Employee Loan Agreement

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					Employee Loan Agreement
Avoid complications and disputes that may arise from oral loan agreements and use a
written agreement to memorialize any loan given to employees with this Employee Loan
Agreement. Customize the amount of the loan, the interest rate, repayment options, the
due date, and much more. This agreement is ideal for small businesses that give loans
to employees and want to use a written contract to formalize and frame such
agreement.
                                EMPLOYEE LOAN AGREEMENT
This Employee Loan Agreement (hereinafter “the Agreement”) is entered into and shall become
effective as of _________________ [Instruction: Insert the effective date of this Agreement]
by and between the following parties: ______________ [Instruction: Insert the name of the
Employee receiving the loan] (hereinafter the “Employee”), having his or her residence at
_________________________________________________;             [Instruction:    Insert    the
residential address of the Employee] and __________________________ [Instruction: Insert
the name of the Company providing the loan] (hereinafter the “Company”) having its physical
place of business at _________________________________________________________
[Instruction: Insert the business address of the Company] (hereinafter sometimes collectively
referred to as the “Parties”).

                                                LOAN SPECIFICS

AMOUNT: _______________ [Instruction: Insert the dollar amount of the loan]

DUE DATE: __________________ [Instruction: Insert the due date of the loan]

INTEREST: _____________ [Instruction: Insert the interest percentage of the loan]

                                                     RECITALS

Employee seeks to borrow money in the form of a loan from Company, and Company seeks to
lend money as a loan to Employee, as further described herein. This Agreement shall not have
any effect whatsoever on the Employee’s employment with Company, the Employee’s job duties
within the Company, and anything related thereto.

                                     AGREEMENT OF THE PARTIES

For value received, the Employee, as evidenced by his or her signature below, hereby
unconditionally promises to pay to the order of the Company at the address identified herein or at
such other address as the Company in writing may direct, without any right of deduction, set-off
or abatement whatsoever, the principal sum of _______________ [Instruction: Insert the dollar
amount of the loan] (the “Principal”), with interest accrued, at the rate of _____________
[Instruction: Insert the interest percentage of the loan] per annum, to become due and
payable in full on __________________ [Instruction: Insert the due date of the loan], or at a
sooner date pursuant to the terms of this Agreement, in accordance with the monthly installment
payment plan identified herein.

1. Employee hereby promises to pay the Principal and the interest accrued to Company in
   _______________ [Instruction: Insert the number of installment payments required to
   repay the loan in full with the accrued interest] equal and consecutive monthly
   installments in the amount of __________________ [Instruction: Insert the installment
   dollar amount] each and every month commencing on __________________ [Instruction:
   Insert the day of the month the installment payments will be due] and continuing each
   and every month on the same day of each and every month thereafter, with a final installment



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    of Principal and interest due and payable on __________________ [Instruction: Insert the
    due date of the loan] (the “Due Date”). Scheduled payments that are not timely made on or
    prior to the Due Date as identified herein will be deemed to be late and subject to a late fee
    penalty of ___________ [Instruction: Insert the late fee percentage] of the total then due,
    owing and unpaid for each day that the payment remains unpaid. A _____________
    [Instruction: Insert the late fee for returned checks] fee will be charged to Employee in
    addition to all other sums due and owing for any payment checks returned for non-sufficient
    funds.

2. The entire amount of Principal outstanding hereunder and any accrued interest thereon, is
   secured by way of the following: _________________________________ [Instruction:
   Insert the property that will be used for collateral. If no collateral will be used, delete
   this clause in its entirety] (the “Collateral”); and may become due and payable, without
   notice or demand, in the event of any one or more following events of default:
         A.       any monthly installment of Principal and interest not paid when due and which
                  remains unpaid for a period of _____________ [Instruction: Insert the number
                  of days a payment needs to be overdue for the Employee to be considered in
                  default] days thereafter; or

         B.       any change in ownership of/or in the Collateral, without the prior written consent
                  of Company; or

         C.       any bankruptcy or insolvency proceedings that are brought by or against the
                  Employee; or

         D.       discontinuance by Employee or otherwise a failure by Employee to continue to
                  operate the Business as same is operated as described within this Agreement.

3. Should any amount(s) that become due under this Agreement not be paid in full in
   accordance with its terms and provisions, the Employee hereby agrees to pay to Company all
   reasonable associated costs, fees and expenses (including without limitation, reasonable
   attorneys’ fees) for the collection of same.

4. In the event of failure to make a scheduled payment of principal and/or interest or any other
   amounts secured by this Agreement within _____________ [Instruction: Insert the number of
   days a payment needs to be overdue for the Employee to be considered in default] days of the
   due date for such payment or upon the bankruptcy or insolvency of the Employee or upon the
   filing of a petition in bankruptcy against the Employee or upon the making of a proposal in
   bankruptcy by the Employee, the whole of the monies (or any part thereof) secured by this
   Agreement remaining unpaid shall, at the option of the Company, forthwith become due and
   payable and all the powers in and by the Agreement or by law conferred in case of default
   shall become exercisable.

5. No course of dealing between the Employee and Company or any delay on the part of
   Company in exercising any rights hereunder or waiver of any instance of breach shall operate
   as a waiver of any rights of Company. All of the covenants, stipulations, promises and


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    agreements contained in this Agreement made by or on behalf of the Employee shall bind his
    or her heirs, executors, administrators, successors and assigns, whether so expressed or not.

6. Company may assign any or all of its rights hereunder to any other party without any consent
   by Employee. The rights of Company to receive payment hereunder shall be payable to
   Company’s heirs, executors, administrators, successors and assigns, as the case may be.

7. The Employee covenants and agrees not to assign any of the obligations under this Note,
   except by prior express, written consent of Company. An assignment without the prior
   written consent of Company shall be absolutely null and void and shall, at Company’s
   option, terminate this Note. In the event of same, at Company’s option in its sole discretion,
   all principal and interest due under this Note may become immediately due and payable in
   full.

8. The Employee may, at any time, without notice, bonus or penalty, prepay or cause to be
   prepaid the whole or any part of the principal and the interest accrued amount remaining
   unpaid hereunder. Any payments made in excess of any interest only payment due shall be
   applied first to any late charges then due and owing, then to any NSF charges then due and
   owing, then to any interest then due and owing. The remainder of any such excess payment
   shall then be applied to the principal.

9. Any notice required, permitted to be given, or otherwise given hereunder may be effectively
   given by letter delivered either by personal delivery, registered mail certified return receipt
   requested or by overnight delivery service, or may be sent via facsimile machine with a
   hardcopy sent via first class mail and in the case of delivery by facsimile transmission shall
   be deemed delivered upon receipt by the sender of a written confirmation of receipt from the
   recipient, or by email or other electronic means so long as the recipient has acknowledged
   receipt in writing (for the purposes of this section a confirmation email sent from the
   recipient’s email address shall qualify as being “in writing” but an automatically generated
   receipt confirmation does not qualify as acknowledgement of receipt), addressed to the
   recipient as follows:
In the case of Employee:

____________________
____________________
____________________

[Instruction: Insert the Employee’s address where notices under this agreement should be
sent to]

In the case of Company:

____________________
____________________
____________________




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[Instruction: Insert the Company’s address where notices under this agreement should be
sent to]


10. This Agreement shall be governed and construed in accordance with the applicable laws of
    ______________ [Instruction: Insert which state’s laws will govern this Agreement] as
    they apply to agreements entered into and to be performed entirely within ______________
    [Instruction: Insert which state’s laws will govern this Agreement] between
    ______________ [Instruction: Insert which state’s laws will govern this Agreement]
    residents, without regard to conflict of law provisions and shall be treated, in all respects, as a
    ______________ [Instruction: Insert which state’s laws will govern this Agreement]
    contract. The Parties further agree that the venue of any legal action or claim hereunder shall
    be exclusively in and with a court having jurisdiction over ______________ [Instruction:
    Insert the name of the county where disputes under this Agreement should be heard]
    County. The Parties further agree and hereby consent to, and waive all defences of lack of
    personal jurisdiction and forum non conveniens with respect to, venue and jurisdiction in
    ______________ [Instruction: Insert the name of the county where disputes under this
    Agreement should be heard] County.

11. Both parties agree that this Agreement is the complete and exclusive statement of the mutual
    understanding of the parties and supersedes and cancels all previous written and oral
    agreements and communications relating to the subject matter of this Agreement. Any
    change to this Agreement, other than a change in Company’s address, shall be in a writing
    signed by both parties.

12. In the event of litigation or arbitration relating to the subject matter of this Agreement, the
    prevailing party shall have the right to collect from the other party its reasonable costs and
    necessary disbursements and attorneys' fees incurred in enforcing this Agreement.

13. This Agreement or any subsequent amendment or modification hereto may be executed by
    facsimile and/or in one or more counterparts, each of which when so executed and delivered
    shall be deemed an original, but all of which taken together shall constitute but one and the
    same original. Each party shall accept any such signed faxed counterpart as full execution of
    this Agreement or any subsequent amendment or modification thereto.

14. If any provision of this Agreement shall be adjudged by any court of competent jurisdiction
    to be unenforceable or invalid, that provision shall be limited or eliminated to the minimum
    extent necessary so that this Agreement shall otherwise remain in full force and effect and
    enforceable.
In witness hereof, we have executed this Agreement as of __________________ [Instruction:
Insert the date the parties will sign this Agreement]


EMPLOYEE

____________________________[Instruction: Insert the signature of the Employee]



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COMPANY

____________________________ [Instruction: Insert the signature of Company]
Per: ________________________ [Instruction: Insert the name of the individual that will
sign this Agreement on behalf of the Company]
Title: _______________________ [Instruction: Insert the job title of this individual]
I have authority to bind the Company




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DOCUMENT INFO
Description: Avoid complications and disputes that may arise from oral loan agreements and use a written agreement to memorialize any loan given to employees with this Employee Loan Agreement. Customize the amount of the loan, the interest rate, repayment options, the due date, and much more. This agreement is ideal for small businesses that give loans to employees and want to use a written contract to formalize and frame such agreement.