Galaxy Holdings
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Name: Michael Yuan
Title: General Manager
Date:
Borrower — Date:
This Employee Loan Agreement and Promissory Note (the “Agreement”) is entered into as of between Galaxy Holdings, a TX LLC (the “Company” or “Lender”), and (the “Employee” or “Borrower”).
The Company agrees to lend the Employee the principal sum of (the “Loan”), to be disbursed on or about . The Employee promises to repay the Loan, together with interest, in accordance with this Agreement.
Interest accrues on the unpaid principal balance at an annual rate of , computed on the basis of a 365-day year for the actual number of days outstanding. The parties intend that this rate be at least the applicable federal rate (AFR) published by the IRS for a loan of this term and amount, so that the Loan is not treated as a below-market loan; any imputed interest or compensation income required by law will be reported as the law requires. In no event will interest exceed the maximum rate permitted by applicable law.
The Employee will repay the Loan in periodic installments as follows:
The Employee authorizes the Company to deduct from each of the Employee’s paychecks and to apply it to the Loan (first to accrued interest, then to principal), and to continue such deductions until the Loan is repaid in full. This payroll-deduction authorization is voluntary and may not reduce the Employee’s pay below applicable minimum-wage requirements; to the extent a deduction would do so, the deficiency remains due and payable by other means. The Employee may prepay all or part of the Loan at any time without penalty.
The entire unpaid principal balance and all accrued interest become immediately due and payable, at the Company’s option and without further notice, upon any of the following: (a) the Employee’s employment with the Company ends for any reason, whether voluntary or involuntary; (b) the Employee fails to make any payment when due; (c) the Employee breaches this Agreement; or (d) the Employee files or becomes subject to a bankruptcy or insolvency proceeding. Upon termination of employment, the Employee authorizes the Company to apply any final wages, accrued paid time off, or other amounts owed to the Employee toward the outstanding balance, to the fullest extent permitted by applicable law.
This Agreement is a negotiable promissory note. The Employee waives presentment, demand, protest, and notice of dishonor. If the Loan is referred for collection after default, the Employee will pay the Company’s reasonable costs of collection, including reasonable attorneys’ fees, to the extent permitted by law. The Company’s failure to enforce any right is not a waiver of that right.
This Agreement is governed by the laws of the State of TX, without regard to its conflict-of-laws principles. It is the entire agreement between the parties on its subject matter, binds the Employee’s heirs and assigns, and may be signed in counterparts, including by electronic signature. If any provision is unenforceable, the remainder stays in effect.
Name: Michael Yuan
Title: General Manager
Date:
Borrower — Date: