Exhibit 3.2
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FIRST UNION PASS CO., INC.,
as Member,
Xxxxx Xxxxx,
as Special Member,
and
Xxxxxx Xxxxx
as Special Member
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POOLED AUTO SECURITIES SHELF LLC
LIMITED LIABILITY
COMPANY AGREEMENT
Dated as of April 15, 2000
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TABLE OF CONTENTS
PAGE
ARTICLE ONE
DEFINITIONS
Section 1.01. Definitions................................................ 1
Section 1.02. Other Definitional Provisions.............................. 4
ARTICLE TWO
ORGANIZATION OF COMPANY
Section 2.01. Name and Office............................................ 4
Section 2.02. Registered Office.......................................... 5
Section 2.03. Registered Agent........................................... 5
Section 2.04. Members.................................................... 5
Section 2.05. Execution, Delivery and Filing of Certificates............. 5
Section 2.06. Execution of Instruments................................... 6
ARTICLE THREE
PURPOSES
Section 3.01. Purposes................................................... 7
Section 3.02. Powers..................................................... 8
ARTICLE FOUR
MANAGEMENT
Section 4.01. Board of Directors......................................... 9
Section 4.02. Powers..................................................... 9
Section 4.03. Meeting of the Board of Directors.......................... 9
Section 4.04. Quorum; Acts of the Board.................................. 9
Section 4.05. Electronic Communications.................................. 9
Section 4.06. Committees of Directors.................................... 9
Section 4.07. Compensation of Directors; Expenses........................ 9
Section 4.08. Removal of Directors....................................... 10
Section 4.09. Directors as Agents........................................ 10
Section 4.10. Limitations on the Company's Activities.................... 10
Section 4.11. Independent Director....................................... 13
Section 4.12. Officers................................................... 13
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ARTICLE FIVE
CONTRIBUTIONS; PROFITS AND LOSSES; DISTRIBUTIONS
Section 5.01. Capital Contributions...................................... 15
Section 5.02. Additional Contributions................................... 15
Section 5.03. Allocation of Profits and Losses........................... 15
Section 5.04. Distributions.............................................. 15
ARTICLE SIX
BOOKS AND RECORDS; REPORTS
Section 6.01. Books and Records.......................................... 16
Section 6.02. Reports.................................................... 16
ARTICLE SEVEN
EXCULPATION AND INDEMNIFICATION; LIMITED LIABILITY
Section 7.01. Exculpation and Indemnification............................ 17
Section 7.02. Limited Liability.......................................... 18
Section 7.03. Other Business............................................. 18
ARTICLE EIGHT
ASSIGNMENT; RESIGNATION; DISSOLUTION
Section 8.01. Assignments................................................ 19
Section 8.02. Resignation................................................ 19
Section 8.03. Admission of Additional Members............................ 19
Section 8.04. Dissolution................................................ 19
Section 8.05. Waiver of Partition; Nature of Interest.................... 20
ARTICLE NINE
MISCELLANEOUS
Section 9.01. Amendments................................................. 21
Section 9.02. Benefits of Agreement; No Third-Party Rights............... 21
Section 9.03. Severability of Provisions................................. 21
Section 9.04. Entire Agreement........................................... 21
Section 9.05. Binding Agreement.......................................... 21
Section 9.06. Governing Law.............................................. 21
Section 9.07. Counterparts............................................... 21
Section 9.08. Notices.................................................... 21
Section 9.09. Effectiveness.............................................. 22
EXHIBITS
Exhibit A - Members; Capital Contributions; Membership Interest.... A-1
Exhibit B - Management Agreement................................... B-1
Exhibit C - Directors.............................................. C-1
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LIMITED LIABILITY COMPANY AGREEMENT
This Limited Liability Company Agreement, dated as of April 15, 2000, is
among First Union Pass Co., Inc., as the sole equity member (the "Member"), and
Xxxxx Xxxxx and Xxxxxx Xxxxx, as Special Members (as defined in Section 1.01
hereof).
RECITALS
WHEREAS, the parties desire to form Pooled Auto Securities Shelf LLC (the
"Company") as a limited liability company pursuant to and in accordance with the
Delaware Limited Liability Company Act (6 Del. X.xx. 18-101 et seq.), as amended
from time to time (the "Act").
NOW, THEREFORE, in consideration of the mutual agreements herein contained,
and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto agree as follows:
ARTICLE ONE
DEFINITIONS
SECTION 1.01. DEFINITIONS. As used herein the following terms shall have
the following meanings:
"ACT" has the meaning set forth in the recitals to this Agreement.
"AFFILIATE" of any Person means any other Person that (i) directly or
indirectly controls, is controlled by or is under common control with such
Person (excluding any trustee under, or any committee with responsibility for
administering, any employee benefit plan) or (ii) is an officer, director,
member or partner of such Person. For purposes of this definition, a Person
shall be deemed to be "controlled by" another Person if such other Person
possesses, directly or indirectly, the power (i) to vote 5% or more of the
securities (on a fully diluted basis) having ordinary voting power for the
election of directors, members or managing partners of such Person or (ii) to
direct or cause the direction of the management and policies of such Person,
whether by contract or otherwise.
"AGREEMENT" means this Limited Liability Company Agreement, together with
the Exhibits hereto, as amended, restated or supplemented or otherwise modified
from time to time.
"BANKRUPTCY" means, with respect to any Person, if such Person (i) makes an
assignment for the benefit of creditors, (ii) files a voluntary petition in
bankruptcy, (iii) is adjudged bankrupt or insolvent, or has entered against it
an order for relief, in any bankruptcy or insolvency proceedings, (iv) files a
petition or answer seeking for itself any reorganization, arrangement,
composition, readjustment, liquidation or similar relief under any statute, law
or regulation, (v) files an answer or other pleading admitting or failing to
contest the material allegations of a petition filed against it in any
proceeding of this nature, (vi) seeks, consents to or acquiesces in the
appointment of a trustee, receiver or liquidator of the Person or of all or any
substantial part
of its properties, or (vii) if 120 days after the commencement of any proceeding
against the Person seeking reorganization, arrangement, composition,
readjustment, liquidation or similar relief under any statute, law or
regulation, if the proceeding has not been dismissed, or if within 90 days after
the appointment without such Person's consent or acquiescence of a trustee,
receiver or liquidator of such Person or of all or any substantial part of its
properties, the appointment is not vacated or stayed, or within 90 days after
the expiration of any such stay, the appointment is not vacated. The foregoing
definition of "Bankruptcy" is intended to replace and shall supersede and
replace the definition of "Bankruptcy" set forth in Sections 18-101(1) and
18-304 of the Act.
