Exhibit 10.12
TERM LOAN FACILITY AGREEMENT
This Term Loan Facility Agreement (this "Agreement''_ ) is made and entered into as of the date of execution by both Parties (the "Effective Date"), by and between:
| · | Vienna Capital Partners, LLC, a Delaware limited liability company ("Lender"); and | |
| · | Davion Healthcare PLC, a public limited company incorporated under the laws of the Republic of Ireland ("Borrower"). |
The Lender and Borrower are collectively referred to as the"Parties".
RECITALS
WHEREAS, the Borrower desires access to a committed loan facility for working capital and general corporate purposes; and
WHEREAS, the Lender has agreed to make available such a facility on the terms set forth herein;
NOW, THEREFORE, the Parties agree as follows:
| 1. | FACILITY |
| 1.1 | Facility Amount |
The Lender irrevocably agrees to make available to the Borrower a committed term loan facility in an aggregate principal amount of up to:
US$2,000,000 (the "Facility" or "Principal Amount")
| 1.2 | Availability Period |
The "Availability Period" shall mean the period commencing on:
the first day on which the Borrower's ordinary shares are admitted to trading on the NASDAQ Stock Market and commence trading (the "Listing Date"),
and ending on the date that is:
three hundred and sixty-five (365) days thereafter
| 1 |
| 1.3 | Drawdowns |
(a) The Borrower may, at its sole and absolute discretion, request one or more drawdowns (each a "Drawdown") during the Availability Period.
(b) Each drawdown request shall be made by written notice (a "Drawdown Notice") specifying:
| · | the amount to be drawn (each a "Drawdown Amount"), and | |
| · | the requested funding date. |
(c) Each Drawdown Amount shall not be less than Two Hundred and Fifty Thousand Dollars (US$250,000).
(d) The aggregate principal amount of all Drawdowns shall not exceed US$2,000,000 (the "Maximum Facility Amount").
(e) The Lender shall fund each Drawdown Amount within three (3) Business Days of receipt of a valid Drawdown Notice.
(f) The Borrower shall have no obligation to draw down any portion of the Facility.
| 1.4 | Funding Date |
The "Funding Date" shall mean, in respect of each Drawdown, the date on which the relevant Drawdown Amount is funded by the Lender.
| 1.5 | Use of Proceeds |
The Borrower shall use the proceeds of the Facility for:
| · | working capital | |
| · | general corporate purposes |
| 1.6 | Origination Fee |
Upon execution of this Agreement, the Borrower shall pay to the Lender a non-refundable fee equal to:
1.0% of the Maximum Facility Amount, such sum being $20,000
| 2 |
| 2. | INTEREST AND REPAYMENT |
| 2.1 | Interest |
Interest shall accrue on each Drawdown Amount from its respective Funding Date at:
15.0% per annum
calculated on a 365-day year basis.
| 2.2 | Maturity |
Each Drawdown Amount, together with accrued interest, shall be due and payable:
fifteen (15) months from its respective Funding Date (the "Maturity Date")
| 2.3 | Prepayment |
The Borrower may prepay:
| · | all or part of any outstanding amount | |
| · | at any time | |
| · | without penalty |
Payments shall be applied:
| 1. | first to accrued interest | |
| 2. | then to principal |
| 3 |
| 3. | REPRESENTATIONS AND WARRANTIES |
| 3.1 | Borrower |
The Borrower represents and warrants that:
| · | it has full corporate authority to enter into this Agreement | |
| · | this Agreement constitutes a valid and binding obligation | |
| · | execution does not conflict with any law or agreement |
| 3.2 | Lender |
The Lender represents and warrants that:
| · | it has sufficient financial and business experience | |
| · | it is capable of evaluating the risks | |
| · | it has conducted its own due diligence |
| 4. | EVENTS OF DEFAULT |
Each of the following shall constitute an Event of Default:
| · | failure to pay principal or interest when due | |
| · | insolvency, bankruptcy or liquidation proceedings | |
| · | material breach of this Agreement |
| 4 |
| 4.1 | Remedies |
Upon an Event of Default:
| · | all outstanding amounts shall become immediately due and payable | |
| · | interest shall increase to: |
the lesser of (i) 22.0% per annum or (ii) the maximum permitted by law
| · | the Lender may exercise all available legal remedies |
| 5. | GENERAL PROVISIONS |
| 5.1 | No Obligation to Draw |
The Borrower shall have no obligation to utilise the Facility.
| 5.2 | Assignment |
| · | Borrower: not assignable without prior written consent of the Lender | |
| · | Lender: may assign upon written notice to the Borrower |
| 5.3 | Entire Agreement |
This Agreement constitutes the entire agreement between the Parties.
| 5.4 | Amendments |
Any amendment must be in writing and signed by both Parties.
| 5 |
| 5.5 | Governing Law |
This Agreement shall be governed by:
the laws of the State of New York
| 5.6 | Notices |
All notices shall be in writing and delivered by:
| · | ||
| · | courier | |
| · | registered mail |
| 6 |
SIGNATURES
LENDER
Vienna Capital Partners LLC
By: /s/ Vincent DeFilippo
Name: Vincent DeFilippo
Title: CEO
BORROWER
Davion Healthcare Plc
By: /s/ Jack Kaye
Name: Jack Kaye
Title: Chief Executive Officer
| 7 |
PROMISSORY NOTE EXAMPLE
Principal Amount: Up to US$2,000,000
Issuance Date: [·]
FOR VALUE RECEIVED, Davion Healthcare PLC ("Borrower") promises to pay to Vienna Capital Partners, LLC ("Lender") the amounts drawn under the Facility together with interest.
| 1. | DRAW DOWNS |
The Principal Amount may be advanced in multiple Drawdowns pursuant to the Loan Agreement.
Each Drawdown:
| · | shall not be less than US$250,000 | |
| · | shall form part of the aggregate Principal Amount | |
| · | shall not cause the total outstanding principal to exceed US$2,000,000 |
| 2. | INTEREST |
Interest shall accrue on each Drawdown Amount from its respective Funding Date at:
15.0% per annum
| 3. | MATURITY |
Each Drawdown Amount, together with accrued interest, shall be due:
fifteen (15) months from its respective Funding Date
| 4. | PREPAYMENT |
The Borrower may prepay:
| · | in whole or in part | |
| · | at any time | |
| · | without penalty |
| 8 |
| 5. | EVENTS OF DEFAULT |
Events include:
| · | non-payment | |
| · | insolvency | |
| · | Material breach |
| 6. | DEFAULT INTEREST |
Upon default:
interest shall increase to the lesser of:
| (i) | 22.0% per annum, or |
| (ii) | the maximum permitted by law |
| 7. | GOVERNING LAW |
This Note shall be governed by:
New York law
SIGNATURE
DAVION HEALTHCARE PLC
| 9 |