Allocation of Percentage Interests. (a) The total Percentage Interests allocated amongst the Members shall always be equal to one hundred. (b) Subject to Section 8.1(c), the Percentage Interests shall be allocated to the Members as set out in Schedule A. (c) Any time after the Effective Date, whenever capital is contributed to the Cooperative by one or more Members, a Member withdraws as a Member pursuant to Section 2.4, or a new Member is admitted pursuant to Section 2.2, the Percentage Interests of each Member shall be recalculated by the Treasurer by dividing each Member’s aggregate Capital Contributions by the aggregate of the Capital Contributions made by all Members. The Secretary will thereafter prepare and issue new Certificates of Percentage Interests to the Members in exchange for any Certificates of Percentage Interests issued prior to the contribution of capital. Any such previously issued Certificates of Percentage Interests shall be cancelled by the Secretary on the Cooperative’s records. (d) Notwithstanding Section 8.1(c), Percentage Interests may be allocated to new Members on whatever basis the Members may select and the remaining Percentage Interests shall be reallocated among the Members who had been previously admitted to the Cooperative pro rata based on their Percentage Interests prior to the admission of the new Members.
Appears in 5 contracts
Samples: Operating Agreement, Operating Agreement, Operating Agreement
