Common use of No Bonding Clause in Contracts

No Bonding. Notwithstanding anything to the contrary as may be provided by law, if, under Section 10.02(e), the Company treats a Breaching Member as an assignee of Units in the Company, the Company shall not be obligated to secure the value of the Breaching Member’s Units by bond or otherwise; provided, however, that if a court of competent jurisdiction determines that, in order to continue the business of the Company such value must be so secured, the Company may provide such security. If the Company provides such security, the Breaching Member shall not have any right to participate in Company profits or distributions during the remaining term of the Company, or to receive any interest on the value of such Units.

Appears in 1 contract

Sources: Operating Agreement (JH Designs, Inc.)

No Bonding. Notwithstanding anything to the contrary as may ---------- be provided by law, if, under Section 10.02(e18.2(e), the Company treats a Breaching Member as an assignee of Units in the Company, the Company shall not be obligated to secure the value of the Breaching Member’s 's Units by bond or otherwise; provided, however, that if a court of competent jurisdiction determines that, in order to continue the business of the Company such value must be so secured, the Company may provide such security. If the Company provides such security, the Breaching Member shall not have any right to participate in Company profits or distributions during the remaining term of the Company, or to receive any interest on the value of such Units.

Appears in 1 contract

Sources: Investment and Shareholders Agreement (Facilicom International Inc)