Common use of Eligible Investors Clause in Contracts

Eligible Investors. A. If the General Partner determines that a Unit Holder is not an Eligible Investor then the Unit Holder shall immediately be divested of its rights to Consent on matters submitted to Unit Holders (and no such Units shall be deemed outstanding for purposes of Consents of Unit Holders under this Agreement). At any time after it can and does certify that it has become an Eligible Investor, a Unit Holder may, upon application to the General Partner, retain all of the rights and benefits attributable to his Units. B. If at any time (i) the Partnership, the General Partner or the Depositary receives an opinion of counsel to the effect that the citizenship or other status of a Unit Holder may result in the forfeiture or cancellation of a federal Lease or otherwise affects the eligibility of the Partnership to hold federal Leases or (ii) the Partnership or the General Partner is named a party in any judicial or administrative proceeding that seeks the cancellation or forfeiture of any property in which the Partnership has an interest because of the citizenship (or any other status that subjects the Partnership to the risk of losing its eligibility to acquire or hold interests in federal Leases) of any one or more Unit Holders, the General Partner may notify the Unit Holder and purchase the Units of such Unit Holder for its own account, at such time and for such amount as the General Partner may determine in its sole discretion. Nothing in this Section 8.3 shall prevent a Unit Holder from transferring his Units prior to the date set for such purchase by the General Partner.