Lien Agreement Document

LIEN AGREEMENT

This Lien Agreement (the "Agreement") is made effective as of , by and between Lienholder: a Individual Corporation LLC, and Debtor: a Individual Corporation LLC.

RECITALS

WHEREAS, Debtor is indebted to Lienholder in the principal aggregate amount of $ (the "Obligation"), evidenced by obligations described in this Agreement; and

WHEREAS, Debtor desires to grant, and Lienholder desires to accept, a security interest in the Collateral described below to secure payment and performance of the Obligation.

WHEREAS, the parties intend that this Agreement create in favor of Lienholder a valid, enforceable, and perfected security interest to the extent provided herein.

NOW, THEREFORE, in consideration of the mutual covenants and for other good and valuable consideration, the parties agree as follows:

1. DEFINITIONS

For purposes of this Agreement, the following terms shall have the meanings set forth below. "Collateral" means the property described in Section 2. "Obligation" means the indebtedness and all other obligations secured by this Agreement, whether now existing or hereafter arising.

2. GRANT OF LIEN; DESCRIPTION OF COLLATERAL

Debtor hereby grants to Lienholder a continuing security interest, lien, and charge on and against all of Debtor's right, title and interest in and to the following described property (collectively, the "Collateral"):

The security interest granted hereunder secures all Obligations, including principal, interest, fees, expenses, and other charges arising under or related to the Obligation.

3. PERFECTION; FILING

Debtor authorizes Lienholder to file one or more financing statements, continuation statements, amendments, or other instruments necessary or desirable to perfect and protect Lienholder's security interest in the Collateral. Debtor shall execute all instruments and take all actions reasonably requested by Lienholder to effect perfection of the security interest.

4. REPRESENTATIONS AND WARRANTIES

Debtor represents and warrants that: (a) Debtor has good and marketable title to the Collateral, free and clear of any other liens or security interests except those disclosed to Lienholder in writing; (b) Debtor has full power and authority to grant the security interest; and (c) to Debtor's knowledge, no event has occurred that would constitute a default under any agreement that would materially impair Debtor's ability to perform the Obligation.

5. COVENANTS

Until the full and final payment and performance of the Obligations, Debtor shall: (a) maintain the Collateral in good condition; (b) not sell, transfer, encumber or otherwise dispose of the Collateral except in the ordinary course of business with prior written consent of Lienholder; and (c) promptly notify Lienholder of any event that materially impairs the value or marketability of the Collateral.

6. DEFAULT AND REMEDIES

An Event of Default occurs if Debtor fails to pay any amount when due, breaches any representation, warranty, covenant or obligation under this Agreement, becomes insolvent, or seeks protection under bankruptcy or similar laws. Upon an Event of Default, Lienholder shall have all rights and remedies provided by this Agreement and applicable law, including without limitation the right to take possession of and sell or otherwise dispose of the Collateral, to apply proceeds to the Obligation, and to recover deficiency amounts and costs of collection, including reasonable attorneys' fees.

7. REMEDIES CUMULATIVE

All remedies provided in this Agreement are cumulative and not exclusive of any other remedies available at law or in equity. Lienholder may exercise any remedy without waiving any other remedy and may pursue multiple remedies concurrently or consecutively.

8. NOTICES

All notices, requests, demands, and other communications required or permitted under this Agreement shall be in writing and delivered to the addresses set forth below, or to such other address as a party may specify in writing in accordance with this Section.

9. FEES; COSTS

Debtor shall pay all costs and expenses reasonably incurred by Lienholder in connection with the protection, preservation, perfection, enforcement or realization of the security interest, including filing fees, appraisal fees, repossession and storage costs, and reasonable attorneys' fees and costs, whether or not a lawsuit is filed.

10. GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the state specified below, without regard to conflict of law principles.

11. ASSIGNMENT

Lienholder may assign its rights and obligations hereunder in whole or in part. Debtor may not assign its obligations without the prior written consent of Lienholder, which consent shall not be unreasonably withheld.

12. AMENDMENT; WAIVER

No amendment, modification or waiver of any provision of this Agreement shall be effective unless in writing and signed by the party against whom enforcement is sought. No failure or delay by Lienholder in exercising any right or remedy shall operate as a waiver.

13. COUNTERPARTS; ELECTRONIC SIGNATURES

This Agreement may be executed in one or more counterparts, each of which shall be deemed an original and all of which together shall constitute one instrument. Signatures delivered by electronic transmission shall be binding and treated as original signatures.

14. ENTIRE AGREEMENT; SEVERABILITY

This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements and understandings. If any provision of this Agreement is held invalid or unenforceable, the remaining provisions shall remain in full force and effect.

15. ADDITIONAL PROVISIONS

The parties acknowledge that they have had the opportunity to seek independent legal counsel prior to executing this Agreement and that they fully understand the rights and obligations created herein.

Sign Now