Electrovaya Inc T.ELVA

PO facility very expensive, minimum 14% !

[TeddyBear]

a) Amended Credit Agreement

In November 2019 the Original Credit Agreement was amended to include a $4.2 million (Cdn $5.5 million) revolving Purchase Order Facility in addition to the $1.5 million Bridge Facility which was amended to be non-revolving. Both facilities are secured.

The interest on the Bridge Facility was unchanged at the greater of a) 8.05% above the Prime Rate or b) 12%. The interest on the Purchase Order Facility is the greater of a) 10.05% above the Prime Rate or b) 14%. Interest is payable monthly. In addition the Company issued 1.5 million common shares to the Lender.

The Bridge Facility is for a term of 6 months from the original closing date of August 20, 2019 or February 20, 2020 with a renewal for a further 6 months to August 20, 2020 by mutual consent. The Purchase Order Facility matures on April 30, 2020. The Purchase Order Facility will be repaid from the Accounts Receivable collections associated with the specific purchase orders the facility financed.

As of the date of approval of these financial statements, $1.13 million (Cdn $1.5 million) has been drawn on the Bridge Facility and $1.9 million (Cdn $2.5 million) has been drawn on the Purchase Order Facility.