Unit Split Clause Samples
A Unit Split clause defines the process by which existing units of ownership, such as shares or partnership interests, are divided into a greater number of units without altering the overall value of the holder's interest. In practice, this means that if a company declares a 2-for-1 unit split, each unit holder will receive an additional unit for every unit they own, effectively doubling the number of units while maintaining the same total ownership percentage. This clause is commonly used to increase the liquidity of units, make them more affordable to new investors, and ensure proportional ownership remains unchanged among existing holders.
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Unit Split. Contingent and effective immediately upon the effectiveness of this Amendment (the “Effective Time”), and without further action on the part of the Company or the holders of (i) Common Units issued and outstanding immediately prior to the Effective Time (“Old Common Units”), (ii) Preferred Units issued and outstanding immediately prior to the Effective Time (“Old Preferred Units”), or (iii) Profits Interests and outstanding immediately prior to the Effective Time (the “Old Profits Interests”), each then outstanding share of Old Common Units, Old Preferred Units and Old Profits Interests, shall be reconstituted and reclassified as one quarter of the units of the same class and series of Common Units, Preferred Units or Profits Interests, as applicable (the “Unit Split”). Furthermore, the Profits Interest Threshold Amount for each outstanding Profits Interest shall be proportionally adjusted to reflect the Unit Split. The Unit Split shall occur automatically whether or not the certificates representing such outstanding units have been surrendered to the Company or its transfer agent, provided, however, that the Company shall not be obligated to issue certificates evidencing the Common Units, Preferred Units or Profits Interests, as applicable, issuable as a result of the Unit Split unless the existing certificates evidencing the applicable units prior to the Unit Split are either delivered to the Company, or the holder notifies the Company that such certificates have been lost, stolen or destroyed, and executes an agreement satisfactory to the Company to indemnify the Company from any loss incurred by it in connection with such certificates.
Unit Split. All references to numbers of units in this Agreement shall be appropriately adjusted to reflect any unit distribution, split, combination or other recapitalization affecting the Units occurring after the date of this Agreement.
Unit Split. Immediately prior to the Initial Offering, the Units representing Interests of the Initial Members as set forth on Exhibit B hereto shall be subdivided at a ratio of 4.25 to 1, resulting in the issuance of 4.25 Units for every Unit then held by the Initial Members.
Unit Split. Effective as of immediately prior to the Separation Transfer, Article IV of the Partnership Agreement is hereby amended to include the following as Section 4.11 of the Partnership Agreement:
Unit Split