DISTRIBUTION OF DISSOCIATING MEMBERS INTEREST. Upon determination of the dissociating Members’ interest value, the value will be a debt of the Company. The dissociating Member will only be able to demand payment of this debt at dissolution of the Company or by the following method:
(a) The Company will make timely payments.
(b) The Company will only be required to make payments towards dissociating Member’s debt if the Company is profitable and passes income to current Members.
(c) The Company must make a debt payment to the dissociating Member if the Company’s income surpassed 50% of the total determined value of the dissociating Members’ interest in a taxable year. (Example: If dissociating Members’ value was $100,000 and current Member(s) received over $50,000 taxable income in the taxable year, the Company would owe a debt payment to dissociating Member. If current Member(s) only received $40,000 in passed income, there would be no payment due.)
(d) The debt payment must be at least 10% of the value of the passed income to current Members.
(e) The company must make payment to dissociating Member within sixty (60) days of the end of the Company’s taxable year.
(f) The payment schedule will continue until the dissociating Member’s debt is paid.
(g) If the Company dissolves, the dissociating Member will be a regular creditor and payment will follow Section 00-00-000 of the Act.
(h) The dissociating Member’s membership interest as assigned to current Members shall NOT accrue interest.
(i) The Company may pay the amount owed to the dissociating Member at any time.
DISTRIBUTION OF DISSOCIATING MEMBERS INTEREST. Upon determination of the dissociating Members’ interest value, the value will be a debt of the Company. The dissociating Member will only be able to demand payment of this debt at dissolution of the Company or by the following method:
