Preferred Interest Clause Samples
The Preferred Interest clause defines the specific rights of certain investors or stakeholders to receive priority returns or distributions from a company or investment vehicle. Typically, this clause outlines the rate or amount of preferred returns that must be paid to these parties before any distributions are made to common shareholders or other participants. For example, in a private equity fund, limited partners may be entitled to a set percentage of profits before the general partners receive their share. The core function of this clause is to protect the interests of preferred stakeholders by ensuring they receive their agreed-upon returns first, thereby reducing their investment risk and clarifying the order of payments.
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Preferred Interest. Section 1.1 of the Partnership Agreement is ------------------ hereby amended to include the following definition of "Series D Preferred Interest" after the "definition of "Series C Preferred Interest" and before the definition of "Series A Preferred Stock."
Preferred Interest. The original amount of a Preferred ------------------ Interest shall equal the amount of the Capital Contribution made in consideration of such Preferred Interest pursuant to Section 3.2 of the Agreement.
Preferred Interest. The Preferred Interest is not subject to any lien, pledge or encumbrance of any nature whatsoever and the Investor is acquiring same free of any rights to same by any other party.
Preferred Interest. Enerfund hereby releases all, right, title and interest to the Preferred Interest in Openfilm, including without limitation the ownership of 1,000,000 shares of Preferred Interest previously listed on Schedule A to the Openfilm Operating Agreement.
Preferred Interest. Each of JLL, DSM and the Partnership hereby acknowledges and agrees that, notwithstanding anything to the contrary in the Partnership Agreement, DSM has deferred its right pursuant to Section 4.1(a) of the Partnership Agreement to receive any Common Stock from the Partnership in the Distribution in respect of DSM’s Preferred Unreturned Capital and Preferred Unpaid Return (each as defined in the Partnership Agreement) until the Redemption Date (as defined in the Partnership Agreement), at which time the Preferred Units (as defined in the Partnership Agreement) shall be redeemed in accordance with the terms of the Partnership Agreement.
Preferred Interest. 3.8.1 The Preferred Interest shall have the rights and obligations set forth in this Agreement.
3.8.2 At their election, the Preferred Members, upon the giving of at least sixty (60) days notice to the Management Board, may convert into Interests all, but not less than all, of their Preferred Interest and any Preferred Return Amount held by them. Such Preferred Interest and Preferred Return Amount shall be converted to a Percentage Interest, subject to the adjustments set forth in Paragraph 3.2.4 hereof, or 3.7.2 hereof, as appropriate, based upon the formula set forth below: = Percentage Interest
Preferred Interest. Prior to the fifth anniversary of the Effective Date, no Member may Transfer all or any part of its Preferred Interest other than in connection with its Transfer of all of its Common Interests, by way of a Permitted Transfer in accordance with Section 10.3; provided, however, that (i) a Preferred Interest may be Transferred in whole (but not in part) separate from the Common Interest upon the unanimous consent of the votes entitled to be cast by the Governance Committee representatives, which consent shall not be unreasonably withheld or delayed, provided that the proceeds of any such Transfer shall be used solely to fund NICC Programming and activities related thereto and (ii) a Member may pledge all or any part of its Preferred Interest apart from its Common Interest without the consent of the Governance Committee as provided in Section 10.3.