"BASIC DOCUMENTS" means this Agreement, the Management Agreement, and all
documents and certificates contemplated thereby or delivered in connection this
Agreement, the Management Agreement, the formation of a Securitization Trust or
the issuance of Securities.
"BOARD" or "BOARD OF DIRECTORS" means the Board of Directors of the
Company.
"CERTIFICATE OF FORMATION" means the Certificate of Formation of the
Company filed with the Delaware Secretary of State on April 15, 2000, as amended
or amended and restated from time to time.
"COMPANY" means Pooled Auto Securities Shelf LLC, a Delaware limited
liability company.
"COVERED PERSONS" has the meaning set forth in Section 7.01(a).
"DELAWARE SECRETARY OF STATE" means the Secretary of State of the State of
Delaware, and its successors.
"DIRECTORS" means the Persons elected to the Board of Directors from time
to time by the Member, including the Independent Directors, in their capacity as
managers of the Company. A Director is hereby designated as a "manager" of the
Company within the meaning of Section 18-101(10) of the Act.
"INDEPENDENT DIRECTOR" means a natural person who, for the five-year period
prior to his or her appointment as Independent Director has not been, and during
the continuation of his or her service as Independent Director is not: (i) an
employee, director, stockholder, partner or officer of the Company or any of its
Affiliates (other than his or her service as an Independent Director of the
Company), (ii) a customer or supplier of the Company or any of its Affiliates or
(iii) any member of the immediate family of a person described in (i) or (ii).
An individual that otherwise satisfies the foregoing shall not be
disqualified from serving as an Independent Director of the Company if such
individual is at the time of initial appointment, or at any time while serving
as an Independent Director of the Company, an Independent Director of a Special
Purpose Entity affiliated with the Company or the Member. For purposes of this
paragraph only, a "Special Purpose Entity" is an entity whose organizational
documents contain restrictions on its activities and impose requirements
intended to preserve its
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separateness that are substantially similar to those of the Company, and
provide, inter alia, that it is (a) organized for a limited purpose; (b) has
restrictions on its ability to incur indebtedness, dissolve, liquidate,
consolidate, merge and/or sell assets; (c) may not file voluntarily a bankruptcy
petition on its own behalf (and/or on behalf of certain Affiliates) without the
consent of the Independent Director(s); and (d) shall conduct itself (and/or
cause certain Affiliates to conduct themselves) in accordance with certain
"separateness covenants," including, but not limited to, the maintenance of
books, records, bank accounts and assets separate from those of any other
Person.
"MANAGEMENT AGREEMENT" means the agreement of the Directors substantially
in the form attached hereto as Exhibit B.
"MATERIAL ACTION" means to consolidate or merge the Company with or into
any Person, or sell all or substantially all of the assets of the Company, or to
institute proceedings to have the Company be adjudicated bankrupt or insolvent,
or consent to the institution of Bankruptcy proceedings against the Company or
file a petition seeking, or consent to, reorganization or relief with respect to
the Company under any applicable federal or state law relating to Bankruptcy, or
consent to the appointment of a receiver, liquidator, assignee, trustee,
sequestrator (or other similar official) of the Company or a substantial part of
its property, or make any assignment for the benefit of creditors of the
Company, or admit in writing the Company's inability to pay its debts generally
as they become due, or take action in furtherance of any such action, or, to the
fullest extent permitted by law, dissolve or liquidate the Company.
"MEMBER" means First Union Pass Co., Inc., as the initial member of the
Company, and includes any Person admitted as an additional member of the Company
or a substitute member of the Company pursuant to the provisions of this
Agreement, each in its capacity as a member of the Company; provided, however,
the term "Member" shall not include the Special Members.
"OBLIGATIONS" shall mean the indebtedness, liabilities and obligations of
the Company under or in connection with this Agreement, the other Basic
Documents or any related document in effect as of any date of determination.
"OFFICER" means an officer of the Company described in Section 4.12.
"OFFICER'S CERTIFICATE" means a certificate signed by any Officer who is
authorized to act for the Company in matters relating to the Company.
"PERSON" means any legal person, including any individual, corporation,
partnership, joint venture, association, limited liability company, joint stock
company, trust, business trust, bank, trust company, estate (including any
beneficiaries thereof), unincorporated organization or government or any agency
or political subdivision thereof.
"RATING AGENCY" means each nationally recognized rating agency that has
rated any Securities that have been issued and are outstanding pursuant to any
pooling and servicing agreement, indenture, trust agreement or other similar
agreement entered into by the Company or any of its Affiliates.
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"RATING AGENCY CONDITION" means, with respect to any action, that each
Rating Agency shall have been given ten days prior notice thereof and that each
of the Rating Agencies shall have notified the Company in writing that such
action will not result in a reduction or withdrawal of the then current rating
by such Rating Agency of any Securities.
"RECEIVABLES " has the meaning set forth in Section 3.01(a).
"SECURITIES" has the meaning set forth in Section 3.01(b).
"SECURITIZATION TRUST" has the meaning set forth in Section 3.01(b).
"SPECIAL MEMBER" means, upon such person's admission to the Company as
a member of the Company pursuant to Section 2.04(c), a person acting as
Independent Director, in such person's capacity as a member of the Company. A
Special Member shall only have the rights and duties expressly set forth in this
Agreement.
SECTION 2.02. OTHER DEFINITIONAL PROVISIONS.
(a) For all purposes of this Agreement, except as otherwise expressly
provided or unless the context otherwise requires, (i) terms used herein
include, as appropriate, all genders and the plural as well as the singular,
(ii) references to words such as "herein", "hereof" and the like shall refer to
this Agreement as a whole and not to any particular part, article or section
within this Agreement, (iii) references to a section such as "Section 1.01" and
the like shall refer to the applicable section of this Agreement, (iv) the term
"include" and all variations thereof shall mean "include without limitation" and
(v) the term "or" shall include "and/or".
(b) As used in this Agreement and in any certificate or other document made
or delivered pursuant hereto or thereto, accounting terms not defined in this
Agreement or in any such certificate or other document, and accounting terms
partly defined in this Agreement or in any such certificate or other document to
the extent not defined, shall have the respective meanings given to them under
generally accepted accounting principles in effect from time to time. To the
extent that the definitions of accounting terms in this Agreement or in any such
certificate or other document are inconsistent with the meanings of such terms
under such generally accepted accounting principles, the definitions contained
in this Agreement or in any such certificate or other document shall control.
