Document:

ttoo_Ex10_30

		
			Exhibit 10.30
		

		
			 
		

		
			EXECUTION VERSION
		

		
			 
		

		
			 
		

		
			SECURITY AGREEMENT
		

		
			 
		

		
			dated as of
		

		
			 
		

		
			December 30, 2016
		

		
			 
		

		
			among
		

		
			 
		

		
			T2 BIOSYSTEMS, INC.,
		

		
			as Borrower,
		

		
			 
		

		
			the other Grantors from time to time party hereto
		

		
			 
		

		
			and
		

		
			 
		

		
			CRG SERVICING LLC,
		

		
			as Administrative Agent and Collateral Agent
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			

		 

 

		

		
			Table of Contents
		

		
			 
		

			
					
						 

					
					
						 

					
					
						Page

				
	
					
						Section 1.

					
					
						Definitions, Etc.

					
2 
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						1.01

					
					
						Certain Uniform Commercial Code Terms

					
2 
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						1.02

					
					
						Additional Definitions

					
2 
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						1.03

					
					
						Other Defined Terms

					
4 
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						Section 2.

					
					
						Representations and Warranties

					
4 
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						2.01

					
					
						Organizational Matters; Enforceability, Etc.

					
4 
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						2.02

					
					
						Title

					
5 
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						2.03

					
					
						Names, Etc.

					
5 
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						2.04

					
					
						Changes in Circumstances

					
5 
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						2.05

					
					
						Pledged Shares

					
6 
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						2.06

					
					
						Promissory Notes

					
6 
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						2.07

					
					
						Intellectual Property

					
6 
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						2.08

					
					
						Deposit Accounts, Securities Accounts and Commodity Accounts

					
7 
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						2.09

					
					
						Commercial Tort Claims

					
7 
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						2.10

					
					
						Update of Schedules

					
7 
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						Section 3.

					
					
						Collateral

					
7 
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						3.01

					
					
						Granting Clause

					
7 
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						3.02

					
					
						First-Tier Foreign Subsidiary; Certain Leases and Licenses

					
8 
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						Section 4.

					
					
						Further Assurances; Remedies

					
9 
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						4.01

					
					
						Delivery and Other Perfection

					
9 
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						4.02

					
					
						Other Financing Statements or Control

					
11 
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						4.03

					
					
						Preservation of Rights

					
11 
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						4.04

					
					
						Special Provisions Relating to Certain Collateral

					
11 
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						4.05

					
					
						Remedies

					
13 
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						4.06

					
					
						Deficiency

					
15 
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						4.07

					
					
						Locations; Names, Etc.

					
16 
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						4.08

					
					
						Private Sale

					
16 
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						4.09

					
					
						Application of Proceeds

					
16 
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						4.10

					
					
						Attorney in Fact

					
17 
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						4.11

					
					
						Perfection and Recordation

					
17 
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						4.12

					
					
						Termination

					
17 
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						4.13

					
					
						Further Assurances

					
17 
				
	
					
						 

					
					
						 

					
					
						 

				

		 

 

	

      

         

      

    	

      

         

      

    	

      

        Page

      

    
	
					
						

					
						Section 5.

					
					
						Miscellaneous

					
17 
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						5.01

					
					
						Notices

					
18 
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						5.02

					
					
						No Waiver

					
18 
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						5.03

					
					
						Amendments, Etc.

					
18 
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						5.04

					
					
						Expenses

					
18 
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						5.05

					
					
						Successors and Assigns

					
18 
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						5.06

					
					
						Counterparts

					
18 
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						5.07

					
					
						Governing Law; Submission to Jurisdiction; Etc.

					
18 
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						5.08

					
					
						WAIVER OF JURY TRIAL

					
19 
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						5.09

					
					
						Captions

					
19 
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						5.10

					
					
						Agents and Attorneys in Fact

					
19 
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						5.11

					
					
						Severability

					
19 
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						5.12

					
					
						Additional Grantors

					
19 
				

		
			 
		

		
			 
		

		
			

		 

		

			-  ii -

		

 

		

		
			 
		

		
			SCHEDULES AND EXHIBITS
		

		
			 
		

			
					
						Exhibit A

					
					
						- 

					
					
						Form of Joinder

				
	
					
						Schedule 1

					
					
						- 

					
					
						Certain Grantor Information

				
	
					
						Schedule 2

					
					
						- 

					
					
						Pledged Shares

				
	
					
						Schedule 3

					
					
						- 

					
					
						Promissory Notes

				
	
					
						Schedule 4

					
					
						- 

					
					
						Copyrights, Copyright Registrations And Applications For Copyright Registrations

				
	
					
						Schedule 5

					
					
						- 

					
					
						Patents And Patent Applications

				
	
					
						Schedule 6

					
					
						- 

					
					
						Trade Names, Trademarks, Services Marks, Trademark And Service Mark Registrations And Applications For Trademark And Service Mark Registrations

				
	
					
						Schedule 7

					
					
						- 

					
					
						Deposit Accounts, Securities Accounts And Commodity Accounts

				
	
					
						Schedule 8

					
					
						- 

					
					
						Commercial Tort Claims

				

		
			 
		

		
			 
		

		
			

		 

		

			i

		

 

		

		
			SECURITY AGREEMENT
		

		
			 
		

		
			SECURITY AGREEMENT dated as of December 30, 2016, among T2 BIOSYSTEMS, INC., a Delaware corporation (“Borrower”; collectively with each entity that becomes a “Grantor” hereunder as contemplated by Section 5.12, the “Grantors” and each, a “Grantor”), and CRG SERVICING LLC, a Delaware limited liability company (“CRG Servicing”), as administrative agent and collateral agent for the Lenders (in such capacities, together with its successors and assigns, “Administrative Agent”).
		

		
			 
		

		
			The Lenders have agreed to provide term loans to Borrower as provided in the Loan Agreement (as defined below).
		

		
			 
		

		
			Each Grantor (other than Borrower) party hereto from time to time has guaranteed the obligations of Borrower to the Secured Parties under the Loan Agreement.
		

		
			 
		

		
			To induce the Lenders to extend credit under the Loan Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, each Grantor has agreed to grant a security interest in the Collateral (as defined below) of such Grantor as security for the Secured Obligations (as defined below).  
		

		
			 
		

		
			Accordingly, the parties hereto agree as follows:
		

		
			 
		

		
			Section 1.        Definitions, Etc.
		

		
			 
		

		
			1.01     Certain Uniform Commercial Code Terms.  As used herein, the terms “Accession,” “Account,”  “As-Extracted Collateral,”  “Chattel Paper,”  “Check,” “Commodity Account,”  “Commodity Contract,”  “Deposit Account,”  “Document,”  “Electronic Chattel Paper,”  “Encumbrance,” “Equipment,”  “Fixture,”  “General Intangible,”  “Goods,”  “Instrument,”  “Inventory,”  “Investment Property,”  “Letter of Credit,”  “Proceeds,” “Promissory Note,” “Record” and “Supporting Obligation” have the respective meanings set forth in Article 9 of the NYUCC, and the terms “Certificated Security,”  “Entitlement Holder,”  “Financial Asset,”  “Securities Account,”  “Security,”  “Security Entitlement” and “Uncertificated Security” have the respective meanings set forth in Article 8 of the NYUCC.
		

		
			 
		

		
			1.02     Additional Definitions.  In addition, as used herein:
		

		
			 
		

		
			“Administrative Agent” has the meaning assigned to such term in the preamble.
		

		
			 
		

		
			“Collateral” has the meaning assigned to such term in Section 3.01.
		

		
			 
		

		
			“Controlled Foreign Corporation” means a “controlled foreign corporation” as defined in the Code. 
		

		
			 
		

		
			“Copyrights” means all copyrights, copyright registrations and applications for copyright registrations, including all renewals and extensions thereof, all rights to recover for past, present or future infringements thereof and all other rights whatsoever accruing thereunder or pertaining thereto.
		

		
			
		

		
			

		 

		

			2

		

 

		

		
			“Excluded Account” means (a) any account used solely for the purpose of payroll, employee benefits, security deposit, withholding tax or other similar trust or fiduciary accounts, (c) any Deposit Account used exclusively in connection with pledges or deposits permitted under Section 9.02(e) or Section 9.02(o) of the Loan Agreement, (d) any Deposit Account used exclusively for purposes of cash collateral securing credit agreement indebtedness and hedging obligations permitted under Section 9.01(k) and Section 9.01(j) of the Loan Agreement, and (e), subject to the prior written consent of the Administrative Agent, which shall not be unreasonably withheld, foreign accounts with an aggregate balance not to exceed $100,000 at any time.
		

		
			 
		

		
			“Excluded Asset” means:
		

		
			 
		

		
			(a) any intent-to-use Trademark application prior to the filing of a “Statement of Use” or “Amendment to Allege Use” with respect thereto, to the extent, if any, that, and solely during the period, if any, in which, the grant of a security interest therein would impair the validity or enforceability of such intent-to-use trademark application under applicable federal laws; and
		

		
			 
		

		
			(b) to the extent any property is excluded from the Collateral solely by operation of Section 3.02, such property.
		

		
			 
		

		
			“Federal A/R Account” means any Deposit Account into which payments on Medicare or Medicaid accounts receivable, or other accounts receivable under which the Federal government is the account debtor, directly are paid (regardless of whether such Deposit Account is identified as such on Schedule 7).
		

		
			 
		

		
			“Initial Pledged Shares” means the Shares of each Issuer beneficially owned by any Grantor on the date hereof and identified in Schedule 2.
		

		
			 
		

		
			“Issuers” means, collectively, (a) the respective Persons identified on Schedule 2 under the caption “Issuer”, (b) any other Person that shall at any time be a Subsidiary of any Grantor, and (c) the issuer of any equity securities hereafter owned by any Grantor.
		

		
			 
		

		
			“Joinder” has the meaning specified in Section 5.12.
		

		
			 
		

		
			“Loan Agreement” means that certain term loan agreement, dated as of the date hereof, among Borrower, the Subsidiary Guarantors from time to time party thereto, the lenders from time to time party thereto and Administrative Agent, as such agreement is amended, supplemented, or otherwise modified, restated, extended, renewed, or replaced from time to time. 
		

		
			 
		

		
			“Motor Vehicles” means motor vehicles, tractors, trailers and other like property, if the title thereto is governed by a certificate of title or ownership.
		

		
			 
		

		
			“NYUCC” means the Uniform Commercial Code as in effect from time to time in the State of New York.
		

		
			 
		

		
			“Patents” means all patents and patent applications, including the inventions and improvements described and claimed therein together with the reissues, divisions, continuations, renewals, extensions and continuations in part thereof, all income, royalties, damages and payments now or hereafter due and/or payable with respect thereto, all damages and payments
		

		
			
		

		
			

		 

		

			3

		

 

		

		
			for past or future infringements thereof and rights to sue therefor, and all rights corresponding thereto throughout the world.
		

		
			 
		

		
			“Pledged Property” means the Deposit Accounts, the Pledged Shares, the Securities Accounts, the Commodity Accounts and all or any part of any other present or future interests of any Grantors in Investment Property, including all of the present or future Security Entitlements of such Grantor as Entitlement Holders in respect of such Security Entitlements, all of the present or future Commodity Contracts of such Grantor as commodity customers in respect of such Commodity Contracts, all credit balances relating to such property, all Chattel Paper, Electronic Chattel Paper, Instruments and Letter Of Credit Rights of Grantors, and all other rights and benefits accruing to or arising in connection with such property, and all Proceeds of such property.
		

		
			 
		

		
			“Pledged Shares” means, collectively, (a) the Initial Pledged Shares and (b) all other Shares of any Issuer now or hereafter owned by any Grantor, together in each case with (i) all certificates representing the same, (ii) all shares, securities, moneys or other property representing a dividend on or a distribution or return of capital on or in respect of the Pledged Shares, or resulting from a split-up, revision, reclassification or other like change of the Pledged Shares or otherwise received in exchange therefor, and any warrants, rights or options issued to the holders of, or otherwise in respect of, the Pledged Shares, and (iii) without prejudice to any provision of any of the Loan Documents prohibiting any merger or consolidation by an Issuer, all Shares of any successor entity of any such merger or consolidation.
		

		
			 
		

		
			“Secured Obligations” means, with respect to each Grantor, the Obligations of such Grantor (other than Warrant Obligations).
		

		
			 
		

		
			“Shares” means shares of capital stock of a corporation, limited liability company interests, partnership interests and other ownership or equity interests of any class in any Person.
		

		
			 
		

		
			“Trademarks” means all trade names, trademarks and service marks, logos, trademark and service mark registrations, and applications for trademark and service mark registrations, including all renewals of trademark and service mark registrations, all rights to recover for all past, present and future infringements thereof and all rights to sue therefor, and all rights corresponding thereto throughout the world, together, in each case, with the product lines and goodwill of the business connected with the use thereof.
		

		
			 
		

		
			1.03     Other Defined Terms.  All other capitalized terms used and not defined herein have the meanings ascribed to them in the Loan Agreement.
		

