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_________________________________ Witnessed by: _________________________ Full Name of Witness: ________________________ Signature: ________________________________ Loan Agreement 7-A 5 nt 7-A 4 Executed as a deed. Dated: _________________________. Signed for Company: _________________________. Title: _________________________________ Borrower/s: _________________________. Title:ment is governed by the law of the jurisdiction in which the Company was incorporated. Each party submits to the jurisdiction of the courts of that jurisdiction. [Signature Page Follows] Loan Agreemeunenforceable, it will be severed from it and the remaining provisions shall nevertheless continue in full force and effect without being impaired or invalidated in any way. f. Jurisdiction This Agreethe Agreement. d. Variation The parties can only vary this agreement in writing. e. Severability If any provision of this Agreement is held by a Court of competent jurisdiction to be invalid, void or he failure of Company at any time to insist on performance of any provision of this Agreement is not a waiver of its right at any later time to insist on performance of that or any other provision of re than one person, the obligations imposed on a borrower by this document are imposed on those persons individually as well as jointly. A breach by any of them is a breach by all of them. c. Waiver The Company may inform the Borrower in writing that Borrower is required to make payment under this agreement in a specified way. b. Joint and individual liability Where the Borrower is comprised of mot 2001. - An event occurs that is analogous or having a substantially similar effect to any of the events specified in this clause occurs. 3. MISCELLENEOUS Loan Agreement 7-A 3 a. Method of payment Ts appointed. - The Borrower is or makes a statement from which it may be reasonably deduced by the Company that the party is the subject of an event described in section 459C(2) of the Corporations Acment of all or a class of its debts. - A receiver, receiver and manager, administrator, controller or similar officer of any of the assets or the whole or any part of the undertaking of the Borrower iis taken to be, unable to pay its debts (except as a result of a failure to pay a debt or claim that is the subject of a dispute in good faith) or stops or suspends or threatens to stop or suspend pay or any class of them, except for the purposes of a solvent reconstruction or amalgamation previously approved by the Company. - The Borrower is, or states that it is, or under applicable legislation l liquidator of the Borrower. - An order is made or a resolution is passed for the Borrower to enter into any arrangement, compromise or composition with or assignment for the benefit of its creditors a resolution to appoint an administrator or an administrator of the Borrower is appointed. - An order is made that the Borrower be wound-up. - An order is made appointing a liquidator or a provisionaower takes any step to obtain protection under legislation against his creditors, or is granted that protection. - The Borrower commits an act of bankruptcy or becomes insolvent. - The Borrower passescurity interest becomes enforceable or is enforced against the Borrower. - A distress, attachment or other form of execution is levied or enforced against the Borrower for more than $1,000. - The Borrompany. - The Borrower, being a Company, disposes of its assets, or threatens to do so, except for the purpose of a solvent reconstruction or amalgamation that has been approved by the Company. - A sewer ceases to conduct or suspends the conduct of a major part of its business, or threatens to do so, except for the purpose of a solvent reconstruction or amalgamation that has been approved by the Cs. - A mortgagee or person with a similar legal interest in any of the Borrower's assets takes possession of them or takes a step in that direction, or exercises a power of sale over them. - The BorroBorrower assigns any of his property for the benefit of creditors or any class of them. - The Borrower's interest in or under this Agreement is attached or is taken in execution under any legal procesreement, and any unpaid interest that has accrued, as payable automatically and immediately if any of the following happens: The Borrower fails to pay an amount in accordance with this Agreement. The provides under it. This includes stamp duty. 2. DEFAULT a. Immediate Payment of Loan and Interest Loan Agreement 7-A 2 The Company may elect to treat all loans made to the Borrower under this Agperformance of his obligations under this Agreement. h. Costs The Borrower must pay the Company the costs it reasonably incurs in connection with this Agreement and any security the Borrower offers or as having been added to the amount of the loan as from the date it became due. g. Company may require security The Company may at any time require the Borrower to provide reasonable security for the Borrower must be repaid in order for it not to be treated as dividend. f. Capitalising interest The Company may capitalise any unpaid interest that has become due. That interest is then to be treated, before that date. If this Loan is unsecured, the Borrower should repay on or before such a date as provided under Division 7 A of the Income Tax Assessment Act 1936 upon which an unsecured loan to a on it, no later than 7 years from the date the loan is made or is deemed by the