Document:

Exhibit 10.20

 

 

 

LOAN AGREEMENT

 

THIS LOAN AGREEMENT
(“Agreement”) is made this 17th day of October, 2017, by and between ZOMEDICA PHARMACEUTICALS CORP.,
a Canadian corporation, whose address is 3928 Varsity Drive, Ann Arbor, Michigan 48108 (“Borrower”), and EQUIDEBT
LLC, a Michigan limited liability company, whose address is 230 Huronview Blvd., Ann Arbor, Michigan 48103 (“Lender”).
The Lender agrees to make, and the Borrower agrees to repay the loan described below (the “Loan”), in accordance with
the terms and conditions set forth in this Agreement.

 

		1.	LOAN.

 

a.Loan.
The Lender agrees to make available to the Borrower, and the Borrower may borrow from the Lender, the principal sum of Five
Million Dollars ($5,000,000.00) to be evidenced by a Line of Credit Promissory Note (“Note”) dated of even date herewith,
which Loan shall be payable in accordance with the terms stated in the Note, a copy of which is attached hereto as Exhibit “A”.
All sums due Lender under the Note or any of the documents securing
the Note are hereinafter referred to as the “Indebtedness”.

 

b.       Payments.
The Loan shall be repaid in accordance with the terms and provisions of the Note.

 

c.       Use
of Loan Proceeds. Borrower will use the proceeds of the Loan only for working capital and general corporate purposes.

 

d.                 
Borrowing Procedure. The Loan shall be a Line of Credit from which Borrower may, unconditionally and in its
sole discretion, from time to time during the term of this Agreement borrow as set forth below:

 

		a)	Minimum Advance Amount: Two Hundred Fifty Thousand Dollars ($250,000.00).

 

		b)	Maximum Advances per month: Two

 

		c)	Borrowing Procedure: To effect a drawing under the Loan (a “Drawing”), Borrower
shall provide written notice of such Drawing to the Lender (each, a “Borrowing Notice”), which Borrowing Notice shall
(i) set forth the amount of the Drawing, and (ii) the date on which the Drawing shall occur, which date shall be not less than
two business days after the date such Borrowing Notice is deemed to be given to the Lender (such date, the “Funding Date”).
Such Borrowing Notice shall also be accompanied by a PDF or other facsimile copy of a resolution duly adopted by the Company’s
Board of Directors or a duly constituted committee of the Board of Directors approving the Drawing.

 

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		d)	Funding Procedure: No later than 3:00 p.m., Eastern time, on the Funding Date the Lender
shall wire the amount of the Drawing directly to the Borrower, without offset or deduction of any kind whatsoever, in immediately
available U.S. dollars to an account or accounts previously specified by the Borrower in writing.

 

2.       REPRESENTATIONS
AND WARRANTIES OF BORROWER. The Borrower represents and warrants to the Lender, as long as the Loan remains outstanding,
as follows:

 

a.                  
Existence and Authority. Borrower has the corporate power to execute this Agreement and all related documents
and, when executed, this Agreement and all related documents will be legal, valid and binding obligations of Borrower and, enforceable
in accordance with their terms.

 

b.                 
Transactions Legal and Authorized. The execution, delivery and performance of this Agreement and all documents
entered into related thereto, including, but not limited to, the Note (collectively, the “Loan Documents”) have been
duly authorized by all necessary action of Borrower.

 

c.                  
No Litigation. There are no pending or threatened suits or proceedings before any court, governmental agency,
regulatory body, or administrative tribunal to which Borrower is a party or by which his property may be affected and which may
result in any material adverse change in the financial condition of Borrower.

 

d.                 
Financial Condition. All financial information of Borrower, as delivered to Lender as of the date hereof,
if any, is correct and complete and accurately presents the financial condition of such as of the dates thereof. There has been
no material adverse change in the business, property or condition of Borrower since the date of the most recent financial information
delivered to Lender.

 

e.                  
Taxes. Borrower has filed all federal, state and local income and other tax returns and other reports required
to be filed prior to the date of this Agreement and have paid all taxes, withholdings, assessments and other governmental charges
that are due and payable prior to the date of this Agreement.

 

f.                  
Solvency. Borrower is solvent and able to pay its debts as they mature and has assets the fair market value
of which exceeds its liabilities. Borrower will not be rendered insolvent or unable to pay maturing debts as a result of the execution
of this Agreement or the other Loan Documents.

 

g.                  
Survival. All warranties and representations of Borrower contained in the Agreement shall survive the execution
of this Agreement and any advances made in accordance with this Agreement.

