This Business Loan Agreement ("Agreement") is entered into on June 4, 2025 between First National Bank, a California corporation ("Lender"), and TechCorp LLC, a Delaware limited liability company ("Borrower").

1. LOAN TERMS

1.1 Principal Amount: Lender agrees to loan to Borrower the principal sum of Two Hundred Fifty Thousand Dollars ($250,000) (the "Principal Amount").

1.2 Interest Rate: The loan shall bear interest at a rate of 6.5% per annum, calculated on the outstanding principal balance.

1.3 Loan Term: The loan term shall be 5 years, commencing on June 15, 2025 and ending on June 15, 2030 (the "Maturity Date").

1.4 Purpose: The loan proceeds shall be used exclusively for equipment purchase, working capital, and business expansion.

2. REPAYMENT TERMS

2.1 Payment Schedule: Borrower shall repay the loan in monthly installments of $4,887 each, beginning on July 15, 2025 and continuing on the same day of each month thereafter until the loan is paid in full.

2.2 Payment Method: All payments shall be made by ACH transfer to Lender at Account #12345678, Routing #987654321.

2.3 Application of Payments: Payments will be applied first to accrued interest, then to principal reduction.

2.4 Prepayment: Borrower may prepay the loan in whole or in part at any time without penalty, provided 30 days written notice is given to Lender.

3. DISBURSEMENT

3.1 Loan Disbursement: Subject to satisfaction of all conditions precedent, Lender shall disburse the loan proceeds to Borrower on June 15, 2025 by wire transfer to Borrower's operating account.

3.2 Conditions Precedent: Lender's obligation to disburse funds is subject to:

a) Execution of this Agreement and all related documents;

b) Receipt of satisfactory financial statements and business records;

c) Completion of due diligence review;

d) Perfection of security interests (if applicable);

e) Environmental site assessment and title insurance;

4. SECURITY AND COLLATERAL

4.1 Security Interest: To secure repayment of this loan, Borrower grants Lender a security interest in the following collateral:

All business equipment, inventory, accounts receivable, and a first lien on the commercial property located at 123 Business Avenue, Suite 100, City, State 12345

4.2 Personal Guarantee: John Smith and Jane Smith personally guarantee(s) the full repayment of this loan and all obligations hereunder.

4.3 Insurance: Borrower shall maintain adequate insurance coverage on all collateral, naming Lender as loss payee or additional insured as appropriate.

4.4 UCC Filings: Borrower authorizes Lender to file appropriate UCC financing statements to perfect security interests.

5. REPRESENTATIONS AND WARRANTIES

5.1 Borrower Representations: Borrower represents and warrants that:

a) Borrower is duly organized and validly existing;

b) Borrower has full authority to enter into this Agreement;

c) All financial statements provided are true and accurate;

d) Borrower is not in default under any other agreements;

e) There are no pending or threatened legal proceedings;

f) Borrower owns or has clear title to all collateral;

g) No material adverse changes in business operations or financial condition;

5.2 Lender Representations: Lender represents that it has the authority to make this loan and enter into this Agreement.

6. COVENANTS

6.1 Affirmative Covenants: Borrower agrees to:

a) Make all payments when due;

b) Maintain accurate books and records;

c) Provide annual financial statements within 90 days of fiscal year-end;

d) Maintain all required licenses and permits;

e) Comply with all applicable laws;

f) Maintain minimum working capital of $50,000;

g) Maintain debt service coverage ratio of at least 1.25x;

6.2 Negative Covenants: Without Lender's prior written consent, Borrower shall not:

a) Incur additional debt exceeding $25,000;

b) Make distributions or dividends exceeding $15,000;

c) Sell, transfer, or dispose of material assets;

d) Change the nature of the business;

e) Enter into merger or acquisition transactions;

f) Pledge collateral to other lenders or modify corporate structure;

7. EVENTS OF DEFAULT

The following shall constitute "Events of Default":

a) Failure to make any payment when due, continuing for 10 days after written notice;

b) Breach of any covenant that remains uncured for 30 days after notice;

c) Any representation or warranty proves to be materially false;

d) Borrower becomes insolvent or files for bankruptcy;

e) Default under any other material agreement;

f) Death or incapacity of key principals (if applicable);

g) Failure to maintain required insurance coverage or loss of key business licenses;

8. REMEDIES

8.1 Acceleration: Upon occurrence of an Event of Default, Lender may declare the entire unpaid principal balance and accrued interest immediately due and payable.

8.2 Enforcement: Lender may exercise all rights and remedies available at law or equity, including:

a) Foreclosure on collateral;

b) Taking possession of collateral;

c) Selling collateral at public or private sale;

d) Pursuing legal action for monetary damages;

e) Exercising rights against guarantors;

8.3 Costs and Expenses: Borrower shall pay all costs and expenses incurred by Lender in enforcing this Agreement, including reasonable attorney's fees.

9. FINANCIAL REPORTING

Borrower shall provide Lender with the following financial information:

a) Annual audited financial statements within 90 days of fiscal year-end;

b) Quarterly unaudited financial statements within 45 days of quarter-end;

c) Monthly accounts receivable and payable aging reports;

d) Annual business tax returns;

e) Monthly cash flow statements and annual business insurance certificates;

10. MISCELLANEOUS

10.1 Governing Law: This Agreement shall be governed by the laws of California.

10.2 Jurisdiction: The parties consent to the exclusive jurisdiction of courts located in Los Angeles County, California.

10.3 Entire Agreement: This Agreement constitutes the entire agreement between the parties.

10.4 Amendment: This Agreement may only be amended in writing signed by both parties.

10.5 Assignment: This Agreement shall be binding upon successors and assigns.

10.6 Severability: Invalid provisions shall not affect the remainder of this Agreement.

10.7 Notices: All notices shall be in writing and delivered to the addresses specified below.