Common use of Debt Restructuring Clause in Contracts

Debt Restructuring. In reliance on the representations, warranties, covenants and agreements set forth in this Agreement, and subject to the terms and conditions of this Agreement, at the Closing, Champps shall: (a) cancel all amounts due to Champps by the Company pursuant to the Old Promissory Note, including all outstanding principal in the amount of $2,300,000 and accrued and unpaid interest thereon in the amount of $200,000; and (b) cancel all amounts due to Champps by the Company pursuant to the Master Loan Agreement and the Master Demand Note, including all outstanding principal and any accrued and unpaid interest thereon. The actions referred to in clauses (a) and (b) above are referred to in this Agreement as the "Debt Restructuring." Any amounts due to Champps by the Company as described in Sections 1.02(a) and 1.02(b) hereof not satisfied by the consideration paid under Section 1.04 below shall be deemed to be a contribution by Champps to the capital of the Company.