Company: CLPR
Filing Date: 2025-02-04
Form Type: 424B5
Source: 0001437749-25-002637
Chunk: 46

Company: Clipper Realty Inc.
Filing Date: 2025-02-04
Form: 424B5
Chunk 46
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| ● | the occurrence of any sale or other disposition of all or substantially all of the assets of an LLC subsidiary or a related series of transactions that, taken together, result in the sale or other disposition of all or substantially all of the assets of the LLC subsidiary; |

| ● | the exchange (or acquisition by the operating partnership) of all LLC units that the applicable LLC subsidiary has authorized other than those held by the operating partnership; or |

| ● | the incapacity or withdrawal of the managing member, unless all of the remaining non-managing members in their sole and absolute discretion agree in writing to continue the business of the applicable LLC subsidiary and to the appointment, effective as of a date prior to the date of such incapacity, of a substitute managing member. |

Amendments to the LLC Agreements

Amendments to the LLC agreements may only be proposed by the managing member. Generally, the LLC agreements may be amended with the managing member’s approval and the approval of the non-managing members holding a majority of all outstanding LLC units of the applicable LLC subsidiary. Certain amendments that would, among other things, have the following effects, must be approved by each non-managing member adversely affected thereby:

| ● | modify the limited liability of a non-managing member; |

| ● | alter the rights of any non-managing member to receive the distributions to which such non-managing member is entitled (subject to certain exceptions); |

| ● | alter or modify the exchange rights provided by LLC agreements; or |

| ● | alter or modify the provisions governing transfer of the managing member’s interest in the subsidiary LLCs. |

Notwithstanding the foregoing, the managing member has the power, without the consent of the non-managing members, to amend the LLC agreements as may be required to:

| ● | add to the operating partnership’s obligations or surrender any right or power granted to the operating partnership or any of its affiliates for the benefit of the non-managing members; |

| ● | reflect the admission, substitution, or withdrawal of members or the termination of the LLC subsidiaries in accordance with the LLC agreements and to amend the list of LLC units holders in connection with such admission, substitution or withdrawal; |

| ● | reflect a change that is of an inconsequential nature or does not adversely affect the non-managing members as such in any material respect, or to cure any ambiguity, correct or supplement any provision in the LLC agreements not inconsistent with the law or with other provisions, or make other changes with respect to matters arising under