Common use of Minimum Interest Rates Clause in Contracts

Minimum Interest Rates. (i) The rate of interest provided for in Section 2.03(a) of this Agreement is the minimum interest rate. (ii) When entering into this Agreement, the parties hereto have assumed that the interest payable at the rates set out in Section 2.03(a) is not and will not become subject to Swiss Withholding Tax. Notwithstanding that the parties hereto do not anticipate that any payment of interest will be subject to Swiss Withholding Tax, they agree that, in the event that Swiss Withholding Tax should be imposed on interest payments by ACE, the payment of interest due by ACE shall be increased to an amount that (after making any deduction of the Non-refundable Portion of Swiss Withholding Tax as defined below) results in a payment to the Bank entitled to such payment of an amount equal to the payment which would have been due had no deduction of Swiss Withholding Tax been required. For this purpose, the Swiss Withholding Tax shall be calculated on the full grossed-up interest amount. (iii) For the purposes of the foregoing, “Non-refundable Portion of Swiss Withholding Tax” means Swiss Withholding Tax at the standard rate (which, as of the date hereof, is 35%) unless according to an applicable double tax treaty, the Non-refundable Portion of Swiss Withholding Tax for the Bank is a specified lower rate, in which case such lower rate shall be applied in relation to the Bank. No payment pursuant to this clause (iii) shall be in duplication of any payment pursuant to Section 2.09.

Minimum Interest Rates. (i) The rate various rates of interest provided for in Section 2.03(a) of this Agreement is the are minimum interest rate. (ii) When entering into this Agreement, the rates. The parties hereto have assumed that the interest payable at the such rates set out in Section 2.03(a) is not and will not become subject to Swiss Withholding Tax. Notwithstanding that the parties hereto do not anticipate that any payment of interest will be subject to Swiss Withholding Tax, they each Lender, the Parent and the Administrative Agent agree that, in the event that if Swiss Withholding Tax should be is imposed on any interest payments payment by ACEthe Parent to any Lender and it is unlawful for any reason for the Parent to comply with Section 2.13 when it would otherwise be required to make any payment under such Section, the then any payment of interest due to be made by ACE the Parent to such Lender shall be increased to an amount that which (after making any deduction of the Non-refundable Portion of Swiss Withholding Tax as defined below) results in a payment to the Bank entitled to such payment Lender of an amount equal to the payment which would have been due had no deduction of Swiss Withholding Tax been required. For this purposeIn calculating the amount due pursuant to the foregoing sentence, the Swiss Withholding Tax shall be calculated on the full grossed-up interest amount. (iii) . For the purposes of the foregoing, “Non-refundable Portion of Swiss Withholding Tax” means Swiss Withholding Tax at the standard rate (which, as of the date hereofJuly 1, 2008, is 35%) unless according to an applicable double tax treaty, the Non-refundable Portion of Swiss Withholding Tax for the Bank any Lender is a specified lower rate, in which case such lower rate shall be applied in relation to the Banksuch Lender. No payment pursuant to this clause (iiid) shall be in duplication of any payment pursuant to Section 2.092.13.