Common use of Requirements for Effectiveness of Transfer Clause in Contracts

Requirements for Effectiveness of Transfer. As a condition to recognizing the effectiveness of any proposed Transfer of Units, the Remaining Members may require the Transferor and/or the proposed Transferee, to execute instruments of transfer, assignment and assumption and other documents, and to perform all other acts which the Remaining Members may deem necessary or desirable to: (a) Preserve the Company’s status under the laws of each jurisdiction in which the Company is qualified, organized or does business after the Transfer; (b) Maintain the Company’s classification as a partnership for federal income tax purposes; and (c) Assure compliance with any applicable state and federal laws including securities laws and regulations.