Default Rate. To the extent permitted by Law, immediately upon the occurrence and during the continuation of an Event of Default under [clause (g) or (h) of Section 9.1], or immediately after written demand by the Requisite [[Organization A:Organization]] to the Administrative Agent after the occurrence and during the continuation of an Event of Default under [clause (a) of Section 9.1], then the principal amount of all Obligations shall bear interest at the Default Rate. The Borrower acknowledges that the increase in rates referred to in this Section 3.4(b) reflects, among other things, the fact that such Term Loans or other amounts have become a substantially greater risk given their default status and that the [[Organization A:Organization]] are entitled to additional compensation for such risk; and all such interest shall be payable by the Borrower upon demand by the Administrative Agent.

Notwithstanding the foregoing (and without duplication of amounts payable under Section 3.1(b)(i)), if an Event of Default has occurred and is continuing, the Administrative Agent may, and shall at the direction of the Required Lenders, increase the per annum effective rate of interest on the outstanding principal of each Loan and all Unreimbursed Amounts in respect of L/C Disbursements (including L/C Borrowings) to a rate equal to the Default Rate to the fullest extent permitted by applicable law. Each Borrower acknowledges that the Default Rate is imposed as a direct result of the increased cost attendant to the administration of the Loans because of said Event of Default.