Common use of Right to dividend Clause in Contracts

Right to dividend. (a) Subject to clause 8 (Enforcement of the Pledge) below, the Pledgor shall be entitled to receive the dividends and other distributions paid or payable by the Company on all or any of the Pledged Assets, unless the payment of such dividends or other distributions is or becomes prohibited by any Loan Document. (b) On and at any time after the occurrence of an Event of Default which is continuing and has not been waived or remedied, the Collateral Agent shall be entitled to receive dividends and other distributions paid or payable by the Company (whether in cash or not) on all or any of the Pledged Assets and to apply any payments so received in and towards payment and discharge of the Secured Obligations secured thereby. To this effect, the Pledgor and the Collateral Agent agree that the Company is hereby directed (and the Company, by countersigning this Pledge Agreement, accepts), if and when an Event of Default occurs and which is continuing and has not been waived or remedied to make direct payment of all such dividends and other distributions to the Collateral Agent.

Right to dividend. (a) Subject to clause 8 (Enforcement of the Pledge) below, the Pledgor shall be entitled to receive the dividends and other distributions paid or payable by the Company on all or any of the Pledged Assets, unless the payment of such dividends or other distributions is or becomes prohibited by any Loan Document. (b) On and at any time after the occurrence of an Event of Default which is continuing and has not been waived or remedied, the Collateral Agent shall be entitled to receive dividends and other distributions paid or payable by the Company (whether in cash or not) on all or any of the Pledged Assets and to apply any payments so received in and towards payment and discharge of the CFC Secured Obligations secured thereby. To this effect, the Pledgor and the Collateral Agent agree that the Company is hereby directed (and the Company, by countersigning this Pledge Agreement, accepts), if and when an Event of Default occurs and which is continuing and has not been waived or remedied to make direct payment of all such dividends and other distributions to the Collateral Agent.