Common use of Dividends and Other Cash Distributions Clause in Contracts

Dividends and Other Cash Distributions. The Borrower will not, in any one calendar 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) (a) Borrower meets the Minimum Net Worth Test and (b) the payment of such dividend, the making of such distribution, or the purchase, redemption or retirement of such stock, individually or in the aggregate, does not exceed twenty-five percent (25%) of the prior fiscal year-end Cash Margins in any one calendar year. In no event may the Borrower make such a distribution or payment when there is unpaid any due installment of principal and/or interest on the Note or if the Borrower is otherwise in material default of any provision of this Agreement or would be in material default hereunder as a result of such distribution or payment.

Dividends and Other Cash Distributions. The Borrower will Will not, in any one calendar 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 increase the management fees or if already paying a fee factor above the management feefee factor contained in the Mebcom Communications Financial Model dated November 25, pay an increase in management fees 1997, unless with respect to any of the foregoing (after giving effect to such transaction) (a) Borrower meets the Minimum Net Worth Test Test, and (b) the payment of such dividend, the making of such distribution, or the purchase, redemption or retirement of such stock, individually or in the aggregate, does not exceed twenty-five fifty percent (2550%) of the prior fiscal year-end Cash Margins in any one calendar year. In no event may the Borrower make any such a distribution or payment when there is unpaid any due installment of principal and/or interest on the Note or if the Borrower is otherwise in material default of any provision of this Agreement or would be in material default hereunder as a result of such distribution or payment.