Projects; Funding Plan Clause Samples

Projects; Funding Plan. EFO or any Key Man shall from time to time identify and present to the Board of Managers certain film or other media and entertainment investment opportunities or other business opportunities (each, a “Project”), together with a reasonably detailed budget and analysis of the expected return on investment for each such Project. Any Project that the Company seeks to undertake shall require the prior approval of the Board of Managers. If the Company does not have adequate funding for a Project, HMNY may elect, in its sole discretion, to provide funding to the Company to allow the Company to pursue any such Project (“Project Funding”). The Company may establish a wholly-owned subsidiary to hold its proprietary interest in any Project (a “Special Purpose Vehicle”). In addition to any Project Funding, HMNY (so long as HMNY constitutes a Majority Interest) agrees to use reasonable commercial efforts to fund the Operational Expenses of the Company in an amount of $405,000 per month or such greater amount as HMNY may determine in its sole discretion (“Operational Funding”), subject to prior approval of the board of directors of HMNY and subject to HMNY having available cash reserves as determined by HMNY in its sole discretion. The anticipated monthly amount of Operational Funding stated in the preceding sentence (the “Operational Funding Budget Amount”) shall be offset by any revenue earned by the Company in the applicable month, including, without limitation, from the leasing, subleasing or allowance by the Company of the use of any private aircraft under its control in connection with a Project, and any such revenue amounts received in a particular month that exceed the Operational Funding Budget Amount shall be applied to the following month (and any subsequent months until the revenues received by the Company no longer exceed the Operational Funding Budget Amount) to offset the Operational Funding Budget Amount for such subsequent month(s). HMNY’s failure to provide Operational Funding shall not constitute a Default or breach of this Agreement. The amount of any Project Funding and Operational Funding will constitute a Capital Contribution by HMNY. However, notwithstanding the foregoing, HMNY may, in its sole discretion, elect to treat all or any part of any Project Funding for a Project involving the creation of a Special Purpose Vehicle as a loan to such Special Purpose Vehicle (but only on terms approved by the Board of Managers and EFO) rather than a Capit...