Common use of Distribution of Net Proceeds Clause in Contracts

Distribution of Net Proceeds. The Members shall continue to divide Net Profits and Net Losses and Available Cash Flow during the winding-up period in the same manner and the same priorities as provided for in Articles IV and V hereof. The proceeds from the liquidation of Property shall be applied in the following order: (i) To creditors other than Members in the order of priority provided by law; then (ii) To creditors who are Members in order of priority, except amounts owed to Members on account of their Capital Contributions; then (iii) To the Members as provided in Section 5.2 hereof. Where the distribution pursuant to this Section 9.5 consists both of cash (or cash equivalents) and non-cash assets, the cash (or cash equivalents) shall first be distributed, in a descending order, to fully satisfy each category starting with the most preferred category set forth above. In the case of non-cash assets, the distribution values are to be based on the fair market value thereof as determined in good faith by the liquidator, and the shortest maturity portion of such non-cash assets (e.g., notes or other indebtedness) shall, to the extent such non-cash assets are readily divisible, be distributed, in a descending order, to fully satisfy each category above, starting with the most preferred category.

Distribution of Net Proceeds. The Members shall continue to divide Net Profits and Net Losses and Available Cash Flow during the winding-up period in the same manner and the same priorities as provided for in Articles IV V and V VI hereof. The proceeds from the liquidation of Property shall be applied in the following order: (i) To to creditors other than Members in the order of priority provided by law; then; (ii) To to creditors who are Members in order of priority, except amounts owed to Members on account of their Capital Contributions; then. (iii) To to Members in respect of their share of the Net Profits and other compensation by way of income on their Capital Contributions; (iv) to Members as provided for return of their Capital Contributions; and (v) to Members in Section 5.2 hereofaccordance with the respective positive Capital Account balances after giving effect to all Capital Contributions, distributions, revaluations and allocations required under this Agreement. Where the distribution pursuant to this Section 9.5 11.5 consists both of cash (or cash equivalents) and non-cash assets, the cash (or cash equivalents) shall first be distributed, in a descending order, to fully satisfy each category starting with the most preferred category set forth above. In the case of non-cash assets, the distribution values are to be based on the fair market value thereof as determined in good faith by the liquidator, and the shortest maturity portion of such non-cash assets (e.g., notes or other indebtedness) shall, to the extent such non-cash assets are readily divisible, be distributed, in a descending order, to fully satisfy each category above, starting with the most preferred category.