Common use of Sale of Artwork Clause in Contracts

Sale of Artwork. The Artwork held by each Series may be sold prior to the fifth anniversary of its Acquisition Date only if a compelling offer is received by the Managing Member and approved by a Majority Vote of the Series Members. The Series Members, by a Majority Vote, may cause the Managing Member to consummate a sale of the Artwork in either the sixth or seventh years following its Acquisition Date. If a prior sale has not been so approved, the Managing Member must sell the Artwork in the eighth year following the Acquisition Date (although the consummation of the transaction may extend into the following year). The Managing Member shall use commercially reasonable efforts to effect the sale of the Artwork at favorable prices and terms, but otherwise in its sole discretion (provided that any such sale shall only be for cash). The sale of the Artwork may be effected through a public auction or private sale, and if through a public auction, the Managing Member may form an investor group, including Series Members who wish to retain indirect ownership in the Artwork, to bid as a group to acquire the Artwork using the Auction Platform. Notwithstanding the foregoing, the Managing Member may be required to sell the Artwork without the approval of the Series Members if (a) the Series has incurred material Extraordinary Expenses which the Managing Member is unable or unwilling to fund and cannot find third party financing under reasonable terms, or (b) an Extraordinary Loan funded by a third party has matured and the Managing Member is unable to extend such maturity date or find alternative financing to repay the matured loan.

Sale of Artwork. The Artwork held by each Series may be sold prior to the fifth anniversary of its Acquisition Date only if a compelling offer is received by the Managing Member and approved by a Majority Vote of the Series Members. The Series Members, by a Majority Vote, may cause the Managing Member to consummate a sale of the Artwork in either the sixth or seventh years following its Acquisition Date. If a prior sale has not been so approved, the Managing Member must sell the Artwork in the eighth year following the Acquisition Date (although the consummation of the transaction may extend extent into the first few months of the following year). The Managing Member shall use commercially reasonable efforts to effect the sale of the Artwork at favorable prices and terms, but otherwise in its sole discretion (provided that any such sale shall only be for cash). The sale of the Artwork may be effected through a public auction or private sale, and if through a public auction, the Managing Member may form an investor group, including Series Members who wish to retain indirect ownership in the Artwork, to bid as a group to acquire the Artwork using the Auction Platform. Notwithstanding the foregoing, the Managing Member may be required to sell the Artwork without the approval of the Series Members if (a) the Series has incurred material Extraordinary Expenses which the Managing Member is unable or unwilling to fund and cannot find third party financing under reasonable terms, or (b) an Extraordinary Loan funded by a third party has matured and the Managing Member is unable to extend such maturity date or find alternative financing to repay the matured loan.