Company: CLPR
Filing Date: 2025-02-04
Form Type: 424B5
Source: 0001437749-25-002637
Chunk: 40

Company: Clipper Realty Inc.
Filing Date: 2025-02-04
Form: 424B5
Chunk 40
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 REIT subsidiary or entity that is disregarded as an entity separate from the general partner for U.S. federal income tax purposes; |

| ● | modify either or both the manner in which items of net income or net loss are allocated or the manner in which capital accounts are adjusted, computed or maintained (but only to the extent set forth in the partnership agreement, or to the extent required by the Code or applicable income tax regulations under the Code); |

| ● | issue additional partnership interests; and |

| ● | reflect any other modification to the partnership agreement as is reasonably necessary for the business or operations of the operating partnership or the general partner and which does not otherwise require the consent of each partner adversely affected. |

Liability and Indemnification

Neither the general partner nor its directors and officers are liable to the operating partnership, the limited partners or their assignees for losses sustained, liabilities incurred or benefits not derived as a result of errors in judgment or mistakes of fact or law or of any act or omission, so long as such person acted in good faith. The partnership agreement provides for indemnification of the general partner, its affiliates and each of their respective officers, directors, employees and any persons the general partner may designate from time to time in its sole and absolute discretion, to the fullest extent permitted by applicable law, provided that the operating partnership will not indemnify such person for (i) material acts or omissions that were committed in bad faith or were the result of active and deliberate dishonesty, (ii) any transaction for which such person received an improper personal benefit in money, property or services violation or breach of any provision of the partnership agreement, or (iii) in the case of a criminal proceeding, the person had reasonable cause to believe the act or omission was unlawful, as set forth in the partnership agreement.

The limited partners of the operating partnership have agreed that in the event of a conflict in the duties owed by our directors and officers to us and our stockholders and the fiduciary duties owed by us, in our capacity as general partner of the operating partnership, to such limited partners, we will fulfill our fiduciary duties to such limited partners by acting in the best interests of our stockholders.

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DESCRIPTION OF THE LIMITED LIABILITY COMPANY AGREEMENTS
OF OUR LLC SUBSIDIARIES</div>

The following is a summary of the material provisions of the amended and restated limited liability company agreements of our LLC subsidiaries, Renaissance, Berkshire, Gunki, and 50