Financing the Joint Venture Sample Clauses
The "Financing the Joint Venture" clause defines how the joint venture will be funded by its participants. It typically outlines the initial capital contributions required from each party, the process for making additional contributions if needed, and the mechanisms for securing external financing such as loans or credit lines. This clause ensures that all parties understand their financial obligations and provides a clear framework for raising and managing funds, thereby preventing disputes and ensuring the joint venture has adequate resources to operate effectively.
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Financing the Joint Venture. 9.1 Vegiesafe will invest in the Joint Venture an aggregated amount of $250,000 which will be used for expenses reflected in a budget prepared for the Joint Venture and approved by Vegiesafe and Pimi. The budget shall include such items as EPA approval, flights, accommodations, legal/accounting and first Potato treatments tests, etc. The above sum will be provided on an as required basis according to a working quarterly budget prepared by NewCo or Pimi and as shall be determined by the board of directors of the Joint Venture in accordance with section 5.2 above. Vegiesafe will deposit $40,000 with Pimi on or before January 26, 2009 which will be an advanced of the above amount out of which the sum of $12,400 which Pimi has already expend will be reimbursed to Pimi. Once this amount has been used Vegiesafe will deposit additional amount of $40,000 and so forth. Decision as to costs and expenses relating to the expending the above investment will be taken by mutual consent.
9.2 The Joint Venture will open a bank account when practical. Signature rights in the Joint Venture bank account will be as decided by the Joint Venture Board of Directors.
9.3 Any additional investment in excess of the $250,000 set forth in section 9.1 above shall be contributed by the parties to the Joint Venture upon the mutual consent of the parties taking into account the Joint Venture's business and needs and will be paid to the Joint Venture as follows: 70% to be paid by Pimi and 30% to be paid by Vegiesafe.
9.4 Breach by Vegiesafe of its obligation to invest under section 9.1 above, will be considered a fundamental breach of this LOI and/or the JV Agreement and will enable Pimi or NC to terminate the JV Agreement or this LOI by an advance written notice to Vegiesafe of its default under which it will provide Vegiesafe with a period of 15 days from the date of receipt of Pimi or NC's notice to cure its default of payment of any of the installments payable under section 9.1. In case of termination in the above circumstance Vegiesafe will not be entitled to receive any compensation or the consideration under section 11.4 herein under.
9.5 A breach by Vegiesafe of its obligations to invest in the Joint Venture under section 9.1 above shall not affect EB's rights with respect to EB's investment in Pimi under Section 10.