Common use of Conversion of Obligations into Common Stock Clause in Contracts

Conversion of Obligations into Common Stock. Subject to the terms and conditions of this Agreement, at the Closing (as defined herein) Debt Holder agrees to cancel and terminate the Obligations and to convert the entire outstanding principal balance of the Obligations (which amounts are set forth in Schedule 1 hereto) into shares of Common Stock at a conversion price of twenty-three cents ($0.23) per share. In addition, the Debt Holder agrees that all accrued and unpaid interest on the Obligations through the Closing shall be cancelled and forgiven at the Closing. By converting the Obligations into Common Stock, and cancelling and forgiving the interest thereon, the Debt Holder acknowledges and agrees that the Obligations will be cancelled and terminated in all respects and for all purposes and that the Debt Holder will be deemed to have released all claims held by the Debt Holder with respect to the Obligations and the payment of principal and interest thereon.