Loan Contract between KINGS ROAD ENTERTAINMENT EUROPE GmbH Rosenheimerstr. 8 D-81669 Munich, Germany - hereafter “Borrower” and KINGS ROAD ENTERTAINMENT INC Beverly Hills, CA 90210, USA - hereafter „Lender“ Granting of a Loan
Loan
Contract
between
KINGS
ROAD ENTERTAINMENT EUROPE GmbH
Xxxxxxxxxxxxxx.
0
X-00000
Xxxxxx, Xxxxxxx
-
hereafter “Borrower”
and
000
X. Xxxxxx Xxxxx
Xxxxxxx
Xxxxx, XX 00000, XXX
-
hereafter „Lender“
§1
Granting
of a Loan
|
1.1
|
The
Lender herewith lends to the Borrower a loan of up to US$
70,000 (Seventy-thousand)
|
|
1.2
|
The
loan will be paid out to Borrower in instalments and subject to submitted
budgets, such budgets subject to approval by Lender.
|
|
1.3
|
The
Borrower must submit its budget for approval a minimum of 30 days
prior to
loan requirement. The Lender will approve or disapprove of the budget
and
loan request within 10 days and inform the Borrower
accordingly.
|
§2
Interest
/ Exchange Risk
|
2.1
|
The
paid out amounts of the loan will bear interest initially at 8%
p.a.
|
|
2.2
|
The
interest will be calculated and accrued on a 365/365 basis and added
to
the
principle
annually at the end of each calendar year.
|
|
2.3
|
The
exchange rate risk (gain or loss) will be borne solely by the
Borrower.
|
§3
Repayment
|
3.1
|
The loan has a preliminary term until December 31st 2010. | |
|
3.2
|
The
loan is to be repaid in one amount at the end of the term unless
the
subordinated character of the loan does not permit this, in which
case the
parties may extend the term by mutual consent.
|
|
|
3.3
|
Pre-maturity
repayment amounts (in total or in instalments of $5,000) of the loan
are
possible at any time without pre-maturity compensation. The Borrower
is
not entitled to demand the re-lending of previously repaid loan
amounts.
|
|
§4
Subordination
The
Loan
is unsecured. The loan is subordinated. Repayment of this loan ranks below
all
other debt of the Borrower.
§5
Effective
Date, Termination
|
5.1
|
This
contract becomes valid upon signing.
|
|
|
5.2
|
The Lender is under no obligation to accept budget submissions by the Borrower. | |
§6
Escape
Clause
Should
certain provisions in this contract be or become invalid or impracticable,
then
the validity of the remaining provisions will not be affected. The invalid
or
impracticable provision will be replaced by a valid or practicable provision
that most closely represents the original commercial intent of the invalid
or
impracticable provision. The same applies to supplemental interpretations of
the
contract.
| Los Angeles/Munich | ||
| Signed by | Signed by | |
| Lender | Borrower |
