Shareholder Loans and Guaranties Clause Samples

Shareholder Loans and Guaranties. In lieu of bank or other institutional financing, the Shareholders may agree, but shall not be required, to lend funds to the Company (and/or the US JVCo) on terms to be mutually agreed upon. No Shareholder will be obligated to guaranty any bank or other indebtedness of the Company or the US JVCo. Notwithstanding the foregoing, if the Class B Shareholder does not make any additional capital contribution required by a Capital Call Notice (as defined in and delivered in accordance with the provisions below), OCP may elect, in lieu of making all or some of its own and LGL’s additional capital contributions pursuant to such Capital Call Notice to loan some or all of the amount of the additional capital contributions required under such Capital Call Notice to the Company at an interest rate per year equal to one year USD interest rate (without margin) as indicated by Reuters Libor O1 Screen (British Bankers Association) plus the margin of three percent (3%).