Common use of Risk Equivalence Clause in Contracts

Risk Equivalence. The Members intend that the exposure for contributed capital by the Members shall be maintained to the greatest extent practicable on a basis that results in equivalent financial risk for the Members (the concept of “Risk Equivalence”). To the extent not detrimental to the viability and financial success of the overall operations of the Company, the Members will work in good faith with each other to accomplish and maintain Risk Equivalence through appropriate measures, distributions or voluntary contributions to capital; provided, however, that nothing in this Agreement shall be deemed to require additional capital contributions by the Members.

Appears in 3 contracts

Samples: Member Control Agreement (Dakota Plains Holdings, Inc.), Member Control Agreement (Dakota Plains Holdings, Inc.), Member Control Agreement (MCT Holding Corp)

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Risk Equivalence. The Except as otherwise provided in this Agreement, the Members intend that the exposure for contributed capital by the Members shall be maintained to the greatest extent practicable on a basis that results in equivalent financial risk for the Members (the concept of “Risk Equivalence”). To the extent not detrimental to the viability and financial success of the overall operations of the Company, except as otherwise provided in this Agreement, the Members will work in good faith with each other to accomplish and maintain Risk Equivalence through appropriate measures, distributions or voluntary contributions to capital; provided, however, that nothing in this Agreement shall be deemed to require additional capital contributions by the Members.

Appears in 3 contracts

Samples: Member Control Agreement (Dakota Plains Holdings, Inc.), Member Control Agreement (Dakota Plains Holdings, Inc.), Member Control Agreement (MCT Holding Corp)

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