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Re: logofroll post# 191

Sunday, 01/29/2006 10:06:53 PM

Sunday, January 29, 2006 10:06:53 PM

Post# of 1885
There seems to be confusion about what is meant by "and, for the sake of clarity, in no event shall such forbearance extend beyond February 3, 2006".

This has been included in the language of every agreement signed to date as it relates to the forbearance agreements. It is not intended to mean that there will not be future extension. What is meant is that CapSource remains in control of the extensions and that World Health cannot extend without the consent and a legal draft that endorses the extension.

Capsource realizes that providing an extension for a longer period delays any actions they could take in the event that a deal might come along that would make them whole. If such a deal came along and they were locked in to a forbearnace agreement that was executed for a longer period, the potential deal may fall apart before they could act on it.

In the meantime they know they are stuck continuing to provide the extensions as they don't want to write this much down as bad debt.

I hope this clears up the reason for the language.

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