Common use of Share Dividends Clause in Contracts

Share Dividends. If the Trustee receives as a dividend or other distribution on any Shares held by it under this Agreement any additional voting securities of the Company (including any voting securities issued in respect of a stock split or other recapitalization), the Trustee shall hold them subject to this Agreement for the benefit of the Voting Trust Certificate Holders in proportion to their respective interests, and the securities (and certificates evidencing the same) shall become subject to all of the terms and conditions of this Agreement to the same extent as if they were originally deposited under it. The Trustee shall issue Voting Trust Certificates in respect of these shares to the Voting Trust Certificate Holders of record at the close of business on the record date determined pursuant to the provisions of Section 6.06. If applicable, the Trustee may withhold from the distribution the deductions provided for in Section 6.05.

Appears in 3 contracts

Sources: Agreement, Equity Purchase Agreement (Staktek Holdings Inc), Equity Purchase Agreement (Staktek Holdings Inc)