Amendments to Section 18: Continuing Security Interest; Termination and Release; Assignment Clause Samples
This clause governs how changes to Section 18, which addresses the ongoing nature of a security interest, its termination or release, and the assignment of rights, are to be made. It typically outlines the procedures for amending the terms under which a security interest continues or is released, and may specify the requirements for assigning related rights or obligations to another party. By clearly defining the process for modifying these critical aspects, the clause ensures that all parties understand how and when security interests can be altered, terminated, or transferred, thereby reducing uncertainty and potential disputes.
Amendments to Section 18: Continuing Security Interest; Termination and Release; Assignment of the Security Agreement is hereby amended by deleting paragraph (b) thereof in its entirety and substituting the following therefor: “Provided an Event of Default has not occurred and is continuing, Secured Party will terminate and release its liens and security interests in all Collateral at the later of (i) payment in full and in cash or conversion in full of the Note Balance on or before July 15, 2008 or (ii) after the Grantor has achieved the first two Lead Milestones (as defined in the Development Agreement) as stated in Sections 10.1(b)(i) and (ii) of the Development Agreement (the “Collateral Release”). For the avoidance of doubt, if both conditions (i) and (ii) above have not occurred on or before August 31, 2008, the foregoing termination and release provision and this Section 18(b) shall be null and void and of no force and effect.