Loan Facility Term Sheet

I. Introduction

This document outlines the terms and conditions under which [Lender Name] ("the Lender") agrees to provide a line of credit to [Borrower Name] ("the Borrower"). It serves as a framework for the final loan agreement.

This term sheet is designed to present the key elements of the credit facility, including loan amount, interest rate, repayment schedule, and other pertinent terms. It is intended to provide all parties with a clear understanding of the expectations and responsibilities involved in this financial arrangement.

II. Commitment Details

The following commitment by the Lender is outlined below:

Principal Amount: The total commitment from the Lender will not exceed [Maximum Loan Amount].
Type of Facility: Revolving line of credit.
Availability Period: This facility will be available from [Start Date] to [End Date].

III. Terms of the Loan

The specific terms applicable to this line of credit are as follows:

Interest Rate: Variable rate based on [Interest Rate Index], plus a margin of [Margin] percentage points.
Repayment Terms: Interest-only payments will be due quarterly with the principal due in full at maturity on [Maturity Date].
Use of Funds: The proceeds from this line of credit can be used for [specific purposes].
Prepayment: The Borrower may prepay the loan at any time without penalty.

IV. Covenants

The Borrower agrees to adhere to certain covenants during the term of the loan:

Maintain a minimum cash balance of [Minimum Cash Balance].
Provide quarterly financial statements to the Lender within [Number] days of quarter-end.
Limit annual capital expenditures to no more than [CapEx Limit].
Ensure that the debt to equity ratio does not exceed [Debt to Equity Ratio].

V. Warranties and Representations

The Borrower warranties that:

All financial information provided to the Lender is true, accurate, and complete in all material respects.
No material lawsuits or claims are pending against the Borrower that could adversely affect its financial condition.
The Borrower is duly organized and validly existing under the laws of [Jurisdiction].

VI. Conditions Precedent to Funding

Funding of the loan is subject to the following conditions:

Completion of a satisfactory due diligence review by the Lender.
Execution of a definitive loan agreement and related documents.
The absence of any material adverse change in the Borrower's financial condition.

VII. Governing Law

This Term Sheet and the loan it contemplates will be governed by the laws of [Jurisdiction]. Any disputes arising hereunder will be resolved in the courts of [Jurisdiction].

Both parties agree that this Term Sheet is not legally binding except for this section, the confidentiality section, and any other section that specifies its own enforceability. The complete terms and conditions of the credit facility will be detailed in the final loan agreement.

VIII. Acceptance

This Term Sheet is valid until [Expiration Date]. If acceptable, please sign and return a copy of this document to signify your agreement to the terms outlined herein. We look forward to partnering with [Borrower Name] to support your financing needs.

[Lender Name]

[Date]

[Borrower Name]

[Date]