Common use of Effect of Dissociation Clause in Contracts

Effect of Dissociation. The “dissociation date” with respect to a dissociating member is the effective date of the member’s expulsion. If another event causes the dissociation, the dissociation date is the later of the date of the event, or the first day the company has knowledge of the event. Within 60 days after the dissociation date, the company may elect to purchase all or part of the dissociating member’s ownership interest by giving notice of the election to the dissociating member and all other members. If the company does not elect to purchase all of the dissociating member’s interest, one or more of the other members may elect to purchase the remaining interest by giving written notice to the dissociating member, the company, and the other members. This notice must be given within 15 days after the 60-day period for the company to purchase the interest expires. If more than one member elects to make the purchase, the electing members have the right to purchase the interest pro rata in accordance with their ownership interests or on such other basis as they agree. No election to purchase a dissociating member’s interest will be effective unless the election is made by the company or the other members to purchase the dissociating member’s entire interest. But a failure to purchase the interest of a dissociating member will not cause the company to dissolve.

Effect of Dissociation. The “dissociation date” with respect to a dissociating member is the effective date of the member’s expulsion. If another event causes the dissociation, the dissociation date is the later of the date of the event, or the first day the company has knowledge of the event. Within 60 days after the dissociation date, the company may elect to purchase all or part of the dissociating member’s ownership interest by giving notice of the election to the dissociating member and all other members. If the company does not elect to purchase all of the dissociating member’s interest, one or more of the other members may elect to purchase the remaining interest by giving written notice to the dissociating member, the company, and the other members. This notice must be given within 15 days after the 60-day period for the company to purchase the interest expires. If more than one member elects to make the purchase, the electing members have the right to 21 Xxxxx Xxxxx Law- Not to be used without legal representation purchase the interest pro rata in accordance with their ownership interests or on such other basis as they agree. No election to purchase a dissociating member’s interest will be effective unless the election is made by the company or the other members to purchase the dissociating member’s entire interest. But a failure to purchase the interest of a dissociating member will not cause the company to dissolve.

Effect of Dissociation. The “dissociation date” date with respect to a dissociating member Member is the effective date of the member’s Member s withdrawal or the date of the Member s expulsion. If another event causes the dissociation, the dissociation date is the later of the date of the event, or the first day the company Company has knowledge of the event. event Within 60 180 days after the dissociation date, the company Company may elect to purchase all or part of the a dissociating member’s Member s ownership interest by giving notice of the election to the dissociating member Member and all other membersMembers. If the company does election is not elect to purchase all made by the Company during this period of the dissociating member’s interesttime, one or more of the other members Members may elect to purchase the remaining dissociating Member s ownership interest by giving written notice to the dissociating memberMember, the companyCompany, and the other membersMembers. This notice must be given within 15 days after the 60180-day period for the company Company to purchase the interest expires. If more than one member Member elects to make the purchase, the electing members Members have the right to purchase the interest pro rata in accordance with their ownership interests or on such other basis as they agree. No election to purchase a dissociating member’s Member s ownership interest will be effective unless the election is made by the company Company or the other members Members to purchase the dissociating member’s Member s entire interest. But a failure interest Upon dissociation the Company will not dissolve merely because the Company and/or the other Members fail to purchase the dissociating Member s interest. 9.5 Status of Member. A Member ceases to be a Member of the Company on the dissociation date. After that, the dissociating Member has no rights as a Member in the Company, 10 Operating Agreement 11 except the right to have the Member s ownership interest of a dissociating member will not cause the company to dissolve.purchased in accordance with this agreement, if any. 9.6

Effect of Dissociation. The For purposes of this agreement the “dissociation date” with respect to a dissociating member is will be the effective date of the member’s withdrawal or the date of the member’s expulsion. If another event causes causing the dissociationdissociation of a member occurs, the dissociation date is the later of will be the date of the event, or if later, the first day date on which the company has acquires knowledge of the event. Within 60 days after the dissociation date, the company may elect to purchase all or part of the dissociating member’s ownership interest shares by giving notice of the election to the dissociating member and all other members. If the election is not made by the company does not elect to purchase all during this period of the dissociating member’s interesttime, one or more of the other members may elect to purchase the remaining interest dissociating member’s ownership shares by giving written notice of the election to the dissociating member, the company, and the other members. This notice must be given within 15 days after the 60-day period for the company to purchase the interest shares expires. If more than one member elects to make the purchase, the electing members have the right to purchase the interest shares pro rata in accordance with their ownership interests or on such other basis as they agreeshares. No election to purchase a dissociating member’s interest ownership shares will be effective unless the election is made by the company or the other members to purchase all of the dissociating member’s entire interestshares—dissociating members are not required to sell part of their ownership shares. But a failure If neither the company nor the other members elects to purchase the interest of a dissociating member will not cause member’s ownership shares within the allowable time limits, the company to dissolvewill be dissolved, and its business must be wound up.