LOAN TERM; INTEREST; REPAYMENT; PREPAYMENT. Subject to the Subordination Agreement (as defined herein), the term of each of the Tranche A Loan and the Tranche B Loan will end on the date that is thirty-six (36) months after the date of issuance (the "Issuance Date") of the Tranche A Note and the Tranche B Note, respectively (the "Repayment Date"). Interest on the unpaid principal balance of each of the Tranche A Loan and the Tranche B Loan (each unpaid principal balance is referred to as the "Outstanding Balance") will accrue from the Issuance Date of the Tranche A Note and the Tranche B Note, as applicable, at the Prime Rate, calculated on the basis of a 360 day year and actual days elapsed and such accrued interest shall be due and payable quarterly in arrears beginning on the first day of the month immediately following the Issuance Date of the Tranche A Note and the Tranche B Note, as applicable; provided, however, that, notwithstanding the foregoing, no quarterly interest payments shall be paid to the Lender under the Notes so long as the Subordination Agreement remains in effect and such accrued interest shall (a) with respect to the Tranche A Note, be paid in full on the earlier of the date of termination of the Subordination Agreement or the Repayment Date of the Tranche A Note, and (b) with respect to the Tranche B Note, be capitalized as provided in the Tranche B Note. Subject to the terms of the Subordination Agreement, to the extent not previously converted pursuant to Section 5, the Company will repay the Outstanding Balance of each Note plus all interest accrued thereon on the Repayment Date of each Note. Except as specifically permitted in each Note, the portion of the Outstanding Balance on the Tranche A Loan and the Tranche B Loan and all accrued interest payable to the Lender hereunder may not be prepaid prior to the applicable Repayment Date without the consent of the Lender in its sole and absolute discretion. Unless prohibited under applicable law, any accrued
LOAN TERM; INTEREST; REPAYMENT; PREPAYMENT. Each Note shall be due and payable in full on April , 2003 (the “Repayment Date”) unless otherwise payable earlier in accordance with the terms of such Note. In addition to any accrued but unpaid interest on the Initial Debt and Interim Debt that has been incorporated into the Substitute Notes and deemed indebtedness thereunder, interest on the unpaid principal balance of each Note (such unpaid principal balance is referred to as the “Outstanding Principal Balance”) will accrue from the date such Note was issued until the conversion of such Notes pursuant to Section 2.7 hereof or full payment of the Outstanding Balance (as defined below) at the rate of eight percent (8%) per annum, calculated on the basis of a 360 day year and actual days elapsed. Upon the occurrence of an Event of Default (as defined herein) (after giving effect to any applicable grace periods), the interest on the Outstanding Principal Balance of each Note will accrue from the date of such default until such time as such default is cured in a manner that is reasonably acceptable to the Lenders at a rate per annum equal to three percent (3%) plus the interest rate then in effect. The Company will repay the Outstanding Principal Balance of each Note plus all interest accrued thereon (the “Outstanding Balance”) no later than the Repayment Date. The Outstanding Principal Balance payable to each Lender hereunder may not be prepaid prior to the Repayment Date without the consent of such Lender in its sole and absolute discretion.
LOAN TERM; INTEREST; REPAYMENT; PREPAYMENT. The term of the this Agreement will begin on the Effective Date. Interest on the unpaid principal balance of any Loan (such unpaid principal balance with respect to any Loan is referred to as the "Outstanding Balance") will accrue from the date of such loan at the rate of ten percent (10%) per annum, calculated on the basis of a 360-day year and actual days elapsed; provided, however, that no such accrued interest shall be due and payable prior to the 30th day following the date of such Loan (with respect to each such Loan, a "Repayment Commencement Date"). The Company will repay the Outstanding Balance plus all interest accrued thereon on the first to occur of (i) receipt by the Company of the proceeds from a Qualified Financing (as defined below) and (ii) the Repayment Commencement Date. The Company may prepay all or any portion of the Outstanding Balance with respect to any Loan without penalty, together with accrued interest on the portion of the Outstanding Balance to be prepaid, upon five days prior written notice to Lender. The term "Qualified Financing" shall mean an investment in the Company's Common Stock occurring after the date hereof by an established regional or national venture capital fund or other similar investor, which investment and investor is acceptable to Lender (or its affiliates), in which the Company receives net proceeds greater that $4,000,000.
LOAN TERM; INTEREST; REPAYMENT; PREPAYMENT. The term of the Loan will begin on the Effective Date and end on June 30, 2000 (the "MATURITY"); subject to earlier maturity or termination at election of EFC or the Company, respectively, pursuant to Section 5.2 or Section 14.16. Interest on the Outstanding Balance will accrue at the rate of fifteen percent (15%) per annum, calculated on the basis of a 360 day year and actual days elapsed, which interest will accrue from the time of Drawdown to the day prior to repayment. To the extent not previously converted pursuant to Section 5, the Company shall repay the Outstanding Balance plus all interest accrued thereon at Maturity. The Company may elect to prepay any portion of the Outstanding Balance along with accrued interest without penalty; provided that no prepayment shall be for less than $150,000 of the Outstanding Balance, unless the Outstanding Balance is less than $150,000 in which case the prepayment shall not be less than the Outstanding Balance plus accrued interest. Prepayments shall be applied first to accrued interest and then to the Outstanding Balance.
