Common use of OFFSHORE RATE Clause in Contracts

OFFSHORE RATE. The Borrower may elect to have all or portions of the principal balance of the line of credit bear interest at the rate equal to the lesser of (a) the IBOR Rate (as hereinafter defined) plus an amount equal to the percentage amount (the "Offshore Rate") set forth in the table below opposite the applicable ratio, at the time of Borrower's election, of (i) the consolidated Funded Debt to (ii) the consolidated EBITDA (for definition and calculation of the Funded Debt to EBITDA Ratio, refer to paragraph 7.5 of this Agreement), or (b) the Maximum Rate. Borrower shall give Bank notice of its election of an Offshore Rate by such time, and in such manner, as shall be acceptable to Bank. Each such election shall be for an interest period of not less than 30 days or more than 180 days. At the end of any interest period, the interest rate will revert to the Basic Rate unless the Borrower has elected another Offshore Rate interest period. FUNDED DEBT TO EBITDA PERCENTAGE AMOUNT Less than or equal to 1.00:1.00 0.90% Greater than 1.00:1.00 1.25% Designation of an Offshore Rate portion is subject to the following requirements: (a) The interest period during which the Offshore Rate will be in effect will be no shorter than 30 days and no longer than 180 days. The last day of the interest period will be determined by the Bank using the practices of the offshore dollar inter-bank market. (b) Each Offshore Rate portion will be for an amount not less than Five Hundred Thousand Dollars ($500,000).

OFFSHORE RATE. The Borrower may elect to have all or portions of the principal balance amount of the line of credit indebtedness outstanding hereunder bear interest at the a per annum rate equal to the lesser of (a) the IBOR Rate (as hereinafter defined) plus an amount equal to the percentage amount (the "Offshore Rate") set forth in the table below opposite the applicable ratio, at the time of Borrower's election, of (i) the consolidated Funded Debt to (ii) the consolidated EBITDA (for definition and calculation of the Funded Debt to EBITDA Ratio, refer to paragraph 7.5 6.5 of this Agreement), or (b) the Maximum Rate. Borrower shall give Bank notice of its election of an Offshore Rate by such time, and in such manner, as shall be acceptable to Bank. Each such election shall be for an interest period of not less than 30 days one month or more than 180 daysthree months. At the end of any interest period, the interest rate will revert to the Basic Rate unless the Borrower has elected another Offshore Rate interest period. FUNDED DEBT TO Funded Debt to EBITDA PERCENTAGE AMOUNT Percentage Amount --------------------- ----------------- Less than 1.00:1.00 0.75% Greater than or equal to 1.00% 1.00:1.00 0.90% but less than 1.50:100 Greater than 1.00:1.00 or equal to 1.50:1.00 1.25% Designation Election of an Offshore Rate portion is subject to the following requirements: 2 3 (a) The Each interest period during which the Offshore Rate will be in effect will be no shorter than 30 days and no longer than 180 to 90 days. The last day of the each interest period will be determined by the Bank using the practices last day of the offshore dollar inter-bank marketa calendar quarter. (b) Each Offshore Rate portion will be for an amount not less than Five Hundred Thousand Dollars $100,000.00. ($500,000)c) The "IBOR Rate" means the interest rate determined by the following formula, rounded upward to the nearest 1/100 of one percent (All amounts in the calculation will be determined by Bank as of the first day of the interest period.) IBOR Rate = Grand Cayman Rate ----------------- (1.00 - Reserve Percentage) Where: