Master Security Agreement



 Exhibit 10.14 
 MASTER SECURITY AGREEMENT 
 dated as of April 23, 2007 (“Agreement”)

 THIS AGREEMENT is between General Electric Capital Corporation (together with its successors and assigns, if any, “Secured
Party”) and NovaBay Pharmaceuticals, Inc. (“Debtor”). Secured Party has an office at 83 Wooster Heights Road, Danbury, CT 06810. Debtor is a corporation organized and existing under the laws of the state of CA (“the State”).
Debtor’s mailing address and chief place of business is 5980 Horton Street, Suite, 550, Emeryville, CA 94608. 
  

	1.	CREATION OF SECURITY INTEREST. 

 Debtor grants to
Secured Party, its successors and assigns, a security interest in and against all property listed on any collateral schedule now or in the future annexed to or made a part of this Agreement (“Collateral Schedule”), and in and against all
additions, attachments, accessories and accessions to such property, all substitutions, replacements or exchanges therefor, and all insurance and/or other proceeds thereof (all such property is individually and collectively called the
“Collateral”). This security interest is given to secure the payment and performance of all debts, obligations and liabilities of any kind whatsoever of Debtor to Secured Party, now existing or arising in the future, including but not
limited to the payment and performance of certain Promissory Notes from time to time identified on any Collateral Schedule (collectively “Notes” and each a “Note”), and any renewals, extensions and modifications of such debts,
obligations and liabilities (such Notes, debts, obligations and liabilities are called the “Indebtedness”). 
  

	2.	REPRESENTATIONS, WARRANTIES AND COVENANTS OF DEBTOR. 

 Debtor represents, warrants and covenants as of the date of this Agreement and as of the date of each Collateral Schedule that: 
 (a) Debtor’s exact legal name is as set forth in the preamble of this Agreement and Debtor is, and will remain, duly organized, existing and in good standing under the laws of the State set forth in the preamble of this Agreement, has
its chief executive offices at the location specified in the preamble, and is, and will remain, duly qualified and licensed in every jurisdiction wherever necessary to carry on its business and operations; 
 (b) Debtor has adequate power and capacity to enter into, and to perform its obligations under this Agreement, each Note and any other documents
evidencing, or given in connection with, any of the Indebtedness (all of the foregoing are called the “Debt Documents”); 
 (c)
This Agreement and the other Debt Documents have been duly authorized, executed and delivered by Debtor and constitute legal, valid and binding agreements enforceable in accordance with their terms, except to the extent that the enforcement of
remedies may be limited under applicable bankruptcy and insolvency laws; 
 (d) No approval, consent or withholding of objections is required
from any governmental authority or instrumentality with respect to the entry into, or performance by Debtor of any of the Debt Documents, except any already obtained; 
 (e) The entry into, and performance by, Debtor of the Debt Documents will not (i) violate any of the organizational documents of Debtor or any judgment, order, law or regulation applicable to Debtor, or
(ii) result in any breach of or constitute a default under any contract to which Debtor is a party, or result in the creation of any lien, claim or encumbrance on any of Debtor’s property (except for liens in favor of Secured Party)
pursuant to any indenture, mortgage, deed of trust, bank loan, credit agreement, or other agreement or instrument to which Debtor is a party; 
 (f) There are no suits or proceedings pending in court or before any commission, board or other administrative agency against or affecting Debtor which could, in the aggregate, have a material adverse effect on Debtor, its business or
operations, or its ability to perform its obligations under the Debt Documents, nor does Debtor have reason to believe that any such suits or proceedings are threatened; 
 (g) All financial statements delivered to Secured Party in connection with the Indebtedness have been prepared in accordance with generally accepted accounting principles, and since the date of the most recent
financial statement, there has been no material adverse change in Debtors financial condition; 
 (h) The Collateral is not, and will not be,
used by Debtor for personal, family or household purposes; 
 (i) The Collateral is, and will remain, in good condition and repair and Debtor
will not be negligent in its care and use; 









 (j) Debtor is, and will remain, the sole and lawful owner, and in possession of, the Collateral, and has
the sole right and lawful authority to grant the security interest described in this Agreement; 
 (k) The Collateral is, and will remain,
free and clear of all liens, claims and encumbrances of any kind whatsoever, except for (i) liens in favor of Secured Party, (ii) liens for taxes not yet due or for taxes being contested in good faith and which do not involve, in the
judgment of Secured Party, any risk of the sale, forfeiture or loss of any of the Collateral and with respect to which adequate reserves have been set aside for the payment thereof in accordance with GAAP, and (iii) inchoate materialmen’s,
mechanic’s, repairmen’s and similar liens arising by operation of law in the normal course of business for amounts which are not delinquent (all of such liens are called “Permitted Liens”); and 
 (l) Debtor is and will remain in full compliance with all laws and regulations applicable to it including, without limitation, (i) ensuring that no
person who owns a controlling interest in or otherwise controls Debtor is or shall be (Y) listed on the Specially Designated Nationals and Blocked Person List maintained by the Office of Foreign Assets Control (“OFAC”), Department of
the Treasury, and/or any other similar lists maintained by OFAC pursuant to any authorizing statute, Executive Order or regulation or (Z) a person designated under Section 1(b), (c) or (d) of Executive Order No. 13224
(September 23, 2001), any related enabling legislation or any other similar Executive Orders, and (ii) compliance with all applicable Bank Secrecy Act (“BSA”) laws, regulations and government guidance on BSA compliance and on the
prevention and detection of money laundering violations. 
  

	3.	COLLATERAL. 

 (a) Until the declaration of any
default, Debtor shall remain in possession of the Collateral; except that Secured Party shall have the right to possess (i) any chattel paper or instrument that constitutes a part of the Collateral, and (ii) any other Collateral in which
Secured Party’s security interest may be perfected only by possession. Secured Party may inspect any of the Collateral during normal business hours after giving Debtor reasonable prior notice. If Secured Party asks, Debtor will promptly notify
Secured Party in writing of the location of any Collateral. 
 (b) Debtor shall (i) use the Collateral only in its trade or business,
(ii) maintain all of the Collateral in good operating order and repair, normal wear and tear excepted, (iii) use and maintain the Collateral only in compliance with manufacturers recommendations and all applicable laws, and (iv) keep
all of the Collateral free and clear of all liens, claims and encumbrances (except for Permitted Liens). 
 (c) Secured Party does not
authorize and Debtor agrees it shall not (i) part with possession of any of the Collateral (except to Secured Party or for maintenance and repair), (ii) remove any of the Collateral from the continental United States, or (iii) sell,
rent, lease, mortgage, license, grant a security interest in or otherwise transfer or encumber (except for Permitted Liens) any of the Collateral. 
 (d) Debtor shall pay promptly when due all taxes, license fees, assessments and public and private charges levied or assessed on any of the Collateral, on its use, or on this Agreement or any of the other Debt Documents. At its option,
Secured Party may discharge taxes, liens, security interests or other encumbrances at any time levied or placed on the Collateral and may pay for the maintenance, insurance and preservation of the Collateral and effect compliance with the terms of
this Agreement or any of the other Debt Documents. Debtor agrees to reimburse Secured Party, on demand, all costs and expenses incurred by Secured Party in connection with such payment or performance and agrees that such reimbursement obligation
shall constitute Indebtedness. 
 (e) Debtor shall, at all times, keep accurate and complete records of the Collateral, and Secured Party
shall have the right to inspect and make copies of all of Debtor’s books and records relating to the Collateral during normal business hours, after giving Debtor reasonable prior notice. 
 (f) Debtor agrees and acknowledges that any third person who may at any time possess all or any portion of the Collateral shall be deemed to hold, and
shall hold, the Collateral as the agent of, and as pledge holder for, Secured Party. Secured Party may at any time give notice to any third person described in the preceding sentence that such third person is holding the Collateral as the agent of,
and as pledge holder for, the Secured Party. 
  

	4.	INSURANCE. 

 (a) Debtor shall at all times bear the
entire risk of any loss, theft, damage to, or destruction of, any of the Collateral from any cause whatsoever. 
 (b) Debtor agrees to keep
the Collateral insured against loss or damage by fire and extended coverage perils, theft, burglary, and for any or all Collateral which are vehicles, for risk of loss by collision, and if requested by Secured Party, against such other risks as
Secured Party may reasonably require. The insurance coverage shall be in an amount no less than the full replacement value of the Collateral, and deductible amounts, insurers and policies shall be acceptable to Secured Party. Debtor shall deliver to
Secured Party policies or certificates of insurance evidencing such coverage. Each policy shall name Secured Party as additional insured and lender’s loss payee, shall provide for coverage to Secured Party regardless of the breach by Debtor of
any warranty or representation made therein, shall not be subject to co-insurance, and shall provide that coverage may not be canceled or altered by the insurer except upon thirty (30) days prior written notice to Secured Party. Debtor appoints
Secured Party as its attorney-in-fact to make proof of loss, claim for insurance and adjustments with insurers, and to receive payment of and execute or endorse all documents, checks or drafts in connection with insurance payments. Secured Party
shall not act as Debtor’s attorney-in-fact unless Debtor is in default. Proceeds of insurance shall be applied, at the option of Secured Party, to repair or replace the Collateral or to reduce any of the Indebtedness. 










	5.	REPORTS. 

 (a) Debtor shall promptly notify Secured
Party of (i) any change in the name of Debtor, (ii) any change in the state of its incorporation, organization or registration, (iii) any relocation of its chief executive offices, (iv) any relocation of any of the Collateral,
(v) any of the Collateral being lost, stolen, missing, destroyed, materially damaged or worn out, or (vi) any lien, claim or encumbrance other than Permitted Liens attaching to or being made against any of the Collateral. 
 (b) Debtor will deliver to Secured Party financial statements as follows. If Debtor is a privately held company, then Debtor agrees to provide monthly
financial statements, certified by Debtor’s president or chief financial officer including a balance sheet, statement of operations and cash flow statement within 30 days of each month end and its complete audited annual financial statements,
certified by a recognized firm of certified public accountants, within 120 days of fiscal year end or at such time as Debtor’s Board of Directors receives the audit. If Debtor is a publicly held company, then Debtor agrees to provide quarterly
unaudited statements and annual audited statements, certified by a recognized firm of certified public accountants, within 10 days after the statements are provided to the Securities and Exchange Commission (“SEC”). All such statements are
to be prepared using generally accepted accounting principles (“GAAP”) and, if Debtor is a publicly held company, are to be in compliance with SEC requirements. 
  

	6.	FURTHER ASSURANCES. 

 (a) Debtor shall, upon request
of Secured Party, furnish to Secured Party such further information, execute and deliver to Secured Party such documents and instruments (including, without limitation, Uniform Commercial Code financing statements) and shall do such other acts and
things as Secured Party may at any time reasonably request relating to the perfection or protection of the security interest created by this Agreement or for the purpose of carrying out the intent of this Agreement. Without limiting the foregoing,
Debtor shall cooperate and do all acts deemed necessary or advisable by Secured Party to continue in Secured Party a perfected first security interest in the Collateral, and shall obtain and furnish to Secured Party any subordinations, releases,
landlord waivers, lessor waivers, mortgagee waivers, or control agreements, and similar documents as may be from time to time requested by, and in form and substance satisfactory to, Secured Party. 
 (b) Debtor authorizes Secured Party to file a financing statement and amendments thereto describing the Collateral and containing any other information
required by the applicable Uniform Commercial Code. Debtor irrevocably grants to Secured Party the power to sign Debtor’s name and generally to act on behalf of Debtor to execute and file applications for title, transfers of title, financing
statements, notices of lien and other documents pertaining to any or all of the Collateral; this power is coupled with Secured Party’s interest in the Collateral. Debtor shall, if any certificate of title be required or permitted by law for any
of the Collateral, obtain and promptly deliver to Secured Party such certificate showing the lien of this Agreement with respect to the Collateral. Debtor ratifies its prior authorization for Secured Party to file financing statements and amendments
thereto describing the Collateral and containing any other information required by the Uniform Commercial Code if filed prior to the date hereof. 
 (c) Debtor shall indemnify and defend the Secured Party, its successors and assigns, and their respective directors, officers and employees, from and against all claims, actions and suits (including, without limitation, related
attorneys’ fees) of any kind whatsoever arising, directly or indirectly, in connection with any of the Collateral, this agreement, any other Debt Document, and the transactions contemplated hereby or thereby, except for claims, actions or suits
arising from the gross negligence or willful misconduct of Secured Party or its successors or assigns and their respective directors, officers and employees as determined by final judgment of a court of competent jurisdiction. 
  

	7.	DEFAULT AND REMEDIES. 

 (a) Debtor shall be in
default under this Agreement and each of the other Debt Documents if: 
 (i) Debtor breaches its obligation to pay when due
any installment or other amount due or coming due under any of the Debt Documents and fails to cure the breach within ten (10) days; 
 (ii) Debtor, without the prior written consent of Secured Party, attempts to or does sell, rent, lease, license, mortgage, grant a security interest in, or otherwise transfer or encumber (except for Permitted Liens)
any of the Collateral; 
 (iii) Debtor breaches any of its insurance obligations under Section 4; 
 (iv) Debtor breaches any of its other obligations under any of the Debt Documents and fails to cure that breach within thirty
(30) days after written notice from Secured Party; 
 (v) Any warranty, representation or statement made by Debtor in any
of the Debt Documents or otherwise in connection with any of the Indebtedness shall be false or misleading in any material respect; 









 (vi) Any of the Collateral is subjected to attachment, execution, levy, seizure or
confiscation in any legal proceeding or otherwise, or if any legal or administrative proceeding is commenced against Debtor or any of the Collateral, which in the good faith judgment of Secured Party subjects any of the Collateral to a material risk
of attachment, execution, levy, seizure or confiscation and no bond is posted or protective order obtained to negate such risk; 
 (vii) Debtor breaches or is in default under any other agreement between Debtor and Secured Party; 
 (viii) Debtor
or any guarantor or other obligor for any of the Indebtedness (collectively “Guarantor”) dissolves, terminates its existence, becomes insolvent or ceases to do business as a going concern; 
 (ix) If Debtor or any Guarantor is a natural person, Debtor or any such Guarantor dies or becomes incompetent; 
 (x) A receiver is appointed for all or of any part of the property of Debtor or any Guarantor, or Debtor or any Guarantor makes any
assignment for the benefit of creditors; 
 (xi) Debtor or any Guarantor files a petition under any bankruptcy, insolvency or
similar law, or any such petition is filed against Debtor or any Guarantor and is not dismissed within forty-five (45) days; 
 (xii) Debtor’s improper filing of an amendment or termination statement relating to a filed financing statement describing the Collateral; 
 (xiii) There is a material adverse change in the Debtor’s financial condition as determined solely by Secured Party; 
 (xiv) Any Guarantor revokes or attempts to revoke its guaranty of any of the Indebtedness or fails to observe or perform any covenant, condition or agreement to be performed under any guaranty or other related
document to which it is a party; 
 (xv) Debtor defaults under any other material obligation for (A) borrowed money,
(B) the deferred purchase price of property or (C) payments due under any lease agreement; or 
 (xvi) At any time
during the term of this Agreement Debtor experiences a change of control such that any person or entity acquires either more than 50% of the voting stock of Debtor or all or substantially all of Debtor’s assets, in either case, without Secured
Party’s prior written consent. 
 (b) If Debtor is in default, the Secured Party, at its option, may declare any or all of the
Indebtedness to be immediately due and payable, without demand or notice to Debtor or any Guarantor. The accelerated obligations and liabilities shall bear interest (both before and after any judgment) until paid in full at the lower of eighteen
