Common use of Payment of Interest; Default Rate Clause in Contracts

Payment of Interest; Default Rate. So long as no Default or Event of Default shall have occurred and be continuing, the Borrower shall pay interest in cash on the unpaid principal balance of this Note at a rate per annum (the "Base Rate") equal to (a) for any period ending prior to September 11, 2002, the rate per annum provided for in the Original Note applicable to such period, and (b) for any period ending on or after September 11, 2002, thirteen and one-quarter percent (13.25%) until this Note is fully paid; provided, however, that if (i) based upon a completed audit by the Company's independent auditors of the Company's consolidated financial statements for the Fiscal Year ending September 30, 2003, the Company achieves a minimum EBITDA for such Fiscal Year of at least $16.0 million and (ii) the Company thereafter delivers to the Holder an Officers' Certificate, in form and substance satisfactory to the Holder and signed by the President and Chief Executive Officer and Chief Financial Officer of the Company, certifying that the Company has achieved such minimum EBITDA and attaching thereto copies of such audited consolidated financial statements and the notes thereto (together with the independent auditor's opinion) and the calculation thereof, prepared in reasonable detail, the Base Rate will be reduced to twelve and one-half percent (12.50%), effective from and after the date of receipt of such Officers' Certificate (and the attachments) by the Holder. Interest shall be payable monthly in arrears on the last Business Day of each calendar month (or portion thereof) (each an "Interest Payment Date"). Interest shall be computed on the basis of the actual number of days elapsed over a 360-day year, including the first and the last day. If any Default or Event of Default shall have occurred and be continuing, then, in addition to the rights, powers and remedies available to the Holder under the Securities Purchase Agreement, this Note, the other Investment Documents and Applicable Law, the Borrower shall pay interest on the unpaid principal balance of, premium, if any, and accrued and unpaid interest on, and other amounts owing under, this Note at a rate per annum (the "Default Rate") equal to the Base Rate then in effect, plus two percent (2.0%). The Default Rate shall begin to accrue on the date on which such Default or Event of Default shall be deemed to have occurred (determined as provided in the last paragraph of Section 11.1 of the Securities Purchase Agreement) and shall continue until such Default or Event of Default shall have been cured or waived.

Payment of Interest; Default Rate. So long as no Default or Event of Default shall have occurred and be continuing, the Borrower shall pay interest in cash on the unpaid principal balance of this Note at a rate per annum (the "Base Rate") equal to (a) for any period ending prior to September 11, 2002, the rate per annum provided for in the Original this Note applicable to such period, and (b) for any period ending on or after September 11, 2002, thirteen and one-quarter percent (13.25%) until this Note is fully paid; provided, however, that if (i) if, based upon a completed full audit by the Company's independent auditors of the Company's consolidated financial statements for the Fiscal Year ending on or about September 30, 2003, the Company achieves a minimum EBITDA for such Fiscal Year of at least $16.0 million and (ii) the Company thereafter and, thereafter, delivers to the Holder an Officers' CertificateCertificate to the Holder, in form and substance satisfactory to the Holder and signed by the President and Chief Executive Officer and Chief Financial Officer of the Company, certifying that the Company has achieved such minimum EBITDA and attaching thereto copies of such audited consolidated financial statements and the notes thereto (together with the independent auditor's opinion) and the calculation thereof, prepared in reasonable detail, the Base Rate will be reduced to twelve and one-half percent (12.50%), effective from and after the date of receipt of such Officers' Certificate (and the attachments) by the Holder. Interest shall be payable monthly in arrears on the last Business Day of each calendar month (or portion thereof) (each an "Interest Payment Date"). Interest shall be computed on the basis of the actual number of days elapsed over a 360-day year, including the first and the last day. If any Default or Event of Default shall have occurred and be continuing, then, in addition to the rights, powers and remedies available to the Holder under the Securities Purchase Agreement, this Note, the other Investment Documents and Applicable Law, the Borrower shall pay interest on the unpaid principal balance of, premium, if any, and accrued and unpaid interest on, and other amounts owing under, this Note at a rate per annum (the "Default Rate") equal to the Base Rate then in effect, plus two percent (2.0%). The Default Rate shall begin to accrue on the date on which such Default or Event of Default shall be deemed to have occurred (determined as provided in the last paragraph of Section 11.1 10.1 of the Securities Purchase Agreement) and shall continue until such Default or Event of Default shall have been cured or waived."