		
			 
		

		
			Section 2.        Representations and Warranties.  Each Grantor represents and warrants to the Secured Parties that:
		

		
			 
		

		
			2.01     Organizational Matters; Enforceability, Etc.  (a)  Each Grantor is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization.  The execution, delivery and performance of this Agreement, and the grant of the security interests pursuant hereto, (i) are within such Grantor’s powers and have been duly authorized by all necessary corporate or other action, (ii) do not require any consent or approval of, registration or filing with, or any other action by, any governmental authority or court, except
		

		
			
		

		
			

		 

		

			4

		

 

		

		
			for (A) such as have been obtained or made and are in full force and effect and (B) filings and recordings in respect of the security interests created pursuant hereto, (iii) will not violate any material applicable law or regulation or the charter, bylaws or other organizational documents of such Grantor or any order of any governmental authority or court binding upon such Grantor or its property, (iv) will not violate or result in a default under any indenture, agreement or other instrument binding upon such Grantor or any of its assets, or give rise to a right thereunder to require any payment to be made by any such person, except where failure to do so, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect, and (v) except for the security interests created pursuant hereto, will not result in the creation or imposition of any Lien on any asset of such Grantor.
		

		
			 
		

		
			(b)     This Agreement has been duly executed and delivered by such Grantor and constitutes, a legal, valid and binding obligation of such Grantor, enforceable against such Grantor in accordance with its terms, except as such enforceability may be limited by (i) bankruptcy, insolvency, reorganization, moratorium or similar laws of general applicability affecting the enforcement of creditors’ rights and (ii) the application of general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).
		

		
			 
		

		
			2.02     Title.  (a)  Such Grantor is the sole beneficial owner of the Collateral in which it purports to grant a lien hereunder, and no lien exists upon such Collateral (and no right or option to acquire the same exists in favor of any other Person) other than Permitted Liens.
		

		
			 
		

		
			(b)     The security interest created or provided for herein constitutes a valid first-priority (subject to Permitted Priority Liens) perfected lien on such Collateral, subject, for the following Collateral, to the occurrence of the following: (i) in the case of Collateral in which a security interest may be perfected by filing a financing statement under the UCC, the filing of a UCC financing statement naming such Grantor as debtor, the Secured Parties as secured parties, and listing all personal property as collateral, (ii) with respect to any Deposit Account, Securities Account or Commodity Account (other than Excluded Accounts), the execution of agreements among such Grantor, the applicable financial institution and Administrative Agent, effective to grant “control” (as defined in the UCC) over such Deposit Account, Securities Account or Commodity Account to Administrative Agent, (iii) with respect to any Intellectual Property not described in the foregoing clause (i), the filing of this Security Agreement or a short-form security agreement with the applicable Intellectual Property office of the applicable government, and (iv) in the case of all certificated Shares, the delivery thereof to Administrative Agent, properly endorsed for transfer to Administrative Agent or in blank.
		

		
			 
		

		
			2.03     Names, Etc.  As of the date hereof, the full and correct legal name, type of organization, jurisdiction of organization, organizational ID number (if applicable) and mailing address of such Grantor as of the date hereof are correctly set forth in Schedule 1.  Schedule 1 correctly specifies (i) the place of business of such Grantor or, if such Grantor has more than one place of business, the location of the chief executive office of such Grantor and (ii) each location where Collateral in excess of $250,000 is stored or located.
		

		
			 
		

		
			2.04     Changes in Circumstances.  Such Grantor has not (a) within the period of four months prior to the date hereof, changed its location (as defined in Section 9-307 of the
		

		
			
		

		
			

		 

		

			5

		

 

		

		
			NYUCC), or (b) except as specified in Schedule 1 as of the date hereof, heretofore changed its name.
		

		
			 
		

		
			2.05     Pledged Shares.  (a)  The Initial Pledged Shares constitute 100% of the issued and outstanding Shares of each Issuer (other than a First-Tier Foreign Subsidiary that is not a Subsidiary Guarantor to which Section 3.02(a) applies) beneficially owned by such Grantor on the date hereof (other than any Shares held in a Securities Account referred to in Schedule 7), whether or not registered in the name of such Grantor and (b) in the case of each Issuer that is a other than a First-Tier Foreign Subsidiary that is not a Subsidiary Guarantor to which Section 3.02(a) applies, (i) 65% of the issued and outstanding shares of voting stock of such Issuer and (ii) 100% of all other issued and outstanding shares of capital stock of whatever class of such Issuer beneficially owned by such Grantor on the date hereof, in each case whether or not registered in the name of such Grantor.  Schedule 2 correctly identifies, as at the date hereof, the respective Issuers of the Initial Pledged Shares and (in the case of any corporate Issuer) the respective class and par value of such Shares and the respective number of such Shares (and registered owner thereof) represented by each such certificate.
		

		
			 
		

		
			(b)     The Initial Pledged Shares are, and all other Pledged Shares that in the future will constitute Collateral will be, (i) duly authorized, validly existing, fully paid and non-assessable (in the case of any Shares issued by a corporation) and (ii) duly issued and outstanding (in the case of any equity interest in any other entity).  None of such Pledged Shares are or will be subject to any contractual restriction, or any restriction under the charter, bylaws, partnership agreement or other organizational instrument of the respective Issuer thereof, upon the transfer of such Pledged Shares (except for any such restriction contained in or expressly permitted under any Loan Document, including any Restrictive Agreement permitted under Section 9.11 of the Loan Agreement).
		

		
			 
		

		
			2.06     Promissory Notes.  Schedule 3 sets forth a complete and correct list of all Promissory Notes (other than any held in a Securities Account referred to in Schedule 7) held by such Grantor on the date hereof.
		

		
			 
		

		
			2.07     Intellectual Property.  (a)  Schedules 4,  5 and 6, respectively, set forth a complete and correct list of all of the following owned by such Grantor on the date hereof (or, in the case of any supplement to said Schedules 4,  5 and 6, effecting a pledge thereof, as of the date of such supplement): (i) applied for or registered Copyrights, (ii) applied for or registered Patents, including the jurisdiction and patent number, (iii) applied for or registered Trademarks, including the jurisdiction, trademark application or registration number and the application or registration date, and (iv) trade names.
		

		
			 
		

		
			(b)     Except pursuant to licenses and other user agreements entered into by such Grantor in the ordinary course of business that are listed in said Schedules 4, 5 and 6 (including as supplemented by any supplement effecting a pledge thereof), such Grantor has done nothing to authorize or enable any other Person to use any material Copyright, Patent or Trademark listed in said Schedules 4, 5 and 6 (as so supplemented), and all registrations listed in said Schedules 4, 5 and 6 (as so supplemented) are, except as noted therein, in full force and effect.  
		

		
			
		

		
			

		 

		

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			(c)     Such Grantor owns and possesses the right to use all Copyrights, Patents and Trademarks, in the ordinary course of business, listed on Schedules 4,  5 and 6, respectively.  To such Grantor’s knowledge, (i) except as set forth on Schedule 4,  5 or 6 (as supplemented by any supplement effecting a pledge thereof), there is no violation by others of any right of such Grantor with respect to any Copyright, Patent or Trademark listed on Schedule 4,  5 or 6 (as so supplemented), respectively, and (ii) such Grantor is not infringing in any respect upon any Copyright, Patent or Trademark of any other Person, the effect of which infringement would have a Material Adverse Effect.  No proceedings alleging such infringement have been instituted or are pending against such Grantor and no written claim against such Grantor has been received by such Grantor, alleging any such violation, except as may be set forth on Schedule 4,  5 or 6 (as so supplemented).
		

		
			 
		

		
			2.08     Deposit Accounts, Securities Accounts and Commodity Accounts.  Schedule 7 sets forth a complete and correct list of all Deposit Accounts, Securities Accounts and Commodity Accounts of such Grantor on the date hereof.
		

		
			 
		

		
			2.09     Commercial Tort Claims.  Schedule 8 sets forth a complete and correct list of all commercial tort claims greater than $250,000 of such Grantor in existence on the date hereof.
		

		
			 
		

		
			2.10     Update of Schedules.  Each of Schedules 1 through 8 may be updated by Borrower from time to time to insure the continued accuracy of the representations set forth in this Section 2 to be made on any upcoming date on which representations and warranties are made incorporating the information in such Schedule, by Borrower providing notice (attaching an amended and restated version of such Schedule) in accordance with Section 13.02 of the Loan Agreement.
		

		
			 
		

		
			Section 3.        Collateral.  
		

		
			 
		

		
			3.01     Granting Clause.  As collateral security for the payment in full when due (whether at stated maturity, by acceleration or otherwise) of the Secured Obligations, each Grantor hereby pledges and grants to each Lender, each other Secured Party and Administrative Agent, for the benefit of the Secured Parties, a security interest in all of such Grantor’s right, title and interest in, to and under all of its personal property, in each case whether tangible or intangible, wherever located, and whether now owned by such Grantor or hereafter acquired and whether now existing or hereafter coming into existence, including without limitation all of the following, but excluding all Excluded Assets (collectively, and subject to the proviso at the end of this Section 3.01, “Collateral”):
		

		
			 
		

		
			(a)     all Accounts:
		

		
			 
		

		
			(b)     all As-Extracted Collateral;
		

		
			 
		

		
			(c)     all Chattel Paper and other Records;
		

		
			 
		

		
			(d)     all Checks; 
		

		
			 
		

		
			(e)     all commercial tort claims, as defined in Section 9-102(a)(13) of the NYUCC, arising out of the events described in Schedule 8;  
		

		
			
		

		
			

		 

		

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			(f)     all Deposit Accounts;
		

		
			 
		

		
			(g)     all Documents;
		

		
			 
		

		
			(h)     all Encumbrances; 
		

		
			 
		

		
			(i)      all Equipment;
		

		
			 
		

		
			(j)      all Fixtures;
		

		
			 
		

		
			(k)     all General Intangibles;
		

		
			 
		

		
			(l)      all Goods not otherwise described in this Section 3;
		

		
			 
		

		
			(m)    all Instruments, including all Promissory Notes;
		

		
			 
		

		
			(n)     all Intellectual Property;
		

		
			 
		

		
			(o)     all Inventory;
		

		
			 
		

		
			(p)     all Letters of Credit and all Supporting Obligations;
		

		
			 
		

		
			(q)     all Investment Property not otherwise described in this Section 3, including all Securities, all Securities Accounts and all Security Entitlements with respect thereto and Financial Assets carried therein, and all Commodity Accounts and Commodity Contracts;
		

		
			 
		

		
			(r)     all Pledged Shares; and
		

		
			 
		

		
			(s)     all Proceeds of any of the foregoing, all Accessions to and substitutions and replacements for, any of the Collateral, and all offspring, rents, profits and products of any of the Collateral, and, to the extent related to any Collateral, all books, correspondence, credit files, records, invoices and other papers (including all tapes, cards, computer runs and other papers and documents in the possession or under the control of such Grantor or any computer bureau or service company from time to time acting for such Grantor);
		

		
			 
		

		
			provided, however, that, nothing set forth in this Section 3.01 or any other provision of this Agreement or any other Loan Document shall at any time constitute the grant of a security interest in, or  a Lien on, any Excluded Asset, none of which shall constitute Collateral.
		

		
			 
		

		
			3.02     First-Tier Foreign Subsidiary; Certain Leases and Licenses.  Notwithstanding anything herein to the contrary, in no event shall the Collateral include, and each Grantor shall not be deemed to have granted a security interest in, any of such Grantor’s right, title or interest in:
		

		
			 
		

		
			(a)     any of the outstanding voting capital stock or other ownership interests of a First-Tier Foreign Subsidiary that is not a Grantor in excess of 65% of the voting power of all classes of capital stock or other ownership interests of such First-Tier Foreign Subsidiary entitled to vote; provided that (i) immediately upon the amendment of the Code to allow the pledge of a greater percentage of the voting power of capital stock or other ownership interests in such First-
		

		
			
		

		
			

		 

		

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			Tier Foreign Subsidiary without adverse tax consequences, the Collateral shall include, and each Grantor shall be deemed to have granted a security interest in, such greater percentage of capital stock or other ownership interests of each such First-Tier Foreign Subsidiary in which it has any interest and (ii) if no adverse tax consequences to the applicable Grantor shall arise or exist in connection with the pledge of any such First-Tier Foreign Subsidiary, the Collateral shall include, and the applicable Grantor shall be deemed to have granted a security interest in, all of the capital stock or other ownership interests of such First-Tier Foreign Subsidiary held by such Grantor; or
		

		
			 
		

		
			(b)     any lease, license, contract or agreement to which any Grantor is a party, in each case, if and only if, and solely to the extent that, (A) the grant of a security interest therein shall constitute or result in a breach, termination or default or invalidity thereunder or thereof (other than to the extent that any such term would be rendered ineffective pursuant to Sections 9-406, 9-407, 9-408 or 9-409 of the UCC of any relevant jurisdiction or any other applicable law or principles of equity) and (B) such lease, license, contract or agreement (1) is an “off the shelf” license of intellectual property that is not material to the operation of the business of the applicable Grantor or which can be replaced without a material expenditure, or (2) is executed by the applicable Grantor after the date hereof (provided that the applicable Grantor, prior to entering into or obtaining such lease, license, contract or agreement, used commercially reasonable efforts to permit the collateral assignment thereof but was unsuccessful in obtaining such permission); provided that immediately upon the time at which the consequences described in the foregoing clause (A) shall no longer exist, the Collateral shall include, and the applicable Grantor shall be deemed to have granted a security interest in, all of such Grantor’s right, title and interest in such lease, license, contract or agreement.  
		

