{"id":41095,"date":"2015-09-17T11:25:58","date_gmt":"2015-09-17T16:25:58","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-legal\/contracts\/uncategorized\/letter-of-negative-pledge-hongkong-and-shanghai-banking-corp.html"},"modified":"2015-09-17T11:25:58","modified_gmt":"2015-09-17T16:25:58","slug":"letter-of-negative-pledge-hongkong-and-shanghai-banking-corp","status":"publish","type":"corporate_contracts","link":"https:\/\/corporate.findlaw.com\/contracts\/finance\/letter-of-negative-pledge-hongkong-and-shanghai-banking-corp.html","title":{"rendered":"Letter of Negative Pledge &#8211; Hongkong and Shanghai Banking Corp. Ltd. and AnnTaylor Global Sourcing Inc."},"content":{"rendered":"<pre>                                      LETTER OF NEGATIVE PLEDGE\n\nThe Hongkong and Shanghai Banking Corporation Limited\n140 Broadway\nNew York, NY 10005-1196\n\nRe:  Amended    and   Restated    Credit\n     Agreement dated as of September 20,\n     1996    with    ANNTAYLOR    GLOBAL\n     SOURCING, INC. (formerly  known  as\n     CAT US, Inc.) (the 'Company') up to\n                         -------\n     an  aggregate amount of $40,000,000\n                   ---------------------\n     (the 'Credit Agreement')  \n     ------------------------\n\nDear Sir\/Madam:\n\nIn  consideration  of  your agreeing to  grant,  continue  and\/or\nfurther    extend   credit   facilities   and   other   financial\naccommodation to the Company, the Company hereby irrevocably  and\nunconditionally covenants and undertakes with you as follows:\n\n1.     The Company shall not:\n       \n       a.   Create or attempt to create, assume or permit  to\n            subsist   any  mortgage,  security  interest,   charge,\n            pledge, lien, or other encumbrance upon, or permit  any\n            lien,  security  interest or other encumbrance  (except\n            for  statutory or constitutional liens arising  in  the\n            ordinary  course  of  business  with  respect  to   any\n            obligation  or indebtedness which is not  yet  due  and\n            payable)  to arise on or affect, the whole or any  part\n            of  its  respective undertaking, property,  assets  and\n            rights,  other than pledges created over  goods  and\/or\n            services  acquired  pursuant  to  documentary   credits\n            opened  in  the  ordinary course of  business  for  the\n            purpose  of  financing the acquisition or provision  of\n            such goods and services; or\n        \n        \n       b.   Transfer, sell or otherwise dispose of or attempt\n            or agree to transfer, sell or dispose of the whole  or\n            any  part  of  its  respective  undertaking,  property,\n            assets  and rights, except (i) by way of sale  at  full\n            value  in the usual and ordinary course of business  as\n            now  conducted and for the purpose of carrying  on  the\n            relevant  business, (ii) obsolete or worn-out property,\n            tools  or  equipment no longer used or  useful  in  its\n            business or (iii) the sale, in a single transaction, of\n            the  CAD-CAM computer equipment described in Exhibit  F\n            to  the  Stock and Asset Purchase Agreement (as defined\n            in  the Credit Agreement), the value of which equipment\n            shall not exceed $10,000.00 in the aggregate; or\n       \n       \n       c.   Grant, issue or extend any guarantee or indemnity\n            or enter into any other form of contractual undertaking\n            or  arrangement  of similar effect in  respect  of  any\n\n===========================================================================\n            \n            \n            \n            indebtedness  or obligations, actual or contingent,  of\n            any  other  Person whatsoever except in the  usual  and\n            ordinary  course  of business as now conducted  by  the\n            Company and for the purpose of the carrying on  by  the\n            Company of its business.\n\n2.     The undertakings set out herein shall not be deemed breached\n       by  reason  only of the existence of any mortgage,  security\n       interest,  charge,  pledge, lien  or  other  encumbrance  or\n       guarantee  or indemnity which has been created,  assumed  or\n       which  subsists  or  has arisen prior to  the  date  hereof,\n       \n       provided, that any further or additional encumbrance over or\n       affecting  the  relevant asset, or increase  in  the  amount\n       secured by or other variation of the relevant encumbrance or\n       \n       guarantee  or indemnity of similar effect, shall  constitute\n       such a breach.\n\n3.     The   Company  further  authorizes  you,  in  your  absolute\n       \n       discretion, at any time and from time to time to notify  any\n       \n       creditors  of  the Company of the terms of the  undertakings\n       set  out  herein  in  the event that you receive  notice  of\n       \n       proposals which, if implemented, would or might be in breach\n       \n       of such undertakings.\n\nYours faithfully,\n\nANNTAYLOR GLOBAL SOURCING, INC.\n\n\nBy \/s\/                                        \n  _________________________\nName:\nTitle:\n\nDate:  As of September 20, 1996\n\n\n\n<\/pre>\n","protected":false},"template":"","meta":{"_acf_changed":false,"_stopmodifiedupdate":true,"_modified_date":"","_cloudinary_featured_overwrite":false},"corporate_contracts_companies":[6710],"corporate_contracts_industries":[9494],"corporate_contracts_types":[9561,9560],"class_list":["post-41095","corporate_contracts","type-corporate_contracts","status-publish","hentry","corporate_contracts_companies-anntaylor-stores-corp","corporate_contracts_industries-retail__clothing","corporate_contracts_types-finance__credit","corporate_contracts_types-finance"],"acf":[],"_links":{"self":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts\/41095","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts"}],"about":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/types\/corporate_contracts"}],"wp:attachment":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/media?parent=41095"}],"wp:term":[{"taxonomy":"corporate_contracts_companies","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_companies?post=41095"},{"taxonomy":"corporate_contracts_industries","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_industries?post=41095"},{"taxonomy":"corporate_contracts_types","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_types?post=41095"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}