HSBC Indicative Summary Terms and Conditions for Term Loan Facility to Propalms Ltd.

Summary

This document outlines the proposed terms for a £150,000 term loan from HSBC Bank plc to Propalms Ltd. The loan has a 10-year term, monthly repayments, and an interest rate of 2.2% above HSBC's base rate. Security includes a £75,000 personal guarantee from directors and £75,000 in cash collateral. The agreement is subject to HSBC's final approval, completion of due diligence, and other conditions such as insurance, compliance checks, and interest rate hedging. These terms are indicative and not a binding commitment.

EX-10.3 4 ex10_3.txt EXHIBIT 10.3 Exhibit 10.3 HSBC INDICATIVE SUMMARY TERMS AND CONDITIONS This Summary sets out indicative terms and conditions for banking facilities and is subject to HSBC Bank plc (the Bank) formal credit approval upon completion of the due diligence process. It is intended to outline the terms on which the Bank expects to be able, at its option, to offer such facilities. Any such facilities will additionally be subject to satisfactory completion of all documentation required by the Bank. These terms are not meant to be exhaustive and the facility agreement will contain other terms and conditions. The terms may also need to be revised, as further information becomes available or market conditions change. This does not constitute a binding offer of commitment. Confidentiality These Indicative Summary Terms and Conditions are confidential and are not to be disclosed to or relied upon by any other person. Description of Facility Facility Term Loan Borrower Propalms Ltd Amount (pound)150,000 Term 10 years Repayments Monthly capital & interest Interest Margin 2.2% above HSBC Base Rate Arrangement Fee 1.25% Prepayment Fee No early repayment penalty Security Personal Guarantee for (pound)75k from Directors (pound)75k of cash funds secured against facility Preconditions: To be completed, to the Bank's satisfaction, prior to drawdown of the loan facility: Evidence of satisfactory insurance cover in place; Compliance with Bank's account opening and money laundering regulations; All security to be completed prior to drawdown; Appropriate Life cover to be agreed with the Bank and arranged through HSBC Independent Financial Advisor; Interest rate hedging in place for min (pound)150k and 5 years term to be arranged through HSBC Treasury Department; Covenants & Undertakings All professional fees and reasonable out of pocket expenses incurred by the Bank in setting up the facilities are for the account of the borrower.