Common use of Limitation on Advances and Investments Clause in Contracts

Limitation on Advances and Investments. Neither the Borrower nor the Guarantors will, or will permit any of their respective Subsidiaries to, make or permit to exist, any loans, advances or capital contributions to, or make any investment in, or purchase or commit to purchase any stock or other securities or evidences of indebtedness of or interests in any other Person which is not, or which will not become in connection with such transaction, a Subsidiary (“Investments”), except: (a) Liquid Investments; (b) trade and customer accounts receivable which are for goods furnished or services rendered in the ordinary course of business and are payable in accordance with customary trade terms; (c) Investments not otherwise permitted by this Section 7.07 in any Person or Persons in a maximum aggregate amount not to exceed $100,000,000 in any fiscal year; (d) Investments not otherwise permitted by this Section 7.07 in any Person or Persons so long as (1) after giving effect to the Investments (and any related Borrowing or other incurrence of Debt), the Debt to Cash Flow Ratio is equal to or less than 3.50 to 1.00 on a pro forma basis as of the last fiscal quarter for which financial statements have been delivered to the Administrative Agent in accordance with the terms hereof, and (2) immediately before and after giving effect thereof, no Default or event which, with the giving of notice, the lapse of time or both, would constitute a Default shall have occurred and be continuing or would result therefrom; (e) for the avoidance of doubt, acquisitions of restaurants from Chili’s franchisees; and (f) Investments existing on the Effective Date and described on Schedule VI.

Limitation on Advances and Investments. Neither the Borrower nor the Guarantors will, or will permit any of their respective Subsidiaries to, make or permit to exist, any loans, advances or capital contributions to, or make any investment in, or purchase or commit to purchase any stock or other securities or evidences of indebtedness of or interests in any other Person which is not, or which will not become in connection with such transaction, a Subsidiary (“Investments”), except: (a) Liquid Investments; (b) trade and customer accounts receivable which are for goods furnished or services rendered in the ordinary course of business and are payable in accordance with customary trade terms; (c) at any time after the termination of the Limitation Period, Investments not otherwise permitted by this Section 7.07 in any Person or Persons Persons, together with Restricted Payments permitted under Section 7.10(b), in a maximum aggregate amount not to exceed of $100,000,000 in any fiscal year; (d) Investments not otherwise permitted by 50,000,000 during the term of this Section 7.07 in any Person or Persons Agreement, so long as (1) after giving effect to the Investments (and any related Borrowing or other incurrence of Debt), the Debt to Cash Flow Ratio is equal to or less than 3.50 4.50 to 1.00 on a pro forma basis as of the last fiscal quarter for which financial statements have been delivered to the Administrative Agent in accordance with the terms hereof, and (2) immediately before and after giving effect thereof, no Default or event which, with the giving of notice, the lapse of time or both, would constitute a Default shall have occurred and be continuing or would result therefrom; (e) for the avoidance of doubt, acquisitions of restaurants from Chili’s franchisees; and (fd) Investments existing on the Second Amendment Effective Date and described on Schedule VI.

Limitation on Advances and Investments. Neither the Borrower nor the Guarantors will, or will permit any of their respective Subsidiaries to, make or permit to exist, any loans, advances or capital contributions to, or make any investment in, or purchase or commit to purchase any stock or other securities or evidences of indebtedness of or interests in any other Person which is not, or which will not become in connection with such transaction, a Subsidiary (“Investments”), except: (a) Liquid Investments; (b) trade and customer accounts receivable which are for goods furnished or services rendered in the ordinary course of business and are payable in accordance with customary trade terms; (c) at any time after the termination of the Limitation Period, Investments not otherwise permitted by this Section 7.07 in any Person or Persons Persons, together with Restricted Payments permitted under Section 7.10(c), in a maximum aggregate amount not to exceed of $100,000,000 in any fiscal year; (d) Investments not otherwise permitted by 50,000,000 during the term of this Section 7.07 in any Person or Persons Agreement, so long as (1) after giving effect to the Investments (and any related Borrowing or other incurrence of Debt), the Debt to Cash Flow Ratio is equal to or less than 3.50 4.50 to 1.00 on a pro forma basis as of the last fiscal quarter for which financial statements have been delivered to the Administrative Agent in accordance with the terms hereof, and (2) immediately before and after giving effect thereof, no Default or event which, with the giving of notice, the lapse of time or both, would constitute a Default shall have occurred and be continuing or would result therefrom;; and 128384814_9 (e) for the avoidance of doubt, acquisitions of restaurants from Chili’s franchisees; and (fd) Investments existing on the Second Amendment Effective Date and described on Schedule VI.