Capital Contributions and Loans. (a) Initial Capital Contributions shall be made as follows: (i) Each PCP and Specialist Member shall acquire one (1) PCP or Specialist Unit, respectively, in return for a Capital Contribution of Two Hundred Fifty Dollars ($250). (ii) Each Auxiliary Member shall acquire one (1) Auxiliary Unit with the rights set forth in this Agreement in return for a Capital Contribution of Two Hundred Fifty Dollars ($250). (iii) The System Member shall acquire System Units in return for a Capital Contribution of an aggregate amount which, when added to the aggregate amounts contributed to capital of the Company by the other Members, will equal 49% of the Company’s total capital. This calculation represents the Board’s good faith estimate of the percentage of total cash flow from Company managed care contracts that will be paid to the System Member for services rendered to patients. The Capital Contribution of the System Member may be paid in installments on a basis to be determined by Supermajority Approval of the Board. Notwithstanding the provisions of this section, no additional capital contribution from the System Member will be due after the first anniversary of the Board’s decision to require a Capital Contribution, except that the System Member shall be required to make any additional Capital Contributions required by Section 5.1(c).
Appears in 5 contracts
Samples: Operating Agreement, Operating Agreement, Operating Agreement
