A Stock Pledge Agreement documents the pledge of a fixed number of shares of common stock by a shareholder as security for payment of a promissory note. The security interest continues as long as the note is outstanding. The secured party is authorized to take conveyance of the shares in the event of default under the note. During the period of time the pledge is outstanding, the party pledging the shares as security under the note continues to exercise the voting rights incidental to the shares. After the pledge is made, the voting rights transfer in full to the pledgee.

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