Common use of Fixed Payments Clause in Contracts

Fixed Payments. The Fixed Payments to be made by BriteSmile to CAP shall be equal to interest on the principal balance of the Loan outstanding from time to time based on a 360-day year at a rate (the "Target Rate") specified by CAP as provided below which shall be either (i) six percent (6%) per annum (the "Base Rate"), or (ii) the London Interbank Offered Rate as quoted by The Bank of Nova Scotia for deposits in U.S. Dollars for one year maturities as determined on the Adjustment Date plus 200 basis points (the "Libor Rate"). Initially, the Fixed Payments shall be calculated using the Base Rate. CAP shall have the right from time to time while the Loan remains outstanding on at least 30 days prior written notice to BriteSmile, to set or reset the Target Rate at either the Base Rate or the Libor Rate as of the date (the "Adjustment Date") set forth in such notice on which such rate is to become effective. Fixed Payments will accrue from the date of the first draw on the Loan made by BriteSmile and shall be payable in arrears on the first business day of the month immediately following the month during which the Fixed Payment on the Loan accrued and on the Maturity Date. Notwithstanding the foregoing, from and after May 11, 2006, the rate of Fixed Payments shall be calculated based on the total principal amount of the Loan outstanding at May 11, 2006 for the period from May 11, 2006 to December 31, 2006. On January 1 of each calendar year thereafter for such calendar year or portion thereof during which the Loan is outstanding the amount of the Fixed Payments shall be calculated based on the total principal amount of the Loan outstanding on such January 1.