Common use of Special Rules Governing Distributions Clause in Contracts

Special Rules Governing Distributions. In general, all distributions shall be made to Members owning Common Shares, in proportion to the number of Common Shares owned by each Member. However, at any time when Preferred Shares are outstanding, distributions shall be made in accordance with the terms of the Authorizing Resolution(s) authorizing such Preferred Shares. Except as otherwise provided in this Agreement or in an Authorizing Resolution establishing a class of Preferred Shares (i) any distributions of the Company not expressly payable to the holders of a class of Preferred Shares shall be payable to the holders of the Common Shares, (ii) any distributions made to the holders of any class of Preferred Shares as a group shall be divided pro rata among such holders based on their respective ownership of the Shares of such class, and (iii) no Member shall have any right to distributions except as may be authorized by the Manager.