Common use of Interest on the Note Clause in Contracts

Interest on the Note. (a) The Company shall pay interest on the unpaid principal amount from time to time outstanding under this Note at the rate of 11% per annum; provided, that once any principal amount hereof or interest hereon shall have become due and payable, if such amount is not timely paid, the Company shall thereafter pay interest on any such overdue principal amount and, to the extent permitted by applicable law, on any such overdue interest, at the rate of 13% per annum until such amounts shall have been paid in full in cash. Interest on this Note shall be computed on the basis of actual days elapsed over a 360-day year. (b) Interest on this Note shall be payable in cash semi-annually in arrears on each June 30 and December 31 hereafter (each an "Interest Payment Date") and on the Maturity Date; provided, that with respect to any principal amount of this Note that shall at any time become due and payable prior to the Maturity Date (whether by means of amortization, acceleration or otherwise), all accrued and unpaid interest on such principal amount hereof shall also become due and payable on such earlier date; provided, further, that interest on overdue amounts shall be payable on demand. (c) Notwithstanding anything to the contrary contained above, the Company may elect (by providing not less than ten days prior written notice of such election to the Holder at the address for such Holder appearing in the Register) to pay the interest that would otherwise be due and payable in cash hereunder on December 31, 2001 and/or June 30, 2002 in-kind rather than in cash (any such election, an "Interest Deferral Election"). If any Interest Deferral Election is made pursuant to this Section 3(c), the Company shall satisfy its obligation to pay interest hereunder by issuing to the Holder a Note in a principal amount equal to the product of (A) such unpaid amount of interest and (B) 14/11 (each a "Deferred Interest Note"). Deferred Interest Notes shall be in substantially the form hereof and shall be dated as of the Interest Payment Date to which such Interest Deferral Election applies.