Common use of Conversion of Membership Interest Clause in Contracts

Conversion of Membership Interest. Upon the Incapacity of a Member, such Incapacitated Member shall be entitled to receive only the allocations and distributions attributable to the Member's Membership Interest in the Company, if any, but shall not be entitled to any other rights of a Member. Such Incapacitated Member (or its executor, administrator, trustee or receiver, as applicable) shall thereafter be deemed an Assignee for all purposes hereunder unless the Member of such Membership Interest is admitted as a Substitute Member pursuant to Paragraph 7.7.

Appears in 2 contracts

Sources: Limited Liability Company Agreement (Zany Brainy Inc), Limited Liability Company Agreement (Zany Brainy Inc)