		
			 
		

		
			Section 4.        Further Assurances; Remedies.  In furtherance of the grant of the security interest pursuant to Section 3, the Grantors hereby jointly and severally agree with the Secured Parties as follows:
		

		
			 
		

		
			4.01     Delivery and Other Perfection.  Each Grantor shall promptly from time to time give, execute, deliver, file, record, authorize or obtain all such financing statements, continuation statements, notices, instruments, documents, agreements or consents or other papers as may be necessary or desirable in the reasonable judgment of the Majority Lenders to create, preserve, perfect, maintain the perfection of or validate the security interest granted pursuant hereto or to enable the Secured Parties to exercise and enforce their rights hereunder with respect to such security interest, and without limiting the foregoing, shall:
		

		
			 
		

		
			(a)       if any of the Pledged Shares, Investment Property or Financial Assets constituting part of the Collateral are received by the Grantor in physical form, forthwith (x) deliver to Administrative Agent the certificates or instruments representing or evidencing the same, duly endorsed in blank or accompanied by such instruments of assignment and transfer in such form and substance as Administrative Agent may reasonably request, all of which thereafter shall be held by Administrative Agent, pursuant to the terms of this Agreement, as part of the Collateral and (y) take such other action as Administrative Agent may deem necessary or appropriate in its reasonable discretion to duly record or otherwise perfect the security interest created hereunder in such Collateral;
		

		
			
		

		
			

		 

		

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			(b)       promptly from time to time deliver to Administrative Agent any and all Instruments constituting part of the Collateral, endorsed and/or accompanied by such instruments of assignment and transfer in such form and substance as Administrative Agent may request; provided that (other than in the case of the Promissory Notes described in Schedule 3) until the occurrence of an Event of Default that has not been waived in writing by the Majority Lenders in accordance with the Loan Agreement, such Grantor may retain for collection in the ordinary course any Instruments received by such Grantor in the ordinary course of business and Administrative Agent shall, promptly upon request of such Grantor, make appropriate arrangements for making any Instrument delivered by such Grantor available to such Grantor for purposes of presentation, collection or renewal (any such arrangement to be effected, to the extent requested by Administrative Agent, against trust receipt or like document);
		

		
			 
		

		
			(c)       (i)     promptly from time to time enter into such control agreements, each in form and substance reasonably acceptable to the Majority Lenders, as may be required to perfect the security interest created hereby in any and all Deposit Accounts, Investment Property, Electronic Chattel Paper and Letter Of Credit Rights (in each case other than Excluded Accounts), and will promptly furnish to Administrative Agent true copies thereof; except with respect to Federal A/R Accounts;
		

		
			 
		

		
			(ii)     ensure at all times that all Federal A/R Accounts are subject to an arrangement whereby all funds on deposit therein automatically shall be swept at the end of each Business Day into an account over which Secured Parties have “control” (as defined in the UCC); and
		

		
			 
		

		
			(iii)     (A) in the case of account debtors that make payments to such Grantor directly into an account, ensure that all such account debtors (1) other than Medicare, Medicaid or any other Federal government agency, are instructed to make such payments into a Deposit Account other than a Federal A/R Account, and (2) consisting of Medicare, Medicaid or any other Federal government agency, are instructed to make such payments into a Federal A/R Account, and (B) deposit all checks received directly by such Grantor from account debtors (1) other than Medicare, Medicaid or any other Federal government agency, into an account over which Secured Parties have “control” (as defined in the UCC), and (2) consisting of  Medicare, Medicaid or any other Federal government agency, into a Federal A/R Account;
		

		
			 
		

		
			(d)       promptly from time to time upon the reasonable request of Administrative Agent, (i)  execute and deliver such short-form security agreements as the Majority Lenders may deem necessary or desirable in their reasonable discretion to protect the interests of the Secured Parties in respect of that portion of the Collateral consisting of Intellectual Property, and (ii) take such other action as Administrative Agent may deem necessary or appropriate in its reasonable discretion to duly record or otherwise perfect the security interest created hereunder in that portion of the Collateral consisting of Intellectual Property registered or located outside of the United States;
		

		
			 
		

		
			(e)       promptly upon reasonable request of Administrative Agent, cause Administrative Agent on behalf of the Secured Parties to be listed as the lienholder on any certificate of title or ownership covering any Motor Vehicle (other than Motor Vehicles
		

		
			
		

		
			

		 

		

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			constituting Inventory) and within 120 days of such request deliver evidence of the same to Administrative Agent;
		

		
			 
		

		
			(f)       keep full and accurate books and records relating to the Collateral, and stamp or otherwise mark such books and records in such manner as the Majority Lenders may require in their reasonable discretion in order to reflect the security interests granted by this Agreement; 
		

		
			 
		

		
			(g)       permit representatives of the Secured Parties, upon reasonable prior notice and no more than once per year  (unless an Event of Default has occurred and is continuing), at any time during normal business hours to inspect and make abstracts from its books and records pertaining to the Collateral, and permit representatives of the Secured Parties to be present at such Grantor’s place of business to receive copies of communications and remittances relating to the Collateral, and forward copies of any notices or communications received by such Grantor with respect to the Collateral, all in such manner as the Majority Lenders may require; and
		

		
			 
		

		
			(h)       (i) promptly from time to time upon the reasonable request of the Majority Lenders, use commercially reasonable efforts to execute and deliver such real property security documents, landlord consents and collateral access agreements with respect to real Property owned or leased (as tenant) by such Grantor in the United States, (ii) if permitted by applicable law, obtain a bailee waiver or other agreement from the lessor of each leased property, the mortgagor of owned property or bailee or consignee with respect to any warehouse, processor, converted facility or other location where Collateral in excess of $250,000 is stored or located at such individual location and (iii) cause to be recorded in the appropriate real property records such documents delivered pursuant to this Section 4.01(h) as Administrative Agent may deem necessary or appropriate in its reasonable discretion.
		

		
			 
		

		
			4.02     Other Financing Statements or Control.  Except as otherwise permitted under the Loan Documents, no Grantor shall (a) file, or authorize or permit to be filed, in any jurisdiction, any financing statement or like instrument with respect to any of the Collateral in which the Secured Parties or any holder of a Permitted Priority Lien are not named as the sole secured parties (except to the extent that such financing statement or instrument relates to a Permitted Lien or an Excluded Asset), or (b) cause or permit any Person other than Administrative Agent or the Secured Parties or any holder of a Lien permitted under Section 9.02(c) of the Loan Agreement to have “control” (as defined in Section 9-104, 9-105, 9-106 or 9-107 of the NYUCC) of any Deposit Account, Securities Account, Commodity Account, Electronic Chattel Paper, Investment Property or Letter Of Credit Right constituting part of the Collateral.
		

		
			 
		

		
			4.03     Preservation of Rights.  The Secured Parties shall not be required to take steps necessary to preserve any rights against prior parties to any of the Collateral.
		

		
			 
		

		
			4.04     Special Provisions Relating to Certain Collateral.  (a)  Pledged Shares.
		

		
			 
		

		
			(i)     The Grantors will cause the Pledged Shares to constitute at all times (1) 100% of the total number of Shares of each Issuer (other than a First-Tier Foreign Subsidiary to which Section 3.02(a) applies) then outstanding owned by the Grantors and (2) in
		

		
			
		

		
			

		 

		

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			the case of any Issuer that is a First-Tier Foreign Subsidiary to which Section 3.02(a), 65% of the total number of shares of voting stock of such Issuer and 100% of the total number of shares of all other classes of capital stock of such Issuer then issued and outstanding owned by the Grantors.
		

		
			 
		

		
			(ii)     Except during the continuation of an Event of Default that has not been waived in writing by the Majority Lenders in accordance with the Loan Agreement, the Grantors shall have the right to exercise all voting, consensual and other powers of ownership pertaining to the Pledged Shares for all purposes not inconsistent with the terms of this Agreement or the other Loan Documents, provided that the Grantors jointly and severally agree that they will not vote the Pledged Shares in any manner that is inconsistent with the terms of this Agreement or the other Loan Documents; and Administrative Agent and Secured Parties shall execute and deliver to the Grantors or cause to be executed and delivered to the Grantors all such proxies, powers of attorney, dividend and other orders, and all such instruments, without recourse, as the Grantors may reasonably request for the purpose of enabling the Grantors to exercise the rights and powers that it is entitled to exercise pursuant to this Section 4.04(a)(ii).
		

		
			 
		

		
			(iii)     Until the occurrence of an Event of Default that has not been waived in writing by the Majority Lenders in accordance with the Loan Agreement, the Grantors shall be entitled to receive and retain any dividends, distributions or proceeds on the Pledged Shares.
		

		
			 
		

		
			(iv)     During the continuation of an Event of Default that has not been waived in writing by the Majority Lenders in accordance with the Loan Agreement, whether or not the Secured Parties or any of them exercises any available right to declare any Secured Obligations due and payable or seeks or pursues any other relief or remedy available to them under applicable law or under this Agreement, the other Loan Documents or any other agreement relating to such Secured Obligation, all dividends and other distributions on the Pledged Shares that would otherwise be paid to any Grantor shall instead be paid directly to Administrative Agent for distribution to the Secured Parties and retained by them as part of the Collateral, subject to the terms of this Agreement, and, if Administrative Agent shall so request in writing, the Grantors jointly and severally agree to execute and deliver to Administrative Agent appropriate additional dividend, distribution and other orders and documents to that end, provided that if such Event of Default is waived in writing by the Majority Lenders in accordance with the Loan Agreement, any such dividend or distribution theretofore paid to Administrative Agent shall, upon request of the Grantors (except to the extent theretofore applied to the Secured Obligations), be returned by Administrative Agent to the Grantors.
		

		
			 
		

		
			(b)       Intellectual Property.  (i)  For the purpose of enabling the Secured Parties to exercise rights and remedies under Section 4.05 at such time as the Secured Parties shall be lawfully entitled to exercise such rights and remedies, and for no other purpose, each Grantor hereby grants to Administrative Agent, to the extent assignable, an irrevocable, non-exclusive license (exercisable without payment of royalty or other compensation to such Grantor) to use, and the right to assign, license or sublicense, any of the Intellectual Property now owned or hereafter acquired by such Grantor, wherever the same may be located, including in such license reasonable access to all media in which any of the licensed items may be recorded or stored and to all computer programs used for the compilation or printout thereof.
		

		
			
		

		
			

		 

		

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			(ii)     Notwithstanding anything contained herein to the contrary, but subject to any provision of the Loan Documents that limits the rights of any Grantor to dispose of its property, other than during the continuance of an Event of Default that has not been waived in writing by the Majority Lenders in accordance with the Loan Agreement, the Grantors will be permitted to exploit, use, enjoy, protect, defend, enforce, license, sublicense, assign, sell, dispose of or take other actions with respect to the Intellectual Property in the ordinary course of the business of the Grantors.  In furtherance of the foregoing, other than during the continuance of an Event of Default that has not been waived in writing by the Majority Lenders in accordance with the Loan Agreement, the Secured Parties or Administrative Agent shall from time to time, upon the request of the respective Grantor, execute and deliver any instruments, certificates or other documents, in the form so requested, that the Grantors shall have certified are appropriate in its judgment to allow it to take any action permitted above (including relinquishment of the license provided pursuant to Section 4.04(b)(i) as to any specific Intellectual Property).  Further, upon the payment in full of all of the Secured Obligations (other than contingent indemnification obligations for which no claim has been made) or earlier expiration of this Agreement or release of the Collateral, the  license granted pursuant to Section 4.04(b)(i) shall be immediately released, void, and of no further force or effect.  The exercise of rights and remedies under Section 4.05 by the Secured Parties shall not terminate the rights of the holders of any licenses, covenants not to sue or sublicenses theretofore granted by the Grantors in accordance with the first sentence of this Section 4.04(b)(ii).
		

		
			 
		

		
			(c)       Chattel Paper.  The Grantors will (i) deliver to Administrative Agent each original of each item of Chattel Paper at any time constituting part of the Collateral each time the aggregate value of all Chattel Paper in the Grantor’s possession exceeds $250,000, and (ii) cause each such original and each copy thereof to bear a conspicuous legend, in form and substance satisfactory to Administrative Agent, indicating that such Chattel Paper is subject to the security interest granted hereby and that purchase of such Chattel Paper by a Person other than Administrative Agent without the consent of the Majority Lenders would violate the rights of the Secured Parties.
		

		
			 
		

		
			(d)       Agreements.  Each Grantor shall use commercially reasonable efforts to ensure that each Material Agreement entered into after the date hereof (i) may be collaterally assigned to secure the Secured Obligations, and (ii) may, in the event of any exercise of remedies hereunder, be assigned to a purchaser in a foreclosure or other sale of all or substantially all of the assets of such Grantor or all or substantially all of the business or product to which such agreement relates (subject to assumption by such purchaser of all obligations under such Material Agreement),.  The provisions described in the preceding sentence need not be included directly in such Material Agreement, but may be agreed by the applicable Material Agreement counterparty in a separate letter agreement.
		

