Debenture Short Form

Company Letterhead

{{company_name}}

{{company_address}}

Tel: {{phone}}

Email: {{email}}

Website: {{website}}

DEBENTURE SHORT FORM

THIS DEBENTURE is made and entered into on this {{day}} day of {{month}}, {{year}} (the “Effective Date”)

BETWEEN:

{{company_name}} (Registration Number: {{company_registration_number}}), a company duly incorporated in accordance with the laws of [Jurisdiction, e.g., South Africa] with its registered office at {{company_address}} (the “Chargor”);

AND

{{lender_name}} (Registration Number: {{lender_registration_number}}), a company/individual duly incorporated/residing in accordance with the laws of [Jurisdiction, e.g., South Africa] with its registered office/residential address at {{lender_address}} (the “Chargee”).

1. LOAN AMOUNT AND TERMS

1.1 The Chargor acknowledges receipt of a loan from the Chargee in the amount of {{loan_amount}} ({{loan_amount_words}}) (the “Loan”).

1.2 The Loan shall be repaid by the Chargor to the Chargee by no later than {{repayment_date}}.

1.3 Interest shall accrue on the outstanding principal amount of the Loan at a rate of {{interest_rate}}% per annum, calculated daily and capitalised monthly, until the Loan is fully repaid.

2. CHARGE

2.1 As security for the due and punctual payment of the Loan and all other amounts owing to the Chargee under this Debenture, the Chargor hereby charges all of its present and future assets, undertakings, and property whatsoever and wheresoever situate, both movable and immovable, tangible and intangible, including but not limited to its uncalled capital, goodwill, plant, machinery, stock, intellectual property, book debts, and all other rights and assets (the “Charged Assets”) to the Chargee by way of a first ranking continuing covering charge.

2.2 This charge shall be a fixed charge over all Charged Assets from time to time specifically identifiable, and a floating charge over all other Charged Assets.

3. COVENANTS BY THE CHARGOR

3.1 The Chargor shall not, without the prior written consent of the Chargee, sell, transfer, lease, dispose of, or in any way encumber the Charged Assets or any part thereof, save in the ordinary course of its business.

3.2 The Chargor shall maintain adequate insurance cover over the Charged Assets, noting the interest of the Chargee.

3.3 The Chargor shall permit the Chargee or its representatives, at all reasonable times, to inspect the Charged Assets and the books and records of the Chargor relating thereto.

4. EVENTS OF DEFAULT

4.1 An event of default shall occur if:

(a) The Chargor fails to pay any amount due under this Debenture on its due date;

(b) The Chargor breaches any of its covenants or obligations under this Debenture and fails to remedy such breach within {{cure_period}} days of receiving a written notice from the Chargee requiring it to do so;

(c) Any step is taken to wind up or liquidate the Chargor, or a receiver, liquidator, or administrator is appointed over any of its assets.

5. REMEDIES ON DEFAULT

5.1 Upon the occurrence of an event of default, the Chargee may, without prejudice to any other rights or remedies it may have, declare the Loan and all other amounts owing under this Debenture immediately due and payable.

5.2 The Chargee may take possession of, realise, or dispose of the Charged Assets or any part thereof, and apply the proceeds towards the satisfaction of the amounts owing under this Debenture.

6. JURISDICTION AND GOVERNING LAW

6.1 This Debenture shall be governed by and construed in accordance with the laws of [Jurisdiction, e.g., South Africa].

6.2 The parties hereto irrevocably submit to the non-exclusive jurisdiction of the courts of [Jurisdiction, e.g., South Africa] in connection with any dispute arising out of or in connection with this Debenture.

7. GENERAL

7.1 This Debenture constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements, understandings, and negotiations, whether written or oral.

7.2 No variation, amendment, or waiver of any provision of this Debenture shall be effective unless made in writing and signed by both parties.

7.3 Any notice required or permitted to be given under this Debenture shall be in writing and shall be deemed to have been duly given when delivered personally, sent by registered post, or emailed to the addresses specified herein.

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

SIGNATURES

Thus done and signed at {{place_of_signing}} on the date first above written.

_____________________________

For: {{company_name}}

Name: {{company_representative_name}}

Designation: {{company_representative_designation}}

_____________________________

For: {{lender_name}}

Name: {{lender_representative_name}}

Designation: {{lender_representative_designation}} / Individually