Company Right to Purchase Units Clause Samples

Company Right to Purchase Units. If (A) any Member holds at any time less than the minimum number of Units required by Section 3.2(a) or more than the maximum number of Units permitted under Section 3.2(b), or if any Class A Units are held by any Person who is not a Producer, and such violation of this Agreement is not cured within one (1) year after notice thereof by the Company, or (B) any Member is or becomes a Competitor, that Member's voting rights, if any, shall be suspended as provided in Section 3.14 below and, in addition, the Company shall have the right (but not the obligation) to purchase, and the Member shall be required to sell (i) in the case of a violation of Section 3.2(a), 3.2(b)(ii) or 3.2(b)(iii), all of the Units owned by such Member, and (ii) in the case of a violation of Section 3.2(b)(i), that Member's Units in excess of the two percent (2%) maximum provided for in Section 3.2(b)(i). The purchase price for Units purchased by the Company under this Section shall be an amount equal to the Established Value of the Units determined at the time the Company notifies the Member of the violation and shall be payable, at the Company's option, in one lump sum or equal installments over a period of five (5) years, with interest at a rate equal to the interest rate for 91 day U.S. Treasury bills, adjusted quarterly.