Common use of Distribution to Shareholders Clause in Contracts

Distribution to Shareholders. After payment of the Debts of the Corporation and the Costs of Liquidation, the remaining Assets shall, upon dissolution and liquidation of the Corporation, be allocated among the Shareholders in the following order: (a) To all debts and liabilities of the Corporation, including the expenses of dissolution and liquidation; (b) To all Shareholder loans, if any, with unpaid interest; (c) To undistributed Net Profits of the Corporation. “Net Profits” shall mean the difference between the Corporations revenue minus costs;