Asset Purchase Agreement
Help
Download our Asset Purchase Agreement template in Word format. This document is located in the Transfer of Business chapter of Edilex's catalogue of Contract Templates.
This icon allows you to preview an example of our Asset Purchase Agreement legal form.
This icon allows you to add the Asset Purchase Agreement template to your shopping cart in order to proceed to its download.
Description
The Sale of Business Agreement is the legal instrument by which a person, called the VENDOR, sells to another person, called the PURCHASER, his business, i.e.: the building, equipment, the inventory, the accounts receivable, etc… The consideration for such sale may be either cash or securities to be issued by the PURCHASER.
Use
We recommend the use of this document when the process of purchase and sale of a business was initiated by a letter of intent similar to the one found in document Y02.200 of the Business Precedents. Since this document contains only the general outlines of the proposed transaction, it is important to complete it with a more detailed agreement.
Table of Contents
0.00 INTERPRETATION
0.01 Definitions
0.01.01 Activities
0.01.02 Agreement
0.01.03 Ancillary Agreement
0.01.04 Assets
0.01.05 Breach
0.01.06 Change in Control
0.01.07 Clientele
0.01.08 Closing Date
0.01.09 Confidential Information
0.01.10 Creditors
0.01.11 Effective Date
0.01.12 Encumber or Encumbrance
0.01.13 Equipment
0.01.14 Event of Default
0.01.15 Force Majeure
0.01.16 Fundamental Provisions
0.01.17 Hazardous Materials
0.01.18 Indemnification Warranty
0.01.19 Intellectual Property
0.01.20 Law
0.01.21 Legal Representatives
0.01.22 Offer
0.01.23 Ordinary Course of Business
0.01.24 PARTY
0.01.25 Person
0.01.26 Prime Rate
0.01.27 Products
0.01.28 Related Person
0.01.29 Subsidiary
0.01.30 Transaction
0.02 Precedence
0.03 Jurisdiction
0.03.01 Governing Law
0.03.02 Non-compliance
0.04 Miscellaneous
0.04.01 Cumulative Rights
0.04.02 Time and Dates
0.04.03 Financial References
0.04.04 References within Agreement
0.04.05 Gender and Number
0.04.06 Headings
0.04.07 Presumptions
0.04.08 Knowledge
0.04.09 Approval
0.04.10 GAAP
1.00 PURPOSE
1.01 Sale
1.02 Conditions
1.02.01 Required by PURCHASER
1.02.02 Required by VENDOR
1.02.03 Choice
2.00 CONSIDERATION
2.01 Base Amount
2.02 Adjustments
2.03 Allocation
2.04 GST/QST
3.00 TERMS OF PAYMENT
3.01 Deposit
3.02 Initial Instalment
3.03 Balance
3.04 Third Party Claim
3.05 Interests
3.06 Promissory Note
3.07 Maturity
3.08 Payment by Anticipation
3.09 Third Party Owner
3.10 Loss of Term
4.00 SECURITY
4.01 In favour of PURCHASER
4.02 In favour of VENDOR
4.03 Movable Hypothec without Delivery
4.04 Immovable Hypothec
4.05 SURETYSHIP
4.06 Indemnification Warranty
5.00 MUTUAL REPRESENTATIONS AND WARRANTIES
5.01 Status
5.02 Authority
5.03 Binding Agreement
5.04 Canadian Resident
5.05 Commission
5.06 Insurance
5.07 Nominee
5.08 Fundamental Provisions
5.09 Disclosure
6.00 REPRESENTATIONS AND WARRANTIES OF THE PURCHASER
6.01 Authority
6.02 Canadian Resident
6.03 Nominee
7.00 REPRESENTATIONS AND WARRANTIES OF THE VENDOR
7.01 State/Constitution
7.01.01 Status
7.01.02 Authority
7.01.03 Insolvency
7.02 Assets
7.02.01 Ownership
7.02.02 Quality
7.02.03 Safety
7.02.04 Peaceful Enjoyment
7.02.05 Encumbrance
7.02.06 Inventory
7.03 Human Resources
7.03.01 Labour Standards
7.03.02 Health and Safety
7.03.03 Collective Agreement
7.03.04 Pension Plans
7.03.05 Pay Equity
7.03.06 Key Persons
7.04 Corporate Finance
7.04.01 Loan Agreements
7.04.02 Default
7.04.03 Breach
7.05 Financial Management
7.05.01 Financial Statements and Balance Sheet
7.05.02 Financial Position
7.05.03 Suretyshi and Guarantees
7.05.04 Accounting Methods
7.05.05 Advances
7.05.06 Arrears
7.06 Tax Status
7.06.01 Taxation
7.06.02 Deductions at Source
7.07 Occupancy Titles
7.07.01 Valid Titles
7.07.02 Lease
7.08 Procurement
7.08.01 Equipment
7.08.02 Material Agreements
7.08.03 Suppliers
7.08.04 Parts
7.09 Operations
7.09.01 Material Agreements
7.09.02 Clientele
7.09.03 Warranties