 

3.                 
REPRESENTATIONS AND WARRANTIES OF LENDER

 

a.                  
Existence and Authority. Lender is a limited liability company, duly organized and in good standing under
the laws of the State of Michigan and has the full power and complete authority to execute this Agreement and the other Loan Documents
to which it is a party and, when executed, this Agreement and such other Loan Documents will be legal, valid and binding obligations
of Lender, enforceable in accordance with their terms.

 

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b.                 
Transactions Legal and Authorized. The execution, delivery and performance of this Agreement and the Loan
Documents to which it is a party have been duly authorized by all necessary action of Lender.

 

c.                  
Financial Resources. Lender has presently available cash resources to provide the Loan to Borrower hereunder.

 

d.                 
Survival. All warranties and representations of Lender contained in the Agreement shall survive the
execution of this Agreement and any advances made in accordance with this Agreement.

 

		4.	AFFIRMATIVE COVENANTS. The Borrower covenants and agree that, as long as the Loan remains
outstanding, the Borrower shall comply with the following affirmative covenants:

 

a.                  
Notice of Adverse Events. Borrower shall promptly notify the Lender in writing of any Event of Default or
event which, with the giving of notice, the lapse of time, or both, would constitute an Event of Default.

 

b.                 
No Default Certificate. Borrower shall furnish to the Lender, within ten (10) days after request by the Lender,
a certificate executed by the Chief Financial Officer of the Borrower stating that no Event of Default has occurred or, if an Event
of Default has occurred, stating its nature, how long it has existed and what action the Borrower proposes to take with respect
to the Event of Default.

 

c.                  
Other Information. Borrower shall promptly furnish to the Lender such other information, documents or certificates
regarding the operations, business affairs and financial condition of the Borrower as the Lender may reasonably request from time
to time and permit the Lender, its employees, attorneys and agents to inspect, confirm and copy all of the books, records and properties
of the Borrower at any reasonable time; provided, however, that nothing contained herein shall entitle the Lender to obtain any
information relating to Borrower that has not already been publicly disclosed by Borrower in the opinion of counsel to Borrower.

 

5.                 
EVENTS OF DEFAULT. The occurrence of any one of the following events shall constitute an “Event of Default”
under this Agreement and, notwithstanding the terms of any note or other agreement given in connection herewith or otherwise, shall
be an Event of Default under the terms of any such note or agreement:

 

a.                  
Failure by Borrower to pay any amount owing on the Loan when due, whether by maturity, acceleration or otherwise, on
the applicable payment date as set forth in the Note.

 

b.                 
Any failure by Borrower to comply with, or breach by Borrower of any of the terms, provisions, warranties or covenants of
this Agreement or the other Loan Documents, which is not cured within
fifteen (15) days after written notice from Lender.

 

c.                  
The insolvency of Borrower or the admission in writing of Borrower’s inability to pay its debts as they mature.

 

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d.                 
Any statement, representation or information made or furnished by or on behalf of Borrower to the Lender in connection with
or to induce the Lender to provide any loan, credit or other financial accommodation shall prove to be false or materially misleading
when made or furnished.

 

e.                  
Institution of bankruptcy, reorganization, arrangement, insolvency or other similar proceedings by or against Borrower;
or the appointment of a receiver, custodian or trustee for Borrower, or any substantial portion of Borrower’s assets.

 

f.                  
If there is any failure by Borrower to pay when due any indebtedness (other than to the Lender) for borrowed money which
is not cured within fifteen (15) days.

 

6.                 
ACCELERATION. Upon any Event of Default occurring, the Lender may at any time declare the Loan immediately
due and payable, in each case without presentment, demand, protest, notice of dishonor, notice of non-payment or other notice of
any kind, all of which are waived by the Borrower.

 

7.                 
REMEDIES.

 

a.                  
General. The Lender shall have all the rights and remedies provided by law or equity or by agreement of the
parties. The remedies of the Lender are cumulative and not exclusive. No delay, waiver or failure on the part of the Lender to
demand strict adherence to the terms of this Agreement or any related document shall be deemed to constitute a course of conduct
or waiver inconsistent with the rights herein.

 

b.                 
Application of Proceeds. Any proceeds received by the Lender from the exercise of its remedies shall be applied
as follows:

 

(i)                
First, to all sums expended by the Lender in carrying out any term, covenant or agreement under this Agreement or any related
document.

 

(ii)              
Second, to the payment of the Loan. If the proceeds are insufficient to fully pay the Loan, then application shall be made
first to late charges and interest accrued and unpaid, then to any applicable prepayment premiums, other charges and expenses,
and then to the outstanding principal balance.

