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Title: |
Forbearance Agreement |
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Entities: |
Chase Manhattan Bank; Chase Securities Inc.; Lexar Media, Inc. |
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Date: |
2001 |
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Size: |
Preview shows 4KB of 23KB total |
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Price: |
$38 |
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ID: |
#855937 |
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FORBEARANCE AGREEMENT
This Forbearance Agreement is entered into as of February 7, 2001 among
ACCESS TECHNOLOGY PARTNERS, L.P. ("Access"), LEXAR MEDIA, INC. ("Borrower"), and
PRINTROOM.COM ("Subsidiary"), with reference to the following facts:
A. Access and the Borrower are parties to that certain Credit Agreement
dated as of June 30, 2000 (as amended, the "Credit Agreement").
B. Borrower and Subsidiary have executed and delivered in favor of Access
that certain Guarantee and Collateral Agreement dated June 30, 2000 (the
"Security Agreement"). (Capitalized terms used in this Agreement, which are not
defined herein, shall have the meanings set forth in the Credit Agreement. The
Credit Agreement, the Security Agreement and all other present and future
documents, instruments and agreements relating thereto are referred to herein
collectively as the "Loan Documents". Borrower and Subsidiary are referred to
herein jointly and severally as the "Obligors".)
C. Material Events of Default have occurred and are continuing under the
Loan Documents, consisting of the failure of the Borrower to meet the financial
covenants set forth in Sections 7.1(a), (b) and (c) as of December 31, 2000
(collectively, the "Existing Defaults").
D. Borrower has requested that Access defer taking action by reason of
the Existing Defaults. Access is willing to do so for the period and on the
terms and conditions set forth in this Agreement.
NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS:
1. Forbearance.
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1.1. Forbearance Period. Access agrees to forbear from exercising its
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rights and remedies, as a result of the Existing Defaults, until the earlier of
the following dates (the "Forbearance Period"): (i) December 31, 2001, or (ii)
the date any Additional Default shall occur. In agreeing to forbear from
exercising its rights and remedies, Access is not waiving the Existing Defaults
or any rights or remedies in connection therewith, all of which are expressly
reserved. Upon the expiration of the Forbearance Period, Access may, at its
option, exercise any and all rights or remedies in connection with the Existing
Defaults, without further notice. Nothing herein shall prohibit Access from
giving notice of the Existing Defaults to The Chase Manhattan Bank (in its
capacity as agent and lender, the "Bank") pursuant to the Intercreditor
Agreement between Access and the Bank.
1.2. "Additional Default." As used in this Agreement, "Additional Default"
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means any of the following (but not including the Existing Defaults): (i) any
default or Event of Default under any Loan Document (including, without
limitation, any breach of any term or provision of this Agreement), (ii) any
event which, with notice or passage of time or both, would constitute a default
or Event of Default under any Loan Document, (iii) any failure of the Borrower
to meet the financial covenants set forth in Section 2 below, (iv) any breach of
any representation or warranty in this Agreement or any other Loan Document, (v)
any material adverse change in the business, prospects, operations, results of
operations, assets, liabilities or financial or other condition of Borrower, or
any impairment of Borrower's ability to pay or perform the Obligations or any
material adverse change in the value of the Collateral. Without limiting any
other
-1-
<PAGE>
provision of this Agreement, Access may, in its sole and absolute discretion,
waive an Additional Default, but only in a specific written waiver signed by
Access, and no such waiver shall imply or constitute an agreement on the part of
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