SWISS PARALLEL DEBT OBLIGATION Clause Samples

SWISS PARALLEL DEBT OBLIGATION. (a) Notwithstanding any other provision of this Agreement, each Guarantor that provides a security right under Swiss law to the Administrative Agent (for the avoidance of doubt, the Administrative Agent acting in such capacity for itself and for the benefit and on the account of the Secured Creditors, including the Administrative Agent, in the event of a security right provided under Swiss law) hereby irrevocably and unconditionally agrees and covenants with the Administrative Agent by way of an abstract acknowledgement of indebtedness (abstraktes Schuldversprechen) that it also owes to the Administrative Agent as creditor in its own right and not as a representative of the other Secured Creditors, sums equal to, and in the currency of, each amount of the Guaranteed Obligations payable by such Guarantor to each of the Secured Creditors under this Guaranty as and when that amount falls due for payment or would have fallen due but for any discharge resulting from failure of another Secured Creditor to take appropriate steps, in insolvency proceedings affecting such Guarantor, to preserve its entitlement to be paid that amount; provided that in all events the aggregate amount which may become due under the Swiss Parallel Debt shall never exceed the aggregate amount which may become due under the Guaranteed Obligations. Such an agreement and covenant to pay and the obligations and liabilities resulting from it by the relevant Guarantor to the Administrative Agent are defined as the “Swiss Parallel Debt” and any security interest granted by the relevant Guarantor to the Administrative Agent to secure the Swiss Parallel Debt is granted to the Administrative Agent in its capacity as creditor of the Swiss Parallel Debt. (b) The relevant Guarantor undertakes to pay to the Administrative Agent upon first written demand the amount of the Swiss Parallel Debt payable by such Guarantor equal to the amount of the Guaranteed Obligation payable to each of the Secured Creditors under this Guarantee as such amount has become due and payable. (c) The Administrative Agent has the independent right to demand and receive full or partial payment of the amounts of the Swiss Parallel Debt payable by the relevant Guarantor under this Section 25, irrespective of any discharge of such Guarantor’s obligation to pay corresponding amounts of the Guaranteed Obligations to the other Secured Creditors resulting from failure by them to take appropriate steps, in insolvency proceedings affect...