Common use of Application of Liquidation Proceeds Clause in Contracts

Application of Liquidation Proceeds. All proceeds from liquidation of the Company’s assets shall be applied and distributed in the following order of priority: (i) First, to the payment of the debts and liabilities of the Company to its creditors (including the Member, if applicable) and the expenses of liquidation; (ii) Second, to the creation of any reserves which the Member may deem reasonably necessary for the payment of any contingent or unforeseen liabilities or obligations of the Company arising out of or in connection with the business and operation of the Company; and (iii) Third, the balance, if any, to the Member.