Extract to table

Capitalized terms used but not otherwise defined herein shall have the meanings assigned to such terms in the Credit Agreement

The Maker shall make entries on the Grid Schedule or in its books and records, as applicable, promptly following each intercompany loan, advance, or repayment

Interest shall accrue on the unpaid principal balance of each intercompany loan and advance outstanding hereunder at a rate per annum equal to the applicable federal rate (the "AFR") as determined under Section 1274(d) of the Internal Revenue Code of 1986, as amended (the "Code"), in effect as of the date such intercompany loan or advance is made, utilizing the compounding period and term corresponding to the term of such intercompany loan or advance, or such other rate as may be agreed upon in writing between the Maker and the applicable Subsidiary Payee from time to time; provided that any such agreed-upon rate shall be consistent with arm's-length terms within the meaning of Section 482 of the Code and applicable Treasury Regulations thereunder and shall comply with applicable transfer pricing guidelines and policies of the Nexford group

For the avoidance of doubt, to the extent any intercompany loan or advance hereunder is a demand obligation, the applicable AFR shall be determined using the short-term rate in effect for the month in which such loan or advance is made

This method of calculation shall result in a higher effective interest rate than the nominal rate stated herein

Upon the occurrence and during the continuance of any event of default under Section 8 hereof, interest shall accrue on all outstanding principal and, to the extent permitted by applicable law, on all overdue interest, at a rate per annum equal to two percent (2