Anti-dividend-block Sample Clauses
The Anti-Dividend-Block clause is designed to prevent parties from taking actions that would intentionally block or delay the payment of dividends. In practice, this clause restricts shareholders or other stakeholders from using their voting rights or other powers to impede the declaration or distribution of dividends that would otherwise be payable under the agreement. By including this provision, the clause ensures that entitled parties receive dividends in a timely manner and protects against strategic maneuvers that could unfairly withhold financial benefits.
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Anti-dividend-block. Except to the extent required by applicable law, statute, rule, regulation, order or agreement with regulators, the Borrower will not permit any of its Subsidiaries to agree to or have in effect any contractual restriction on the payment of dividends or the making of other distributions to the Borrower (each, a “Burdensome Agreement”) other than:
(a) Burdensome Agreements (i) in existence on the date hereof (to the extent not otherwise permitted by this Section 6.08) that are listed on Schedule 6.08 hereto and (ii) to the extent Burdensome Agreements permitted by clause (i) are contained in an agreement evidencing Financial Debt, any agreement evidencing any permitted modification, replacement, renewal, extension or refinancing of such Financial Debt so long as such modification, replacement, renewal, extension or refinancing does not expand the scope of such Burdensome Agreement or include any other Subsidiaries as parties thereto;
(b) Burdensome Agreements that are binding on a Subsidiary of the Borrower at the time such Person first becomes a Subsidiary of the Borrower, so long as such Burdensome Agreements were not entered into in contemplation of such Person becoming a Subsidiary of the Borrower;
(c) Burdensome Agreements that are customary restrictions on leases, subleases, licenses or asset sale agreements otherwise permitted hereby so long as such restrictions relate to the assets subject thereto;
(d) Burdensome Agreements that are customary provisions restricting subletting or assignment of any lease governing a leasehold interest of any Subsidiary of the Borrower;
(e) Burdensome Agreements that are customary provisions restricting assignment of any agreement entered into in the ordinary course of business;
(f) Burdensome Agreements that are restrictions on cash or other deposits imposed by customers under contracts entered into in the ordinary course of business;
(g) Burdensome Agreements to the extent set forth in an agreement evidencing Financial Debt of the Borrower permitted under Section 6.02; and
(h) Burdensome Agreements entered into by a Securitization Subsidiary in respect of assets financed by such Securitization Subsidiary, or Burdensome Agreements restricting a Securitization Subsidiary in connection with the incurrence of Financial Debt by such Securitization Subsidiary, in each case pursuant to a Securitization Transaction.
Anti-dividend-block. Except to the extent required by applicable law, statute, rule, regulation, order or agreement with regulators, the Borrower will not permit any of its Subsidiaries to agree to or have in effect any contractual restriction on the payment of dividends or the making of other distributions to the Borrower.