Termination Reorganization Clause Samples
The TERMINATION/REORGANIZATION clause defines the conditions under which a contract may be ended or significantly altered due to changes in the structure or operations of one or more parties. Typically, this clause outlines specific events—such as mergers, acquisitions, insolvency, or substantial changes in ownership—that trigger the right to terminate or renegotiate the agreement. Its core function is to provide a clear mechanism for parties to address major organizational changes, thereby reducing uncertainty and protecting their interests if the business landscape shifts dramatically.
Termination Reorganization. Section 8.01 Termination of the Trust or any Series or Class.
(a) The Sponsor may terminate the Trust or any Series or Class at any time for any reason in its sole discretion, however, notwithstanding the foregoing, if the Trust (or a Series as the case may be) fails to qualify for treatment or ceases to be treated as a “grantor trust” under the Code or any comparable provision of the laws of any State or other jurisdiction where that treatment is sought, the Sponsor will evaluate whether it is advisable and the best interest of the Shareholders to terminate the Trust or any Series thereof as a result of such tax treatment or change in tax treatment, reorganize a Series into a new Series of the Trust or continue the Trust and Series without further action.
(b) Written notice of termination with respect to the Trust, Series or Class, specifying the anticipated date of termination and the anticipated period during which the assets of the Trust or such Series will be liquidated, generally shall be given by the Sponsor to Shareholders of the Trust or Series, as applicable, at least thirty (30) days prior to termination of the Trust, Series or Class. Within a reasonable period of time after such termination the Sponsor shall, subject to any applicable provisions of law, sell all of the Solana or other Digital Assets not already distributed to Authorized Participants redeeming Creation Units, as provided herein, if any, in such a manner so as to effectuate orderly sales and a minimal market impact, and may thereafter hold the net proceeds of any such sale, together with any other cash then held by it under this Trust Agreement, uninvested and without liability for interest, for the pro rata benefit of the beneficial owners of Shares that had not theretofore been redeemed. The Sponsor shall not be liable for or responsible in any way for depreciation or loss incurred by reason of any sale or sales made in accordance with the provisions of this Section 8.01. The Sponsor may suspend its sales of Solana or other Digital Assets upon the occurrence of unusual or unforeseen circumstances, including, but not limited to, a suspension in trading of Solana or other Digital Assets. Upon receipt of proceeds from the sale of the last Solana or other Digital Assets held hereunder, the Sponsor shall:
(i) pay to itself individually from the Trust an amount equal to the sum of (1) any compensation due it for extraordinary or other services, (2) any advances made but not yet repai...
Termination Reorganization