(i) Advances. Except as set forth in Section 2.3(b), the Advances shall
bear interest on the outstanding daily balance thereof, at a variable rate equal to 2.0%
above the Prime Rate.
(ii) Equipment Advances. Except as set forth in Section 2.3(b), the Equipment
Advances shall bear interest, on the outstanding daily balance thereof, at a rate equal to
2.25% above the Prime Rate.
(iii) Standby Letter of Credit. Any drawn amount under the Standby Letter of
Credit shall bear interest, on the outstanding daily balance thereof, at the rates set forth
in the Reimbursement Agreement.
(b) Late Fee; Default Rate. If any payment is not made within 10 days after
the date such payment is due, Borrower shall pay Bank a late fee equal to the lesser of (i)
5% of the amount of such unpaid amount or (ii) the maximum amount permitted to be charged
under applicable law. All Obligations shall bear interest, from and after the occurrence
and during the continuance of an Event of Default, at a rate equal to 5 percentage points
above the interest rate applicable immediately prior to the occurrence of the Event of
(c) Payments. Interest hereunder shall be due and payable on the
15th of each month during the term hereof. Bank shall charge such interest, all
Bank Expenses, and all Periodic Payments against any of Borrowers deposit accounts or
against the Committed Revolving Line, in which case those amounts shall thereafter accrue
interest at the rate then applicable hereunder. Any interest not paid when due shall be
compounded by becoming a part of the Obligations, and such interest shall thereafter accrue
interest at the rate then applicable hereunder.
(d) Computation. In the event the Prime Rate is changed from time to time
hereafter, the applicable rate of interest hereunder shall be increased or decreased,
effective as of the day the Prime Rate is changed, by an amount equal to such change in the
Prime Rate. All interest chargeable under the Loan Documents shall be computed on the basis
of a 360 day year for the actual number of days elapsed.
(e) Limitation on Interest. Borrower and Bank intend to contract in strict
compliance with applicable usury law from time to time in effect. In furtherance thereof
such persons stipulate and agree that none of the terms and provisions contained in the
Loan Documents shall ever be construed to provide for interest in excess of the maximum
amount of interest permitted to be charged by applicable usury law from time to time in
effect. If, notwithstanding the foregoing, any amount constituting interest is nonetheless
charged or collected in excess of the maximum amount of interest permitted to be charged by
applicable usury law from time to time in effect, then such excess shall, at the option of
the payee thereof, be credited on the amount of the obligations owed to such payee or
refunded by such payee to the payor thereof.