Common use of Rights of Unit Owners; Forfeiture of Interest Clause in Contracts

Rights of Unit Owners; Forfeiture of Interest. The Unit Owners shall have no rights to vote on any decisions made by either the Trustor or the Trustees with respect to this Trust. In addition, this Trust shall be a spendthrift trust and prior to distribution of the working interests as provided in Article V hereof, the Unit Owners shall have no right to sell, assign, pledge, hypothecate, mortgage or dispose of the Units. In addition, in the event of the termination of employment or the consulting agreement or contract of any Unit Owner prior to the expiration of one (1) year from the date of this Trust for any reason, other than death or total and permanent disability, his Units shall be deemed to be forfeited and shall be reallocated among the remaining participating Unit Owners, pro rata.

Appears in 6 contracts

Samples: Louisiana (Clayton Williams Energy Inc /De), Trust Agreement (Clayton Williams Energy Inc /De), Trust Agreement (Clayton Williams Energy Inc /De)

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