Common use of Internal Dispute Resolution Procedure Clause in Contracts

Internal Dispute Resolution Procedure. Because of the nature of the company is to generate Profits on behalf of its Members, it is imperative that a Members dispute with the manager and/or other Members is allowed and resolved to diminish the Profits available to other Members or resources necessary to operate the Company. Xxxxxxx Homes Xxxxxxx Loans | 42 Company Operating Agreement Litigation could hamper the diversion of Company Profits to pay attorneys fees or could tie up Company funds necessary for operation of the Company, impacting the profitability of the investment for all Members. The only way to prevent such needless expense is to have a comprehensive Internal Dispute Resolution Procedure (Procedure) in place, to which each of the Members have specifically agreed in advance or membership in the Company. The Procedure described below requires an aggrieved party to make a series of steps designed to amicably resolve a dispute on terms that will preserve the interests of the Company and the other non disputing Members, before invoking a costly remedy, such as arbitration. In the event of a dispute, claim, question, or disagreement between the Members or between the Manager and one or more Members arising from or relating to this Agreement, the breach thereof, or any associated transaction, or to interpret or enforce any rights or duties under the Act (hereinafter Dispute), the Manager and Members hereby agree to resolve such Dispute by strictly adhering to the Procedure provided below. The following procedure has been adapted for purposed of this Agreement from guidelines and rules published by the American Arbitration Association (AAA):

Internal Dispute Resolution Procedure. Because of the nature of the company Company is to generate Profits on behalf of its MembersLimited Partners, it is imperative that a Members one Limited Partner’s dispute with the manager General Partner and/or other Members Limited Partners is not allowed and resolved to diminish the Profits available to other Members Limited Partners or resources necessary to operate the Company. Xxxxxxx Homes Xxxxxxx Loans | 42 Company Operating Agreement Litigation could hamper the require diversion of Company Profits to pay attorneys attorney’s fees or could tie up Company funds necessary for operation of the CompanyCompany or the Properties, impacting the profitability of the investment for all MembersLimited Partners. The only way to prevent such needless expense is to have a comprehensive Internal Dispute Resolution Procedure (Procedure) in place, to which each of the Members Limited Partners have specifically agreed in advance or membership of Limited Partnership in the Company. The Procedure described below requires an aggrieved party to make take a series of steps designed to amicably resolve a dispute on terms that will preserve the interests of the Company and the other non non-disputing MembersLimited Partners, before invoking a costly remedy, such as arbitration. In the event of a dispute, claim, question, or disagreement between the Members Limited Partners or between the Manager General Partner and one or more Members Limited Partners arising from or relating to this Agreement, the breach thereof, or any associated transaction, or to interpret or enforce any rights or duties under the Act (hereinafter Dispute), the Manager General Partner and Members Limited Partners hereby agree to resolve such Dispute by strictly adhering to the Procedure provided below. The following procedure Procedure has been adapted for purposed purposes of this Agreement from guidelines and rules published by the American Arbitration Association (AAA):