Capital Contribution Commitment Clause Samples
A Capital Contribution Commitment clause defines the obligation of parties, typically investors or partners, to provide a specified amount of capital to a business, fund, or joint venture. This clause outlines the total amount each party must contribute, the schedule or triggers for making these contributions, and any consequences for failing to meet the commitment, such as penalties or loss of rights. Its core practical function is to ensure that the entity has reliable access to the necessary funding, thereby supporting its operations and growth while clearly allocating financial responsibilities among the parties involved.
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Capital Contribution Commitment. Under the Original Operating Agreement, each Member initially undertook and became unconditionally obligated (and, to the extent such obligation has not been fulfilled, remains obligated) to contribute cash, the property described in Section 2.1(b) or such other assets as the Manager approves to the capital of the Company in an aggregate amount equal to the Capital Contribution Commitment of such Member as set forth on Schedule 2.1(a) and, in exchange therefor, was (and has continued to be) allocated the Percentage Interest set forth opposite the Member’s name. All Capital Contributions shall be made not later than the Capital Contribution Dates set by the Manager with respect thereto in accordance with Section 2.5. No Member shall be required to make Capital Contributions in excess of such Member’s Capital Contribution Commitment, except as otherwise provided in Section 2.1(c) below.
Capital Contribution Commitment. 1Each Partner agrees to make cash contributions (pro rata based upon the Partners' respective Commitments) to the capital of the Partnership in the aggregate amount equal to its Commitment by contributing installments in cash as follows: 50% of its Commitment on the Effective Date and thereafter, upon at least 30 days notice ("Capital Call Notice"). Each Capital Contribution will be made by delivery of a check made payable to the Partnership or by means of a wire transfer of funds to an account designated by the General Partner.
Capital Contribution Commitment. 2.3.1 Each Partner agrees to make cash contributions (pro rata based upon the Partners' respective Commitments) to the capital of the Partnership in the aggregate amount equal to its Commitment by contributing installments in cash as follows: 50% of its Commitment on the Effective Date and thereafter, upon at least 30 days notice ("Capital Call Notice"). Each Capital Contribution will be made by delivery of a check made payable to the Partnership or by means of a wire transfer of funds to an account designated by the General Partner.
2.3.2 The General Partner may cause the Partnership to return to the Partners all or any portion of any Capital Contribution to the Partnership which is not invested in a Portfolio Company or used to pay Partnership Expenses (including Management Fees) or Organizational Expenses. Each such return of Capital Contributions shall be made pro rata among all Partners in the same proportion as the Partners made such Capital Contributions and, so long as such Capital Contributions are returned to the Partners on or before the 120th day following the date such Capital Contributions were due (as set forth in the Capital Call Notice pursuant to which such Capital Contributions were made by the Partners to the Partnership), such returned Capital Contributions may be called again by the General Partner according to the provisions of this Section 2.3 as if such returned Capital Contributions had not been previously called.
Capital Contribution Commitment. Each Member shall be unconditionally obligated to contribute cash, the property described in Section 2.1(b) or such other assets as the Manager approves to the capital of the Company an aggregate amount equal to the Capital Contribution Commitment of such Member as set forth on Schedule 2.1(a) and, in exchange therefore, shall initially be allocated the Percentage Interest set forth opposite the Member’s name. All Capital Contributions shall be made not later than the Capital Contribution Dates set by the Manager with respect thereto in accordance with Section 2.5. No Member shall be required to make Capital Contributions in excess of such Member’s Capital Contribution Commitment.