Common use of Interest Rates Applicable to Line of Credit Clause in Contracts

Interest Rates Applicable to Line of Credit. Except as otherwise provided in this Agreement, the unpaid principal amount of each Line of Credit Advance evidenced by the Revolving Note shall accrue interest at an annual interest rate calculated as follows: Floating Rate: Line of Credit Advances = Prime Rate minus the applicable Margin, which interest rate shall change whenever the Prime Rate changes (the “Floating Rate”); or LIBOR Advance Rate for One, Three, or Six Month Interest Periods: Line of Credit Advances = LIBOR plus the applicable Margin (the “LIBOR Advance Rate”) Multiple Advances under the Line of Credit may simultaneously accrue interest at both the Floating Rate and at the LIBOR Advance Rate, subject to the limitations of Section 1.3(a)(i). The Margins through and including the adjustment occurring as specified below shall be 0.25% per annum for Floating Rate Advances, and 2.40% per annum for LIBOR Advances. The Margins shall be reduced by 0.25% per annum on a one-time basis if the following conditions precedent have been satisfied (as verified by Xxxxx Fargo): (i) the Companies’ Net Income for the fiscal year ending December 31, 2008 (as presented in Companies’ financial statements audited by independent public accountants acceptable to Xxxxx Fargo), is greater than $1,500,000, and (ii) no Default Period is existing at the time Xxxxx Fargo receives such year-end audited financial statements. The Margin reduction provided for in the immediately preceding paragraph shall become effective on the first calendar day of the first calendar month following the month of receipt by Xxxxx Fargo of fiscal year end financial statements that have been audited by an independent public accounting firm, acceptable to Xxxxx Fargo. If amended or restated financial statements would change previously calculated Margins, or if Xxxxx Fargo determines that any financial statements have materially misstated Companies’ financial condition, then Xxxxx Fargo may, using the most accurate information available to it, recalculate the financial test or tests governing the Margins and retroactively increase the Margins from the date of receipt of such amended or restated financial statements and charge Companies additional interest, which may be imposed on them from the beginning of the appropriate month to which the restated statements or recalculated financial tests relate, as Xxxxx Fargo in its sole discretion deems appropriate.

Interest Rates Applicable to Line of Credit. Except as otherwise provided in this Agreement, the unpaid principal amount of each Line of Credit Advance evidenced by the Revolving Note shall accrue interest at an annual interest rate calculated as follows: The “Floating Rate: ” for Line of Credit Advances = the greater of (i) the Prime Rate minus plus the applicable Margin, or (ii) five percent (5.0%), plus the applicable Margin, which interest rate shall change whenever the Prime Rate changes (changes, subject to the “Floating Rate”)minimum interest rate floor; or Or LIBOR Advance Rate pricing for Oneone, Threethree, or Six Month six month fixed rate Interest Periods: the “LIBOR Advance Rate” for Line of Credit Advances = LIBOR applicable to the selected Interest Period plus the applicable Margin (the “LIBOR Advance Rate”) Margin; Multiple Advances under the Line of Credit may simultaneously accrue interest at both the Floating Rate and at the LIBOR Advance Rate, subject to the limitations of Section 1.3(a)(i). The ) If Borrower’s Net Income for the most recently completed fiscal year is less than $1.00 for such year, the Margins through and including for the adjustment occurring as specified below immediately succeeding fiscal year shall be 0.25% two and one-half percent (2.5%) per annum for Floating Rate Advances, and 2.40% three and one-half percent (3.5%) per annum for LIBOR Advances. The Margins shall be reduced by 0.25% per annum on a one-time basis if the following conditions precedent have been satisfied (as verified by Xxxxx Fargo): (i) the Companies’ If Borrower’s Net Income for the most recently completed fiscal year ending December 31equals or exceeds $1.00 for such year, 2008 the Margins for the immediately succeeding fiscal year shall be two percent (as presented in Companies’ financial statements audited by independent public accountants acceptable to Xxxxx Fargo), is greater than $1,500,0002.0%) per annum for Floating Rate Advances, and three percent (ii3.0%) no Default Period is existing at the time Xxxxx Fargo receives such year-end audited financial statementsper annum for LIBOR Advances. The Each Margin reduction provided for in the immediately preceding paragraph change shall become effective on the first calendar day of the first calendar month following the month of receipt by Xxxxx Fargo of fiscal year end the audited annual financial statements. If Company fails to timely deliver audited annual financial statements as agreed, the Margins shall be at the highest level set forth above and Xxxxx Fargo may notify Company that have been audited by an independent public accounting firm, acceptable to Xxxxx FargoEvent of Default has occurred and impose the Default Rate. If amended or restated financial statements would change previously calculated Margins, or if Xxxxx Fargo determines that any financial statements have materially misstated Companies’ Company’s financial condition, then Xxxxx Fargo may, using the most accurate information available to it, recalculate the financial test or tests governing the Margins and retroactively reduce or increase the Margins from the date of receipt of such amended or restated financial statements and charge Companies Company additional interestinterest (such that Xxxxx Fargo receives the interest that it should have received under this Agreement if the Company’s financial condition had been properly reported), which may be imposed on them from the beginning of the appropriate month to which the restated statements previous change has been made or recalculated financial tests relateto the beginning of the month in which any Event of Default has occurred, as Xxxxx Fargo in its sole discretion deems appropriate.

