Common use of Employee Loans and Affiliate Transactions Clause in Contracts

Employee Loans and Affiliate Transactions. (a) No Borrower shall enter into or be a party to any transaction with any other Credit Party (other than other Borrowers) or any Affiliate thereof except in the ordinary course of and pursuant to the reasonable requirements of such Borrower's business and upon fair and reasonable terms that are no less favorable to such Borrower than would be obtained in a comparable arm's length transaction with a Person not an Affiliate of such Borrower (except for transactions otherwise expressly permitted hereunder). In addition, if any such transaction or series of related transactions (other than purchases and sales of Inventory in the ordinary course of business) involves payments in excess of $500,000 in the aggregate, the terms of these transactions must be disclosed in advance to Agent and Lenders. All such transactions in excess of $500,000 existing as of the date hereof are described in Disclosure Schedule (6.4(a)). (b) No Credit Party shall enter into any lending or borrowing transaction with any employees of any Credit Party, except loans to its respective employees in the ordinary course of business consistent with past practices for travel and entertainment expenses, relocation costs and similar purposes and stock option financing up to a maximum of $1,000,000 in the aggregate at any one time outstanding.

Employee Loans and Affiliate Transactions. (a) No Borrower Except as otherwise expressly permitted in this Section 6 with respect to Affiliates, no Credit Party shall enter into or be a party to any transaction with any other Credit Party (other than other Borrowers) or any Affiliate thereof except in the ordinary course of and pursuant to the reasonable requirements of such BorrowerCredit Party's business and upon fair and reasonable terms that are no less favorable to such Borrower Credit Party than would be obtained in a comparable arm's length transaction with a Person not an Affiliate of such Borrower (except for transactions otherwise expressly permitted hereunder)Credit Party. In addition, if any such transaction or series of related transactions (other than purchases Permitted Telmark Sale-Leaseback Transactions) between any Credit Party and sales of Inventory in the ordinary course of businessan Affiliate (which is not a Credit Party) involves payments in excess of $500,000 1,000,000 in the aggregate, the terms of these transactions must be disclosed in advance to Agent and Lenders. All such transactions in excess of $500,000 existing as of the date hereof are described in Disclosure Schedule (6.4(a)). (b) No Credit Party shall enter into any lending or borrowing transaction with any employees of any Credit Party, except loans to its respective employees in the ordinary course of business consistent with past practices for travel and entertainment expenses, relocation costs and similar purposes and stock option financing up to a maximum of $1,000,000 400,000 to any employee and up to a maximum of $2,000,000 in the aggregate at any one time outstanding.

Employee Loans and Affiliate Transactions. (a) No Borrower Credit Party shall enter into or be a party to any transaction with any other Credit Party Affiliate thereof (other than other Borrowersanother Credit Party) or any Affiliate thereof except in the ordinary course of and pursuant to the reasonable requirements of such BorrowerCredit Party's business and upon fair and reasonable terms that are no less favorable to such Borrower Credit Party than would be obtained in a comparable arm's length transaction with a Person not an Affiliate of such Borrower Credit Party, except intercompany loans permitted in clauses (except for transactions otherwise expressly permitted hereunder)h) and (i) of Section 6.3 and the Consignment Agreement. In addition, if any such transaction or series of related transactions (other than purchases and sales of Inventory in the ordinary course of business) involves payments in excess of $500,000 1,000,000 in the aggregate, the terms of these transactions must be disclosed in advance to Agent and Lenders(which disclosure may be in the form of a request for issuance of an Eligible Trade L/C). All such transactions in excess of $500,000 existing as of the date hereof are described in on Disclosure Schedule (6.4(a)). (b) No Credit Party shall enter into any lending or borrowing transaction with any employees employee of any Credit Party, except loans to its their respective employees on an arm's length basis in the ordinary course of business consistent with past practices for travel and entertainment expenses, relocation costs and similar purposes up to a maximum of $200,000 to any employee and stock option financing up to a maximum of $1,000,000 in the aggregate at any one time outstanding.

Employee Loans and Affiliate Transactions. (a) No Borrower Credit Party shall enter into or be a party to any transaction with any other Credit Party Affiliate thereof (other than other Borrowersanother Credit Party) or any Affiliate thereof except in the ordinary course of and pursuant to the reasonable requirements of such BorrowerCredit Party's business and upon fair and reasonable terms that are no less favorable to such Borrower than Credit Party that would be obtained in a comparable arm's length transaction with a Person not an Affiliate of such Borrower Credit Party, except intercompany loans permitted in clauses (except for transactions otherwise expressly permitted hereunder)h) and (i) of Section 6.3 and the Consignment Agreement. In addition, if any such transaction or series of related transactions (other than purchases and sales of Inventory in the ordinary course of business) involves payments in excess of $500,000 1,000,000 in the aggregate, the terms of these transactions must be disclosed in advance to Agent and Lenders(which disclosure may be in the form of a request for issuance of an Eligible Trade L/C). All such transactions in excess of $500,000 existing as of the date hereof are described in on Disclosure Schedule (6.4(a)). (b) No Credit Party shall enter into any lending or borrowing transaction with any employees employee of any Credit Party, except loans to its their respective employees on an arm's length basis in the ordinary course of business consistent with past practices for travel and entertainment expenses, relocation costs and similar purposes up to a maximum of $200,000 to any employee and stock option financing up to a maximum of $1,000,000 in the aggregate at any one time outstanding.

Employee Loans and Affiliate Transactions. (a) No Borrower Except as otherwise ----------------------------------------- expressly permitted in this Section 6 with respect to Affiliates, no Credit Party shall enter into or be a party to any transaction with any other Credit Party (other than other Borrowers) or any Affiliate thereof except in the ordinary course of and pursuant to the reasonable requirements of such BorrowerCredit Party's business and upon fair and reasonable terms that are no less favorable to such Borrower Credit Party than would be obtained in a comparable arm's length transaction with a Person not an Affiliate of such Borrower (except for transactions otherwise expressly permitted hereunder)Credit Party. In addition, if any such transaction or series of related transactions (other than purchases and sales of Inventory in the ordinary course of business) involves payments in excess of $500,000 250,000 in the aggregate, the terms of these transactions must be disclosed in advance to Agent and Lenders. All such transactions in excess of $500,000 existing as of the date hereof are described in on Disclosure Schedule (6.4(a)). (b) No From and after the date hereof, no Credit Party shall enter into any lending or borrowing transaction with any employees of any Credit Party, except loans to its their respective employees on an arm's-length basis in the ordinary course of business consistent with past practices for travel and entertainment expenses, relocation costs and similar purposes and stock option financing up to a maximum of $1,000,000 250,000 to any employee and up to a maximum of $500,000 in the aggregate at any one time outstanding.