Common use of Additional Guaranty Clause in Contracts

Additional Guaranty. If so requested by SANZ, the Fund, in its sole discretion, may guaranty an additional $2,000,000 of the outstanding indebtedness of SANZ and/or its subsidiaries arising under the New Credit Facility (the “Additional Guaranty”). In such circumstances, in the event the Additional Guaranty is not released (whether through repayment of the New Credit Facility, by mutual agreement of the parties thereto or otherwise) within the eighteen month (18) period following the initial effective date of the Additional Guaranty, then SANZ shall issue to Sun warrants exerciseable for shares of SANZ Common Stock in substantially the form attached hereto as Annex A (the “Guaranty Warrants”). The number of shares of SANZ Common Stock for which the Guaranty Warrants will be exerciseable shall equal the product of (i) 3,086,218 and (ii) a fraction, the numerator of which shall be the actual amount of the Additional Guaranty as of the end of such eighteen (18) month period, and the denominator of which shall be $2,000,000.