Capital Contribution Clause
(50/50 Joint Venture Agreement)

Summary

This capital contribution clause may be included in a limited liability company operating agreement (also referred to as a joint venture agreement). The capitalized terms and section references used in this clause should be conformed to the relevant joint venture agreement. This clause includes practical guidance, drafting notes, and an optional clause. This provision should be used in a joint venture agreement where there are two members who will be making equal initial capital contributions to the joint venture. If the joint venture is composed of a capital member contributing a majority of the initial capital, see Capital Contribution Clause (Joint Venture Agreement). See Joint Venture Agreement for additional clauses and definitions to be contained in a joint venture agreement.