What is a pro rata redemption?

The Company agrees that if it shall mandate the exchange of any of the Exchangeable Preferred Stock, that it shall make such exchange pro-rata among all Investors in proportion their respective initial purchases of such securities pursuant to this Agreement.

What does pro rata mean in salary?

Let’s start with a definition. In its most basic form, a pro rata salary is an amount of pay you quote an employee based on what they would earn if they worked full-time. So, someone who works ‘pro rata’ is getting a proportion of a full-time salary.

How do I work out pro rata pay?

How to calculate pro rata salary

1. Divide the full-time annual salary by 52 (number of weeks)
2. Divide the result by 40 (standard full-time weekly hours) to get the hourly rate.
3. Multiply the hourly rate by the number of actual work hours per week.
4. Multiply this by 52 to get the annual pro rata salary.

Is the redemption price on a pro rata basis?

The notes are redeemed on a pro rata basis at a redemption price equal to 101.458 percent of the principal amount redeemed. However if the employee works less than five days per week the increase will be on a pro rata basis.

What is the meaning of pro rata in bankruptcy?

Pro Rata. [Latin, Proportionately.] A phrase that describes a division made according to a certain rate, percentage, or share. In a Bankruptcy case, when the debtor is insolvent, creditors generally agree to accept a pro rata share of what is owed to them.

What does it mean to have pro rata participation rights?

Pro-rata participation rights, or pro-rata investing rights, guarantee existing investors the right to participate in future fundraising activities. Pro-rata participation rights allow private investors to maintain and/or expand their share of a business by participating in future funding rounds

How is the redemption of a stock determined?

Whether or not a redemption meets the requirements of subparagraphs (A) and (B) of paragraph (2) shall be determined without regard to whether or not the redemption is pro rata with respect to all of the shareholders of the corporation.