CONSOLIDATED ENERGY, INC.ADDITIONAL FINANCING FORBEARANCE AGREEMENTDefault Notice Forbearance Agreement |
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Exhibit 10.71
CONSOLIDATED ENERGY, INC.
October 6, 2005
ADDITIONAL FINANCING FORBEARANCE AGREEMENT
Gentlemen:
Reference is made to that certain Securities Purchase Agreement dated as of
February 22, 2005 among Consolidated Energy, Inc., a Wyoming corporation (the
"Company") and the Purchasers (the "Purchasers") named therein, as amended
through the date hereof (the "Purchase Agreement"), the 6% Senior Secured
Convertible Notes Due 2008 of Consolidated Energy, Inc. in favor of the
holders thereof (the "Senior Notes"), and the other Transaction Documents.
Capitalized terms, unless otherwise herein defined, shall have the meanings
assigned to them in the Purchase Agreement.
Cordillera Fund L.P. (the "Bridge Lender") has previously extended credit to
the Company pursuant to a Promissory Note dated September 23, 2005 (the
"Bridge Note"). In order to induce the Bridge Lender to make such extension
of credit to the Company, the Bridge Lender required the Purchasers to
forbear, for period of ten (10) business days from the date of the Bridge
Note, from exercising their rights or remedies under the Transaction
Documents, pursuant to that certain Bridge Forbearance letter agreement dated
September 23, 2005 (the "Bridge Forbearance") as executed by the Company and
the Purchasers. The Bridge Lender is now requesting that the Purchasers
extend the period of forbearance from exercising their rights or remedies
under the Transaction Documents pursuant to the terms of this Additional
Financing Forbearance Agreement (which supersedes and replaces the Bridge
Forbearance).
Each of the undersigned hereby agrees to continue to forebear from exercising
any of its rights or remedies under the Purchase Agreement, its Senior Note,
the Security Agreement, or any other Transaction Documents until the earliest
to occur of the following: (i) November 18, 2005, (ii) the expiration and
termination of the Bridge Note, or (iii) the completion by the Company of a
new financing (whether by debt, stock or otherwise) (as the case may be, the
"Forbearance Period"). Each of the undersigned u






