Exhibit 10.9
[LogicVision Letterhead]
June 19, 1996
Mr. Xxxxxxx Xxxxxxx
00 Xxxxxxxxxx Xxxxx
Xxxxxx, XX X0X 0X0
Dear Xxxxxxx:
With regard to our offer to provide you a loan from LV Software, Inc. of up to
$75,000 towards purchasing a home as part of your relocation to San Xxxx, this
letter is intended to clarify the terms and conditions of this loan. If you
accept the terms and conditions indicated below, please sign below and return a
signed copy of this letter to me.
1. The loan shall be in the amount of at most $75,000. The purpose of this
loan shall be the purchase of a home in the San Xxxx area and related expenses.
2. The loan will be simple interest at 8.0% per annum. The company will
pay the interest and the taxes on interest-as-a-benefit for the first 5 years
from the date you draw the money.
3. 100,000 shares of your vested LV Software, Inc. common stock shall be
used as the collateral for this loan.
4. At the end of a five year period you will have the option to a) repay
the loan in full or b) enter a repayment schedule for the loan based on a 10
year amortization at 8.0% per annum or c) forfeit your collateral.
5. Should the company's common shares become publicly traded at anytime
during the first four years of this agreement and after one year of such public
trading the value of each common share found to be in excess of $1.25 a share,
then you will be obligated at such time to sell the collateral
and discharge the loan using the proceeds.
6. The terms of this letter shall remain unchanged should you be terminated
by the company.
Sincerely,
/s/ Xxxxx Xxxxxxx
Xxxxx X. Xxxxxxx
President & CEO
I, Xxxxxxx Xxxxxxx, accept the terms and conditions specified in the above
letter.
Signed: Xxxxxxx Xxxxxxx Date: Location:
/s/ Xxxxxxx Xxxxxxx June 24, 1996 San Jose, CA
