Common use of Collateral for the Note Clause in Contracts

Collateral for the Note. The Note shall be secured by the collateral set forth in that certain Security Agreement attached hereto as Exhibit B listing substantially all of Company’s assets as security for Company’s obligations under the Transaction Documents (the “Security Agreement”); provided, however, that the security interest granted pursuant to the Security Agreement shall not become effective unless and until either: (a) Investor purchases the Company’s outstanding obligations (the “Hercules Debt”) under that certain Loan and Security Agreement between Company and Hercules Capital, Inc. (f/k/a Hercules Technology Growth Capital, Inc.), a Maryland corporation (“Hercules”), on August 18, 2015, as amended, pursuant to the purchase right set forth in Section 4 of the Subordination Agreement; or (b) Company repays the Hercules Debt in full.