Common use of Inventory Financing Clause in Contracts

Inventory Financing. Upon the written request of Borrower, Lender agrees to negotiate in good faith with Borrower and a third-party lender, which proposes to provide to Borrower inventory financing with respect to the Product (the "Financing Party"), to enter into an intercreditor agreement on terms reasonably satisfactory to Lender, providing that, effective upon the repayment of all of Borrower's obligations under the Loan Documents with respect to Pre-Approval Advances (i) each of Lender and the Financing Party will have a security interest in the First Year Sales Collateral, (ii) the Financing Party will serve as collateral agent for the First Year Sales Collateral for the benefit of Lender and the Financing Party, and (iii) the obligations of Borrower to the Financing Party shall be subordinate to the prior payment in full of all of Borrower's obligations under the Loan Documents with respect to First Year Sales Advances. ARTICLE IX