Common use of Ownership and Transfer Restrictions Clause in Contracts

Ownership and Transfer Restrictions. To protect the Company's status as a REIT, a Person may not own or convert any Debenture if such ownership or conversion, in the good faith opinion of the Board of Directors, (i) might cause the Company to fail to comply with any requirement necessary for the continued qualification of the Company as a REIT or (ii) would result in a single Person owning more than 9.8% of the Company's outstanding stock within the meaning of the Code. For the purpose of the preceding sentence, a Person shall be considered to own shares of Company stock which are owned directly by such Person (held of record by such Person or such Person's nominee or nominees) and shares of Company stock which are owned indirectly by such Person (including shares of Common Stock issuable upon conversation of the Debentures) pursuant to Sections 542, 544 and 856 of the Code and the regulations promulgated thereunder.