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Fill and Sign the First Amended and Restated Operating Agreement Secgov Form

Fill and Sign the First Amended and Restated Operating Agreement Secgov Form

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Amended and Restated Operating Agreement (Increasing One Member’s Ownership Interest)Amended and Restated Operating Agreement Of ____________________________________ (Name of LLC), LLC THIS Amended and Restated Operating Agreement (Agreement) is entered into this _________________________ (date), by and between the following persons, hereinafter called Members or Parties:1. ______________________________ (Name of Member)2. ______________________________ (Name of Member)For and in consideration of the mutual covenants contained in this agreement, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows: ARTICLE I FORMATION OF LIMITED LIABILITY COMPANY 1.Formation of LLC. The Parties have formed a _____________________ (Name of State) Limited liability Company named __________________________________ (Name of LLC) (hereinafter sometimes called the LLC) . The operation of the LLC shall be governed by the terms of this Agreement and the provisions of the (Name of State) Limited Liability Company Act ____________________________________ (Citation of Limited Liability Code in State’s Code), hereinafter referred to as the Act. To the extent permitted by the Act, the terms and provisions of this Agreement shall control if there is a conflict between such Law and this Agreement. The Parties intend that the LLC shall be taxed as a partnership. Any provisions of this Agreement, if any, that may cause the LLC not to be taxed as a partnership shall be inoperative.2. Certificate of Formation. The Members Acting through ___________________ ______________________________________________________________________ (Name of Signatories to Certificate of Formation) filed a Certificate of Formation, (the Certificate) for record in the office of the ______________________ (Name of State) Secretary of State on the __________________________ (date), thereby creating the LLC.3. Business. The business of the LLC shall be:A. __________________________________________________________ _______________________________________________________ (Describe)B. To conduct or promote any lawful businesses or purposes within_________________________ (Name of State) or any other jurisdiction which a Limited liability company is legally allowed to conduct or promote. 24. Registered Office and Registered Agent. The initial registered office of the LLC shall be ___________________________________________________________ _______________________________ (street address, city, county, state, zip code), and the initial registered agent at such office shall be _____________________ (Name). The Members may change the registered office and/or registered agent from time to time.5. Duration. The LLC will commence business as of the date of filing andwill continue in perpetuity.6. Fiscal Year. The LLC's fiscal and tax year shall end December 31. ARTICLE IIMEMBERS 7. Initial Members. The initial members of the LLC, their initial capital contributions and their percentage interest in the LLC are:Initial Members Percentage Interest in LLC Capital Contribution______________________ ________% $__________(Name of Member)______________________________% $__________(Name of Member)(If applicable, in addition, ___________________________ (Name of Member), has advanced the LLC the amount of $____________ which the LLC shall pay back on or before ________________________ (Date), said amount to bear interest at the rate of _______% for the date of said Loan).8. Additional Members. New members may be admitted only upon the consent of two-thirds majority of the Members and upon compliance with the provisions of this Agreement. ARTICLE III MANAGEMENT 9. Management. The management of the LLC shall be vested in the Members without an appointed manager. The members shall have the power and authority to bind the LLC in all transact ions and business dealings of any kind except as otherwise provided in this Agreement. ARTICLE IV CONTRIBUTIONS, PROFITS, LOSSES, AND DISTRIBUTIONS 10. Interest of Members. Each Member shall own a percentage interest (sometimes referred to as a share) in the LLC. The Member’s percentage interest shall be based on the amount of cash or other property that the Member has initially contributed to the LLC and that percentage interest shall control the Member’s share of the profits, losses, and distributions from the LLC. 311. Contributions. The initial contributions and initial percentage interest of the Members are as set out in this Agreement.12. Record of Contributions/Percentage Interests. This Agreement, anyAmendment to this Agreement and all Resolutions of the Members of the LLC shall constitute the record of the Members of the LLC and of their respective interest therein.13. Profits and Losses. The profits and losses and all other tax attributes of the LLC shall be allocated among the Members on the basis of the Members' percentage interests in the LLC.14. Distributions. Distributions of cash or other assets of the