Common use of Distribution Events Clause in Contracts

Distribution Events. If a Distribution Event has been initiated and is continuing, then the Senior Lenders shall be entitled to receive payment in full of the Senior Indebtedness before the Holder is entitled to receive any Subordinated Debt Distribution (other than Reorganization Securities) on account of the Subordinated Debt. For purposes of this Note, the term "REORGANIZATION SECURITIES" shall mean any securities of the Maker or any other entity provided for by a plan of reorganization or readjustment if (i) the payment thereof is subordinate at least to the extent provided in this Article II with respect to this Note to the payment of Senior Indebtedness, and (ii) the payment or distribution of such securities has been authorized in a Distribution Event under any applicable Bankruptcy Law giving effect, and stating in such order or decree that effect is given, to the purpose and intention of the subordination of this Note to the Senior Indebtedness.