Dilution, Withdrawal/Exit, Assignment

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Dilution, Withdrawal/Exit, Assignment

The JV parties should agree in advance the circumstances where the dilution of a JV partner will be permitted. Due consideration should be given to the impact of the dilution on approved programmes and in particular the effect it will have on the respective on-going contributions of the JV partners. The interests and the contributions of the remaining non-diluted JV partners should be recalculated on a pro-rata basis to reflect their revised respective shares in the JV. The recalculation formulae should be agreed in advance and should be included as a schedule to the JV agreement. Provisions relating to the issuing of a dilution notice should also be included...
http://www.charltonsnaturalresources.com/en/joint-venture-agreements/dilution-withdrawal-assignment