Common use of Restriction on Issuance of Stock Clause in Contracts

Restriction on Issuance of Stock. With the exception of a corporate merger or acquisition which has been approved by the Company's shareholders in accordance with the law of the State of Delaware, the Company will not issue any capital stock of any class which has rights to be preferred as to dividends or as to the distribution of assets upon voluntary or involuntary liquidation, dissolution or winding-up unless such rights shall be limited to a fixed sum or percentage or par value in respect of participation in dividends and in the distribution of such assets.