Distributions Clause
(Joint Venture Agreement)

Summary

This Distributions Clause may be included in a limited liability company operating agreement (also referred to as a joint venture agreement). This clause provides for the terms in the distribution of cash or profits to the members of the joint venture. This clause includes practical guidance and drafting notes. The capitalized terms and section references used in this clause should be conformed to the relevant joint venture operating agreement. In this clause, the term "Managing Member" is what is commonly referred to as the operating member of the joint venture and the "Investor Member" is what is commonly referred to as the capital member of the joint venture. Depending on the management of the joint venture and/or the relative investment of the members in the joint venture, you may choose different defined terms to refer to the members. See Limited Liability Company Operating Agreement (Real Estate Joint Venture) for additional clauses and definitions to be contained in a joint venture operating agreement. For a full listing of key content covering real estate joint ventures (90/10 ownership split), see Real Estate Joint Venture Resource Kit (90/10 Real Estate Joint Venture). For a full listing of key content covering commercial real estate, see First Year Associate Resource Kit: Real Estate.