percent (18%) per annum or the maximum rate not prohibited by applicable law. 
 (c) After default, Secured Party shall have all of the
rights and remedies of a Secured Party under the Uniform Commercial Code, and under any other applicable law. Without limiting the foregoing, Secured Party shall have the right to (i) notify any account debtor of Debtor or any obligor on any
instrument which constitutes part of the Collateral to make payment to the Secured Party, (ii) with or without legal process, enter any premises where the Collateral may be and take possession of and remove the Collateral from the premises or
store it on the premises, (iii) sell the Collateral at public or private sale, in whole or in part, and have the right to bid and purchase at said sale, or (iv) lease or otherwise dispose of all or part of the Collateral, applying proceeds
from such disposition to the obligations then in default. If requested by Secured Party, Debtor shall promptly assemble the Collateral and make it available to Secured Party at a place to be designated by Secured Party which is reasonably convenient
to both parties. Secured Party may also render any or all of the Collateral unusable at the Debtor’s premises and may dispose of such Collateral on such premises without liability for rent or costs. Any notice that Secured Party is required to
give to Debtor under the Uniform Commercial Code of the time and place of any public sale or the time after which any private sale or other intended disposition of the Collateral is to be made shall be deemed to constitute reasonable notice if such
notice is given to the last known address of Debtor at least five (5) days prior to such action. 
 (d) Proceeds from any sale or lease
or other disposition shall be applied: first, to all costs of repossession, storage, and disposition including without limitation attorneys’, appraisers’, and auctioneers’ fees; second, to discharge the obligations then in default;
third, to discharge any other Indebtedness of Debtor to Secured Party, whether as obligor, endorser, guarantor, surety or indemnitor; fourth, to expenses incurred in paying or settling liens and claims against the Collateral; and lastly, to Debtor,
if there exists any surplus. Debtor shall remain fully liable for any deficiency. 
 (e) Debtor agrees to pay all reasonable attorneys’
fees and other fees, costs and expenses incurred by Secured Party (including, without limitation, the allocated cost of in-house legal counsel) in connection with the enforcement, assertion, defense or preservation of Secured Party’s rights and
remedies under this Agreement, or if prohibited by law, such lesser sum as may be permitted. Debtor further agrees that such fees and costs shall constitute Indebtedness. 
 (f) Secured Party’s rights and remedies under this Agreement or otherwise arising are cumulative and may be exercised singularly or concurrently. Neither the failure nor any delay on the part of the Secured Party
to exercise any right, power or privilege under this Agreement shall operate as a waiver, nor shall any single or partial exercise of any right, power or privilege preclude any other or further exercise of that or any other right, power or
privilege. SECURED PARTY SHALL NOT BE DEEMED TO HAVE WAIVED ANY OF ITS RIGHTS UNDER THIS AGREEMENT OR UNDER ANY OTHER AGREEMENT, 