ARTICLE TWO
ORGANIZATION OF COMPANY
SECTION 2.01. NAME AND OFFICE. The name of the limited liability company
formed hereby is Pooled Auto Securities Shelf LLC, and its office shall be
located at One First Xxxxx Xxxxxx, XX-0, Xxxxxxxxx, Xxxxx Xxxxxxxx 00000 or such
other location as may hereafter be determined by the Member.
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SECTION 2.02. REGISTERED OFFICE. The address of the registered office of
the Company in the State of Delaware is c/o Corporation Service Company, 1013
Centre Road, in the City of Wilmington, County of Xxx Xxxxxx, Xxxxxxxx 00000.
SECTION 2.03. REGISTERED AGENT. The name and address of the registered
agent of the Company for service of process on the Company in the State of
Delaware is Corporation Service Company, 0000 Xxxxxx Xxxx, xx xxx Xxxx xx
Xxxxxxxxxx, Xxxxxx of Xxx Xxxxxx, Xxxxxxxx 00000.
SECTION 2.04. MEMBERS.
(a) The mailing address of the Member is set forth on Exhibit A hereto. The
Member was admitted to the Company as a member of the Company upon its execution
of a counterpart signature page to this Agreement.
(b) Subject to Section 4.10, the Member may act by written consent.
(c) Upon the occurrence of any event that causes the Member to cease to be
a member of the Company (other than (i) upon an assignment by the Member of all
of its limited liability company interest in the Company and the admission of
the transferee pursuant to Sections 8.01 and 8.03, or (ii) the resignation of
the Member and the admission of an additional member of the Company pursuant to
Sections 8.02 and 8.03), each person acting as an Independent Director pursuant
to Section 4.11 shall, without any action of any Person and simultaneously with
the Member ceasing to be a member of the Company, automatically be admitted to
the Company as a Special Member and shall continue the Company without
dissolution. No Special Member may resign from the Company or transfer its
rights as Special Member unless (i) a successor Special Member has been admitted
to the Company as Special Member by executing a counterpart to this Agreement,
and (ii) such successor has also accepted its appointment as Independent
Director pursuant to Section 4.11; provided, however, the Special Members shall
automatically cease to be members of the Company upon the admission to the
Company of a substitute Member. Each Special Member shall be a member of the
Company that has no interest in the profits, losses and capital of the Company
and has no right to receive any distributions of Company assets. Pursuant to
Section 18-301 of the Act, a Special Member shall not be required to make any
capital contributions to the Company and shall not receive a limited liability
company interest in the Company. A Special Member, in its capacity as Special
Member, may not bind the Company. Except as required by any mandatory provision
of the Act, each Special Member, in its capacity as Special Member, shall have
no right to vote on, approve or otherwise consent to any action by, or matter
relating to, the Company, including the merger, consolidation or conversion of
the Company. In order to implement the admission to the Company of each Special
Member, each person acting as an Independent Director pursuant to Section 4.11
shall execute a counterpart to this Agreement. Prior to its admission to the
Company as Special Member, each person acting as an Independent Director
pursuant to Section 4.11 shall not be a member of the Company.
SECTION 2.05. EXECUTION, DELIVERY AND FILING OF CERTIFICATES. Xxxxx X.
Xxxxxx is hereby designated as an "authorized person" within the meaning of the
Act, and has executed, delivered and filed the Certificate of Formation with the
Delaware Secretary of State. Upon the execution
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of this Agreement, his powers as an "authorized person" ceased, and the Member
thereupon became the designated "authorized person" and shall continue as the
designated "authorized person" within the meaning of the Act. The Member or an
Officer shall execute, deliver and file any other certificates (and any
amendments and/or restatements thereof) necessary for the Company to qualify to
do business in any jurisdiction in which the Company may wish to conduct
business.
The existence of the Company as a separate legal entity shall continue
until cancellation of the Certificate of Formation as provided in the Act.
SECTION 2.06. EXECUTION OF INSTRUMENTS. All agreements, repurchase
agreements, reverse repurchase agreements, swap or forward agreements,
indentures, mortgages, deeds, conveyances, transfers, certificates,
declarations, receipts, discharges, releases, satisfactions, settlements,
petitions, schedules, accounts, affidavits, bonds, undertakings, proxies, and
other instruments or documents may be signed, executed, acknowledged, verified,
delivered or accepted on behalf of the Company by the President, any Vice
President, any Assistant Vice President, or the Secretary or any Assistant
Secretary; provided, however, that where required, any such instrument shall be
attested by one of such Officers other than the Officer executing such
instrument. Any such instruments may also be executed, acknowledged, verified,
delivered, or accepted on behalf of the Company in such other manner and by such
other Officers as the Board of Directors may from time to time direct. The
provisions of this Section are supplementary to any other provisions of this
Agreement. Except as may otherwise be required by law, any such agreements,
repurchase agreements, reverse repurchase agreements, swap or forward
agreements, indentures, mortgages, deeds, conveyances, transfers, certificates,
declarations, receipts, discharges, releases, satisfactions, settlements,
petitions, schedules, accounts, affidavits, bonds, undertakings, proxies, and
other instruments or documents executed and delivered as aforesaid shall be
binding on the Company and shall be deemed to be authorized by the Board of
Directors.
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ARTICLE THREE
PURPOSES
SECTION 3.01. PURPOSES. The purpose to be conducted or promoted by the
Company is to engage in the following activities:
(a) to acquire retail installment sales contracts, purchase money
notes or other notes between motor vehicle dealers or lenders and
purchasers of new and used automobiles, minivans, sport utility vehicles,
light-duty trucks, motorcycles or commercial vehicles (the "Receivables");
(b) to act as settlor or grantor of one or more trusts or special
purpose entities (each, a "Securitization Trust") formed pursuant to a
trust agreement or other agreement for the purpose of issuing one or more
series or classes of certificates, bonds, notes or other evidences of
interest or indebtedness (collectively, "Securities") secured by or
representing beneficial interests in the Receivables;
(c) to acquire, lease, own, hold, sell, transfer, convey, dispose of,
pledge, assign, borrow money against, finance, refinance or otherwise deal
with, publicly or privately and whether with unrelated third parties or
with affiliated entities;
(d) to acquire Securities or other property of a Securitization Trust
(including remainder interests in collateral or reserve accounts) or any
interest in any of the foregoing;
(e) to issue, authorize, sell and deliver Securities or other
instruments secured or collateralized by the Securities;
(f) to own equity interests in other limited liability companies or
partnerships whose purposes are substantially restricted to those described
in clauses (a) through (e) above;
(g) to borrow money other than pursuant to clause (c) above, but only
to the extent that such borrowing is permitted by the terms of the
transactions contemplated by clauses (a) through (f) above; and
(h) to (i) negotiate, authorize, execute, deliver or assume or perform
the obligations under any agreement, instrument or document relating to the
activities set forth in clauses (a) through (g) above, including the Basic
Documents and (ii) engage in any lawful act or activity and to exercise any
powers permitted to limited liability companies organized under the laws of
the State of Delaware that are incidental to and necessary, convenient or
advisable for the accomplishment of the above-mentioned purposes, including
the entering into of interest rate or basis swap, cap, floor or collar
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agreements, currency exchange agreements or similar hedging transactions
and referral, management, servicing and administration agreements.
