Common use of Imposition Clause in Contracts

Imposition. The Partners agree that the damages suffered by the Partnership as the result of any failure by a Limited Partner to make a Contribution or other payment to the Partnership that is required by this Agreement cannot be estimated with reasonable accuracy. As liquidated damages for such default (which each Partner hereby agrees are reasonable), the Capital Account of a Defaulting Partner shall be reduced by an amount equal to 25% of such Defaulting Partner’s Contribution at the time of the default (the “Default Charge”) and each Contribution made by such Defaulting Partner shall be deemed to be reduced by 25% for purposes of Section 13.2 and all purposes under Articles 7 and 8, including, without limitation, calculating such Defaulting Partner’s Unpaid Preferred Return, Internal Rate of Return and Contributions.