 
INSTRUMENT OR PAPER SIGNED BY DEBTOR UNLESS SUCH WAIVER IS EXPRESSED IN WRITING AND SIGNED BY SECURED PARTY. A waiver on any one occasion shall not be
construed as a bar to or waiver of any right or remedy on any future occasion. 
 (g) DEBTOR AND SECURED PARTY UNCONDITIONALLY WAIVE THEIR
RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT, ANY OF THE OTHER DEBT DOCUMENTS, ANY OF THE INDEBTEDNESS SECURED HEREBY, ANY DEALINGS BETWEEN DEBTOR AND SECURED PARTY RELATING TO THE SUBJECT MATTER
OF THIS TRANSACTION OR ANY RELATED TRANSACTIONS, AND/OR THE RELATIONSHIP THAT IS BEING ESTABLISHED BETWEEN DEBTOR AND SECURED PARTY. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT.
THIS WAIVER IS IRREVOCABLE. THIS WAIVER MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING. THE WAIVER ALSO SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT, ANY OTHER DEBT DOCUMENTS, OR TO ANY OTHER
DOCUMENTS OR AGREEMENTS RELATING TO THIS TRANSACTION OR ANY RELATED TRANSACTION. THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT. 
  

	8.	MISCELLANEOUS. 

 (a) This Agreement, any Note and/or
any of the other Debt Documents may be assigned, in whole or in part, by Secured Party without notice to Debtor, and Debtor agrees not to assert against any such assignee, or assignee’s assigns, any defense, set-off, recoupment claim or
counterclaim which Debtor has or may at any time have against Secured Party for any reason whatsoever. Debtor agrees that if Debtor receives written notice of an assignment from Secured Party, Debtor will pay all amounts payable under any
assigned Debt Documents to such assignee or as instructed by Secured Party. Debtor also agrees to confirm in writing receipt of the notice of assignment as may be reasonably requested by Secured Party or assignee. 
 (b) All notices to be given in connection with this Agreement shall be in writing, shall be addressed to the parties at their respective addresses set
forth in this Agreement (unless and until a different address may be specified in a written notice to the other party), and shall be deemed given (i) on the date of receipt if delivered in hand or by facsimile transmission, (ii) on the
next business day after being sent by express mail, and (iii) on the fourth business day after being sent by regular, registered or certified mail. As used herein, the term “business day” shall mean and include any day other than
Saturdays, Sundays, or other days on which commercial banks in New York, New York are required or authorized to be closed. 
 (c) Debtor
agrees to pay all reasonable attorneys’ fees and all other fees, costs and expenses incurred by Secured Party (including, without limitation, the allocated cost of in-house legal counsel) in connection with the preparation, negotiation and
closing of the transactions contemplated in this Agreement and all related documents and schedules and in connection with the continued administration thereof, including, without limitation, any amendments, modifications, consents or waivers thereof
and in connection with the protection, monitoring or preservation of the Collateral. Debtor further agrees that such fees and costs shall constitute Indebtedness. 
 (d) Secured Party may correct patent errors and fill in all blanks in this Agreement or in any Collateral Schedule consistent with the agreement of the parties. 
 (e) Time is of the essence of this Agreement. This Agreement shall be binding, jointly and severally, upon all parties described as the
“Debtor” and their respective heirs, executors, representatives, successors and assigns, and shall inure to the benefit of Secured Party, its successors and assigns. 
 (f) This Agreement and its Collateral Schedules constitute the entire agreement between the parties with respect to the subject matter of this Agreement
and supersede all prior understandings (whether written, verbal or implied) with respect to such subject matter. THIS AGREEMENT AND ITS COLLATERAL SCHEDULES SHALL NOT BE CHANGED OR TERMINATED ORALLY OR BY COURSE OF CONDUCT, BUT ONLY BY A WRITING
SIGNED BY BOTH PARTIES. Section headings contained in this Agreement have been included for convenience only, and shall not affect the construction or interpretation of this Agreement. 
 (g) This Agreement shall continue in full force and effect until all of the Indebtedness has been indefeasibly paid in full to Secured Party or its
assignee. The surrender, upon payment or otherwise, of any Note or any of the other documents evidencing any of the Indebtedness shall not affect the right of Secured Party to retain the Collateral for such other Indebtedness as may then exist or as
it may be reasonably contemplated will exist in the future. This Agreement shall automatically be reinstated if Secured Party is ever required to return or restore the payment of all or any portion of the Indebtedness (all as though such payment had
never been made). 
 (h) Debtor authorizes Secured Party to use its name, logo and/or trademark without notice to or consent by Debtor, in
connection with certain promotional materials that Secured Party may disseminate to the public. The promotional materials may include, but are not limited to, brochures, video tape, internet website, press releases, advertising in newspaper and/or
other periodicals, lucites, and any other materials relating the fact that Secured Party has a financing relationship with Debtor and such materials may be developed, disseminated and used without Debtor’s review. Nothing herein obligates
Secured Party to use Debtor’s name, logo and/or trademark, in any promotional materials of Secured Party. 
 (i) THIS AGREEMENT AND THE
RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL IN ALL RESPECTS BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF CONNECTICUT (WITHOUT REGARD TO THE 










 
CONFLICT OF LAWS PRINCIPLES OF SUCH STATE), INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, REGARDLESS OF THE LOCATION OF THE COLLATERAL.

 IN WITNESS WHEREOF, Debtor and Secured Party, intending to be legally bound hereby, have duly executed this Agreement in one or more counterparts,
each of which shall be deemed to be an original, as of the day and year first aforesaid. 
  

									
	SECURED PARTY:	 		 	DEBTOR:
			
	General Electric Capital Corporation	 		 	NovaBay Pharmaceuticals, Inc.
					
