Common use of Excluded Entities Clause in Contracts

Excluded Entities. (a) Permit the Loan Parties and their Subsidiaries to make any new or additional Investments in, or transfers of assets to (other than Restricted Payments permitted by Section 8.05), any Excluded Entity unless at the time of such new or additional Investment, or such transfer of assets, and immediately after giving effect thereto, no Default or Event of Default exists. For the avoidance of doubt, Investments in any Excluded Entity are permitted to remain outstanding during a Default or Event of Default so long as such Investment was made prior to the Closing Date or in the absence of any Default or Event of Default. (b) During the existence of a Default or an Event of Default, permit any Indebtedness of an Excluded Entity to be recourse to any Loan Party or any Subsidiary thereof in any manner, including by way of any Guarantee by any Loan Party or Subsidiary of any Indebtedness of an Excluded Entity.