Adjustment of Percentage Interests. Upon the admission of one or more additional Members or upon the issuance of additional membership interests to existing Members, the Board of Managers is authorized to adjust the Percentage Interests of the Members to reflect the dilution required to admit such additional Members or issue such additional membership interests to existing Members. Any such dilution shall be in proportion to the Members’ Percentage Interests. The Percentage Interest to be granted shall be determined by the Manager taking due account of the value of the additional Member’s capital contribution and commitment or the existing Member’s further capital contribution and commitment in relation to the value of the Company upon admission.
Appears in 2 contracts
Sources: Membership Unit Purchase Agreement (FVA Ventures, Inc.), Membership Unit Purchase Agreement (FVA Ventures, Inc.)