Common use of Sale Upon Default Clause in Contracts

Sale Upon Default. Pledgor and Secured Party acknowledge and agree that the Shares are restricted, unregistered stock that is difficult to value, and which may not be sold in the public market. The parties further agree that the Shares are not subject to sale in a “recognized market” as that term is described in Section 9-504 of the Uniform Commercial Code. The Pledgor and the Secured Party wish to agree to reasonable standards for conducting a commercially reasonable sale of the Shares. Without limiting rights and remedies otherwise available to the Pledgee, the parties agree that compliance with the following steps shall satisfy requirements of a commercially reasonable sale: a. The sale may be either a public or a private sale, at the Secured Party’s discretion, and it may be for all or any portion of the Shares; b. The Secured Party shall set a date for public sale of the Shares, or a date after which a private sale may occur, which date shall be not less than 30 days after the date notice of the sale is given to the Pledgor, and shall send written notification to the Pledgor in advance regarding the date and the time of the public sale, or the date after which a private sale may occur; c. Any public sale shall take place at a site in California selected by the Secured Party; d. Immediately upon request, Pledgor shall provide the Secured Party with information requested by the Secured Party for compliance with state and federal securities laws; e. At any sale of any of the Shares, the Secured Party may restrict the prospective bidders or purchasers to persons or entities who, by certain representations made by them, would render registration of the sale under the state or federal securities laws unnecessary.

Sale Upon Default. Pledgor and Secured Party acknowledge and agree that the Shares are restricted, unregistered stock that is difficult to valuevalue and for which no public market exists. Notwithstanding the proposed initial public offering of common stock of the Secured Party, and which may not be sold in the public market. The parties further agree that the Shares are not currently subject to sale in a “"recognized market” " as that term is described in Article 9, Section 9-504 of the Uniform Commercial Code. The Pledgor and the Secured Party wish to agree to reasonable standards for conducting a commercially reasonable sale of the Shares. Without limiting rights and remedies otherwise available to the PledgeeSecured Party, the parties agree that compliance with the following steps shall satisfy requirements of a commercially reasonable sale: a. 10.1 The sale may be either a public or a private sale, at the Secured Party’s 's discretion, and it may be for all or any portion of the Shares;. b. 10.2 The Secured Party shall set a date for public sale of the Shares, or a date after which a private sale may occur, which date shall be not less than 30 days after the date notice of the sale is given to the Pledgor, and shall send written notification to the Pledgor in advance regarding the date and the time of the public sale, or the date after which a private sale may occur;. c. 10.3 Any public sale shall take place at Sacramento, California or any other site within the State of California which the parties have agreed to. 10.4 Within seven days of receipt of a site in California selected by the Secured Party; d. Immediately upon written request, Pledgor shall provide the Secured Party with information requested by the Secured Party for compliance with state and or federal securities laws;. e. 10.5 At any sale of any of the Shares, the Secured Party may restrict the prospective bidders or purchasers to persons or entities who, by certain representations made by them, would render registration of the sale under the state or federal securities laws unnecessary.