	By: 	 	/S/ DANIJELA GJENERO	 		 	By: 	 	 /S/ JACK
O’REILLY

	Name: 	 	Danijela Gjenero	 		 	Name: 	 	Jack O’Reilly
	Title: 	 	Duly Authorized Signatory	 		 	Title: 	 	CFO










 SECRETARY’S CERTIFICATE OF AUTHORITY 
 I, Robert R. Tufts, do hereby certify that: 
 (i) I am the duly elected,
qualified and acting   x   Secretary   ̈ Assistant Secretary [check one]
(“Secretary”) of NovaBay Pharmaceuticals, Inc., a corporation organized and existing under the laws of the State of CA (hereinafter, the “Corporation”); 
 (ii) The Corporation’s organizational documents, including without limitation, the Certificate or Articles of Incorporation, are each in full force and effect on and as of the date hereof; 
 (iii) Each of the President, any Senior Vice President, or Treasurer of the Corporation is duly authorized for and on behalf of the Corporation to borrow monies from
General Electric Capital Corporation (“GE Capital”), and/or lease from GE Capital (or sell to and leaseback from GE Capital), equipment and other personal property, and to grant to GE Capital a security interest in any or all of the
assets of the Corporation to secure repayment of sums borrowed from or owed to GE Capital, and to execute and deliver to GE Capital any promissory note, security agreement, lease, equipment schedule, certificate of acceptance, or any other
agreement, schedule, document, or instrument, which evidences or relates to any loan by GE Capital to the Corporation or any lease of equipment or other personal property from GE Capital (collectively, the “Documents”), and bind the
Corporation in relation to any and all transactions contemplated by the Documents; 
 (iv) that the execution and delivery of the Documents is not prohibited
by or in any manner restricted by the terms of the Corporation’s Certificate or Articles of Incorporation, its by-laws, or of any loan agreement, indenture or contract to which the Corporation is a party or under which it is bound; 

(v) that the foregoing authority shall remain in full force and effect, and GE Capital shall be entitled to rely upon same, until written notice of the modification,
rescission or revocation of same, in whole or in part, has been delivered to GE Capital, but no such modification, rescission or revocation shall, in any event, be effective with respect to any documents executed or actions taken in reliance upon
the foregoing authority before said written notice is delivered to GE Capital; 
 (vi) there are no actions, suits, proceedings or investigations pending or
threatened against or affecting the Corporation before any court, federal, state, provincial, municipal or other governmental department, commission, board, bureau, agency or instrumentality, domestic or foreign, or any basis therefore, which
involves the possibility of any judgment or liability not covered in full by insurance which could result in any material adverse effect in the property, assets, business, operations or financial conditions of the Corporation, or materially impair
the right or ability of the Corporation to carry on its operations substantially as now conducted or anticipated to be conducted in the future, or which questions the validity of the Documents, or the other documents required thereby or any action
to be taken to be taken pursuant to any of the foregoing; and 
 (vii) The following persons are duly elected, qualified and acting officers of the
Corporation, holding the offices indicated opposite their respective names and the signature appearing opposite their respective names is the genuine signature of such persons, respectively: 
  

					
	Name	  	Office	  	Signature
	Ron Najafi	  	President	  	/s/    RON NAJAFI        
	Jack O’Reilly	  	Senior Vice President	  	/s/    JACK O’REILLY        

 IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of said Corporation this 4th day of
May     , 2007. 
 *(Corporate Seal) 
 /s/    ROBERT R.
TUFTS                                      
           
 “Secretary” 









