SEC Contract Filing

Filing Date: 2025-07-10

Document Content:
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<TYPE>EX-10.7
<SEQUENCE>9
<FILENAME>d43796dex107.htm
<DESCRIPTION>EX-10.7
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<TITLE>EX-10.7</TITLE>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>Exhibit 10.7 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>THIS PROMISSORY NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE &#147;ACT&#148;), OR UNDER THE SECURITIES LAWS OF ANY STATE,
AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION UNDER SUCH LAWS OR AN EXEMPTION FROM SUCH REGISTRATION REQUIREMENTS. THE ISSUER OF THIS PROMISSORY NOTE MAY
REQUIRE AN OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER TO THE EFFECT THAT ANY PROPOSED TRANSFER OR RESALE OF ANY SUCH SECURITIES IS IN COMPLIANCE WITH THE ACT AND ALL APPLICABLE STATE SECURITIES LAWS. </B></P>
<P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B><U>FORM OF PROMISSORY NOTE </U></B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">[&#149;], 2025 </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">FOR VALUE
RECEIVED, and subject to the terms and conditions set forth herein, MP Materials Corp., a Delaware corporation (the &#147;<B>Maker</B>&#148;), hereby unconditionally promises to pay to The United States Department of Defense (the
&#147;<B>Noteholder</B>&#148;), the principal amount of $150,000,000 (the &#147;<B>Initial Principal Amount</B>&#148;), or such lesser amount as shall then equal the outstanding principal amount hereunder (the &#147;<B>Principal Balance</B>&#148;),
together with interest accrued on the unpaid Principal Balance at a rate per annum equal to the Applicable Rate (as defined below). Interest shall begin to accrue on the date hereof in accordance with this Promissory Note (the
&#147;<B>Note</B>,&#148; as the same may be amended, restated, supplemented or otherwise modified from time to time in accordance with its terms) and shall continue to accrue on the outstanding Principal Balance until the Termination Date. The
following is a statement of the rights of the Noteholder and the terms and conditions to which this Note is subject, and to which the Noteholder, by the acceptance of this Note, agrees: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">1. <U>Definitions</U>. Capitalized terms used herein shall have the meanings set forth in this Section&nbsp;1. Capitalized terms used herein
and not defined herein shall have the meanings provided in the Transaction Agreement (as defined below). </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<B>Applicable Rate</B>&#148; means the sum of (a)&nbsp;the rate of interest provided by the Board of Governors of the
Federal Reserve System (or any successor thereto) as the <FONT STYLE="white-space:nowrap">10-year</FONT> U.S. Treasury constant maturity rate, as published in the Federal Reserve Statistical Release H.15 (or any successor or replacement publication)
under the caption &#147;Treasury Constant Maturities &#151; Nominal,&#148; for the <FONT STYLE="white-space:nowrap">10-year</FONT> Treasury bond, on the date that is two US government securities business days prior to the date of this Note, plus (b)
1.00%. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<B>Business Day</B>&#148; means any day that is not a Saturday, Sunday or other day on which banks are
required or authorized by law to be closed in the State of New York, the State of Nevada or Washington, D.C. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;<B>Change of Control</B>&#148; means the occurrence of any of the foregoing: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(a) at any time, any &#147;person&#148; or &#147;group&#148; (within the meaning of
<FONT STYLE="white-space:nowrap">Rules&nbsp;13d-3</FONT> and <FONT STYLE="white-space:nowrap">13d-5</FONT> under the Securities Exchange Act of 1934, as amended from time to time, and any successor thereto (the &#147;<B>Exchange Act</B>&#148;) shall
have acquired beneficial ownership of 50% or more of the voting power of the voting equity interests of the Maker; </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:9%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(b) individuals who constituted the board of directors of the Maker
(together with any new directors whose election by such board of directors or whose nomination for election by the shareholders of the Maker was approved by a vote of at least a majority of the directors of the Maker then still in office) cease for
any reason to constitute a majority of the board of directors of the Maker; or </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(c) the sale, lease or transfer, in one or
a series of related transactions, of all or substantially all the assets of the Maker and its subsidiaries, taken as a whole, to any Person. </P>
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