Phantom Units Clause Example from Business Contracts

Phantom Units. Subject to Paragraph 4 below, each Phantom Unit that vests shall represent the right to receive payment, in accordance with Paragraph 5 below, in the form of one Unit. Unless and until a Phantom Unit vests, the Participant will have no right to payment in respect of any such Phantom Unit. Prior to actual payment in respect of any vested Phantom Unit, such Phantom Unit will represent an unsecured obligation of the Partnership, payable (if at all) only from the general assets of the Partnership.