Payment of Interest; Default Rate. So long as no Default or Event of Default shall have occurred and be continuing, the Borrower shall pay interest in cash on the unpaid principal balance of this Note at a rate per annum (the "Base Rate") equal to (a) for any period ending prior to September 11, 2002, the rate per annum provided for in the Original Note applicable to such period, and (b) for any period ending on or after September 11, 2002, thirteen and one-quarter fifteen percent (13.25%) until this Note is fully paid; provided, however, that if (i) based upon a completed audit by the Company's independent auditors of the Company's consolidated financial statements for the Fiscal Year ending September 30, 2003, the Company achieves a minimum EBITDA for such Fiscal Year of at least $16.0 million and (ii) the Company thereafter delivers to the Holder an Officers' Certificate, in form and substance satisfactory to the Holder and signed by the President and Chief Executive Officer and Chief Financial Officer of the Company, certifying that the Company has achieved such minimum EBITDA and attaching thereto copies of such audited consolidated financial statements and the notes thereto (together with the independent auditor's opinion) and the calculation thereof, prepared in reasonable detail, the Base Rate will be reduced to twelve and one-half percent (12.5015.0%), effective from and after the date of receipt of such Officers' Certificate (and the attachments) by the Holder. Interest shall be payable monthly in arrears on the last Business Day of each calendar month (or portion thereof) (each an "Interest Payment Date"). Interest shall be computed on the basis of the actual number of days elapsed over a 360-day year, including the first and the last day. If any Default or Event of Default shall have occurred and be continuing, then, in addition to the rights, powers and remedies available to the Holder under the Securities Purchase Agreement, this Note, the other Investment Documents and Applicable Law, the Borrower shall pay interest on the unpaid principal balance of, premium, if any, and accrued and unpaid interest on, and other amounts owing under, this Note at a rate per annum (the "Default Rate") equal to the Base Rate then in effect, plus two seventeen percent (2.017.0%) for the first sixty (60) days during which such Default or Event of Default shall remain uncured or unwaived and, thereafter, such rate shall increase by one percent (1.0%) per annum over the rate applicable to the thirty (30) days prior thereto for each additional thirty (30) days that such Default or Event of Default remains uncured or unwaived; provided, however, that the Default Rate shall not exceed twenty percent (20.0%). The Default Rate shall begin to accrue on the date on which such Default or Event of Default shall be deemed to have occurred (determined as provided in the last paragraph of Section 11.1 of the Securities Purchase Agreement) and shall continue until such Default or Event of Default shall have been cured or waived."

Payment of Interest; Default Rate. So long as no Default or Event of Default shall have occurred and be continuing, the Borrower shall pay interest in cash on the unpaid principal balance of this Note at a rate per annum (the "Base Rate") equal to (a) for any period ending prior to September 11, 2002, the rate per annum provided for in the Original Note applicable to such period, and (b) for any period ending on or after September 11, 2002, thirteen and one-quarter fifteen percent (13.2515.0%) until this Note is fully paid; provided, however, that if (i) based upon a completed audit by the Company's independent auditors of the Company's consolidated financial statements for the Fiscal Year ending September 30, 2003, the Company achieves a minimum EBITDA for such Fiscal Year of at least $16.0 million and (ii) the Company thereafter delivers to the Holder an Officers' Certificate, in form and substance satisfactory to the Holder and signed by the President and Chief Executive Officer and Chief Financial Officer of the Company, certifying that the Company has achieved such minimum EBITDA and attaching thereto copies of such audited consolidated financial statements and the notes thereto (together with the independent auditor's opinion) and the calculation thereof, prepared in reasonable detail, the Base Rate will be reduced to twelve and one-half percent (12.50%), effective from and after the date of receipt of such Officers' Certificate (and the attachments) by the Holder. Interest shall be payable monthly in arrears on the last Business Day of each calendar month (or portion thereof) (each an "Interest Payment Date"), commencing on April 30, 2003. Interest shall be computed on the basis of the actual number of days elapsed over a 360-day year, including the first and the last day. If any Default or Event of Default shall have occurred and be continuing, then, in addition to the rights, powers and remedies available to the Holder under the Securities Purchase Agreement, this Note, the other Investment Documents and Applicable Law, the Borrower shall pay interest on the unpaid principal balance of, premium, if any, and accrued and unpaid interest on, and other amounts owing under, this Note at a rate per annum (the "Default Rate") equal to the Base Rate then in effect, plus two seventeen percent (2.017.0%) for the first sixty (60) days during which such Default or Event of Default shall remain uncured or unwaived and, thereafter, such rate shall increase by one percent (1.0%) per annum over the rate applicable to the thirty (30) days prior thereto for each additional thirty (30) days that such Default or Event of Default remains uncured or unwaived; provided, however, that the Default Rate shall not exceed twenty percent (20%). The Default Rate shall begin to accrue on the date on which such Default or Event of Default shall be deemed to have occurred (determined as provided in the last paragraph of Section 11.1 of the Securities Purchase Agreement) and shall continue until such Default or Event of Default shall have been cured or waived.