This shareholder loan agreement template has 4 pages and is a MS Word file type listed under our legal agreements documents.
Sample of our shareholder loan agreement template:
SHAREHOLDER LOAN AGREEMENT This Shareholder Loan Agreement (the "Agreement") is effective as of [DATE], BETWEEN: [SHAREHOLDER NAME] (the "Shareholder"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE] with its head office located at: [COMPLETE ADDRESS] AND: [COMPANY NAME] (the "Borrower"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE] with its head office located at: [COMPLETE ADDRESS] WHEREAS, the Shareholder desires to loan funds to the Borrower for the Borrower's operations; WHEREAS, the Parties wish to memorialize the terms and conditions governing the Loan; WHEREAS, for the purposes of this Agreement, the Shareholder is willing (i) to be deemed to have accepted the Borrower's assertion that no Existing Default has occurred, (ii) to be deemed to have withdrawn the Default Notice, retroactively, as of [SPECIFY DATE], and (iii) to accept the Borrower's proposal so to restructure the Loan and other Secured Obligations, all on the terms and conditions provided herein; WHEREAS, both the Parties affirm to understand all of the provisions contained in this Agreement, and in case either Party requires clarification as to one or more of the provisions contained herein, either Party has requested clarification or otherwise sought guidance. NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS: LOAN AND INTEREST RATE The Shareholder shall loan a total of [SPECIFY THE AMOUNT] to the Borrower to finance the operations of the Borrower's business (the "Loan"). The Loan shall bear interest at the rate of [SPECIFY RATE] % per annum, compounded annually. The Parties shall calculate the interest based on a full year (365 days) consisting of twelve months. Interest will accrue until repayment of the Loan. The amount owed to the Shareholder shall be calculated as the Loan plus accrued interest thereon (the "Loan Amount"). If the Borrower fails to pay any sum payable under this Agreement when due, the Borrower shall from time to time on demand pay interest on such sum from and including the due date to the date of actual payment (after as well as before judgment) at a per annum interest rate equal to [SPECIFY RATE] % above the interest rate. REPAYMENT The Loan Amount shall be due and payable on [SPECIFY DATE] (the "Maturity Date"), provided that the Borrower has enough cash flow to repay the Loan Amount without adversely affecting its then-current business activities. In the event the repayment of the Loan would adversely affect the then-current business activities of the Borrower, the Maturity Date shall be postponed until the Borrower has enough cash flow to repay the Loan Amount without adversely affecting its then-current business activities. At any time, the Borrower, with one week's prior written notice, may repay the entire Loan Amount to the Shareholder without penalty. OBLIGATIONS OF THE BORROWER The Borrower hereby agrees neither to invest in any new business in any other country, nor shall it pay dividends to any other shareholders of the Company unless and until the entire Loan Amount, along with the interest, has been repaid by it to the Shareholder. DEFAULT If any of the following events of default occur, this Agreement and any other obligations of the Borrower to the Shareholder shall become due immediately, without demand or notice. Failure of the Borrower to pay the principal and any accrued interest when due. The filing of bankruptcy proceedings involving the Borrower as a debtor. The application for the appointment of a receiver for the Borrower. The making of a general assignment for the benefit of the Borrower's creditors. The insolvency of the Borrower. A misrepresentation by the Borrower to the Shareholder for the purpose of obtaining or extending credit.
