Common use of CAPITAL DIVIDEND Clause in Contracts

CAPITAL DIVIDEND. If the aggregate amount (hereinafter referred to in this Section as the “CDA Credit”) standing to the credit of the Corporation’s Capital Dividend Account at the Time of Closing as a result of the receipt by the Corporation of insurance proceeds payable as a consequence of the death of the Deceased Shareholder under any life insurance policy subject to this Agreement is not less than the amount of the deemed dividend that will arise under the Tax Act to the estate of the Deceased Shareholder as result of completion of the transaction of purchase and sale of Common Shares contemplated in this Article, the Corporation shall do such acts and things, including, without limiting the generality of the foregoing, making such elections, as may be necessary or desirable so that such deemed dividend is treated as a Capital Dividend. If the CDA Credit is less than the amount of the above described deemed dividend, the purchase and sale of Common Shares shall be completed in such number of stages and the Corporation shall do such acts and things, including, without limiting the generality of the foregoing, making such elections, as may be necessary or desirable so that the deemed dividends arising to the estate of the Deceased Shareholder are treated as Capital Dividends to the extent of the CDA Credit.

CAPITAL DIVIDEND. If the aggregate amount (hereinafter referred to in this Section as the “CDA Credit”) standing to the credit of the Corporation’s Capital Dividend Account at the Time of Closing as a result of the receipt by the Corporation of insurance proceeds payable as a consequence of the death of the Deceased Shareholder under any life insurance policy subject to this Agreement is not less than the amount of the deemed dividend that will arise under the Tax Act to the estate of the Deceased Shareholder as result of completion of the transaction of purchase and sale of Common Shares contemplated in this Article, the Corporation shall do such acts and things, including, without limiting the generality of the foregoing, making such elections, as may be necessary or desirable so that such deemed dividend is treated as a Capital Dividend. If the CDA Credit aggregate amount standing to the credit of the Corporation’s Capital Dividend Account at the Time of Closing as a result of the receipt by the Corporation of such insurance proceeds is less than the amount of the above described deemed dividend, the purchase and sale of Common Shares shall be completed in such number of stages and the Corporation shall do such acts and things, including, without limiting the generality of the foregoing, making such elections, as may be necessary or desirable so that the deemed dividends arising to the estate of the Deceased Shareholder are treated as Capital Dividends to the extent of the CDA Credit.

CAPITAL DIVIDEND. SPECIMEN If the aggregate amount (hereinafter referred to in this Section as the “CDA Credit”) standing to the credit of the Corporation’s Capital Dividend Account at the Time of Closing as a result of the receipt by the Corporation of insurance proceeds payable as a consequence of the death of the Deceased Shareholder under any life insurance policy subject to this Agreement is not less than the amount of the deemed dividend that will arise under the Tax Act to the estate of the Deceased Shareholder as result of completion of the transaction of purchase and sale of Common Shares contemplated in this Article, the Corporation shall do such acts and things, including, without limiting the generality of the foregoing, making such elections, as may be necessary or desirable so that such deemed dividend is treated as a Capital Dividend. If the CDA Credit is less than the amount of the above described deemed dividend, the purchase and sale of Common Shares shall be completed in such number of stages and the Corporation shall do such acts and things, including, without limiting the generality of the foregoing, making such elections, as may be necessary or desirable so that the deemed dividends arising to the estate of the Deceased Shareholder are treated as Capital Dividends to the extent of the CDA Credit.

CAPITAL DIVIDEND. If the aggregate amount (hereinafter referred to in this Section as the “CDA Credit”) standing to the credit of the Corporation’s Capital Dividend Account at the Time of Closing as a result of the receipt by the Corporation of insurance proceeds payable as a consequence of the death of the Deceased Shareholder under any life insurance policy subject to this Agreement is not less than the amount of the deemed dividend that will arise under the Tax Act to the estate of the Deceased Shareholder Surviving Spouse as result of completion of the transaction of purchase and sale of Common Shares contemplated in this Article, the Corporation shall do such acts and things, including, without limiting the generality of the foregoing, making such elections, as may be necessary or desirable so that such deemed dividend is treated as a Capital Dividend. If the CDA Credit is less than the amount of the above described deemed dividend, the purchase and sale of Common Shares shall be completed in such number of stages and the Corporation shall do such acts and things, including, without limiting the generality of the foregoing, making such elections, as may be necessary or desirable so that the deemed dividends arising to the estate of the Deceased Shareholder Surviving Spouse are treated as Capital Dividends to the extent of the CDA Credit.