Common use of Dividends, Redemptions and Other Payments Clause in Contracts

Dividends, Redemptions and Other Payments. Declare or pay, or set apart any funds for the payment of, any dividends on any shares of capital stock of Borrower or DGC (except as hereinafter set out), or apply any funds, properties, or assets of Borrower or DGC to or set apart any funds properties or assets for, the purchase, redemption or other retirement of or make any other distribution (whether by reduction of capital or otherwise) in respect of, any shares of capital stock of Borrower or DGC (common or preferred), provided, however, that DGC shall be permitted to redeem shares of shareholders to the extent that the expenditures required by such redemption(s) do not result in a violation of any of the financial covenants set forth in this Loan Agreement or otherwise cause the occurrence of a default hereunder. Notwithstanding the foregoing, Borrower and DGC shall be permitted to pay dividends to the holders of the preferred stock held by SSM Venture Partners, L.P., Noro-Mosely Partners II, L.P., David F. Bellet and Eldon Capital, providex xxxx no Event of Default xxx xxx xxxxx which xxxx notice, lapse of time or both may become an Event of Default hereunder shall have occurred and be continuing, and that such payment will not result in an Event of Default hereunder.

Dividends, Redemptions and Other Payments. Declare or pay, or set apart any funds for the payment of, any dividends on any shares of capital stock of Borrower DGC or DGC DGFS (except as hereinafter set out), or apply any funds, properties, or assets of Borrower DGC or DGC DGFS to or set apart any funds properties or assets for, the purchase, redemption or other retirement of or make any other distribution (whether by reduction of capital or otherwise) in respect of, any shares of capital stock of Borrower DGC or DGC DGFS (common or preferred), provided, however, that DGC shall be permitted to redeem shares of shareholders to the extent that the expenditures required by such redemption(s) do not result in a violation of any of the financial covenants set forth in this Loan Agreement or otherwise cause the occurrence of a default hereunder. Notwithstanding the foregoing, Borrower DGC and DGC DGFS shall be permitted to pay dividends to the holders of the preferred stock held by SSM Venture Partners, L.P., Noro-Mosely Partners II, L.P., David F. Bellet and Eldon Capital, providex xxxx no Event of Default xxx xxx xxxxx which xxxx notice, lapse of time or both may become an Event of Default hereunder shall have occurred and be continuing, and that such payment will not result in an Event of Default hereunder.