FairPoint Communications 2004 Annual Report Download - page 268

(a) the Borrower or any Subsidiary may invest in cash and Cash Equivalents;
(b) the Borrower and any Subsidiary may acquire and hold receivables owing to them, if created or acquired in the ordinary course
of business and payable or dischargeable in accordance with customary trade terms and/or reasonable extensions thereof;
(c) the Borrower and its Qualified Subsidiaries may make intercompany loans and advances between and among one another
(collectively, “Intercompany Loans”), provided that (i) each such Intercompany Loan shall be evidenced by an Intercompany Note which, if held by
a Pledge Party, shall be pledged to the Collateral Agent as, and to the extent required by, the Pledge Agreement, (ii) each Intercompany Loan made
pursuant to this clause (c) shall be subject to subordination as, and to the extent required by, the Intercompany Subordination Agreement (giving
effect to exceptions required by applicable law or regulation as contemplated thereby) and (iii) any Intercompany Loan made pursuant to this clause
(c) shall cease to be permitted hereunder if the obligor or obligee thereunder ceases to be the Borrower or a Qualified Subsidiary as contemplated
above;
(d) loans and advances to officers, directors and employees in the ordinary course of business (x) for relocation purposes and/or the
purchase from the Borrower of the capital stock (or options or warrants relating thereto) of the Borrower and (y) otherwise in an aggregate principal
amount not to exceed $1.0 million at any time outstanding shall be permitted;
(e) the Borrower and each Subsidiary may acquire and own investments (including debt obligations) received in connection with the
bankruptcy or reorganization of suppliers and customers and in settlement of delinquent obligations of, and other disputes with, customers and
suppliers arising in the ordinary course of business;
(f) Interest Rate Agreements entered in compliance with Section 7.04(d) shall be permitted;
(g) Investments in existence on the Effective Date and listed on Annex VII (excluding Intercompany Debt), without giving effect to any
additions thereto or replacements thereof, shall be permitted;
(h) the Borrower and each Qualified Subsidiary may make capital contributions (including by way of the capitalization of an
Intercompany Loan) (i) to any of their respective Subsidiaries, to the extent a Subsidiary Guarantor and (ii) to any Qualified Subsidiary that is not a
Subsidiary Guarantor, so long as, in the case of this subclause (ii), (x) no Default or Event of Default has occurred and is continuing at the time of
the respective contribution and (y) in the case of any contribution to a Qualified Subsidiary of the type referred to in clause (iii) of the definition
thereof, the Pro Forma EBITDA Test is satisfied;
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