Interest Rate Margin

Interest Rate Margin. Means, effective as of January 1, 2006, five percent (5.0%), provided, however, that, if no Event of Default then exists: (i) if the Borrower's Cash Flow for the three months ending March 31, 2006 is equal to or greater than $0, then the Interest Rate Margin shall equal four percent (4.0%); (ii) if the Borrower's Cash Flow for the six months ending June 30, 2006 is equal to or greater than $0, then the Interest Rate Margin... shall equal four percent (4.0%); (iii) if the Borrower's Cash Flow for the nine months ending September 30, 2006 is (a) equal to or greater than $1,467,830, then the Interest Rate Margin shall equal three percent (3.0%) and (b) equal to or greater than $0 but less than $1,467,830, then the Interest Rate Margin shall equal four percent (4.0%); and (iv) if the Borrower's Cash Flow for the twelve months ending December 31, 2006 is (a) equal to or greater than $2,794,162, then the Interest Rate Margin shall equal one and one half percent (1.5%), (b) equal to or greater than $2,394,162 but less than $2,794,162, then the Interest Rate Margin shall equal two percent (2.0%), (c) equal to or greater than $1,467,830 but less than $2,394,162, then the Interest Rate Margin shall equal three percent (3.0%), and (d) equal to or greater than $0 but less than $1,467,830, then the Interest Rate Margin shall equal four percent (4.0%). -2- Any increase in the Interest Rate Margin shall be effective on the first day of the month in which the Lender receives the Borrower's monthly financial statements. Any decrease in the Interest Rate Margin shall be effective on the first day of the month following the month in which the Lender receives the Borrower's monthly financial statements. If the Lender does not receive the Borrower's monthly financial statements on the date that they are due, then the Interest Rate Margin shall equal five percent (5.0%), and shall be effective on the first day of that month. If at any time the Interest Rate Margin has been decreased and any of the Borrower's financial statements show that the Borrower was not entitled to such decrease, then the Interest Rate Margin shall be increased to the Interest Rate Margin to which the Borrower is entitled, such increase to be effective retroactively to the date of such decrease. If at any time the Interest Rate Margin has been decreased and an Event of Default occurs, then the Interest Rate Margin shall equal five percent (5.0%), and shall be effective on the first day of the month in which the Event of Default occurs. View More

Interest Rate Margin. Means one percent (1.00%); provided, however, that if (i) no Event of Default then exists, and (ii) the Borrower's financial statements delivered to the Lender for the period from December 29, 2003 to and including June 27, 2004 demonstrate that Net Income equals or exceeds $404,000 for such period, the Interest Rate Margin shall be reduced to one half of one percent (0.50%) as of the first day of the month following the month such financial statements are... delivered. View More