LLC (other than in dissolution of the LLC ) shall be made in the total amounts and at the times asdetermined by a majority of the Members. Any such distributions shall be allocated among the Members on the basis of the Members' percentage interests in the LLC.15. Change in Interests. If during any year there is a change in a Member'spercentage interest, the Member's share of profits and losses and distributions in thatyear shall be determined under a method which takes into account the varying interestsduring the year. ARTICLE V VOTING; CONSENT TO ACTION 16. Voting by Members. Members shall be entitled to vote on all matters which provide for a vote of the Members in accordance with each Member’s percentage interest. A majority of the Members, based upon their percentage ownership, is required for any Action, other than the day to day management of the LLC.17. Meetings - Written Consent. Action of the Members may be accomplished with or without a meeting. If a meeting is held, evidence of the Action shall be by Minutes or Resolution reflecting the Action of the Meeting, signed by a majority of the Members. Action without a meeting may be evidenced by a written consent signed by a majority of the Members.18. Meetings. Meetings of the Members may be called by any Member owning 25% or more of the LLC .19. Majority Defined. As used throughout this agreement the term Majority of the Members shall mean a majority of the ownership interest of the LLC as determined by the records of the LLC on the date of the Action. ARTICLE VI MEMBERS INTEREST TERMINATED 20.Termination of Membership. A Member’s interest in the LLC shall cease upon the occurrence of one or more of the following events:A.A Member provided notice of withdrawal to the LLC thirty (30) days in advance of the withdrawal date. Withdrawal by a Member is not a breach of this Agreement. 4B. A Member assigns all of his/her interest to a qualified third party.C. A Member dies.D. There is an entry of an order by a court of competent jurisdictionadjudicating the Member incompetent to manage his/her person or his/her estate.E. In the case of an estate that is a Member, the distribution by theFiduciary of the estate's entire interest in the LLC .F. A Member, without the consent of a majority of the Members:1. Makes an assignment for the benefit of creditors;2. Files a voluntary petition in bankruptcy;3. Is adjudicated a bankrupt or insolvent;4. Files a petition or answer seeking for himself or herself any reorganization, arrangement, composition, readjustment, liquidation, dissolution, or similar relief under any statute, law or regulation;5. Files an answer or other pleading admitting or failing to contest the material allegations of a petition filed against him in any proceeding of the nature described in this paragraph;6. Seeks, consents to, or acquiesces in the appointment of a trustee, receiver, or liquidator of the Member or of all or any substantial part of his properties; or7. If any creditor permitted by law to do so should commenceforeclosure or take any other Action to seize or sell any Member's interest in the LLC.G. If within one hundred twenty (120) days after the commencement of any Action against a Member seeking reorganization, arrangement, composition, readjustment, liquidation, dissolution, or similar relief under any statute, law, or regulation, the Action has not been dismissed and/or has not been consented to by a majority of the members.H. If within ninety (90) days after the appointment, without a member’s consent or acquiescence, of a trustee, receiver, or liquidator of the Member or of all or any substantial part of the member’s properties, said appointment is not vacated or within ninety (90) days after the expiration of any stay, the appointment is not vacated and/or has not been consented to by a majority of the members.I. Any of the events provided in applicable code provisions that are not inconsistent with the dissociation events identified above. 521. Effect of Disassociation Any dissociated Member shall not be entitled to receive the fair value of his LLC interest solely by virtue of his or her disassociation. A disassociated Member that still owns an interest in the LLC shall be entitled to continue to receive such profits and losses, to receive such distribution or distributions, and to receive such allocations of income, gain, loss, deduction, credit or similar items to which he would have been entitled if still a Member. For all other purposes, a disassociated Member shall no longer be considered a Member and shall have no rights of a Member. ARTICLE VII RESTRICTIONS ON TRANSFERABILITY OF LLC INTEREST; SET PRICE FOR LLC INTEREST 22. LLC Interest. The LLC interest is personal property. A Member has no interest in property owned by the LLC. All transfers of interest must comply with _____________ ________________________________ (Citation of Limited Liability Code in State’s Code) and any other applicable laws.23. Encumbrance. A Member can encumber his LLC interest by a securityinterest or other form of collateral only with the consent of a majority of the otherMembers. Such consent shall only be given if the proceeds of the encumbrance arecontributed