		
			 
		

		
			4.05     Remedies.  (a)  Rights and Remedies Generally upon Event of Default.  During the continuation of an Event of Default that has not been waived in writing by the Majority Lenders in accordance with the Loan Agreement, subject to the other Loan Documents (including the provisions of Section 12 of the Loan Agreement), the Secured Parties shall have all of the rights and remedies with respect to the Collateral of a secured party under the NYUCC (whether or not the Uniform Commercial Code is in effect in the jurisdiction where the rights and remedies are asserted) and such additional rights and remedies to which a secured party is
		

		
			
		

		
			

		 

		

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			entitled under the laws in effect in any jurisdiction where any rights and remedies hereunder may be asserted, including the right, to the fullest extent permitted by law, to exercise all voting, consensual and other powers of ownership pertaining to the Collateral as if the Secured Parties were the sole and absolute owner thereof (and each Grantor agrees to take all such action as may be appropriate to give effect to such right).  During the continuation of an Event of Default that has not been waived in writing by the Majority Lenders in accordance with the terms of the Loan Agreement, Administrative Agent may exercise, on behalf of all the Secured Parties, such rights and remedies of the Secured Parties described above; and without limiting the foregoing, but in each case subject to the Loan Documents:
		

		
			 
		

		
			(i)     Administrative Agent may, in their name or in the name of any Grantor or otherwise, demand, sue for, collect or receive any money or other property at any time payable or receivable on account of or in exchange for any of the Collateral, but shall be under no obligation to do so;
		

		
			 
		

		
			(ii)     Administrative Agent may make any reasonable compromise or settlement deemed desirable with respect to any of the Collateral and may extend the time of payment, arrange for payment in installments, or otherwise modify the terms of, any of the Collateral;
		

		
			 
		

		
			(iii)     Administrative Agent may require the Grantors to notify (and each Grantor hereby authorizes Administrative Agent to so notify) each account debtor in respect of any Account, Chattel Paper or General Intangible, and each obligor on any Instrument, constituting part of the Collateral that such Collateral has been assigned to the Secured Parties hereunder, and to instruct that any payments due or to become due in respect of such Collateral shall be made directly to Administrative Agent or as it may direct (and if any such payments, or any other Proceeds of Collateral, are received by any Grantor they shall be held in trust by such Grantor for the benefit of the Secured Parties and as promptly as possible remitted or delivered to Administrative Agent for application as provided herein);
		

		
			 
		

		
			(iv)     Administrative Agent may require the Grantors to assemble the Collateral at such place or places, convenient to the Secured Parties and the Grantors, as Administrative Agent may direct;
		

		
			 
		

		
			(v)     Administrative Agent may require the Grantors to cause the Pledged Shares to be transferred of record into the name of Administrative Agent or its nominee (and Administrative Agent agrees that if any of such Pledged Shares is transferred into its name or the name of its nominee, Administrative Agent will thereafter promptly give to the respective Grantor copies of any notices and communications received by it with respect to such Pledged Shares); and
		

		
			 
		

		
			(vi)     Administrative Agent may sell, lease, assign or otherwise dispose of all or any part of the Collateral, at such place or places as Administrative Agent deems best, and for cash or for credit or for future delivery (without thereby assuming any credit risk), at public or private sale, without demand of performance or notice of intention to effect any such disposition or of the time or place thereof (except such notice as is required by applicable statute and cannot be waived), and the Secured Parties, Administrative Agent or anyone else may be the
		

		
			
		

		
			

		 

		

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			purchaser, lessee, assignee or recipient of any or all of the Collateral so disposed of at any public sale (or, to the extent permitted by law, at any private sale) and thereafter hold the same absolutely, free from any claim or right of whatsoever kind, including any right or equity of redemption (statutory or otherwise), of the Grantors, any such demand, notice and right or equity being hereby expressly waived and released.  In the event of any sale, assignment, or other disposition of any of the Collateral consisting of Trademarks, the goodwill connected with and symbolized by the Trademarks subject to such disposition shall be included.  Administrative Agent may, without notice or publication, adjourn any public or private sale or cause the same to be adjourned from time to time by announcement at the time and place fixed for the sale, and such sale may be made at any time or place to which the sale may be so adjourned.
		

		
			 
		

		
			(vii)     The Proceeds of each collection, sale or other disposition under this Section 4.05, including by virtue of the exercise of any license granted to Administrative Agent in Section 4.04(b), shall be applied in accordance with Section 4.09.
		

		
			 
		

		
			(b)       Certain Securities Act Limitations.  The Grantors recognize that, by reason of certain prohibitions contained in the Securities Act of 1933, as amended, and applicable state securities laws, Administrative Agent may be compelled, with respect to any sale of all or any part of the Collateral, to limit purchasers to those who will agree, among other things, to acquire the Collateral for their own account, for investment and not with a view to the distribution or resale thereof.  The Grantors acknowledge that any such private sales may be at prices and on terms less favorable to Administrative Agent than those obtainable through a public sale without such restrictions, and, notwithstanding such circumstances, agree that any such private sale shall be deemed to have been made in a commercially reasonable manner and that Administrative Agent shall have no obligation to engage in public sales and no obligation to delay the sale of any Collateral for the period of time necessary to permit the issuer thereof to register it for public sale.
		

		
			 
		

		
			(c)       Notice.  The Grantors agree that to the extent Administrative Agent is required by applicable law to give reasonable prior notice of any sale or other disposition of any Collateral, ten business days’ notice shall be deemed to constitute reasonable prior notice.
		

		
			 
		

		
			(d)       No Assumption of Obligations.  Notwithstanding any provision in this Agreement or any other Loan Document to the contrary, the Secured Parties are not assuming any liability or obligation of any Grantor or any of its Affiliates of whatever nature, whether presently in existence or arising or asserted hereafter.  All such liabilities and obligations shall be retained by and remain obligations and liabilities of the applicable Grantor and/or its Affiliates, as the case may be.  Without limiting the foregoing, the Secured Parties are not assuming and shall not be responsible for any liabilities or Claims of any Grantor or its Affiliates, whether present or future, absolute or contingent and whether or not relating to a Grantor, the Obligor Intellectual Property, and/or the Material Agreements, and each Grantor shall indemnify and save harmless the Secured Parties from and against all such liabilities, Claims and Liens.
		

		
			 
		

		
			4.06     Deficiency.  If the proceeds of sale, collection or other realization of or upon the Collateral pursuant to Section 4.05 are insufficient to cover the costs and expenses of such realization and the indefeasible payment in full in cash of the Secured Obligations (other than
		

		
			
		

		
			

		 

		

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			contingent indemnification obligations for which no claim has been made), the Grantors shall remain liable for any deficiency.
		

		
			 
		

		
			4.07     Locations; Names, Etc.  No Grantor shall (i) change its location (as defined in Section 9-307 of the NYUCC), (ii) change its name from the name shown as its current legal name on Schedule 1, or (iii) agree to or authorize any modification of the terms of any item of Collateral that would result in a change thereof from one Uniform Commercial Code category to another such category (such as from a General Intangible to Investment Property), if the effect thereof would be to result in a loss of perfection of, or diminution of priority for, the security interests created hereunder in such item of Collateral, or the loss of control (within the meaning of Section 9-104, 9-105, 9-106 or 9-107 of the NYUCC) over such item of Collateral, unless in each case 30 days’ prior written notice has been provided to Administrative Agent and such change is not otherwise restricted by the terms of any Loan Document.  No Grantor shall store its Collateral with an aggregate value in excess of $250,000 at any time with a bailee, consignee, or similar party, except for such bailees, consignees and similar parties as are disclosed on Annex I, unless in each case thirty (30) days’ prior written notice has been provided to Administrative Agent.
		

		
			 
		

		
			4.08     Private Sale.  The Secured Parties shall incur no liability as a result of the sale of the Collateral, or any part thereof, at any private sale pursuant to Section 4.05 conducted in a commercially reasonable manner and otherwise in accordance with the other Loan Documents.  Each Grantor hereby waives any claims against Administrative Agent, the Secured Parties or any of them arising by reason of the fact that the price at which the Collateral may have been sold at such a private sale was less than the price that might have been obtained at a public sale or was less than the aggregate amount of the Secured Obligations, even if te Administrative Agent, the Secured Parties or any of them accepts the first offer received and does not offer the Collateral to more than one offeree.
		

		
			 
		

		
			4.09     Application of Proceeds.  Except as otherwise herein expressly provided and except as provided below in this Section 4.09, the Proceeds of any collection, sale or other realization of all or any part of the Collateral pursuant hereto, and any other cash at the time held by Administrative Agent or the Secured Parties under this Section 4, shall be applied by Administrative Agent or the Secured Parties (as the case may be):
		

		
			 
		

		
			First, to the payment of the costs and expenses of such collection, sale or other realization, including reasonable out of pocket costs and expenses of the Secured Parties and the fees and expenses of their agents and counsel, and all expenses incurred and advances made by the Secured Parties in connection therewith;
		

		
			 
		

		
			Next, to the payment in full of the Secured Obligations (other than contingent indemnification obligations for which no claim has been made) in such order as the Secured Parties in their sole discretion shall determine in accordance with the other Loan Documents; and
		

		
			 
		

		
			Finally, to the payment to respective Grantor, or its successors or assigns, or as a court of competent jurisdiction may direct, of any surplus then remaining.
		

		
			
		

		
			

		 

		

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			4.10     Attorney in Fact.  Without limiting any rights or powers granted by this Agreement to the Secured Parties, during the continuation of an Event of Default that has not been waived in writing by the Majority Lenders in accordance with the Loan Agreement, Administrative Agent (and any of its officers, employees or agents) hereby is appointed the attorney in fact of each Grantor for the purpose of carrying out the provisions of this Section 4 and taking any action and executing any instruments that Administrative Agent may deem necessary or advisable to accomplish the purposes hereof, which appointment as attorney in fact is irrevocable and coupled with an interest.  Without limiting the generality of the foregoing, so long as Administrative Agent shall be entitled under this Section 4 to make collections in respect of the Collateral, Administrative Agent shall have the right and power to receive, endorse and collect all checks made payable to the order of any Grantor representing any dividend, payment or other distribution in respect of the Collateral or any part thereof and to give full discharge for the same during the continuation of an Event of Default.
		

		
			 
		

		
			4.11     Perfection and Recordation.  Each Grantor authorizes the Secured Parties to file Uniform Commercial Code financing statements describing the Collateral as “all assets” or “all personal property and fixtures” of such Grantor (provided that no such description shall be deemed to modify the description of Collateral set forth in Section 3).
		

		
			 
		

		
			4.12     Termination.  When all Secured Obligations (other than contingent indemnification obligations for which no claim has been made) shall have been paid in full in cash, this Agreement automatically shall terminate, and Administrative Agent and the Secured Parties shall, upon request of Grantors, cause to be assigned, transferred and delivered, against receipt but without any recourse, warranty or representation whatsoever, any remaining Collateral and money received in respect thereof, to or on the order of the respective Grantor and to be released and canceled all licenses and rights referred to in Section 4.04(b), in each case, at Grantors’ sole expense.  The Secured Parties shall also, at the expense of such Grantor, execute and deliver to such Grantor such Uniform Commercial Code termination statements, certificates for terminating the liens on the Motor Vehicles and such other documentation as shall be reasonably requested by the respective Grantor to effect the termination and release of the liens on the Collateral as required by this Section 4.12, in each case, at Grantors’ sole expense.
		

		
			 
		

		
			4.13     Further Assurances.  Each Grantor agrees that, from time to time upon the written request of Administrative Agent, such Grantor will execute and deliver such further documents and do such other acts and things as Administrative Agent may reasonably request in order fully to effect the purposes of this Agreement and take all further action that may be reasonably required under applicable law (including the laws of each jurisdiction in which each Grantor or any of its Subsidiaries is organized), or that Administrative Agent may reasonably request, in order to grant, preserve, protect and perfect the validity and priority of the Liens created or intended to be created by the Loan Documents. Each Grantor will promptly cause any subsequently acquired or organized Subsidiary to take such action as shall be necessary to ensure that it is a “Subsidiary Guarantor” in accordance with Section 8.12 of the Loan Agreement.  The Secured Parties shall release any lien covering any asset that has been disposed of in accordance with the provisions of the Loan Documents.
		

		
			 
		

		
			Section 5.        Miscellaneous.
		

		
			
		

		
			

		 

		

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			5.01     Notices.  All notices, requests, consents and demands hereunder shall be delivered in accordance with Section 13.02 of the Loan Agreement.
		

		
			 
		

		
			5.02     No Waiver.  No failure on the part of any Secured Party to exercise, and no course of dealing with respect to, and no delay in exercising, any right, power or remedy hereunder shall operate as a waiver thereof; nor shall any single or partial exercise by any Secured Party of any right, power or remedy hereunder preclude any other or further exercise thereof or the exercise of any other right, power or remedy.  The remedies herein are cumulative and are not exclusive of any remedies provided by law.
		

		
			 
		

		
			5.03     Amendments, Etc.  The terms of this Agreement may be waived, altered or amended only by an instrument in writing duly executed by each Grantor and the Majority Lenders (unless the consent of a different group of Persons is required in accordance with Section 13.04 of the Loan Agreement).
		

		
			 
		

		
			5.04     Expenses.  
		

		
			 
		

		
			(a)     The Grantors shall pay or reimburse Administrative Agent and the Secured Parties for costs and expenses in accordance with Section 13.03 of the Loan Agreement.
		

		
			 
		

		
			(b)     The Grantors shall hereby indemnify the Secured Parties, their Affiliates, and their respective directors, officers, employees, attorneys, agents, advisors and controlling parties in accordance with Section 13.03(b) of the Loan Agreement.
		

		
			 
		

		
			5.05     Successors and Assigns.  This Agreement shall be binding upon and inure to the benefit of the respective successors and assigns of each Grantor, Administrative Agent and the Secured Parties (provided that no Grantor shall assign or transfer its rights or obligations hereunder unless consented to in writing by the Majority Lenders in accordance with the Loan Agreement).
		

		
			 
		

		
			5.06     Counterparts.  This Agreement may be executed in any number of counterparts, all of which taken together shall constitute one and the same instrument and any of the parties hereto may execute this Agreement by signing any such counterpart.
		

