Examples of Class 2 Units in a sentence
The Fund currently has five classes of Units: Class 1 Units, Class 2 Units, Class 3 Units, Class 4 Units, and Class 5 Units (collectively, the “Units”).
In addition, in order to convert your Class 2 Units, you must not have exercised your Class 2 Put Right.
However, in order to convert Class 1 or Class 2 Units, the holder of those Units must not have exercised the Put Right for such Units, as applicable.
Class 1 Units have the same priority as Class 2 Units and Class 3 Units (as described below) for sharing in any shortfall as set forth in Section 2.1.4.2(b)(1) of the Operating Agreement.
For indicative purposes, the spread, as at the date of this prospectus, was c6.7% for Class 1 Units and Class 2 Units.
The holders of Class 3 Units do not have a Put Right similar to the Class 1 Units or Class 2 Units, or any other right to require JCM to redeem their Class 3 Units.
In addition, in order to amend the Class 2 COD, such amendment must first be approved by the Board and must then be approved by a majority of the Class 2 Units who are present (by person or proxy) at a duly called and held meeting at which a quorum is present, or by the written consent executed by a majority in interest of the outstanding Class 2 Units.
As set forth above, under the discussion of the Suitability of the Class 1 Units, Members who have a low or negative capital account balance should consult their tax advisors to discuss whether such Members should ever consider selling their Class 2 Units, or whether such Class 2 Units should pass to the Member’s heirs.
We are obligated to protect the rights of the holders of Class 3 Units against impairment of their rights in the same manner as the Class 1 and Class 2 Units.
Class 2 Units have a right to a mandatory distribution that is $0.08 per unit per year paid monthly, rather than the mandatory distribution of $0.0775 Class 1 Units are entitled to receive.