Common use of Distribution Waiver Clause in Contracts

Distribution Waiver. Each Transferor covenants and agrees, as a condition precedent to the performance of HSE’s obligations hereunder, that it shall execute and deliver at Closing a waiver and forbearance agreement in form and substance reasonably satisfactory to NGL providing for the following: such Transferor shall waive any right to receive any distribution declared and paid by NGL on the NGL Units in the fiscal quarter of NGL in which the Closing Date occurs, but such Transferor shall be entitled to receive its partial pro rata share (as hereafter defined) of any distribution declared and paid on the NGL Units in the immediately following fiscal quarter of NGL. For purposes hereof, “partial pro rata share” shall mean (x) the aggregate consecutive days that a Transferor owned NGL Units during such fiscal quarter in which the Closing Date occurred divided by (y) the aggregate number of days in such fiscal quarter.