The right to receive in cash or shares of an amount equal to the dividends (corporation) or distributions (limited liability company) paid with respect to a specific number of shares. Pertains to equity and real estate investments. In NVCA Documents, language is
often structured in three ways:
• Alternative 2: Non-cumulative dividends / distributions will be paid on the Series A
Preferred in an amount equal to $[_____] per share of Series A Preferred when and if
declared by the Board of Directors.
• Alternative 3: The Series A Preferred will carry an annual [__]% cumulative dividend/
distribution [payable upon a liquidation or redemption]. For any other dividends or
distributions, participation with Common Stock on an as-converted basis.