Officer Loan Policy - Koss Corp.
OFFICER LOAN POLICY
RESOLVED: That in accordance with the authority granted by Delaware
Statutes, section 143, the following policy regarding advances to officers be
and hereby is established:
1. Advances to officers shall be granted only where it is deemed necessary
and in the best interest of the officer in question and this Company.
2. Advances shall be limited to one-half the officer's annual base salary.
3. Interest on any advances in excess of $10,000.00 in the aggregate per
officer shall be charged at the minimum rate provided in section 483 of
the Internal Revenue Code as amended from time to time. The current
minimum rate is nine (9) percent per annum.
4. The Chief Operating Officer of the Company, except when a determination
related to such officer, and in such case, the Chief Executive Officer,
shall determine the terms and conditions of any advance to an officer
except as provided in the preceding paragraph.
Adopted at Board of Directors Meeting January 31, 1980.