Loan Agreement (United States)

Interpretation

"Security Document" means any document creating or evidencing security for the Borrower's obligations under this agreement.

"Guarantee" means any guarantee of the Borrower's obligations under this agreement.

"Finance Documents" means this agreement, each Security Document and each Guarantee.

"Security Interest" means any mortgage, deed of trust, pledge, hypothecation, security interest, lien, charge or other encumbrance or preferential arrangement having the practical effect of security, including the interest of a vendor or lessor under a conditional sale or other title retention agreement.

"Financial Indebtedness" means any indebtedness for or in respect of money borrowed or raised, including under any loan, bond, note, finance or capital lease, deferred purchase price arrangement (other than normal trade credit), or guarantee or indemnity of any of those.

An Event of Default is "continuing" if it has not been remedied or waived in writing by the Lender.

In this agreement: a reference to a party includes its successors in title and permitted assigns; "including" and similar words do not limit the words that precede them; a reference to a law includes that law as amended or re-enacted; a reference to a clause is to the clause of this agreement with that heading; headings do not affect interpretation; and, where a party is an individual, "it" and "its" include him or her and his or her, a reference to a party's officers, board, constitution or organizational documents, or to its being duly incorporated or organized, applies only to a party that is a corporation or other entity, and a reference to a party's insolvency includes, for an individual, bankruptcy or any equivalent procedure in any jurisdiction.

The Loan

The Lender agrees to make the Loan available to the Borrower on the terms of this agreement.

The Borrower must use the Loan only for the Purpose. The Lender is not obliged to monitor or verify how the Loan is used.

If the Lender requests, the Borrower must sign and deliver to the Lender a promissory note, in a form reasonably satisfactory to the Lender, evidencing the Loan. The note evidences, and does not replace or add to, the Borrower's obligations under this agreement.

Conditions to Drawdown

The Lender is not obliged to advance the Loan until it has received, in form and substance reasonably satisfactory to it: a copy of this agreement signed by the Borrower; evidence that the Borrower has taken all action needed to authorize its entry into and performance of the Finance Documents to which it is a party, including a copy of any relevant board or members' resolution where the Borrower is not an individual; evidence of the identity and authority of each person signing a Finance Document for the Borrower; each Security Document and Guarantee required by this agreement, signed and, where relevant, registered; and any information the Lender reasonably requires to complete its identification and anti-money-laundering checks.

The Lender is also not obliged to advance the Loan if, on the date of any drawdown request or on the Drawdown Date, an Event of Default is continuing or would result from the advance, or any representation in the Representations clause is untrue in any material respect.

Drawdown

Subject to the Conditions to Drawdown clause, the Lender must advance the Loan in one amount on [TO BE CONFIRMED — Drawdown date (fixed-date drawdown)], or any later date the parties agree in writing, by transferring it in immediately available funds to the bank account in the Borrower's name that the Borrower notifies to the Lender in writing at least three Business Days before that date.

The Loan may be drawn only once. Any part of the Loan not advanced on the Drawdown Date or, where an Availability Period applies, by the end of the Availability Period, is canceled.

Interest

The Loan bears interest at the Interest Rate from and including the Drawdown Date until it is repaid in full. Interest accrues daily, is calculated on the actual number of days elapsed and a year of 365 days, and is payable by the Borrower in arrears on each Interest Payment Date and on the date on which the Loan is repaid or prepaid in full.

Nothing in this agreement requires the Borrower to pay, or permits the Lender to charge or receive, interest or any other amount treated as interest under applicable law in excess of the maximum rate that law permits. If any excess is charged or received, it is applied in reduction of the principal of the Loan or, if the Loan has been repaid in full, refunded to the Borrower, and the interest payable is reduced to the maximum lawful amount.

Repayment

The Borrower must repay the Loan in full, together with all accrued interest and all other amounts outstanding under this agreement, on the Final Repayment Date.

