Use this template to prepare a Share Pledge Agreement with no recourse for the Province of Ontario, Canada, under which a shareholder pledges shares issued in its name to a lender as security for a loan made by the lender to a borrower who is a related party to the shareholder. Provisions of the pledge agreement include:

• The borrower agrees to pledge any additional, substitute or replacement shares issued in its name.
  
• The borrower retains the right to vote the shares.
  
• The shareholder has no liability for any shortfall between the balance of the debt owing and any proceeds realized from dealing with the shares, and the lender has no recourse against the shareholder for such shortfall.
  
• The shareholder is not a guarantor, surety or indemnifier.

This is a Canadian legal document in MS Word format.