OR OTHERWISE), EXCEPT:
(A) PERMITTED INVESTMENTS, SUBJECT TO A PERFECTED SECURITY INTEREST IN FAVOR OF
THE AGENT FOR THE BENEFIT OF THE LENDERS;
(B) INVESTMENTS IN EXISTENCE OR CONTEMPLATED ON THE DATE OF THIS AGREEMENT AND
DESCRIBED IN SCHEDULE 6.04; AND ANY MODIFICATION, REPLACEMENT, RENEWAL,
REINVESTMENT OR EXTENSION THEREOF (PROVIDED THAT THE AMOUNT OF THE ORIGINAL
INVESTMENT IS NOT INCREASED EXCEPT AS OTHERWISE PERMITTED BY THIS SECTION 6.04),
AND ANY INVESTMENTS, LOANS AND ADVANCES EXISTING ON THE DATE HEREOF BY THE
BORROWER OR ANY SUBSIDIARY IN OR TO THE BORROWER OR ANY OTHER SUBSIDIARY OF THE
BORROWER;
(C) LOANS OR ADVANCES TO OFFICERS, DIRECTORS AND EMPLOYEES OF HOLDINGS, THE
BORROWER AND ANY SUBSIDIARY (I) FOR REASONABLE AND CUSTOMARY BUSINESS RELATED
TRAVEL, ENTERTAINMENT, RELOCATION AND ANALOGOUS ORDINARY BUSINESS PURPOSES AND
(II) IN CONNECTION WITH SUCH PERSONS' PURCHASE OF EQUITY INTERESTS OF HOLDINGS
(OR ANY DIRECT OR INDIRECT PARENT THEREOF (PROVIDED THAT THE AMOUNT OF SUCH
LOANS AND ADVANCES SHALL BE CONTRIBUTED TO THE BORROWER IN CASH AS COMMON
EQUITY));
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(D) INVESTMENTS BY HOLDINGS IN THE BORROWER AND BY THE BORROWER AND THE
SUBSIDIARIES THAT ARE LOAN PARTIES IN EQUITY INTERESTS IN THEIR RESPECTIVE
SUBSIDIARIES THAT ARE LOAN PARTIES; PROVIDED THAT ANY SUCH EQUITY INTEREST SHALL
BE PLEDGED PURSUANT TO THE SECURITY AGREEMENT (SUBJECT TO THE LIMITATIONS
REFERRED TO IN SECTION 5.11);
(E) LOANS OR ADVANCES MADE BY THE BORROWER TO ANY SUBSIDIARY THAT IS A LOAN
PARTY AND MADE BY ANY SUBSIDIARY THAT IS A LOAN PARTY TO THE BORROWER OR ANY
OTHER SUBSIDIARY THAT IS A LOAN PARTY;
(F) GUARANTEES CONSTITUTING INDEBTEDNESS PERMITTED BY SECTION 6.01 BY LOAN
PARTIES OF ANY INDEBTEDNESS OF OTHER LOAN PARTIES;
(G) INVESTMENTS IN THE FORM OF SWAP AGREEMENTS PERMITTED BY SECTION 6.07;
(H) INVESTMENTS OF ANY PERSON EXISTING AT THE TIME SUCH PERSON BECOMES A
SUBSIDIARY OF THE BORROWER OR CONSOLIDATES OR MERGES WITH THE BORROWER OR ANY OF
THE SUBSIDIARIES (INCLUDING IN CONNECTION WITH A PERMITTED ACQUISITION) SO LONG
AS SUCH INVESTMENTS WERE NOT MADE IN CONTEMPLATION OF SUCH PERSON BECOMING A
SUBSIDIARY OR OF SUCH MERGER;
(I) INVESTMENTS RECEIVED IN CONNECTION WITH THE DISPOSITIONS OF ASSETS PERMITTED
BY SECTION 6.05;
(J) INVESTMENTS CONSTITUTING DEPOSITS DESCRIBED IN CLAUSES (D) AND (E) OF THE
DEFINITION OF THE TERM "PERMITTED ENCUMBRANCES";
(K) ACCOUNTS RECEIVABLE OR NOTES RECEIVABLE ARISING AND TRADE CREDIT GRANTED IN
THE ORDINARY COURSE OF BUSINESS AND OTHER CREDITS TO SUPPLIERS OR VENDORS IN THE
ORDINARY COURSE OF BUSINESS;
(L) (I) PERMITTED ACQUISITIONS AND (II) ACQUISITIONS OF THE MINORITY INTERESTS
IN KATE SPADE LLC AND/OR GURWITCH PRODUCTS LLC TO THE EXTENT SUCH ACQUISITIONS
ARE FINANCED WITH SUBORDINATED INDEBTEDNESS PERMITTED UNDER SECTION 6.01(V);
(M) LIENS, INDEBTEDNESS, FUNDAMENTAL CHANGES, DISPOSITIONS AND RESTRICTED
PAYMENTS PERMITTED UNDER SECTIONS 6.01, 6.02, 6.03, 6.05, 6.06 AND 6.08,
RESPECTIVELY;
(N) THE TRANSACTIONS;
(O) INVESTMENTS IN THE ORDINARY COURSE OF BUSINESS CONSISTING OF ARTICLE 3
ENDORSEMENTS FOR COLLECTION OR DEPOSIT AND ARTICLE 4 CUSTOMARY TRADE
ARRANGEMENTS WITH CUSTOMERS CONSISTENT WITH PAST PRACTICES;
(P) INVESTMENTS (INCLUDING DEBT OBLIGATIONS AND EQUITY