Treatment of Book Capital Account of Expelled Partner. Any Partner so expelled shall, within a reasonable period determined by the Partnership which may include installment payments over five (5) years after the date the expulsion becomes effective, be paid the positive balance, if any, in its Book Capital Account after: (a) closing out its profits and losses (as determined under GAAP) for Book Capital Account purposes; and (b) further subtracting from its Book Capital Account the expelled Partner's or its Affiliate's share of any then existing liabilities of the Partnership, whether or not then due and owing, and any actual damages suffered by the Partnership and other Partners by reason of the default. If the balance in the expelled Partner's Book Capital Account is positive after the closing out of its profits and losses and the subtraction of its (or its Affiliate's) share of then due and owing liabilities of the Partnership, as well as the payment of any damages (which subtracted items are herein referred to as "Current Liabilities"), but such balance is less than the total of such former Partner's (or its Affiliate's) share of any other potential existing Partnership liabilities which are not then due and owing (herein "Non-Current Liabilities"), the Partnership shall retain such part of the expelled Partner's Book Capital Account as is equal to the amount of the expelled Partner's share of such Non-Current Liabilities, until all such liabilities are paid in full. Such retained moneys may be invested and reinvested as the Partnership deems appropriate and shall constitute a security interest in the possession of the Partnership to secure the payment of such Non-Current Liabilities of the expelled Partner, and such expelled Partner agrees that such security interest in its Book Capital Account shall pass to the Partnership and the Partnership shall take possession thereof for the purpose of obtaining perfection of such security interest on the earlier of the date of its expulsion or the date the expelled Partner enters voluntary bankruptcy proceedings of any type or becomes bankrupt. The Partnership shall apply all amounts retained from the expelled Partner's Book Capital Account (including any interest earned thereon) to the payment of such Non-Current Liabilities to the extent that such payments would have constituted a proper charge against the Book Capital Account of such expelled Partner had it not been expelled. At the time that all Non-Current Liabilities of the Partner shall have been paid in full...
