Common use of Unit Exchange Clause in Contracts

Unit Exchange. As of the Effective Date of this Agreement, and without any further action required on behalf of the Company or any Member, each of the following shall occur: (a) additional classes of Units, designated as Class A Units, Class B Units and Class C Units, shall be created with each such class of Units having the rights and privileges described in Section 6.2 hereof and elsewhere in this Agreement; (b) each Member who, as of the Effective Date, is the Record Holder of: (i) five or more Original Units shall automatically receive one Class A Unit in exchange for each Original Unit so owned; (ii) three or four Original Units shall automatically receive one Class B Unit in exchange for each Original Unit so owned; and (iii) one or two Original Units shall automatically receive one Class C Unit in exchange for each Original Unit so owned; and (c) all of the Original Units shall be canceled and of no further force or effect; provided, however, that any certificate issued by the Company to evidence Original Units shall continue to evidence the Units issued in exchange therefor pursuant to the Unit Exchange. The Company may, but shall not be required to, issue substitute Unit certificates in order to designate any Units by class after the Unit Exchange. Notwithstanding the method used to originally distribute the Units of each class as described in paragraph (b) of this Section 6.1, a Unit of a particular class shall remain a Unit of such class regardless on the total number of Units that may be owned by the Record Holder of such Unit from time to time unless such Unit is converted into a Unit of another class as provided in Section 6.2 hereof.