Common use of Disposal of the Collateral Clause in Contracts

Disposal of the Collateral. 4.1 The Pledgors and the Pledgee hereby agree that, upon occurrence of an Event of Default, the Pledgee may after giving the Pledgors written notice exercise any and all rights and remedies it is entitled to under the PRC Laws, Transaction Agreements and this Agreement, including but not limited to auction or sale of the Collateral for satisfaction of its claims. 4.2 The Pledgee may, by written notice, designate its lawyer or another agent to exercise on its behalf any of the rights or remedies listed above. The Pledgors shall not raise any objection thereto. 4.3 The Pledgors shall bear all reasonable expenses associated with the exercise by the Pledgee of any of the rights or remedies listed above. The Pledgee may deduct these expenses from the proceeds realised by such exercise of any right or remedy. 4.4 The proceeds realised by virtue of the exercise of the rights or remedies by the Pledgee shall be applied, in the following sequence, to: (i) pay the expenses associated with the disposal of the Collateral and the exercise by the Pledgee of its rights and remedies (including but not limited to the court fees and the remuneration to its lawyer or agent); (ii) pay the taxes levied on the disposal of the Collateral; and (iii) repay the Pledgee the Secured Debts. The Pledgee shall return any residual monies of the proceeds, after deduction of items (i) to (iii) above, to the Pledgors or any other person(s) who may have a claim to or interest in such monies under the relevant laws or regulations, or shall deposit the same with the notary public office of the Pledgee’s residence (at the expenses of the Pledgors). 4.5 The Pledgee may choose to exercise one or more rights or remedies it is entitled to in case of an Event of Default, and may put on auction or sell the Collateral without exercising other remedies first.