Common use of Restriction on Debt Clause in Contracts

Restriction on Debt. Borrower shall not create, incur, assume, or suffer to exist any debt except as permitted by this Section 6.14. Debt means (i) indebtedness or liability for borrowed money; (ii) obligations evidenced by bonds, debentures, notes, or other similar instruments; (iii) obligations for the deferred purchase price of property or services (including trade obligations); (iv) obligations as lessee under capital leases; (v) current liabilities in respect of unfunded vested benefits under Plans covered by ERISA; (vi) obligations under letters of credit; (vii) obligations under acceptance facilities; (viii) all guarantees, endorsements (other than for collection or deposit in the ordinary course of business), and other contingent obligations to purchase, to provide funds for payment, to supply funds to invest in any person or entity, or otherwise to assure a creditor against loss; and (ix) obligations secured by any mortgage, deed of trust, lien, pledge, or security interest or other charge or encumbrance on property, whether or not the obligations have been assumed. Permitted exceptions to this covenant are: (i) debt contemplated by this Loan Agreement; and (ii) accounts payable to trade creditors for goods or services which are not aged more than ninety (90) days from the billing date and current operating liabilities (other than for borrowed money) which are not more than ninety (90) days past due, in each case incurred in the ordinary course of business, as presently conducted, and paid within the specified time, unless contested in good faith and by appropriate proceedings.

Restriction on Debt. Borrower shall not create, incur, assume, or suffer to exist and will not permit the Subsidiaries to create, incur, assume, or suffer to exist any debt except as permitted by this Section 6.146.16. Debt means (i) indebtedness or liability for borrowed money; (ii) obligations evidenced by bonds, debentures, notes, or other similar instruments; (iii) obligations for the deferred purchase price of property or services (including trade obligations); (iv) obligations as lessee under capital leases; (v) current liabilities in respect of unfunded vested benefits under Plans covered by ERISA; (vi) obligations under letters of credit; (vii) obligations under acceptance facilities; (viii) all guarantees, endorsements (other than for collection or deposit in the ordinary course of business), and other contingent obligations to purchase, to provide funds for payment, to supply funds to invest in any person or entity, or otherwise to assure a creditor against loss; and (ix) obligations secured by any mortgage, deed of trust, lien, pledge, or security interest or other charge or encumbrance on property, whether or not the obligations have been assumed. Permitted exceptions to this covenant are: (i) debt contemplated by this Loan Agreement; and (ii) accounts payable to trade creditors for goods or services which are not aged more than ninety (90) days from the billing date and current operating liabilities (other than for borrowed money) which are not more than ninety (90) days past due, in each case incurred in the ordinary course of business, as presently conducted, and paid within the specified time, unless contested in good faith and by appropriate proceedings; (iii) debt of Borrower, excluding the Loan, not to exceed an aggregate, outstanding principal amount of one million dollars ($1,000,000.00); (iv) debt of Acquisition, excluding the Qualified Debt of Acquisition, not to exceed an aggregate, outstanding principal amount of thirteen million dollars ($13,000,000.00), (v) the Qualified Debt of Acquisition and (vi) Borrower's guarantees of Acquisition's obligations to The Development Bank of Singapore Ltd. and ATD, incurred in conjunction with the Asset Purchase Agreement; provided, however, that such guarantees must be in a form acceptable to Lender, and that rights of The Development Bank of Singapore Ltd. and ATD under the guarantees are subordinated to the rights of Lender under the Loan Documents.

Restriction on Debt. Borrower shall not create, incur, assume, or suffer to exist any debt except as permitted by this Section 6.146.16. Debt means (i) indebtedness or liability for borrowed money; (ii) obligations evidenced by bonds, debentures, notes, or other similar instruments; (iii) obligations for the deferred purchase price of property or services (including trade obligations); (iv) obligations as lessee under capital leases; (v) current liabilities in respect of unfunded vested benefits under Plans covered by ERISA; (vi) obligations under letters of credit; (vii) obligations under acceptance facilities; (viii) all guarantees, endorsements (other than for collection or deposit in the ordinary course of business), and other contingent obligations to purchase, to provide funds for payment, to supply funds to invest in any person or entity, or otherwise to assure a creditor against loss; and (ix) obligations secured by any mortgage, deed of trust, lien, pledge, or security interest or other charge or encumbrance on property, whether or not the obligations have been assumed. Permitted exceptions to this covenant are: (i) debt contemplated by this Loan Agreement; and (ii) accounts payable to trade creditors for goods or services which are not aged more than ninety (90) days from the billing date and current operating liabilities (other than for borrowed money) which are not more than ninety (90) days past due, in each case incurred in the ordinary course of business, as presently conducted, and paid within the specified time, unless contested in good faith and by appropriate proceedings; (iii) debt incurred under the Equipment Line (iv) debt due not to exceed an outstanding principal amount of two hundred thousand dollars ($200,000.00) per debt and not to exceed an aggregate, outstanding principal amount of five hundred thousand dollars ($500,000.00); (v) debt existing on the Effective Date and set forth on Schedule 6.16 hereto; (vi) debt secured by liens described in clause (f) of the definition of Permitted Encumbrances in the Security Agreement; (vii) extensions, refinancings, modifications, amendments and restatements of any items of the foregoing clauses, provided that the principal amount thereof is not increased and the terms thereof are not modified or impose more burdensome terms upon Borrower; and (viii) subordinated debt, which is approved in advance in writing by Lender.

