The Interest Rate. Interest onunpaid principal shall accrue at a rate equal to the LIBOR Rate, as defined below, plus one and 15/100ths percent (1.15%) (the "Spread") per year. The LIBOR Rate shall be adjusted every three (3) months on each December 1, March 1, June 1, and September 1, or if such date is not a Banking Day, the next succeeding Banking Day ("Reset Date"). The "LIBOR Rate" means the interest rate determined by the following formula. (All amounts in the calculation will be determined by Bank as of the Reset Date.) LONDON INTER-BANK OFFERED RATE LIBOR Rate = ------------------------------- (1.00 - Reserve Percentage) Where,

The Interest Rate. The Loan shall bear interest (the "Interest ----------------- --------- Rate") at a rate equal to the Company's then borrowing rate plus ---- .5% (currently 10.75%). Interest shall be calculated on the basis of a 365-day year for the actual days elapsed.