Common use of Equity Pledge Clause in Contracts

Equity Pledge. In order to secure the full and punctual payment of the difference between the amount deposited into the Escrow Account and the total purchase price, each Party B hereby agrees to, as the owner of the equity of FORWELL, create a pledge (the “Pledge”) in favor of Party A over its corresponding equity according to their equity ratio as a continuing security for its payment of the equity transfer price on time and its proper performance and compliance with all its other obligations under the Equity Transfer Agreement. Party B shall, and shall cause FORWELL to, enter into all necessary documents and complete all the procedures necessary to give effect to the Pledge, including (i) apply for the registration of the Pledge to the competent State Administration of Market Regulation in accordance with the applicable laws and regulations as soon as possible after the execution of this Agreement; and (ii) submit all the registration certificates (including the notice of creation of pledge) and other supporting documents that are reasonably satisfactory to Party A. The expenses required for the registration of the Pledge of equities under this Agreement shall be borne by Party B.

Equity Pledge. In order to secure the full and punctual payment of the difference between the amount deposited into the Escrow Account and the total purchase price, each Party B hereby agrees to, as the owner of the equity of FORWELLYMA DG, create a pledge (the “Pledge”) in favor of Party A over its corresponding equity according to their equity ratio as a continuing security for its payment of the equity transfer price on time and its proper performance and compliance with all its other obligations under the Equity Transfer Agreement. Party B shall, and shall cause FORWELL YMA DG to, enter into all necessary documents and complete all the procedures necessary to give effect to the Pledge, including (i) apply for the registration of the Pledge to the competent State Administration of Market Regulation in accordance with the applicable laws and regulations as soon as possible after the execution of this Agreement; and (ii) submit all the registration certificates (including the notice of creation of pledge) and other supporting documents that are reasonably satisfactory to Party A. The expenses required for the registration of the Pledge of equities under this Agreement shall be borne by Party B.