Shareholder Loan Agreement Template Uk

SHAREHOLDER LOAN AGREEMENT

This Shareholder Loan Agreement (the "Agreement") is entered into as of [Date] (the "Effective Date") by and between:

[Lender Name], a company incorporated in [Jurisdiction] with company number [Number] and registered office at [Address] (the "Lender"); and

[Company Name], a company incorporated in [Jurisdiction] with company number [Number] and registered office at [Address] (the "Borrower").

RECITALS

(A) The Lender is a shareholder of the Borrower holding [Number]% of the issued share capital. (B) The Borrower requires working capital for its business operations and has requested a loan from the Lender. (C) The Lender has agreed to provide such loan to the Borrower on the terms and subject to the conditions set out in this Agreement.

1. OPERATIONAL DEFINITIONS

1.1 "Business Day" means a day (other than a Saturday or Sunday) on which banks are open for general business in London, UK. 1.2 "Event of Default" means any event or circumstance specified in Clause 4. 1.3 "Facility" means the principal amount of [Currency and Amount] made available to the Borrower under this Agreement. 1.4 "Interest Rate" means [Percentage]% per annum, calculated on a daily basis. 1.5 "Maturity Date" means [Date], or such earlier date as the Facility may become repayable in accordance with this Agreement. 1.6 "Repayment Date" means the date upon which the Borrower is obliged to repay the Facility.

2. SUBSTANTIVE TERMS & OBLIGATIONS

2.1 Facility: The Lender agrees to lend the Facility to the Borrower on the Effective Date. The funds shall be transferred via electronic bank transfer to the account designated by the Borrower. 2.2 Interest: The Borrower shall pay interest on the outstanding principal of the Facility at the Interest Rate. Interest shall accrue from the Effective Date until the date of actual repayment. 2.3 Repayment: The Borrower shall repay the total outstanding principal and accrued interest on the Maturity Date, unless repaid earlier at the Borrower’s discretion without penalty. 2.4 Representations: The Borrower represents and warrants that it has the full legal power and authority to enter into this Agreement and that the execution of this Agreement constitutes a binding obligation. 2.5 Use of Proceeds: The Borrower shall use the Facility exclusively for [Purpose, e.g., general working capital requirements].

3. DEFAULT, TERMINATION, AND REMEDIES

3.1 Events of Default: Each of the following constitutes an Event of Default: (a) Failure to pay any amount due under this Agreement within 5 Business Days of the due date; (b) The Borrower becomes insolvent, enters into liquidation, or has an administrator appointed; (c) A material breach of any obligation under this Agreement that remains unremedied for 30 Business Days following written notice from the Lender. 3.2 Acceleration: Upon the occurrence of an Event of Default, the Lender may, by notice to the Borrower, declare the total outstanding amount of the Facility, plus all accrued interest, to be immediately due and payable. 3.3 Remedies: The Lender’s rights under this clause are cumulative and not exclusive of any rights provided by law.

4. BOILERPLATE LEGAL PROVISIONS

4.1 Severability: If any provision of this Agreement is held to be invalid or unenforceable, such provision shall be severed, and the remaining provisions shall continue in full force and effect. 4.2 Entire Agreement: This Agreement constitutes the entire agreement between the parties and supersedes all prior discussions or agreements regarding the subject matter herein. 4.3 Force Majeure: Neither party shall be liable for any failure to perform its obligations where such failure results from a cause beyond its reasonable control, provided that the affected party notifies the other party as soon as reasonably practicable. 4.4 Governing Law: This Agreement and any dispute or claim arising out of it shall be governed by and construed in accordance with the laws of [England and Wales/Scotland/Northern Ireland]. 4.5 Dispute Resolution: Any dispute arising out of or in connection with this Agreement shall be subject to the exclusive jurisdiction of the courts of [Jurisdiction].

5. FORMAL EXECUTION BLOCK

IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date.

For and on behalf of the LENDER:

Signature: ___________________________ Name: [Name of Authorised Signatory] Title: [Title] Date: [Date]

For and on behalf of the BORROWER:

Signature: ___________________________ Name: [Name of Authorised Signatory] Title: [Title] Date: [Date]