Capital Contribution Clause
(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). This clause defines the initial capital contributions that the members of the joint venture are obliged to give, and any additional capital contributions, if the members agree. This clause includes practical guidance, drafting notes, and an optional clause. 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). The capitalized terms and section references used in this clause should be conformed to the relevant joint venture 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 amount of capital 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 agreement.