EXHIBIT 10.1
PEOPLEPC EUROPE NV ("the Lender")
Registered Office, 0000 XX Xxxxxxxxx,
xxx Xxxxxxxxxxx, Xx Xxxxxxxxx 0
The Directors
PEOPLEPC INC
("the Borrower")
000 Xxxx Xxxxxx, 00xx Xxxxx
Xxx Xxxxxxxxx, XX 00000
November 9, 2001
Dear Sirs:
Loan Facility
We refer to the payment of USD 2,000,000 ("the Loan") made to you on November
9, 2001. This agreement sets out the terms and conditions upon which we, as
Lender, have agreed to make the Loan to you and you, as Borrower, have agreed to
receive the Loan.
1 Drawing
The Borrower confirms that it has drawndown and received the entire
amount of the Loan on November 9, 2001, ("the Drawdown Date") .
2 Interest
Interest shall accrue on the Loan during each Interest Period at the
rate which is 1.1275% per annum above LIBOR in respect of such
Interest Period. Accrued interest shall be payable by the Borrower to
the Lender on the date of repayment of the Loan.
"Interest Period" means a period of one month. The first Interest
Period shall commence on the relevant Drawdown Date in respect of each
payment and each subsequent Interest Period shall commence upon expiry
of the previous Interest Period.
"LIBOR", in respect of any Interest Period, means the offered rate for
one month United States dollar deposits in the London Interbank Market
at or around 11.00 a.m. on the first day of such Interest Period,
derived from such source as the Lender may select. If at any time
LIBOR cannot be ascertained a substitute rate of interest as
determined by the Lender shall apply.
Interest shall accrue from day to day and be calculated on the basis
of actual days elapsed and a 365 day year.
3 Repayment
The Loan is repayable, together with interest accrued thereon, upon
demand made by the Lender to the Borrower.
4 Payments
If any payment would otherwise be due on a day which is not a business
day it shall instead be due on the next following business day. In
this letter "business day" means a day (other than a Saturday or a
Sunday) on which banks are open for business in London. All payments
shall be made in full without set-off or counterclaim.
5 Default Interest
If any payment is not made in full on the due date the unpaid amount
shall bear interest (after as well as before any judgment) at the rate
which is one per cent. per annum above the rate referred to in
paragraph 2.
6 Non-Waiver
The Lender may grant extra time to the Borrower or any other person
for the payment of any monies due hereunder or may reach any other
compromise with the Borrower or any other person without affecting the
Borrower's liability hereunder.
7 Notices
Any demand or notice to be given under this letter shall be in writing
and sent by first class prepaid letter addressed as follows:-
(a) if to the Lender to its registered office stated above;
(b) if to the Borrower to its registered office stated above.
Any such notice or demand shall be deemed to have been served on the
party to whom it is addressed on the first business day after
despatch.
8 Law and Jurisdiction
This letter shall be governed by, and construed in accordance with,
the internal laws the State of California, without regard to
principles of conflict of laws.
PEOPLEPC EUROPE N.V.
By: PEOPLEPC INC., a Delaware corporation, its sole director
By: /s/: Xxxxxxxx Xxxxx
---------------------------------
Xxxxxxxx Xxxxx
Chairman and CEO
Acceptance
We confirm our acceptance of and agreement to the terms of this letter.
PEOPLEPC INC.
By: /s/: Xxxxxxx Xxxxxxxx
---------------------------------
Xxxxxxx Xxxxxxxx
Senior Vice President and General Counsel
