Common use of Option to Purchase due to Bankruptcy Clause in Contracts

Option to Purchase due to Bankruptcy. In the event of the Bankruptcy of a Member (hereinafter called the “Bankrupt Member”), the Manager initially and thereafter the other Members (hereinafter referred to as “Remaining Members”) shall have the option to purchase the Membership Interest of the Bankrupt Member. Such option may be exercised first by the Manager for a period of thirty (30) days and thereafter by the Remaining Members, should the Manager decline to exercise its option, giving written notice thereof within thirty (30) days after its receipt of notice of a Bankruptcy. Notice of exercise of the option shall be given to the Bankrupt Member and to any trustee, receiver or other legal representative or holder or transferee of the Bankrupt Member’s interest in the Company (hereinafter called an “Bankruptcy Transferee”) of which the Remaining Members have been given notice, at the address of such Bankruptcy Transferee contained in any such notice of Bankruptcy. If the Remaining Members have not elected within the period specified herein to purchase the Bankrupt Member’s Interest as provided, the Bankruptcy Transferee of such Interest shall, within thirty (30) days thereafter, execute and deliver to the Company such documents, in a form reasonably satisfactory to the counsel for the Remaining Members, as may be necessary and requisite to evidence and effect the transfer of such Interest to the Bankruptcy Transferee, together with its acceptance of this Agreement and the rights and duties of a Member hereunder. Within thirty (30) days after delivery of such documents the Company shall notify the Bankruptcy Transferee of its acceptance of such documents and of the Bankruptcy Transferee as a Member, the Bankruptcy Transferee shall thereupon be deemed a Member.

Option to Purchase due to Bankruptcy. In the event of the Bankruptcy of a Member (hereinafter called the “Bankrupt Member”), the Manager initially and thereafter the other Members (hereinafter referred to as “Remaining Members”) shall have the option to purchase the Membership Interest of the Bankrupt Member. Such option may be exercised first by the Manager for a period of thirty (30) days and thereafter by the Remaining Members, should the Manager decline to exercise its option, giving written notice thereof within thirty (30) days after its receipt of notice of a Bankruptcy. Notice of exercise of the option shall be given to the Bankrupt Member and to any trustee, receiver or other legal representative or holder or transferee of the Bankrupt Member’s interest in the Company Fund (hereinafter called an “Bankruptcy Transferee”) of which the Remaining Members have been given notice, at the address of such Bankruptcy Transferee contained in any such notice of Bankruptcy. If the Remaining Members have not elected within the period specified herein to purchase the Bankrupt Member’s Interest as provided, the Bankruptcy Transferee of such Interest shall, within thirty (30) days thereafter, execute and deliver to the Company Fund such documents, in a form reasonably satisfactory to the counsel for the Remaining Members, as may be necessary and requisite to evidence and effect the transfer of such Interest to the Bankruptcy Transferee, together with its acceptance of this Agreement and the rights and duties of a Member hereunder. Within thirty (30) days after delivery of such documents the Company Fund shall notify the Bankruptcy Transferee of its acceptance of such documents and of the Bankruptcy Transferee as a Member, the Bankruptcy Transferee shall thereupon be deemed a Member.