Pledge Of Shares Of Stock

Document Sample
Pledge Of Shares Of Stock Powered By Docstoc
					                           PLEDGE OF SHARES OF STOCK


This Pledge of Shares of Stock is executed this (insert date) by and between:

                      (insert name), of legal age, Filipino and a resident
                      of (state address), hereinafter referred to as the

                                               - and–

                      (insert name), a corporation duly organized and
                      existing in accordance with laws of the Republic of
                      the Philippines, with principal offices at (state
                      address), represented in this act by its President,
                      (state name of representative), hereinafter referred
                      to as the PLEDGEE.


WHEREAS, the Pledgor has secured a loan (hereinafter referred to as the “Debt”) from
Pledgee in the amount of (state amount of loan), receipt of which is acknowledged and
confirmed herein by the parties.

WHEREAS, Pledgor, as security for said loan (hereinafter referred to as “Collateral”),
hereby deposits, delivers to and pledges to Pledgee shares of stock in (state name of
corporation), represented by the following stock certificates:

Certificate Number             No. of Shares                   Total Par Value

NOW THEREFORE, the parties agree as follows:

1.     Pledgee may assign or transfer said Debt and the Collateral pledged hereunder
       to any third party provided fifteen (15) days prior written notice is given to Pledgor
       and Pledgor is given an opportunity to redeem and pay the Debt within fifteen
       (15) days from notice.

2.     In the event a stock dividend or further issue of stock in the Corporation is
       issued, Pledgor shall pledge said shares as additional collateral for the debt.
3.    During the term hereof and as long as there is no default, Pledgor shall have full
      rights to vote said shares and be entitled to all dividends income, except that
      stock dividends shall be pledged.

4.    During the pendency of this agreement, Pledgor shall not issue any proxy, voting
      trust agreement or assignment of rights to the pledged shares.

5.    Pledgor warrants and represents good title to the shares which are free from
      liens and encumbrances or prior pledge with full authority to transfer said shares
      as collateral security.

6.    Upon default of payment of the debt, or breach of this agreement, Pledgee or
      transferee shall have full rights to foreclose pursuant to law.

7.    Pledgor understands that upon foreclosure the pledged shares may be sold at
      public auction or public sale with right to receive reasonable prior written notice of
      any said intended sale and with full rights to redeem said shares at any time prior
      to said sale upon payment of the balance due, 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.

8.    Upon payment of the debt, the shares shall be returned to Pledgor and this
      pledge agreement shall be terminated.

9.    This pledge agreement shall be binding upon and inure to the benefit of the
      parties, their successors, assigns and personal representatives.

10.   Upon default the Pledgor shall pay all reasonable attorneys' fees and cost of

11.   This Deed shall be governed and constructed in accordance with the laws of the

12.   All expenses for notarization, Documentary Stamp Tax and other expenses
      incident to this contract shall be for the exclusive account of the Pledgee.

13.   This Agreement constitutes the entire understanding between the parties and
      may only be modified, altered or amended only with the prior written consent of
      the party of or parties against whom, such modification, alteration, or amendment
      shall take effect.

IN WITNESS WHEREOF, the parties have executed this Agreement on the date and
place above specified.

      PLEDGOR                                                       PLEDGEE

                           SIGNED IN THE PRESENCE OF:

________________                                            ___________________


       BEFORE ME, this (insert date) in (insert place), personally appeared:

Name                  CTC No.               Issued at              Issued on

known to me to be the same persons who executed the foregoing instrument consisting
(state number of pages) pages including this Acknowledgment, and who acknowledged
to me that the same is their voluntary and free act and deed and those of the parties

IN WITNESS WHEREOF, I set my hand and affix my notarial sea on the date and place
above written.

                                                                          Notary Public

Doc. No. _____;
Page No. _____;
Book No. _____;
Series of ______.

Shared By: