Common use of Sale Upon Default Clause in Contracts

Sale Upon Default. Pledgor and Secured Party acknowledge and agree that the Shares are restricted, unregistered stock that is difficult to value, and which may not be sold in the public market. The parties further agree that the Shares are not subject to sale in a “recognized market” as that term is described in Section 9-504 of the Uniform Commercial Code. The Pledgor and the Secured Party wish to agree to reasonable standards for conducting a commercially reasonable sale of the Shares. Without limiting rights and remedies otherwise available to the Pledgee, the parties agree that compliance with the following steps shall satisfy requirements of a commercially reasonable sale:

Sale Upon Default. Pledgor and Secured Party acknowledge and agree that the Shares are restricted, unregistered stock that is difficult to valuevalue and for which no public market exists. Notwithstanding the proposed initial public offering of common stock of the Secured Party, and which may not be sold in the public market. The parties further agree that the Shares are not currently subject to sale in a “"recognized market” " as that term is described in Article 9, Section 9-504 of the Uniform Commercial Code. The Pledgor and the Secured Party wish to agree to reasonable standards for conducting a commercially reasonable sale of the Shares. Without limiting rights and remedies otherwise available to the PledgeeSecured Party, the parties agree that compliance with the following steps shall satisfy requirements of a commercially reasonable sale: