Participation through Additional Capital Contributions Clause Samples
The "Participation through Additional Capital Contributions" clause defines the conditions under which existing investors or partners can contribute extra funds to a business or project beyond their initial investment. Typically, this clause outlines the process for offering such opportunities, such as notifying current participants and specifying the terms for making additional contributions, including timing and proportional rights. Its core function is to provide a structured mechanism for raising further capital from within the existing investor group, ensuring fairness and clarity in how additional funding rounds are handled and preventing dilution of ownership without proper notice or opportunity.
Participation through Additional Capital Contributions. Notwithstanding the provisions of Section 3.1(f)(i) and the final sentence of Section 8.5(b), in circumstances wherein the General Partner shall permit Class D Limited Partners or the other Limited Partners to participate in (or the Class D Limited Partners or the other Limited Partners are otherwise entitled to participate in) (i) a sale of Class A Common Units, or (ii) an exchange of Class A Common Units pursuant to the Exchange Agreement, the General Partner shall allow each Class D Limited Partner to make such Capital Contributions to the Partnership as would enable the relevant number of Class D Common Units of such Class D Limited Partner to become economically equivalent to Class A Common Units, in which case each such Class D Common Unit will automatically convert into a Class A Common Unit and such Class D Limited Partner will then be permitted to participate in such sale or exchange.
Participation through Additional Capital Contributions. Notwithstanding the final sentence of Section 8.5(b), in circumstances wherein the General Partner shall permit Class A Limited Partners or the other Limited Partners to participate in (or the Class A Limited Partners or the other Limited Partners are otherwise entitled to participate in) (i) a sale of Class A Common Units, or (ii) an exchange of Class A Common Units pursuant to the Exchange Agreement, the General Partner shall allow each Class A Limited Partner to make such Capital Contributions to the Partnership as would enable the relevant number of Class A Common Units of such Class A Limited Partner to achieve the applicable Book-Up Target.