Common use of Non-Default Interest Clause in Contracts

Non-Default Interest. The Borrower shall pay interest to Lender monthly in arrears on the first day of each month commencing April 1, 1997 on the outstanding and unpaid principal balance of the Revolving Loan, Second Term Loan and Equipment Loan at a rate per annum equal to, at Borrower's election pursuant to Section 2.14 below, (i) the Prime Rate, (ii) LIBOR plus two hundred (200) basis points, or (iii) the Cost of Funds plus two hundred (200) basis points. Notwithstanding anything contained herein to the contrary, if the Borrower achieves a Debt Service Ratio (as defined in Section 10 of Exhibit A hereto) of greater than or equal to 1.5 to 1.0 for the year to date period tested, the portion of the Revolving Loan which bears interest with respect to the LIBOR Rate or the Cost of Funds Rate will be reduced by twenty-five (25) basis points for the quarter in which the Debt Service Ratio was tested. Any change in the interest rate resulting from a change in the Prime Rate shall become effective as of the opening of business on the day on which such change in the Prime Rate shall become effective.

Non-Default Interest. The Borrower shall pay interest to Lender monthly in arrears on the first day of each month commencing April 1, 1997 on the outstanding and unpaid principal balance of the Revolving Loan, Second Term Loan, Equipment Loan and Equipment Loan IV at a rate per annum equal to, at Borrower's election pursuant to Section 2.14 below, (i) the Prime Rate, (ii) LIBOR plus two hundred (200) basis points, or (iii) the Cost of Funds plus two hundred (200) basis points. Notwithstanding anything contained herein to the contrary, if the Borrower achieves a Debt Service Ratio (as defined in Section 10 of Exhibit A hereto) of greater than or equal to 1.5 to 1.0 for the year to date period tested, the portion of the Revolving Loan which bears interest with respect to the LIBOR Rate or the Cost of Funds Rate will be reduced by twenty-five (25) basis points for the quarter in which the Debt Service Ratio was tested. Any change in the interest rate resulting from a change in the Prime Rate shall become effective as of the opening of business on the day on which such change in the Prime Rate shall become effective.