Unissued Units Clause Samples

The "Unissued Units" clause defines how shares or units of ownership that have not yet been allocated or issued by a company are treated under an agreement. Typically, this clause clarifies whether these unissued units are reserved for future issuance, subject to certain conditions, or excluded from calculations such as ownership percentages or voting rights. For example, it may specify that unissued units are not considered when determining the proportionate interests of current holders. The core function of this clause is to ensure clarity regarding the treatment of unissued equity, preventing disputes over ownership calculations and future allocations.