Contribution Loan definition
Examples of Contribution Loan in a sentence
The collateral security agreement evidencing the collateralization of the Business Contribution Member Loan with the Company Stock and the Earn-Out shall be on such terms as are reasonably acceptable to the Company, which terms shall include, but shall not be limited to, the retention of all of the Company Stock by the Company until full repayment of the Business Contribution Loan.
The Contribution Loan (or Contribution Loans if more than one), shall each be deemed a loan owing by the Non-Contributing Member to the Manager, as applicable.
Such Contribution Loan shall not be treated as a Capital Contribution by the Manager or entitle the Manager to a Percentage Interest.
Such Contribution Loan shall bear interest, compounded annually, at a rate equal to the Prime Rate plus four (4) percentage points per annum.
The Manager shall have the option of obtaining a third-party loan or using its own funds to fund the proceeds for any such Contribution Loan.