The Borrower may not re-borrow any part of the Loan that has been repaid or prepaid.

Voluntary Prepayment

The Borrower may prepay all or any part of the Loan by giving the Lender written notice, at least the Prepayment Notice Period before the proposed prepayment date, specifying the amount to be prepaid and the prepayment date. A prepayment notice is irrevocable, and the Borrower must make the prepayment on the date specified.

A prepayment must be made together with accrued interest (if any) on the amount prepaid and is otherwise made without premium or penalty.

A partial prepayment is applied against the remaining repayment installments in inverse order of maturity.

Default Interest

If the Borrower does not pay any amount payable under this agreement on its due date, interest accrues on the overdue amount from the due date until the date of actual payment at a rate equal to the Interest Rate (if any) plus the Default Margin. Default interest is calculated on the actual number of days elapsed and a year of 365 days, does not compound, and is payable on demand.

Payments

The Borrower must make every payment under this agreement in the currency in which the Loan is denominated, in immediately available funds, to the account that the Lender notifies to the Borrower in writing for that purpose, by no later than its due date.

A payment that would otherwise fall due on a day that is not a Business Day is due on the next Business Day in the same calendar month (if there is one) or on the preceding Business Day (if there is not), and interest (if any) is adjusted accordingly.

If the Lender receives less than the full amount then due under this agreement, it must apply the payment first to costs and expenses due under this agreement, then to default interest, then to other accrued interest, and then to principal.

A certificate by the Lender of any amount due under this agreement is, in the absence of manifest error, prima facie evidence of the matters to which it relates.

Taxes

The Borrower must make every payment under this agreement without any deduction or withholding for or on account of tax, unless a deduction or withholding is required by law. If one is required, the Borrower must make it, pay the amount deducted or withheld to the relevant tax authority within the time allowed by law, give the Lender evidence of payment, and increase the payment so that the Lender receives the amount it would have received had no deduction or withholding been required. The Borrower need not increase a payment to the extent that the deduction or withholding results from an assignment or transfer by the Lender, or from the Lender's failure to provide information or forms that the Borrower reasonably requested in order to reduce or eliminate it.

The Lender must deliver to the Borrower, on or before the date of this agreement and promptly after any form previously delivered expires or becomes inaccurate, a properly completed and signed IRS Form W-9 or the applicable IRS Form W-8.

Security

The Borrower's obligations under this agreement are to be secured by security over the Secured Assets, created by a separate Security Document in a form agreed between the parties. This agreement does not itself create any security.

The Borrower must sign and deliver the Security Document to the Lender before the Drawdown Date and must, at its own cost, complete every registration, filing, notice or other step that the law requires to perfect the security and give it the priority intended.

Guarantee

The Borrower must procure that the Guarantor signs and delivers to the Lender, before the Drawdown Date, a guarantee of the Borrower's obligations under this agreement in a separate document in a form agreed between the Lender and the Guarantor.

Representations

The Borrower makes to the Lender each of the representations in this Representations clause that is expressed to be made by the Borrower.

The Borrower, if it is not an individual, is duly incorporated or established and validly existing under the law of its jurisdiction of incorporation or establishment, and has the power to own its assets and carry on its business as it is being conducted; and, if it is an individual, has full legal capacity.

The Borrower has the power to enter into and perform the Finance Documents to which it is a party and has taken all necessary action to authorize its entry into and performance of them.

The obligations expressed to be assumed by the Borrower in the Finance Documents to which it is a party are legal, valid and binding obligations of the Borrower.

The Borrower's entry into and performance of the Finance Documents do not conflict with any law or regulation applicable to it, its constitutional documents (if any), or any agreement or instrument binding on it or any of its assets.

No Event of Default is continuing or would result from the advance of the Loan.

No litigation, arbitration or administrative proceeding is current or, to the Borrower's knowledge, threatened against the Borrower that, if adversely determined, could reasonably be expected to impair materially its ability to meet its payment obligations under the Finance Documents.