 

(iii)            
Third, any surplus remaining shall be paid to the Borrower or to any other lawfully entitled party.

 

8.                 
MISCELLANEOUS. The Borrower and the Lender further agree as follows:

 

a.                  
Governing Law. This Agreement shall be construed according to the laws of the State of Michigan.

 

b.                 
Successors and Assigns. This Agreement shall be binding upon the successors and assigns of the Borrower, and
the rights and privileges of the Lender under this Agreement shall inure to the benefit of its successors and assigns. Neither
party may assign its rights hereunder without the prior written consent of the other party hereto and any attempted assignment
in violation of this Section 10(b) shall be null and void ab initio.

 

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c.                  
Notices. Notice from one party to another relating to this Agreement shall be deemed effective if made in
writing (including telecommunications) and delivered to the recipient's address, telex number or telecopier number set forth in
this Agreement by any of the following means: (i) hand delivery, (ii) registered or certified mail, postage prepaid, (iii) express
mail or other overnight courier service, or (iv) telecopy, telex or other wire transmission with request for assurance of receipt
in a manner typical with respect to communications of that type. Notice made in accordance with these provisions shall be deemed
delivered on receipt if delivered by hand or wire transmission, on the third business day after mailing if mailed by registered
or certified mail, or on the next business day after mailing or deposit with the postal service or an overnight courier service
if delivered by express mail or overnight courier.

 

d.                 
Amendments. Any amendment of this Agreement shall be in writing and shall require the signature of the Borrower
and the Lender.

 

e.                  
Solensky Loan Agreement. This Agreement supersedes and replaces in its entirety the Loan Agreement, dated
September 1, 2017, by and between the Lender and Gerald A. Solensky, and the related Promissory Note, dated September 1, 2017,
both of which are hereby terminated without further liability or obligation on the part of any party thereto.

 

f.                  
Partial Invalidity. The invalidity or unenforceability of any provision of this Agreement shall not affect
the validity or enforceability of the remaining provisions of this Agreement.

 

g.                  
Joint and Several Obligations. In the event that more than one person or entity executes this Agreement, the
obligations of each person or entity shall be joint and several.

 

h.                 
Fees and Expenses. The Borrower shall pay to the Lender all of the Lender's reasonable out-of-pocket expenses,
including attorneys' fees and expenses, related to the enforcement of this Agreement. Any reference in this Agreement to attorneys'
fees shall mean fees, charges, costs and expenses of outside counsel and paralegals, whether or not a suit or proceeding is instituted,
and whether incurred at the trial court level, on appeal, in a bankruptcy, administrative or probate proceeding, in consultation
with counsel, or otherwise.

 

i.                   
WAIVER OF JURY TRIAL. THE BORROWER AND THE LENDER ACKNOWLEDGE THAT THE RIGHT TO TRIAL BY JURY IS A CONSTITUTIONAL
ONE, BUT THAT IT MAY BE WAIVED. EACH PARTY, AFTER CONSULTING (OR HAVING HAD THE OPPORTUNITY TO CONSULT) WITH COUNSEL OF THEIR CHOICE,
KNOWINGLY AND VOLUNTARILY, AND FOR THEIR MUTUAL BENEFIT, WAIVES ANY RIGHT TO TRIAL BY JURY IN THE EVENT OF LITIGATION REGARDING
THE PERFORMANCE OR ENFORCEMENT OF, OR IN ANY WAY RELATED TO, THIS AGREEMENT OR THE LOAN. 

 

 

[SIGNATURES ON FOLLOWING PAGE]

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This Agreement is executed
and delivered as of the day and year set forth above.

 

 

	 	BORROWER:
	 	 	 
	 	ZOMEDICA PHARMACEUTICALS CORP., a Canadian Corporation
	 	 	 
	 	 	 
	 	By:	/s/ Gerald A. Solensky
	 	 	Gerald A. Solensky
	 	Its:	Chairman of the Board, President and Chief Executive Officer
	 	 	 
	 	 	 
	 	 	 
	 	LENDER:
	 	 	 
	 	EQUIDEBT LLC, a Michigan limited liability company
	 	 
	 	 	 
	 	By:	/s/ Bradley J. Hayosh
	 	 	Bradley J. Hayosh
	 	Its:	Manager

 

 

 

 

 

 

 

Exhibits:

Exhibit “A” – Promissory
Note

 

 

 

 

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EXHIBIT “A”

 

 

Promissory
NoteExhibit 10.21

 

 

LINE OF CREDIT PROMISSORY NOTE

 

	Loan Amount: $5,000,000.00	 	Ann Arbor, Michigan
	Date of Note: October 17, 2017	 	Maturity Date: October 17, 2022

