Common use of Debt Forgiveness Clause in Contracts

Debt Forgiveness. The Executive has borrowed One Million, Two Hundred Fifty-Five Thousand Dollars ($1,255,000) from the Corporation evidenced by two promissory notes, copies of which are attached hereto as Exhibits A and B. The Corporation shall forgive One Hundred Twenty-Five Thousand, Five Hundred Dollars ($125,500) of the principal amount, together with accrued interest, beginning January 1, 2000 and on each January 1 thereafter; so long as the Executive remains an employee of the Corporation. If the Executive ceases to be an employee of the Corporation for any of the reasons specified in Section 4.(a) or (b), or if the Executive is terminated by the Corporation other than a termination for cause as provided in Section 4; then the outstanding balance owed to the Corporation by the Executive and all accrued interest shall immediately be forgiven in full. If the Executive resigns, is terminated for cause or for breaching this Agreement, then the full amount outstanding and all accrued interest shall immediately become due and payable.