Common use of Restrictions on the Transfer of Partner Status Clause in Contracts

Restrictions on the Transfer of Partner Status. A partner shall not transfer his or her partner status in the General Partnership unless all non-transferring partners in the Partnership first agree to approve the admission of the transferee into this General Partnership. Further, no partner may encumber a part or all of his or her partner status in the General Partnership by mortgage, pledge, granting of a security interest, lien or otherwise, unless the encumbrance has first been approved in writing by all other partners. Notwithstanding the above provision, any partner shall be allowed to assign an economic interest in his or her partner status to another person without the approval of the other partners. Such an assignment shall not include a transfer of the partner's voting or management rights in this Partnership, and the assignee shall not become a partner of the General Partnership.