Common use of Net Effect Clause in Contracts

Net Effect. The net effect of the exchange of CENEX Equity Interests for equal Equity Interests in Cenex Harvest States Cooperatives shall be that the holders of CENEX Equity Interests standing on the books of CENEX immediately prior to the Effective Time shall hold and will have equal Equity Interests in Cenex Harvest States Cooperatives immediately following the Effective Time, in terms of stated dollar amount on a dollar-for-dollar basis, year of issue (as determined necessary) and any other rights and preferences, and that the deferred patronage, unallocated reserves and other unallocated Equity Interests of CENEX, as standing on its books immediately prior to the Effective Time, shall be exchanged and credited for an equal Equity Interest in Cenex Harvest States Cooperatives immediately following the Effective Time, in terms of stated dollar amount on a dollar-for-dollar basis and other rights and preferences; provided, however, that, notwithstanding the foregoing, the Equity Interests in CENEX that are held by Harvest States immediately prior to the Effective Time shall be treated in accordance with generally accepted accounting principles.

Net Effect. The net effect of the exchange continuation of CENEX Harvest States Equity Interests for as equal Equity Interests in Cenex Harvest States Cooperatives shall be that the holders of CENEX Harvest States Equity Interests standing on the books of CENEX Harvest States immediately prior to the Effective Time shall hold and will continue to have the same and equal Equity Interests in Cenex Harvest States Cooperatives immediately following the Effective Time, in terms of stated dollar amount on a dollar-for-dollar basis, year of issue (as determined necessary) and any other rights and preferences, and that the deferred patronagepatronage payable, unallocated reserves capital reserve and other unallocated Equity Interests of CENEXHarvest States, as standing on its books immediately prior to the Effective Time, shall continue to be exchanged the same identical and credited for an equal Equity Interest in Cenex Harvest States Cooperatives immediately following the Effective Time, in terms of the stated dollar amount on a dollar-for-dollar basis basis, and other rights and preferences; provided, however, that, notwithstanding the foregoing, the Equity Interests in CENEX Harvest States that are held by Harvest States CENEX immediately prior to the Effective Time shall be treated in accordance with generally accepted accounting principles.