 State of CA 
 County of
Alameda 
 CONSENT TO INSTALLATION AND WAIVER 
 The undersigned depose and say that: 
 Each has and claims the interest set forth beneath his signature hereto in and to all that tract, piece or
parcel of land (the “Premises”) commonly known as: 5980 Horton Street, Suite 550, Alameda County, Emeryville, CA, 94608 
 Said premises are
presently occupied by NovaBay Pharmaceuticals, Inc. (“Customer”). Customer has entered into a lease, security agreement, chattel mortgage or similar agreement dated April 23, 2007, (“Agreement”)
with General Electric Capital Corporation (“Interest Holder”), whereby the said Interest Holder shall have the ownership of, first lien on or other paramount rights to the personal property (“Personal
Property”) as described in said Agreement subject only to the Customer’s rights as provided in said Agreement. 
 THEREFORE, in
consideration of One Dollar ($1.00) and other good and valuable consideration the receipt of which is hereby acknowledged and in order to induce the Interest Holder to enter into the Agreement to permit the Customer to locate the Personal Property
on the Premises and any assignee to purchase and/or to take any assignment of said Agreement, the undersigned do hereby jointly and severally covenant and agree (and Interest Holder will rely on the undersigned’s agreement) that: (i) the
Personal Property has been or may be affixed or otherwise installed or kept at, in, or upon the Premises and that said Personal Property is to remain personal property notwithstanding the manner in which it may become or is affixed to or installed
at the premises, (ii) that the Interest Holder’s claim in and to such Personal Property shall remain undiminished and unaffected by such affixation, installation or storage throughout the term of the Agreement and any extension thereof,
and until and unless the Interest Holder or any assignee thereof shall formally release or transfer its interests in and to such Personal Property to or in favor of such Customer, and (iii) any interest that the undersigned may have in the
Personal Property and any proceeds thereof (including, without limitation, proceeds of any insurance therfor) shall be, and remain, subject and subordinate to the interests of Interest Holder. 
 The undersigned further agree that the Interest Holder and any assignee may enter upon the Premises at all reasonable times to inspect and/or remove said Personal
Property from the Premises whenever it deems it necessary to do so to protect its interest. In connection with the foregoing, Interest Holder agrees to repair or reimburse the undersigned for any material, physical damage actually caused to the
Premises by Interest Holder, or its employees or agents, during any such removal or inspection, provided, that, it is understood by the parties hereto that Interest Holder shall not be liable for any diminution in value of the Premises caused by the
removal or absence of the Personal Property therefrom. These agreements shall be binding upon, and shall inure to the benefit of, any successors and assigns of the parties hereto. 
 Each undersigned hereby waives each and every right which he now has in the Personal Property or which he may hereafter acquire under the laws of the State of CA or by virtue of any deed, lease, mortgage or
other agreement now in effect or hereafter received by the undersigned to own, levy upon, distrain, seize, restrain or otherwise hold or possess said Personal Property for any reason. 
 This Consent to Installation and Waiver and any amendments, waivers, consents or supplements hereto or in connection herewith may be executed in any number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed and delivered shall be deemed an 










 
original, but all such counterparts together shall constitute but one and the same instrument; signature pages may be detached from multiple separate
counterparts and attached to a single counterpart so that all signature pages are physically attached to the same document. Delivery of an executed signature page of this Consent to Installation and Waiver or any delivery contemplated hereby by
facsimile or electronic transmission shall be as effective as delivery of a manually executed counterpart thereof. 
 We appreciate your cooperation in this
matter of mutual interest. 
  

			
	General Electric Capital Corporation
		
	By:	 	/S/    DANIJELA
GJENERO        
	Name: 	 	Danijela Gjenero
	Title: 	 	Duly Authorized Signatory


  

			
	AGREED TO AND ACCEPTED BY:
	
	  
		
	By: 	 	/S/    RICHARD K.
ROBBINS        
	Name: 	 	Richard K. Robbins
	Title: 	 	President, Wareham Property Group
	Date: 	 	5-9-07

 Interest in the Premises (check applicable box) 
  

	 	 ̈	Owner 

  

	 	 ̈	Mortgagee 

  

	 	 ̈	Landlord 

  

	 	 ̈	Realty Manager 










 Equipment Concentration Rider 
 NovaBay Pharmaceuticals, Inc., (“Customer”), on or before April 19, 2008, shall cause the composition and mix of Equipment financed after April 23, 2007 under the Master Security Agreement dated as
of April 23, 2007 between Customer and General Electric Capital Corporation to conform to and meet the following concentration requirements (hereinafter “Concentration Requirements”) for each class of Equipment (hereinafter
“Equipment Class”) as identified and set forth below. Customer herein represents and warrants that it shall maintain each such Equipment Class and its respective Concentration Requirement from and after such above referenced date and
continuing thereafter to the end of the term: 
  

					
	 Equipment Class
	  	 Concentration Requirement
	  	  
	Laboratory & scientific equipment:	  	Minimum of 60%	  	
			
	Computers, networking equipment, Office furniture & equipment:	  	Maximum of 20%	  	
			
	Soft costs (leaseholds, software, & similar):	  	Maximum of 20%	  	

  

			
	Accepted and Agreed:
	
	NovaBay Pharmaceuticals, Inc.
		
	By:	 	/S/    JACK
O’REILLY        
	Title: 	 	CFO
	Date: 	 	5/10/07