Limitations on Restricted Payments. The Company shall not, and shall not permit any other Company Party or any of its or their Subsidiaries to, directly or indirectly, make any Restricted Payments. Notwithstanding the foregoing sentence, so long as the Company and its Subsidiaries, individually and in the aggregate, are not Insolvent and no Default or Event of Default has occurred and is continuing or would occur as a result thereof, the Company may make the following Restricted Payments: (a) Any dividend or other distribution on account of any Capital Stock of the Company or any Subsidiary now or hereafter outstanding which is payable solely in shares of the same class of Capital Stock; (b) The issuance of Common Stock upon the exercise of Option Rights of the Company; or (c) The cancellation or acquisition of any Capital Stock of the Company as payment to the Company of the exercise price of any Option Rights of the Company.
Appears in 4 contracts
Samples: Securities Purchase Agreement (Overhill Farms Inc), Securities Purchase Agreement (Levine Leichtman Capital Partners Ii Lp), Securities Purchase Agreement (Levine Leichtman Capital Partners Ii Lp)
