Limited DRO definition
Limited DRO means, with respect to each Member, the dollar amount specified for that Member in Exhibit C that represents the maximum amount of the Member’s deficit in its Capital Account that the Member is obligated to restore to the Company upon the liquidation of the Company.
Examples of Limited DRO in a sentence
Except to the extent of any Limited DRO that a Member may be obligated to restore and as otherwise provided by law with respect to third-party creditors of the Company, upon the dissolution, liquidation, winding-up or termination of the Company, none of the Members shall be liable to the Company, to the other Members, to the creditors of the Company or to any other third party for or on account of any deficit in its Capital Account, nor shall such deficits be deemed assets of the Company.