SECTION 3.02. POWERS. Subject to Section 4.10, the Company, and the Board
of Directors and the Officers on behalf of the Company, (i) shall have and
exercise all powers necessary, convenient or incidental to accomplish its
purposes as set forth in Section 3.01 and (ii) shall have and exercise all of
the powers and rights conferred upon limited liability companies formed pursuant
to the Act.
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ARTICLE FOUR
MANAGEMENT
SECTION 4.01. BOARD OF DIRECTORS. Subject to Section 4.10, the business and
affairs of the Company shall be managed by or under the direction of a Board of
one or more Directors designated by the Member. Subject to Section 4.11, the
Member may determine at any time in its sole and absolute discretion the number
of Directors to constitute the Board. The authorized number of Directors may be
increased or decreased by the Member at any time in its sole and absolute
discretion, upon notice to all Directors, and subject in all cases to Section
4.11. The initial number of Directors shall be five, two of whom shall be
Independent Directors pursuant to Section 4.11. Each Director elected,
designated or appointed by the Member shall hold office until a successor is
elected and qualified or until such Director's earlier death, resignation,
expulsion or removal. Each Director shall execute and deliver the Management
Agreement. Directors need not be a Member. The initial Directors designated by
the Member are listed on Exhibit C hereto.
SECTION 4.02. POWERS. Subject to Section 4.10, the Board of Directors shall
have the power to do any and all acts necessary, convenient or incidental to or
for the furtherance of the purposes described herein, including all powers,
statutory or otherwise. Subject to Section 3.01, the Board of Directors has the
authority to bind the Company.
SECTION 4.03. MEETING OF THE BOARD OF DIRECTORS. The Board of Directors of
the Company may hold meetings, both regular and special, within or outside the
State of Delaware. Regular meetings of the Board may be held without notice at
such time and at such place as shall from time to time be determined by the
Board. Special meetings of the Board may be called by the President on not less
than one day's notice to each Director by telephone, facsimile, mail, telegram
or any other means of communication, and special meetings shall be called by the
President or Secretary in like manner and with like notice upon the written
request of any one or more of the Directors.
SECTION 4.04. QUORUM; ACTS OF THE BOARD. At all meetings of the Board, a
majority of the Directors shall constitute a quorum for the transaction of
business and, except as otherwise provided in any other provision of this
Agreement, the act of a majority of the Directors present at any meeting at
which there is a quorum shall be the act of the Board. If a quorum shall not be
present at any meeting of the Board, the Directors present at such meeting may
adjourn the meeting from time to time, without notice other than announcement at
the meeting, until a quorum shall be present. Any action required or permitted
to be taken at any meeting of the Board or of any committee thereof may be taken
without a meeting if all members of the Board or committee, as the case may be,
consent thereto in writing, and the writing or writings are filed with the
minutes of proceedings of the Board or committee, as the case may be.
SECTION 4.05. ELECTRONIC COMMUNICATIONS. Members of the Board, or any
committee designated by the Board, may participate in meetings of the Board, or
any committee, by means of telephone conference or similar communications
equipment that allows all Persons participating in the meeting to hear each
other, and such participation in a meeting shall constitute presence in Person
at the meeting. If all the participants are participating by telephone
conference or similar communications equipment, the meeting shall be deemed to
be held at the principal place of business of the Company.
SECTION 4.06. COMMITTEES OF DIRECTORS.
(a) The Board may, by resolution passed by a majority of the whole Board,
designate one or more committees, each committee to consist of one or more of
the Directors of the Company. The Board may designate one or more Directors as
alternate members of any committee, who may replace any absent or disqualified
member at any meeting of the committee.
(b) In the absence or disqualification of a member of a committee, the
member or members thereof present at any meeting and not disqualified from
voting, whether or not such members constitute a quorum, may unanimously appoint
another member of the Board to act at the meeting in the place of any such
absent or disqualified member.
(c) Any such committee, to the extent provided in the resolution of the
Board, and subject to, in all cases, Sections 4.10 and 4.11, shall have and may
exercise all the powers and authority of the Board in the management of the
business and affairs of the Company. Such committee or committees shall have
such name or names as may be determined from time to time by resolution adopted
by the Board. Each committee shall keep regular minutes of its meetings and
report the same to the Board when required.
SECTION 4.07. COMPENSATION OF DIRECTORS; EXPENSES. The Board shall have the
authority to fix the compensation of Directors. The Directors may be paid their
expenses, if any, of attendance at meetings of the Board, which may be a fixed
sum for attendance at each meeting of the Board or a stated salary as Director.
No such payment shall preclude any Director from serving the Company in any
other capacity and receiving compensation therefor. Members of special or
standing committees may be allowed like compensation for attending committee
meetings.
SECTION 4.08. REMOVAL OF DIRECTORS. Unless otherwise restricted by law, any
Director or the entire Board of Directors may be removed or expelled, with or
without cause, at any time by the Member, and, subject to Section 4.11, any
vacancy caused by any such removal or expulsion may be filled by action of the
Member.
SECTION 4.09. DIRECTORS AS AGENTS. To the extent of their powers set forth
in this Agreement and subject to Section 4.10, the Directors are agents of the
Company for the purpose of the Company's business, and the actions of the
Directors taken in accordance with such powers set forth in this Agreement shall
bind the Company. Notwithstanding the last sentence of Section 18-402 of the
Act, except as provided in this Agreement or in a resolution of the Directors, a
Director may not bind the Company.
SECTION 4.10. LIMITATIONS ON THE COMPANY'S ACTIVITIES.
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(a) This Section is being adopted in order to comply with certain
provisions required in order to qualify the Company as a "special purpose"
entity.
(b) The Member shall not, so long as any Obligation is outstanding, amend,
alter, change or repeal the definition of "Independent Director", Article One or
Sections 2.04(c), 3.01, 3.02, 4.01, 4.02, 4.03, 4.05, 4.06, 4.07, 4.08, 4.09,
4.10, 4.11, 5.04, 7.01, 8.01, 8.02, 8.03, 8.04, 8.05, 9.01 or 9.02 of this
Agreement without the unanimous written consent of the Board (including all
Independent Directors). Subject to this Section, the Member reserves the right
to amend, alter, change or repeal any provisions contained in this Agreement in
accordance with Section 9.01.
