Company: CLPR
Filing Date: 2025-04-30
Form Type: DEF 14A
Source: 0001437749-25-013840
Chunk: 117

Company: Clipper Realty Inc.
Filing Date: 2025-04-30
Form: DEF 14A
Chunk 117
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 fractional limited partnership interests in Clipper Realty L.P., a Maryland limited partnership (together with any successor entity, the “Operating Partnership”), the entity through which Clipper Realty conducts its business and an entity that has elected to be treated as a partnership for federal income tax purposes, of one or more classes (“LTIP Units”) established pursuant to the Operating Partnership’s agreement of limited partnership, as amended from time to time. Awards of LTIP Units will be valued by reference to, or otherwise determined by reference to or based on, Shares, and may be in such amounts and subject to such terms and conditions as the Committee may determine. LTIP Units awarded under the Plan may be (1) convertible, exchangeable or redeemable for other limited partnership interests in the Operating Partnership or Shares, or (2) valued by reference to the book value, fair value or performance of the Operating Partnership. Awards of LTIP Units are intended to qualify as “profits interests” within the meaning of IRS Revenue Procedure 93-27, as clarified by IRS Revenue Procedure 2001-43, with respect to a Grantee in the Plan who is rendering services to or for the benefit of the Operating Partnership, including its Subsidiaries.

2.7.2Calculation of Share Amount. In order to calculate the number of Shares underlying an award of LTIP Units for purposes of the Share Limit, the Committee will establish in good faith the maximum number of Shares to which a Grantee receiving such award of LTIP Units may be entitled upon fulfillment of all applicable conditions set forth in the relevant award documentation, including vesting conditions, partnership capital account allocations, value accretion factors, conversion ratios, exchange ratios and other similar criteria. If and when any such conditions are no longer capable of being met, in whole or in part, the number of Shares underlying such awards of LTIP Units (and for purposes of the Share Limit) will be reduced accordingly by the Committee. Awards of LTIP Units may be granted either alone or in addition to other Awards. The Committee may allow awards of LTIP Units to be held through a limited partnership, or similar “look-through” entity, and the Committee may require such limited partnership or similar entity to impose restrictions on its partners or other beneficial owners that are not inconsistent with the provisions of this Section 2.7. For the avoidance of doubt, LTIP Units awarded under this Section 2.7 may be issued for no cash consideration.

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2.