This subordination agreement private companies template has 3 pages and is a MS Word file type listed under our finance & accounting documents.
Sample of our subordination agreement private companies template:
SUBORDINATION AGREEMENT This Subordination Agreement (the "Agreement") is effective [DATE], BETWEEN: [FIRST PARTY NAME] (the "Lender"), 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: [SHAREHOLDER NAME] (the "Shareholder"), an individual residing at: [COMPLETE ADDRESS] AND: [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] WHEREAS [YOUR COMPANY NAME] ("the Lender") has agreed to lend to [NAME] ("the Borrower") the aggregate principal amount of [AMOUNT] and, in its sole discretion, may lend to the Borrower an additional amount not to exceed [AMOUNT] (collectively the "Indebtedness") on the terms and conditions contained in that certain memorandum of loan agreement and that certain grid promissory note each dated as of [DATE] (collectively, the "Loan Agreements"); AND WHEREAS it is a condition of the Loan Agreements that repayment of the Indebtedness be secured by a mortgage, charge, hypothecation, pledge and assignment of the property, assets and undertaking of the Borrower ("the [YOUR COMPANY NAME] Security") on the terms and conditions of that certain general security agreement by the Borrower in favor of the Lender dated as [DATE]; AND WHEREAS the Borrower is also indebted to [SHAREHOLDER NAME] ("the shareholder"), the shareholder of [YOUR COMPANY NAME], and as security therefore has heretofore granted a security interest to and in favor of the Shareholder (the "Shareholder Security") in the property, assets and undertaking of the Borrower pursuant to a general security agreement dated [DATE]; AND WHEREAS it is a condition precedent to the advance of any monies pursuant to the Loan Agreements that the Shareholder be subordinated to [YOUR COMPANY NAME] on the terms and conditions contained herein; NOW THEREFORE this agreement witnesses that in consideration of the premises herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 1. The [YOUR COMPANY NAME] Security shall at all times rank in priority to the Shareholder Security and Shareholder Security is and shall be subject and subordinated to and shall rank subsequent to the [YOUR COMPANY NAME] Security in all respects. 2. The subordination of the Shareholder Security to the [YOUR COMPANY NAME] Security provided for herein shall apply in all events and circumstances regardless of: (a) the date of creation, granting, execution, attachment, registration or perfection of any of the [YOUR COMPANY NAME] Security, or the Shareholder Security; (b) the date of any advance or advances made to the borrower by either the Lender or the Shareholder; (c) the date of default by the Borrower under either the [YOUR COMPANY NAME] Security, or the Shareholder Security or the dates of crystallization of any floating charges constituted by any of the [YOUR COMPANY NAME] Security, or the Shareholder Security; (d) Any priority granted by any principle of law or any statute in [STATE/PROVINCE]; or (e) the giving of or failure to give notice to the Borrower or any other person. 3
