Common use of Forbearance Fee Clause in Contracts

Forbearance Fee. Upon execution and delivery by Borrower to GECC of this Amendment, an amount equal to Twenty-Five Thousand And No Hundredths Dollars ($25,000.00) as a forbearance fee and in partial consideration for GECC’s agreement to enter into this Agreement (the “Forbearance Fee”) shall be fully earned by GECC. The Forbearance Fee shall be due and payable by Borrower in two installments as follows: (i) Fifteen Thousand And No Hundredths Dollars ($15,000.00) upon execution and delivery of this Agreement by Borrower to GECC, and (ii) Ten Thousand And No Hundredths Dollars ($10,000.00) on October 31, 2005, provided however, that in the event GECC receives indefeasible payment in full of all of the CF Obligations and the EF Obligations prior to October 31, 2005, and has no further obligation to fund or otherwise extend credit to Borrower, then: (A) the amount of the Forbearance Fee shall be reduced to $15,000.00, and (B) Borrower shall not be required to pay the second installment of $10,000.00. Borrower hereby authorizes and instructs GECC to make advances under the Loan Agreement to pay the Forbearance Fee when due, and each such advance shall constitute a Revolving Credit Loan (as that term is defined in the Loan Agreement). Borrower hereby acknowledges and agrees that: (i) the Forbearance Fee shall constitute a portion of the CF Obligations owing from Borrower to GECC under the provisions of the Loan Agreement and the other Loan Documents secured by the Collateral.

Forbearance Fee. Upon execution and delivery by Borrower to GECC of this Amendment, an amount equal to Twenty-Five Thousand And No Hundredths Dollars ($25,000.00) as a forbearance fee and in partial consideration for GECC’s agreement to enter into this Agreement (the “Forbearance Fee”) shall be fully earned by GECC. The Forbearance Fee shall be due and payable by Borrower in two installments as follows: (i) Fifteen Thousand And No Hundredths Dollars ($15,000.00) upon execution and delivery of this Agreement by Borrower to GECC, and (ii) Ten Thousand And No Hundredths Dollars ($10,000.00) on October 31November 30, 2005, provided however, that in the event GECC receives indefeasible payment in full of all of the CF Obligations and the EF Obligations prior to October 31November 30, 2005, and has no further obligation to fund or otherwise extend credit to Borrower, then: (A) the amount of the Forbearance Fee shall be reduced to $15,000.00, and (B) Borrower shall not be required to pay the second installment of $10,000.00. Borrower hereby authorizes and instructs GECC to make advances under the Loan Agreement to pay the Forbearance Fee when due, and each such advance shall constitute a Revolving Credit Loan (as that term is defined in the Loan Agreement). Borrower hereby acknowledges and agrees that: (i) the Forbearance Fee shall constitute a portion of the CF Obligations owing from Borrower to GECC under the provisions of the Loan Agreement and the other Loan Documents secured by the Collateral.