Common use of Reinvestment Election Clause in Contracts

Reinvestment Election. Members must elect to (a) receive cash with respect to the monthly income distributions from the Company in the amount of that Member’s share of cash available for distribution, including the Preferred Return due to the Member, or (b) allow the reinvestment through purchase of additional Membership Interests at the price of One Thousand Dollars ($1,000) with respect to the monthly income distributions from the Company in the amount of that Member’s share of cash available for distribution, including the Preferred Return due to the Member. Fractional interests may be purchased by the Member who has elected to reinvest through the purchase of additional Membership Interests. Members must elect to receive cash or reinvest all of their monthly income distributions, including their Preferred Returns. No partial reinvestment is permitted. If no election is made, then the monthly income distribution and a Preferred Return will be automatically reinvested into the Company to purchase additional Membership Interests. Members may change their election at any time upon Thirty (30) days written notice to the Company. Upon receipt and after the Thirty (30) day notice has occurred, the Member’s election shall be changed and reflected on the following first day of the month in which the Member is entitled to receive a distribution. Notwithstanding the preceding sentences, the Manager may at any time immediately commence with income distributions in cash only (hence, suspending the reinvestment option for such Member(s)) to any Member(s) in order for the Company to remain exempt from the ERISA plan asset regulations.