Common use of Shareholder Loan Clause in Contracts

Shareholder Loan. The Company received advances from a shareholder in order to help fund operations. These amounts are secured by the intellectual property of the Company, have no repayment terms, and bear interest at 5% per annum of which both the lender, and the Company have agreed to waive the interest. Balance, receivable as at June 30, 2015, included in "Due from Shareholder" (73,252 ) Shareholder advances during the year 487,411 Repayments during the year (52,505 ) Balance payable as at June 30, 2016 $ 361,654 Shareholder advances during the period 342,026 Balance payable as at June 30, 2017 $ 703,680 Shareholder advances during the period 20,707 Balance payable as at June 30, 2018 $ 724,397 Shareholder advances during the period — Balance payable as at June 30, 2019 $ 724,387 HYDRO POWER TECHNOLOGIES INC. NOTES TO THE FINANCIAL STATEMENTS (Expressed in Canadian dollars)

Shareholder Loan. The Company received advances from a shareholder in order to help fund operations. These amounts are secured by the intellectual property of the Company, have no repayment terms, and bear interest at 5% per annum of which both the lender, and the Company have agreed to waive the interest. Balance, receivable as at June 30, 2015, included in "Due from Shareholder" (73,252 ) Shareholder advances during the year 487,411 Repayments during the year (52,505 ) Balance payable as at June 30, 2016 $ 361,654 Shareholder advances during the period 342,026 Balance payable as at June 30, 2017 $ 703,680 Shareholder advances during the period 20,707 Balance payable as at June 30, 2018 $ 724,397 Shareholder advances during the period — Balance payable as at June 30, 2019 $ 724,387 HYDRO POWER TECHNOLOGIES INC. NOTES TO THE FINANCIAL STATEMENTS (Expressed in Canadian dollars)