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Sample Form of Forbearance Agreement and Covenant Not to Execute

Posted by: on Tue, Apr 14, 2015

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FORBEARANCE AGREEMENT AND

COVENANT NOT TO EXECUTE

 

 

THIS FORBEARANCE AGREEMENT AND
COVENANT NOT TO EXECUTE is entered into this _____ day of April, 2015, by and
between Laboratory Corporation, a Delaware corporation, qualified to do
business in Nevada (“Judgment Creditor” ), and Diagnostic Center of Medicine
(Allen LLP), a Nevada limited liability company (“Judgment Debtor”).

 

RECITALS

 

WHEREAS, Judgment Creditor
presently has a claim for unpaid invoices against the Judgment Debtor as set
forth in the Complaint filed on June 24, 2014 as Case No. A-14-702958-C in the
Eighth Judicial District Court, Clark County, Nevada (the “Litigation”);

 

WHEREAS, Judgment Creditor’s
claims were reduced to a Default Judgment filed in the Litigation on April 8,
2015, granting Judgment Creditor judgment against Judgment Debtor as follows:

 

Principal                                              $114,645.16

Pre-judgment
interest                              18,562.89

Costs                                                            727.40

 

Total
Judgment                                   $133,664.25

 

together
with interest on all sums thereof outstanding from March 1, 2015 at the rate of
twelve percent (12%) per annum until paid in full, and attorneys’ fees in the
amount of $3,500.00;

 

WHEREAS, Judgment Creditor
has agreed to forbear on the terms and conditions set forth in this Agreement,
provided that Judgment Debtor executes, delivers, observes and performs this
Agreement; and

 

WHEREAS, Judgment Debtor has
agreed to do so, all in accordance with the terms hereof.

 

NOW, THEREFORE, in
consideration of the premises and mutual covenants herein contained, and for
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, Judgment Creditor and Judgment Debtor agree as follows:

 

1.         Judgment
Debtor has requested and Judgment Creditor has agreed, to and in accordance
with the terms of this Agreement, that although the amounts are presently due
under the Default Judgment described above, Judgment Creditor will forbear from
taking immediate legal action to execute on its Default Judgment or to otherwise
garnish or levy the Judgment Debtor in order to collect the amounts due, but
only for so long as Judgment Debtor complies with the terms of this Agreement.

 



2.         Judgment
Debtor agrees to pay the foregoing amounts at the rate of Twenty Thousand
Dollars ($20,000.00) per month, the first payment being due on May 15, 2015,
and the remaining payments being due on the third Friday of each month, until
the full amount owed has been paid in full.

 

3.         Each
payment hereunder shall first be applied to collection costs and attorneys’
fees, then to accrued interest, and then to the remaining principal amount due
hereunder.

 

4.         So
long as payments remain current hereunder, Judgment Creditor agrees that it
will not at any time, nor shall anyone on its behalf, enforce by execution or
otherwise, the Default Judgment which has been rendered in the Litigation as
set forth above.

 

5.         Judgment
Debtor shall have ten (10) days after notice of the default is delivered to its
counsel of record, Alan C. Sklar, Esq., of Sklar Williams PLLC, 410 South
Rampart Boulevard #350, Las Vegas, Nevada 89145 to cure any default.

 

6.         If
Judgment Debtor fails to make any monthly payment as it becomes due and payable
hereunder on or before the due date, then in that event Judgment Creditor shall
be considered delinquent in its payments and shall, as a result thereof, be in
default hereunder.  If the Judgment
Debtor fails to cure the default within ten (10) days as aforesaid, then the
entire outstanding remaining principal amount hereof, together with all accrued
interest, costs and fees, will be deemed automatically and immediately due and
payable, and the Judgment Creditor may thereupon immediately commence execution
proceedings on the Judgment Debtor.

 

7.         This
Covenant Not to Execute shall be interpreted according to Nevada law, and each
party is entitled to enforce this Covenant and recover any costs or fees which
it may incur in the enforcement of this Covenant in the event of a default by
the other party.

 

8.         It
is further agreed that this Covenant Not to Execute will not be filed with the
Clerk of the Court and will not be recorded, but entry and recordation shall be
stayed so long as the Judgment Debtor is current with its payments hereunder.

 

9.         At
such time as payment in full is made hereunder, without any uncured default
having ever occurred hereunder, then the Judgment Creditor shall execute a
Satisfaction of Judgment and file it in the Litigation.  Judgment Creditor shall also return to
Judgment Debtor’s counsel the original of this document or, if the original has
been lost, Judgment Creditor shall affirm that the document shall never be
entered in the Litigation and will be destroyed if found.

 

10.       Judgment
Debtor has requested and Judgment Creditor has agreed, to and in accordance
with the terms of this Agreement, that although the amounts are presently due
under the Default Judgment described above, Judgment Creditor will forbear from
taking immediate legal action to execute on its Default Judgment or to otherwise
garnish or levy the Judgment Debtor in order to collect the amounts due, but
only for so long as Judgment Debtor complies with the terms of this Agreement.

 

11.       Judgment
Debtor agrees to execute and deliver to Judgment Creditor at the time of
execution of this Agreement or immediately thereafter upon preparation by
Judgment Creditor, such guarantees, amendments, security agreements and
financing statements as Judgment Creditor, in its sole discretion, deems
necessary.  Judgment Creditor’s failure
or refusal to execute such documents shall constitute default hereunder.

 

12.       Without
waiving, curing or ceasing the continuance of the defaults, Judgment Creditor
will forbear from taking collection action regarding the Default Judgment until
an uncured default occurs as aforesaid (“Forbearance Period”), provided that
such forbearance in no way relieves Judgment Debtor from liability under the
Default Judgment or constitutes a waiver of Judgment Creditor’s rights or
remedies.

 

IN WITNESS WHEREOF, the parties have
executed this Forbearance Agreement and Covenant Not to Execute on the day and
year first above written.

 

JUDGMENT
CREDITOR:

 

LABORATORY
CORPORATION OF

AMERICA

 

 

By________________________________

Print
Name: ________________________

Title:
______________________________

 

JUDGMENT
DEBTOR:

 

DIAGNOSTIC
CENTER OF MEDICINE

(ALLEN)
LLP

 

 

By________________________________

Print
Name: ________________________

Title:
______________________________

 

 



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