(c) Notwithstanding any other provision of this Agreement and any provision
of law that otherwise so empowers the Company, the Member, the Board, any
Officer or any other Person, neither the Member nor the Board nor any Officer
nor any other Person shall be authorized or empowered, nor shall they permit the
Company, without the prior unanimous written consent of the Member and the Board
(including all Independent Directors), to take any Material Action; provided,
however, that the Board may not vote on, or authorize the taking of, any
Material Action, unless there are at least two Independent Directors then
serving in such capacity.
(d) The Board and the Member shall cause the Company to do or cause to be
done all things necessary to preserve and keep in full force and effect its
existence, rights (charter and statutory) and franchises; provided, however,
that the Company shall not be required to preserve any such right or franchise
if: (i) the Board shall determine that the preservation thereof is no longer
desirable for the conduct of its business and that the loss thereof is not
disadvantageous in any material respect to the Company and (ii) the Rating
Agency Condition is satisfied. The Board also shall cause the Company to:
(1) maintain its own separate books and records and bank accounts;
(2) at all times hold itself out to the public and all other Persons
as a legal entity separate from the Member and any other Person;
(3) have a Board of Directors separate from that of the Member and any
other Person;
(4) file its own tax returns, if any, as may be required under
applicable law, to the extent (1) not part of a consolidated group filing a
consolidated return or returns or (2) not treated as a division for tax
purposes of another taxpayer, and pay any taxes so required to be paid
under applicable law;
(5) except as contemplated by the Basic Documents, not commingle its
assets with assets of any other Person;
(6) conduct its business in its own name and strictly comply with all
organizational formalities to maintain its separate existence;
(7) maintain separate financial statements;
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(8) pay its own liabilities;
(9) maintain an arm's length relationship with its Affiliates and the
Member;
(10) pay the salaries of its own employees, if any;
(11) not hold out its credit or assets as being available to satisfy
the obligations of others;
(12) allocate fairly and reasonably any overhead for shared office
space;
(13) use separate stationery;
(14) except as contemplated by the Basic Documents, not pledge its
assets for the benefit of any other Person;
(15) correct any known misunderstanding regarding its separate
identity;
(16) maintain adequate capital in light of its contemplated business
purpose, transactions and liabilities;
(17) cause its Board of Directors to meet at least annually or act
pursuant to written consent and keep minutes of such meetings and actions
and observe all other Delaware limited liability company formalities;
(18) not acquire any securities of the Member; and
(19) cause the Directors, Officers, agents and other representatives
of the Company to act at all times with respect to the Company consistently
and in furtherance of the foregoing and in the best interests of the
Company;
failure of the Company, or the Member or Board on behalf of the Company, to
comply with any of the foregoing covenants or any other covenants contained in
this Agreement shall not affect the status of the Company as a separate legal
entity or the limited liability of the Member or the Directors.
(e) So long as any Obligation is outstanding, the Board shall not
cause or permit the Company to:
(1) except as contemplated by the Basic Documents, guarantee any
obligation of any Person, including any Affiliate;
(2) engage, directly or indirectly, in any business other than
the actions required or permitted to be performed under Section 3, the
Basic Documents or this Section;
(3) incur, create or assume any indebtedness other than as
expressly permitted under the Basic Documents;
11
(4) make or permit to remain outstanding any loan or advance to,
or own or acquire any stock or securities of, any Person, except that
the Company may invest in those investments permitted under the Basic
Documents and may make any advance required or expressly permitted to
be made pursuant to any provisions of the Basic Documents and permit
the same to remain outstanding in accordance with such provisions;
(5) to the fullest extent permitted by law, engage in any
dissolution, liquidation, consolidation, merger, asset sale or
transfer of ownership interests other than such activities as are
expressly permitted pursuant to any provision of the Basic Documents;
or
(6) form, acquire or hold any subsidiary (whether corporate,
partnership, limited liability company or other).
SECTION 4.11. INDEPENDENT DIRECTOR. As long as any Obligation is
outstanding, the Member shall cause the Company at all times to have at least
two Independent Directors who will be appointed by the Member. To the fullest
extent permitted by law, including Section 18-1101(c) of the Act, the
Independent Directors shall consider only the interests of the Company,
including its respective creditors, in acting or otherwise voting on the matters
referred to in Section 4.10. No resignation or removal of an Independent
Director, and no appointment of a successor Independent Director, shall be
effective until such successor (i) shall have accepted his or her appointment as
an Independent Director by a written instrument, which may be a counterpart
signature page to the Management Agreement, and (ii) shall have executed a
counterpart to this Agreement as required by Section 2.04(c). In the event of a
vacancy in the position of Independent Director, the Member shall, as soon as
practicable, appoint a successor Independent Director. All right, power and
authority of the Independent Directors shall be limited to the extent necessary
to exercise those rights and perform those duties specifically set forth in this
Agreement. Except as provided in the second sentence of this Section, in
exercising their rights and performing their duties under this Agreement, any
Independent Director shall have a fiduciary duty of loyalty and care similar to
that of a director of a business corporation organized under the General
Corporation Law of the State of Delaware. No Independent Director shall at any
time serve as trustee in bankruptcy for any Affiliate of the Company.
SECTION 4.12. OFFICERS.
(a) OFFICERS OF THE COMPANY. The Officers of the Company shall consist of a
President, a Secretary, a Treasurer and such Vice Presidents, Assistant Vice
President, Assistant Secretaries, Assistant Treasurers, and other officers as
the Board of Directors may from time to time elect. Any two or more offices may
be held by the same person, but no Officer may act in more than one capacity
where action of two or more Officers is required.
(b) ELECTION AND TERM. The Officers of the Company shall be elected by the
Board of Directors or in such other manner as may be approved by the Board of
Directors, and each Officer shall hold office until his death, resignation,
retirement, removal, or disqualification or until his successor shall have been
elected and qualified.
12
(c) COMPENSATION OF OFFICERS. The compensation of all Officers of the
Company shall be fixed by the Board of Directors or in such other manner as may
be approved by the Board of Directors and no Officer shall serve the Company in
any other capacity and receive compensation therefor unless such additional
compensation is authorized by the Board of Directors.
(d) REMOVAL. Any Officer or agent elected or appointed by the Board of
Directors may be removed with or without cause or for any reason whatsoever.
