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Extraction Summary

3
People
4
Organizations
0
Locations
0
Events
2
Relationships
2
Quotes

Document Information

Type: Legal/financial document (excerpt from a private placement memorandum)
File Size:
Summary

This document is page 34 of a Private Placement Memorandum or Limited Partnership Agreement for an entity named KUE (likely KUE LLC). It defines 'Related Party Transactions' and establishes governance thresholds: transactions over $1 million involving the Principals require specific definitions, while those between $1 million and $50 million require Independent Committee or Limited Partner approval. Transactions exceeding $50 million require approval from both the Independent Committee and a majority of unaffiliated Limited Partners.

People (3)

Name Role Context
Principals Key Stakeholders
Individuals whose transactions with KUE are subject to scrutiny as 'Related Party Transactions'.
Investors Stakeholders
Mentioned in the context of ensuring amendments are not disadvantageous to them.
Independent Committee Oversight Body
Responsible for approving compensation, benefits, and large related party transactions.

Organizations (4)

Name Type Context
KUE
The primary entity discussed; likely a Limited Partnership or LLC.
KUE LLC
Mentioned in relation to ownership of voting stock.
General Partner
Managing entity of the partnership.
House Oversight Committee
Source of the document (implied by footer).

Relationships (2)

Principals Control/Affiliation KUE
Document regulates transactions between Principals and KUE to prevent conflicts of interest.
Independent Committee Oversight Principals
Committee must approve Principal compensation and large transactions.

Key Quotes (2)

"If the size of the related party transaction is greater than $50 million, then the transaction must be approved by both (a) the Independent Committee and (b) the holders of a majority of the Common LP Units unaffiliated with the Principals."
Source
HOUSE_OVERSIGHT_024467.jpg
Quote #1
"Related party transactions include transactions between (1) any of the Principals... and (2) KUE... involving more than $1 million"
Source
HOUSE_OVERSIGHT_024467.jpg
Quote #2

Full Extracted Text

Complete text extracted from the document (2,886 characters)

Partners to exchange their interests in KUE and the General Partner for interests in a subsidiary of KUE.
Related Party Transactions:
Related party transactions include transactions between (1) any of the Principals or any of their affiliates or any entity controlled by any of the Principals, and (2) KUE or any direct or indirect subsidiary or joint venture of KUE involving more than $1 million (including, for the avoidance of doubt, any merger, acquisition, asset purchase or similar transaction between KUE, its subsidiaries or joint ventures, on the one hand, and any person of which fifteen percent (15%) or more of the voting stock (or similar voting interests) is owned by KUE LLC or its affiliates, on the other hand). Related party transactions do not include (a) any transaction solely between or among KUE and any of its direct or indirect subsidiaries or joint ventures in which the Principals do not have any direct or indirect ownership interest (other than as a result of their ownership in the General Partner and KUE), (b) reasonable and customary director, advisory board member, or consultant compensation and benefits (including, without limitation, retirement, health, stock option and other benefit plans) as approved by the Independent Committee, provided that any such compensation, benefits and arrangements to the Principals that do not exceed $1 million in the aggregate annually shall not be subject to such approval, and customary indemnification arrangements, (c) transactions and arrangements pursuant to or contemplated by express terms of the Limited Partnership Agreement of KUE, including the "Investment in Subsidiaries" and "Co-Invest Right" described below, and any payments pursuant thereto, and the Fixed Overhead Payment described above, (d) agreements, transactions and arrangements described in "Related Party Transactions" in this Private Placement Memorandum and any amendment thereto (so long as such amendment is not disadvantageous to the Investors as a whole in any material respect) or any transaction contemplated thereby and any payments pursuant thereto, and (e) admissions of any affiliate of the Principals to KUE as a Limited Partner on terms substantially equivalent to concurrent admissions of persons that are not affiliates of the Principals.
If the size of the related party transaction is greater than $1 million and equal to or less than $50 million, then either (a) the Independent Committee must approve the transaction or (b) the transaction must be approved by the holders of a majority of the Common LP Units unaffiliated with the Principals.
If the size of the related party transaction is greater than $50 million, then the transaction must be approved by both (a) the Independent Committee and (b) the holders of a majority of the Common LP Units unaffiliated with the Principals.
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