7.09.04 Conduct of Business
7.09.05 Discriminatory Practices
7.09.06 Behavior
7.10 Permits and licenses
7.10.01 List
7.10.02 Situation
7.10.03 Compliance
7.10.04 Restriction
7.11 Environment
7.11.01 No Use
7.11.02 Use in Compliance
7.11.03 Location of Use
7.11.04 Notice of Default
7.12 Intellectual Property
7.12.01 Miscellaneous
7.12.02 Copyright
7.12.03 Trade-marks
7.12.04 Patents
7.12.05 Trade Secrets /Know-How
7.13 Computer / Internet
7.13.01 Equipment
7.13.02 Software
7.13.03 Domain Names
7.13.04 Electronic Commerce
7.14 Advertising and Promotional Means
7.15 Marketing
7.15.01 Commercial Pratices
7.15.02 Consumer Protection
7.16 Customer Credit
7.16.01 Accounts Receivable
7.16.02 Consignment
7.17 Insurance
7.17.01 List of Policies
7.17.02 Coverage
7.17.03 Good Standing
7.17.04 Claims
7.18 Legal Proceedings
7.19 Miscellaneous
7.19.01 Creditors
7.19.02 Sufficiency
7.19.03 Use
7.19.04 Waiver and Discharge
7.19.05 Reason for Sale
7.19.06 Disclosure
8.00 MUTUAL DUTIES AND OBLIGATIONS
8.01 Confidential Information
8.01.01 Undertaking
8.01.02 End of Agreement
8.02 Disclosure of Agreement
9.00 DUTIES AND OBLIGATIONS OF THE PURCHASER
9.01 Inventory
9.02 Insurance
9.02.01 Undertaking
9.02.02 Copy
9.02.03 Rejection, Cancellation or Renewal
9.02.04 Default
9.02.05 Authorization
9.02.06 Procedure
9.03 Acceptance of Delivery
9.04 Contributions
9.05 Lease
9.06 Staff
10.00 DUTIES AND OBLIGATIONS OF THE VENDOR
10.01 Transition
10.02 Indemnification
10.02.01 “Loss”
10.02.02 Scope
10.02.03 Procedure
10.02.04 Deductible
10.02.05 Prescription
10.02.06 Limitation on claims
10.03 Delivery
10.04 Non-competition
10.04.01 Scope
10.04.02 Adjustments
10.04.03 Penalty
10.04.04 Additional Remedy
10.05 Non-solicitation of Clientele
10.06 Non-solicitation of Staff
10.07 Inventory
10.08 Dismissals
10.09 Leases and Leasing Agreements
10.10 Corporate name
11.00 SPECIAL PROVISIONS
11.01 Assignment
11.01.01 Prohibition
11.01.02 Effect of Breach
11.01.03 Exception
11.02 Force Majeure
11.02.01 No Default
11.02.02 Duty
11.02.03 Rights of Other PARTY
11.03 Relationship
11.03.01 Independent Contractors
11.03.02 No Control over Performance
11.03.03 No Authority to Bind
11.04 Further Assurances
11.05 Other Remedies
11.05.01 Choices
11.05.02 No Limitations
11.06 Prescription
12.00 GENERAL PROVISIONS
12.01 Notice
12.02 Dispute Resolution
12.02.01 Good Faith Negotiations
12.02.02 Mediation
12.02.03 Arbitration
12.03 Election
12.04 Counterparts
12.05 Amendment
12.06 Waiver of Rights
12.07 Electronic Transmission
12.08 Language
13.00 TERMINATION
13.01 Mutual Consent
13.02 With Notice from VENDOR
13.03 With notice from PURCHASER
14.00 EFFECTIVE DATE
14.01 Retroactivity
14.02 Execution
14.03 Deferral
15.00 DURATION
15.01 Instantaneous
15.02 Survival
16.00 SCOPE
SCHEDULE A – EXCERPT FROM A RESOLUTION OF THE VENDOR
SCHEDULE B – EXCERPT FROM A RESOLUTION OF THE PURCHASER
SCHEDULE 0.01.04 (A) - IMMOVABLE
SCHEDULE 0.01.04 (C) – EQUIPMENT, MACHINERY AND TOOLS
SCHEDULE 0.01.04 (D) – AUTOMOTIVE MATERIAL
SCHEDULE 0.01.04 (E) – MOVABLE GOODS AND OFFICE EQUIPMENT
SCHEDULE 0.01.04 (F) – COMPUTING AND ELECTRONIC EQUIPMENT
SCHEDULE 0.01.04 (J) – PERMITS AND LICENCES
SCHEDULE 0.01.04 (K) – INTELLECTUAL PROPERTY
SCHEDULE 0.01.04 (L) - LEASE
SCHEDULE 2.02 - ADJUSTMENTS
SCHEDULE 3.06– PROMISSORY NOTE
SCHEDULE 4.03 – MOVABLE HYPOTHEC WITHOUT DELIVERY
SCHEDULE 4.05– SURETYSHIP
SCHEDULE 7.02.04 – LEASE AND LEASING AGREEMENTS
SCHEDULE 7.02.05 – ENCUMBRANCE
SCHEDULE 7.03.03 – COLLECTIVE LABOUR AGREEMENTS
SCHEDULE 7.03.04 – PENSION PLAN
SCHEDULE 7.04.01 – LOAN AGREEMENTS
SCHEDULE 7.05.01 – FINANCIAL STATEMENTS ON ............................ 20...
SCHEDULE 7.08.02 – MATERIAL AGREEMENTS (PROCUREMENT)
SCHDEULE 7.09.01 – MATERIAL AGREEMENTS (OPERATIONS)SCHEDULE 7.09.03 – WARRANTIES
SCHEDULE 7.17.01 – INSURANCE POLICIES
SCHEDULE «…» - INTERVENTION OF THE LESSOR
SCHEDULE «…» - INTERVENTION OF A SHAREHOLDER, DIRECTOR OR OTHER OFFICER
SCHEDULE «…» - INTERVENTION OF VENDOR’S SPOUSE
Why use our contract forms?
