Actual or Notional Contribution Clause Samples
The "Actual or Notional Contribution" clause defines how a party's contribution to a project, venture, or fund is measured, either by the real value provided (actual) or by an agreed-upon hypothetical value (notional). In practice, this clause clarifies whether contributions such as cash, assets, or services are valued at their market value or at a predetermined figure, which can be important in joint ventures or profit-sharing arrangements. Its core function is to ensure transparency and fairness in how contributions are assessed, thereby preventing disputes over the value each party brings to the arrangement.
Actual or Notional Contribution. The Employer’s Contributions will be (choose one of (a) or (b) and choose (c) as applicable):
Actual or Notional Contribution. The Employer will specify in its Adoption Agreement whether it will make any Employer Contribution as a notional contribution or as an actual contribution to an Account. If the Employer establishes the Trust, any Employer Contributions to the Trust will be actual contributions.
Actual or Notional Contribution. The Employer's Contributions will be (choose one of (a) or (b) and choose (c) as applicable): [X] (a) Actual. Made in cash or property to Participant Accounts or to the Trust.