TREATMENT OF CERTAIN DEFERRED CAPITAL CONTRIBUTIONS. As a result of the K-Resin Accident, the value of certain assets contributed by the Previous Xxxxxxxx Members at Closing had declined from that which existed when the Initial Chevron Member and the Previous Xxxxxxxx Members were first agreeing on the economic terms of the arrangement described in this Agreement. The Initial Chevron Member and the Previous Xxxxxxxx Members could not agree on the amount of the decline in value, in part because they were unable to reach an agreement on the likely time and expense involved in repairing the damage caused by the K-Resin Accident and the degree and permanence of any loss of customers that the K-Resin Accident may cause. In order to resolve the issue, it was agreed that one or more of the Class P Members might have to make capital contributions to the Company after the Closing under the circumstances and in the amounts calculated under the provisions of the Contribution Agreement. The Members view such deferred capital contributions as necessary to preserve the pre K-Resin Accident value of the business and assets contributed by the Class P Members. The Members agree that any deferred contributions are capital contributions and will not be reported as income by the Company.
TREATMENT OF CERTAIN DEFERRED CAPITAL CONTRIBUTIONS. As a result of the K-Resin Accident, the value of certain assets contributed by the Class P Members has declined from that which existed when the Members were first agreeing on the economic terms of the arrangement described in this Agreement. The Members cannot agree on the amount of the decline in value, in part because they are currently unable to reach an agreement on the likely time and expense
TREATMENT OF CERTAIN DEFERRED CAPITAL CONTRIBUTIONS. As a result of the K-Resin Accident, the value of certain assets contributed by the Class P Members has declined from that which existed when the Members were first agreeing on the economic terms of the arrangement described in this Agreement. The Members cannot agree on the amount of the decline in value, in part because they are currently unable to reach an agreement on the likely time and expense involved in repairing the damage caused by the K-Resin Accident and the degree and permanence of any loss of customers that the K-Resin Accident may cause. In order to resolve the issue, one or more of the Class P Members may have to make capital contributions to the Company after the Closing under the circumstances and in the amounts calculated under the provisions of the Contribution Agreement. The Members view such deferred capital contributions as necessary to preserve the pre K-Resin Accident value of the business and assets contributed by the Class P Members. The Members agree that any deferred contributions are capital contributions and will not be reported as income by the Company.
