Mandatory Loan definition
Examples of Mandatory Loan in a sentence
Upon the Registration Effective Date, LegatumX shall repay the Mandatory Loan if and in such amount as the Mandatory Loan shall remain outstanding and unpaid, and the provisions of Section 2.c. above automatically shall apply with respect to the sale of BII Stock by LegatumX or an affiliate.
The Mandatory Loan shall be secured by a first lien priority security interest in all of the BII Stock and shall bear no interest.
The Mandatory Loan shall become immediately due and payable upon the earlier to occur of (i) the date the Registration Statement is declared effective by the SEC (the “Registration Effective Date”) or (ii) the sale or issuance by LegatumX of New Securities (as defined in Section 8 below) for cash in a single transaction or series of transaction resulting in gross proceeds equal to or in excess of Five Million (USD $5,000,000) Dollars (a “Qualified Capital Raise”).
In the event that a Qualified Capital Raise shall precede and occur prior to the Registration Effective Date, LegatumX repay the full amount of the Mandatory Loan from the proceeds of the Qualified Capital Raise.
If, and when the Investor Member is entitled to a Covered Tax Year Deficiency Payment pursuant to Section 4.2B(i), the Administrative Member shall either (i) make a Mandatory Loan to the Company in the amount needed to enable the Company to distribute the Covered Tax Year Deficiency Payment and shall cause the Company to immediately make such distribution or, alternatively, (ii) pay directly to the Investor Member the amount (on an After-Tax Basis) needed for the Covered Tax Year Deficiency Payment.
The Company will provide each Lender at least ten days notice of the date of the Closing of a Mandatory Loan (which date shall be binding on all parties), and the amount of Lender’s funding Commitment (based on the Lender’s commitment percentage set forth on Schedule 1.3, Schedule 1.3A and Schedule 1.3B).
In order to enforce the rights of the Company under this Section 6.3, but without prejudice to any other remedy that may be available to the Company in the event of a Mandatory Loan Obligation Default, the Company shall have all the rights and remedies available to a secured party under the Uniform Commercial Code as adopted in the State of Delaware.
On the date of this Agreement, and WEEKLY during the term of the Line of Credit, the Borrower shall submit to Lender a Borrowing Certificate in the form of EXHIBIT I attached hereto showing the computation of the Line of Credit Borrowing Base as of the close of business on the last day of the immediately preceding WEEK and will accompany such certificate with such payment, if any, as may be necessary to comply with the provisions of the Mandatory Loan Repayments paragraph.
The Managing Director shall send a Notice (a "Mandatory Loan Notice") to each Stockholder identifying the Expenses which will be paid with the proceeds of such Mandatory Loan and stating the due date for each such Expense.
The Company shall have and is hereby granted by each Stockholder a security interest in such Stockholder's Shares and in any Mandatory Loan Notes and Advancing Stockholder Loan Notes issued by the Company to such Stockholder.