Common use of Effect of Transfers of Economic Interest Clause in Contracts

Effect of Transfers of Economic Interest. Upon any transfer of an Economic Interest in the LLC to a transferee who does not become a substitute Member, the transferee shall have no right to participate in the management of the business and affairs of the LLC or to become a Member, but such transferee shall only be entitled to receive the share of Profits, Losses and distributions to which the transferor of such Economic lnterest in the LLC would otherwise be entitled. Unless and until the transferee of an Economic Interest in the LLC becomes a Member, the transferor shall continue to be a Member and to have the power to exercise any rights and powers of a Member, including the right to vote, with respect to the transferred Economic Interest. Such transfer of an Economic Interest in the LLC is subject to the consent required in Section 8.1 above.

Effect of Transfers of Economic Interest. Upon any transfer of an Economic Interest in the LLC to a transferee who does not become a substitute Member, the transferee shall have no right to participate in the management of the business and affairs of the LLC or to become a Member, but such transferee shall only be entitled to receive the share of Profits, Losses and distributions to which the transferor of such Economic lnterest Interest in the LLC would otherwise be entitled. Unless and until the transferee of an Economic Interest in the LLC becomes a Member, the transferor shall continue to be a Member and to have the power to exercise any rights and powers of a Member, including the right to vote, with respect to the transferred Economic Interest. Such transfer of an Economic Interest in the LLC is subject to the consent required in Section 8.1 above.