Common use of Pledge of Security Interest Clause in Contracts

Pledge of Security Interest. Pledgor hereby pledges to Secured Party a security interest in, a minimum of 250,000 shares of Common Stock ("Pledged Collateral"), all of which are now owned by Pledgor in Secured Party, and all proceeds of the foregoing. The formula used to calculate the Pledged Collateral is two times the value of the loan divided by the closing price as quoted by NASDAQ ($400,000 / $1.60 = 250,000 shares). The Pledged Collateral shall be held by an outside director ("Escrow Agent") and shall have attached thereto a stock power endorsed in blank by Pledgor, or at Pledgor's election, an escrow may be established at a local bank. The cost of the escrow shall be paid by the Pledgor if Pledgor elects to use a bank as the escrow agent. Unless and until an Event of Default (as defined in Section 3 hereof) has occurred, the Pledged Collateral shall be held by the Escrow Agent in accordance with the terms of this Pledge Agreement.

Pledge of Security Interest. Pledgor hereby pledges to Secured ---------------------------- Party a security interest in, a minimum of 250,000 shares of Common Stock ("Pledged Collateral"), all of which are now owned by Pledgor in Secured Party, and all proceeds of the foregoing. The formula used to calculate the Pledged Collateral is two times the value of the loan divided by the closing price as quoted by NASDAQ ($400,000 / $1.60 = 250,000 shares). The Pledged Collateral shall be held by an outside director ("Escrow Agent") and shall have attached thereto a stock power endorsed in blank by Pledgor, or at Pledgor's election, an escrow may be established at a local bank. The cost of the escrow shall be paid by the Pledgor if Pledgor elects to use a bank as the escrow agent. Unless and until an Event of Default (as defined in Section 3 hereof) has occurred, the Pledged Collateral shall be held by the Escrow Agent in accordance with the terms of this Pledge Agreement.

Pledge of Security Interest. Pledgor hereby pledges to Secured Party a security interest in, a minimum of 250,000 shares of Common Stock ("Pledged Collateral"), all of which are now owned by Pledgor in Secured Party, and all proceeds of the foregoing. The formula used to calculate the Pledged Collateral is two times the value of the loan divided by the closing price as quoted by NASDAQ ($400,000 / $1.60 = 250,000 shares). The Pledged Collateral shall be held by an outside director ("Escrow Agent") and shall have attached thereto a stock power endorsed in blank by Pledgor, or at Pledgor's election, an escrow may be established at a local bank. The cost of the escrow shall be paid by the Pledgor if Pledgor elects to use a bank as the escrow agent. Unless and until an Event of Default (as defined in Section 3 hereof) has occurred, the Pledged Collateral shall be held by the Escrow Agent in accordance with the terms of this Pledge Agreement.