Common use of Rights of Transferee Clause in Contracts

Rights of Transferee. A Person to which all or any part of a Member’s Interest is transferred as permitted by Section 6.1, or that succeeds to all or part of the Interest of a Member due to the liquidation of a Member that is an entity, or on the bankruptcy of a Member, (a) is entitled to share in the Company’s profits and losses, and to receive distributions and allocations of Company income, gain, loss or credit, to the same extent as the predecessor Member to the extent of the Interest transferred and (b) if but only if the Member consents in writing in its sole discretion and the Person receiving the Interest agrees in writing to be bound by the provisions of this Agreement as a Member and notifies the other Members of its address for notices under this Agreement, shall be admitted to the Company as a member. In connection with the admission of a new Member when the transferring Member retains part of its Interest, the existing Member shall modify this Agreement to take into account the Company’s having more than one Member.