Dividend entitlements effect on margin provisions
7.1 This paragraph applies where -
(a) the ex-dividend date for the payment of any dividend on any Purchased Securities occurs before the Termination of the relevant Transaction; or
(b) the ex-dividend date for the payment of any dividend on any gilt-edged securities which have been delivered to a party as Margin Securities occurs before Equivalent Margin Securities have been delivered to the other party.
7.2 For the purposes of paragraph 4 of the Agreement -
(a) where the paragraph 7.1(a) above applies, from the period from the ex-dividend date until the Termination of the Transaction, the Purchaser shall be deemed to have received a payment of Cash Margin equal to the amount of the dividend payable on the Purchased Securities by reference to that ex-dividend date;
(b) where paragraph 7.1(b) above applies, the party which has received those Margin Securities shall, from the period from the ex-dividend date until Equivalent Margin Securities are delivered to the other party, be deemed to have received a payment of Cash Margin equal to the amount of the dividend payable on those Margin Securities by reference to that ex-dividend date.
Dividend entitlements. Notwithstanding any other provision of this agreement, the parties agree that:
(a) the Buyer or its Nominee (as the case may be) is entitled to any dividend, distribution, return of capital, paid or credited amount, transferred property or similar, announced and/or paid in respect of the Second Tranche Shares at any time after the date of this agreement (each an Entitlement).
(b) to the extent the Buyer or its Nominee (as the case may be) is entitled to an Entitlement under paragraph (a) above and that Entitlement is received by the Seller, the Second Tranche Purchase Price will be reduced by an amount equal to the amount of the Entitlement. For the avoidance of doubt, the amount or value of any franking credit that is attached to a dividend or other distribution does not form part of, and is excluded from, the Entitlement of the Buyer or its Nominee (as the case may be) for all purposes including for the purposes of reducing the Second Tranche Purchase Price under this paragraph (b).
Dividend entitlements. The Employee, as a shareholder, shall be entitled to receive their full and immediate pro-rata share in the dividends declared by the Company. This ensures that the Employee benefits directly from the Company's financial success and growth.
