Common use of Default in Making Contributions Clause in Contracts

Default in Making Contributions. 6.3.1 If the Limited Partner elects to contribute to an approved Expansion of Existing Operations, or acquisition of Third Party Rights and then defaults in making a contribution, or to the extent that any amounts advanced by Surgold pursuant to Section 10.7 are not repaid out of Allocations to the Limited Partner within thirty (30) days, or otherwise repaid by the Limited Partner, within thirty (30) days after the date on which they are advanced, Surgold may, but is not obligated to, advance the defaulted contribution on behalf of the Limited Partner and treat the same, together with any accrued interest, as a demand loan bearing interest from the date of the advance at the rate and on the terms provided in Section 6.2.2. 6.3.2 The Partners acknowledge that if the Limited Partner defaults in repaying a loan under Subsection 6.3.1, it will be difficult to measure the damages resulting from such default and the damage to Surgold could be significant. In the event of such default, as reasonable liquidated damages, Surgold may, with respect to any such default not cured within thirty (30) days after Notice to the Limited Partner of such default, declare the Limited Partner in default, in which case the Limited Partner’s Participating Interest shall be shall be reduced by two times the amount that would otherwise be calculated pursuant to Section 6.2 in the case of an election under clause (i) of that Section, hereinafter called, Penalty Dilution. If Surgold elects Penalty Dilution, the Limited Partner shall not thereafter be obligated to pay the monies due plus interest in accordance with Section 6.3.1.