Common use of Initial Limited Partner Clause in Contracts

Initial Limited Partner. In order to create the Partnership under the Delaware Act, the Managing General Partner has heretofore accepted a capital contribution in the amount of $1,000 from the Initial Limited Partner for an interest as a Limited Partner. As of the Closing Date, the interest so acquired by the Initial Limited Partner in its capacity as such shall be terminated and the amount contributed by it to the Partnership shall be refunded. Any interest or other profit which may have resulted from the investment or other use of such amount paid by the Initial Limited Partner to the Partnership shall be distributed one percent to the General Partners in accordance with their relative percentage interests and ninety-nine percent to the Initial Limited Partner. The interest acquired by the Initial Limited Partner pursuant to this Section 2.7 is not transferable except by operation of law.