to the LLC to respond to a cash call of the LLC.24. Sale of Interest. A Member can sell his LLC interest only as follows:A. If a Member desires to sell his/her interest, in whole or in part, he/she shall give written notice to the LLC of his desire to sell all or part of his/her interest and must first offer the interest to the LLC . The LLC shall have the option to buy the offered interest at the then existing Set Price as provided in this Agreement. The LLC shall have thirty (30) days from the receipt of the assigning Member's notice to give the assigning Member written notice of its intention to buy all, some, or none of the offered interest. The decision to buy shall be made by a majority of the other Members. Closing on the sale shall occur within sixty (60) days from the date that the LLC gives written notice of its intention to buy. The purchase price shall be paid in cash at closing.B. To the extent the LLC does not buy the offered interest of the selling Member, the other Members shall have the option to buy the offered interest at the Set Price on a pro rata basis based on the Members' percentage interests at that time. Members shall have fifteen (15) days from the date the LLC gives its written notice to the selling Member to give the selling Member notice in writing oftheir intention to buy all, some, or none of the offered interest. Closing on thesales shall occur within sixty (60) days from the date that the Members givewritten notice of their intention to buy. The purchase price from each purchasingMember shall be paid in cash at closing.C. To the extent the LLC or the Members do not buy the offered interest, the selling Member can then assign the interest to a legally qualified non-member. The selling Member must close on the assignment within ninety (90) days of the date that he gave notice to the LLC. If he does not close by that time, he must 6again give the notice and options to the LLC and the LLC Members before he/she sells the interest.D. The selling Member must close on the assignment within ninety (90) days of the date that he/she gave notice to the LLC. If he/she does not close by that time, he/she must again give the notice and options to the LLC and the LLC Members before he/she sells the interest.E. A non-member purchaser of a member’s interest cannot exercise any rights of a Member unless a majority of the non-selling Members consent tohim becoming a Member. The non-member purchaser will be entitled, however,to share in such profits and losses, to receive such distributions, and to receivesuch allocation of income, gain, loss, deduction, credit or similar items to whichthe selling member would be entitled, to the extent of the interest assigned, andwill be subject to calls for contributions under the terms of this Agreement. Thepurchaser, by purchasing the selling member’s interest, agrees to be subject toall the terms of this Agreement as if he/she were a Member.25. Set Price. The Set Price for purposes of this Agreement shall be the price fixed by consent of a majority of the Members. The Set Price shall be memorialized andmade a part of the LLC records. The initial Set Price for each Member's interest is theamount of the Member's contribution to the LLC as provided above, as updated inaccordance with the terms hereof. Any future changes in the Set Price by the Membersshall be based upon net equity in the assets of the LLC (fair market value of the assetsless outstanding indebtedness), considering the most recent appraisal obtained by theLLC for its assets, as may be adjusted by the Members in their discretion. The initialSet Price shall be adjusted upon demand by a Member but not more than once a yearunless all Members consent. This basis for determining the Set Price shall remain ineffect until changed by consent of a majority of the Members. The Members willconsider revising the basis for determining the Set Price at least annually. ARTICLE VIII OBLIGATION TO SELL ON DISSOCIATION EVENT CONCERNING A MEMBER 26. Disassociation. Except as otherwise provided, upon the occurrence of a disassociation event with respect to a Member, the LLC and the remaining Members shall have the option to purchase the dissociated Member's interest at the Set Price in the same manner as provided in ARTICLE VII and as if the dissociated Member had notified the LLC of his desire to sell all of his/her LLC interest. The date the LLC received the notice as provided in ARTICLE VII triggering the options shall be deemed to be the date that the LLC receives Actual notice of the disassociation event. ARTICLE IXDISSOLUTION 27. Termination of LLC. The LLC will be dissolved and its affairs must be wound up only upon the written consent of a majority of the Members.28. Final Distributions. Upon the winding up of the LLC, the assets must bedistributed as follows: (a) to the LLC creditors; (b) to Members in satisf action of liabilities 7for distributions; and (c) to Members first for the return of their contributions and secondly respecting their LLC interest, in the proportions in which the Members share inprofits and losses. ARTICLE X TAX MATTERS 29. Capital Accounts . Capital accounts shall be maintained consistent withInternal