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Dividend Restrictions
Dividend Restrictions contract clause examples

Dividend Restrictions. No subsidiary of the Company is prohibited or restricted, directly or indirectly, from paying dividends to the Company, or from making any other distribution with respect to such subsidiary’s equity securities or from repaying to the Company or any other subsidiary of the Company any amounts that may from time to time become due under any loans or advances to such subsidiary from the Company or from transferring any property or assets to the Company or to any other subsidiary.

Unless provided otherwise by the Committee, the following restrictions apply to the Stock Units:

Section #13Negative Pledge Agreements; Dividend and Other Restrictions

Restrictions. With respect to all Proprietary Information disclosed to it, the Receiving Party # shall keep it confidential (other than as permitted by this Agreement), # shall store and maintain it with the same diligence and care as its own proprietary information, but no less than reasonable diligence and care, # may only use it for the purpose for which it was disclosed by the Disclosing Party, # may not disclose it (other than as permitted by this Agreement), # may not deconstruct, modify or copy it (other than as permitted by this Agreement), and # may not transfer or assign it to any Third Party.

The Borrowers shall not and shall not permit any of their Subsidiaries to, agree with any Person # to limit its ability to provide collateral security to the Banks to secure the Obligations or # to limit the ability of any Borrower’s Subsidiaries to pay dividends or make other distributions to such Borrower, except # in the case of [clause (ii) above], any such limitations set forth in this Agreement, the other Loan Documents, the documents governing the 2014 Bonds and the 2017 Bonds, and the Second Lien Note Documents or any Permitted Refinancing Debt in respect of any of the foregoing so long as the limitations in such Permitted Refinancing Debt are no more restrictive, taken as a whole, than those contained in the applicable Refinanced Debt, and # in the case of [clause (i) above], # any such limitations set forth in agreements relating to secured Indebtedness (other than the Second Lien Notes) permitted by this Agreement if such prohibition or limitation applies only to the property and assets securing such Indebtedness and such property or assets do not constitute Collateral, # any restrictions with respect to a Subsidiary imposed pursuant to an agreement that has been entered into in connection with the disposition of assets of such Subsidiary otherwise permitted hereby so long as such restrictions apply only to such assets and do not conflict with any obligation to provide Collateral pursuant to the Loan Documents, # customary restrictions or conditions on any non-Loan Party imposed by any agreement or document governing or evidencing Indebtedness of any such non-Loan Party that is otherwise permitted hereunder or # customary anti-assignment provisions with respect to contractual obligations, permits or licenses.

the RSU Award (the “Dividend Units”), and further provided that such Dividend Units shall be subject to the same forfeiture restrictions and restrictions on transferability, and same timing requirements for issuance of shares, as apply to the Restricted Stock Units subject to the RSU Award with respect to which the Dividend Units relate.

Dividend and Distribution Restrictions. Borrower will only make dividend payments or distribution payments in an amount that, when made, will not adversely affect the repayment ability of the Borrower on the Loan and other Obligations when due. In addition, no dividend payments or distribution payments will be made unless Borrower’s operations were cash flow positive in the preceding fiscal year after taking into account all operating expenses, non-financed capital expenditures, appropriate funding of all reserves and debt service, # the Borrower is in compliance with covenants of the Loan Agreement and those identified in this Conditional Commitment as applying throughout, and # all Borrower debts are paid on a current status. This is not intended to apply to distribution payments to cover personal tax liability resulting from the profitability of Borrower’s business.

Section # Dividend and Other Payment Restrictions Affecting Restricted Subsidiaries.

Dividend Restrictions. Except as disclosed in the Registration Statement or the Prospectus, no subsidiary of the Company is prohibited or restricted, directly or indirectly, from paying dividends to the Company, or from making any other distribution with respect to such subsidiary’s equity securities or from repaying to the Company or any other subsidiary of the Company any amounts that may from time to time become due under any loans or advances to such subsidiary from the Company or from transferring any property or assets to the Company or to any other subsidiary.

Restrictions. Subject to any exceptions set forth in this Agreement or the Plan, from the Grant Date until such time as the Restricted Stock Units are settled in accordance with Section 6, the Restricted Stock Units or the rights relating thereto may not be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by the Grantee. Any attempt to assign, alienate, pledge, attach, sell or otherwise transfer or encumber the Restricted Stock Units or the rights relating thereto shall be wholly ineffective and, if any such attempt is made, the Restricted Stock Units will be forfeited by the Grantee and all of the Grantee’s rights to such units shall immediately terminate without any payment or consideration by the Company.

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