Intended Use. In the event that the subscriber needs to provide any of the shares purchased hereunder to one of its limited partners in order to buy back all partnership equity from that limited partner, then the issuer shall transfer to that limited partner a quantity of issued shares according to an amount indicated by the subscriber. In such case, these transferred shares will continue to be restricted. Although restricted, the shares will be eligible for dividends. These dividends will be held by the issuer until the note is satisfied either by exchanging the value of the note for real estate owned by the subscriber or by sale, hypothecation, or encumbrance of the note by issuer. Under such conditions, these transferred shares shall become fully paid and non-assessable.
Appears in 6 contracts
Samples: Purpose of Agreement (RAD Diversified REIT, Inc.), Purpose of Agreement (RAD Diversified REIT, Inc.), Purpose of Agreement (RAD Diversified REIT, Inc.)
