The wording of this paragraph is not clear to me. Does the value of the Phantom Units equate to 0.25% of the FMV, or do they equate to 0.25% of 10% of full FMV?
The number of Phantom Units granted hereby is intended to equate to one-quarter of one percent (0.25%) of the Fair Market Value of the Company as if the maximum number of Phantom Units that may be awarded under the Plan are outstanding, inclusive of the Phantom Units granted hereby, which in the aggregate represent 10% of the Fair Market Value of the Company, and the remaining 90% of the Fair Market Value of the Company is represented by the outstanding Class A Units held by the Founder Group.
For example, assuming the company is valued at $10M, which of the following two calculations correctly interprets the value of 100 Phantom Units?
A) 0.25% of 10% of $10M = $2,500
B) 0.25% of 100% of $10M = $25,000