EXHIBIT 10.18
SR Telecom
LOAN AGREEMENT
THIS AGREEMENT made this 13th day of June, 2002,
B E T W E E N
PIERRE ST-ARNAUD
Hereinafter called the Executive
OF THE FIRST PART;
- and -
SR TELECOM INC.
Hereinafter called the Corporation
OF THE SECOND PART;
WHEREAS, the Canada Business Corporations Act permits the giving of
financial assistance to officers of a corporation to assist in the purchase of
living accommodation for their own occupation;
AND WHEREAS, the Compensation Committee of the Board of SR Telecom Inc.
(the "Corporation") has approved the giving of financial assistance to the
Executive for the purchase of a residence in relative proximity to the location
of the principal offices and facilities of the Corporation;
NOW THEREFORE the parties agree
1. The Corporation will lend to the Executive the sum of $34,000 at
an interest rate of 5% per annum.
- 2 -
2. The Executive will repay the principal amount of the loan in full
on the 3rd day of July, 2006, and will also pay interest
calculated yearly, not in advance, at the rate of 5% per annum as
well after as before maturity and both before and after default
on such portion of the principal as remains from time to time
unpaid on the 3rd day of July in each year; the first payment of
interest to be computed from the 13th day of June, 2002, upon the
whole amount of principal secured, to become due and payable on
the 3rd day of July, 2002.
3. The Executive will have the privilege of prepaying the whole or
any part of the principal sum at any time without notice or
bonus.
4. In evidence of the loan herein provided for, the Executive will
execute a promissory note in the form set out in Annex A hereto.
IT IS EXPRESSLY UNDERSTOOD AND AGREED however that, notwithstanding
anything hereinbefore contained, should, prior to the 3rd day of July, 2006, the
Executive cease to be an employee of the Corporation, the amount of principal
then outstanding and interest thereon shall, at the option of the Corporation,
exercisable from and after the 90th day of the date of cessation, be paid
forthwith on demand.
IN WITNESS WHEREOF the parties hereto have executed this Agreement as of
the date first above written.
SIGNED, SEALED AND DELIVERED )
in the presence of ) /s/ Pierre St. Arnaud
) __________________________________
) PIERRE ST. ARNAUD
)
)
) SR TELECOM INC.
)
) Per: /s/ J. V. R. Xxx
) _______________________________
) Chairman of the
) Compensation Committee
)
)
) /s/ X. X. Xxxxx
) _______________________________
) Secretary
2
PROMISSORY NOTE
The undersigned PIERRE ST-ARNAUD promises to pay to the order of SR Telecom
Inc., on the 3rd day of July, 2006, at 0000 Xxxxx-Xxxxxx Xxxxxxx, Xxxxxxxx
Xxxxxx, or such other address for payment as may have been given by the payee,
the sum of THIRTY FOUR THOUSAND DOLLARS ($34,000), with interest computed from
June 13, 2002, calculated and payable annually on the 3rd day of July in each
year at the rate of five per cent (5%) per annum. Interest payable both before
and after default; the first payment of interest to be computed from the 13th
day of June, 2002, to fall due on the 3rd day of July, 2002.
Notwithstanding anything hereinbefore contained, it is mutually understood and
agreed that should default occur in payment of any amount due hereunder, prior
to the 3rd day of July, 2006, and continue for a period of thirty days, or,
should, prior to such date, the undersigned cease to be employed by SR Telecom
Inc., then, upon the occurrence of any such event, the amount of principal
outstanding and interest thereon shall, at the option of SR Telecom Inc., be
paid forthwith upon demand, provided, however, that in the event of the
undersigned ceasing to be employed by SR Telecom Inc., no demand shall be made
prior to the 90th day following the date of cessation. It is further understood
and agreed that principal may be pre-paid in whole or in part at any time
without notice or bonus.
VALUE RECEIVED
DATED this 13th day of June, 2002.
/s/ Pierre St. Arnaud
____________________________________
PIERRE ST. ARNAUD
