Common use of Pledge and Delivery of Property Clause in Contracts

Pledge and Delivery of Property. (a) In consideration of a loan of $247,676 (the "Indebtedness") from Xxxxxx to the Pledgor in connection with the Pledgor's purchase of 866,000 shares of the Common Stock of Computone Corporation ("Computone"), which Indebtedness is evidenced by the Pledgor's promissory note due on demand after June 30, 1996 (the "Note"), the Pledgor hereby grants and pledges to Xxxxxx, for the benefit of Xxxxxx as security for the Pledgor's Indebtedness to Xxxxxx (the "Obligations"), a purchase money security interest in and a lien upon the 866,000 shares of the Common Stock, $.01 par value, of Computone, including any securities into which such property is converted by merger, consolidation, acquisition, reorganization, recapitalization, stock split or reverse stock split, or otherwise, and all rights, titles, interests, privileges and preferences appertaining or incidental to any of the foregoing and all proceeds thereof upon sale or otherwise (all of which are herein collectively referred to as the "Collateral"). The securities referred to above shall be held by Xxxxxxxxx X. Xxxxxx, Esq. ("Xxxxxx"), of Duane, Morris & Heckscher, 4200 Xxx Xxxxxxx Xxxxx, Xxxxxxxxxxxx, Xxxxxxxxxxxx 00000, as agent for the Pledgor and Xxxxxx as their respective interests may appear under this Pledge Agreement until satisfaction of the Obligations, and the purchase money security interest granted hereby in such securities shall be subject to Section 3.01 hereof.

Pledge and Delivery of Property. (a) In consideration of a loan of $247,676 57,268 (the "Indebtedness") from Xxxxxx to the Pledgor in connection with the Pledgor's purchase of 866,000 200,000 shares of the Common Stock of Computone Corporation ("Computone"), which Indebtedness is evidenced by the Pledgor's promissory note due on demand after June 30, 1996 (the "Note"), the Pledgor hereby grants and pledges to Xxxxxx, for the benefit of Xxxxxx as security for the Pledgor's Indebtedness to Xxxxxx (the "Obligations"), a purchase money security interest in and a lien upon the 866,000 200,000 shares of the Common Stock, $.01 par value, of Computone, including any securities into which such property is converted by merger, consolidation, acquisition, reorganization, recapitalization, stock split or reverse stock split, or otherwise, and all rights, titles, interests, privileges and preferences appertaining or incidental to any of the foregoing and all proceeds thereof upon sale or otherwise (all of which are herein collectively referred to as the "Collateral"). The securities referred to above shall be held by Xxxxxxxxx X. Xxxxxx, Esq. ("Xxxxxx"), of Duane, Morris & Heckscher, 4200 Xxx Xxxxxxx Xxxxx, Xxxxxxxxxxxx, Xxxxxxxxxxxx 00000, as agent for the Pledgor and Xxxxxx as their respective interests may appear under this Pledge Agreement until satisfaction of the Obligations, and the purchase money security interest granted hereby in such securities shall be subject to Section 3.01 hereof.