(e) BONDS. The Company may require any Officer, agent, or employee of the
Company to give bond to the Company, with sufficient sureties, conditioned on
the faithful performance of the duties of his respective office or position, and
to comply with such other conditions as may from time to time be required by the
Company.
(f) OFFICERS ACTING AS ASSISTANT SECRETARIES. Notwithstanding anything
contained in this Agreement, any Vice President (including any Senior Vice
President or any Assistant Vice President) shall have, by virtue of his office,
and by authority of this Section, the authority, from time to time, to act as an
Assistant Secretary of the Company, and to such extent, said Officers are
appointed to the office of Assistant Secretary.
(g) OFFICERS AS AGENTS. The Officers, to the extent of their powers set
forth in this Agreement or otherwise vested in them by action of the Board not
inconsistent with this Agreement, are agents of the Company for the purpose of
the Company's business and, subject to Section 4.10, the actions of the Officers
taken in accordance with such powers shall bind the Company.
(h) DUTIES OF BOARD AND OFFICERS. Except to the extent otherwise provided
herein, each Director and Officer shall have a fiduciary duty of loyalty and
care similar to that of directors and Officers of business corporations
organized under the General Corporation Law of the State of Delaware.
13
ARTICLE FIVE
CONTRIBUTIONS; PROFITS AND LOSSES; DISTRIBUTIONS
SECTION 5.01. CAPITAL CONTRIBUTIONS. The Member has contributed to the
Company property of an agreed value as listed on Exhibit A hereto. In accordance
with Section 2.04(c), the Special Members shall not be required to make any
capital contributions to the Company.
SECTION 5.02. ADDITIONAL CONTRIBUTIONS. The Member is not required to make
any additional capital contribution to the Company. However, the Member may make
additional capital contributions to the Company at any time. To the extent that
the Member makes an additional capital contribution to the Company, the Member
shall revise Exhibit A. The provisions of this Agreement, including this
Section, are intended to benefit the Member and the Special Members and, to the
fullest extent permitted by law, shall not be construed as conferring any
benefit upon any creditor of the Company (and no such creditor of the Company
shall be a third-party beneficiary of this Agreement) and the Member and the
Special Members shall not have any duty or obligation to any creditor of the
Company to make any contribution to the Company or to issue any call for capital
pursuant to this Agreement.
SECTION 5.03. ALLOCATION OF PROFITS AND LOSSES. The Company's profits and
losses shall be allocated to the Member.
SECTION 5.04. DISTRIBUTIONS. Distributions shall be made to the Member at
the times and in the aggregate amounts determined by the Board. Notwithstanding
any provision to the contrary contained in this Agreement, the Company shall not
be required to make a distribution to the Member on account of its interest in
the Company if such distribution would violate Section 18-607 of the Act or any
other applicable law or any Basic Document.
14
ARTICLE SIX
BOOKS AND RECORDS; REPORTS
SECTION 6.01. BOOKS AND RECORDS. The Board shall keep or cause to be kept
complete and accurate books of account and records with respect to the Company's
business. The books of the Company shall at all times be maintained by the
Board. The Member and its duly authorized representatives shall have the right
to examine the Company books, records and documents during normal business
hours. The Company, and the Board on behalf of the Company, shall not have the
right to keep confidential from the Member any information that the Board would
otherwise be permitted to keep confidential from the Member pursuant to Section
18-305(c) of the Act. The Company's books of account shall be kept using the
method of accounting determined by the Member. The Company's independent
auditor, if any, shall be an independent public accounting firm selected by the
Member.
SECTION 6.02. REPORTS.
(a) The Board shall use diligent efforts to cause to be prepared and
delivered to the Member, within 90 days after the end of each fiscal year, an
audited or unaudited report setting forth as of the end of such fiscal year:
(1) a balance sheet of the Company;
(2) an income statement of the Company for such fiscal year; and
(3) a statement of the Member's capital account.
(b) The Board shall, after the end of each fiscal year, use reasonable
efforts to cause the Company's accountants, if any, to prepare and transmit to
the Member as promptly as possible any such tax information as may be reasonably
necessary to enable the Member to prepare its federal, state and local income
tax returns relating to such fiscal year.
15
ARTICLE SEVEN
EXCULPATION AND INDEMNIFICATION; LIMITED LIABILITY
SECTION 7.01. EXCULPATION AND INDEMNIFICATION.
(a) Neither the Member nor the Special Members nor any Officer, Director,
employee or agent of the Company nor any employee, representative, agent or
Affiliate of the Member or the Special Members (collectively, the "Covered
Persons") shall be liable to the Company or any other Person who has an interest
in or claim against the Company for any loss, damage or claim incurred by reason
of any act or omission performed or omitted by such Covered Person in good faith
on behalf of the Company and in a manner reasonably believed to be within the
scope of the authority conferred on such Covered Person by this Agreement,
except that a Covered Person shall be liable for any such loss, damage or claim
incurred by reason of such Covered Person's gross negligence or willful
misconduct.
(b) To the fullest extent permitted by applicable law, a Covered Person
shall be entitled to indemnification from the Company for any loss, damage or
claim incurred by such Covered Person by reason of any act or omission performed
or omitted by such Covered Person in good faith on behalf of the Company and in
a manner reasonably believed to be within the scope of the authority conferred
on such Covered Person by this Agreement, except that no Covered Person shall be
entitled to be indemnified in respect of any loss, damage or claim incurred by
such Covered Person by reason of such Covered Person's gross negligence or
willful misconduct with respect to such acts or omissions; provided, however,
that any indemnity under this Section by the Company shall be provided out of
and to the extent of Company assets only, and the Member and the Special Members
shall not have personal liability on account thereof; and provided further, that
so long as any Obligation is outstanding, no indemnity payment from funds of the
Company (as distinct from funds from other sources, such as insurance) of any
indemnity under this Section shall be payable from amounts allocable to any
other Person pursuant to the Basic Documents.
(c) To the fullest extent permitted by applicable law, expenses (including
legal fees) incurred by a Covered Person defending any claim, demand, action,
suit or proceeding shall, from time to time, be advanced by the Company prior to
the final disposition of such claim, demand, action, suit or proceeding upon
receipt by the Company of an undertaking by or on behalf of the Covered Person
to repay such amount if it shall be determined that the Covered Person is not
entitled to be indemnified as authorized in this Section.
(d) A Covered Person shall be fully protected in relying in good faith upon
the records of the Company and upon such information, opinions, reports or
statements presented to the Company by any Person as to matters the Covered
Person reasonably believes are within such other Person's professional or expert
competence and who has been selected with reasonable care by or on behalf of the
Company, including information, opinions, reports or statements as to the value
and amount of the assets, liabilities or any other facts pertinent to the
existence and amount of assets from which distributions to the Member might
properly be paid.
