Shareholder Loan Agreement

This Shareholder Loan Agreement ("Agreement") is entered into on [DATE] between [YOUR COMPANY NAME], hereinafter referred to as "Lender", and [Borrower's Name], hereinafter referred to as "Borrower".

1. Background:

The borrower needs financial assistance and has requested the Lender to provide a loan to support its operations. Lender, being a shareholder of Borrower, has agreed to extend a loan on the terms and conditions outlined in this Agreement.

2. Terms and Conditions:

2.1 Loan Amount:

The lender agrees to lend the Borrower the principal amount of five hundred thousand dollars ($500,000.00) (the "Loan Amount").

2.2 Interest Rate:

The Loan Amount shall accrue interest at the rate of 5% per annum, calculated on the outstanding balance and compounded quarterly (the "Interest Rate").

2.3 Repayment Terms:

a. Term: The Loan shall be repaid within five (5) years from the date of disbursement.

b. Installments: Borrower shall repay the Loan in sixty (60) equal monthly installments of principal and interest, commencing on May 1, 2050, and continuing on the same day of each successive month thereafter until the Loan is fully repaid.

c. Prepayment: Borrower reserves the right to prepay the Loan, in whole or in part, at any time without penalty.

3. Collateral

As security for the repayment of the Loan, the Borrower shall pledge 10,000 shares of its common stock, with a current market value of $10 per share, as collateral for the Loan. In the event of default, Lender shall have the right to enforce its security interest in the pledged shares.

4. Default:

4.1 Events of Default

The following events shall constitute an event of default under this Agreement:

Failure by Borrower to make any payment of principal or interest when due and such default continues for thirty (30) days after written notice from Lender.

Breach of any other covenant, representation, or warranty made by Borrower under this Agreement.

4.2 Remedies:

Upon the occurrence of an event of default, the Lender may, at its option, declare the Loan immediately due and payable and pursue any remedies available at law or in equity.

5. Miscellaneous

5.1 Governing Law:

This Agreement, in terms of both its governance and interpretation, shall be subject to and made by the laws of the State of California.

5.2 Entire Agreement:

This Agreement constitutes the entire agreement between the parties concerning the subject matter hereof and supersedes all prior and contemporaneous agreements and understandings, whether written or oral.

5.3 Amendment:

No amendment or modification of this Agreement shall be valid or binding unless made in writing and signed by both parties.

5.4 Severability:

If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.

5.5 Counterparts:

This Agreement may be executed in counterparts, each of which shall be deemed an original but all of which together shall constitute the same instrument.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

[YOUR COMPANY NAME] (Lender)

[DATE SIGNED]

[BORROWER'S NAME] (Borrower)

[DATE SIGNED]