This Subordination Agreement is between a debtor, original creditor and a new creditor who has agreed to provide a loan to the debtor. In this agreement the original creditor agrees to subordinate all security interest to the new creditor except security in debtor's inventory which is pledged to original creditor. This agreement sets out the names of all parties and the amount and date of the loan. It also sets out the exclusion of inventory which is secured by the original loan. A written Subordination Agreement (Except for Inventory) will prove invaluable in the event there are disagreements or miscommunication between the parties about the loan security. This agreement is set forth in a short format.

This Subordination Agreement (Except for Inventory/Short Form) includes the following:

• Parties: Identity of both creditors and the debtor;
• Loan Information: Sets forth the amount and date of loan agreement between the debtor and the new creditor;
• Consent/Disentitlement: Sets forth original creditor's consent to new creditor's rights to security and disentitlement of new creditor's security in debtor's inventory.

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This attorney-prepared packet contains:

1. General Instructions
2. Subordination Agreement (Except for Inventory/Short Form)

State Law Compliance: This form complies with the laws of all states