		
			 
		

		
			5.07     Governing Law; Submission to Jurisdiction; Etc.   (a)  Governing Law.  This Agreement and the rights and obligations of the parties hereunder shall be governed by, and construed in accordance with, the law of the State of New York, without regard to principles of conflicts of laws that would result in the application of the laws of any other jurisdiction; provided that Section 5-1401 of the New York General Obligations Law shall apply.
		

		
			 
		

		
			(b)     Submission to Jurisdiction.  Each Grantor agrees that any suit, action or proceeding with respect to this Agreement or any other Loan Document to which it is a party or any judgment entered by any court in respect thereof may be brought initially in the federal or state courts in Houston, Texas or in the courts of its own corporate domicile and irrevocably submits to the non-exclusive jurisdiction of each such court for the purpose of any such suit, action, proceeding or judgment.  This Section 5.07(b) is for the benefit of the Secured Parties only and, as a result, no Secured Party shall be prevented from taking proceedings in any other
		

		
			
		

		
			

		 

		

			18

		

 

		

		
			courts with jurisdiction.  To the extent allowed by applicable Laws, the Secured Parties may take concurrent proceedings in any number of jurisdictions.
		

		
			 
		

		
			(c)     Waiver of Venue.  Each Grantor irrevocably waives to the fullest extent permitted by law any objection that it may now or hereafter have to the laying of the venue of any suit, action or proceeding arising out of or relating to this Agreement and hereby further irrevocably waives to the fullest extent permitted by law any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum.  A final judgment (in respect of which time for all appeals has elapsed) in any such suit, action or proceeding shall be conclusive and may be enforced in any court to the jurisdiction of which such Grantor is or may be subject, by suit upon judgment.
		

		
			 
		

		
			(d)     Service of Process.  Each party to this Agreement irrevocably consents to service of process in the manner provided for notices in Section 5.01.  Nothing in this Agreement will affect the right of any party to this Agreement to serve process in any other manner permitted by law.
		

		
			 
		

		
			5.08     WAIVER OF JURY TRIAL.  EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).  EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 5.08.
		

		
			 
		

		
			5.09     Captions.  The captions and section headings appearing herein are included solely for convenience of reference and are not intended to affect the interpretation of any provision of this Agreement.
		

		
			 
		

		
			5.10     Agents and Attorneys in Fact.  The Secured Parties may employ agents and attorneys in fact in connection herewith and shall not be responsible for the negligence or misconduct of any such agents or attorneys in fact selected by it in good faith.
		

		
			 
		

		
			5.11     Severability.  If any provision hereof is invalid and unenforceable in any jurisdiction, then, to the fullest extent permitted by law, (a) the other provisions hereof shall remain in full force and effect in such jurisdiction and shall be liberally construed in favor of the Secured Parties in order to carry out the intentions of the parties hereto as nearly as may be possible and (b) the invalidity or unenforceability of any provision hereof in any jurisdiction shall not affect the validity or enforceability of such provision in any other jurisdiction.
		

		
			 
		

		
			5.12     Additional Grantors.  Additional Persons may from time to time after the date of this Agreement become Grantors under this Agreement by executing and delivering to
		

		
			
		

		
			

		 

		

			19

		

 

		

		
			Administrative Agent a supplemental agreement (together with all schedules thereto, a “Joinder”) to this Agreement, in substantially the form attached hereto as Exhibit A.  Accordingly, upon the execution and delivery of any such Joinder by any such Person, such Person shall automatically and immediately, and without any further action on the part of any Person, become a “Grantor” under and for all purposes of this Agreement, and each of the Schedules hereto shall be supplemented in the manner specified in such Joinder.  In addition, upon the execution and delivery of any such Joinder, the new Grantor makes the representations and warranties set forth in Section 2.
		

		
			 
		

		
			[SIGNATURE PAGES FOLLOW]
		

		
			 
		

		
			 
		

		
			

		 

		

			20

		

 

		

		
			IN WITNESS WHEREOF, the parties hereto have caused this Security Agreement to be duly executed and delivered as of the day and year first above written.
		

		
			 
		

			
					
						 

					
					
						    

					
					
						T2 BIOSYSTEMS, INC., as Grantor

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						By:

					
					
						/s/ John McDonough

				
	
					
						 

					
					
						 

					
					
						 

					
					
						Name:  John McDonough

				
	
					
						 

					
					
						 

					
					
						 

					
					
						Title:  Chief Executive Officer

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						CRG SERVICING LLC, as Administrative

					
					
						 

					
					
						 

				
	
					
						Agent

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						Nathan Hukill

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Name: Nathan Hukill

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Title: Authorized Signatory

					
					
						 

					
					
						 

				

		
			 
		

		
			 
		

		
			

		 

		

			[Signature Page to Security Agreement]

		

 

		

		
			EXHIBIT A
		

		
			to Security Agreement
		

		
			 
		

		
			FORM OF JOINDER AGREEMENT
		

		
			 
		

		
			JOINDER AGREEMENT dated as of [__________] by [NAME OF ADDITIONAL GRANTOR], a [__________] corporation (the “Additional Grantor”), in favor of each Lender, each other Secured Party (each as defined in the Loan Agreement referred to below) and CRG SERVICING LLC, as administrative agent and collateral agent (in such capacities, together with its successors and assigns, “Administrative Agent”) for the Secured Parties.
		

		
			 
		

		
			A.     Reference is made to (i) the Term Loan Agreement, dated as of December 30, 2016 (as amended, supplemented, restated, extended, renewed or replaced from time to time, the “Loan Agreement”), among T2 BIOSYSTEMS, INC., a Delaware corporation (“Borrower”), the other Grantors party thereto, the Lenders from time to time party thereto and Administrative Agent, and (ii) the Security Agreement, dated as of December 30, 2016 (as amended, supplemented, restated, extended, renewed or replaced from time to time, the “Security Agreement”; capitalized terms used herein by not defined shall have the meaning ascribed to such terms therein), among the Grantors party thereto and Administrative Agent.
		

		
			 
		

		
			B.     Section 5.12 of the Security Agreement provides that additional Persons may from time to time after the date of the Security Agreement become Grantors under the Security Agreement by executing and delivering to the Secured Parties a supplemental agreement to the Security Agreement in the form of this Joinder.
		

		
			 
		

		
			C.     To induce the Secured Parties to maintain the term loans pursuant to the Loan Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Additional Grantor has agreed to execute and deliver (i) a Guarantee Assumption Agreement under the Loan Agreement, and (ii) this Joinder to the Secured Parties.
		

		
			 
		

		
			The Additional Grantor hereby agrees to become a “Grantor” for all purposes of the Security Agreement (and hereby supplements each of the Schedules to the Security Agreement in the manner specified in Appendix A hereto).  Without limitation, as collateral security for the payment in full when due (whether at stated maturity, by acceleration or otherwise) of the Secured Obligations (other than contingent indemnification obligations for which no claim has been made), the Additional Grantor hereby pledges and grants to the Secured Parties as provided in Section 3 of the Security Agreement a security interest in all of the Additional Grantor’s right, title and interest in, to and under the Collateral of the Additional Grantor, in each case whether tangible or intangible, wherever located, and whether now owned by the Additional Grantor or hereafter acquired and whether now existing or hereafter coming into existence.  In addition, the Additional Grantor hereby makes the representations and warranties set forth in Section 2 of the Security Agreement in all material respects, unless such representations and warranties are made as of a specific date, in which case such representations and warranties shall be made in all material respects as of such specific date, with respect to itself and its obligations under this Agreement, as if each reference in such Sections to the Loan Documents included reference to this Agreement.
		

		
			
		

		
			

		 

		

			Exhibit A-1

		

 

		

		
			[SIGNATURE PAGES FOLLOW]
		

		
			 
		

		
			
		

		
			

		 

		

			Exhibit A-2

		

 

		

		
			IN WITNESS WHEREOF, the Additional Grantor has caused this Joinder Agreement to be duly executed and delivered as of the day and year first above written.
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						    

					
					
						[INSERT NAME OF ADDITIONAL GRANTOR],

				
	
					
						 

					
					
						 

					
					
						as Grantor

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						By

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						    Name:

				
	
					
						 

					
					
						 

					
					
						 

					
					
						    Title:

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						CRG SERVICING LLC, as Administrative Agent

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Name: Nathan Hukill

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Title: Authorized Signatory

					
					
						 

					
					
						 

				

		
			
		

		
			

		 

		

			Exhibit A-3

		

 

		

		
			 
		

		
			Appendix A
		

		
			SUPPLEMENT[S] TO SCHEDULE[ES] TO SECURITY AGREEMENT
		

		
			Supplement to Schedule 1:
		

		
			[to be completed]
		

		
			[Supplement to Schedule 2:
		

		
			[to be completed]
		

		
			Supplement to Schedule 3:
		

		
			[to be completed]
		

		
			Supplement to Schedule 4:
		

		
			[to be completed]
		

		
			Supplement to Schedule 5:
		

		
			[to be completed]
		

		
			Supplement to Schedule 6:
		

		
			[to be completed]
		

		
			Supplement to Schedule 7:
		

		
			[to be completed]
		

		
			Supplement to Schedule 8:
		

		
			[to be completed]
		

		
			 
		

		
			 
		

		
			

		 

		

			Exhibit A-4

		

 

		

		
			 
		

		 

		

			Schedule __ -1ttoo_Ex10_31

		
			Exhibit 10.31
		

		
			 
		

		
			THIS WARRANT AND THE UNDERLYING SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR UNDER THE SECURITIES LAWS OF ANY STATE. THESE SECURITIES MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED EXCEPT AS PERMITTED UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS IN ACCORDANCE WITH APPLICABLE REGISTRATION REQUIREMENTS OR AN EXEMPTION THEREFROM. THE ISSUER OF THESE SECURITIES MAY REQUIRE AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE ISSUER THAT SUCH OFFER, SALE, TRANSFER, PLEDGE OR HYPOTHECATION OTHERWISE COMPLIES WITH THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS. This warrant must be surrendered to the coMPANY or its transfer agent as a condition precedent to the sale, transfer, pledge or hypothecation of any interest in any of the securities represented hereby.
		

		
			 
		

		
			WARRANT TO PURCHASE SHARES OF COMMON STOCK
		

		
			OF
		

		
			T2 BIOSYSTEMS, INC.
		

		
			 
		

		
			Dated as of December 30,  2016
		

		
			Void after the date specified in Section 8
		

		
			 
		

			
					
						 

					
					
						Warrant to Purchase

					
						192,541 Shares of

					
						Common Stock

					
						(subject to adjustment)

				

		
			 
		

		
			THIS CERTIFIES THAT, for value received, CRG PARTNERS III (CAYMAN) L.P. or its registered assigns (the “Holder”), is entitled, subject to the provisions and upon the terms and conditions set forth herein, to purchase from T2 Biosystems, Inc., a Delaware corporation (the “Company”), shares of the Company’s common stock, par value $0.001 per share (the “Shares”), in the amounts, at such times and at the price per share set forth in Section 1. The term “Warrant” as used herein shall include this Warrant and any warrants delivered in substitution or exchange therefor as provided herein. This Warrant is issued in connection with the transactions described in the Term Loan Agreement, dated as of December 30,  2016 (the “Term Loan Agreement”), by and between the Company, the Subsidiary Guarantors from time to time party thereto, the Lenders from time to time party thereto and CRG Servicing LLC.
		

		
			 
		

		
			The following is a statement of the rights of the Holder and the conditions to which this Warrant is subject, and to which Holder, by acceptance of this Warrant, agrees:
		

		
			 
		

		
			1. Number and Price of Shares; Exercise Period.
		

		
			 
		

		
			(a) Number of Shares. Subject to any previous exercise of the Warrant, the Holder shall have the right to purchase up to 192,541 Shares, as may be adjusted pursuant hereto prior to (or in connection with) the expiration of this Warrant as provided in Section 8.
		

		
			 
		

		
			(b) Exercise Price. The exercise price per Share shall be equal to $8.06, subject to adjustment pursuant hereto (the “Exercise Price”).
		

		
			 
		

		
			(c) Exercise Period. This Warrant shall be exercisable, in whole or in part, prior to (or in connection with) the expiration of this Warrant as set forth in Section 8.
		

		
			 
		

		
			2. Exercise of the Warrant.
		

		
			 
		

		
			(a) Exercise. The purchase rights represented by this Warrant may be exercised at the election of the Holder, in whole or in part, in accordance with Section 1, by:
		

		
			 
		

		
			(i) the tender to the Company at its principal office (or such other office or agency as 
		

		
			
		

		
			

		 

		

			1

		

 

		

		
			the Company may designate) of a notice of exercise in the form of Exhibit A (the “Notice of Exercise”), duly completed and executed by or on behalf of the Holder, together with the surrender of this Warrant; and
		

		
			 
		

		
			(ii) the payment to the Company of an amount equal to (x) the Exercise Price multiplied by (y) the number of Shares being purchased, by wire transfer or certified, cashier’s or other check acceptable to the Company and payable to the order of the Company.
		

