Company: CLPR
Filing Date: 2025-01-23
Form Type: S-3
Source: 0001437749-25-001690
Chunk: 44

Company: Clipper Realty Inc.
Filing Date: 2025-01-23
Form: S-3
Chunk 44
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 each of the LLC subsidiaries and the continuing investors own class B units of each of the LLC subsidiaries. The following table sets forth information about the number of class B LLC units that are held by the continuing investors in each LLC subsidiary:

| LLC Subsidiary                  |     | Number of Class B LLC Units held 
 by Continuing Investors          |            |
| Renaissance Equity Holdings LLC |     |                                  |  5,216,987 |
| Berkshire Equity LLC            |     |                                  | 12,694,841 |
| Gunki Holdings, LLC             |     |                                  |  1,768,174 |
| 50/53 JV LLC                    |     |                                  |  6,637,394 |

The managing member is authorized to acquire interests in, and manage and control additional limited liability companies, limited partnerships or any other entities that will become LLC subsidiaries and to issue additional LLC units or equivalent interests from time to time, on such terms and conditions and for such contributions (in cash or in kind) as the managing member may establish in its sole and absolute discretion, without the approval or consent of any non-managing member, including: (i) upon the conversion, redemption or exchange of any debt, units, interests or other securities issued by an LLC subsidiary; (ii) for less than fair market value; and (iii) in connection with any merger of any other entity into an LLC subsidiary if the applicable merger agreement provides that entities are to receive units in exchange for their interests in such entity merging into an LLC subsidiary.

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The LLC agreements generally provide that the managing member may cause the LLC subsidiaries to make quarterly (or more frequent) distributions of all, or such portion as the managing member may in its sole and absolute discretion determine, of available cash (which is defined to be cash available for distribution as determined by the managing member). The holders of the class B LLC units are entitled to a preferred distribution equal to the lesser of (i) the per OP unit distribution paid by the operating partnership or (ii) a pro rata share (determined for this purpose without regard to any class A LLC units held by the operating partnership) of all of the cash flow of the applicable LLC subsidiary. The class A LLC units held by our operating partnership are entitled to any remaining cash flow of such LLC subsidiary, subject to the discretion of the managing member of the LLC subsidiary to hold surplus amounts in reserve for application in future periods, including distributions to holders of class B LLC