Subsequent Contribution Clause Samples
The Subsequent Contribution clause defines the terms under which additional resources, funds, or assets may be provided after the initial agreement is executed. Typically, this clause outlines the process for making further contributions, such as requiring written notice or mutual consent, and may specify limits or conditions for these contributions. Its core function is to provide a clear framework for parties to increase their involvement or investment over time, thereby ensuring flexibility and preventing disputes about future contributions.
Subsequent Contribution. The facts are the same as paragraph (d)(3)(i) of this section, except that at the time of the October 5, 2019 distribution, A’s ad- justed basis in its X stock is $90. Fur- ther, on December 27, 2019, A contrib- utes $100 to X in a transaction de- scribed in section 351(a). The analysis in paragraph (d)(3)(ii) of this section remains the same, except that, unlike the second to last sentence of para- graph (d)(3)(ii)(C)(1) of this section, A’s basis in its X stock is reduced by $90 to $0 and pursuant to paragraph (b)(2)(iii) of this section, $10 is treated as gain from the sale or exchange of property. Additionally, as a result of the Decem- ber 27, 2019 contribution of $100, A’s basis in its X stock is increased by $100, so that at the end of 2019, A’s basis in its X stock is $100.
Subsequent Contribution. With respect to each Inland Property, as of 12:00 A.M. on the Business Day immediately following the Contribution Closing Date relating to such Inland Property (the “Subsequent Contribution Closing Date”) the Partnership shall contribute such Inland Equity Interests to the Inland Properties REIT Entity. The Inland Properties REIT Entity shall file an IRS Form 8832 (and any applicable state or local income tax election forms) to elect to be classified as a corporation for federal and applicable state and local income tax purposes, which election shall be effective on or prior to the Subsequent Contribution Closing Date relating to the first contributed Inland Equity Interests. The applicable Contribution Closing Date and the associated Subsequent Contribution Closing Date shall be timed to occur on immediately consecutive days that are both Business Days, so that the applicable Contribution Closing Date and Subsequent Contribution Closing Date are not separated by any non-Business Days (such as a weekend day or holiday). The Partnership and the Inland Properties REIT Entity shall execute a contribution agreement substantially in the form agreed to by the General Partner, the Limited Partners and the Partnership as of the date hereof (each, a “REIT Contribution Agreement”). Each REIT Contribution Agreement shall set forth, among other things:
(i) the Inland Equity Interests to be contributed by the Partnership;
(ii) the closing date of such contribution to the Inland Properties REIT Entity;
(iii) that the applicable Property Entity to be contributed by the Partnership to the Inland Properties REIT Entity will be disregarded from the Partnership for federal income tax purposes on the applicable Subsequent Contribution Closing Date, so that for federal income tax purposes the Partnership will be treated as contributing on the applicable Subsequent Contribution Closing Date the Inland Property held by that Property Entity;
(iv) that the contribution shall occur as of 12:00 A.M. Chicago time on the Subsequent Contribution Closing Date, and that all items of income, gain, loss, expense and deduction derived from the applicable Inland Property on and after the applicable Subsequent Contribution Closing Date shall be reported for income tax purposes solely by the Inland Properties REIT Entity and that no such items shall be reported for income tax purposes by the Partnership; and
(v) the conditions precedent to the consummation of the transactions contemplated ther...
Subsequent Contribution. No Member shall be obligated to make additional capital contributions unless unanimously agreed to by all Members.
Subsequent Contribution. After the Certificate Date, but prior to the Lock-In Date, additional Contributions made by a Certificate Owner. The sum of the initial Contribution and any Subsequent Contributions may not exceed the Maximum Total Contributions. Subsequent Contributions do not include dividends, capital gains or Covered Asset Transfers from Covered Assets that are automatically reinvested. After the Lock-In Date, Subsequent Contributions will not be permitted.