DEED OF MORTGAGE is made at….. this….. day of……..between Mr. Kushal residing at….. hereinafter referred to as ‘the Borrower’ of the One Part and Mr. Bikram Saluja residing at… hereinafter referred to as the ‘Lender’ of the Other Part.
1. The Borrower is the registered proprietor of a patent and which is more particularly specified in the Schedule hereunder written.
2. The Borrower requires funds to exploit or use the said patent commercially and has requested the Lender to advance him a loan of Rs….. which the Lender has agreed to do on the Borrower executing this Deed.
NOW THIS DEED WITNESSETH that in pursuance of the said agreement and in consideration of and as a security for repayment the said sum of Rs…. lent and advanced by the Lender to the Borrower on the execution of these presents (receipt whereof the Borrower admits) and all the interest and other moneys payable in respect thereof the Borrower as beneficial owner hereby assigns or transfers unto the Lender all the said patent described in the Schedule hereinafter written together with the invention related thereto and all the rights, title and interest of the Borrower in respect of the said patent and the rights and benefits arising out of the registration thereof under the Patents Act 1970 and together with the full and exclusive benefit of the same and all improvements, and extensions in respect thereof TO HOLD the same and all the premises hereby assigned unto the Lender but subject to the covenant for redemption hereinafter contained.
2. And the Lender hereby covenants with the Borrower that in the event of the Borrower repaying the said amount with interest as is hereinafter provided and other moneys payable by him hereunder within the period of redemption hereinafter mentioned, the Lender shall release and retransfer all his right, title, interest hereby created or granted in respect of the said patent.
3. And the Borrower hereby agrees and covenants with the Lender that–
(i) He will repay the said amount of Rs…. with interest on or before the….. day of……
(ii) He will in the meanwhile and until repayment of the said amount in full pay interest thereon at the rate of Rs…… p. c. p.a. by monthly rests, the first of such payment to be made on the…..day of………… and subsequently on the….. day of each and every succeeding month.
(iii) If he fails to pay any Instalment of interest as aforesaid, the Lender will be entitled to charge interest on such arrears of interest at the same rate by way of compound interest.
(iv) If he fails to pay the said amount of the principal on the said due date or any two monthly instalments of interest on their due dates or commits breach of any other term of this Deed the Lender will be entitled to claim back the whole amount with interest and to enforce the security hereby created as hereinafter provided.
4. The Borrower hereby further agrees and undertakes that if the said patent is found to be infringed by anybody else he will take immediate legal steps to protect the patent from such infringement and to claim damages and give intimation of such action to the Lender and that if the Borrower fails to do so, the Lender will be entitled and is hereby authorised to take legal proceedings against the infringement and all the costs charges and expenses incurred by the Lender will be paid by the Borrower to the Lender on demand and until payment they will remain a charge on the said patent.
5. And the Borrower further covenants that if he makes any improvements, additions or alterations in the said patent he will inform the Lender accordingly and take action to register the same and that all such improvements, additions and alterations shall be deemed to form part of the security created along with the said patent as if they were transferred to the Lender by these presents.
6. The Borrower further agrees and undertakes that he will not assign the said patent and grant license in respect thereof to any person during the subsistence of this security hereby created.
7. And it is agreed that until the enforcement of the security hereby created by the Lender as herein after provided the Borrower will be entitled to use and exploit the said patent commercially but he shall not enter into any agreement in respect thereof with any person which will prejudicially affect the right of the Lender hereunder.
8. It is further agreed that if the security hereby created becomes enforceable, as hereinabove provided, the Lender will be entitled to bring the said patent and all other benefits, rights hereby assigned to him to sale either privately or through court and to appropriate the net sale proceeds in repayment of the said debt and other moneys due and payable by the Borrower to the Lender including the costs, charges and expenses incurred by the Lender on account of such legal action to enforce the said security.
9. It is also agreed that in the event of the said security becoming enforceable, the Lender will be entitled either to take possession or appoint a Receiver of the said patent and all the machinery, equipment and literature or other documents in respect thereof.
10. In order to enable the Lender to sell the patent the Borrower hereby appoints the Lender as his Constituted attorney or agent with full power and authority to do all acts and things and execute all documents for the purpose of effecting sale of the said patent by private sale or by auction and for that purpose the Borrower authorises the Lender:
(i) to advertise the sale of the said patent and all rights and benefits appurtenant thereto,
(ii) to appoint an auctioneer if the sale is to be effected by public auction.
(iii) to invite tenders and accept the best offer available for purchase,
(iv) to recover the sale price and after deducting the expenses for sale to appropriate the balance towards the amount due to him and to pay the balance if any to the Borrower.
(v) To execute a deed of assignment in favour of the Purchaser,
(vi) to register such deed of assignment with the Controller of Patents,
(vii) and to do and execute all other acts, deeds, and things as will be necessary to effect the sale of the said Patent and all rights and benefits appurtenant thereto.
IN WITNESS WHEREOF the Borrower has put his hand the day and year first hereinabove written.
THE SCHEDULE ABOVE REFERRED TO
Signed and delivered by the )
withirmamed Borrower Mr. Kushal )
the presence of… )
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