Common use of Interest of the Loan Clause in Contracts

Interest of the Loan. When Borrower transfers the Borrower’s Equity Interest in the Company to Lender or Lender’s designated persons, in the event the transfer price is equal to or lower than the principal of the Loan under this Agreement, the Loan under this Agreement shall be deemed as an interest-free loan. In such a circumstance, Borrower does not need to pay Lender the interest of the Loan. But in the event the transfer price is higher than the principal of the Loan under this Agreement, the difference shall be deemed as the interest of the Loan under this Agreement and shall be paid by Borrower to Lender.