Restrictions on Certain Post Distribution Actions Clause Samples
The "Restrictions on Certain Post-Distribution Actions" clause limits what parties can do with assets, information, or rights after they have been distributed under an agreement. Typically, this clause may prohibit recipients from reselling, transferring, or modifying distributed items, or from using them in ways not originally intended by the agreement. Its core function is to maintain control over the use and disposition of distributed resources, preventing misuse or unauthorized actions that could undermine the original purpose of the distribution.
Restrictions on Certain Post Distribution Actions. (1) Cavco Restrictions. Cavco covenants to Centex that it will not take or fail to take any action where such action or failure to act would cause the Merger and Distribution to fail to qualify under Sections 355(a) and 368(a)(1)(D) of the Code or any corresponding provisions of state or local law. Without limiting the foregoing, Cavco covenants to Centex that: (i) during the two-year period following the Distribution Date, Cavco will not liquidate, merge or consolidate with any other person; (ii) during the two-year period following the Distribution Date, Cavco will not sell, exchange, or distribute or otherwise dispose of all or a substantial portion of its assets except in the ordinary course of business; (iii) during the two-year period following the Distribution Date, Cavco will continue the active conduct of the historic business as transferred to it in the Merger; (iv) Cavco will not take any action inconsistent with the information and representations in the Ruling Documents; (v) Cavco will not repurchase stock of Cavco in a manner contrary to the requirements of Section 4.05(1)(b) of Revenue Procedure 96-30 or in a manner contrary to the representations made in the Ruling Documents; and (vi) Cavco will not enter into any negotiations, agreements or arrangements with respect to any of the foregoing.
Restrictions on Certain Post Distribution Actions. Luminent agrees that it will not take or fail to take, or permit any member of the Luminent Group to take or fail to take, any action where such action or failure to act would be inconsistent with any material, information, covenant or representation in the Ruling Documents or the Ruling.
Restrictions on Certain Post Distribution Actions