Common use of Internal Dispute Resolution Procedure Clause in Contracts

Internal Dispute Resolution Procedure. With the exception of claims related to or arising under the Federal Securities Laws and the Rules and Regulations promulgated thereunder, arising out of a Member’s investment in the Company, all other disputes, claims, questions or disagreements with the Company shall be resolved pursuant to the procedures set forth in this Section 13. For the avoidance of doubt, any claims related to or arising under the Federal Securities Laws and the Rules and Regulations promulgated thereunder, arising out of a Member’s investment in the Company are not required to be arbitrated. Because the nature of the Company is to generate Profits on behalf of its Members, it is imperative that one Member’s dispute with the Manager and/or other Members is not allowed to diminish the Profits available to other Members or resources necessary to operate the Company. Litigation could require diversion of Company Profits to pay attorney’s fees or could tie up Company funds necessary for operation of the Company, impacting the profitability of the investment for all Members. The only way to prevent such needless expense is to have a comprehensive Internal Dispute Resolution Procedure (Procedure) in place, to which each of the Members have specifically agreed in advance of membership in the Company. The Procedure described below requires an aggrieved party to take a series of steps designed to amicably resolve a dispute on terms that will preserve the interests of the Company and the other non-disputing Members, before invoking a costly remedy, such as arbitration. Other than as described above, in the event of a dispute, claim, question, or disagreement between the Members or between the Manager and one or more Members arising from or relating to this Agreement, the breach thereof, or any associated transaction, or to interpret or enforce any rights or duties under the Act (hereinafter Dispute), the Manager and Members hereby agree to resolve such Dispute by strictly adhering to the Procedure provided below. The following Procedure has been adapted for purposes of this Agreement from guidelines and rules published by the American Arbitration Association (AAA):

Internal Dispute Resolution Procedure. With the exception of No claims related to or arising under the Federal Securities Laws and the Rules and Regulations promulgated thereunder, arising out of a Member’s investment in the Company, all other disputes, claims, questions or disagreements with the Company shall be resolved pursuant federal securities laws are subject to the procedures set forth in this Section 13. For internal dispute procedure or the avoidance mandatory arbitration provision and these provisions do not impact the rights of doubt, any Limited Partners to bring claims related to or arising under the Federal Securities Laws federal securities laws or the rules and the Rules and Regulations promulgated regulations thereunder, arising out of a Member’s investment in the Company are not required to be arbitrated. Because the nature of the Company is to generate Profits on behalf of its MembersLimited Partners, it is imperative that one MemberLimited Partner’s dispute with the Manager General Partner and/or other Members Limited Partners is not allowed to diminish the Profits available to other Members Limited Partners or resources necessary to operate the Company. Litigation could require diversion of Company Profits to pay attorney’s fees or could tie up Company funds necessary for operation of the CompanyCompany or the Properties, impacting the profitability of the investment for all MembersLimited Partners. The only way to prevent such needless expense is to have a comprehensive To this end, the Company has adopted an Internal Dispute Resolution Procedure (Procedure) in place, to which each of the Members Limited Partners have specifically agreed in advance of membership Limited Partnership in the Company. The Procedure described below requires an aggrieved party to take a series of steps designed to amicably resolve a dispute on terms that will preserve the interests of the Company and the other non-disputing MembersLimited Partners, before invoking a costly remedy, such as arbitration. Other than as described above, in In the event of a dispute, claim, question, or disagreement between the Members Limited Partners or between the Manager General Partner and one or more Members Limited Partners arising from or relating to this Agreement, the breach thereof, or any associated transaction, or to interpret or enforce any rights or duties under the Act (hereinafter Dispute), the Manager General Partner and Members Limited Partners hereby agree to resolve such Dispute by strictly adhering to the Procedure provided below. The following Procedure has been adapted for purposes of this Agreement from guidelines and rules published by the American Arbitration Association (AAA):