Operational Shortfalls Clause Samples
The Operational Shortfalls clause defines the procedures and responsibilities when a party fails to meet agreed operational standards or performance metrics. Typically, this clause outlines the steps for identifying, reporting, and remedying such shortfalls, which may include notification requirements, timelines for corrective action, and potential consequences like penalties or service credits. Its core function is to ensure accountability and provide a clear framework for addressing and resolving performance issues, thereby minimizing disruption and maintaining service quality.
Operational Shortfalls. If an Operational Shortfall occurs at any time and a Deficit Loan is not made by one or both of the Partners pursuant to the provisions of Article VI hereof in an amount sufficient to cover such Operational Shortfall, then each Partner shall be obligated to contribute to the capital of the Partnership its Percentage Interest of the amount of funds needed to cover such Operational Shortfall.
Operational Shortfalls. Subject to the provisions of Section 6.02 hereof, the following provisions shall apply:
(a) If a Qualified Operational Shortfall occurs at any time, then the Managing Partner shall deliver a notice ("Qualified Shortfall Notice") to the Partners specifying the amount of funds needed to cover such Qualified Operational Shortfall and stating that each Partner is obligated to contribute to the capital of the Partnership its Percentage Interest of the amount of funds needed to cover such Qualified Operational Shortfall. Following delivery of a Qualified Shortfall Notice to the Partners by the Managing Partner, each Partner shall be obligated to contribute to the capital of the Partnership, within fifteen (15) days following receipt of such Qualified Shortfall Notice, its respective Percentage Interest of the amount of funds needed to cover the Qualified Operational Shortfall as set forth in such Qualified Shortfall Notice.
(b) As used herein, the term "Qualified Operational Shortfall" shall mean the occurrence or happening, at any time, in the Managing Partner's reasonable discretion, of the circumstance of the Partnership having an insufficient amount of cash to pay or cover the Qualified Liabilities (herein defined) of the Partnership as they become due.
Operational Shortfalls. If an Operational Shortfall occurs at any time, then the Manager shall deliver a notice to the Partners specifying that an Operational
Operational Shortfalls. Any items related to the reasonable operation of the Property and Business, whether identified by the Manager, the Operating Partnership, or the Contributor to comply with brand standards or industry standards when compared to similar select service hotel business.
Operational Shortfalls. (a) If a Qualified Operational Shortfall (herein defined) occurs at any time, then the Managing Partner shall have the express right to deliver a notice ("Operating Expense Notice") to the Partners specifying the amount of funds needed to cover such Qualified Operational Shortfall and stating that each Partner is obligated to contribute to the capital of the Partnership its Percentage Interest of the amount of funds needed to cover such Qualified Operational Shortfall. Following delivery of an Operating Expense Notice to the Partners by the Managing Partner, each Partner shall be obligated to contribute to the capital of the Partnership its respective Percentage Interest of the amount of funds needed to cover the Qualified Operational Shortfall as set forth in such Operating Expense Notice on or before the due date determined in accordance with the following provisions:
(1) The due date for all of Pavilion's required contributions pursuant to an Operating Expense Notice shall be twenty (20) days following receipt of such Operating Expense Notice.
(2) Except as provided in clause (3), the due date for all of Cellar Door's required contributions pursuant to an Operating Expense Notice shall be twenty (20) days following receipt of such Operating Expense Notice.
(3) To the extent, but only to the extent, that the aggregate capital contributions required to be made by Cellar Door pursuant to this Section 5.04(a) with respect to any Amphitheater Fiscal Year exceed $250,000, the due date for such contributions to the Partnership shall be one hundred twenty (120) days following receipt of the corresponding Operating Expense Notice.
(b) As used herein, the term "Qualified Operational Shortfall" shall mean the occurrence or happening, at any time, in the Managing Partner's reasonable discretion, of the circumstance of the Partnership having an insufficient amount of cash to pay or cover the Qualified Liabilities (herein defined) of the Partnership as they become due.
Operational Shortfalls. (a) If a Qualified Operational Shortfall (herein defined) occurs at any time, then the Managing Partner shall have the express right to deliver a notice ("Capital Call Notice") to the Partners specifying the amount of funds needed to cover such Qualified Operational Shortfall and stating that each Partner is obligated to contribute to the capital of the Partnership its Percentage Interest of the amount of funds needed to cover such Qualified Operational Shortfall. Following delivery of a Capital Call Notice to the Partners by the Managing Partner, each Partner shall be obligated to make on or before the Due Date (herein defined) for such Capital Call Notice a capital contribution to the Partnership in an amount equal to its respective Percentage Interest of the amount of funds needed to cover the Qualified Operational Shortfall as set forth in such Capital Call Notice.
(b) If a Partner elects to extend a Deficit Loan to the Partnership following the sending of a Capital Call Notice in order to assist the Partnership in covering the Qualified Operational Shortfall referred to in such Capital Call Notice, then (i) the capital contribution obligation which accrued pursuant to Section 5.03(a) hereof as a result of the sending of such Capital Call Notice shall still be payable by both Partners on or before the Due Date for such Capital Call Notice and (ii) the proceeds of such capital contribution obligation shall be used first to discharge and pay any amounts still outstanding under such Deficit Loan at the time that such capital contribution obligation is fulfilled.
(c) As used herein, the term "Qualified Operational Shortfall" shall mean the occurrence or happening, at any time, in the Managing Partner's reasonable discretion, of the circumstance of the Partnership having an insufficient amount of cash to pay or cover the Qualified Liabilities (herein defined) of the Partnership as they become due.
Operational Shortfalls. 33 4.13 Cost Overruns ............................................ 33 4.14 No Other Capital Contribution Obligations ................ 34 4.15