Common use of Advances to Subsidiaries Clause in Contracts

Advances to Subsidiaries. All advances to Restricted Subsidiaries made by the Issuer after the Issue Date shall be evidenced by intercompany notes in favor of the Issuer. Such intercompany notes shall be pledged pursuant to the Security Documents as Collateral to secure the Notes. Each intercompany note shall be payable upon demand and shall bear interest at the same rate as the Notes and will be subordinated in right of payment to all existing Senior Debt of the Restricted Subsidiary to which the loan is made. “Senior Debt” of Restricted Subsidiaries for the purposes of the intercompany notes will be defined as all Indebtedness of the Restricted Subsidiaries that is not specifically by its terms made pari passu with or junior to the intercompany notes. The Issuer will not permit any Restricted Subsidiary in respect of which the Issuer is a creditor by virtue of an intercompany note to incur any Indebtedness that is subordinate or junior in right of payment to any Senior Debt of such Restricted Subsidiary and senior in any respect in right of payment to any intercompany note.