Forbearance Agreement With Release Provision

Company Letterhead

{{company_name}}

{{company_address}}

Phone: {{phone}}

Email: {{email}}

Website: {{website}}

FORBEARANCE AGREEMENT WITH RELEASE PROVISION

THIS FORBEARANCE AGREEMENT (the “Agreement”) is made and entered into this {{day}} day of {{month}}, {{year}},

BETWEEN:

{{Lender_Company_Name}}, a company duly incorporated under the laws of {{Jurisdiction}} with its principal place of business at {{Lender_Address}} (hereinafter referred to as the “Lender”);

AND

{{Borrower_Company_Name}}, a company duly incorporated under the laws of {{Jurisdiction}} with its principal place of business at {{Borrower_Address}} (hereinafter referred to as the “Borrower”),

collectively referred to as the “Parties”.

RECITALS

WHEREAS, the Borrower is indebted to the Lender pursuant to a loan agreement dated {{original_loan_agreement_date}} (the “Loan Agreement”), in the original principal amount of {{original_loan_amount}} (the “Original Indebtedness”), which indebtedness is currently in default due to {{reason_for_default}} (the “Event of Default”);

WHEREAS, as of the date of this Agreement, the outstanding principal balance, accrued interest, and any other charges due under the Loan Agreement total {{current_outstanding_balance}} (the “Outstanding Indebtedness”);

WHEREAS, the Borrower has requested, and the Lender has agreed, subject to the terms and conditions set forth herein, to forbear from exercising its rights and remedies with respect to the Event of Default for a specified period;

WHEREAS, in consideration of the Lender’s agreement to forbear, the Borrower has agreed to release the Lender from certain claims.

1. FORBEARANCE PERIOD

Subject to the terms and conditions set forth herein, the Lender hereby agrees to forbear from exercising its rights and remedies available to it under the Loan Agreement and applicable law with respect to the Event of Default for a period commencing on {{forbearance_start_date}} and ending on {{forbearance_end_date}} (the “Forbearance Period”). This Forbearance Period may be extended only by mutual written agreement of both Parties.

2. FORBEARANCE CONDITIONS

During the Forbearance Period, the Borrower agrees to:

a. Make monthly payments of {{forbearance_payment_amount}} on or before the {{payment_due_day}} of each month, commencing {{first_payment_date}}.

b. Provide the Lender with financial statements, including but not limited to, {{type_of_financial_statements}} for the periods ending {{financial_statement_period_end_date_1}}, {{financial_statement_period_end_date_2}}, within {{number_of_days}} days of the end of each period.

c. Not incur any additional indebtedness exceeding {{additional_indebtedness_limit}} without the prior written consent of the Lender.

d. Maintain all collateral secured under the Loan Agreement in good order and condition, and ensure adequate insurance coverage as required.

3. ACKNOWLEDGMENT OF INDEBTEDNESS

The Borrower acknowledges and agrees that it is justly and truly indebted to the Lender in the amount of the Outstanding Indebtedness, without set-off, defense, or counterclaim of any kind whatsoever, as of the date of this Agreement. This Agreement does not constitute a waiver of the Lender's right to collect the full Outstanding Indebtedness.

4. RELEASE OF CLAIMS

In consideration of the Lender's agreement to enter into this Forbearance Agreement and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Borrower, on behalf of itself and its successors, assigns, officers, directors, shareholders, employees, agents, and attorneys, hereby irrevocably and unconditionally releases, acquits, and forever discharges the Lender, its successors, assigns, officers, directors, shareholders, employees, agents, and attorneys (collectively, the “Released Parties”), from any and all claims, demands, damages, actions, causes of action, suits, debts, liens, contracts, controversies, liabilities, obligations, and expenses of any nature whatsoever, known or unknown, suspected or unsuspected, fixed or contingent, that the Borrower has, had, or may have against the Released Parties arising from or related to the Loan Agreement or the Indebtedness up to the date of execution of this Agreement. This release includes, but is not limited to, any claims related to the making, administration, or enforcement of the Loan Agreement, any alleged breaches thereof, usury, lender liability, or any other matter relating to the relationship between the Parties prior to the date of this Agreement.

5. REPRESENTATIONS AND WARRANTIES OF BORROWER

The Borrower represents and warrants that:

a. It has the full power and authority to enter into and perform its obligations under this Agreement.

b. This Agreement constitutes a valid and binding obligation enforceable against them in accordance with its terms.

c. There are no other actions, claims, disputes, or proceedings threatened or pending against the Lender related to the Loan Agreement or the Indebtedness that have not been disclosed in writing to the Lender prior to the execution of this Agreement.

6. EVENTS OF DEFAULT UNDER THIS AGREEMENT

Any of the following shall constitute an Event of Default under this Agreement:

a. Failure by the Borrower to make any forbearance payment on the due date.

b. Failure by the Borrower to comply with any other term or condition of this Agreement.

c. Any representation or warranty made by the Borrower herein proving to be false or misleading in any material respect.

Upon the occurrence of an Event of Default under this Agreement, the Forbearance Period shall immediately terminate without notice, and the Lender shall be entitled to exercise all rights and remedies available to it under the Loan Agreement and applicable law with respect to the original Event of Default and any new Event of Default arising hereunder.

7. GOVERNING LAW AND JURISDICTION

This Agreement shall be governed by and construed in accordance with the laws of {{Governing_Law_Jurisdiction}}. The Parties irrevocably submit to the exclusive jurisdiction of the courts of {{Arbitration_Jurisdiction}} for the purpose of any suit, action, or other proceeding arising out of or in connection with this Agreement.

8. ENTIRE AGREEMENT

This Agreement constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior discussions, negotiations, and agreements, whether oral or written, relating thereto. No amendment or modification of this Agreement shall be effective unless in writing and signed by both Parties.

9. SIGNATURES

IN WITNESS WHEREOF, the Parties have executed this Forbearance Agreement with Release Provision as of the date first written above.

FOR THE LENDER:

_____________________________

Name: {{Lender_Signatory_Name}}

Title: {{Lender_Signatory_Title}}

Date: {{Lender_Signature_Date}}

FOR THE BORROWER:

_____________________________

Name: {{Borrower_Signatory_Name}}

Title: {{Borrower_Signatory_Title}}

Date: {{Borrower_Signature_Date}}