Common use of Scope of Subordination Clause in Contracts

Scope of Subordination. The provisions of this Agreement are solely to define the relative rights of any Holder of Subordinated Indebtedness and the Senior Lender. Nothing in this Agreement shall impair, as between the Company, Guarantor and the Subordinated Lender the unconditional and absolute obligation of the Company and/or Guarantor to punctually pay the principal, interest and any other amounts and obligations owing under the Subordinated Note and/or Subordinated Lending Agreements in accordance with the terms thereof, subject to the rights of the Senior Lender under this Agreement. If the Borrower fails because of this Agreement to pay principal of, premium, if any, and interest on the Subordinated Notes or any other obligations owing under the Subordinated Lending Agreements on the date when such payment is due (other than any payment due after, and during the effectiveness of, a Default Notice), the failure to make such payment shall be an Event of Default under the Subordinated Lending Agreements notwithstanding any provision of this Agreement.

Scope of Subordination. The provisions of this Agreement are solely to define the relative rights of any Holder of Subordinated Indebtedness Indebtedness, the Senior Lender and the Senior Subordinated Lender. Nothing in this Agreement shall impair, as between the Company, Guarantor and the Subordinated Lender the unconditional and absolute obligation of the Company and/or Guarantor to punctually pay the principal, interest and any other amounts and obligations owing under the Subordinated Note and/or any Subordinated Lending Agreements in accordance with the terms thereof, subject to the rights of the Senior Lender under this Agreement. If the Borrower fails because of this Agreement to pay principal of, premium, if any, and interest on the Subordinated Notes or any other obligations owing under the Subordinated Lending Agreements on the date when such payment is due (other than any payment due after, and during the effectiveness of, a Default Notice), the failure to make such payment shall be an Event of Default under the Subordinated Lending Agreements notwithstanding any provision of this Agreement.