Common use of Subordination of Guarantor’s Conditional Rights Clause in Contracts

Subordination of Guarantor’s Conditional Rights. As used herein, the term “Guarantor’s Conditional Rights” shall mean any and all debts and liabilities of Borrower owed to Guarantor, whether such debts and liabilities now exist or are hereafter incurred or arise, or whether the obligations of Borrower thereon be direct, contingent, primary, secondary, several, joint and several or otherwise, and irrespective of whether such debts or liabilities be evidenced by note, contract, open account or otherwise, and irrespective of the Person or Persons in whose favor such debts or liabilities may, at their inception, have been or may hereafter be created or the manner in which they have been or may hereafter be acquired by Guarantor. Prior to the occurrence and continuance of an Event of Default, Guarantor’s Conditional Rights hereunder shall not include Guarantor’s right to receive equity distributions from Borrower directly or indirectly from time to time.