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security interest in 10,482 shares of its nonvoting
common capital stock * * *. Pledgee shall hold the
pledged shares as security for the repayment of the
indebtedness described above and shall not encumber or
dispose of such shares, except in accordance with the
provisions of paragraph 7 of this Agreement.
2. Term. The shares pledged hereunder shall
remain so pledged to Pledgee until released in accor-
dance with the provisions of paragraph 3 of this Agree-
ment.
3. Release of Stock.
(a) Upon each principal payment in the
amount of Fifty Thousand and No/100th Dollars
($50,000.00) in accordance with the terms of
* * * [installment promissory note], Pledgor
shall be entitled to the release from this
Stock Pledge Agreement of 820 shares of non-
voting common stock. Upon the demand at any
time of Pledgor, Pledgee shall deliver to
Pledgor the stock certificate for reissuance
of such released shares, and Pledgor shall
issue and deliver to Pledgee a new certifi-
cate representing the shares which remain
subject to the pledge.
(b) Upon the repayment in full with interest
of the indebtedness in accordance with the
terms of * * * [installment promissory
note], Pledgee shall transfer to Pledgor all
of the remaining stock pledged hereunder.
* * * * * * *
7. Default. If Pledgor defaults in the perfor-
mance of any of the terms of this Agreement or if
Pledgor defaults in the payment of the indebtedness
described in * * * [installment promissory note], then
Pledgee shall have the following options exercisable at
any time following thirty (30) days after any such
default:
(a) Pledgee may declare the unpaid
balance of the indebtedness immediately due
and payable and then sell the pledged shares.
* * *
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