Interest Rates Applicable to Line of Credit. Except as otherwise provided in this Agreement, the unpaid principal amount of each Line of Credit Advance evidenced by the Revolving Note shall accrue interest at an annual interest rate calculated as follows: Floating Rate: Line of Credit Base Rate Advances = the Base Rate plus the Prime Rate minus the applicable Applicable Margin, which interest rate shall change whenever the Prime Base Rate changes (the “Floating Rate”); or LIBOR Advance Rate for One, Three, Three or Six Month Interest Periods: Line of Credit Periods Advances = LIBOR plus the applicable LIBOR Advance Rate Applicable Margin (the “LIBOR Advance Rate”) Multiple Advances under the Line of Credit may simultaneously accrue interest at both the Floating Base Rate and at the LIBOR Advance Rate, subject to the limitations of Section 1.3(a)(i). The Margins through Prime Rate Applicable Margin and including the adjustment occurring as specified below shall be 0.25% per annum for Floating LIBOR Advance Rate Advances, and 2.40% per annum for LIBOR Advances. The Margins Applicable Margin each shall be reduced by 0.25% per annum on a one-time basis if quarter of one percent (0.25%) effective on April 1, 2009 (the following conditions precedent have been satisfied (as verified by Xxxxx Fargo): “Interest Rate Reduction Effective Date”). If (i) Borrower’s audited consolidated annual financial statements for Borrower’s 2009 fiscal year in accordance with Section 5.1(a) hereof indicate that Borrower failed to achieve consolidated Net Income in Borrower’s 2009 fiscal year of at least 75% of the Companies’ Net Income for the Borrower’s 2009 fiscal year ending December 31, 2008 (as presented projected in Companies’ the financial statements audited by independent public accountants acceptable projections delivered to Xxxxx Fargo)Fargo pursuant to Section G(3) of Exhibit C hereto prior to the funding of the initial Advance, is greater than $1,500,000, and (ii) no Default Period is existing at the time Xxxxx Fargo receives such year-end Borrower fails to timely deliver Borrower’s audited consolidated annual financial statements. The Margin reduction provided statements for in the immediately preceding paragraph shall become effective on the first calendar day of the first calendar month following the month of receipt by Xxxxx Fargo of Borrower’s 2009 fiscal year end financial statements that have been audited by an independent public accounting firm, acceptable to Xxxxx Fargo. If amended in accordance with Section 5.1(a) hereof or restated financial statements would change previously calculated Margins, or if (iii) Xxxxx Fargo determines that any Borrower’s audited consolidated annual financial statements for Borrower’s 2009 fiscal year have materially misstated Companies’ Borrower’s financial condition, then Xxxxx Fargo may, using the most accurate information available to it, recalculate the financial test or tests governing the Margins and may retroactively increase the Margins Prime Rate Applicable Margin and the LIBOR Advance Rate Applicable Margin by one-quarter of one percent (0.25%) effective from the date of receipt of such amended or restated financial statements Interest Rate Reduction Effective Date and charge Companies Borrower such additional interest, which may be imposed on them from the beginning of the appropriate month to which the restated statements or recalculated financial tests relate, as Xxxxx Fargo in its sole discretion deems appropriate.