Template:Nutshell Equity Derivatives 10
Article 10 Dividends
10.1. “Dividend Amount” means a Share’s Record Amount, Ex Amount or Paid Amount, as specified in the Confirmation and adjusted to cater for concentrations or dilutions under Section 11.2.
- 10.1(a) “Record Amount” means 100% of the gross cash dividend per Share declared by the Issuer to Shareholders on any record date during the Dividend Period.
- 10.1(b) “Ex Amount” means 100% of the gross cash dividend per Share declared by the Issuer to Shareholders of record, where the Shares commence trading “ex-dividend” during the Dividend Period.
- 10.1(c) “Paid Amount” means 100% of the gross cash dividend per Share paid during the Dividend Period to holders of record of a Share.
Any “gross cash dividend” represents the sum before any tax withholding and excluding any tax imputations, credits, refunds or deductions granted or levied on the dividend, and excluding any Extraordinary Dividends and Excess Dividend Amounts.
10.2. “Dividend Payment Date” means, for each Dividend Period, the date specified as such in the Confirmation (or the following Currency Business Day if it isn’t one). If no Dividend Payment Date is specified it will be the Cash Settlement Payment Date or Settlement Date relating to the end of the relevant Dividend Period.
10.3. “Dividend Period” means the Second Period, unless specified as the First Period.
- 10.3(a) The “First Period” starts on the Clearance System Business Day one Settlement Cycle after the Trade Date and then runs from one Cash Settlement Payment Date or Settlement Date to the next.
- 10.3(b) The “Second Period” starts on the Trade Date and then runs from one Valuation Date to the next, ending on the final Valuation Date (unless it is a Physically-settled Forward Transaction to which Variable Obligation doesn’t apply, in which case it ends a Settlement Cycle before the Settlement Date).
10.4. If “Re-investment of Dividends” applies, after each Dividend Payment Date the Calculation Agent must add the Dividend Amount to the Equity Notional Amount and that will be the new Equity Notional Amount for the following Cash Settlement Payment Date.
10.5. Dividend Payment Obligations Relating to Physically-settled Option Transactions. All dividends on Shares to be delivered under a Physically-settled Option Transaction will be payable to the party that would receive them under normal market practice for a sale of the Shares settling through a Clearance System on the Exercise Date.
10.6. “Extraordinary Dividend” means the specified amount per Share or, if not specified, the amount determined by the Calculation Agent.