Common use of Pledge and Delivery of Property Clause in Contracts

Pledge and Delivery of Property. (a) In consideration of a loan of $57,268 (the "Indebtedness") from ▇▇▇▇▇▇ to the Pledgor in connection with the Pledgor's purchase of 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 ▇▇▇▇▇▇, for the benefit of ▇▇▇▇▇▇ as security for the Pledgor's Indebtedness to ▇▇▇▇▇▇ (the "Obligations"), a purchase money security interest in and a lien upon the 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 ▇▇▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇, Esq. ("▇▇▇▇▇▇"), of Duane, Morris & Heckscher, 4200 ▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇, as agent for the Pledgor and ▇▇▇▇▇▇ 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. (b) The Pledgor agrees that the Collateral shall be delivered to ▇▇▇▇▇▇, as agent for the Pledgor and ▇▇▇▇▇▇ for ▇▇▇▇▇▇'▇ benefit, contemporaneously herewith. All securities and instruments delivered to ▇▇▇▇▇▇ under this Pledge Agreement will be in negotiable form suitable for transfer by delivery except as otherwise provided in any restrictive legend stamped or imprinted on each certificate of shares. In this regard, the Pledgor is delivering to ▇▇▇▇▇▇ stock ▇▇▇▇▇▇ duly executed in blank with respect to such securities.

Pledge and Delivery of Property. (a) In consideration of a loan of $57,268 247,676 (the "Indebtedness") from ▇▇▇▇▇▇ to the Pledgor in connection with the Pledgor's purchase of 200,000 866,000 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 ▇▇▇▇▇▇, for the benefit of ▇▇▇▇▇▇ as security for the Pledgor's Indebtedness to ▇▇▇▇▇▇ (the "Obligations"), a purchase money security interest in and a lien upon the 200,000 866,000 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 ▇▇▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇, Esq. ("▇▇▇▇▇▇"), of Duane, Morris & Heckscher, 4200 ▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇, as agent for the Pledgor and ▇▇▇▇▇▇ 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. (b) The Pledgor agrees that the Collateral shall be delivered to ▇▇▇▇▇▇, as agent for the Pledgor and ▇▇▇▇▇▇ for ▇▇▇▇▇▇'▇ benefit, contemporaneously herewith. All securities and instruments delivered to ▇▇▇▇▇▇ under this Pledge Agreement will be in negotiable form suitable for transfer by delivery except as otherwise provided in any restrictive legend stamped or imprinted on each certificate of shares. In this regard, the Pledgor is delivering to ▇▇▇▇▇▇ stock ▇▇▇▇▇▇ duly executed in blank with respect to such securities.