Common use of Consideration for Membership Clause in Contracts

Consideration for Membership. The Board of Directors may admit a person as a Member of the corporation for consideration consisting of any tangible or intangible property or benefit to the corporation, including cash, promissory notes, services performed, contracts for services to be performed or other securities of the corporation. Before the corporation admits a Member, the Board of Directors shall determine that the consideration received or to be received is adequate. The corporation may place a membership in escrow in whole or in part for a contract for future services or benefits, a promissory note, or other property to be issued in the future, or make other arrangements to restrict the transfer of the membership, and may credit distributions in respect of the membership against their purchase price, until the services are performed, the benefits or property are received or the promissory note is paid. If the services are not performed, the benefits or property are not received or the promissory note is not paid, the corporation may cancel, in whole or in part, the membership escrowed or restricted and the distributions credited.

Consideration for Membership. The Board of Directors may admit a d m i t a person as a Member of the corporation for consideration consisting of any tangible or intangible property or benefit to the corporation, including cash, promissory notes, services performed, contracts for services to be performed or other securities of the corporation. Before the corporation admits a Member, the Board of Directors shall determine that the consideration received or to be received is adequate. The corporation may place a membership in escrow in whole or in part for a contract for future services or benefits, a promissory note, or other property to be issued in the future, or make other arrangements to restrict the transfer of the membership, and may credit distributions in respect of the membership against their purchase price, until the services are performed, the benefits or property are received or the promissory note is paid. If the services are not performed, the benefits or property are not received or the promissory note is not paid, the corporation may cancel, in whole or in part, the membership escrowed or restricted and the distributions credited.