Contributions of Additional Capital Clause Samples

The "Contributions of Additional Capital" clause defines the process and conditions under which existing or new members of an entity may be required or permitted to provide extra funds beyond their initial investment. Typically, this clause outlines how additional capital calls are made, the proportion each member is expected to contribute, and the consequences of failing to meet these obligations, such as dilution of ownership or loss of certain rights. Its core function is to ensure the entity can secure necessary funding for operations or growth while clearly allocating financial responsibilities among members and addressing potential shortfalls.
Contributions of Additional Capital. (a) With the approval of the Board of Directors and a Member, and subject to the other provisions of this Agreement, including but not limited to Section 3.03(b), such Member may contribute additional capital to the Company for any purpose related to the conduct of the business of the Company. Subject to the other provisions of this Agreement, any such contribution shall be made in an amount determined by the mutual agreement of the Company, with the approval of the Board of Directors, and the contributing Member, against issuance to such Member of the number and class and Series (if applicable) of Shares approved by the Board of Directors. (b) The books and records of the Company shall be adjusted to reflect any additional contributions to the capital of the Company made pursuant to this Section 3.04.
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Contributions of Additional Capital. The Managers shall provide to the Members copies of all documents executed pursuant to the power of attorney contained in this Section 16.2.
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Contributions of Additional Capital. In the event that funding required by the Partnership is not available as set forth above: (a) The General Partner: (i) shall, if and when approved by the Limited Partners pursuant to the Shareholders' Agreement, request the Limited Partners to make Capital Contributions on an as needed basis. Any such Capital Contributions will be allocated to the Limited Partnership Units held by such Limited Partner making such Capital Contributions. (b) Any such request from the General Partner for Capital Contributions in addition to the Initial Capital shall be made at such time or times and in such additional amounts as determined by the General Partner and as set out in a written notice from the General Partner to the Limited Partners (a "Cash Call Notice"), which Cash Call Notice shall provide the date on which such Capital Contributions are to be made and that shall not be more than thirty (30) days after delivery of the Cash Call Notice. Of the total amount requested in a Cash Call Notice, each Limited Partner shall make a Capital Contribution equal to its Proportionate Share of such total amount. Such Capital Contribution shall be added to the Capital Contribution as set forth on Schedule "A" of each Limited Partner without additional Units being issued. (c) If a Limited Partner fails to make its Capital Contribution as required under a Cash Call Notice when it is due (the "Non-Paying Partner"): (i) the Non-Paying Partner shall be a Defaulting Limited Partner until such Capital Contribution is paid by the Defaulting Limited Partner, or, if all of such Capital Contribution has been advanced by the other Limited Partner as provided below, until the Default Loan is repaid in full (including all interest accrued thereon) to such other Limited Partner; and (ii) at any time within thirty (30) days after the due date for the payment of the Capital Contribution by the Non-Paying Partner, the other Limited Partner, provided that it has paid its Proportionate Share of the amount requested under the Cash Call Notice when due (the "Paying Partner"), shall have the right (but not the obligation) to contribute as a Capital Contribution all of the unpaid amount of the Capital Contribution of the Non-Paying Partner (the "Excess Amount") and the Excess Amount shall for all purposes be considered to be a loan from the Paying Partner to the Non-Paying Partner (a "Default Loan").
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Related to Contributions of Additional Capital

  • No Additional Capital Contributions Except as otherwise provided in this Article V, no Partner shall be required to make additional Capital Contributions to the Partnership without the consent of such Partner or permitted to make additional capital contributions to the Partnership without the consent of the General Partner.