16
(e) To the extent that, at law or in equity, a Covered Person has duties
(including fiduciary duties) and liabilities relating thereto to the Company or
to any other Covered Person, a Covered Person acting under this Agreement shall
not be liable to the Company or to any other Covered Person for its good faith
reliance on the provisions of this Agreement or any approval or authorization
granted by the Company or any other Covered Person. The provisions of this
Agreement, to the extent that they restrict the duties and liabilities of a
Covered Person otherwise existing at law or in equity, are agreed by the Member
and the Special Members to replace such other duties and liabilities of such
Covered Person.
(f) The provisions of this Section shall survive any termination of this
Agreement.
SECTION 7.02. LIMITED LIABILITY. Except as otherwise expressly provided by
the Act, the debts, obligations and liabilities of the Company, whether arising
in contract, tort or otherwise, shall be the debts, obligations and liabilities
solely of the Company, and neither the Member, the Special Members nor any
Director shall be obligated personally for any such debt, obligation or
liability of the Company solely by reason of being a Member, Special Member or
Director of the Company.
SECTION 7.03. OTHER BUSINESS. The Member, the Special Members and any of
their respective Affiliates may engage in or possess an interest in other
business ventures (unconnected with the Company) of every kind and description,
independently or with others. The Company shall not have any rights in or to
such independent ventures or the income or profits therefrom by virtue of this
Agreement.
17
ARTICLE EIGHT
ASSIGNMENT; RESIGNATION; DISSOLUTION
SECTION 8.01. ASSIGNMENTS. Subject to Section 8.03, the Member may assign
in whole or in part its limited liability company interest in the Company. If
the Member transfers all of its limited liability company interest in the
Company pursuant to this Section, the transferee shall be admitted to the
Company as a member of the Company upon its execution of an instrument
signifying its agreement to be bound by the terms and conditions of this
Agreement, which instrument may be a counterpart signature page to this
Agreement. Such admission shall be deemed effective immediately prior to the
transfer and, immediately following such admission, the transferor Member shall
cease to be a member of the Company. Notwithstanding anything in this Agreement
to the contrary, any successor to the Member by merger or consolidation in
compliance with the Basic Documents shall, without further act, be the Member
hereunder, and such merger or consolidation shall not constitute an assignment
for purposes of this Agreement and the Company shall continue without
dissolution.
SECTION 8.02. RESIGNATION. So long as any Obligation is outstanding, the
Member may not resign, except as permitted under the Basic Documents and if the
Rating Agency Condition is satisfied. If the Member is permitted to resign
pursuant to this Section, an additional member of the Company shall be admitted
to the Company, subject to Section 8.03, upon its execution of an instrument
signifying its agreement to be bound by the terms and conditions of this
Agreement, which instrument may be a counterpart signature page to this
Agreement. Such admission shall be deemed effective immediately prior to the
resignation and, immediately following such admission, the resigning Member
shall cease to be a member of the Company.
SECTION 8.03. ADMISSION OF ADDITIONAL MEMBERS. One or more additional
members of the Company may be admitted to the Company with the written consent
of the Member; provided, however, that notwithstanding the foregoing, so long as
any Obligation remains outstanding, no additional Member may be admitted to the
Company unless the Rating Agency Condition is satisfied.
SECTION 8.04. DISSOLUTION.
(a) Subject to Section 4.10, the Company shall be dissolved, and its
affairs shall be wound up upon the first to occur of the following: (i) the
termination of the legal existence of the last remaining member of the Company
or the occurrence of any other event which terminates the continued membership
of the last remaining member of the Company in the Company unless the business
of the Company is continued in a manner permitted by this Agreement or the Act
or (ii) the entry of a decree of judicial dissolution under Section 18-802 of
the Act. Upon the occurrence of any event that causes the last remaining member
of the Company to cease to be a member of the Company, to the fullest extent
permitted by law, the personal representative of such member is hereby
authorized to, and shall, within 90 days after the occurrence of the event that
terminated the continued membership of such member in the Company, agree in
writing (i) to continue the Company and (ii) to the admission of the personal
18
representative or its nominee or designee, as the case may be, as a substitute
member of the Company, effective as of the occurrence of the event that
terminated the continued membership of the last remaining member of the Company
in the Company.
(b) Notwithstanding any other provision of this Agreement, (i) the
Bankruptcy of the Member or a Special Member shall not cause the Member or
Special Member, respectively, to cease to be a member of the Company and upon
the occurrence of such an event, the business of the Company shall continue
without dissolution and (ii) each of the Member and the Special Members waives
any right it might have to agree in writing to dissolve the Company upon the
Bankruptcy of the Member or a Special Member, or the occurrence of an event that
causes the Member or a Special Member to cease to be a member of the Company.
(c) In the event of dissolution, the Company shall conduct only such
activities as are necessary to wind up its affairs (including the sale of the
assets of the Company in an orderly manner), and the assets of the Company shall
be applied in the manner, and in the order of priority, set forth in Section
18-804 of the Act.
(d) The Company shall terminate when (i) all of the assets of the Company,
after payment of or due provision for all debts, liabilities and obligations of
the Company shall have been distributed to the Member in the manner provided for
in this Agreement and (ii) the Certificate of Formation shall have been canceled
in the manner required by the Act.
SECTION 8.05. WAIVER OF PARTITION; NATURE OF INTEREST. Except as otherwise
expressly provided in this Agreement, to the fullest extent permitted by law,
each of the Member and the Special Members hereby irrevocably waives any right
or power that such Person might have to cause the Company or any of its assets
to be partitioned, to cause the appointment of a receiver for all or any portion
of the assets of the Company, to compel any sale of all or any portion of the
assets of the Company pursuant to any applicable law or to file a complaint or
to institute any proceeding at law or in equity to cause the dissolution,
liquidation, winding up or termination of the Company. The Member shall not have
any interest in any specific assets of the Company, and the Member shall not
have the status of a creditor with respect to any distribution pursuant to
Section 5.04. The interest of the Member in the Company is personal property.
19
ARTICLE NINE
MISCELLANEOUS
SECTION 9.01. AMENDMENTS. Subject to Section 4.10, this Agreement may be
modified, altered, supplemented or amended pursuant to a written agreement
executed and delivered by the Member. Notwithstanding anything to the contrary
in this Agreement, so long as any Obligation is outstanding, this Agreement may
not be modified, altered, supplemented or amended unless the Rating Agency
Condition is satisfied except: (i) to cure any ambiguity or (ii) to convert or
supplement any provision in a manner consistent with the intent of this
Agreement and the other Basic Documents.
