Distributions and Dividend Policy. Unless otherwise agreed by the Shareholders in accordance with the provisions of this Agreement and applicable law, the Shareholders shall ensure that the net profit registered in the fiscal year, computed after the deductions and adjustments provided for in the Brazilian Corporation Law, will be subject to the following allocation order: first, five per cent (5%) of the net profit to the constitution of the legal reserve, until it reaches (x) twenty per cent (20%) of the capital stock or (y) thirty percent (30%) of the capital plus any capital surplus, and which will never exceed the lower amount of (x) and (y); second, payment of dividends to the holders of the S&E B Shares, the amount of which will be variable and calculated in accordance with Section 9.02 and, if no such payment is due in accordance therewith, payment of fixed dividends to the holders of the S&E B Shares in an amount of BRL 0.01 (one centavo) only; third, payment of fixed dividends to the holders of the preferred ‘A’ shares in an amount of BRL 0.01 (one centavo) only;
Distributions and Dividend Policy. Unless otherwise agreed by the Shareholders in accordance with the provisions of this Agreement and applicable law, the Shareholders shall ensure that the net profit of the Company registered in the fiscal year, computed after the deductions and adjustments provided for in the Brazilian Corporation Law, will be subject to the following allocation order: first, five per cent (5%) of the net profit to the constitution of the legal reserve, until it reaches (x) twenty per cent (20%) of the capital stock or (y) thirty percent (30%) of 45 the capital plus any capital surplus, and which will never exceed the lower amount of (x) and (y); second, payment of a mandatory dividend of 1% of the net profits to holders of the common shares and preferred shares; third, payment to the Company’s statutory reserve (reserva estatutária) for operations and projects, in an amount agreed by the Shareholders in a Shareholders’ Prior Meeting; provided that in no event shall (a) such amount exceed 80% of net profits or (b) such statutory reserve exceed 80% of the Company’s share capital; and fourth, payment of the remaining amount as dividends to the holders of the common shares and preferred shares, in accordance with any determination at the annual General Meeting, with due regard to the terms and conditions set forth in the Usufruct Agreement; provided that, in setting the payments of amounts under this Section 9.01, the Shareholders agree that:
Distributions and Dividend Policy. Unless otherwise agreed by the Shareholders in accordance with the provisions of this Agreement and applicable law, the Shareholders shall ensure that the net profit registered in the fiscal year, computed after the deductions and adjustments provided for in the Brazilian Corporation Law, will be subject to the following allocation order: first, five per cent (5%) of the net profit to the constitution of the legal reserve, until it reaches (x) twenty per cent (20%) of the capital stock or (y) thirty percent (30%) of the capital plus any capital surplus, and which will never exceed the lower amount of (x) and (y); second, payment of dividends to the holders of the Downstream B Shares and the Downstream C Shares, the amount of which will be variable and calculated in accordance with Section 9.02 and, if no such payment is due in accordance therewith, payment of fixed dividends to the holders of the Downstream B Shares and the Downstream C Shares in an amount of BRL 0.01 (one centavo) for each group of 1.000.000 (one million) of Downstream B Shares and BRL 0.01 (one centavo) for each group of 1.000.000 (one million) of Downstream C Shares, respectively; third, payment of fixed dividends to the holders of the Downstream D Shares, the amount of which will be variable and calculated in accordance with Section 9.02; fourth, payment of fixed dividends to the holders of the Downstream E Shares in an amount of BRL 0.01 (one centavo) for each group of 1,000,000 (one million) Downstream E Shares; fifth, payment of fixed dividends to the holders of the preferred ‘A’ shares in an amount of BRL 0.01 (one centavo) only; sixth, payment of a mandatory dividend of 1% of the net profits; seventh, payment to the Downstream Co’s statutory reserve (reserva estatutária) for operations and projects, in an amount agreed by the holders of 80 per cent. of the voting shares of the Downstream Co; provided that in no event shall (a) such amount exceed 80% of net profits or (b) such statutory reserve exceed 80% of Downstream Co’s share capital; and eighth, payment of the remaining amount as dividends to the holders of the common shares in accordance with any determination at the annual Shareholders’ Meeting (or as otherwise approved by the Shareholders), with due regard to the terms and conditions set forth in the Usufruct Agreement; provided that, in setting the payments of amounts under this Section 9.01, the Shareholders agree that (a) the Downstream Co shall seek to maximize the amou...
Distributions and Dividend Policy. (a) Out of the net profits of Inotera for each fiscal year, after having provided for income tax, and covered losses of the previous years, the JV Parties and the Joinder Parties shall use best efforts to cause to cause Inotera to first set aside a legal reserve of 10% from the net profit after tax until the accumulated amount of such reserve equals the total issued capital of Inotera. Thereafter, the JV Parties and the Joinder Parties shall use best efforts to cause Inotera to distribute the remainder of the net profit, if any, after providing for any special reserves or reserving certain undistributed earnings for business purposes, as follows:
