Common use of Payments for Interests Clause in Contracts

Payments for Interests. (a) If any Member’s Interest and Units are purchased because of the occurrence of a Terminating Event, the amount the Company will pay for the Interest and Units owned by such Member shall be equal to the Fair Market Value Price as of the day on which the sixty (60) day exercise period began to run. (b) If the Company purchases any Member’s Interest and Units as provided in this Section 15.3, the Company shall pay any such amounts owed therefor to such Member or his, her or its successor in interest in a lump sum or, at the discretion of the Board of Managers, in up to twenty-four (24) equal monthly payments, with interest accruing at the Prime Rate on the unpaid principal balance. If the Board of Managers exercises its discretion to pay for Interest and Units in monthly installments, the first such installment will be paid to the Member, or his, her or its successor in interest on the first day of the month after thirty (30) days have expired since the Member’s Interest and Units have been purchased. Each subsequent installment shall be paid on the first day of each successive month until the full amount owed to the Member, or his, her or its successor in interest has been paid. The Company’s obligation to pay the Member in monthly installments under this Section 15.3 will be evidenced by a nonrecourse unsecured promissory note executed by the Company.

Payments for Interests. (a) If any Member’s Interest and Units are purchased because of the occurrence of a Terminating Event, the amount the Company or the other Member(s), as applicable, will pay for the Interest and Units owned by such Member shall be equal to the Fair Market Value Price as of the day on which the sixty one hundred twenty (60120) day exercise period began to run. (b) If the Company or the other Member(s), as applicable, purchases any Member’s Interest and Units as provided in this Section 15.3, the Company or other Member(s), as applicable, shall pay any such amounts owed therefor to such Member or his, her or its successor in interest in a lump sum or, at the discretion of the Board of Managers, in up to twenty-four (24) equal monthly payments, with interest accruing at the Prime Rate on the unpaid principal balance. If the Board of Managers applicable purchaser exercises its discretion to pay for Interest and Units in monthly installments, the first such installment will be paid to the Member, or his, her or its successor in interest on the first day of the month after thirty (30) days have expired since the Member’s Interest and Units have been purchased. Each subsequent installment shall be paid on the first day of each successive month until the full amount owed to the Member, or his, her or its successor in interest has been paid. The Companypurchaser’s obligation to pay the Member in monthly installments under this Section 15.3 will be evidenced by a nonrecourse unsecured promissory note executed by the Company, secured by a first-ranking interest against or with respect to the Units being purchased.