Proceeds; Dividends and Voting Clause Samples
The "Proceeds; Dividends and Voting" clause defines how financial benefits and voting rights associated with shares or securities are handled between parties. It typically outlines who is entitled to receive dividends, distributions, or other proceeds generated by the securities, and specifies which party has the authority to exercise voting rights attached to those securities. For example, in a security interest arrangement, the lender may receive dividends as additional collateral or allow the borrower to retain voting rights unless there is a default. This clause ensures clarity regarding the allocation of economic and control rights, preventing disputes over entitlements during the term of the agreement.
Proceeds; Dividends and Voting. Notwithstanding anything contained in this Pledge Agreement to the contrary, Pledgor shall be entitled to receive or shall receive such interest and cash dividends paid on account of the Pledged Stock, and to exercise voting rights with respect to the Pledged Stock, so long as there has not occurred any Event of Default under the Loan Agreement or this Pledge Agreement.