Income Tax Assessment Act 1936 to have been made. The Borrower may repay any part of a loan, and any interest on a loanas defined in section 109E(5) of the Income Tax Assessment Act 1936. e. Repayment of loan and interest The Borrower must repay each loan to the Company, in addition to all interest that remains unpaidax Assessment Act 1936. d. Minimum annual repayment In relation to each amalgamated loan, the Borrower must make annual repayments by 30 June each year that are at least the minimum yearly repayments rest on loans Effective from 1 July after a loan is made by the Company, the Borrower must pay interest on the outstanding amount of that loan at the Benchmark Interest Rate as defined in the Income Tre loans to the Borrower. This Agreement applies to all loans made by the Company to the borrower, except loans to which the Company and the Borrower agree that this Agreement is not to apply. c. Intees that the Company has lent to Borrower the sum of Dollars_______________($__) (the "Loan") on ________[Mention date]. Loan Agreement 7-A 1 b. Loan at Company's discretion Company may make one or mo of money. · it includes any of these that is deemed to have been made under the Income Tax Assessment Act 1936. It has been agreed as follows: 1. THE LOAN: a. Acknowledgement The Borrower acknowledgion · a payment of an amount for or on behalf of or at the request of the borrower where there is an express or implied obligation to repay the amount · a transaction which in substance effects a loanAssociate means what it means in Division 7A of the Income Tax Assessment Act 1936. Loan means any of the following: · an advance of money · a provision of credit or of some other financial accommodatwer from the Company. DEFINITIONS: Amalgamated loan means the total of all the loans made under this agreement that are made in a particular year of income and are not repaid by the end of that year. s to Borrower by way of loan and the Borrowers are persons associated with the Company. B. Both parties wish to formally record the terms and conditions of all future and past borrowings made by Borro__________________, _______________[Mention Occupation/Designation] (the "Borrower"), who is a shareholder or associate of a shareholder, of the Company. RECITALS: A. Company has and may advance moneyLtd. , a company incorporated and existing in _____________________[Mention State] having a registered office at ___________________ [Mention Address] (the "Company") And _________________________of _ "Terms and Conditions" found at findlegalforms.com. 'Division 7A' Loan Agreement This Loan Agreement ("Agreement") is made effective on _____________("Effective Date") Between _______________ Pty. EORY OF LIABILITY, WHETHER IN CONTRACT, STRICT LIABILITY, OR TORT (INCLUDING NEGLIGENCE OR OTHERWISE) ARISING IN ANY WAY OUT OF THE USE OF THESE MATERIALS. The use of these materials is subject to theIAL, EXEMPLARY, OR CONSEQUENTIAL DAMAGES (INCLUDING, BUT NOT LIMITED TO, PROCUREMENT OF SUBSTITUTE GOODS OR SERVICES; LOSS OF USE, DATA OR PROFITS; OR BUSINESS INTERRUPTION) HOWEVER USED AND ON ANY THN RISK. IN NO EVENT WILL: I) FLF, ITS AGENTS, PARTNERS, OR AFFILIATES; OR II) THE PROVIDERS, AUTHORS OR PUBLISHERS OF ITS MATERIALS, BE RESPONSIBLE OR LIABLE FOR ANY DIRECT, INDIRECT, INCIDENTAL, SPECUT LIABILITY." FLF DOES NOT GIVE ANY EXPRESS OR IMPLIED WARRANTIES OF MERCHANTABILITY, SUITABILITY OR COMPLETENESS FOR ANY OF THE MATERIALS FOR YOUR PARTICULAR NEEDS. THE MATERIALS ARE USED AT YOUR OWwyer/solicitor should be consulted for all serious legal matters. No Lawyer-Client / Solicitor-Client relationship is created by use of these materials. THESE MATERIALS ARE PROVIDED "AS-IS" and "WITHOndLegalForms, Inc. ("FLF") is not a law firm and does not provide legal advice. The use of these materials is not a substitute for legal advice. Only a lawyer/solicitor can provide legal advice. A larmination 2008/19 which set the benchmark interest rate for the income year commencing on 1 July 2008 at 9.45 percent for the purposes of Section 109N (see ATO website www.ato.gov.au). DISCLAIMER: Fihat the loan may not be deemed to be a dividend. Any amendment made to this document may mean that the loan is deemed to be a dividend. 2. The Australian Taxation Office (ATO) has issued Taxation Detewed by a shareholder or shareholder's associate to the Company that the Company forgives (section 109F). NOTE: 1. This loan Agreement is drafted to ensure compliance with the relevant provisions so tmpany: · · · money paid by the Company to a shareholder or shareholder's associate (section 109C); lent by the Company to a shareholder or shareholder's associate (sections 109D and 109E); and debts of profits to shareholders or shareholders' associates in the form of payments, loans and debts forgiven. Division 7A treats the three following types of distributions as dividends paid by a private CoA of the Income Tax Assessment Act 1936, which sets out strict provisions relating to such loans and has laid down measures to ensure that private companies can no longer make tax free distributions o who is a natural person and that person is a director, shareholder or associate of a director or shareholder of the Company. This loan Agreement is made pursuant to Section 109N (1) (a) in Division 7'DIVISION 7A' LOAN AGREEMENT Section 109N of the Income Tax Assessment Act 1936 (Cth) GENERAL DESCRIPTION: A Division 7A Loan Agreement is to be used where the Company is lending to a single borrower