CONTINGENT OBLIGATION PAYMENTS Clause Samples

CONTINGENT OBLIGATION PAYMENTS. 2.1.1 Buyer shall not be required to make any payments with respect to the Contingent Obligation until such time, if any, that Buyer has received "Net Cash Flow" (defined below) from the Property in sufficient amount to have: (a) paid in full the principal and interest of the Sanwa Bank California loan (in an estimated amount of $1.8 million) contracted to finance regrafting costs (the "Sanwa Loan"); (b) reimbursed in full any costs in excess of the Sanwa Loan required for the total cost of regrafting the Property, plus interest on such excess amounts at the rate of 10 percent per annum from the date of advance of such excess costs ("Interest"); (c) reimbursed the amount of $214,611, plus Interest, advanced to Seller to enable it to pay Prudential an interest payment which was part of the consideration for Prudential agreeing to the Supplemental Modification; (d) reimbursed in full for all farming losses incurred during the period commencing at the Closing ending with the first distribution of Net Cash Flow under Section 2.1.2., including without limitation, the cost of farming, owning and maintaining the Property, plus Interest. The amounts set forth in Sections 2.1.1(a)-(d) above shall collectively referred to as the "Regrafting and Carrying Costs."