 

 

FOR VALUE RECEIVED, on the date hereof,
ZOMEDICA PHARMACEUTICALS CORP., a Canadian corporation, whose address is 3928 Varsity Drive, Ann Arbor, Michigan 48108 (hereinafter
referred to as "Borrower"), promises to pay to the order of EQUIDEBT LLC, a Michigan limited liability company
(hereinafter referred to as "Lender"), at its offices located at address is 230 Huronview Blvd., Ann Arbor, MI 48103("Lender")
or at such other place as Lender may designate in writing, the principal sum of Five Million and 00/100 ($5,000,000.00) Dollars,
or so much thereof as may be advanced and outstanding, plus interest as hereinafter provided and any other amounts required to
be paid by Borrower hereunder, in lawful money of the United States, or such lesser sum, if any, due Lender by Borrower (collectively,
all of the foregoing shall be referred to as the "Indebtedness"). All capitalized terms used but not defined in this
Promissory Note (this “Note”) shall have the same meaning as set forth in the Loan Agreement dated the same date hereof
(the “Loan Agreement”).

 

The unpaid principal balance outstanding from
time to time under this Note shall bear interest on the basis of a year of three hundred sixty (360) days for the actual number
of days elapsed in a month, at a rate of interest which shall be equal to fourteen percent (14%) per annum (the "Effective
Interest Rate").

 

Interest accrued on this Note shall be due and
payable on the Maturity Date, subject to earlier acceleration as provided below.

 

Lender may impose a late charge of four (4.0%)
percent of the amount due for an overdue payment which is not paid when due, subject to any applicable grace period, notice and
cure rights, to cover the extra expense of handling delinquent payments, as provided in the Loan Agreement.

 

Borrower may from time to time during the term
of this Note borrow amounts of $250,000 or more, subject to all the limitations, terms and conditions of this Note; provided however,
that the total amount outstanding under this Note shall not exceed the principal amount stated above. The outstanding principal
balance of this Note shall be due and payable in full, with all accrued and unpaid interest and fees, on October 17, 2022.

 

Advances made hereunder, up to the total amount
of the principal sum available, shall be made as provided in the Loan Agreement.

 

This Note may be paid in whole or in part at
any time, provided, however, notwithstanding any written agreement to the contrary, the Borrower shall be responsible for paying
at minimum of nine (9) months of interest payments under the terms of this Note ($525,000.00) based upon the original line amount
of Five Million Dollars ($5,000,000.00) regardless if any portion of the principal balance is Advanced.

 

    	- 1 -

     

    

 

All payments received hereunder shall first
be applied towards any fees and expenses owed to the Lender, then against accrued and unpaid interest and the balance against principal.
Borrower expressly assumes all risks of loss or delay in the delivery of any payments made by mail, and no course of conduct or
dealing shall affect Borrower’s assumption of these risks.

 

Any payment made by mail will be deemed tendered
and received only upon actual receipt, promptly on the date due for each such payment as herein required (time being of the essence),
at the address of Lender designated for such payment whether or not Lender has authorized payment by mail or any other manner.
Borrower hereby expressly assumes all risk of loss or liability resulting from non-delivery or delay in delivery of any payment
transmitted by mail or in any other manner.

 

No delay or failure of Lender in exercising
any right, remedy, power or privilege hereunder shall affect such right, remedy, power or privilege, nor shall any single or partial
exercise thereof preclude the exercise of any other right, remedy, power or privilege. No delay or failure of Lender at any time
to demand strict adherence to the terms of this Note shall be deemed to constitute a course of conduct inconsistent with the Lender's
right at any time, before or after any event of default, to demand strict adherence to the terms of this Note.

 

Nothing herein contained, nor any transaction
relating thereto, or hereto, shall be construed or so operate as to require the Borrower to pay, or be charged, interest at a greater
rate than the maximum allowed by the applicable law relating to this Note. Should any interest or other charges, charged, paid
or payable by the Borrower in connection with this Note, or any other document delivered in connection herewith, result in the
charging, compensation, payment or earning of interest in excess of the maximum allowed by the applicable law as aforesaid, then
any and all such excess shall be and the same is hereby waived by the Lender, and any and all such excess paid shall be automatically
credited against and in reduction of the principal due under this Note. If Lender shall reasonably determine that the effective
interest rate (together with all other charges or payments related hereto that may be deemed interest) stipulated under this Note
is, or may be, usurious or is otherwise limited by law, the unpaid balance of this Note, with accrued interest at the highest rate
then permitted to be charged by stipulation in writing between Lender and Borrower, but not higher than the effective interest
rate, at the option of Lender, shall immediately become due and payable thirty (30) days after notice is received by Borrower accelerating
the Note. Borrower is executing and delivering an affidavit as to business purpose loan contemporaneously with the entry into this
Note pursuant to MCLA 438.31. Borrower acknowledges that Lender would not advance the funds evidenced hereby if this were not a
business purpose loan as provided in such affidavit and statute.