Revenue Code § 704 and the regulations hereunder.30. Partnership Election. The Members elect that the LLC be taxed as a partnership and not as an association taxable as a corporation. ARTICLE XI RECORDS AND INFORMATION 31. Records and Inspection. The LLC shall maintain at its place of business the Certificate of Formation, any amendments thereto, this Agreement, and all other LLC records required to be kept by the Act, and the same shall be subject to inspectionand copying at the reasonable request, and the expense, of any Member.32. Obtaining Additional Information. Subject to reasonable standards, each Member may obtain from the LLC from time to time upon reasonable demand forany purpose reasonably related to the Member's interest as a Member in the LLC: (1)information regarding the state of the business and financial condition of the LLC; (2)promptly after becoming available, a copy of the LLC's federal, state, and local incometax returns for each year; and (3) other information regarding the affairs of the LLC as isjust and reasonable. ARTICLE XII MISCELLANEOUS PROVISIONS 33. Amendment. Except as otherwise provided in this Agreement, any amendment to this Agreement may be proposed by a Member. Unless waived by the Members, the proposing Member shall submit to the Members any such proposed amendment together with an opinion of counsel as to the legality of such amendment and the recommendation of the Member as to its adoption. A proposed amendment shall become effective at such time as it has been approved in writing by a majority of the Members. This Agreement may not be amended nor may any rights hereunder bewaived except by an instrument in writing signed by the party sought to be charged withsuch amendment or waiver, except as otherwise provided in this Agreement.34. Applicable Law. To the extent permitted by law, this Agreement shall beconstrued in accordance with and governed by the laws of the State of _____________.35. Pronouns, etc. References to a Member, including by use of a pronoun,shall be deemed to include masculine, feminine, singular, plural, individuals,partnerships or corporations where applicable.36. Counterparts. This instrument may be executed in any number of counterparts each of which shall be considered an original. 837. Specific Performance. Each Member agrees with the other Members that the other Members would be irreparably damaged if any of the provisions of this Agreement are not performed in accordance with their specific terms and that monetary damages would not provide an adequate remedy in such event. Accordingly, it is agreed that, in addition to any other remedy to which the non-breaching Members may be entitled, at law or in equity, the non-breaching Members shall be entitled to injunctive relief to prevent breaches of this Agreement and, specifically, to enforce the terms andprovisions of this Agreement in any Action instituted in any court of the United States orany state thereof having subject matter jurisdiction thereof.38. Further Action. Each Member, upon the request of the LLC, agrees to perform all further Acts and to execute, acknowledge and deliver any documents which may be necessary, appropriate, or desirable to carry out the provisions of this Agreement.39. Method of Notices. All written notices required or permitted by this Agreement shall be hand delivered or sent by certified mail, postage prepaid, addressed to the LLC at its place of business or to a Member as set forth on the Member's signature page of this Agreement (except that any Member may from time to time give notice changing his address for that purpose), and shall be effective when personally delivered or, if mailed, on the date set forth on the receipt of registered or certified mail.40. Facsimiles. For purposes of this Agreement, any copy, facsimile, telecommunication or other reliable reproduction of a writing, transmission or signature may be substituted or used in lieu of the original writing, transmission or signature for any and all purposes for which the original writing, transmission or signature could be used, provided that such copy, facsimile telecommunication or other reproduction shall have been confirmed received by the sending Party.41. Computation of Time. In computing any period of time under this Agreement, the day of the Act, event or default from which the designated period of time begins to run shall not be included. The last day of the period so computed shall be The last day of the period so computed shall be included, unless it is a Saturday, Sunday or legal holiday, in which event the period shall run until the end of the next day which is not a Saturday, Sunday or legal holiday.42. As used herein and unless the context otherwise requires, the singular shall include the plural and vice versa, and the masculine gender shall include the feminine and neuter, and vice versa. Members: _________________________________________ _________________________________________(Printed Name, Address and affix Signature)_________________________________________ _________________________________________ (Printed Name, Address and affix Signature)

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