Common use of Debt Forgiveness Clause in Contracts

Debt Forgiveness. Upon the consummation of the Closing or termination of the Merger Agreement for any reason other than as set forth in Section 1(a)(ii) above, the principal hereof, and all interest accrued thereon, is deemed forgiven without any further act by the parties hereto; provided that in connection with Closing, Lender may elect not to forgive the outstanding principal amount and all interest accrued hereon and such principal amount shall continue to accrue interest in accordance with the terms hereof following the Closing and will be due and payable on demand by Lender at any time following Closing.