Common use of Loan Deferment Clause in Contracts

Loan Deferment. The Lender hereby agrees that the Company is entitled to defer payment and the Lender shall not demand payment of any amounts due under the Loan, and the Lender shall not commence the exercise of any remedies it may against the Company or any of its assets arising out of the Company’s breach of its obligations under the Loan until the later of: (i) twelve (12) months from the date of closing of the transactions contemplated by the Purchase Agreement, and (ii) such time as the Company reports positive net income as reported in quarterly or annual financial statements filed with the U.S. Securities and Exchange Commission. Notwithstanding the foregoing, the provisions of this Section 2 shall be operative only so long as any notes issued under the Purchase Agreement remain outstanding.