Common use of Distribution of Net Proceeds Clause in Contracts

Distribution of Net Proceeds. During the winding-up period, the Members shall continue to divide Net Profits and Losses and Available Cash Flow 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 the payment of creditors (including expenses of winding up and payments to any present or former Members who have made loans or advances to the LLC) in the order of priority as provided by law; (ii) to the Members in accordance with the positive balance in their respective Capital Accounts after adjustments for all allocations of Net Profits and Net Loss during the Fiscal Year in which dissolution of the LLC occurs. Notwithstanding the provisions of Section 4.1 of the Agreement, Net Profits and Net Loss of the LLC resulting from the sale or other disposition of all or substantially all of the LLC assets or otherwise associated with the liquidation of the LLC shall be allocated in a manner designed, to the extent possible, to cause the Capital Account balance of each Member to equal the amount that would be distributed to such Member if all of the LLC Assets were distributed to the Members in accordance with their respective Percentage Interests at the time of the distribution.

Distribution of Net Proceeds. During the winding-up period, the Members shall continue to divide Net Profits and Losses and Available Cash Flow 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: (ia) to To the payment of creditors (including expenses of winding up and payments to any present or former Members who have made loans or advances to the LLC) in the order of priority as provided by law; (iib) to To the Members in accordance with the positive balance in their respective Capital Accounts after adjustments for all allocations of Net Profits and Net Loss during the Fiscal Year in which dissolution of the LLC occurs. Notwithstanding the provisions of Section 4.1 of the Agreement, Net Profits and Net Loss of the LLC resulting from the sale or other disposition of all or substantially all of the LLC assets or otherwise associated with the liquidation of the LLC shall be allocated in a manner designed, to the extent possible, to cause the Capital Account balance of each Member to equal the amount that would be distributed to such Member if all of the LLC Assets were distributed to the Members in accordance with their respective Percentage Interests at the time of the distribution.