Unpaid Distributions Clause Samples
The Unpaid Distributions clause defines how distributions that are owed but not yet paid to stakeholders, such as shareholders or partners, are handled. Typically, this clause outlines the timing, calculation, and conditions under which these unpaid amounts will be paid, and may address whether interest accrues on the outstanding sums. Its core function is to ensure clarity and fairness in the treatment of pending distributions, preventing disputes and misunderstandings regarding when and how unpaid amounts will be settled.
Unpaid Distributions. If the full amount of a Class A Distribution is not paid on the payment date for any dividend declared by the BAM Board on the BAM Shares, then such Class A Distribution shall accrue and accumulate (without interest), whether or not the Company has earnings, whether or not there are funds legally available for the payment thereof and whether or not such distributions are earned, declared or authorized (such amounts, the “Unpaid Distributions”). Any distribution payment made on the Class A Shares shall first be credited against the earliest accumulated Unpaid Distributions due with respect to such Class A Shares which remains payable.
Unpaid Distributions. Other than the amounts payable as part of the Merger Consideration, any and all undeclared or unpaid dividends or distributions on the Units or unit appreciation rights of the Company immediately prior to the Effective Time shall be canceled at the Effective Time. All the Units held in the treasury of the Company immediately prior to the Effective Time shall be canceled and no consideration of any kind shall be delivered in exchange therefor under this Agreement.