Common use of Mandatory Additional Capital Contributions Clause in Contracts

Mandatory Additional Capital Contributions. a. Except in the instance of a Development Cost Overrun Loan under Sections 8.04(c) and 8.04(d), and subject further to Stonehenge Member’s right to call capital as provided in Section 6.06.2 other than for Development Cost Overruns, in the event the Company is reasonably expected to incur, a Non-Development Cost Overrun or is unable to pay its cash obligations as and when they become due, and thus has or is expected to have an actual cash flow deficit, and such funds cannot be obtained pursuant to the procedures set forth in Sections 8.01, 8.02 and 8.03 above, the Managers shall determine and notify the Members of the amount of such required additional funds to any such deficit. In such event, each Member shall have thirty (30) days to make a Capital Contribution of its pro-rata share (i.e. based upon the Ownership Percentage) of the necessary funds (an “Additional Capital Contribution”). For these purposes, a “Non-Development Cost Overrun” shall mean any cost overruns which are (i) attributable to taxes, insurance premiums, Debt Service and/or operating deficits, and (ii) not the subject of a Stonehenge Cost Overrun Loan. b. In the event a Member fails to make all of its Additional Capital Contribution (“Defaulting Member”) as required in subparagraph (a) above on the due date (the “Contribution Default Date”), the following shall apply: (i) The Defaulting Member’s voting rights and rights to participate in the management of the business of the Company shall automatically be suspended.