This collateral agreement template has 7 pages and is a MS Word file type listed under our human resources documents.
Sample of our collateral agreement template:
COLLATERAL AGREEMENT This Collateral Agreement (the "Agreement") is effective [DATE], BETWEEN: [NAME OF PLEDGOR] (the "Pledgor"), an individual with his main address located at OR a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] AND: [NAME OF COLLATERAL AGENT] (the "Collateral Agent"), an individual with his main address located at OR a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] Collectively, the Pledgor and Collateral Agent shall be referred to as the "Parties." WHEREAS, the Pledgor and [NAME] (the "Pledgee") have entered into certain agreements pursuant to which the Pledgor has agreed to pledge certain property as Collateral (the "Collateral") as described in Exhibit A to the Pledgee to secure the Pledgor's Obligations to the Pledgee; WHEREAS, the Pledgor and the Pledgee have requested the Collateral Agent to hold the property pledged as Collateral and to perform certain other functions as more fully described herein; NOW, THEREFORE, the Parties agree as follows: APPOINTMENT AND ACCEPTANCE The Pledgor hereby appoints [NAME] as its Collateral Agent for the purposes set forth herein, and the Collateral Agent hereby accepts such appointment, subject to the terms and conditions set forth herein. COLLATERAL AND DELIVERY As security for the payment or performance, as the case may be, in full when due (whether at stated maturity, by acceleration or otherwise) of the Loan (other than contingent obligations), the Pledgor and Pledgee hereby confirm the pledge and grant to the Collateral Agent, its successors and permitted assigns of the security interest, for the ratable benefit of the Loan; and as security for the payment or performance, as the case may be, in full when due (whether at stated maturity, by acceleration or otherwise) of the Obligations (other than contingent obligations), the Pledgor hereby pledges and grants to the Collateral Agent, its successors and permitted assigns, for the ratable benefit, a security interest in all right, title or interest in or to any and all of the following assets and properties in each case, whether tangible or intangible, wherever located, and now owned or at any time hereafter acquired by the Pledgor (but excluding any Excluded Collateral), collectively, the "Collateral." The description and details of the Collateral are mentioned in Exhibit A, which is attached to this Agreement. The Collateral shall be delivered to the Collateral Agent on the effective date and the receipt of the Collateral shall be acknowledged by the Collateral Agent. LOAN AND REPAYMENT This Loan is in the amount of [AMOUNT] at [SPECIFY THE RATE OF INTEREST] % interest per year, compounded for a period of [NUMBER OF YEARS] years. Payments of principal and interest in the amount of [AMOUNT], payable on the [SPECIFY DAY] day of each month, shall begin on [DATE], and the Loan shall be fully repaid no later than [DATE]. The Pledgor may prepay any portion or all of this Loan at any time without penalty. Any amounts paid in excess of the regular payment due shall be applied to reduce the principal amount of the Loan. DUTIES OF COLLATERAL AGENT Standard. The Collateral Agent undertakes to perform without gross negligence only such duties as are expressly set forth herein and no duties shall be implied. The Collateral Agent shall have no liability under and no duty to inquire as to the provisions of any law, regulation or agreement other than this Collateral Agreement. The Collateral Agent shall be under no duty to inquire into or investigate the validity, accuracy or content of any such document. The Collateral Agent shall not be liable for any action taken or omitted by it in good faith except to the extent that a court of competent jurisdiction determines that the Collateral Agent's willful misconduct was the primary cause of any loss to any person. Reliance. The Collateral Agent may rely and shall be protected in acting or refraining from acting upon any written notice, instruction or request furnished to it hereunder and believed by it to be genuine and to have been signed or presented by the proper Party or Parties. The Collateral Agent shall not incur any liability for following the instructions herein expressly provided for, or written instructions given by the Pledgor. Agents and Attorneys. The Collateral Agent may execute any of its powers and perform any of its duties hereunder directly or through agents or attorneys (and shall be liable only for the careful selection of any such agent or attorney) and may consult with counsel, accountants and other skilled persons to be selected and retained by it. The Collateral Agent shall not be liable for anything done, suffered or omitted in good faith by it in accordance with the advice or opinion of any such counsel, accountants or other skilled persons. Disputes. In the event that the Collateral Agent shall be uncertain as to its duties or rights hereunder or shall receive instructions, claims or demands from any person which, in its opinion, conflict with any of the provisions of this Collateral Agreement or the directions of the Pledgor, it shall be entitled to refrain from taking any action and its sole Obligation shall be to keep safely all property held in Collateral until it shall be directed otherwise in writing by the Pledgee or by a final order or judgment of a court of competent jurisdiction. Consequential Damages. Anything in this Collateral Agreement to the contrary notwithstanding, in no event shall the Collateral Agent be liable for special, indirect or consequential loss or damage of any kind whatsoever (including but not limited to lost profits), even if the Collateral Agent has been advised of the likelihood of such loss or damage and regardless of the form of action. RESIGNATION AND REMOVAL The Collateral Agent may resign and be discharged from its duties or Obligations hereunder by giving [NUMBER OF DAYS] days' advance notice of such resignation, specifying a date when such resignation shall take effect. The Collateral Agent may be removed and discharged from its duties or Obligations hereunder by the Pledgor giving [NUMBER OF DAYS] days' advance notice of such removal and specifying a date when such removal shall take effect. If a successor as Collateral Agent shall be appointed and accept such appointment prior to the effective date of such resignation or discharge (the "Effective Date"), the Collateral Agent shall transfer the Collateral Fund to the successor, together with its information as to subaccounts. If no such successor is so appointed, the Collateral Agent shall turn over the Collateral Fund and its information about subaccounts to the Pledgor on the Effective Date. In either case, the Collateral Agent shall have the right to withhold and pay to itself from the Collateral Fund an amount equal to any amount due and owing to the Collateral Agent, plus any costs and expenses the Collateral Agent shall reasonably believe may be incurred by the Collateral Agent in connection with its resignation or removal. SUCCESSION UPON MERGER, ETC. OF COLLATERAL AGENT Any corporation into which the Collateral Agent in its individual capacity may be merged or converted or with which it may be consolidated, or any corporation resulting from any merger, conversion or consolidation to which the Collateral Agent in its individual capacity shall be a party, or any corporation to which substantially all the corporate trust business of the Collateral Agent in its individual capacity may be transferred, shall be the Collateral Agent under this Collateral Agreement without further act. COMPENSATION AND EXPENSES OF COLLATERAL AGENT
