Common use of Interest; Collateral Clause in Contracts

Interest; Collateral. a) Unless and until all Borrowed Shares are returned to Lending Stockholder as provided above, outstanding Borrowed Shares will accrue interest at Two Percent (2.0%) per annum, with the Borrowed Shares valued at the volume weighted average price (VWAP), calculated based upon the ratio of the aggregate value of the common stock of Company traded on the Trading Market (as defined in the Purchase Agreement) to the total volume of such stock traded on such market for such date (or the nearest preceding date), for the 5 trading days immediately preceding the Effective Date. Interest is payable if, as and when Borrowed Shares are returned to Lending Stockholder, in cash or at Borrower’s sole election in freely tradable shares of common stock of the Company.