Common use of Stock Pledges Clause in Contracts

Stock Pledges. (a) Within 45 days following the First Amendment Effective Date (the “Pledge Date”), Borrower shall grant and pledge to Bank a perfected security interest in 65% of the stock, units or other evidence of equity ownership of Obalon Mexico, in form and substance factory to Bank. On or before the Pledge Date, the certificate or certificates for the Shares of Obalon Mexico will be delivered to Bank, accompanied by an instrument of assignment duly governing the Shares of Obalon Mexico. Borrower shall cause the books of Obalon Mexico and any transfer agent to reflect the pledge of the Shares of Obalon Mexico. (b) On or before the Pledge Date, Borrower shall grant and pledge to Bank a perfected security interest in 65% of the stock, units or other evidence of equity ownership of Obalon Italy, in form and substance factory to Bank. On or before the Pledge Date, the certificate or certificates for the Shares of Obalon Italy will be delivered to Bank, accompanied by an instrument of assignment duly governing the Shares of Obalon Italy. Borrower shall cause the books of Obalon Italy and any transfer agent to reflect the pledge of the Shares of Obalon Italy.