Common use of Additional Payment Guaranty Clause in Contracts

Additional Payment Guaranty. (a) As a material inducement to Lender to enter into this Agreement and to consent to the Requested Actions, and in addition to, and not in substitution for or modification or amendment of, the provisions of the Guaranty, New Indemnitor hereby absolutely, unconditionally and irrevocably guarantees to Lender the full and prompt payment of any deductible for any insurance policy required by Sections 2(a), 2(c), 2(e), or 2(g) of the Security Instrument which is not paid by Aurora under the Aurora Lease (the “Property Insurance Deductible”) within ten (10) days after such amount becomes due and payable (the "Insurance Deductible Guaranty") and New Indemnitor shall provide evidence of such payment to Lender within five (5) days of payment. New Indemnitor agrees to pay the Property Insurance Deductible before any proceeds from insurance shall be disbursed to New Borrower and/or Aurora. (b) Pursuant to Subsections (B), (C), and (D) of Section 2(a)(ii) of the Security Instrument, New Borrower is required to obtain, or cause Aurora to obtain, business income and extra expense insurance covering losses, including, but not limited to, a loss of business income and Rents (as defined in the Security Instrument), for a period of eighteen (18) months. As of the Acquisition Date, however, Aurora has only obtained insurance covering such losses for a period of twelve (12) months, and New Borrower has not obtained insurance coverage to fill the six (6) month gap between the period covered and the period required to be covered by Subsections (B), (C), and (D) of Section 2(a)(ii) of the Security Instrument (the "Business Income Insurance Gap"). As a material inducement to Lender to enter into this Agreement and to consent to the Requested Actions, and in addition to, and not in substitution for or modification or amendment of, the provisions of the Guaranty, New Indemnitor hereby absolutely, unconditionally and irrevocably guarantees to Lender the full and prompt payment of one hundred percent (100%) of the Rents receivable from the Mortgaged Property (as defined in the Security Instrument) during the Business Income Insurance Gap (the "Business Income Gap Guaranty", together with the Insurance Deductible Guaranty, the "Additional Payment Guaranty"). Notwithstanding the foregoing, New Indemnitor shall not be liable for the Business Income Gap Guaranty unless and until the proceeds from Aurora's business income insurance policy have been exhausted. (c) New Indemnitor hereby specifically acknowledges and agrees that the Additional Payment Guaranty is a separate and distinct guaranty obligation of New Indemnitor and that it is in addition to, and not in lieu of, or otherwise incorporated with or into, any of New Indemnitor's other obligations under the Guaranty pursuant to, and as modified by, this New Indemnitor Joinder.