The final alternative combined the same private placement as in the second alternative with a 10 year, $15-million adjustable rate private placement with a three year option to fix for a term of three years. If the option to fix were exercised, the remaining term of the loan would be three years from the date of exercise. The principal on the second placement would also be repaid in full upon maturity. The variable rate note would be set at the 91 day Treasury rate plus 200 basis points, while the rate if Merit chose to fix would be 122 percent of three year Treasuries. The variable rate note could not be repaid prior to June 30, 1986. Between June 30, 1986, and March 31, 1988, there would be no prepayment penalty, while prepayment after March 31, 1988, would incur a 5 percent penalty. If Merit exercised the fixed rate option, no prepayment would be allowed during the three-year period. Omni Bank’s compensation on the private-placement package would be 1 percent of the first $10 million and .5 percent of any additional debt placed.