Common use of Pledge Right Clause in Contracts

Pledge Right. 2.1 The Pledgors assign, convey to the Pledgee, for its benefit, a pledge over and security interest in all of their respective shares in the company to secure all and any Secured Indebtedness. 2.2 In order to avoid any misunderstanding, despite of the disappearance of party of the Secured Indebtedness, the Pledgors assign, convey to the Pledgee, for its benefit, a pledge over and security interest in all of their respective Shares in the company as a security of the remaining part of the Secured Indebtedness in accordance with the provisions of this Agreement. 2.3 Within the effective period of this Agreement, in case that the Pledgee exercise the Option and therefore obtains all or part of the Shares, the relative Pledge over that part of Share disappear in proportion as of the execution date of the Shares transfer and the Shares pledged by the Pledgors reduce in the same proportion. The Pledgee and the Pledgors shall effect the registration, or changing registration or record, as set forth in Article 4.2 hereunder, with the competent administration for industry and commerce. 2.4 The Pledge under this Agreement refers to the preferential rights enjoyed by the Pledgee in receiving proceeds from auction or sale of the Shares pledged by the Pledgors to the Pledgee