Common use of Status of Note Clause in Contracts

Status of Note. Subject to the terms of the Purchase Agreement, the obligations of the Maker under this Note shall be senior to all other existing Indebtedness and equity of the Company. Subject to the terms of the Purchase Agreement, upon any Liquidation Event (as hereinafter defined), the Holder will be entitled to receive, before any distribution or payment is made upon, or set apart with respect to, any Indebtedness of the Maker or any class of capital stock of the Maker, an amount equal to the Outstanding Principal Amount. For purposes of this Note, “Liquidation Event” means a liquidation pursuant to a filing of a petition for bankruptcy under applicable law or any other insolvency or debtor’s relief, an assignment for the benefit of creditors, or a voluntary or involuntary liquidation, dissolution or winding up of the affairs of the Maker.

Status of Note. Subject Except for Indebtedness disclosed in the applicable Disclosure Schedule to the terms of the Purchase Agreement, the obligations of the Maker under this Note shall be senior to all other existing Indebtedness and equity of the Company. Subject to the terms of the Purchase Agreement, upon Upon any Liquidation Event (as hereinafter defined), the Holder will be entitled to receive, before any distribution or payment is made upon, or set apart with respect to, any Indebtedness of the Maker or any class of capital stock of the Maker, an amount equal to the Outstanding Principal Amount. For purposes of this Note, “Liquidation Event” means a liquidation pursuant to a filing of a petition for bankruptcy under applicable law or any other insolvency or debtor’s relief, an assignment for the benefit of creditors, or a voluntary or involuntary liquidation, dissolution or winding up of the affairs of the Maker.