Restriction on Debt. Borrower shall not create, incur, assume, or suffer to exist any debt except as permitted by this Section 6.146.16. Debt means (i) indebtedness or liability for borrowed money; (ii) obligations evidenced by bonds, debentures, notes, or other similar instruments; (iii) obligations for the deferred purchase price of property or services (including trade obligations); (iv) obligations as lessee under capital leases; (v) current liabilities in respect of unfunded vested benefits under Plans covered by ERISA; (vi) obligations under letters of credit; (vii) obligations under acceptance facilities; (viii) all guarantees, endorsements (other than for collection or deposit in the ordinary course of business), and other contingent obligations to purchase, to provide funds for payment, to supply funds to invest in any person or entity, or otherwise to assure a creditor against loss; and (ix) obligations secured by any mortgage, deed of trust, lien, pledge, or security interest or other charge or encumbrance on property, whether or not the obligations have been assumed. Permitted exceptions to this covenant are: (i) debt contemplated by this Loan Agreement; and (ii) accounts payable to trade creditors for goods or services which are not aged more than ninety (90) days from the billing date and current operating liabilities (other than for borrowed money) which are not more than ninety (90) days past due, in each case incurred in the ordinary course of business, as presently conducted, and paid within the specified time, unless contested in good faith and by appropriate proceedings, (iii) Subordinated Debt; (iv) debt existing on the Effective Date and set forth on Schedule 6.16 hereof; (v) debt secured by liens described in clause (f) of the definition of Permitted Encumbrances; (vi) other unsecured debt not exceeding one hundred thousand dollars ($100,000.00) in the aggregate outstanding at any time; provided, however, that, at the time such debt is incurred, no Event of Default has occurred, is continuing or would result from such debt; and (vii) extensions, refinancings, modifications, amendments and restatements of any items of the foregoing clauses, provided that the principal amount thereof is not increased and the terms thereof are not modified or impose more burdensome terms upon Borrower.

Restriction on Debt. Borrower shall not create, incur, assume, or suffer to exist any debt except as permitted by this Section 6.14. Debt means (i) indebtedness or liability for borrowed money; (ii) obligations evidenced by bonds, debentures, notes, or other similar instruments; (iii) obligations for the deferred purchase price of property or services (including trade obligations); (iv) obligations as lessee under capital leases; (v) current liabilities in respect of unfunded vested benefits under Plans covered by ERISA; (vi) obligations under letters of credit; (vii) obligations under acceptance facilities; (viii) all guarantees, endorsements (other than for collection or deposit in the ordinary course of business), and other contingent obligations to purchase, to provide funds for payment, to supply funds to invest in any person or entity, or otherwise to assure a creditor against loss; and (ix) obligations secured by any mortgage, deed of trust, lien, pledge, or security interest or other charge or encumbrance on property, whether or not the obligations have been assumed7.16. Permitted exceptions to this covenant are: (i) debt Debt contemplated by this Loan Agreement and the RLOC Loan Agreement; and (ii) accounts payable to trade creditors for goods or services which are not aged more than ninety (90) days from the billing date and current operating liabilities (other than for borrowed money) which are not more than ninety (90) days past due, in each case incurred in the ordinary course of business, as presently conducted, and paid within the specified time, unless contested in good faith and by appropriate proceedings; (iii) Debt incurred under the Equipment Line; (iv) Debt due not to exceed an outstanding principal amount of two hundred thousand dollars ($200,000.00) per debt and not to exceed an aggregate, outstanding principal amount of five hundred thousand dollars ($500,000.00); (v) Debt existing on the Effective Date and set forth on Schedule 7.16 hereto; (vi) Debt secured by liens described in clause (f) of the definition of Permitted Encumbrances in the Security Agreement; (vii) extensions, refinancings, modifications, amendments and restatements of any items of the foregoing clauses, provided that the principal amount thereof is not increased and the terms thereof are not modified or impose more burdensome terms upon Borrower; (viii) subordinated Debt, which is approved in advance in writing by Lender; and (ix) recourse of Guarantor against Borrower pursuant to the Security Transfer Agreement.