Capital Account Increases Sample Clauses
The 'Capital Account Increases' clause defines how and when a partner's capital account in a partnership or LLC is increased. Typically, this includes contributions of cash or property by the partner, allocations of profits, or other agreed-upon adjustments. For example, if a partner invests additional funds or the business earns a profit, the partner's capital account is credited accordingly. This clause ensures accurate tracking of each partner's equity stake, which is essential for fair distribution of profits, losses, and assets, and helps prevent disputes over ownership interests.
Capital Account Increases. For purposes of making allocations pursuant to subparagraph 1(c) of this Exhibit B, a Partner's Capital Account balance shall be deemed to be increased by such Partner's share of any Partnership Minimum Gain and Partner Minimum Gain remaining at the close of the fiscal period in respect of which such allocations are being made.
Capital Account Increases. The Capital Account of each Member shall be increased by (a) the amount of any cash and the agreed net fair market value (as used herein, “agreed net fair market value” of property shall mean the gross fair market value of the property reduced by all liabilities encumbering the property, as determined by the Board of Directors of the Management Company as of the date of contribution) of any property contributed as a Capital Contribution to the capital of the Operating Company by such Member, (b) the amount of any profits allocated to such Member and (c) amounts of gain allocated pursuant to Section 10.3.4.
Capital Account Increases. Subject to the provisions of Exhibit A, each Capital Account shall be increased by (i) the amount of cash and the fair market value of any property contributed to the Partnership by the Partner, reduced by any liabilities which are assumed by the Partnership, and (ii) any Profits allocated to the Partner as provided in Article VI and Exhibit A.