Common use of Involuntary Resignation Clause in Contracts

Involuntary Resignation. Immediately upon the occurrence of an Involuntary Resignation, the successor of the resigned Member shall thereupon become an Interest Holder but shall not be admitted as a Member by the Manager. The successor Interest Holder shall have all the rights of an Interest Holder but shall not be entitled to receive in liquidation of the Interest, the fair market value of the Member’s Interest as of the date the Member involuntarily resigned from the Company.

Appears in 2 contracts

Sources: Operating Agreement, Operating Agreement

Involuntary Resignation. Immediately upon the occurrence of an Involuntary Resignation, the successor of the resigned Member shall thereupon become an Interest Holder but shall not be admitted as a Member by the Manager. The successor Interest Holder shall have all the rights of an Interest Holder but shall not be entitled to receive in liquidation of the Interest, the fair market value of the Member’s Interest as of the date the Member involuntarily resigned from the Company.

Appears in 1 contract

Sources: Operating Agreement