This repurchase agreement equipment template has 6 pages and is a MS Word file type listed under our production & operations documents.
Sample of our repurchase agreement equipment template:
REPURCHASE AGREEMENT This Repurchase Agreement (the "Agreement") is effective [DATE], BETWEEN: [YOUR COMPANY NAME] (the "Vendor"), 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: [COMPANY NAME] (the "Lender"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] AND: [COMPANY NAME] (the "Borrower"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] RECITALS: A. Vendor wishes to sell the equipment described in Schedule A (the "Equipment") to [COMPANY NAME] (the "Borrower"). B. [COMPANY NAME] ("the Lender") has agreed to lend [AMOUNT] to the Borrower for the purpose of assisting the Borrower in purchasing the Equipment from the Vendor and has been granted a moveable hypothec without delivery on the Equipment by the Borrower pursuant to a contract of loan and hypothec (the "Hypothec") entered into between the Borrower and the Lender on [DATE], which Hypothec was registered on the Register of Personal and Movable Real Rights on [DATE] under the number. C. Vendor and Lender have agreed that in the event that, due to a default or failure by the Borrower to fulfill its obligations under the Hypothec, should the Lender elect to exercise its rights of action against the Borrower, Vendor shall use its best efforts to remarket the Equipment. D. Vendor and Borrower have agreed that in the event that the Lender elects to exercise its hypothecary recourses against the Borrower, Vendor shall purchase the Equipment for the price and on the conditions set forth herein. IN CONSIDERATION of the recitals and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows: 1. REMARKETING If the Borrower is at any time in default of its obligations under the Hypothec and the Lender intends to exercise its hypothecary rights of action against the Borrower, then the Lender shall give written notice thereof to the Vendor (the "Notice") prior to exercising said rights and the Vendor shall, during a period of [NUMBER] days (the "Remarketing Period"), use its best efforts to remarket the Equipment and to maximize the proceeds therefrom. All dispositions of the Equipment shall be at a price at least equal to the Adjusted Value of Equipment and on an "as is, where is" basis (without any representations or warranties from the Lender of any kind whatsoever except that the Equipment is not encumbered as a result of the Lender's actions). Vendor agrees to remarket the Equipment in a manner which will not favor the disposition of equipment owned by the Vendor over the Equipment. Any proceeds of sale of Equipment received by Vendor shall be received and held by Vendor in trust for the Lender and separate and apart from the Vendor's own funds and shall be remitted forthwith to the Lender. In the event that such proceeds are not remitted to the Lender within [NUMBER] days of Vendor's receipt thereof, Vendor shall pay to the Lender interest on such proceeds at a rate of [%] per annum, accruing from the date of receipt until paid to the Lender. If the net proceeds from remarketing any Equipment exceed the damages and other amounts due to the Lender under the Hypothec on the Equipment, the Lender shall pay a fee to Vendor for its services hereunder equal to the amount of such excess. Such fee shall be paid upon receipt by the Lender of such remarketing proceeds and, with Lender Name's prior consent, may be deducted by Vendor from such remarketing proceeds before they are remitted to the Lender. The foregoing is subject to the Lender being able to subsequently take the Equipment in payment by the voluntary or forced surrender of the Equipment pursuant to the exercise of its hypothecary rights under the Hypothec and deliver same to the new purchaser. 2. REPURCHASE If the Borrower is at any time in default of its obligations under the Hypothec, the Notice has been given, the Remarketing Period has expired without result and: 2.1 The Lender exercises its hypothecary right under the Hypothec to take the Equipment in payment of Borrower's obligations under the Hypothec and Borrower voluntarily surrenders the Equipment to the Lender, then the Vendor shall immediately upon receipt of a written request from the Lender to such effect, purchase the Equipment from the Lender on an "as is, where is" basis (without any representation or warranty from the Lender of any kind whatsoever except that the Equipment is not encumbered as a result of the Lender's actions) and shall pay to the Lender, as the purchase price for such Equipment , an amount equal to the Adjusted Value of Equipment. 2.2 The Lender exercises its hypothecary right under the Hypothec to sell the Equipment itself or a subsequent hypothecary creditor or the Borrower requires the Lender to abandon the taking in payment and sell the Equipment itself, then the Vendor shall: (i) immediately upon receipt of a written request from the Lender to such effect, purchase the Equipment from the Lender on an "as is, where is" basis (without any representation or warranty from the Lender of any kind whatsoever except that the Equipment is not encumbered as a result of the Lender's actions) and shall pay to the Lender, as the purchase price for such Equipment , an amount equal to the Adjusted Value of Equipment, in the event that the Lender elects to proceed by sale by agreement; (ii) immediately upon receipt of a written request from the Lender to such effect, submit an irrevocable and binding tender to the Lender for the purchase of the Equipment on an "as is, where is" basis (without any representation or warranty from the Lender of any kind whatsoever except that the Equipment is not encumbered as a result of the Lender's actions) at a purchase price equal to the Adjusted Value of Equipment and shall purchase and pay for the Equipment in accordance with the tender if said tender is accepted, in the event that the Lender elects to proceed by sale by a call for tenders; or (iii) immediately upon receipt of a written request from the Lender to such effect, submit an irrevocable and binding bid to the Lender for the purchase of the Equipment on an "as is, where is" basis (without any representation or warranty from the Lender of any kind whatsoever except that the Equipment is not encumbered as a result of the Lender's actions) at a purchase price equal to the Adjusted Value of Equipment and shall purchase and pay for the Equipment in accordance with the bid if such bid is accepted, in the event that the Lender elects to proceed by sale by public auction.
