Common use of Additional Guarantee Clause in Contracts

Additional Guarantee. In order to ensure full and timely payment of any amounts owed to the Purchaser Indemnified Parties by the Sellers Indemnifying Parties relating to any Losses, the Sellers create a pledge over the twenty (20%) shares owned by them in favor of the Purchaser Indemnified Parties, in accordance with Articles 1.431 and following of the Brazilian Civil Code, and Articles 39, 100 and 113 of the Corporations Law (“Additional Guarantee”). 7.10.1. The Additional Guarantee is created as a first-ranking pledge and will have priority over any other lien, encumbrance or any other guarantee created over the twenty (20%) shares owned by the Sellers.