Promote Crystallization Clause (90/10 Real Estate Joint Venture) | Practical Law

Promote Crystallization Clause (90/10 Real Estate Joint Venture) | Practical Law

A promote crystallization clause that can be used in a limited liability company (LLC) operating agreement for a real estate joint venture formed between a minority owner operating member, and a majority owner investor member. It allows the operating member to receive or realize its promote without a capital event. This Standard Clause has integrated notes with important explanations and drafting and negotiating tips for both members.

Promote Crystallization Clause (90/10 Real Estate Joint Venture)

Practical Law Standard Clauses w-040-5771 (Approx. 14 pages)

Promote Crystallization Clause (90/10 Real Estate Joint Venture)

by Peter E. Fisch, Ruobing Chen, and Joseph Sommerfeld, Paul, Weiss, Rifkind, Wharton & Garrison LLP, with Practical Law Real Estate
MaintainedUSA (National/Federal)
A promote crystallization clause that can be used in a limited liability company (LLC) operating agreement for a real estate joint venture formed between a minority owner operating member, and a majority owner investor member. It allows the operating member to receive or realize its promote without a capital event. This Standard Clause has integrated notes with important explanations and drafting and negotiating tips for both members.