COMMERCIAL PLEDGE AGREEMENT

COMMERCIAL PLEDGE


This Commercial Pledge (the “Agreement”) is effective [DATE],


BETWEEN: [YOUR COMPANY NAME] (the "Lender"), 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 "Borrower"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at:


[COMPLETE ADDRESS]

THE PARTIES HERETO HAVE AGREED AS FOLLOWS:


1. LOAN

Subject to and in accordance with all the terms and conditions of that certain credit agreement entered into between the Lender and the Borrower bearing formal date of [DATE] as same may be amended and supplemented at any time and from time to time (the “Credit Agreement”), the Lender offered to lend to the Borrower, and the Borrower accepted to borrow from the Lender, an amount equal to the sum of [AMOUNT IN LETTERS] ($[AMOUNT]) (the “Loan”), with interest thereon at the rates stipulated therein.

2. SECURITY
As security for the performance by the Borrower of all its obligations, present and future, direct and indirect, absolute and contingent, toward the Lender hereunder and under the Credit Agreement and the Security Documents (as defined in the Credit Agreement), including, without limiting the generality of the foregoing, the obligation to repay in principal, interest, fees and accessories, all moneys presently owing and due and hereafter to become owing and due to the Lender by the Borrower under the Credit Agreement, the Borrower, in accordance with the provisions of the laws of [COUNTRY], hereby charges and pledges as and by way of a commercial pledge, in favor of the Lender, the following equipment and machinery, to wit:

[DESCRIBE EQUIPMENT/MACHINERY] (the “Property”)

3. PROPERTY
The location of the property of a fixed nature, which is pledged herein, is at the location of the Borrower situated at [FULL ADDRESS];

4. PLEDGE LOCATION
The establishment in the [State/Province] of [STATE/PROVINCE] where are controlled and recorded the movements of the assets pledged herein and which are not of a fixed nature, is located at [FULL ADDRESS];

5. CHANGE OF LOCATION OR ESTABLISHMENT
If the said location or establishment is changed, the Borrower shall immediately inform the