  • Contributions to Capital (a) The minimum initial Capital Contribution of each Limited Partner will be $100,000 or such other amount as the General Partner determines from time to time. The amount of the initial Capital Contribution of each Partner will be recorded by the Partnership upon acceptance as a contribution to the capital of the Partnership. Each Limited Partner’s entire initial Capital Contribution will be paid to the Partnership immediately prior to the Partnership’s acceptance of the Limited Partner’s subscription for Units, unless otherwise agreed by the Partnership and such Limited Partner. (b) The Limited Partners may make additional Capital Contributions effective as of those times and in amounts as the General Partner may permit, but no Limited Partner will be obligated to make any additional Capital Contribution except to the extent provided in Sections 5.4 and 5.5 of this Agreement. Each additional Capital Contribution made by a Limited Partner (other than a contribution made pursuant to Section 5.3 or Section 5.5 of this Agreement) will be in the minimum amount of $25,000 or such other amount as the General Partner determines from time to time. (c) A General Partner may make additional Capital Contributions effective as of those times and in such amounts as it determines, and will be required to make additional Capital Contributions from time to time to the extent necessary to maintain the balance of its Capital Account at an amount, if any, necessary to ensure that the Partnership will be treated as a Partnership for U.S. federal income tax purposes. Except as provided in this Section 5.1 or in the Delaware Act, no General Partner will be required or obligated to make any additional contributions to the capital of the Partnership. (d) Subject to the provisions of the 1940 Act, and except as otherwise permitted by the General Partner, (1) initial and any additional Capital Contributions by any Partner will be payable in cash or in Securities that the General Partner, in its absolute discretion, causes the Partnership to accept, and (2) initial and any additional Capital Contributions in cash will be payable in readily available funds at the date of the proposed acceptance of the contribution. The Partnership will charge each Partner making a Capital Contribution in Securities to the capital of the Partnership an amount as may be determined by the General Partner to reimburse the Partnership for any costs incurred by the Partnership by reason of accepting the Securities, and any charge will be due and payable by the contributing Partner in full at the time the Capital Contribution to which the charges relate is due. The value of contributed Securities will be determined in accordance with Section 7.3 of this Agreement as of the date of contribution. (e) An Advisor may make Capital Contributions and own Units in the Partnership and, in so doing, will become a Limited Partner with respect to the contributions. (f) The minimum initial and additional contributions set out in paragraphs (a) and (b) of this Section 5.1 may be increased or reduced by the General Partner from time to time. Reductions may be applied to all investors, individual investors or to classes of investors, in each case in the sole discretion of the General Partner.

  • Additional Capital Contributions and Issuances of Additional Partnership Interests Except as provided in this Section 4.2 or in Section 4.3, the Partners shall have no right or obligation to make any additional Capital Contributions or loans to the Partnership. The General Partner may contribute additional capital to the Partnership, from time to time, and receive additional Partnership Interests in respect thereof, in the manner contemplated in this Section 4.2.

  • Capital Contributions of the Partners (a) The General Partner and Initial Limited Partner have made the Capital Contributions as set forth in Exhibit A to this Agreement. (b) To the extent the Partnership acquires any property by the merger of any other Person into the Partnership or the contribution of assets by any other Person, Persons who receive Partnership Interests in exchange for their interests in the Person merging into or contributing assets to the Partnership shall become Partners and shall be deemed to have made Capital Contributions as provided in the applicable merger agreement or contribution agreement and as set forth in Exhibit A, as amended to reflect such deemed Capital Contributions. (c) Each Partner shall own Partnership Units in the amounts set forth for such Partner in Exhibit A and shall have a Percentage Interest in the Partnership as set forth in Exhibit A, which Percentage Interest shall be adjusted in Exhibit A from time to time by the General Partner to the extent necessary to reflect accurately exchanges, additional Capital Contributions, the issuance of additional Partnership Units or similar events having an effect on any Partner’s Percentage Interest. (d) The number of Partnership Units held by the General Partner, in its capacity as general partner, shall be deemed to be the General Partner Interest. (e) Except as provided in Sections 4.2 and 10.5, the Partners shall have no obligation to make any additional Capital Contributions or provide any additional funding to the Partnership (whether in the form of loans, repayments of loans or otherwise) and no Partner shall have any obligation to restore any deficit that may exist in its Capital Account, either upon a liquidation of the Partnership or otherwise.

  • Additional Capital Contributions No Member shall be required to make additional capital contributions. A Member may make additional capital contributions to the Company.