Under what condition is a further transfer or assignment of the Beehive Homes Franchise or Franchise Agreement prohibited?

r appreciation of the Home.

[Alternate paragraph to be used for Assignment to Partnership.]

• 1. Without the prior written consent of Bee Hive Homes, Assignor, Assignee, and Partners may not, either voluntarily or by operation of law, make or permit:
  • a) any further transfer or assignment of the Franchise or the Franchise Agreement;
  • b) any pledge or encumbrance of the Franchise;
  • c) any assignment, transfer, or pledge of any equity interest in Assignee including, but not limited to, transfers in any entity that is a Partner;
    • d) the creation of new or additional equity interests in Assignee;
  • e) the change of a limited partnership interest to a general partnership interest or of a general partnership interest to a limited partnership interest; or
  • f) any amendment of the terms of any partnership agreement or other organizational documents relating to Assignee.

Equity interests, as used in this Assignment, include direct or indirect equity or beneficial interests in Assignee and the business risks associated with the Home including, but not limited to, interests stated as debt that include any type of risk-taking interest or any interest in the profits or appreciation of the Home.

[Alternate paragraph to be used for Assignment to Limited Liability Company.]

• 1. Without the prior written consent of Bee Hive Homes, Assignor, Assignee, and Members may not, either voluntarily or by operation of law, make or permit:
  • a) any further transfer or assignment of the Franchise or the Franchise Agreement;
  • b) any pledge or encumbrance of the Franchise;
  • c) any assignment, transfer, or pledge of any equity interest in Assignee including, but not limited to, transfers in any entity that is a Member;
    • d) the creation of new or additional equity interests in Assignee; or
  • e) any amendment of the terms of any operating agreement or other organizational documents relating to Assignee.

Equity interests, as used in this Assignment, include direct or indirect equity or beneficial interests in Assignee and the business risks associated with the Home including, but not limited to, interests stated as debt that include any type of risk-taking interest or any interest in the profits or appreciation of the Home.

• 1. Assignor, Assignee, and [Shareholders/Partners/Members] represent and warrant that:
• a) they are the only persons or entities with equity interests in Assignee and their ownership interests are as shown on Exhibit A; and
• b) there is no obligation or intention to issue additional equity interests in Assignee.
• 1. If any [Shareholders/Partners/Members] are trustees or trusts:
• a) the beneficial interests in the trusts may not be assigned, transfers to successor trustees or special trustees may not be made even if the transfer is provided for in any trust agreement, and the trust agreement may not be amended without the prior written consent of Bee Hive Homes;
• b) Exhibit A lists all persons who are trustees of any nature or have beneficial interests in any [Shareholder's/Partner's/Member's] trust(s);
• c) this Assignment is not a consent to any future transfers of equity interest(s) of Assignee to any [Shareholder's/Partner's/Member's] trust beneficiaries based on any

condition including, but not limited to, attainment of a certain age or occurrence of any event. All future transfers or vesting of equity interest(s) of Assignee are subject to this Assignment; and

• d) Bee Hive Homes has not reviewed any trust documents of any [Shareholder's/Partner's/Member's] trust;

Source: Item 23 — RECEIPTS (FDD pages 34–123)