Common use of Failure to Pay Capital Clause in Contracts

Failure to Pay Capital. Should any Member fail to pay the amount of any Capital Call requested by Manager pursuant to this Article 8 (the “Defaulting Member”), any other Member may, at his, her or its election, make the required payment on behalf of the Defaulting Member; provided however, that any Member who/which intends to make such a payment shall first provide written notice of that intention to all other Members (including the Defaulting Member); and the Defaulting Member shall have five (5) days to cure its failure to pay by making payment of the required Capital Call, plus interest on such amount from the date it was due until the date paid, at the Applicable Rate, in good and sufficient US funds. If the Defaulting Member has so affected its cure, no Member will have any further rights under this Section with respect to the failure, which has been cured. Any Member which makes a payment to the Company on behalf of a Defaulting Member pursuant to this Section 8.4 (a “Contributing Member”) shall treat the payment as an additional capital contribution to the capital of the Company for the Contributing Member’s own Capital Account, and in such case, the Contributing Member’s and Defaulting Member’s Ownership Percentage in the Company shall be adjusted in accordance with the formula set forth below. If more than one Member elects to be a Contributing Member, then all contributing Members shall contribute on a pro rata basis determined by the ratio of the respective Membership Interest of the Contributing Members. The respective Ownership Percentage of each Contributing Member and the Defaulting Member shall be adjusted and recalculated in accordance with the following formula: Contributing Member: [(Membership Percentage of Contributing Member multiplied by total invested Capital of Company) plus (Amount of Additional Capital Contributed by Contributing Member on behalf of himself/herself/itself and the Defaulting Member)] divided by [(Total invested Capital of the Company) plus (total Additional Capital Contributions contributed to the Company pursuant to Section 8.3)] Defaulting Member: [(Membership Percentage of Defaulting Member multiplied by total invested Capital of the Company)] divided by [(Total invested Capital of the Company) plus total Additional Capital Contributions contributed to the Company pursuant to Section 8.3)]

Failure to Pay Capital. Should any Member fail to pay the amount of any Capital Call requested by Manager the trustee pursuant to this Article 8 (the “Defaulting Member”), any other Member may, at his, her or its election, make the required payment on behalf of the Defaulting Member; provided provided, however, that any Member who/which intends to make such a payment shall first provide written notice of that intention to all other Members (including the Defaulting Member); and the Defaulting Member shall have five (5) days to cure its failure to pay by making payment of the required Capital Call, plus interest on such amount from the date it was due until the date paid, at the Applicable Rate, in good and sufficient US funds. If the Defaulting Member has so affected its cure, no Member will have any further rights under this Section with respect to the failure, which has been cured. Any Member which makes a payment to the Company trust on behalf of a Defaulting Member pursuant to this Section 8.4 (a “Contributing Member”) shall treat the payment as an additional capital contribution to the capital of the Company trust for the Contributing Member’s own Capital Account, and in such case, the Contributing Member’s and Defaulting Member’s Ownership Percentage in the Company trust shall be adjusted in accordance with the formula set forth below. If more than one Member elects to be a Contributing Member, then all contributing Members shall contribute on a pro pro-rata basis determined by the ratio of the respective Membership Interest of the Contributing Members. The respective Ownership Percentage of each Contributing Member and the Defaulting Member shall be adjusted and recalculated in accordance with the following formula: Contributing Member: [(Membership Percentage of Contributing Member multiplied by total invested Capital of Companytrust) plus (Amount of Additional Capital Contributed by Contributing Member on behalf of himself/herself/itself and the Defaulting Member)] divided by [(Total invested Capital of the Companytrust) plus (total Additional Capital Contributions contributed to the Company trust pursuant to Section 8.3)] Defaulting Member: [(Membership Percentage of Defaulting Member multiplied by total invested Capital of the Companytrust)] divided by [(Total invested Capital of the Companytrust) plus total Additional Capital Contributions contributed to the Company trust pursuant to Section 8.3)]