		
			 
		

		
			(b) Net Issue Exercise. In lieu of exercising this Warrant pursuant to Section 2(a)(ii), if the fair market value of one Share is greater than the Exercise Price (at the date of calculation as set forth below), the Holder may elect to receive a number of Shares equal to the value of this Warrant (or of any portion of this Warrant being canceled) by surrender of this Warrant at the principal office of the Company (or such other office or agency as the Company may designate) together with a properly completed and executed Notice of Exercise reflecting such election, in which event the Company shall issue to the Holder that number of Shares computed using the following formula:
		

		
			 
		

			
					
						X

					
					
						=

					
					
						Y (A – B)

				
	
					
						A

				

		
			 
		

		
			Where:
		

		
			 
		

		
			X      =      The number of Shares to be issued to the Holder
		

		
			 
		

		
			Y      =      The number of Shares purchasable under this Warrant or, if only a portion of the Warrant is being exercised, the portion of the Warrant being canceled (at the date of such calculation)
		

		
			 
		

		
			A      =      The fair market value of one Share (at the date of such calculation)
		

		
			 
		

		
			B      =      The Exercise Price (as adjusted to the date of such calculation)
		

		
			 
		

		
			For purposes of the calculation above, the fair market value of one Share shall be determined as follows:
		

		
			 
		

		
			(i)           if the Shares are traded on any securities exchange or quoted on an established automated over-the-counter market, the fair market value shall be deemed to be the average of the closing prices over a ten  (10)  Trading Day period ending five (5) Trading Days before the date of calculation; or
		

		
			 
		

		
			(ii)          if at any time the Common Stock is not listed on any securities exchange or quoted on an established automated over-the-counter market, the fair market value of Common Stock shall be the price per share which the Company could obtain from a willing buyer (not a current employee or director) for shares of Common Stock sold by the Company, from authorized but unissued shares, as determined in good faith by its Board of Directors, unless the Company shall become subject to a Reorganization, in which case the fair market value of the Common Stock shall be deemed to be the per share value received by the holders of the Company’s Common Stock pursuant to such Reorganization.  
		

		
			 
		

		
			For purposes hereof, the date of calculation shall be the date the Holder sends to the Company a Notice of Exercise.  “Trading Day” means a day in which trading in the Shares generally occurs on The Nasdaq Global Market or if the Shares are not then listed on The Nasdaq Global Market, on the principal other U.S. national or regional securities exchange on which the Shares are then listed, or if the Shares are not then listed on a U.S. national or regional securities exchange, on the principal other market on which the Shares are then traded.  If the Shares are not so listed or traded, “Trading Day” means any Business Day.    “Business Day” means any day other than a Saturday, a Sunday or a day on which the Federal Reserve Bank of New York is authorized or required by law or executive order to close or be closed.
		

		
			 
		

		
			(c) Exercise Prior to Expiration or Change of Control. To the extent this Warrant is not previously exercised as to all Shares subject hereto, and if the fair market value of one Share is greater than the Exercise Price then in effect, this Warrant shall be deemed automatically exercised pursuant to Section 2(b) (even if not surrendered) immediately before its expiration or termination pursuant to Section 8(b) below.  For purposes of such automatic 
		

		
			
		

		
			

		 

		

			2

		

 

		

		
			exercise, the fair market value of one Share upon such expiration shall be determined pursuant to Section 2(b).  To the extent this Warrant or any portion thereof is deemed automatically exercised pursuant to this Section 2(c), the Company agrees to promptly notify the Holder of the number of shares of Common Stock, if any, the Holder is to receive by reason of such automatic exercise.
		

		
			 
		

		
			(d) Stock Certificates. The rights under this Warrant shall be deemed to have been exercised and the Shares issuable upon such exercise shall be deemed to have been issued immediately prior to the close of business on the date this Warrant is exercised in accordance with its terms, and the person entitled to receive the Shares issuable upon such exercise shall be treated for all purposes as the holder of record of such Shares as of the close of business on such date. As promptly as reasonably practicable on or after such date, the Company shall issue and deliver to the person or persons entitled to receive the same a certificate or certificates (or other reasonably acceptable evidence of issuance if the Company ordinarily registers uncertificated book-entry positions with its transfer agent) for that number of shares issuable upon such exercise. In the event that the rights under this Warrant are exercised in part and have not expired, the Company shall execute and deliver a new Warrant reflecting the number of Shares that remain subject to this Warrant.
		

		
			 
		

		
			 (e)  No Fractional Shares or Scrip. No fractional shares or scrip representing fractional shares shall be issued upon the exercise of the rights under this Warrant. In lieu of such fractional share to which the Holder would otherwise be entitled, the Company shall make a cash payment equal to the Exercise Price multiplied by such fraction.
		

		
			 
		

		
			(f)  Conditional Exercise. The Holder may exercise this Warrant conditioned upon (and effective immediately prior to) consummation of any transaction that would cause the expiration of this Warrant pursuant to Section 8 by so indicating in the notice of exercise.
		

		
			 
		

		
			(g)  Reservation of Stock. The Company agrees during the term the rights under this Warrant are exercisable to reserve and keep available from its authorized and unissued shares of common stock of the Company for the purpose of effecting the exercise of this Warrant such number of shares as shall from time to time be sufficient to effect the exercise of the rights under this Warrant; and if at any time the number of authorized but unissued shares of common stock shall not be sufficient for purposes of the exercise of this Warrant in accordance with its terms, without limitation of such other remedies as may be available to the Holder, the Company will use all reasonable efforts to take such corporate action as may be necessary to increase its authorized and unissued shares of common stock of the Company to a number of shares as shall be sufficient for such purposes. The Company represents and warrants that all shares that may be issued upon the exercise of this Warrant will, when issued in accordance with the terms hereof, including the proper exercise of this Warrant, be validly issued, fully paid and nonassessable.
		

		
			 
		

		
			(h) Issued Securities.  The Company represents and warrants to the Holder that all issued and outstanding shares of common stock or any other securities of the Company have been duly authorized and that all outstanding shares of common stock of the Company have been validly issued and are fully paid and nonassessable.  All outstanding shares of common stock and any other securities were issued in full compliance with all federal and state securities laws.  In addition, as of the date immediately preceding the date of this Warrant:
		

		
			 
		

		
			(i)   The authorized capital of the Company consists of (A) 200,000,000 shares of common stock, of which 30,482,712 shares are issued and outstanding, and (B) 10,000,000 shares of preferred stock, of which no shares are issued and outstanding. 
		

		
			 
		

		
			(ii)  The Company has reserved 4,538,219 shares of its common stock for issuance under its stock incentive plans, under which (i) 3,980,014 shares are issuable upon the exercise of stock options outstanding on the date hereof and (ii) up to 272,195 shares are issuable under awards of restricted stock units outstanding on the date hereof.  The Company has also reserved 134,401 shares of its common stock for issuance pursuant to the Company’s employee stock purchase plan.  Except as stated above and except for the warrant issued to the Holder pursuant to this Warrant and the other warrants issued on the date hereof in connection with the Term Loan Agreement, there are no other options, warrants, conversion privileges or other rights presently outstanding to purchase or otherwise acquire any authorized but unissued shares of the Company’s capital stock or other securities of the Company. 
		

		
			 
		

		
			3. Replacement of the Warrant. Subject to the receipt of evidence reasonably satisfactory to the Company 
		

		
			
		

		
			

		 

		

			3

		

 

		

		
			of the loss, theft, destruction or mutilation of this Warrant and, in the case of loss, theft or destruction, on delivery of an indemnity agreement reasonably satisfactory in form and substance to the Company or, in the case of mutilation, on surrender and cancellation of this Warrant, the Company at the expense of the Holder shall execute and deliver, in lieu of this Warrant, a new warrant of like tenor and amount.
		

		
			 
		

		
			4. Transfer of the Warrant.
		

		
			 
		

		
			(a) Warrant Register. The Company shall maintain a register (the “Warrant Register”) containing the name and address of the Holder or Holders. Until this Warrant is transferred on the Warrant Register in accordance herewith, the Company may treat the Holder as shown on the Warrant Register as the absolute owner of this Warrant for all purposes, notwithstanding any notice to the contrary. Any Holder of this Warrant (or of any portion of this Warrant) may change its address as shown on the Warrant Register by written notice to the Company requesting a change.
		

		
			 
		

		
			(b) Warrant Agent. The Company may appoint an agent for the purpose of maintaining the Warrant Register referred to in Section 4(a), issuing the Shares or other securities then issuable upon the exercise of the rights under this Warrant, exchanging this Warrant, replacing this Warrant or conducting related activities.
		

		
			 
		

		
			(c) Transferability of the Warrant. Subject to the provisions of this Warrant with respect to compliance with the Securities Act of 1933, as amended (the “Securities Act”) as set forth in Section 5, title to this Warrant may be transferred by endorsement (by the transferor and the transferee executing the assignment form attached as Exhibit B (the “Assignment Form”)) and delivery in the same manner as a negotiable instrument transferable by endorsement and delivery.
		

		
			 
		

		
			(d) Exchange of the Warrant upon a Transfer. On surrender of this Warrant (and a properly endorsed Assignment Form) for exchange, subject to the provisions of this Warrant with respect to compliance with the Securities Act and limitations on assignments and transfers, the Company shall issue to or on the order of the Holder a new warrant or warrants of like tenor, in the name of the Holder or as the Holder (on payment by the Holder of any applicable transfer taxes) may direct, for the number of shares issuable upon exercise hereof, and the Company shall register any such transfer upon the Warrant Register. This Warrant (and the securities issuable upon exercise of the rights under this Warrant) must be surrendered to the Company or its warrant or transfer agent, as applicable, as a condition precedent to the sale, pledge, hypothecation or other transfer of any interest in any of the securities represented hereby.
		

		
			 
		

		
			(e) Taxes. In no event shall the Company be required to pay any tax which may be payable in respect of any transfer involved in the issue and delivery of any certificate in a name other than that of the Holder, and the Company shall not be required to issue or deliver any such certificate unless and until the person or persons requesting the issue thereof shall have paid to the Company the amount of such tax or shall have established to the satisfaction of the Company that such tax has been paid or is not payable.
		

		
			 
		

		
			5. Compliance with Securities Laws. By acceptance of this Warrant, the Holder agrees to comply with the following:
		

		
			 
		

		
			(a) Restrictions on Transfers. Any transfer of this Warrant or the Shares (the “Securities”) must be in compliance with all applicable federal and state securities laws. The Holder agrees not to make any sale, assignment, transfer, pledge or other disposition of all or any portion of the Securities, or any beneficial interest therein, unless and until the transferee thereof has agreed in writing for the benefit of the Company to take and hold such Securities subject to, and to be bound by, the terms and conditions set forth in this Warrant to the same extent as if the transferee were the original Holder hereunder, and
		

		
			 
		

		
			(i) there is then in effect a registration statement under the Securities Act covering such proposed disposition and such disposition is made in accordance with such registration statement, or
		

		
			 
		

		
			(ii) (A) such Holder shall have given prior written notice to the Company of such Holder’s intention to make such disposition and shall have furnished the Company with a reasonable detailed description of the manner and circumstances of the proposed disposition, (B) the transferee shall have made the 
		

		
			 
		

		
			
		

		
			

		 

		

			4

		

 

		

		
			representations set forth in Section 10 with respect to itself as a Holder and (C) if requested by the Company, such Holder shall have furnished the Company, at the Holder’s expense, with (i) evidence reasonably satisfactory to the Company that such disposition will not require registration of such Securities under the Securities Act or (ii) a legal opinion to the effect that the transfer of such Securities may be effected in compliance with the terms of the Securities Act.  Notwithstanding the foregoing, compliance with clauses (B) and (C) above shall not be required for any transfer in compliance with Rule 144 or compliance with clause (C) above shall not be required for any transfer by the Holder to any affiliate of the Holder (or any fund or partnership under common control with one of more general partners or managing members of, or shares the same management company with, the Holder) or a transfer by the Holder to any of the Holder’s partners, members or other equity owners, or retired partners, members or other equity owners or the estate of any partners, members or other equity owners or retired partners, members or other equity owners. 
		

		
			 
		

		
			(b)  Investment Representation Statement. Unless the rights under this Warrant are exercised pursuant to an effective registration statement under the Securities Act that includes the Shares with respect to which the Warrant was exercised or pursuant to Section 2(b) that results in the Shares issued upon exercise being eligible for resale under Rule 144, it shall be a condition to any exercise of the rights under this Warrant that the Holder shall have confirmed  the representations set forth in Section 10 hereof.
		

		
			 
		

		
			(c)  Securities Law Legend. Subject to Section 5(e), the Securities shall (unless otherwise permitted by the provisions of this Warrant) be stamped or imprinted with a legend substantially similar to the following (in addition to any legend required by state securities laws):
		

		
			 
		

		
			THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR UNDER THE SECURITIES LAWS OF CERTAIN STATES. THESE SECURITIES MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED EXCEPT AS PERMITTED UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS IN ACCORDANCE WITH APPLICABLE REGISTRATION REQUIREMENTS OR AN EXEMPTION THEREFROM. THE ISSUER OF THESE SECURITIES MAY REQUIRE AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE ISSUER THAT SUCH OFFER, SALE OR TRANSFER, PLEDGE OR HYPOTHECATION OTHERWISE COMPLIES WITH THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS. This certificate must be surrendered to the coMPANY or its transfer agent as a condition precedent to the sale, TRANSFER, pledge OR hypothecation of any interest in any of the securities represented hereby.
		

		
			 
		

		
			(d)  Instructions Regarding Transfer Restrictions. Subject to Section 5(e), the Holder consents to the Company making a notation on its records and giving instructions to any transfer agent in order to implement the restrictions on transfer established in this Section 5.
		

