Common use of MOVEABLE HYPOTHEC Clause in Contracts

MOVEABLE HYPOTHEC. As continuing and collateral security for the due and punctual performance of Tenant’s obligations under this Lease, the Tenant hypothecates in favour of Landlord, for a sum equal to the Net Rent and the Additional Rent payable by the Tenant during a two-year period under the Term of the Lease and interest thereon at the Prime Rate plus two percent (2%), calculated semi-annually and not in advance, a universality consisting of all moveable improvements, equipment, machinery, furniture, and fixtures of every kind now or hereafter located in, on or upon the Premises, including all indemnities or proceeds paid or payable to Tenant under insurance policies pertaining to or covering such movables. The hypothec herein created does not constitute a floating hypothec under Article 2715 of the Civil Code of Québec. Upon the occurrence of an event of default, the security hereby constituted shall become enforceable and Landlord shall be entitled to immediately exercise any and all rights arising from such hypothec without any notice or delay except as may be required by law. The hypothec referred to in this Section 20.21 shall constitute a first ranking charge on all the assets charged thereunder. However, should Tenant obtain a bona fide financing for the operation of its business in the Premises from a person acting at arm’s length with Tenant and the persons who control, directly or indirectly, Tenant (the “Tenant’s Lender”), Landlord shall execute, at Tenant’s cost, a subordination agreement in favour of Tenant’s Lender in a form and substance satisfactory to Landlord and its legal counsel, acting reasonably, provided that Tenant is not then in default and provided further that the security granted to Tenant’s Lender shall not affect any asset which is or may become, under the terms of this Lease, the property of Landlord. The Tenant covenants with Landlord to furnish the Premises with and maintain therein a sufficient quantity of furniture, fixtures and other moveable effects to secure the payment of twelve (12) months’ rent. The said furniture, fixtures and other effects shall at all times be and remain the absolute and exclusive property of Tenant free and clear of any privileges, liens, charges or encumbrances save for those in favor of Landlord. The Tenant undertakes to execute, in favour of the Landlord and upon its request, a first ranking moveable hypothec of a value sufficient to secure the payment of twelve (12) months Rent, and to execute and sign promptly any document submitted by the Landlord to give effect to same.

MOVEABLE HYPOTHEC. a) As continuing and collateral security for the due and punctual performance payment of Tenant’s obligations Rent and all other amounts now owing or which may hereafter become owing to the Landlord by the Tenant under this Lease, as same may be amended, renewed, extended or supplemented, and as continuing and collateral security for the due and punctual performance and fulfilment of all other obligations, covenants and agreements of the Tenant contained in this Lease, as same may be amended, renewed, extended or supplemented, the Tenant hereby hypothecates in favour of the Landlord, with effect as of and from this date, for a the sum equal to the Net Rent and the Additional Rent payable by the Tenant during a two-year period under the Term of the Lease SEVENTY THOUSAND dollars ($70,000.00) and interest thereon at the Prime Stipulated Rate plus two percent in force on the date hereof (2%being 13 % per annum), calculated semi-annually and annually, not in advance, a all of the rights, title and interests of the Tenant in and to the following universality consisting (hereinafter referred to as the "Universality"): i. the universality of all moveable improvements, equipment, machinery, furniture, furniture and trade fixtures of every kind now or hereafter kind, present and future, located in, on or upon the Premises or used directly or indirectly in connection with the business of the Tenant carried on at the Premises, including all indemnities or proceeds paid or payable to Tenant under insurance contracts or policies pertaining to or covering such movablesmoveables. ii. the universality of all property in stock, raw material, work in process and inventory, present and future, situated on or upon the Premises or used directly or indirectly in connection with the business of the Tenant carried on at the Premises, including all indemnities or proceeds paid under insurance contracts or policies pertaining to or covering such moveables. b) The hypothec herein created does in favour of the Landlord shall not constitute nor be construed as a floating hypothec under Article 2715 of the Civil Code of Québec. Quebec. c) The security hereby created is without delivery. d) Upon the occurrence of an event Event of default, Default the security hereby constituted shall become enforceable and the Landlord shall forthwith be entitled to immediately exercise any and all of the rights arising provided for in Chapter V of Title III of Book VI of the Civil Code of Quebec and in the Code of Civil Procedure of Quebec. e) Except for the financing of its operation, the Tenant will not, and will not permit, to be hypothecated, pledged, charged or encumbered any inventory, equipment, furniture or trade fixtures which may, from such time to time, be on the Premises, in any manner whatsoever, including, without limiting the foregoing, by way of a moveable hypothec, trust deed, security under the Bank Act, conditional sales agreement, consignment sales agreement, instalment sales agreement, sale with right of redemption or in any other manner in which movables may guarantee the obligations of the Tenant, in conformity with federal or provincial legislative provisions (the "Guarantee). f) Subject only to the subordination contemplated hereinafter, the moveable hypothec without any notice or delay except as may be required by law. The shall and must constitute and remain at all times a first ranking charge on all moveable assets charged thereunder and the Tenant hereby represents an warrants to, and covenants with the landlord that the aforesaid moveable hypothec referred to in this Section 20.21 shall constitute and remain during the whole Term and any renewal or extension thereof, a first ranking charge on all the moveable assets charged thereunder. However, should the Tenant obtain a bona fide financing for the operation of its business in the Premises from a person Canadian chartered bank or other reputable financial lending institution acceptable to Landlord acting at arm’s length with Tenant and the persons who control, directly or indirectly, Tenant reasonably (the “Tenant’s 's Lender”), the Landlord shall execute, at the cost of the Tenant’s cost, a subordination agreement in favour favor of Tenant’s Lender such bona fide financing in a form and substance contents satisfactory to the Landlord and its legal counsel, acting reasonably, provided that Tenant is not then pays to the landlord all costs incurred in default relation thereto, including without restriction legal costs, and provided further that the that, no security granted or to be granted to the Tenant’s 's Lender shall not affect or in any manner whatsoever charge any asset which is or may becomemay, under the terms of this Lease, become the property of Landlord. The Tenant covenants with Landlord to furnish the Premises with and maintain therein a sufficient quantity of furniture, fixtures and other moveable effects to secure the payment of twelve (12) months’ rent. The said furniture, fixtures and other effects shall at all times be and remain the absolute and exclusive property of Tenant free and clear of any privileges, liens, charges or encumbrances save for those in favor of Landlord. The Tenant undertakes to execute, in favour of the Landlord and upon its request, a first ranking moveable hypothec of a value sufficient to secure the payment of twelve (12) months Rent, and to execute and sign promptly any document submitted by the Landlord to give effect to samelandlord.