Common use of Deferred Issuance and Distribution Clause in Contracts

Deferred Issuance and Distribution. Section 3.1 Upon the earlier to occur of the expiration of the Underwriters’ Option period or the exercise in full of the Underwriters’ Option, MLP shall issue to Diamondback a number of additional Common Units that is equal to the excess, if any, of (x) the total number of Option Units over (y) the aggregate number of Common Units, if any, actually purchased by and issued to the Underwriters pursuant to the exercise(s) of the Underwriters’ Option. Upon each exercise of the Underwriters’ Option, MLP shall distribute to Diamondback an amount of cash equal to the proceeds, net of the Underwriters’ Discount, of each such exercise (such net proceeds, together with any Common Units issued to Diamondback pursuant to the preceding sentence, the “Deferred Issuance and Distribution”), which shall be treated as reimbursement of pre-formation capital expenditures under Treasury Regulation Section 1.707-4(d).

Deferred Issuance and Distribution. Section 3.1 Upon the earlier to occur of the expiration of the Underwriters’ Option period or the exercise in full of the Underwriters’ Option, MLP shall issue to Diamondback a number of additional Common Units that is equal to the excess, if any, of (x) the total number of Option Units over (y) the aggregate number of Common Units, if any, actually purchased by and issued to the Underwriters pursuant to the exercise(s) of the Underwriters’ Over-Allotment Option. Upon each exercise of the Underwriters’ Option, MLP shall distribute to Diamondback an amount of cash equal to the proceeds, net of the Underwriters’ Discount, of each such exercise (such net proceeds, together with any Common Units issued to Diamondback pursuant to the preceding sentence, the “Deferred Issuance and Distribution”), which shall be treated as reimbursement of pre-formation capital expenditures under Treasury Regulation Section 1.707-4(d).