		
			 
		

		
			(e)  Removal of Legend. The legend referring to federal and state securities laws identified in Section 5(c) stamped on a certificate evidencing the Shares and the stock transfer instructions and record notations with respect to such securities shall be removed promptly upon request by the Holder and the Company shall issue a certificate without such legend to the holder of such securities if (i) such securities are registered under the Securities Act,  (ii) such securities are eligible for resale under Rule 144, or (iii) such holder provides the Company with an opinion of counsel reasonably acceptable to the Company to the effect that a sale or transfer of such securities may be made without registration or qualification.
		

		
			 
		

		
			(f)  Compliance with Securities Laws. The Holder is aware of the restrictions imposed by the United States securities laws on the purchase or sale of securities by any person who has received material, non-public information from the issuer of such securities and on the communication of such information to any other person when it is reasonably foreseeable that such other person is likely to purchase or sell such securities in reliance upon such information.
		

		
			 
		

		
			6. Adjustments. Subject to the expiration of this Warrant pursuant to Section 8, the number and kind of shares purchasable hereunder and the Exercise Price therefor are subject to adjustment from time to time, as follows:
		

		
			 
		

		
			(a) Merger or Reorganization. If at any time there shall be any reorganization, recapitalization, 
		

		
			 
		

		
			
		

		
			

		 

		

			5

		

 

		

		
			merger or consolidation (a “Reorganization”) involving the Company (other than as otherwise provided for herein or as would cause the expiration of this Warrant under Section 8) in which shares of the Company’s stock are converted into or exchanged for securities, cash or other property, then, as a part of such Reorganization, lawful provision shall be made so that the Holder shall thereafter be entitled to receive upon exercise of this Warrant, the kind and amount of securities, cash or other property of the successor corporation resulting from such Reorganization (collectively, “Reference Property”), equivalent in value to that which a holder of the Shares deliverable upon exercise of this Warrant would have been entitled in such Reorganization if the right to purchase the Shares hereunder had been exercised immediately prior to such Reorganization. In any such case, appropriate adjustment (as determined in good faith by the Board of Directors of the successor corporation) shall be made in the application of the provisions of this Warrant with respect to the rights and interests of the Holder after such Reorganization to the end that the provisions of this Warrant shall be applicable after the event, as near as reasonably may be, in relation to any shares or other securities deliverable after that event upon the exercise of this Warrant. Without limiting the foregoing, in connection with any Reorganization, upon the closing thereof, the successor or surviving entity shall assume the obligations of this Agreement.  The provisions of this Section 6(a) shall similarly apply to successive Reorganizations. 
		

		
			 
		

		
			(b) Reclassification of Shares. If the securities issuable upon exercise of this Warrant are changed into the same or a different number of securities of any other class or classes by reclassification, capital reorganization or otherwise (other than as otherwise provided for herein) (a “Reclassification”), then, in any such event, in lieu of the number of Shares which the Holder would otherwise have been entitled to receive, the Holder shall have the right thereafter to exercise this Warrant for a number of shares of such other class or classes of stock that a holder of the number of securities deliverable upon exercise of this Warrant immediately before that change would have been entitled to receive in such Reclassification, all subject to further adjustment as provided herein with respect to such other shares.
		

		
			 
		

		
			(c) Subdivisions and Combinations. In the event that the outstanding shares of common stock are subdivided (by stock split, by payment of a stock dividend or otherwise) into a greater number of shares of such securities, the number of Shares issuable upon exercise of the rights under this Warrant immediately prior to such subdivision shall, concurrently with the effectiveness of such subdivision, be proportionately increased, and the Exercise Price shall be proportionately decreased, and in the event that the outstanding shares of common stock are combined (by reclassification or otherwise) into a lesser number of shares of such securities, the number of Shares issuable upon exercise of the rights under this Warrant immediately prior to such combination shall, concurrently with the effectiveness of such combination, be proportionately decreased, and the Exercise Price shall be proportionately increased.
		

		
			 
		

		
			(d) Notice of Adjustments. Upon any adjustment in accordance with this Section 6, the Company shall give notice thereof to the Holder, which notice shall state the event giving rise to the adjustment, the Exercise Price as adjusted and the number of securities or other property purchasable upon the exercise of the rights under this Warrant, setting forth in reasonable detail the method of calculation of each. The Company shall, upon the written request of any Holder, furnish or cause to be furnished to such Holder a certificate setting forth (i) such adjustments, (ii) the Exercise Price at the time in effect and (iii) the number of securities and the amount, if any, of other property that at the time would be received upon exercise of this Warrant.
		

		
			 
		

		
			7. Notification of Certain Events. Prior to the expiration of this Warrant pursuant to Section 8, in the event that the Company shall authorize:
		

		
			 
		

		
			(a) the issuance of any dividend or other distribution on the capital stock of the Company (other than (i) dividends or distributions otherwise provided for in Section 6, (ii) repurchases of common stock issued to or held by employees, officers, directors or consultants of the Company or its subsidiaries upon termination of their employment or services pursuant to agreements providing for the right of said repurchase; (iii) repurchases of common stock issued to or held by employees, officers, directors or consultants of the Company or its subsidiaries pursuant to rights of first refusal or first offer contained in agreements providing for such rights; or (iv) repurchases of capital stock of the Company in connection with the settlement of disputes with any stockholder ), whether in cash, property, stock or other securities;
		

		
			 
		

		
			(b) the voluntary liquidation, dissolution or winding up of the Company; or
		

		
			 
		

		
			
		

		
			

		 

		

			6

		

 

		

		
			(c) any transaction resulting in the expiration of this Warrant pursuant to Section 8(b);
		

		
			 
		

		
			the Company shall send to the Holder of this Warrant at least ten (10) calendar days prior written notice of the date on which a record shall be taken for any such dividend or distribution specified in clause (a) or the expected effective date of any such other event specified in clause (b) or (c), as applicable. The notice provisions set forth in this section may be shortened or waived prospectively or retrospectively by the consent of the Holder of this Warrant.
		

		
			 
		

		
			8. Expiration of the Warrant. This Warrant shall expire and shall no longer be exercisable as of the earlier of:
		

		
			 
		

		
			(a) 5:00 p.m., Pacific time, on December 30,  2026; or
		

		
			 
		

		
			(b) (i) the acquisition of the Company by another entity by means of any transaction or series of related transactions to which the Company is a party (including, without limitation, any stock acquisition, reorganization, merger or consolidation, but excluding any sale of stock for capital raising purposes and any transaction effected primarily for purposes of changing the Company’s jurisdiction of incorporation) other than a transaction or series of related transactions in which the holders of the voting securities of the Company outstanding immediately prior to such transaction or series of related transactions receive voting securities of such other surviving or resulting entity (or if the Company or such other surviving or resulting entity is a wholly-owned subsidiary immediately following such acquisition, its parent), or (ii) a sale, lease or other disposition of all or substantially all of the assets of the Company and its subsidiaries taken as a whole by means of any transaction or series of related transactions, except where such sale, lease or other disposition is to a wholly-owned subsidiary of the Company.
		

		
			 
		

		
			9. No Rights as a Stockholder. Nothing contained herein shall entitle the Holder to any rights as a stockholder of the Company or to be deemed the holder of any securities that may at any time be issuable on the exercise of the rights hereunder for any purpose nor shall anything contained herein be construed to confer upon the Holder, as such, any right to vote for the election of directors or upon any matter submitted to stockholders at any meeting thereof, or to give or withhold consent to any corporate action (whether upon any recapitalization, issuance of stock, reclassification of stock, change of par value or change of stock to no par value, consolidation, merger, conveyance or otherwise) or to receive notice of meetings, or to receive dividends or subscription rights or any other rights of a stockholder of the Company until the rights under the Warrant shall have been exercised and the Shares purchasable upon exercise of the rights hereunder shall have become deliverable as provided herein.
		

		
			 
		

		
			10. Representations and Warranties of the Holder. By acceptance of this Warrant, the Holder represents and warrants to the Company as follows:
		

		
			 
		

		
			(a) No Registration. The Holder understands that the Securities have not been, and will not be, registered under the Securities Act by reason of a specific exemption from the registration provisions of the Securities Act, the availability of which depends upon, among other things, the bona fide nature of the investment intent and the accuracy of the Holder’s representations as expressed herein or otherwise made pursuant hereto.
		

		
			 
		

		
			(b) Investment Intent. The Holder is acquiring the Securities for investment for its own account, not as a nominee or agent, and not with a view to, or for resale in connection with, any distribution thereof. The Holder has no present intention of selling, granting any participation in, or otherwise distributing the Securities, nor does it have any contract, undertaking, agreement or arrangement for the same.
		

		
			 
		

		
			(c) Investment Experience. The Holder has substantial experience in evaluating and investing in private placement transactions of securities in companies similar to the Company, and has such knowledge and experience in financial or business matters so that it is capable of evaluating the merits and risks of its investment in the Company and protecting its own interests.
		

		
			 
		

		
			(d) Speculative Nature of Investment. The Holder understands and acknowledges that its investment in the Company is highly speculative and involves substantial risks. The Holder can bear the economic risk of its investment and is able, without impairing its financial condition, to hold the Securities for an indefinite period of time and to suffer a complete loss of its investment.
		

		
			 
		

		
			
		

		
			

		 

		

			7

		

 

		

		
			(e)  Accredited Investor. The Holder is an “accredited investor” within the meaning of Regulation D, Rule 501(a), promulgated by the Securities and Exchange Commission and agrees to submit to the Company such further assurances of such status as may be reasonably requested by the Company. The Holder has furnished or made available any and all information requested by the Company or otherwise necessary to satisfy any applicable verification requirements as to “accredited investor” status. Any such information is true, correct, timely and complete.
		

		
			 
		

		
			(f)  Residency. The residency of the Holder (or, in the case of a partnership or corporation, such entity’s principal place of business) is correctly set forth on the signature page hereto.
		

		
			 
		

		
			(g)  Restrictions on Resales. The Holder acknowledges that the Securities must be held indefinitely unless subsequently registered under the Securities Act or an exemption from such registration is available. The Holder is aware of the provisions of Rule 144 promulgated under the Securities Act, which permit resale of shares purchased in a private placement subject to the satisfaction of certain conditions, which may include, among other things, the availability of certain current public information about the Company; the resale occurring not less than a specified period after a party has purchased and paid for the security to be sold; the number of shares being sold during any three-month period not exceeding specified limitations; the sale being effected through a “broker’s transaction,” a transaction directly with a “market maker” or a “riskless principal transaction” (as those terms are defined in the Securities Act or the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder); and the filing of a Form 144 notice, if applicable. The Holder acknowledges and understands that the Company may not be satisfying the current public information requirement of Rule 144 at the time the Holder wishes to sell the Securities and that, in such event, the Holder may be precluded from selling the Securities under Rule 144 even if the other applicable requirements of Rule 144 have been satisfied. The Holder acknowledges that, in the event the applicable requirements of Rule 144 are not met, registration under the Securities Act or an exemption from registration will be required for any disposition of the Securities. The Holder understands that, although Rule 144 is not exclusive, the Securities and Exchange Commission has expressed its opinion that persons proposing to sell restricted securities received in a private offering other than in a registered offering or pursuant to Rule 144 will have a substantial burden of proof in establishing that an exemption from registration is available for such offers or sales and that such persons and the brokers who participate in the transactions do so at their own risk.
		

		
			 
		

		
			(h)  Authorization. The Holder has full legal capacity, power and authority to execute and deliver this Warrant and to perform its obligations hereunder. This Warrant constitutes the valid and binding obligations of the Holder, enforceable in accordance with its terms, except as limited by bankruptcy, insolvency or other laws of general application relating to or affecting the enforcement of creditors’ rights generally and general principles of equity.
		

		
			 
		

		
			11. Miscellaneous.
		

		
			 
		

		
			(a) Amendments. Except as expressly provided herein, neither this Warrant nor any term hereof may be amended, waived, discharged or terminated other than by a written instrument referencing this Warrant and signed by the Company and the Holder of this Warrant.
		

		
			 
		

		
			(b) Waivers. No waiver of any single breach or default shall be deemed a waiver of any other breach or default theretofore or thereafter occurring.
		

		
			 
		

		
			(c) Notices. All notices and other communications required or permitted hereunder shall be in writing and shall be mailed by registered or certified mail, postage prepaid, sent by facsimile or electronic mail (if to the Holder) or otherwise delivered by hand, messenger or courier service addressed:
		

		
			 
		

		
			(i) if to the Holder, to the Holder at the Holder’s address, facsimile number or electronic mail address as shown in the Company’s records, as may be updated in accordance with the provisions hereof, or until any such Holder so furnishes an address, facsimile number or electronic mail address to the Company, then to and at the address, facsimile number or electronic mail address of the last holder of this Warrant for which the Company has contact information in its records; or
		

		
			 
		

		
			(ii) if to the Company, to the attention of the Chief Executive Officer or Chief Financial Officer of the Company at the Company’s address as shown on the signature page hereto, or at such other 
		

		
			
		

		
			

		 

		

			8

		

 

		

		
			current address as the Company shall have furnished to the Holder.
		

		
			 
		

		
			Each such notice or other communication shall for all purposes of this Warrant be treated as effective or having been given (i) if delivered by hand, messenger or courier service, when delivered (or if sent via a nationally-recognized overnight courier service, freight prepaid, specifying next-business-day delivery, one business day after deposit with the courier), or (ii) if sent via mail, at the earlier of its receipt or five days after the same has been deposited in a regularly-maintained receptacle for the deposit of the United States mail, addressed and mailed as aforesaid, or (iii) if sent via facsimile, upon confirmation of facsimile transfer or, if sent via electronic mail, upon confirmation of delivery when directed to the relevant electronic mail address, if sent during normal business hours of the recipient, or if not sent during normal business hours of the recipient, then on the recipient’s next business day. In the event of any conflict between the Company’s books and records and this Warrant or any notice delivered hereunder, the Company’s books and records will control absent fraud or error.
		

