Capital Contributions Interests Clause Samples
The "Capital Contributions; Interests" clause defines the obligations of parties to provide initial or additional funds (capital contributions) to a business entity and outlines how ownership interests are determined based on these contributions. Typically, it specifies the amount each party must contribute, the timing of such contributions, and how these amounts translate into percentage ownership or membership interests. This clause ensures clarity in financial commitments and ownership structure, preventing disputes by clearly allocating both the responsibility for funding the entity and the resulting rights or interests among the parties.
Capital Contributions Interests. As used in this Agreement, the term “Interest” means an interest in the Company acquired upon the making of an initial capital contribution by Diamond Offshore Finance Company. The Member acknowledges that Diamond Offshore Finance Company has previously made one or more capital contributions to the Company, and immediately prior to the effective date of the Conversion, Diamond Offshore Finance Company owned all of the issued and outstanding shares of capital stock of the Company, which shares were exchanged to represent one hundred percent (100%) of the membership interests of the Company immediately following the Conversion. The Interests were transferred through a series of transactions, the final such transfer being to the Member. Consequently, as of the date of this Agreement, the Member owns one hundred percent (100%) of the Interests. The Member may, but shall not be required to, make additional capital contributions to the Company from time to time as determined by the Member in its sole discretion.
Capital Contributions Interests. As used in this Agreement, the term “Interest” means an interest in the Company acquired upon the making of a capital contribution by the Member. The Member shall make, promptly following the date hereof, an initial capital contribution of US$10,000 to the Company. The Member may, but shall not be required to, make additional capital contributions to the Company from time to time as determined by the Member in its sole discretion.
Capital Contributions Interests