Recapitalization, Exchanges, Etc. Affecting Units Clause Samples
The "Recapitalization, Exchanges, Etc. Affecting Units" clause defines how changes to a company's capital structure—such as stock splits, mergers, or exchanges—impact the rights and obligations associated with units or securities covered by the agreement. In practice, this clause ensures that if the company undergoes events like issuing additional shares, consolidating units, or reorganizing its equity, the terms of the agreement (such as conversion rates or entitlements) are adjusted accordingly to maintain the parties' original economic positions. Its core function is to protect stakeholders from unintended dilution or disadvantage due to corporate actions, thereby preserving fairness and the intended value of their holdings.
Recapitalization, Exchanges, Etc. Affecting Units. The provisions of this Agreement shall apply to the full extent set forth herein with respect to any and all units of the Partnership or any successor or assign of the Partnership (whether by merger, consolidation, sale of assets or otherwise) that may be issued in respect of, in exchange for or in substitution of, the Registrable Securities, and shall be appropriately adjusted for combinations, unit splits, recapitalizations, pro rata distributions of units and the like occurring after the date of this Agreement.
Recapitalization, Exchanges, Etc. Affecting Units. The provisions of this Agreement shall apply to the full extent set forth herein with respect to any and all units of the Partnership or any successor or assign of the Partnership (whether in connection with a Series A Change of Control or Partnership Restructuring Event or by merger, acquisition, consolidation, reorganization, sale of assets or otherwise) that may be issued in respect of, in exchange for or in substitution of, the Registrable Securities, and shall be appropriately adjusted for combinations, unit splits, recapitalizations, pro rata distributions of units and the like occurring after the date of this Agreement. As a condition to the effectiveness of any transaction discussed in the prior sentence, the Partnership shall make provision to ensure that any successor or assign of the Partnership either (i) acknowledges, adopts and assumes in full the Partnership’s obligations pursuant to this Agreement or (ii) enters into a new registration rights agreements with the holders of the Series A Preferred Units providing for the same rights set forth herein.