Common use of Contribution Adjustment Clause in Contracts

Contribution Adjustment. (a) Prior to the Closing, the Subsidiary shall distribute to the LLC all of the cash assets of the Subsidiary except the Subsidiary shall retain sufficient cash to satisfy all accrued expenses and accounts payable accruable through the Closing. To the extent that the Subsidiary does not have sufficient cash to satisfy all accrued expenses and accounts payable accruals, then the LLC shall contribute such deficit to the Operating Partnership. To the extent that the Subsidiary has excess cash to satisfy all accrued expenses and accounts payable accruals, then the Subsidiary shall refund such excess to the LLC. The deficit or excess, as the case may be, shall be referred to as the "Contribution Adjustment."