Share Pledge Agreement Template for United States

A Share Pledge Agreement serves as a crucial security document in U.S. financing transactions, enabling shareholders to use their shares as collateral for loans or other obligations. The agreement must comply with UCC requirements and relevant state laws to create an enforceable security interest. It typically includes detailed provisions on the pledge mechanism, perfection requirements, voting rights, dividends, and enforcement procedures. Share Pledge Agreements are commonly used in corporate financing, acquisition financing, and other secured lending transactions where shares represent valuable collateral.

1. Parties: Identification of pledgor and pledgee

2. Background: Context of the pledge arrangement and underlying obligations

3. Definitions: Key terms used throughout the agreement including defined terms from UCC Articles 8 and 9

4. Pledge and Security Interest: Core provisions creating the security interest in the shares, including perfection requirements

5. Representations and Warranties: Statements about ownership, authority to pledge, and compliance with securities laws

6. Covenants: Ongoing obligations of the pledgor including maintenance of security interest and regulatory compliance

7. Events of Default: Circumstances triggering enforcement rights and remedies

8. Enforcement Rights: Pledgee's rights upon default including UCC remedies and securities law compliance

9. Governing Law: Applicable law and jurisdiction provisions