PERMIT ANY OF ITS SUBSIDIARIES TO, ENGAGE IN
ANY BUSINESS OTHER THAN BUSINESSES OF THE TYPE GENERALLY CONDUCTED BY THE
BORROWER AND ITS SUBSIDIARIES ON THE DATE OF EXECUTION OF THIS AGREEMENT AND
BUSINESSES REASONABLY RELATED THERETO OR REASONABLE EXTENSIONS OR EXPANSIONS
THEREOF.
Section 6.04
Investments, Loans, Advances, Guarantees and
Acquisitions.
No Loan Party will, nor will it permit any of its Subsidiaries
to, purchase, hold or acquire (including pursuant to any merger with any Person
that was not a Loan Party and a wholly owned Subsidiary prior to such merger)
any capital stock, evidences of indebtedness or other securities
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(including any option, warrant or other right to acquire any of the foregoing)
of, make or permit to exist any loans or advances to, Guarantee any obligations
of, or make or permit to exist any investment or any other interest in, any
other Person, or purchase or otherwise acquire (in one transaction or a series
of transactions) any assets of any other Person constituting a business unit
(whether through purchase of assets, merger or otherwise), except:
(A) PERMITTED INVESTMENTS, SUBJECT TO CONTROL AGREEMENTS (WITH RESPECT TO LOAN
PARTIES) IN FAVOR OF THE ADMINISTRATIVE AGENT FOR THE BENEFIT OF THE LENDERS OR
OTHERWISE SUBJECT TO A PERFECTED SECURITY INTEREST IN FAVOR OF THE
ADMINISTRATIVE AGENT FOR THE BENEFIT OF THE LENDERS;
(B) INVESTMENTS BY THE LOAN PARTIES AND THEIR SUBSIDIARIES EXISTING ON THE DATE
HEREOF IN THE CAPITAL STOCK OR OTHER EQUITY INTERESTS OF THEIR RESPECTIVE
SUBSIDIARIES;
(C) INVESTMENTS, LOANS OR ADVANCES MADE BY A LOAN PARTY TO ANY SUBSIDIARY
GUARANTOR;
(D) GUARANTEES PERMITTED BY SECTION 6.01 (EXCLUDING CLAUSE (X) THEREOF);
(E) INVESTMENTS, LOANS AND ADVANCES IN EXISTENCE ON THE DATE OF THIS AGREEMENT
AND DESCRIBED IN SCHEDULE 6.04 AND ANY EXTENSIONS OR RENEWALS THEREOF WHICH DO
NOT INCREASE THE AMOUNT THEREOF OR CONVERSIONS OF ANY SUCH LOANS OR ADVANCES TO
EQUITY INVESTMENTS;
(F) LOANS, ADVANCES OR OTHER EXTENSIONS OF CREDIT MADE BY A LOAN PARTY OR ANY
SUBSIDIARY TO ITS EMPLOYEES, OFFICERS AND DIRECTORS IN THE ORDINARY COURSE OF
BUSINESS FOR TRAVEL AND ENTERTAINMENT EXPENSES, RELOCATION COSTS AND SIMILAR
PURPOSES UP TO A MAXIMUM OF $5,000,000 IN THE AGGREGATE AT ANY ONE TIME
OUTSTANDING;
(G) SUBJECT TO SECTIONS 4.2(A) AND 4.4 OF THE SECURITY AGREEMENT, NOTES PAYABLE,
OR STOCK OR OTHER SECURITIES ISSUED BY ACCOUNT DEBTORS TO A LOAN PARTY PURSUANT
TO NEGOTIATED AGREEMENTS WITH RESPECT TO SETTLEMENT OF SUCH ACCOUNT DEBTOR'S
ACCOUNTS IN THE ORDINARY COURSE OF BUSINESS;
(H)(I) INVESTMENTS, LOANS OR ADVANCES MADE BY ANY LOAN PARTY TO ANY SUBSIDIARY
WHICH IS NOT A SUBSIDIARY GUARANTOR, (II) INVESTMENTS IN ANY JOINT VENTURE
(INCLUDING THE TRINIDAD JOINT VENTURE) AND MINORITY INTERESTS AND (III)
INVESTMENTS MADE IN ORDER TO CONSUMMATE ACQUISITIONS; PROVIDED, THAT (1) NO
EVENT OF DEFAULT SHALL HAVE OCCURRED AND BE CONTINUING OR WOULD RESULT
THEREFROM, (2) IMMEDIATELY BEFORE AND IMMEDIATELY AFTER GIVING EFFECT TO ANY
SUCH INVESTMENT AND TO ANY RELATED BORROWING, THE AGGREGATE AMOUNT OF SUCH
INVESTMENTS, LOANS AND ADVANCES THEN OUTSTANDING AFTER GIVING