This excerpt taken from the WBMD 8-K filed Nov 21, 2006.
The holders of the Class C preferred are entitled to receive dividends at a rate of $0.40 per share (as adjusted for any stock dividends, combinations or splits with respect to such shares) per annum, compounded on a semi-annual basis (the Class C Dividends). The Class C Dividends are payable, when and as declared by the Board of Directors or as part of the Class C preferential amount upon a deemed liquidation, as defined, and shall accumulate from the date of first issuance of Class C preferred stock. For the six months ended June 30, 2006, accumulated and unpaid Class C Dividends totaled approximately $15,540,000 and for the year December 31, 2005 was $13,960,000. The Class C Dividends are payable first to all holders of Class C preferred in preference to Class A preferred, Class B preferred and common stock with no common stock to receive any such dividend in preference to any other class, and shall be payable out of such funds as are
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Notes to Consolidated Financial Statements (Continued)
legally available thereof. After payment of accrued and unpaid dividends, holders of Class C preferred shall participate in any dividend payments to the holders of common stock on an as-converted basis.
The holders of shares of Class A preferred and Class B preferred are entitled to receive, when and as declared by the Board of Directors, dividends in an amount equal to such dividends as is declared on the common stock multiplied by the number of shares of common stock into which the Class A, B1, B2, B3 and B4 shares, respectively, are then convertible. All dividends declared on the Class A and Class B preferred stock shall be paid prior to any payment of dividends on the common stock. All such dividends shall be noncumulative, shall be payable to all holders of Class A and Class B preferred stock pro rata in preference to common stock with no common stock to receive any such dividend on preference to any other such class, and shall be payable out of such funds as are legally available thereof.