Common use of Compromise or Release of Obligation Clause in Contracts

Compromise or Release of Obligation. The obligation of the Sole Member or its legal representative or successor to make a contribution or otherwise pay cash or transfer property or to return cash or property paid or distributed to the Sole Member in violation of this Agreement or applicable law may not be compromised or released. Notwithstanding the compromise or release, a creditor of the Company who extends credit or otherwise acts in reasonable reliance on that obligation, after the Sole Member signs a writing that reflects the obligation and before the writing is amended or canceled to reflect the compromise or release, may choose enforce the original obligation.

Compromise or Release of Obligation. The obligation of the Sole a Member or its legal representative or successor to make a contribution or otherwise pay cash or transfer property or to return cash or property paid or distributed to the Sole Member in violation of applicable law or this Agreement or applicable law may not be compromised or released. Notwithstanding the a compromise or release, a creditor of the Company who extends credit or otherwise acts in reasonable reliance on that obligation, after the Sole Member signs a writing that reflects the obligation and before the writing is amended or canceled to reflect the compromise or release, may choose enforce the original obligation.