Common use of Management by Members Clause in Contracts

Management by Members. The management of the Company is vested in all of the Members in accordance with the Act. Members shall receive no salary for their management services to the Company. However, no Member or manager may without the consent of all Members: (a) Borrow money in the Company name or utilize collateral owned by the Company as security for any loan; (b) Assign, transfer, pledge, compromise or release any claim or debt due the Company except upon payment in full, or arbitrate or consent to the arbitration of any dispute; (c) Make, execute or deliver any assignment for the benefit of creditors or any bond, confession of judgment, chattel mortgage, deed, guarantee, indemnity bond, surety bond or contract of sale of all or substantially all of the property of the Company; (d) Lease or mortgage any Company real estate or any interest therein or enter into any contract for any such purpose; (e) Authorize any capital expenditure in excess of Five Thousand Dollars ($5,000); or (f) Pledge or hypothecate or in any manner transfer his interest in the Company.