Additional Capital Contributions. [Option 1: Members will not be required to make additional capital contributions.] [Option 2: A vote of the members holding a majority ownership interest in the Company will determine whether additional capital contributions are required from the members. In the event additional capital contributions will be required from the members, and any member does not contribute his or her pro rata share of any Company funds so required, then the other members may contribute the amount required of such member and any member who did not make a contribution required of him or her will be liable to the other members for the amount advanced by the contributing members (together with interest at 10% or the maximum interest rate allowable by law). In the event that a member fails to make any required contribution to the Company, or in the event that a member otherwise fails to comply with any of the terms of this Agreement, and such default continues for a period of three (3) months or more, then upon written notice to such member in default, the member may be expelled from the Company by a vote of members holding a majority ownership interest in the Company and his or her interest in the Company will be disposed of in accordance with Article 7 below. In addition, the Company will be entitled to pursue any remedies in equity or at law, including actions for damages, which may be available to the Company respecting a defaulted member. Upon such expulsion: (A) the members who advanced the funds required of a defaulting member will be reimbursed by the Company for the full amount advanced by them (together with interest at 10% or the maximum interest rate allowable by law), and (B) the interest of the Member who is terminated will be reallocated among the remaining members who are not in default in proportion to their percentage ownership interest in the Company.]
Appears in 73 contracts
Sources: Operating Agreement, Operating Agreement, Operating Agreement