 

    	- 2 -

     

    

 

Upon the occurrence of an Event of Default (as
set forth in the Loan Agreement) and after giving effect to all applicable notice and cure periods, Lender shall have the right
to declare the entire unpaid principal balance, fees and all accrued interest immediately due and payable, together with (to the
extent permitted under applicable law) the costs and expenses, including attorney's fees, incurred by Lender in collecting or enforcing
payment. Notwithstanding the foregoing, an Event of Default shall occur immediately, without notice and without any cure period,
in the event that Borrower fails to pay on or before the Maturity Date (i.e., October 17, 2022) the entire Indebtedness, including
the principal balance of this Note and all interest and fees accrued thereon as set forth herein, plus all costs and expenses of
Lender.

 

If this Note is not paid at maturity (whether
by acceleration or otherwise), the Lender shall have all of the rights and remedies set forth in the Loan Agreement and as otherwise
provided at law or equity or by other agreement, including, without limitation, the right to offset or apply against the Indebtedness
any account balance or other deposit. The remedies of the Lender are cumulative and not exclusive.

 

Borrower hereby waives presentment for payment,
demand, notice of non-payment, notice of protest and protest of this Note, diligence in collection or bringing suit. The liability
of Borrower shall be absolute and unconditional, without regard to the liability of any other party hereto.

 

The Borrower shall reimburse the Lender for
all reasonable out-of-pocket costs and expenses, including attorneys' fees, incurred by the Lender in enforcing the rights of the
Lender under this Note. Such costs and expenses shall include, without limitation, costs or expenses incurred by the Lender in
any bankruptcy, reorganization, insolvency or other similar proceeding. Any reference in this Note to attorneys' fees shall mean
fees, charges, costs and expenses of outside counsel and paralegals, whether or not a suit or proceeding is instituted, and whether
incurred at the trial court level, on appeal, in a bankruptcy, administrative or probate proceeding, in consultation with counsel,
or otherwise.

 

This Note shall be governed by the laws of the
State of Michigan.

 

The Borrower agrees to submit to the non-exclusive
jurisdiction of the state and federal courts located in the Eastern District of Michigan for all purposes in respect of this Note
or the Indebtedness.

 

THE BORROWER AND THE LENDER ACKNOWLEDGE THAT
THE RIGHT TO TRIAL BY JURY IS A CONSTITUTIONAL ONE, BUT THAT IT MAY BE WAIVED. EACH PARTY, AFTER CONSULTING (OR HAVING HAD THE
OPPORTUNITY TO CONSULT) WITH COUNSEL OF THEIR CHOICE, KNOWINGLY AND VOLUNTARILY, AND FOR THEIR MUTUAL BENEFIT, WAIVES ANY RIGHT
TO TRIAL BY JURY IN THE EVENT OF LITIGATION REGARDING THE PERFORMANCE OR ENFORCEMENT OF, OR IN ANY WAY RELATED TO, THIS NOTE OR
THE INDEBTEDNESS.

 

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The undersigned shall at all time keep full
and accurate records of its business, which records shall be open to inspections by Lender at all reasonable times, upon prior
notice.

 

The term "Borrower" shall mean the
party executing this Note.

 

[Signatures on Following Page]

 

 

 

 

 

 

 

 

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This Note shall be governed by and construed
in accordance with the laws of the State of Michigan. This Note shall be binding upon Borrower and its successors and assigns,
and the benefits hereof shall inure to Lender and his/her successors and assigns.

 

 

	 	 	BORROWER:
	 	 	 
	 	 	ZOMEDICA PHARMACEUTICALS CORP., 

a Canadian corporation
	 	 	 
	 	 	By:  	/s/ Gerald A. Solensky,
	 	 	 	Gerald A. Solensky,
	 	 	Its:   Chairman of the Board, President and Chief Executive Officer
	 	 	 
	 	 	LENDER:
	 	 	 
	 	 	EQUIDEBT LLC, a Michigan limited liability company
	 	 	 
	 	 	By: 	/s/ Bradley J. Hayosh
	 	 	 	Bradley J. Hayosh
	 	 	Its: Manager

 

 

 

 

 

 

 

 

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