Common use of Right to dividend Clause in Contracts

Right to dividend. (a) Until the occurrence of an Event of Default, this Pledge Agreement does not affect any right of the Pledgor to be entitled to receive any dividends and other distributions paid or to be paid by the Company on all or any of the Shares, unless the payment of such dividends or other distributions is or becomes prohibited by any of the Loan Documents. (b) Upon the occurrence of an Event of Default, the Pledgee shall have sole entitlements to receive dividends and other distributions paid or to be paid by the Company on all or any of the Shares and apply all dividends and other distributions to the payment of the Obligations. To this effect, the Pledgor and the Pledgee agree that the Company is hereby directed (and the Company, by signing this Pledge Agreement, accepts), if and when an Event of Default has occurred, to make direct payment of all such dividends and other distributions to the Pledgee exclusively.