Common use of Effect of Distribution of Preferred Units Preference Amount Clause in Contracts

Effect of Distribution of Preferred Units Preference Amount. For purposes of clarity, the Parties acknowledge that the purpose of the foregoing payment provisions in Section 1.7(b) is to give effect to the relative distribution preferences and priority of the Preferred Units pursuant to the terms of the Operating Agreement as in effect immediately prior to the Effective Time. The effect of this priority, when taken together with the fact that a portion of the Merger Consideration is subject to indemnification and expense escrow arrangements as well as the earnout, means that the Common Unitholders and Cashout UAR Holders may not ultimately receive any payment of Merger Consideration.