Common use of Effect of Contributions Clause in Contracts

Effect of Contributions. In exchange for its initial Capital Contribution, as defined in Section 4.1 of the Operating Agreement, (i) MTI shall become a Class A Member (as defined in Section 1.12 of the Operating Agreement) in the Company pursuant to the terms of the Operating Agreement; (ii) MTI will receive the Shares; and (iii) the Capital Account of MTI will be credited with such amount set forth beside its name on Exhibit A to the Operating Agreement. Such Class A Membership Interest and Capital Account shall be subject to adjustment as provided under Section 4.7 of the Operating Agreement.

Appears in 3 contracts

Sources: Contribution Agreement (Mechanical Technology Inc), Contribution Agreement (Mechanical Technology Inc), Contribution Agreement (Mechanical Technology Inc)