Common use of Distributions and Restricted Payments Clause in Contracts

Distributions and Restricted Payments. Company shall not, and shall not permit any Subsidiary to, make any Restricted Payments, except that, notwithstanding the immediately preceding subsection, Company may (a) pay Permitted Distributions unless a Default or Event of Default shall exist or would be caused thereby, in which case Company may only pay such Distributions as may be required to maintain the status of Company as a Real Estate Investment Trust under the Code and (b) establish a stock option plan for employees and directors of Company and, provided no Default or Event of Default shall exist or would be caused thereby, Company may repurchase Capital Stock of Company for the purpose of matching employee stock purchases in connection with Company's retirement plans.