tokens: INTEREST AND REPAYMENT 3 . 1 The Borrower shall , from the Effective Date , pay interest in arrears to the Lender on the Loan outstanding from time to time , such interest calculated at a rate of three percent ( 3 %) per Calendar Year compounded annually on the actual outstanding amount of the Loan plus any accrued interest and any other amounts due hereunder ; provided that upon a failure to repay a part of the Loan when due or any other default by Borrower set forth in Page 4 of 12 7 - December 2007 Clause 18 under this Loan Agreement , the foregoing rate shall increase to an amount equal to ( a ) the twelve - month EURIBOR rate determined on the business day preceding the default as reported in the Wall Street Journal , plus ( b ) three ( 3 %) on the unpaid amount only .