Passive Member definition
Examples of Passive Member in a sentence
In the event of any termination pursuant to Sections 8.2(b), (c), (d) or (e) hereof, the Member which has not (i) given notice of termination, (ii) dissolved, (iii) become bankrupt, (iv) breached or (v) become disqualified, as the case may be (the "Passive Member"), shall be entitled, at its sole option, to elect by written notice to the other Member, given within 30 days after such termination, to purchase the Interest of the other Member at fair market value.
If a Member elects to become a Passive Member, then starting on the first day of the month following written notification to all other Members of the LLC of this intention, notwithstanding anything else contained in this Agreement, the Passive Member will no longer participate in the operations of the LLC or be entitled to or receive any salary or distributions in accordance with the provisions of this Section.
For purposes of this Section, "Passive Member" means a Member who has elected to relinquish all personal participation in the day to day operation of the Company.