Loan Facility Agreement between Imperial Resources LLC and Empire Energy USA LLC
Imperial Resources LLC is providing an unsecured loan of $2,340,000 to Empire Energy USA LLC for one year. The loan is interest-free for the first six months, after which a 5% annual interest rate applies, payable semi-annually. There is no establishment fee and no collateral required. The loan is intended to convert an existing accrued profit distribution into a loan. If Empire Energy USA LLC fails to meet its obligations or if circumstances arise that may affect its ability to do so, the loan becomes immediately due. Both parties have signed to accept these terms.
Exhibit 10.5
LOAN FACILITY
Imperial Resources LLC unsecured loan to Empire Energy USA LLC.
Terms of the Loan Facility are set out below:
| Borrower: | Empire Energy USA LLC 380 Southpointe Blvd, Suite 130 Canonsburg, PA 15317 |
| Lender: | Imperial Resources LL Level 7, 151 Macquarie Street, Sydney NSW 2000 |
| Amount: | USD$2,340,000 |
| Term: | 1 year |
| Purpose: | Convert existing accrued B Unit profit distribution to a loan |
| Interest: | Interest free for first 6 months then 5% pa payable semi-annually |
| Establishment Fee: | Nil |
| Security: | Nil. The Loan is unsecured. |
| Event of Default: | The Facility will become immediately due and payable, if:
· The Borrower does not perform or comply with its obligations as set out in this letter. · Any event occurs or circumstances arise which in the Lender's sole opinion may have an adverse effect on the ability of the Borrower to perform or comply with its obligation set out in this letter. |
| Acceptance of Offer: | Please acknowledge your acceptance of these terms and conditions by signing the Acknowledgement below: |
| Lender Acknowledgement: | /s/ Rachel Ryan | Date: 1 July 2013 | ||
| Name: Rachel Ryan | ||||
| Borrower | /s/ Bruce McLeod | Date: 1 July 2013 | ||
| Acknowledgement: | Name: Bruce McLeod |
