Additional Capital Contribution Clause Samples
The Additional Capital Contribution clause outlines the circumstances and procedures under which existing members or shareholders may be required or permitted to contribute extra funds to the company beyond their initial investment. Typically, this clause specifies how much additional capital may be requested, the process for making such requests, and the consequences for members who do not contribute their share, such as dilution of ownership or loss of certain rights. Its core practical function is to ensure the company can secure necessary funding from its members to meet unforeseen financial needs or support growth, thereby providing a clear mechanism for raising additional capital internally.
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Additional Capital Contribution. Additional Capital Contribution means the total cash and other consideration contributed to the Company by each Member other than the initial Capital Contribution.
Additional Capital Contribution. The Seller shall make the Additional Capital Contribution to the Company.
Additional Capital Contribution. (a) The Board shall have the authority, by Requisite Board Approval, to make a capital call to the Common Members (and the Capital Contributions made by the Common Members pursuant to any capital call made after the Effective Date in accordance with the terms of this Agreement, “Additional Capital Contributions”). Subject to the terms of Section 6.6.2, the Board hereby authorizes Company Management to make any capital call that is a Permitted Capital Call by delivering an Additional Capital Contribution Notice in accordance with the terms of this Article III. All Capital Contributions, Shortfall Loans and Company Loans shall be made by means of wire transfer of immediately available funds to the account of the Company, or to such other account or by such other method as the Board specifies.
(b) Subject to the terms of Section 3.1.2(a) above, Additional Capital Contributions may be requested from each Common Member in proportion to its Percentage Interest pursuant to a written capital call (an “Additional Capital Contribution Notice”) delivered to each Common Member stating the amount of capital required by the Company, the purpose of the contribution, and the date by which the Common Members are required to make the Additional Capital Contributions (an “Additional Capital Contribution Date”), which shall be no less than fifteen (15) Business Days from and after the date of receipt of the Additional Capital Contribution Notice by the Common Members. Each of the Common Members shall be obligated to contribute capital to the Company pursuant to an Additional Capital Contribution Notice only for Required Capital Contributions and, with respect to any Required Capital Contributions, shall be required to make such Required Capital Contribution on or prior to the applicable Additional Capital Contribution Date.
(c) Notwithstanding anything to the contrary contained in this Agreement or any other Venture Agreement, (i) funding of Additional Capital Contributions pursuant to any Additional Capital Contribution Notice (other than for Required Capital Contributions) shall not be required, but shall be optional to any Common Member, (ii) subject to the foregoing clause (i) and Section 3.1.3 and Section 3.1.4, a Common Member shall not be permitted or have any obligation to contribute capital to the Company in excess of such Common Member’s Percentage Interest multiplied by the aggregate amount called from the Common Members pursuant to any Additional Capital Contribut...
Additional Capital Contribution. 4 2.4. No Withdrawal................................................. 4 2.5. Capital Accounts, Allocations and Related Matters..........
Additional Capital Contribution. The Member shall not be required to make additional Capital Contributions to the Company, nor shall the Member be obligated to satisfy any deficit in its Capital Account.
Additional Capital Contribution. If the Pledgors make additional capital injection into, or increase the holding of any part of, the registered capital of Shenzhen Xunlei following the execution of this Contract, the additionally injected capital or newly held part of the registered capital shall be governed by this Contract. The Pledgors shall at the Pledgee’s request immediately sign an amendment or supplemental to this Contract to the satisfaction of the Pledgee with respect to the additional capital injection or new holding of any part of the registered capital, submit such signed amendment or supplemental agreement to Shenzhen Industry and Commerce Bureau for related registration and record, and provide to the Pledgee with corresponding certificates for the completion of such registration and record formalities.
Additional Capital Contribution. The assets of the Company are expected to generate a return sufficient to satisfy all obligations of the Company under this Agreement and the Basic Documents and any other obligations of the Company. It is expected that no capital contributions to the Company will be necessary after the purchase of the Phase-In-Recovery Property. On or prior to the date of issuance of the Bonds, the Sole Member shall make an additional contribution to the Company in an amount equal to at least 0.50% of the initial principal amount of the Bonds or such greater amount as agreed to by the Sole Member in connection with the issuance by the Company of the Bonds, which amount the Company shall deposit into the Capital Subaccount (as defined in the Bond Indenture) established by the Bond Trustee as provided under Section 8.02(a) of the Bond Indenture. Except to the extent set forth in the preceding sentence, and notwithstanding any other provision of this Agreement, the Sole Member is not required to make any additional capital contributions to the Company. No capital contribution by the Sole Member to the Company will be made for the purpose of mitigating losses on Phase-In-Recovery Property that has previously been transferred to the Company, and all capital contributions shall be made in accordance with all applicable limited liability company procedures and requirements, including proper record keeping by the Sole Member and the Company. Each capital contribution will be acknowledged by a written receipt signed by any one of the Directors. The Directors acknowledge and agree that, notwithstanding anything in this Agreement to the contrary, such additional contribution will be managed by an investment manager selected by the Bond Trustee who shall invest such amounts only in Eligible Investments (as defined in the Bond Indenture), and all income earned thereon shall be allocated or paid by the Bond Trustee in accordance with the provisions of the Bond Indenture. The amounts so contributed by the Sole Member shall be credited to the Sole Member’s capital account, as provided in Section 4.3 below. The Sole Member shall have a Membership Interest of 100% of the Company.
Additional Capital Contribution. After September 11, 2001, Holdings shall receive from Parent, as an equity investment by Parent into Holdings, and Holdings shall contribute to Borrower, as an equity investment by Holdings into Borrower, $140,000,000 in cash on or before the third Business Day after Parent completes the sale of FCC licenses for 10MHZ of C-Block spectrum covering the Salt Lake City and Provo, Utah BTAs and receives the net proceeds therefrom. Notwithstanding the foregoing, at least $70,000,000 in cash of the sum referenced in the first sentence of this Section 5.18 shall be so received as an equity investment by Holdings from Parent, and shall be so contributed as an equity investment by Holdings into Borrower, on or before December 15, 2001 regardless of whether or not Parent has completed by said date the sale of FCC licenses for 10MHZ of C-Block spectrum covering the Salt Lake City and Provo, Utah BTAs and has received the net proceeds therefrom.
(b) Section 6.15 of the Credit Agreement is hereby amended to read in its entirety as follows:
Additional Capital Contribution. Increase in capital. If at anytime during the existence of the Joint Venture it becomes necessary to increase the capital with which the Joint Venture is doing business then: No Joint Venturer shall be required to make additional contributions to the capital of the Joint Venture. Any Joint Venturer who shall make a contribution shall be deemed to have made a loan to such Joint Venture, which loan shall bear interest at an annual rate of 12%, which principal and interest shall have priority over any and all other sums owed to or payable to the Joint Venturers.
Additional Capital Contribution. The Board may from time to time call for and issue additional capital contribution, which may, in the determination of the Board, be required for funding the Business or the operations or growth of the Company. Any such call shall not be in breach of the Sectoral Caps. In the absence of any agreement to the contrary, the Parties shall alone be required to contribute such additional capital.