Common use of Guarantee Fee Clause in Contracts

Guarantee Fee. Neither the Manager nor any of its Affiliates is obligated to guaranty, be personally liable upon, or to pledge assets to secure, any indebtedness that may be incurred by the Company. If, however, any such Person guarantees, becomes personally liable upon, or pledges its own assets to secure payment of, any indebtedness of the Company, the Company shall pay to such Person an annual guaranty fee equal to 1% of the higher of (i) the amount of such guaranteed indebtedness on the first day of the Fiscal Year or (ii) the highest outstanding amount of such guaranteed indebtedness at any time during the Fiscal Year; provided, however, that notwithstanding the foregoing, if such Person pledges assets to secure, but does not otherwise become personally liable upon, such indebtedness, the amount of the annual guarantee fee shall in no event exceed 1% of the fair value of the assets pledged to secure such indebtedness, as along as such pledge remains in effect. Such fee shall be payable no later than the January 15 of each Fiscal Year and, if at any time during the year the amount of the guaranteed indebtedness exceeds the level of such guaranteed indebtedness as of January 1 of such Fiscal Year, the additional fee due to the guarantor, as a result of this additional exposure to the guarantor, shall be paid to the guarantor no later than January 15 of the following Fiscal Year.