Common use of ITS Company Restrictions Clause in Contracts

ITS Company Restrictions. Borrower will not at any time permit (i) Cherokee Netherlands I B.V. to engage in any line of business or conduct any business operations other than acting as a single purpose holding company of the stock of Cherokee Netherlands II B.V., nor permit Cherokee Netherlands I B.V. to have any Indebtedness or any creditor other than Indebtedness owing to the Borrower in accordance with the terms hereof, (ii) Cherokee Netherlands II B.V. to engage in any line of business or conduct any business operations other than acting as a single purpose holding company of the stock of Cherokee Belgium I, nor permit Cherokee Netherlands II B.V. to have any Indebtedness or any creditor other than Indebtedness owing to the Cherokee Netherlands I B.V. in accordance with the terms hereof, (iii) Cherokee Belgium I to engage in any line of business or conduct any business operations other than acting as a single purpose holding company of the stock of Cherokee Europe SCA and/or Cherokee Europe SPRL, nor permit Cherokee Belgium I to have any Indebtedness or any creditor other than Indebtedness owing to Cherokee Netherlands II B.V. in accordance with the terms hereof. The Borrower will not permit the ITS Companies to form or permit to exist any Subsidiary other than those in existence on June 15, 2000 and as disclosed to the Banks prior to such date. The Borrower will at all times maintain ownership of 100% of the capital stock of Cherokee Netherlands I B.V.

ITS Company Restrictions. Borrower will not at any time permit (i) Cherokee Netherlands I B.V. to engage in any line of business or conduct any business operations other than acting as a single purpose holding company of the stock of Cherokee Netherlands II B.V., nor permit Cherokee Netherlands I B.V. to have any Indebtedness or any creditor other than Indebtedness owing to the Borrower in accordance with the terms hereofhereof which is subject to the Tri-Party Agreement Re: Payment Procedures, (ii) Cherokee Netherlands II B.V. to engage in any line of business or conduct any business operations other than acting as a single purpose holding company of the stock of Cherokee Belgium I, nor permit Cherokee Netherlands II B.V. to have any Indebtedness or any creditor other than Indebtedness owing to the Cherokee Netherlands I B.V. in accordance with the terms hereof, (iii) Cherokee Belgium I to engage in any line of business or conduct any business operations other than acting as a single purpose holding company of the stock of Cherokee Europe SCA and/or Cherokee Europe SPRL, nor permit Cherokee Belgium I to have any Indebtedness or any creditor other than Indebtedness owing to Cherokee Netherlands II B.V. in accordance with the terms hereof. The Borrower will not permit the ITS Companies to form or permit to exist any Subsidiary other than those in existence on June 15, 2000 and as disclosed to the Banks prior to such date. The Borrower will at all times maintain ownership of 100% of the capital stock of Cherokee Netherlands I B.V.

ITS Company Restrictions. Borrower will not at any time permit (i) Cherokee Netherlands I B.V. to engage in any line of business or conduct any business operations other than acting as a single purpose holding company of the stock of Cherokee Netherlands II B.V., nor permit Cherokee Netherlands I B.V. to have any Indebtedness or any creditor other than Indebtedness owing to the Borrower in accordance with the terms hereofhereof which is subject to the Tri-Party Agreement Re: Payment Procedures, (ii) Cherokee Netherlands II B.V. to engage in any line of business or conduct any business operations other than acting as a single purpose holding company of the stock of Cherokee Belgium I, nor permit Cherokee Netherlands II B.V. to have any Indebtedness or any creditor other than Indebtedness owing to the Cherokee Netherlands I B.V. in accordance with the terms hereof, (iii) Cherokee Belgium I to engage in any line of business or conduct any business operations other than acting as a single purpose holding company of the stock of Cherokee Europe SCA Industrial and Telecommunications Systems S.C.A. and/or Cherokee Europe Industrial and Telecommunications Systems SPRL, nor permit Cherokee Belgium I to have any Indebtedness or any creditor other than Indebtedness owing to Cherokee Netherlands II B.V. in accordance with the terms hereof. The Borrower will not permit the ITS Companies to form or permit to exist any Subsidiary other than those in existence on June 15, 2000 and as disclosed to the Banks prior to such date. The Borrower will at all times maintain ownership of 100% of the capital stock of Cherokee Netherlands I B.V. (i) Subsection 3.1(B) is deleted in its entirety and the following is substituted in lieu thereof:

ITS Company Restrictions. Borrower will not at any time permit (i) Cherokee Netherlands I B.V. to engage in any line of business or conduct any business operations other than acting as a single purpose holding company of the stock of Cherokee Netherlands II B.V., nor permit Cherokee Netherlands I B.V. to have any Indebtedness or any creditor other than Indebtedness owing to the Borrower in accordance with the terms hereofhereof which is subject to the Tri-Party Agreement Re: Payment Procedures, and (ii) Cherokee Netherlands II B.V. to engage in any line of business or conduct any business operations other than acting as a single purpose holding company of the stock of Cherokee Belgium I, nor permit Cherokee Netherlands II B.V. to have any Indebtedness or any creditor other than Indebtedness owing to the Cherokee Netherlands I B.V. in accordance with the terms hereof, (iii) Cherokee Belgium I to engage in any line of business or conduct any business operations other than acting as a single purpose holding company of the stock of Cherokee Europe SCA and/or Cherokee Europe SPRL, nor permit Cherokee Belgium I Netherlands II B.V. to have any Indebtedness or any creditor other than Indebtedness owing to the Cherokee Netherlands II I B.V. in accordance with the terms hereof. The Borrower will not permit the ITS Companies to form or permit to exist any Subsidiary other than those in existence on June 15, 2000 the Restatement Effective Date and as disclosed to the Banks prior to such date. The Subject to the provisions of the immediately following sentence, the Borrower will at all times maintain ownership of 100% of the capital stock of Cherokee Netherlands I B.V.B.V. Notwithstanding anything in this Agreement to the contrary, Borrower shall be permitted to dissolve any of Cherokee Netherlands I B.V. or Cherokee Netherlands II B.V. or otherwise engage in a corporate restructuring involving such Persons for purposes of achieving tax efficiencies or otherwise simplifying the organizational structure of the ITS Companies, so long as (A) Agent receives not less than ten (10) Business Day’s prior written of such restructuring and consents thereto in writing (which consent shall not be unreasonably withheld, it being understood that a failure to satisfy the following condition “B” shall not be deemed unreasonable grounds for such objection), (B) and Agent’s Collateral (and the Liens with respect thereto) is not jeopardized, impaired, compromised or otherwise diminished in any material manner.