Distribution on Termination. On termination of the Company, assets shall be distributed and applied by the Company in the following order and priority: (i) to the payment of all expenses of the Company incident to winding up; then (ii) to the payment of debts and liabilities of the Company then due and outstanding (including all debts due to any Interest Holder); then (iii) to the establishment of any reserves which the Manager deems necessary for liabilities or obligations of the Company; then (iv) the balance shall be distributed to the Interest Holders in accordance with their respective Capital Account balances.
Appears in 5 contracts
Sources: Operating Agreement (Aldila Inc), Operating Agreement (Synergy Brands Inc), Operating Agreement (Miller Lloyd I Iii)