Common use of Release of Security Interest in Collateral Clause in Contracts

Release of Security Interest in Collateral. Upon the later of (i) the conversion by the Holders of an aggregate of not less than $600,000 of principal amount of Notes, or (ii) until each Holder of a Note issued pursuant to the Subscription Agreements holds less than $150,000 of Note Principal, the Holders and Barbara Mittman, the Collateral Agent provided for in the Security Xxxxxxxxx, xxxxl release their security interest in all of the assets of the Company, including ownership of Subsidiaries, which are defined as the "Collateral" in Section 3.2 of the Security Agreement, and the Security Agreement and the Collateral Agent Agreement shall be null and void for all purposes. For purposes of this Section 2.5, conversion of a Note may be by exercise by the Holder of its right to convert the Note pursuant to Section 2.1 hereof or by mandatory conversion pursuant to Section 2.4 above.