All factual information the Borrower has given the Lender in connection with the Loan was true and accurate in all material respects when given and was not misleading in any material respect because of an omission.

The Lender represents to the Borrower that it has the power to enter into and perform this agreement and has taken all necessary action to authorize its entry into and performance of it.

The Borrower makes each of its representations in this Representations clause on the date of this agreement and repeats it on the Drawdown Date and on each Interest Payment Date (if any), by reference to the facts and circumstances then existing.

Undertakings

The Borrower gives the undertakings in this Undertakings clause, which remain in force for as long as any amount is outstanding under this agreement.

The Borrower must supply to the Lender, promptly on request, such information about its financial condition and business as the Lender reasonably requests for the purpose of monitoring the Loan.

The Borrower must notify the Lender promptly after becoming aware of any Event of Default, giving details of it and of the steps (if any) being taken to remedy it.

The Borrower must obtain, comply with and maintain every authorization that the law requires to enable it to perform its obligations under the Finance Documents.

The Borrower must comply in all material respects with all laws to which it is subject, where failure to do so would materially impair its ability to perform its obligations under the Finance Documents.

The Borrower must ensure that its payment obligations under this agreement rank at least equally with the claims of all its other unsecured and unsubordinated creditors, except for obligations mandatorily preferred by law.

The Borrower must not create or allow to subsist any Security Interest over any of its assets, other than a Security Interest created under a Security Document, a lien arising by operation of law in the ordinary course of business, or a Security Interest that the Lender has approved in writing (approval not to be unreasonably withheld or delayed).

Regulatory Status

The Borrower represents that the Loan is obtained solely for business or commercial purposes and not for personal, family or household purposes.

The Lender confirms that it holds every license, authorization or registration that applicable law requires for it to make the Loan (including any state lender or finance lender license), or that none is required because it does not carry on the business of lending or because an exemption applies.

Events of Default

Each of the events or circumstances described in this Events of Default clause is an "Event of Default".

The Borrower does not pay on its due date any amount payable by it under a Finance Document, unless the failure is caused by an administrative or technical error or a disruption to payment systems and payment is made within the Payment Grace Period after its due date.

The Borrower does not comply with any other obligation under a Finance Document and, if the failure is capable of remedy, it is not remedied within the Remedy Period after the earlier of the Lender giving the Borrower written notice of it and the Borrower becoming aware of it.

Any representation or statement made or treated as repeated by the Borrower in a Finance Document is incorrect or misleading in any material respect when made or treated as repeated and, if the circumstances giving rise to it are capable of remedy, they are not remedied within the Remedy Period after the Lender gives the Borrower written notice of them.

Any Financial Indebtedness of the Borrower is not paid when due (after any applicable grace period), or is declared due and payable before its specified maturity because of an event of default (however described), unless the aggregate amount of Financial Indebtedness concerned is less than the Cross Default Threshold.

The Borrower is insolvent, is generally not paying its debts as they become due, admits in writing its inability to pay its debts generally, or makes a general assignment for the benefit of creditors.

The Borrower commences a voluntary case or other proceeding under the United States Bankruptcy Code or any other bankruptcy, insolvency, reorganization, receivership or similar law, or consents to the appointment of a receiver, trustee, custodian or similar official for itself or any substantial part of its assets; or an involuntary case or other proceeding of that kind is commenced against the Borrower and is not dismissed or stayed within 60 days.

Any attachment, sequestration, distress, execution or similar process affects any material part of the assets of the Borrower and is not discharged within 21 days.

It is or becomes unlawful for the Borrower to perform any of its payment obligations under a Finance Document, or the Borrower repudiates or rescinds, or shows an intention to repudiate or rescind, a Finance Document.

The Borrower suspends or ceases, or threatens to suspend or cease, to carry on all or substantially all of its business.

The Borrower dies or loses the legal capacity to manage his or her own affairs.

