Common use of Right of Repurchase Clause in Contracts

Right of Repurchase. In the event of the Participant’s Termination of Service, Management LLC (acting for itself or, if applicable, its assignee) shall have an option for a period commencing on the day following such Termination of Service and ending twelve (12) months thereafter to purchase all or any portion of the Participant’s Vested Units as of the date of the Participant’s Termination of Service. The purchase price of each Vested Unit for which Management LLC (or its assignee) exercises such option shall be equal to the Fair Market Value per Management Unit as of the date of such repurchase; provided, however, that if the Participant’s Termination of Service is for Cause, then the purchase price of any Vested Units for which Management LLC (or its assignee) exercises its option shall be for an aggregate price of one dollar ($1.00). Management LLC reserves the right, in the sole discretion of the Manager of Management LLC, to satisfy such purchase price by providing the Participant with an unsecured promissory note payable in installments over a period not to exceed five years with interest at the prevailing prime rate in effect at the time of such purchase.