III. CAPITAL CONTRIBUTIONS
1. Initial Commitments and Contributions. By the execution of this Operating Agreement, the initial Membes hereby agree to make the capital contributions set forth in the attached Exhibit A. The interests of the respective Members in the total capital of the Company (their respective "Sharing Ratios", as adjusted from timt to time to reflect changes in the Capital Accounts of the Members and the total capital in the Company) is also set forth in Exhibit A. Any additional Member (other than an assignee of a Membership Interest who has been admitted as a Member) on any capital contribution except as provided in this Operating Agreement.
2. Additional Contributions. In Addition to the initial capital contributions, the Managers may determine from timt to time that additional capital contributions are needed to enable the Company to conduct its business and affairs. Upon making such a determination, Notice thereof shall be given to all Members in writing at least ten (10) business days prior to the date on which such additional contributions are due. Such Notice shall describe in reasonable detail, the purposes and uses of such additional capital, the amounts of additional capital required, and the date by which payment of the additional capital is required. Each Member shall be obligated to make such additional capital contribution to the extent of any unfulfilled commitment. Any Member who has fulfilled that Member's commitment, shall have the right, but not the obligation to make the additional capital contributions needed according to that Member's Sharing Ratio.
3. Failure to Contribute. If any member fails to make a capital contribution when requird, the Company may, in addition to the other rights and remedies the Company may have under the Act or applicable law, take such enforcement action (including, the commencement and prosecution of court proceedings) against such Member as the Managers consider appropriate. Moreover, the remaining Members may elect to contribute the amount of such required capital themselves according to their respective Sharing Ratios. In such an event, the remaining Members shall be entitled to treat such amounts as an extension of credit to such defaulting Member, payable upon demand, with interest accruing thereon at the federal midterm rate provided for under Code Sec.1274(d), plus Two Percent (2%) until paid, all of which shall be secured by such defaulting Member's interest in the Company, each Member who may hereafter default, hereby granting to each Member who may hereafter grant such an extension of credit, a security interest in such defaulting Member's interest in the Company.