Any Security Document or Guarantee is not, or ceases to be, in full force and effect, or any person who has given a Guarantee does not pay any amount due under it when due (after any applicable grace period) or repudiates it.

Acceleration

At any time while an Event of Default is continuing, the Lender may, by written notice to the Borrower, do any one or more of the following: cancel any part of the Loan that has not been advanced; declare that all or part of the Loan, together with accrued interest and all other amounts accrued or outstanding under the Finance Documents, is immediately due and payable, whereupon it is immediately due and payable; and exercise any of its rights under the Finance Documents.

Costs and Expenses

Each party bears its own costs and expenses (including legal fees) incurred in negotiating, preparing and entering into the Finance Documents.

The Borrower must pay the Lender, within ten Business Days of demand, the reasonable costs and expenses (including legal fees) that the Lender properly incurs in enforcing or preserving its rights under the Finance Documents.

Set-off

The Borrower must make every payment under this agreement without set-off or counterclaim, except for an amount that the Lender has agreed in writing, or a court has finally determined, is owed by the Lender to the Borrower. While an Event of Default is continuing, the Lender may set off any matured obligation due from the Borrower under the Finance Documents against any matured obligation the Lender owes the Borrower, regardless of the place of payment or currency of either obligation, converting either obligation at a market rate of exchange for that purpose.

Assignment and Transfer

The Borrower may not assign or transfer any of its rights or obligations under this agreement without the Lender's prior written consent.

The Lender may assign or transfer any of its rights and obligations under this agreement with the Borrower's prior written consent, which may not be unreasonably withheld or delayed. No consent is needed for an assignment or transfer to an affiliate of the Lender or at any time while an Event of Default is continuing. The Lender must notify the Borrower of any assignment or transfer.

Notices

Any notice or other communication under this agreement must be in writing and delivered by hand, sent by certified or registered mail (return receipt requested) or courier, or sent by email, to the Lender at [TO BE CONFIRMED — Lender notice address and email] and to the Borrower at [TO BE CONFIRMED — Borrower notice address and email], or to any other address or email address that a party notifies to the other for this purpose on at least five Business Days' notice.

A notice is effective: if delivered by hand, on delivery; if sent by nationally recognized overnight courier, one Business Day after dispatch; if sent by certified or registered mail, three Business Days after mailing; and if sent by email, when sent, unless the sender receives a message that it was not delivered. A notice received after 5:00 p.m., or on a day that is not a Business Day, at the place of receipt is effective on the next Business Day.

General

The Finance Documents are the entire agreement between the parties about the Loan and supersede all earlier agreements, arrangements and understandings between them about it.

No amendment of this agreement is effective unless it is in writing and signed by or on behalf of each party.

No failure or delay by a party in exercising any right or remedy under this agreement operates as a waiver of it, and no single or partial exercise of a right or remedy prevents its further exercise. The rights and remedies under this agreement are in addition to those provided by law.

If any provision of this agreement is or becomes illegal, invalid or unenforceable in any respect under the law of any jurisdiction, that does not affect the legality, validity or enforceability of the remaining provisions, or of that provision under the law of any other jurisdiction.

This agreement is for the sole benefit of the parties and their respective successors and permitted assigns, and nothing in it confers any legal or equitable right, benefit or remedy on any other person.

This agreement may be signed in any number of counterparts and by electronic signature. Each counterpart is an original, and together the counterparts have the same effect as if each party had signed the same document.

Governing Law and Jurisdiction

This agreement, and any claim, controversy or dispute arising out of or relating to it or the Loan, whether in contract, tort or otherwise, is governed by the Governing Law.

Each party irrevocably submits to the exclusive jurisdiction of the Designated Courts in any action or proceeding arising out of or relating to this agreement, and waives any objection to venue in the Designated Courts and any claim that they are an inconvenient forum.

TO THE FULLEST EXTENT PERMITTED BY LAW, EACH PARTY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE LOAN.