		
			 
		

		
			(d) Governing Law. This Warrant and all actions arising out of or in connection with this Warrant shall be governed by and construed in accordance with the laws of the State of Delaware, without regard to the conflicts of law provisions of the State of Delaware, or of any other state.
		

		
			 
		

		
			(e) Jurisdiction and Venue.  The Company agrees that any suit, action or proceeding with respect to this Agreement or any other Loan Document to which it is a party or any judgment entered by any court in respect thereof may be brought initially in the federal or state courts in Houston, Texas or in the courts of its own corporate domicile and irrevocably submits to the non-exclusive jurisdiction of each such court for the purpose of any such suit, action, proceeding or judgment. This Section 11(e) is for the benefit of the Holder only and, as a result, Holder shall not be prevented from taking proceedings in any other courts with jurisdiction. Nothing herein shall in any way be deemed to limit the ability of the Holder to serve any such process or summonses in any other manner permitted by applicable law. The Company irrevocably waives to the fullest extent permitted by law any objection that it may now or hereafter have to the laying of the venue of any suit, action or proceeding arising out of or relating to this Warrant and hereby further irrevocably waives to the fullest extent permitted by law any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum. A final judgment (in respect of which time for all appeals has elapsed) in any such suit, action or proceeding shall be conclusive and may be enforced in any court to the jurisdiction of which the Company is or may be subject, by suit upon judgment. 
		

		
			 
		

		
			(f) Titles and Subtitles. The titles and subtitles used in this Warrant are used for convenience only and are not to be considered in construing or interpreting this Warrant. All references in this Warrant to sections, paragraphs and exhibits shall, unless otherwise provided, refer to sections and paragraphs hereof and exhibits attached hereto.
		

		
			 
		

		
			(g) Severability. If any provision of this Warrant becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or void, portions of such provision, or such provision in its entirety, to the extent necessary, shall be severed from this Warrant, and such illegal, unenforceable or void provision shall be replaced with a valid and enforceable provision that will achieve, to the extent possible, the same economic, business and other purposes of the illegal, unenforceable or void provision. The balance of this Warrant shall be enforceable in accordance with its terms.
		

		
			 
		

		
			(h) Waiver of Jury Trial. Each of the Holder and the Company waives, to the fullest extent permitted by law, any and all right to trial by jury in any legal proceeding (whether based on contract, tort or otherwise) arising out of or related to this Warrant.
		

		
			 
		

		
			(i) California Corporate Securities Law. THE SALE OF THE SECURITIES THAT ARE THE SUBJECT OF THIS WARRANT HAS NOT BEEN QUALIFIED WITH THE COMMISSIONER OF CORPORATIONS OF THE STATE OF CALIFORNIA AND THE ISSUANCE OF SUCH SECURITIES OR THE PAYMENT OR RECEIPT OF ANY PART OF THE CONSIDERATION THEREFOR PRIOR TO SUCH QUALIFICATION IS UNLAWFUL, UNLESS THE SALE OF SECURITIES IS EXEMPT FROM QUALIFICATION BY SECTION 25100, 25102, OR 25105 OF THE CALIFORNIA CORPORATIONS CODE. THE RIGHTS OF ALL PARTIES TO THIS WARRANT ARE EXPRESSLY CONDITIONED UPON THE QUALIFICATION BEING OBTAINED, UNLESS THE SALE IS SO EXEMPT.
		

		
			 
		

		
			
		

		
			

		 

		

			9

		

 

		

		
			(j) Saturdays, Sundays and Holidays. If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall be a Saturday, Sunday or U.S. federal holiday, then such action may be taken or such right may be exercised on the next succeeding day that is not a Saturday, Sunday or U.S. federal holiday.
		

		
			 
		

		
			(k) Rights and Obligations Survive Exercise of the Warrant. Except as otherwise provided herein, the rights and obligations of the Company and the Holder under this Warrant shall survive exercise of this Warrant.
		

		
			 
		

		
			(l) Entire Agreement. Except as expressly set forth herein, this Warrant (including the exhibits attached hereto) constitutes the entire agreement and understanding of the Company and the Holder with respect to the subject matter hereof and supersede all prior agreements and understandings relating to the subject matter hereof.
		

		
			 
		

		
			(signature page follows)
		

		
			 
		

		
			
		

		
			

		 

		

			10

		

 

		

		
			The Company and the Holder sign this Warrant as of the date stated on the first page.
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						COMPANY:

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						T2 BIOSYSTEMS, INC.

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ John McDonough

				
	
					
						 

					
					
						 

					
					
						Name:  John McDonough

				
	
					
						 

					
					
						 

					
					
						Title: Chief Executive Officer

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Address for Notices:

				
	
					
						 

					
					
						101 Hartwell Avenue,

				
	
					
						 

					
					
						Lexington, MA 02421

				
	
					
						 

					
					
						Attn:      Michael Gibbs

				
	
					
						 

					
					
						Tel.:       (781) 761-4630

				
	
					
						 

					
					
						Fax:       (781) 538-4020

				
	
					
						 

					
					
						Email:    mgibbs@t2biosystems.com

				

		
			 
		

			
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						AGREED AND ACKNOWLEDGED,

					
					
						 

				

		
			 
		

		
			HOLDER:
		

		
			 
		

		
			CRG PARTNERS III (CAYMAN) L.P. 
		

		
			By CRG PARTNERS III (CAYMAN) GP L.P., its General Partner
		

		
			By CRG PARTNERS III (CAYMAN) GP LLC, its General Partner
		

		
			 
		

			
					
						By:

					
					
						/s/ Nathan Hukill

					
					
						 

				
	
					
						 

					
					
						Name: Nathan Hukill

					
					
						 

				
	
					
						 

					
					
						Title:  Authorized Signatory

					
					
						 

				

		
			 
		

			
					
						Witness:

					
					
						/s/ Nicole Nesson

					
					
						 

				
	
					
						Name:

					
					
						Nicole Nesson

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						Address for Notices:

					
					
						 

				
	
					
						1000 Main Street, Suite 2500

					
					
						 

				
	
					
						Houston, TX 77002

					
					
						 

				
	
					
						Attn:

					
					
						General Counsel

					
					
						 

				
	
					
						Tel.:

					
					
						713.209.7350

					
					
						 

				
	
					
						Fax:

					
					
						713.209.7351

					
					
						 

				
	
					
						Email:

					
					
						adorenbaum@crglp.com

					
					
						 

				

		
			 
		

		
			 
		

		
			 
		

		
			

		 

		

			11

		

 

		

		
			EXHIBIT A
		

		
			 
		

		
			NOTICE OF EXERCISE
		

		
			 
		

			
					
						TO:

					
					
						T2 BIOSYSTEMS, INC. (the “Company”) 

				
	
					
						 

					
					
						 

				
	
					
						Attention:

					
					
						CHIEF FINANCIAL OFFICER

				

		
			 
		

		
			(1)           Exercise. The undersigned elects to purchase the following pursuant to the terms of the attached warrant:
		

		
			 
		

			
					
						 

					
					
						 

					
					
						Number of shares:

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						Type of security:

					
					
						 

				

		
			 
		

		
			(2)           Method of Exercise. The undersigned elects to exercise the attached warrant pursuant to:
		

		
			 
		

			
					
						 

					
					
						 

					
					
						[ ]

					
					
						A cash payment, and tenders herewith payment of the purchase price for such shares in full, together with all applicable transfer taxes, if any.

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						[ ]

					
					
						The net issue exercise provisions of Section 2(b) of the attached warrant.

				

		
			 
		

		
			(3)           Conditional Exercise. Is this a conditional exercise pursuant to Section 2(f):
		

		
			 
		

			
					
						 

					
					
						 

					
					
						[ ] Yes

					
					
						[ ] No

				

		
			 
		

			
					
						 

					
					
						 

					
					
						If “Yes,” indicate the applicable condition:

				
	
					
						 

					
					
						 

					
					
						 

				

		
			 
		

		
			(4)           Stock Certificate. Please issue a certificate or certificates representing the shares in the name of:
		

		
			 
		

			
					
						 

					
					
						 

					
					
						[ ]

					
					
						The undersigned

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						[ ]

					
					
						Other—Name:

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						Address:

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				

		
			 
		

		
			(5)           Unexercised Portion of the Warrant. Please issue a new warrant for the unexercised portion of the attached warrant in the name of:
		

		
			 
		

			
					
						 

					
					
						 

					
					
						[ ]

					
					
						The undersigned

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						[ ]

					
					
						Other—Name:

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						Address:

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						[ ]

					
					
						Not applicable

					
					
						 

				

		
			 
		

		
			(6)           [Investment Intent. The undersigned represents and warrants that the aforesaid shares are being acquired for investment for its own account and not with a view to, or for resale in connection with, the distribution thereof, and that the undersigned has no present intention of selling, granting any participation in, or otherwise
		

		
			 
		

		
			
		

		
			

		 

		

			A-1

		

 

		

		
			distributing the shares, nor does it have any contract, undertaking, agreement or arrangement for the same, and all representations and warranties of the undersigned set forth in Section 10 of the attached warrant are true and correct as of the date hereof. ]1
		

		
			 
		

		
			([6][7])   Consent to Receipt of Electronic Notice. Subject to the limitations set forth in §232(e) of the General Corporation Law of the State of Delaware (the “DCGL”), the undersigned consents to the delivery of any notice to stockholders given by the Company under the DGCL or the Company’s certificate of incorporation or bylaws by (i) facsimile telecommunication to the facsimile number provided below (or to any other facsimile number for the undersigned in the Company’s records), (ii) electronic mail to the electronic mail address provided below (or to any other electronic mail address for the undersigned in the Company’s records), (iii) posting on an electronic network together with separate notice to the undersigned of such specific posting or (iv) any other form of electronic transmission (as defined in the DGCL) directed to the undersigned. This consent may be revoked by the undersigned by written notice to the Company and may be deemed revoked in the circumstances specified in DGCL §232.
		

		
			 
		

			
					
						 

					
					
						 

				
	
					
						 

					
					
						(Print name of the warrant holder)

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						(Signature)

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						(Name and title of signatory, if applicable)

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						(Date)

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						(Fax number)

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						(Email address)

				

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		

		
			1 Note to Draft: Include if exercised pursuant to Section 2(a).
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			

		 

		

			A-1-2

		

 

		

		
			EXHIBIT B
		

		
			 
		

		
			ASSIGNMENT FORM
		

		
			 
		

			
					
						ASSIGNOR:

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						COMPANY:

					
					
						T2 BIOSYSTEMS, INC.

				
	
					
						 

					
					
						 

				
	
					
						WARRANT:

					
					
						THE WARRANT TO PURCHASE SHARES OF COMMON STOCK ISSUED ON DECEMBER 30,  2016 (THE “WARRANT”)

				
	
					
						 

					
					
						 

				
	
					
						DATE:

					
					
						 

				

		
			 
		

		
			(1)          Assignment. The undersigned registered holder of the Warrant (“Assignor”) assigns and transfers to the assignee named below (“Assignee”) all of the rights of Assignor under the Warrant, with respect to the number of shares set forth below:
		

		
			 
		

			
					
						 

					
					
						Name of Assignee:

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Address of Assignee:

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Number of Shares Assigned:

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				

		
			 
		

		
			and does irrevocably constitute and appoint ______________________ as attorney to make such transfer on the books of T2 Biosystems, Inc., maintained for the purpose, with full power of substitution in the premises.
		

		
			 
		

		
			(2)         Obligations of Assignee. Assignee agrees to take and hold the Warrant and any shares of stock to be issued upon exercise of the rights thereunder (the “Securities”) subject to, and to be bound by, the terms and conditions set forth in the Warrant to the same extent as if Assignee were the original holder thereof.
		

		
			 
		

		
			(3)         [Investment Intent. Assignee represents and warrants that the Securities are being acquired for investment for its own account, not as a nominee or agent, and not with a view to, or for resale in connection with, the distribution thereof, and that Assignee has no present intention of selling, granting any participation in, or otherwise distributing the shares, nor does it have any contract, undertaking, agreement or arrangement for the same, and all representations and warranties set forth in Section 10 of the Warrant are true and correct as to Assignee as of the date hereof.]2
		

		
			 
		

		
			Assignor and Assignee are signing this Assignment Form on the date first set forth above.
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		

		
			2 Note to Draft: Include to the extent required pursuant to Section 5(a).
		

		
			
		

		

		 

		

			B-1

		

 

	
					
						

					
						ASSIGNOR

					
					
						 

					
					
						ASSIGNEE

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						(Print name of Assignor)

					
					
						 

					
					
						(Print name of Assignee)

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						(Signature of Assignor)

					
					
						 

					
					
						(Signature of Assignee)

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						(Print name of signatory, if applicable)

					
					
						 

					
					
						(Print name of signatory, if applicable)

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						(Print title of signatory, if applicable)

					
					
						 

					
					
						(Print title of signatory, if applicable)

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						Address:

					
					
						 

					
					
						Address:

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				

		
			 
		

		 

		

			B-2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00268-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00268-of-00352.parquet"}]]