Common use of Interest and Default Interest Clause in Contracts

Interest and Default Interest. The Second Out Exchangeable Notes will bear interest at the rate of 4.0% cash plus 6.0% PIK per annum, payable on a quarterly basis. Upon the occurrence and during the continuation of an event of default on the payment of the Second Out Exchangeable Notes principal and interest, the Issuer shall make: (i) late payment interest of 1.0% per month or fraction of a month, calculated pro rata temporis, from the date of default until the date of actual payment, and (ii) a late payment penalty of 2.0% per annum.