Common use of Additional Prohibitions Clause in Contracts

Additional Prohibitions. Borrower shall not, without the prior written consent of Lender: (a) increase the aggregate existing base remuneration of the officers and directors of Borrower listed on Schedule 6.16 (a) by an amount in excess of five percent (5%) per annum; (b) acquire, or enter into any contracts contemplating the acquisition of a majority of the assets and Properties or ownership interest of any Person or a merger with any Person, excluding any such acquisitions that do not exceed $100,000.00 in the aggregate per annum; (c) except for any renewal of Borrower's existing real property leases or a comparable real property lease at fair market value, enter into any material contract, lease or agreement (including without limitation, any financing, or operating lease, or any lease of real property), providing for the payment by Borrower, in each case, of amounts in excess of $100,000.00 during any year; (d) cause or make capital expenditures (excluding expenditures in subparagraph (b) above) greater than $200,000.00 in aggregate during any calendar year; (e) change or alter the locations or nature of any of its business (provided that Borrower may open new facilities without first receiving the consent of Lender thereto); or (f) alter any of the terms and conditions of the Senior Debt pertaining to maturity dates, interest rates, or collateral, or increase the maximum principal amount available to Borrower under the Senior Debt; or (g) alter or amend any of Borrower's Organizational Documents; (h) release any Person from a noncompetition agreement in favor of Borrower or fail to take reasonable action to prevent or stop any Person from engaging in conduct that violates a noncompetition agreement in favor of Borrower. (i) file in an office of public records a UCC-3 form or other document releasing or terminating a security interest in favor of Lender covering any Collateral unless and until all obligations of Borrower contained herein and in the Subject Documents have been satisfied; or (j) file in an office of public records a UCC-3 or other document amending a UCC Financing Statement.

Additional Prohibitions. Borrower shall not, without the prior written consent of Lender: (a) increase the aggregate existing base remuneration of the officers and directors of Borrower listed key management as described on Schedule 6.16 (a6.16(a) by an amount in excess of five percent (5%) per annum; (b) acquire, or enter into any contracts contemplating the acquisition of a majority of the assets and Properties or ownership interest of any Person or a merger with any Person, excluding any such acquisitions that do not exceed $100,000.00 500,000 in the aggregate per annum; (c) except for any renewal of Borrower's existing real property leases or a comparable real property lease at fair market value, and any renewal or replacement of the existing Hedging Contracts in compliance with Section 6.19 below, enter into any material contract, lease or agreement (including without limitation, any financing, or operating lease, or any lease of real property), providing for the payment by Borrower, in each case, of amounts in excess of $100,000.00 100,000 during any year; (d) cause or make capital expenditures (excluding expenditures in subparagraph (b) above, the 2004 and 2005 expenditures for the de-bottlenecking project of TOCC, and the capital expenditures in connection with the Penreco PA) greater than $200,000.00 500,000 in the aggregate during any calendar year; (e) change or alter the locations or nature of any of its business (provided that Borrower may open new facilities without first receiving the consent of Lender thereto)business; or (f) materially alter any of the terms and conditions of the Senior Debt pertaining to maturity dates, interest rates, or collateralof the Penreco PA, or increase the maximum principal amount indebtedness available to Borrower under the Senior DebtLender Documents, except that Borrower is permitted to increase the amount of the Senior Debt to Amergy to $9,500,000.00; or (g) alter or amend any of Borrower's Organizational Documents, except that SHR shall have the right to change its name; (h) release any Person from a noncompetition agreement in favor of Borrower or fail to take reasonable action to prevent or stop any Person from engaging in conduct that violates a noncompetition agreement in favor of Borrower.; (i) file in an office of public records a UCC-3 form or other document releasing or terminating a security interest in favor of Lender covering any Collateral unless and until all obligations of Borrower contained herein and in the Subject Documents have been satisfied; or (j) file in an office of public records a UCC-3 or other document amending a UCC Financing Statement.