Common use of Application Proceeds Clause in Contracts

Application Proceeds. The proceeds of all sales and collections in respect of any Collateral or other assets of the Company, all funds collected from the Company and any cash contained in the Collateral, the application of which is not otherwise specifically provided for herein, shall be applied as follows: A. First, to the payment of the costs and expenses of such sales and collections, the reasonable expenses of Edge and the reasonable fees and expenses of its counsel; B. Second, any surplus then remaining to the payment of the Secured Obligations in such order and manner as Edge may in its reasonable discretion determine, subject, however, to the rights of the holder of any then existing lien for which Edge has received a proper demand for proceeds prior to making such payment; and C. Third, any surplus then remaining shall be paid to the Company, subject, however, to the rights of the holder of any then existing lien for which Edge has received a proper demand for proceeds prior to making such payment to the Company.