Third Tranche Preferred Equity Clause Samples

Third Tranche Preferred Equity. If any ECP Member has made a Preferred Equity Contribution pursuant to Section 3.3(d)(i), then immediately upon the Company’s receipt of any Capital Contribution made by ADA-ES pursuant to Section 3.3(d)(ii) or Section 3.3(e)(iii), the Company shall apply such Capital Contribution to the extent necessary: (i) first, to Redeem the portion of any Unreturned Preferred Equity that constitutes a 12% Annualized Rate of Return on Preferred Equity Contributions made pursuant to Section 3.3(d)(i) (which Redemption shall be effected pro rata among the ECP Members based on their relative Percentage Interests); (ii) second, to Redeem the portion of any Unreturned Preferred Equity constituting Preferred Equity Contributions made pursuant to Section 3.3(d)(i) with respect to which the Preferred Equity Redemption Price includes a 12% Annualized Rate of Return (which Redemption shall be effected pro rata among the ECP Members based on their relative Percentage Interests); and (iii) concurrently with the Redemption described in clause (ii) of this Section 3.8(a), Convert a portion of the ECP Members’ Unreturned Preferred Equity for which the Preferred Equity Redemption Price includes a 0% Annualized Rate of Return equal to the amount of Unreturned Preferred Equity Redeemed pursuant to clause (ii) (which Conversion shall be effected pro rata among the ECP Members based on their relative Percentage Interests). If, on or after any applicable Preferred Equity Redemption Date, the Capital Contributions made by ADA-ES pursuant to Section 3.3(d)(ii) or pursuant to Section 3.3(e)(iii) are insufficient to Redeem and Convert all of the Unreturned Preferred Equity of the ECP Members contributed pursuant to Section 3.3(d)(i) that corresponds with such Preferred Equity Redemption Date, then the ECP Members shall have the option, at any time and from time to time, to Convert all or any portion of such remaining Unreturned Preferred Equity.