High Distribution Units Clause Samples
The 'High Distribution Units' clause defines the criteria and implications for units or products that exceed a specified threshold of distribution or sales volume. Typically, this clause outlines what constitutes a 'high distribution unit,' such as a product that is sold in a large number of outlets or achieves a certain sales milestone, and may trigger additional obligations, royalties, or reporting requirements for the parties involved. Its core practical function is to ensure that both parties are aware of and prepared for the increased administrative, financial, or logistical considerations that arise when a product reaches widespread distribution, thereby allocating responsibilities and managing expectations.
High Distribution Units. High Distribution Units shall represent Founding/Working Partner Interests in the Partnership.
High Distribution Units. Each Unit underlying such Other BGC Holdings Limited Partnership Interest designated as an HD-Unit issued and outstanding immediately prior to the Effective Time that:
(I) is a BGC Holdings Exchange Right Interest (whether such HD Unit is a Founding Partner Unit or a Working Partner Unit) shall be converted automatically into a number of fully paid and nonassessable shares of Holdco Class A Common Stock equal to the number of such HD-Units underlying such Other BGC Holdings Limited Partnership Interest multiplied by the Exchange Ratio, subject to Section 2.5 with respect to fractional shares;
(II) is not a BGC Holdings Exchange Right Interest, but where such HD Unit is a Founding Partner Unit, shall be converted automatically into a Holdco RSU Award with the terms and conditions (including vesting terms) set forth on Schedule I hereto and relating to a number of shares of Holdco Class A Common Stock equal to the number of such HD-Units underlying such Other BGC Holdings Limited Partnership Interest multiplied by the Exchange Ratio (and rounded up to the nearest whole share of Holdco Class A Common Stock).