ALTERNATIVE RATE OPTIONS
(PRIME RATE, LIBOR)
1. TYPE OF CREDIT. This note is given to evidence Borrower's obligation to repay all Indebtedness of
Borrower to Lender pursuant to the terms of a Loan and Security Agreement dated as of February 3, 1999
("Agreement"). Under the terms of the Agreement, Lender has agreed to make Advances to Borrower under a
Line of Credit. No Advances shall be made which would cause the aggregate amount of outstanding
Indebtedness at any one time to exceed Sixty Million and No/100 Dollars ($60,000,000.00). However,
Advances hereunder may be borrowed, repaid and reborrowed. Capitalized terms not defined herein shall have
the meaning assigned to them in the Agreement.
2. PROMISE TO PAY. For value received Borrower promises to pay to Lender or order at 1145 Broadway,
Suite 1100, Tacoma, WA. the Principal Balance of this note, with interest thereon at the rate(s) specified in
Sections 3 and 7 below.
3. INTEREST RATE. The interest rate on the Principal Balance outstanding may vary from time to time pursuant
to the provisions of this note. Subject to the provisions of this note, Borrower shall have the option from time to
time of choosing to pay interest at the rate or rates and for the applicable periods of time based on the rate
options provided herein; provided, however, that once Borrower notifies Lender of its selection of the LIBOR
Borrowing Rate option chosen in accordance with the provisions of this note, such notice shall be irrevocable.
The rate options are the Prime Borrowing Rate and the LIBOR Borrowing Rate, each as defined herein. Interest
shall be computed at the applicable rate based upon a three hundred sixty (360) day year and applied to the
actual days applicable. Interest shall be paid on the first (1st) day of each month until the Expiration Date, at
which time the Principal Balance and all accrued interest will be due.
(a) THE PRIME BORROWING RATE.
(i) The Prime Borrowing Rate is a per annum rate equ