Looking for an agreement? Search from over 1 million agreements now.

Relocation Loan Agreement

This is an actual contract by Objective Systems Integrators.
Browse the agreement preview below and buy the entire agreement for $35
Search This Document
EXHIBIT 10.3


RELOCATION LOAN AGREEMENT


THIS RELOCATION LOAN AGREEMENT ("Agreement") is entered into as of the 14th day of April, 1998, by and between OBJECTIVE SYSTEMS INTEGRATORS, INC., a Delaware corporation (the "Company"), and JAMES K.R. SOUDERS, an unmarried man ("Employee").


RECITALS
--------


A. Employee is employed by the Company as its Executive Vice President of Sales and Marketing.


B. In connection with his employment with the Company, Employee has found it necessary to relocate his principal place of residence.


C. To aid Employee in such relocation, the Company and Employee desire that the Company loan to Employee the sum of Four Hundred Thousand Dollars ($400,000.00) to assist Employee in purchasing a new principal residence in the vicinity of the offices of the Company.


NOW, THEREFORE, the Company and Employee agree as follows:


AGREEMENT
---------

1. LOAN: The Company shall lend to Employee the amount of Four Hundred
---- Thousand Dollars ($400,000.00), which amount shall be used by Employee for the sole purpose of purchasing a new residence located in the Folsom, California area, pursuant to the terms and conditions set forth herein (the "Loan").


2. PROMISSORY NOTE: Concurrently upon execution of this Agreement,
--------------- Employee shall execute and deliver to the Company the following: (i) one (1) original promissory note in the amount of Four Hundred Thousand Dollars ($400,000.00) in substantially the same form as Exhibit A attached hereto (the
--------- "Note"); and (ii) Employee shall execute a Certificate of Employee in substantially the same form as Exhibit B attached hereto.
---------


3. DEED OF TRUST: Concurrently upon execution of this Agreement,
------------- Employee shall duly execute and deliver to the Company one (1) original, validly acknowledged deed of trust on Lot 39 of Sammamish 95, as per plat recorded in volume 141 of plats, pages 21 through 25, Records of King County, Washington State (the "Washington Property"), in substantially the same form as Exhibit C
--------- attached hereto, with all uncompleted information fully completed (the "Deed of Trust").


4. EMPLOYEE'S REPRESENTATIONS AND WARRANTIES: Employee hereby makes the
----------------------------------------- following representations and warranties to the Company and acknowledges that the Company is relying on such representations in making the Loan:


A. Employee has good and marketable title to the Washington Property free and clear of any security interests, liens or encumbrances securing monetary obligations other than a first deed of trust dated on or about February 28, 1997, constituting a first lien against the Washington Property in favor of Norwest Mortgage, Inc., securing a loan with a principal balance not in excess of Two Hundred Fourteen Thousand Dollars ($214,000) ("First Deed of Trust").


B. The consent of no other person or entity is required to grant the security interest in the Washington Property to the Company evidenced by the Deed of Trust.


C. There are no actions, proceedings, claims or disputes pending or, to Employee's knowledge, threatened against or affecting Employee, or the Washington Property.


5. CERTIFICATION BY EMPLOYEE: Employee hereby certifies to the Company
------------------------- as follows:


A. Employee understands that the Loan provided by this Agreement between the Company and Employee is not transferable by the Employee and is conditioned on the future performance of substantial services by the Employee. Employee further agrees that the Loan proceeds will be used only to purchase a principal residence for Employee being acquired in connection with the commencement of employment at a "new principal place of work" within the meaning of Section 217 of the Internal Revenue Code of 1986, as amended.


B. Employee reasonably expects to be entitled to and will itemize deductions each year that the loan is outstanding.


C. The loan proceeds will be used only to purchase a new residence for Employee.


6. EMPLOYEE'S ADDITIONAL OBLIGATIONS: Employee shall take any and all
--------------------------------- further actions that may from time to time be required to ensure that the Deed of Trust creates a valid lien on the Washington Property in favor of the Company, which shall secure the Note and be junior in priority only to the First Deed of Trust. Employee shall furnish evidence reasonably satisfactory to the Company that: (i) Employee has good and marketable title to the Washington Property; (ii) the consent of no other person or entity is required to grant a security interest in the Washington Property to the Company; and (iii) there is no other deed of trust, mortgage or encumbrance against the Washington Property other than the First Deed of Trust. If it should be hereafter determined that there are defects against title or matters which could result in defects against title to the Washington Property or that the consent of another person or entity is required to grant to and perfect in the Company a valid second-priority lien on the Washington Property, Employee shall promptly take all action necessary to remove such defects and to obtain such consent and grant (or


cause to be granted) an
-- End of Preview --
Home| About Us| FAQ| Subscription | Contact Us |