Common use of Permitted Pledges Clause in Contracts

Permitted Pledges. The provisions of Sections 3.3, 3.4 and 3.5 and of Article 4 will not apply to any pledge of Shares as security pursuant to a bona fide loan transaction or to any hedging transactions, provided that (a) the Stockholder that owns the Shares gives notice to the other Stockholders of such Subject Company of such pledge or hedge at least 10 days prior to effecting it and (b) the pledgee or counterparty to the hedging transaction, as applicable, agrees in writing to be bound by and comply with all provisions of this Agreement applicable to the pledgor. Any transfer of title to, or beneficial interest in, any Shares to a pledgee or counterparty to a hedging transaction will be subject to the other Stockholders’ rights of first refusal under this Article 3, but will not be subject to the tag-along rights in Article 4.