Common use of Acknowledgment of Default; Forbearance by Bank Clause in Contracts

Acknowledgment of Default; Forbearance by Bank. Borrower acknowledges that it is currently in default under the Loan Agreement by its failure to comply with the financial covenant set forth in Section 6.9(a) thereof (“Minimum Bookings”) for the period from October 1, 2008 through December 31, 2008 (the “Existing Default”). Bank, however, hereby agrees to forbear from exercising its rights and remedies with respect to the Existing Default until the earlier to occur of (i) an Event of Default under the Loan Agreement (other than the Existing Default), or (ii) March 15, 2009. Bank hereby agrees to waive the Existing Default, provided no default other than the Existing Default has occurred or is continuing, upon the occurrence of the 2009 Equity Event. Borrower hereby acknowledges and agrees that except as specifically provided herein, nothing in this Section or anywhere in this Loan Modification Agreement shall be deemed or otherwise construed as a waiver by the Bank of any of its rights and remedies pursuant to the Existing Loan Documents, applicable law or otherwise.

Acknowledgment of Default; Forbearance by Bank. Borrower acknowledges that it is currently in default under the Loan Agreement by virtue of its failure to comply with the financial covenant set forth in subsection (a) of Section 6.9(a5 of the Schedule to the Loan Agreement (relative to Borrower’s Tangible Net Worth) thereof (“Minimum Bookings”) for as of the period from October 1months ended February 28, 2008 through December 2007 and March 31, 2008 2007 (the “Existing Defaults”). In addition, Borrower acknowledges that Borrower will be unable to comply with the financial covenant set forth in subsection (a) of Section 5 of the Schedule to the Loan Agreement (relative to Borrower’s Tangible Net Worth) thereof as of the month ending April 30, 2007 (the “Future Default”) (the Existing Defaults and the Future Default are collectively referred to as the “Defaults”). Bank, however, hereby agrees to forbear from exercising its rights and remedies with respect to the Existing Default Defaults until the earlier to occur of (i) an Event of Default under the Loan Agreement (other than the Existing Default), Defaults) or (ii) March June 15, 2009. Bank hereby agrees to waive the Existing Default, provided no default other than the Existing Default has occurred or is continuing, upon the occurrence of the 2009 Equity Event2007. Borrower hereby acknowledges and agrees that except as specifically provided herein, nothing in this Section section or anywhere in this Loan Modification Agreement shall be deemed or otherwise construed as a waiver by the Bank of the Defaults or of any of its rights and remedies pursuant to the Existing Loan Documents, applicable law or otherwise.

Acknowledgment of Default; Forbearance by Bank. Borrower acknowledges that it is currently in default under the Loan Agreement by its failure to comply with (a) the financial Adjusted Quick Ratio covenant set forth in Section 6.9(a6.7(a) thereof thereof, and (“b) the Minimum Bookings”Net Profit covenant set forth in Section 6.7(b) thereof, each for the period from October 1, 2008 through December month ended March 31, 2008 2012 (collectively, the “Existing Default”). Bank, however, hereby agrees to forbear from exercising its rights and remedies with respect to the Existing Default until the earlier to occur of (i) an Event of Default under the Loan Agreement (other than the Existing Default), ) or (ii) March May 15, 2009. Bank hereby agrees to waive 2012 (the Existing Default, provided no default other than the Existing Default has occurred or is continuing, upon the occurrence of the 2009 Equity Event“Forbearance Period”). Borrower hereby acknowledges and agrees that except as specifically provided herein, nothing in this Section or anywhere in this Loan Modification Agreement shall be deemed or otherwise construed as a waiver by the Bank of any of its rights and remedies pursuant to the Existing Loan Documents, applicable law or otherwise. Borrower shall not request, and Bank shall not be obligated to make, any Credit Extensions during the Forbearance Period.