IHP’s Maximum Capital Commitment Sample Clauses

IHP’s Maximum Capital Commitment. So long as no Replacement Event has occurred with respect to Developer, IHP shall contribute capital to the Company from time to time to pay Project Costs specified in each Approved Phase Budget; provided, however, at no time shall IHP be required to contribute capital, except to the extent of its Additional Capital requirements, that would cause its Unrecovered Capital Account to exceed Eighteen Million Six Hundred Fifteen Thousand Dollars ($18,615,000.00) (the “Maximum Capital Commitment”). The first Five Million Four Hundred Seventy-Five Thousand Dollars ($5,475,000.00) funded by IHP pursuant to this Section 2.02(a) shall constitute its “Base Capital” and the amounts funded by IHP pursuant to this Section 2.02(a) in excess of such Base Capital shall constitute its “Revolving Capital.” The Members agree that IHP’s Maximum Capital Commitment shall decrease (i) in subsequent Phases as the sales of Units occur, and (ii) to an amount reasonably determined by IHP as the budget for each subsequent Phase is approved by IHP. Advances by IHP shall be made based upon a written request (a “Request for Funds”) submitted to IHP by the Managing Member in accordance with the requirements contained in Exhibit “D” attached hereto. Notwithstanding the foregoing, IHP shall have the right to make capital contributions by advancing funds to or on behalf of the Company notwithstanding any objection by Developer if, in IHP’s discretion, said amounts are required to preserve and/or protect IHP’s investment in the Company or the Company’s interest in the Project. IHP shall have the right to elect, in its discretion, to consider such advances as Base Capital, Revolving Capital or as Additional Capital, and any such advances shall be credited to IHP’s Capital Account and Unrecovered Capital Account when funded. IHP shall notify Developer of amounts, if any, IHP elects to fund pursuant to the previous sentence, which notice shall specify whether such advances are to be treated as part of Base Capital, Revolving Capital or as Additional Capital. The failure of IHP to so specify shall constitute an election to consider such advances as Additional Capital.