Common use of Procedure for Winding-Up Clause in Contracts

Procedure for Winding-Up. If the Company is dissolved, the Board of Managers shall wind up its affairs. On winding up of the Company, the assets of the Company shall be distributed as follows: first, to creditors, including Members who are creditors, to the extent otherwise permitted by law, in satisfaction of liabilities of the Company, other than liabilities for which reasonable provision has been made and liabilities of the type referred to in the next two paragraphs; second, those amounts deemed necessary by the Board of Managers for any contingent liabilities or obligations of the Company will be set aside as a reserve for contingent liabilities to be distributed at such time and in such manner hereunder as the Board of Managers will determine it its sole discretion; third, to Unit Holders and former Members who have received a Withdrawal Notice pursuant to Section 6.4.2, for unpaid distributions to which they became entitled prior to dissolution or withdrawal, as applicable; fourth, to Interest Holders and Members, who have received Withdrawal Notice pursuant to Section 6.4.2 but not yet received the Withdrawal Purchase Price; and fifth to Unit Holders in proportion to their remaining Capital Account balances after taking into account all contributions, distributions and allocations for all periods.

Procedure for Winding-Up. If the Company is dissolved, the Board of Managers Directors shall wind up its affairs. On winding up of the Company, the assets of the Company shall be distributed as follows: first, to creditors, including Members who are creditors, to the extent otherwise permitted by law, in satisfaction of liabilities of the Company, other than liabilities for which reasonable provision has been made and liabilities of the type referred to in the next two paragraphs; second, those amounts deemed necessary by the Board of Managers Directors for any contingent liabilities or obligations of the Company will be set aside as a reserve for contingent liabilities to be distributed at such time and in such manner hereunder as the Board of Managers Directors will determine it in its sole discretion; third, to Unit Interest Holders and former Members who have received a Withdrawal Notice pursuant to Section 6.4.2, for unpaid distributions to which they became become entitled prior to dissolution or withdrawal, as applicable; fourth, to Interest Holders and Members, Members who have received a Withdrawal Notice pursuant to Section 6.4.2 but not yet received the Withdrawal Purchase Price; and fifth to Unit Interest Holders in proportion to their remaining Capital Account balances after taking into account all contributions, distributions and allocations for all periods.