Examples of Side Agreement in a sentence
SIDE AGREEMENT BETWEEN XXXXX AND XXXX Xxxxx and Xxxx have entered into an agreement ("Side Agreement") giving each other the option and right to purchase the other's Units ("Purchase Right") in the event of the termination of the other's membership with the Company, including the withdrawal, expulsion, bankruptcy, dissolution, or death of such person ("Dissociation Event").
If Xxxxx is the Manager at the time of Separation, then Xxxxx will have the authority to approve the transfer of Units from Xxxx to Brown under the Side Agreement.
If Xxxx acquires Xxxxx'x Units under the Side Agreement, then Xxxx may acquire enough Units to give her a majority of the outstanding Units, and, in such event, Xxxx would have sufficient votes to appoint herself the Manager of the Company, giving her substantial control over the Company's operations.
If either Xxxxx or Xxxx suffered a Dissociation Event and the other exercised the Purchase Right with respect to such event, the Side Agreement would result in either Brown or Xxxx acquiring ownership of the other's Units, and not the Company, and possibly using a different process to determine the fair market value of the Units.
This Agreement, immediately upon its full execution, will be automatically incorporated by reference into the Side Agreement.