MHR shall, in principle, make dividends in accordance with the following policies.
The Method of Calculating Total Amount of Dividend to Unitholders
- From the total amount to be distributed to unitholders, the amount of profit as stipulated in Article 136 of the Investment Trusts Act (the “Distributable Amount”) shall be the profit calculated in accordance with generally accepted corporate accounting practices in Japan (in cases where the amount of net assets on the balance sheet of the Investment Corporation exceeds the total amount of the investment amount and other amountsrecorded in each account item specified in the Ordinance on Accounting at Investment Corporations (Cabinet Office Ordinance No. 47 of 2006, as amended) (the “total amount of unitholders’ capital, etc.”), the amount obtained by deducting the total amount of unitholders’ capital, etc. from the net asset value).
- In principle, the amount of distribution shall be the amount determined by the Investment Corporation that exceeds the amount equivalent to 90% of the amount of its profit available for distribution as set forth in Article 67-15(1) of the Act on Special Measures Concerning Taxation (if there is any change in the calculation of this amount due to amendment of laws, regulations, etc., the amount after the change shall be used). The Investment Corporation may accumulate, reserve, or deal otherwise with a long-term repair reserve, payment reserve, distribution reserve and any other similar reserves and allowances, etc., as well as other [Translation] 14 necessary amounts that are deemed necessary to maintain and improve the value of the Operating Assets from the Distributable Amount.
Dividends of Cash in Excess of Profit
If the Investment Corporation considers it appropriate or if tax (including corporation tax) imposed on the Investment Corporation can be reduced, it may make a distribution of the amount determined by the Investment Corporation to the extent of the amount set forth in the rules of the Investment Trusts Association, Japan (“Toshin kyokai”) as distributions in excess of profit.
Method of Distribution
Distributions pursuant to this Article shall be made in cash and paid, in principle, within three months of the Fiscal Period Closing Date to unitholders and registered pledgees of investment units who are recorded or registered in the final register of unitholders as of the Fiscal Period Closing Date, in accordance with the number of investment units held or the investment units subject to the registered pledge.
Expiration of the Rights to Demand Dividends
In case where the distributions pursuant to this article are unclaimed for a period of three (3) full years after the date of commencement of such payment, the Investment Corporation shall be discharged from its payment obligation thereof. No interest shall accumulate on any unpaid distributions.
Rules of the Investment Trusts Association, Japan
In addition to Items above, the Investment Corporation shall comply with the rules, etc. set forth by the Investment Trusts Association, Japan for distributions.
