Neiman Marcus 2003 Annual Report Download - page 225

(b) Each Competitive Bid Loan shall mature, and the principal amount thereof shall be due and payable (together with
interest accrued thereon), on the last day of the Interest Period applicable thereto.
Section 2.07. Interest Rates.
(a) Each Base Rate Loan shall bear interest on the outstanding principal amount thereof, for each day from the date
such Loan is made until it becomes due, at a rate per annum equal to the sum of the Base Rate plus the Base Rate Margin for such
day. Such interest shall be payable quarterly in arrears on each Quarterly Payment Date and on the Termination Date and, with
respect to the principal amount of any Base Rate Loan that is prepaid or converted to a Euro-Dollar Loan, on the date of such
prepayment or conversion.
(b) Each Euro-Dollar Loan shall bear interest on the outstanding principal amount thereof, for each day during each
Interest Period applicable thereto, at a rate per annum equal to the sum of the Euro-Dollar Margin for such day plus the London
Interbank Offered Rate applicable to such Interest Period. Such interest shall be payable for each Interest Period on the last day
thereof and, if such Interest Period is longer than three months, at intervals of three months after the first day thereof and, with respect
to the principal amount of any Euro-Dollar Loan that is prepaid or converted to a Base Rate Loan, on the date of such prepayment or
conversion. The "London Interbank Offered Rate" applicable to any Interest Period means (a) the offered rate for dollar deposits,
for a period approximately equal to such Interest Period and, if the amount is so quoted, in an amount approximately equal to the
average principal amount of the applicable Loans, quoted on the second Euro-dollar Business Day prior to the first day of such Interest
Period, as such rate appears on the display designated as page "3750" on the Dow Jones Market Service (or such other page as may
replace page "3750" on the Dow Jones Market Service or such other service as may be nominated by the British Bankers' Association
as the information vendor for the purpose of displaying British Bankers' Association Interest Settlement Rates for U.S. Dollar
deposits) ("Page 3750") as of 11:00 A.M. (London time) on such date, (b) if, as of 11:00 A.M. (London time) on any such date such
rate does not appear on Page 3750, the arithmetic mean (adjusted, if necessary, to the nearest 1/16th of 1%), of the offered rates for
dollar deposits, for a period approximately equal to such Interest Period quoted on the second Euro-Dollar Business Day prior to the
first day of such Interest Period, as such rates appear on the display designated as page "LIBO" on the Reuters Monitor Money Rates
Service (or such other page as may replace the "LIBO" page on that service for the purpose of displaying London interbank offered
rates of major banks) ("Reuters Screen LIBO Page") as of 11:00 A.M. (London time) on such date, or (c) if neither of the above rates
is available (and in the case of clause (b), if on any such date at least two such rates do not appear on the Reuters Screen LIBO page),
the average (adjusted, if necessary, to the next higher 1/16th of 1%) of the respective rates per annum at which deposits in dollars are
offered to the Reference Bank in the London interbank market at approximately 11:00 A.M. (London time) two Euro-Dollar Business
Days before the first day of such Interest Period in an amount approximately equal to the principal amount of the Euro-Dollar Loan of
such Reference Bank to which such Interest Period is to apply and for a period of time comparable to such Interest Period.
(c) Subject to Section 8.01, each Competitive Bid LIBOR Loan shall bear interest on the outstanding principal amount
thereof, for the Interest Period applicable thereto, at a rate per annum equal to the sum of the London Interbank Offered Rate for such
Interest Period (determined in accordance with Section 2.07(b) as if the related Competitive Bid LIBOR Borrowing were a Euro-
Dollar Borrowing) plus (or minus) the Competitive Bid Margin quoted by the Lender making such Loan in accordance with Section
2.03. Each Competitive Bid Absolute Rate Loan shall bear interest on the outstanding principal amount thereof, for the Interest Period
applicable thereto, at a rate per annum equal to the Competitive Bid Absolute Rate quoted by the Lender making such Loan in
accordance with Section 2.03. Such interest shall be payable for each Interest Period on the last day thereof and, if such Interest
Period is longer than three months, at intervals of three months after the first day thereof.
23