Initial Forbearance Period Clause Samples

Initial Forbearance Period. The forbearance period (the “Forbearance Period”) shall commence on the Effective Date and shall continue until such date that is one (1) year after the Effective Date (the “Termination Date”), subject to termination by Lien Holder if any of the following should occur (the “Forbearance Termination Events”): i. If the payment of any Tank Storage Fees (as such term is defined in the Storage Agreement) required under Section 4 is not wired to Lien Holder by the fifth (5th) day of any calendar month; ii. Once Tank Storage Fees are no longer being paid because the Facility is operational and Operations Payments are being generated from Gross Profits, if Lien Holder does not receive a Regular Monthly Payment during any calendar month, it being understood that Lien Holder is to receive Regular Monthly Payments in lieu of Tank Storage Fees after the Facility is operational (and in no event will Lien Holder receive less than the Tank Storage Fee payment amount in any calendar month); iii. A default on the part of Lazarus occurs under the Loan Documents other than the Existing Defaults that is not cured within the applicable cure period as provided in Section 13(p) herein; iv. A default on the part of Lazarus, GEL or MSI occurs under this Agreement, the Construction Contract, Marketing Agreement or Supply Agreement and such default continues for ten (10) days after its occurrence; or v. The filing of a petition by or against Lazarus (1) in any bankruptcy or other insolvency proceeding, (2) seeking relief under any debtor relief law, or (3) for the appointment of a liquidator, receiver or similar official for all or substantially all of Lazarus’ property or for Lazarus’ interest in the Facility.