Pledge of Shares of Stock
BE IT KNOWN, for value received, the undersigned____________________________________ (Pledgor) whose address is __________________________________________________________ hereby deposits, delivers to and pledges to _____________________________________ (Pledgee) whose address is ______________________________________________________________ as collateral security, _____ shares of stock of _________________________________ (Corporation) represented as Stock Certificate No _________ to secure the payment of the following described debt owing Pledgee:
It is further agreed:
Pledgee may assign or transfer said debt and the collateral pledged hereunder to any third party.
In the event a stock dividend or further issue of stock in the Corporation is issued to Pledgor, Pledgor shall pledge said shares as additional collateral for the debt.
That during the term of this pledge agreement, and so long as it is not in default, the Pledgor shall have full rights to vote said shares and be entitled to all dividends income, except that stock dividends shall also be pledged.
That during the pendency of this agreement, the Pledgor shall not issue any proxy or assignment of rights to the pledged shares.
Pledgor warrants and represents it has good title to the shares being pledged, they are free from liens and encumbrances or prior pledge, and Pledgor has full authority to transfer said shares as collateral security.
Upon default of payment of the debt, or breach of this pledge agreement, the Pledgee or holder shall have full rights to foreclose on the pledged shares and exercise its rights as a secured party pursuant to Article 9 of the Uniform Commercial Code; and said rights being cumulative with any other rights Pledgee or holder may have against Pledgor.
Pledgor understands that, upon foreclosure, the pledged shares may be sold at public auction or public sale. Pledgor shall be provided reasonable notice of any said intended sale and Pledgor shall have full rights to redeem said shares at any time prior to said sale upon payment of the balance due hereunder, and accrued costs of collection. In the event the shares shall be sold for less than the amount then owing, Pledgor shall be liable for any deficiency.
Upon payment of the obligation for which the shares are pledged, the shares shall be returned to the Pledgor and this pledge agreement shall be terminated.
This pledge agreement shall be binding upon and inure to the benefit of the parties, their successors, assigns and personal representatives.
Upon default Pledgor shall pay all reasonable attorneys' fees and cost of collections.
Signed this _____ day of ____________, 20__.