Common use of Default by a Limited Partner Clause in Contracts

Default by a Limited Partner. (a) Upon the failure of any Limited Partner (a "Defaulting Partner") to pay in full when due any portion of its Capital Contribution called for by the General Partner pursuant to section 4.1 and continuation of such failure for sixty (60) days after notice thereof by the General Partner acting on behalf of the Partnership to the Defaulting Partner, the General Partner acting on behalf of the Partnership shall have the right either (i) to take any and all actions permitted under applicable law to collect the defaulted Capital Contribution, or (ii) by notice to the Defaulting Partner, to terminate all of the profits interest of the Defaulting Partner in the Partnership. Upon such termination, the Defaulting Partner shall have no rights or interest in the Partnership except that upon liquidation of the Partnership, the Defaulting Partner shall participate in distributions pursuant to Article VI, but only in an amount up to the lowest of (i) the positive balance, if any, of the Defaulting Partner's Capital Account at the time of the default, or (ii) the Defaulting Partner's Adjusted Capital Contributions, or (iii) the amount the Defaulting Partner would have received if his profits interest in the Partnership had not been terminated pursuant to this Section 4.2. Upon such termination, the Defaulting Partner shall have no right to have its rights or interest reinstated. Upon such termination, the Defaulting Partner shall be excluded for all purposes from any vote or action of the Limited Partners, including those requiring consent. The taking by the General Partner acting on behalf of the Partnership of any action or the commencement of any proceeding to collect a defaulted Capital Contribution shall not preclude the General Partner acting on behalf of the Partnership prior to collection thereof from terminating the profits interest of a Defaulting Partner in the Partnership pursuant to this Section 4.2(a).

Default by a Limited Partner. (a) Upon the failure of any Limited Partner (a "Defaulting Partner") to pay in full when due any portion of its Capital Contribution called for by the General Partner pursuant to section Section 4.1 and continuation of such failure for sixty (60) days after notice thereof by the General Partner acting on behalf of the Partnership to the Defaulting Partner, the General Partner acting on behalf of the Partnership shall have the right either (i) to take any and all actions permitted under applicable law to collect the defaulted Capital Contribution, or (ii) by notice to the Defaulting Partner, to terminate all of the profits interest of the Defaulting Partner in the Partnership. Upon such termination, the Defaulting Partner shall have no rights or interest in the Partnership except that upon liquidation of the Partnership, the Defaulting Partner shall participate in distributions pursuant to Article VI, but only in an amount up to the lowest of (i) the positive balance, if any, of the Defaulting Partner's Capital Account at the time of the default, or (ii) the Defaulting Partner's Adjusted Capital Contributions, or (iii) the amount the Defaulting Partner would have received if his profits interest in the Partnership had not been terminated pursuant to this Section 4.2. Upon such termination, the Defaulting Partner shall have no right to have its rights or interest reinstated. Upon such termination, the Defaulting Partner shall be excluded for all purposes from any vote or action of the Limited Partners, including those requiring consent. The taking by the General Partner acting on behalf of the Partnership of any action or the commencement of any proceeding to collect a defaulted Capital Contribution shall not preclude the General Partner acting on behalf of the Partnership prior to collection thereof from terminating the profits interest of a Defaulting Partner in the Partnership pursuant to this Section 4.2(a).

Default by a Limited Partner. (a) Upon the failure of any Limited Partner (a "Defaulting Partner") to pay in full when due any portion of its Capital Contribution called for by the General Partner pursuant to section Section 4.1 and continuation of such failure for sixty (60) days after notice thereof by the General Partner acting on behalf of the Partnership to the Defaulting Partner, the General Partner acting on behalf of the Partnership shall have the right either (i) to take any and all actions permitted under applicable law to collect the defaulted Capital Contribution, or (ii) by notice to the Defaulting Partner, to terminate all of the profits interest of the Defaulting Partner in the Partnership. Upon such termination, the Defaulting Partner shall have no rights or interest in the Partnership except that upon liquidation of the Partnership, ; the Defaulting Partner shall participate in distributions pursuant to Article VI, but only in an amount up to the lowest of (i) the positive balance, if any, of the Defaulting Partner's Capital Account at the time of the default, or (ii) the Defaulting Partner's Adjusted Capital Contributions, or (iii) the amount the Defaulting Partner would have received if his profits interest in the Partnership had not been terminated pursuant to this Section 4.2. Upon such termination, the Defaulting Partner shall have no right to have its rights or interest reinstated. Upon such termination, the Defaulting Partner shall be excluded for all purposes from any vote or action of the Limited Partners, including those requiring consent. The taking by the General Partner acting on behalf of the Partnership of any action or the commencement of any proceeding to collect a defaulted Capital Contribution shall not preclude the General Partner acting on behalf of the Partnership prior to collection thereof from terminating the profits interest of a Defaulting Partner in the Partnership pursuant to this Section 4.2(a).