Common use of Distribution of Assets Upon Winding Up Clause in Contracts

Distribution of Assets Upon Winding Up. Upon the winding-up of the Company, the assets will be distributed as follows: (a) to the payment of expenses of the liquidation; (b) to the payment of debts and liabilities of the Company, including debts and liabilities owed to Members (other than liabilities for distributions to Members and former members under Section 18-601 or Section 18-604 of the Act) to the extent permitted by applicable law, in order of priority as provided by applicable law; (c) to the setting up of any reserves that the Manager or the liquidating trustee, as the case may be, determines are reasonably necessary for the payment of any contingent or unforeseen liabilities or obligations of the Company or the Members; (d) to the payment of debts and liabilities of the Company owed to Members to the extent not paid under Section 12.2(b); and (e) to the Members in accordance with their positive Capital Account balances after giving effect to the allocations provided in Article IX for such year.

Distribution of Assets Upon Winding Up. Upon the winding-up of the Company, the assets will be distributed as follows: (a) to the payment of expenses of the liquidation; (b) to the payment of debts and liabilities of the Company, including debts and liabilities owed to Members (other than liabilities for distributions to Members and former members under Section 18-601 or Section 18-604 of the Act) to the extent permitted by applicable law, in order of priority as provided by applicable law; (c) to the setting up of any reserves that the Manager Managers or the liquidating trustee, as the case may be, determines are reasonably necessary for the payment of any contingent or unforeseen liabilities or obligations of the Company or the Members; (d) to the payment of debts and liabilities of the Company owed to Members to the extent not paid under Section 12.2(b); and (e) to the Members in accordance with their positive Capital Account balances after giving effect to the allocations provided in Article IX for such year.