Removal Upon Assignment Clause Samples
The Removal Upon Assignment clause establishes the conditions under which a party must remove certain obligations, rights, or interests from an agreement if they assign their position to another party. Typically, this clause applies when a party transfers its contractual rights or duties to a third party, requiring the original party to ensure that specific provisions—such as guarantees, security interests, or personal undertakings—are released or terminated upon assignment. Its core practical function is to prevent lingering liabilities or obligations for the original party after an assignment, thereby ensuring a clean transfer and reducing the risk of future disputes.
Removal Upon Assignment. If the Operator assigns part of its Working Interest (excluding an interest assigned to an Affiliate) and the assignment reduces the Operator’s Working Interest to less than the Working Interest of a Non-Operating Party, whether accomplished by one or more assignments, then the removal of the Operator requires approval by Vote.
Removal Upon Assignment. 4.4.2 Removal for Cause by Vote . . . . . . . . . . . . . . . . . . 4.5
Removal Upon Assignment. If the Operator assigns a ten percent (10%) or greater Working Interest in a Designated Prospect (excluding any interest assigned to an Affiliate) which reduces the Operator's Working Interest in the Designated Prospect to less than the Working Interest of another Non-Operating Party (and in Mobil s case, the combined Mobil ownership), whether accomplished by single or multiple assignments, then the Operator may be removed by vote of the Parties as a General Matter. Provided however, the Operator shall not be removed solely on the basis of a reduced Working Interest when the reduced Working Interest is equal to or larger than the next largest Working Interest of a Party (and in Mobil s case, the combined Mobil ownership) in the Designated Prospect.