General Terms & Conditions
1. Definitions
1.1 “Company” shall mean [name of company], a [type of company] incorporated in [state/province], having its registered office at [address].
1.2 “Pledge Agreement” shall mean this Agreement on pledging shares of the Company by [name of pledgor], a [type of company] incorporated in [state/province], having its registered office at [address], in favor of the Company.
1.3 “Accompanying Documents” comprises the documents executed at the time of entering into the Pledge Agreement, such as [list of documents].
1.4 All references to the “Shareholder Agreement” shall mean the [name or description] executed by the Company and its shareholders on the [date] and registered with the [country] [agency or department].
2. Pledgors Obligations
2.1 Pledgor shall ensure that the Companys shareholding in the pledgors capital stock is always a security for the Companys debts under the Pledge Agreement, in accordance with the Agreements terms and conditions.
2.2 The Pledgor must always ensure that such a security exists in the form of the Companys shareholding in the Pledgors capital stock, and the Pledgor shall not grant or attempt to grant any security that supersedes, takes priority to, or diminishes that security provided by the shareholding of the Company.
2.3 Pledgor shall also abide by any other terms or obligations which may be applicable as set out in the Agreement or in the Accompanying Documents.
3. Companys Obligations
3.1 The Company shall not exercise any right or privileges of title or ownership over the shares or voting rights of the Pledgor in any manner except as specifically provided by the Pledge Agreement.
3.2 The Company shall take all reasonable steps to protect, maintain, and enforce the security of the Pledgors shareholding in the Companys capital stock, in accordance with the terms and conditions set out in the Pledge Agreement.
4. Dispute Resolution
4.1 In the event of any dispute arising out of or in connection to the Pledge Agreement, both Pledgor and the Company agree to seek an amicable resolution first and approach the court as a last resort.
4.2 Any attempt to commence court proceedings shall be made only after a reasonable period of negotiation, and shall be made in [country] in accordance with the laws of [country].
5. Miscellaneous
5.1 In the event of any conflict between the Pledge Agreement, the Accompanying Documents, and the Shareholder Agreement, precedence shall be given to the Shareholder Agreement.
5.2 The Pledge Agreement may be amended only in writing and by mutual consent.
5.3 The normal provisions of law and equity shall be given precedence in the interpretation and enforcement of the Pledge Agreement.
IN WITNESS WHEREOF, the Parties hereto have executed this Pledge Agreement this [date].
[signature of Pledgor] ______________________________
[name of Pledgor] ______________________________
[signature of Company] ______________________________
[name of Company] ______________________________