Common use of Subordination of Liabilities Clause in Contracts

Subordination of Liabilities. Each Covanta Party, for itself, its successors and assigns, covenants and agrees, and each holder of Intercompany Indebtedness by its acceptance thereof likewise covenants and agrees, that the payment of the principal of, and interest on, and all other amounts owing in respect of, Intercompany Indebtedness is hereby expressly subordinated, to the extent and in the manner hereinafter set forth, to the indefeasible payment in full in cash or discharge in full of Senior Indebtedness in cash and cash collateralization of any outstanding letters of credit thereunder. The subordination provisions set forth herein shall constitute a continuing offer to all persons who, in reliance upon such provisions, become holders of, or continue to hold, Senior Indebtedness, and such provisions are made for the benefit of the holders of Senior Indebtedness, and such holders are hereby made obligees hereunder to the same extent as if their names were written herein as such, and they and/or each of them may proceed to enforce such provisions.

Subordination of Liabilities. Each Covanta PartyPayor that is a Loan Party (each a “Loan Party Payor”), for itself, its successors and assigns, covenants and agrees, and each holder of Intercompany Indebtedness by its acceptance thereof Payee likewise covenants and agrees, that the payment of the principal of, and interest on, and all other amounts owing by any Loan Party Payor in respect of, the Intercompany Note (including all loans and advances at any time made to any Loan Party Payor by any Payee) and all other Subordinated Indebtedness (as defined below in Section 1.07) is hereby expressly subordinated, to the extent and in the manner hereinafter set forth, to the indefeasible prior payment in full in cash or discharge in full of all Senior Indebtedness (as defined in cash and cash collateralization of any outstanding letters of credit thereunderthe Intercompany Note). The subordination provisions set forth herein of this Annex A shall constitute con-stitute a continuing offer to all persons Persons or other entities who, in reliance upon such provisions, become holders of, or continue to hold, Senior Indebtedness, and such provisions are made for the benefit of the holders of Senior Indebtedness, and such holders are hereby made obligees hereunder to the same extent as if their names were written herein as such, and they and/or each of them may proceed to enforce such provisions.