Common use of Subordination Covenants Clause in Contracts

Subordination Covenants. Each Junior Creditor covenants and agrees that all Indebtedness, claims and liabilities then or thereafter owing by the Company or any other Loan Party to such Junior Creditor, whether arising hereunder or otherwise, are subordinated to the prior payment in full of the Obligations and are so subordinated as a claim against such Loan Party or any of its assets, whether such claim be in the ordinary course of business or in the event of voluntary or involuntary liquidation, dissolution, insolvency or bankruptcy, so that no payment with respect to any such Indebtedness, claim or liability will be made or received while any Event of Default exists. If notwithstanding the foregoing any payment with respect to any such Indebtedness, claim or liability is received by any Junior Creditor in contravention of this Agreement, such payment shall be held in trust for the benefit of the Agent and promptly turned over to it in the original form received by such Junior Creditor.

Subordination Covenants. Each Junior Creditor covenants and agrees that all Indebtedness, claims and liabilities then Indebtedness now or thereafter hereafter owing by the Company or any other Loan Party Obligor to such Junior Creditor, whether arising hereunder or otherwise, are subordinated to the prior payment in full of the Credit Obligations and are so subordinated as a claim against such Loan Party Obligor or any of its assets, whether such claim be in the ordinary course of business or in the event of voluntary or involuntary liquidation, dissolution, insolvency or bankruptcy, so that no payment with respect to any such Indebtedness, claim or liability Indebtedness will be made or received while any Event of Default exists. If notwithstanding the foregoing any payment with respect to any such Indebtedness, claim or liability Indebtedness is received by any Junior Creditor in contravention of this Agreement, such payment shall be held in trust for the benefit of the Agent Purchasers and promptly turned over to it in the original form received by such Junior Creditor.