Common use of Distribution Transaction Clause in Contracts

Distribution Transaction. Subject to the terms and conditions set forth in this Agreement and in the Operating Agreement, upon execution of this Agreement, ADNM agrees to convert all of its UBL Series B Preferred Units, and all accrued and unpaid Preferred Return thereon, into UBL Common Units, and to distribute such UBL Common Units, along with the 7,350,000 UBL Common Units that it already owns, to AD and AD Holdings, as follows: ADNM will distribute 9,281,452 of such UBL Common Units to AD, and will distribute 93,752 of such UBL Common Units to AD Holdings, so that after giving effect to such distributions, AD and AD Holdings will hold a 99% and 1% interest in ADNM, respectively.