Common use of Computation and Payment of Interest Clause in Contracts

Computation and Payment of Interest. (a) (a) (x) Dollar Denominated Revolving Loans maintained as Prime Rate Loans shall bear interest at the Prime Rate plus the Applicable Prime Rate Margin, (y) Dollar Denominated Revolving Loans maintained as LIBOR Rate Loans shall bear interest at the LIBOR Rate plus the Applicable LIBOR Rate Margin and (z) Euro Denominated Revolving Loans shall bear interest at the applicable LIBOR Rate plus the Applicable LIBOR Rate Margin plus any Mandatory Costs. (b) Interest shall be computed on the basis of a 360-day year for the actual number of days elapsed, except that interest computed in the case of Prime Rate Loans shall be computed on the basis of a 365-day year (or 366 days in a leap year). Interest on the outstanding principal portion of the Revolving Loans shall be payable, (x) in the case of Prime Rate Loans, monthly, in arrears on the first Business Day of each month and (y) in the case of Euro Rate Loans, at the end of each LIBOR Period or, for Euro Rate Loans with a LIBOR Period in excess of three months, at the earlier of (a) each three months from the commencement of such Euro Rate Loan or (b) the end of the LIBOR Period. The failure to so pay shall not be a Default hereunder to the extent that Excess Availability at such time exceeds the amount of interest then due but shall be deemed a request for Revolving Loans in accordance with Section 2.15 hereof and subject to the conditions in Section 3.23 hereof in an aggregate amount equal to the lesser of the amount of interest then due or such Excess Availability and if such Revolving Loan is made it shall be deemed to be an Advance hereunder. If such Revolving Loans are not able to be advanced to Borrower as a result of the failure to satisfy the conditions to borrowing in Section 3.23 hereof or the failure of a Lender to fund its pro rata portion of an Advance, or such amount exceeds Excess Availability, Borrower shall immediately pay the excess amount of such interest. Otherwise, all interest will be payable in cash (i) on termination of this Agreement, pursuant to Section 14.16, (ii) on acceleration of the time for payment of the Indebtedness, pursuant to Section 12.2, and (iii) on the date the Indebtedness is paid in full. The rate of interest on the Revolving Loans shall change simultaneously with each change in the Prime Rate or in the case of the LIBOR Rate, on the first day of the LIBOR Period. In no event shall the rate of interest exceed the maximum rate permitted by applicable law. If Borrower pays to the Agent for the benefit of the Lenders interest in excess of the amount permitted by applicable law, such excess shall be applied in reduction of the principal of the Advances made pursuant to this Agreement, and any remaining excess interest, after application thereof to the principal of the Advances, shall be refunded to Borrower.