Common use of Dividends and Distribution Clause in Contracts

Dividends and Distribution. PMC will not declare or pay any dividends or other distributions with respect to, purchase, redeem or otherwise acquire for value any of its outstanding stock now or hereafter outstanding, or return any capital of its stockholders, where such payment, purchase, redemption or acquisition would have a Material Adverse Effect, without prior notice to and the prior written consent of Lender, which consent will not be unreasonably withheld; provided, however, that so long as no Event of Default has occurred and is continuing, no such consent shall be required for (i) any stock dividend, or (ii) any repurchase of PMC's stock by PMC that does not use the proceeds of a Loan to pay the purchase price therefor. After an Event of Default has occurred and while it is continuing, Borrower shall make no such declarations, payments, purchases, redemptions or acquisitions for value.