Distributions

12 Months Ended

Dec. 31, 2018

(13)	Distributions

The Board of Directors of Synlogic, LLC had the authority to determine the amount, if any, of proceeds available for distribution to unit holders. In the event that a distribution of proceeds was declared by the Board of Directors, such proceeds would have been distributed in accordance with the following order of priority:

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first, to holders of Class B Preferred Units, pro rata in proportion to their unpaid contributed capital, until such holder had received an amount equal to its capital contribution;

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second, to holders of Class A Preferred Units and Class A Contingently Redeemable Preferred Units, pro rata in proportion to their unpaid contributed capital, until such holder had received an amount equal to its capital contribution;

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third, to all holders of preferred units, common units and incentive units, pro rata in proportion to the remaining amount to be distributed, until an aggregate amount had been distributed in respect of each preferred unit, common unit and incentive unit equal to the greatest aggregate amount per unit distributed in respect of any preferred unit under the first and second priority described above; provided, that no holder of an incentive unit shall participate in any distributions until a total amount equal to the threshold price with respect to such incentive unit has been distributed in respect of any common unit outstanding on the date of issuance of such incentive unit subsequent to the issuance of such incentive unit;

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fourth, to each holder of certain incentive units for which the Board of Directors had established a strike price, pro rata in proportion to the remaining amount to be distributed, an amount equal to the difference between the strike price for such incentive unit, and the threshold price for such incentive unit; and

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thereafter, to all holders of preferred units, common units and incentive units, pro rata in proportion to their percentage interest.

No distributions were made to unit holders prior to the 2017 Reorganization.