Contributions & Distributions Clause Samples
The Contributions & Distributions clause defines how parties provide resources, such as capital or assets, to a joint venture, partnership, or company, and how profits or assets are subsequently distributed among them. It typically outlines the timing, form, and proportion of contributions required from each party, as well as the method and schedule for distributing returns or profits. This clause ensures transparency and fairness in financial dealings, preventing disputes by clearly allocating financial responsibilities and entitlements among the parties involved.
Contributions & Distributions. Subject to the terms and conditions contained in this Agreement, upon the consummation of the transactions contemplated by this Agreement (the “Closing”, and the date thereof, the “Closing Date”), the Parties shall take the actions listed below in the order listed. On the Closing Date, the Parties intend for NewCo to be owned 85% by LMP (or its assign) and 15% by Contributor or Principal and for NewCo to own all of the Assets free and clear of all of Contributor’s liens and encumbrances, and for NewCo to have none of Contributor’s liabilities, except for those liabilities expressly assumed by NewCo in writing.
(i) First, Contributor shall contribute to its corresponding NewCo all of the Assets for the values and on the terms described herein;
Contributions & Distributions. The following contributions and transactions shall be completed in the order set forth below.
Contributions & Distributions. Participating Members shall pay rates, fees, and charges, or receive distributions of net revenues, as follows:
A. If, during the budgeting process, the anticipated budget for the next following Fiscal Year indicates a deficit, after funding for all reserves, the Participating Members shall pay to the Authority, paid on a quarterly basis in arrears, rates, fees, and charges proportional to their ownership of Shares. The rates, fees, and charges shall be increased or decreased and reported to the Participating Members quarterly and shall be updated based upon actual costs and payments and as approved by the Board. These rates, fees, and charges are in the nature of a fee for the continuing provision and availability of a service, not a debt, and shall not be construed to be a general obligation within the meaning of the Virginia Constitution, Art. VII, § 10.
B. If, during the budgeting process, the anticipated budget for the next following Fiscal Year indicates a surplus, after funding for all reserves, the Authority shall distribute, on a quarterly basis, net revenues to the Participating Members proportional to their ownership of Shares pursuant to Sections 2.2 and 2.
Contributions & Distributions. Participating Members shall pay rates, fees, and charges, or receive distributions of net revenues, as follows:
Contributions & Distributions