is not paid on its due date) and the balance to the reduction of principal. Prior to the first Advance of this loan. , the Borrower must elect in writing either a fixed interest rate or a variable interest rate. Interest shall be computed for the actual number of days elapsed on the basis of a year of 365 days, until the first day of the complete calendar quarter following the Amortization Basis BasIs Date. Thereafter, if the loan bears interest at a fixed rate, interest shall be computed on the basis of a 360-day year. If the loan bears interest at a variable rate, then interest shall snaIl be computed for the actual number of days elapsed on the basis of a year of 365 days. If the Borrower elects a fixed interest rate, the rate shall equal the CFC long-term rate at the time of the each Advance for loans similarly classified pursuant to the long-term loan programs established by CFC from time to time. Such rate shall apply until a date, determined by CFC, approximately seven years after the first Advance (the "Adjustment Date"), written notice of which shall be provided to the Borrower at least 90 days prior to the Adjustment Date. After the Adjustment Date, the interest rate shall be computed in like manner and fixed by CFC from time to time; provided, however, that CFC will not change any such fixed interest rate without giving the Borrower at least 60 days prior written notice (any such 90-day or 60-day notification period being herein called a "Notification Period" and such period from January 1 to December 31 immediately following a Notification Period being herein called a "Repricing Period"). If the Borrower elects a variable interest rate, the rate for each month shall be equal to the rate established by CFC for such month for variable interest rate long-term long.term loans similarly classified pursuant to the long-term long.term loan programs established by CFC from time to time. Such variable interest rate shall apply until the Maturity Date of the Note unless the Borrower elects to convert to to-a fixed rate pursuant to the terms hereof. The Borrower may, at any time, convert from a variable interest rate to a converted fixed interest rate provided that the Borrower submits to CFC a resolution of its Board of Directors requesting such conversion. The converted fixed interest rate shall be equal to the rate of interest quoted by CFC and communicated, or generally made known, to borrowers from CFC on the date an authorized representative of the Borrower requests such conversion. Such quoted rate shall remain available to the Borrower for 30 days; it being understood and agreed that the effective date of such quoted rate as to all amounts outstanding on the Note shall be the day after the Payment Date next following receipt by CFC of the resolution referred to in the preceding sentence. Upon the election of the Borrower to convert to a converted fixed rate, such rate shall remain in effect for seven years beginning the January l 1 next following the effective date of such converted fixed interest rate. At the end of such -such time, the Borrower may elect either a variable interest rate or a fixed interest rate pursuant to the long-term loan policies then in effect and applicable to long-term loans similarly classified. CFC agrees that its long-long- term loan policies will include a fixed interest rate option until the Maturity Date.