Common use of Dividends and Other Cash Distributions Clause in Contracts

Dividends and Other Cash Distributions. The Guarantor will not, in any one fiscal year, without the prior approval in writing of the Lender (i) declare or pay any dividends or make any other distribution to its stockholders with respect to its capital stock; (ii) purchase or redeem or retire any of its capital stock; or (iii) pay any management fees or if already paying a management fee, pay an increase in management fees unless with respect to any of the foregoing (after giving effect to such transaction) Guarantor's Net Worth shall exceed twenty five percent (25%); provided, however, without Lender's prior written consent, Guarantor may make dividend payments or distributions equal to its prevailing consolidated net income so long as the total amount of dividends paid by Guarantor in any given fiscal year does not exceed $1,914,779.