SECTION 9.02. BENEFITS OF AGREEMENT; NO THIRD-PARTY RIGHTS. None of the
provisions of this Agreement shall be for the benefit of or enforceable by any
creditor of the Company or by any creditor of the Member or a Special Member.
Nothing in this Agreement shall be deemed to create any right in any Person
(other than Covered Persons) not a party hereto, and this Agreement shall not be
construed in any respect to be a contract in whole or in part for the benefit of
any third Person (except as provided in Section 9.05).
SECTION 9.03. SEVERABILITY OF PROVISIONS. Each provision of this Agreement
shall be considered severable and if for any reason any provision or provisions
herein are determined to be invalid, unenforceable or illegal under any existing
or future law, such invalidity, unenforceability or illegality shall not impair
the operation of or affect those portions of this Agreement which are valid,
enforceable and legal.
SECTION 9.04. ENTIRE AGREEMENT. This Agreement constitutes the entire
agreement of the parties with respect to the subject matter hereof.
SECTION 9.05. BINDING AGREEMENT. Notwithstanding any other provision of
this Agreement, the Member agrees that this Agreement, including, without
limitation, Sections 3.01, 3.02, 4.01, 4.02, 4.03, 4.04, 4.05, 4.06, 4.07, 4.08,
4.09, 4.10, 4.11, 7.01, 8.01, 8.02, 8.03, 8.04, 9.01, 9.02 and 9.05, constitutes
a legal, valid and binding agreement of the Member, and is enforceable against
the Member by the Independent Directors, in accordance with its terms. In
addition, the Independent Directors shall be intended beneficiaries of this
Agreement.
SECTION 9.06. GOVERNING LAW. This Agreement shall be governed by and
construed under the laws of the State of Delaware (without regard to conflict of
laws principles), all rights and remedies being governed by said laws.
SECTION 9.07. COUNTERPARTS. This Agreement may be executed in any number of
counterparts, each of which shall be deemed an original of this Agreement and
all of which together shall constitute one and the same instrument.
SECTION 9.08. NOTICES. Any notices required to be delivered hereunder shall
be in writing and personally delivered, mailed or sent by telecopy, electronic
mail or other similar form of rapid
20
transmission, and shall be deemed to have been duly given upon receipt (a) in
the case of the Company, to the Company at its address in Section 2.01, (b) in
the case of the Member, to the Member at its address as listed on Exhibit A
hereto and (c) in the case of either of the foregoing, at such other address as
may be designated by written notice to the other party.
SECTION 9.09. EFFECTIVENESS. Pursuant to Section 18-201 (d) of the Act,
this Agreement shall be effective as of April 15, 2000.
21
IN WITNESS WHEREOF, the undersigned, intending to be legally bound hereby,
has duly executed this Agreement as of the 15th day of April, 2000.
MEMBER:
FIRST UNION PASS CO., INC.
By: /s/ Xxxxxxx X. Xxxx
-------------------------------------
Xxxxxxx X. Xxxx
Managing Director
SPECIAL MEMBERS:
By: /s/ Xxxxx Xxxxx
-------------------------------------
Xxxxx Xxxxx
By: /s/ Xxxxxx Xxxxx
-------------------------------------
Xxxxxx Xxxxx
22
EXHIBIT A
NAME OF MEMBER
Agreed Value of
Name Mailing Address Capital Contribution Membership Interest
----------------------------- ------------------------------ ---------------------- ---------------------
First Union Pass Co., Inc. One First Xxxxx Xxxxxx, XX-0, $1,000.00 100%
Xxxxxxxxx, Xxxxx Xxxxxxxx
00000
A-1
EXHIBIT B
MANAGEMENT AGREEMENT
April 15, 2000
Pooled Auto Securities Shelf LLC
Xxx Xxxxx Xxxxx Xxxxxx, XX-0
Xxxxxxxxx, Xxxxx Xxxxxxxx 00000
Re: Pooled Auto Securities Shelf LLC
Ladies and Gentlemen:
For good and valuable consideration, each of the undersigned (each, a
"Person"), who have been designated as directors of Pooled Auto Securities Shelf
LLC, a Delaware limited liability company (the "Company"), in accordance with
the Limited Liability Company Agreement of the Company, dated as of April 15,
2000, as it may be amended or restated from time to time (the "LLC Agreement"),
hereby agree as follows:
1. Each of the undersigned accepts such Person's rights and authority as a
Director under the LLC Agreement and agrees to perform and discharge such
Person's duties and obligations as a Director under the LLC Agreement, and
further agrees that such rights, authorities, duties and obligations under the
LLC Agreement shall continue until such Person's successor as a Director is
designated or until such Person's resignation or removal as a Director in
accordance with the LLC Agreement. Each of the undersigned agrees and
acknowledges that it has been designated as a "manager" of the Company within
the meaning of the Delaware Limited Liability Company Act.
2. So long as any Obligation is outstanding, each of the undersigned
agrees, solely in its capacity as a creditor of the Company on account of any
indemnification or other payment owing to the undersigned by the Company, not to
acquiesce, petition or otherwise invoke or cause the Company to invoke the
process of any court or governmental authority for the purpose of commencing or
sustaining a case against the Company under any federal or state bankruptcy,
insolvency or similar law or appointing a receiver, liquidator, assignee,
trustee, custodian, sequestrator or other similar official of the Company or any
substantial part of the property of the Company, or ordering the winding up or
liquidation of the affairs of the Company.
3. THIS MANAGEMENT AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, AND ALL RIGHTS AND REMEDIES
SHALL BE GOVERNED BY SUCH LAWS WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF
LAWS.
Capitalized terms used herein that are not otherwise defined herein shall
have the meanings ascribed thereto in the LLC Agreement.
B-1
This Management Agreement may be executed in any number of counterparts,
each of which shall be deemed an original of this Management Agreement and all
of which together shall constitute one and the same instrument.
IN WITNESS WHEREOF, the undersigned have executed this Management Agreement
as of the day and year first above written.
_________________________________
Xxxxxxx X. Xxxx
_________________________________
Xxxxxx X. Xxxxxxx
_________________________________
Xxxxx X. Xxxxxxx
_________________________________
Xxxxx Xxxxx
_________________________________
Xxxxxx Xxxxx
B-2
EXHIBIT C
DIRECTORS
1. Xxxxxxx X. Xxxx
2. Xxxxxx X. Xxxxxxx
3. Xxxxx X. Xxxxxxx
4. Xxxxx Xxxxx
5. Xxxxxx Xxxxx
C-1
