Releases of Second Priority Lien. (a) Upon any sale or other disposition of Common Collateral that results in the release of the First Priority Lien on any Common Collateral (including, without limitation, any sale or other disposition pursuant to any Enforcement Action), the Second Priority Lien on such Common Collateral shall be automatically released with no further consent or action of any Person. The parties acknowledge that the Liens of the parties shall attach in the same priority as contemplated by this Agreement to the proceeds of such sale or other disposition in accordance with applicable law and that any such proceeds realized from an Enforcement Action shall be applied in accordance with the terms of Section 5.1.
Appears in 4 contracts
Samples: Intercreditor and Subordination Agreement (Teton Energy Corp), Intercreditor and Subordination Agreement (Teton Energy Corp), Intercreditor and Subordination Agreement (Teton Energy Corp)
