Common use of Priority of Dividends Clause in Contracts

Priority of Dividends. The Company shall make no Distribution (as defined below) to the holders of shares of Common Stock in any fiscal year unless and until full annual dividends shall have been paid, or declared and set apart, upon all shares of Preferred Stock of each series. The Company shall not permit any subsidiary of the Company to purchase or otherwise acquire for consideration any shares of stock of the Company, or take any other action, unless the Company could, under this Section 2, purchase or otherwise acquire such shares or take such other action at such time and in such manner.