Common use of Distributions on Capital Stock Clause in Contracts

Distributions on Capital Stock. So long as the Borrower shall have any obligation under this Note, the Borrower shall not without the Holder’s written consent (a) pay, declare or set apart for such payment, any dividend or other distribution (whether in cash, property or other securities) on shares of capital stock other than dividends on shares of Common Stock solely in the form of additional shares of Common Stock or (b) directly or indirectly or through any subsidiary make any other payment or distribution in respect of its capital stock except for distributions pursuant to any shareholders’ rights plan which is approved by a majority of the Borrower’s disinterested directors; provided that, notwithstanding the foregoing Borrower may issue securities pursuant to the conversion of (i) any convertible notes outstanding on the date hereof, (ii) any convertible notes which may become outstanding in the next sixty (60) days and (iii) this Note.