Interest is to be charged at either the base rate (higher of prime or 1/2 of 1% in excess of the federal funds effective rate) or LIBOR/Euribor plus an applicable margin based on a sliding scale of the ratio of the Company’s total indebtedness divided by earnings before interest, taxes, depreciation and amortization (EBITDA). In addition, a commitment fee is charged on the unused facility balance based on the sliding scale of the Company’s total indebtedness divided by EBITDA. The stated interest plus the commitment fee is classified as interest expense.

In 2001, the Company redeemed, prior to scheduled maturities, $147.4 million of debt with interest rates ranging from 4.7% to 6.4%. This resulted in a $1.5 million after-tax extraordinary loss for the Company.