Exhibit 3.2
AMENDED AND RESTATED
OPERATING AGREEMENT
OF
SIOUXLAND ETHANOL, LLC
DATED FEBRUARY 24, 2005
SIOUXLAND ETHANOL, LLC
AMENDED AND RESTATED OPERATING AGREEMENT
TABLE OF CONTENTS
Page
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SECTION 1: THE COMPANY .................................................. 1
1.1 Formation .................................................... 1
1.2 Name ......................................................... 1
1.3 Purpose; Powers .............................................. 1
1.4 Principal Place of Business .................................. 2
1.5 Term ......................................................... 2
1.6 Title to Property ............................................ 2
1.7 Payment of Individual Obligations ............................ 2
1.8 Independent Activities; Transactions With Affiliates ......... 2
1.9 Definitions .................................................. 3
SECTION 2. CAPITAL CONTRIBUTIONS; CAPITAL ACCOUNTS ...................... 9
2.1 Original Capital Contributions ............................... 9
2.2 Additional Capital Contributions; Additional Units ........... 9
2.3 Capital Accounts ............................................. 9
SECTION 3. ALLOCATIONS .................................................. 10
3.1 Profits ...................................................... 10
3.2 Losses ....................................................... 10
3.3 Special Allocations .......................................... 10
3.4 Curative Allocations ......................................... 12
3.5 Loss Limitation .............................................. 12
3.6 Other Allocation Rules ....................................... 12
3.7 Tax Allocations: Code Section 704(c) ......................... 13
3.8 Tax Credit Allocations ....................................... 13
SECTION 4. DISTRIBUTIONS ................................................ 13
4.1 Net Cash Flow ................................................ 13
4.2 Amounts Withheld ............................................. 14
4.3 Limitations on Distributions ................................. 14
SECTION 5. MANAGEMENT ................................................... 14
5.1 Directors .................................................... 14
5.2 Number of Total Directors .................................... 14
5.3 Election of Directors ........................................ 14
5.4 Committees ................................................... 16
5.5 Authority of Directors ....................................... 17
5.6 Director as Agent ............................................ 18
5.7 Restriction on Authority of Directors ........................ 18
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5.8 Director Meetings and Notice ................................. 19
5.9 Action Without a Meeting ..................................... 20
5.10 Quorum; Manner of Acting ..................................... 20
5.11 Voting; Potential Financial Interest ......................... 20
5.12 Duties and Obligations of Directors .......................... 20
5.13 Chairman and Vice Chairman ................................... 20
5.14 President and Chief Executive Officer ........................ 21
5.15 Chief Financial Officer ...................................... 21
5.16 Secretary; Assistant Secretary ............................... 21
5.17 Vice President ............................................... 21
5.18 Delegation ................................................... 21
5.19 Execution of Instruments ..................................... 22
5.20 Limitation of Liability; Indemnification of Directors ........ 22
5.21 Compensation; Expenses of Directors .......................... 22
5.22 Loans ........................................................ 23
SECTION 6. ROLE OF MEMBERS .............................................. 23
6.1 One Membership Class ......................................... 23
6.2 Members ...................................................... 23
6.3 Additional Members ........................................... 23
6.4 Rights or Powers ............................................. 23
6.5 Voting Rights of Members ..................................... 23
6.6 Member Meetings .............................................. 24
6.7 Conduct of Meetings .......................................... 24
6.8 Notice of Meetings; Waiver ................................... 24
6.9 Quorum and Proxies ........................................... 24
6.10 Voting; Action by Members .................................... 24
6.11 Record Date .................................................. 24
6.12 Termination of Membership .................................... 24
6.13 Continuation of the Company .................................. 25
6.14 No Obligation to Purchase Membership Interest ................ 25
6.15 Waiver of Dissenters Rights .................................. 25
6.16 Limitation on Ownership ...................................... 25
SECTION 7. ACCOUNTING, BOOKS AND RECORDS ................................ 25
7.1 Accounting, Books and Records ................................ 25
7.2 Delivery to Members and Inspection ........................... 25
7.3 Reports ...................................................... 26
7.4 Tax Matters .................................................. 26
SECTION 8. AMENDMENTS ................................................... 27
8.1 Amendments ................................................... 27
SECTION 9. TRANSFERS .................................................... 27
9.1 Restrictions on Transfers .................................... 27
9.2 Permitted Transfers .......................................... 27
9.3 Conditions Precedent to Transfers ............................ 28
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9.4 Prohibited Transfers ......................................... 29
9.5 No Dissolution or Termination ................................ 29
9.6 Prohibition of Assignment .................................... 30
9.7 Rights of Unadmitted Assignees ............................... 30
9.8 Admission of Substituted Members ............................. 30
9.9 Representations Regarding Transfers .......................... 30
9.8 Distribution and Allocation in Respect of Transferred Units .. 31
9.11 Additional Members ........................................... 32
SECTION 10. DISSOLUTION AND WINDING UP.................................. 32
10.1 Dissolution .................................................. 32
10.2 Winding Up ................................................... 32
10.3 Compliance with Certain Requirements of Regulations;
Deficit Capital Accounts .................................. 33
10.4 Deemed Distribution and Recontribution ....................... 33
10.5 Rights of Unit Holders ....................................... 33
10.6 Allocations During Period of Liquidation ..................... 33
10.7 Character of Liquidating Distributions ....................... 34
10.8 The Liquidator ............................................... 34
10.9 Forms of Liquidating Distributions ........................... 34
SECTION 11. MISCELLANEOUS................................................ 34
11.1 Notices ...................................................... 34
11.2 Binding Effect ............................................... 34
11.3 Construction ................................................. 34
11.4 Headings ..................................................... 35
11.5 Severability ................................................. 35
11.6 Incorporation By Reference ................................... 35
11.7 Variation of Terms ........................................... 35
11.8 Governing Law ................................................ 35
11.9 Waiver of Jury Trial ......................................... 35
11.10 Counterpart Execution ........................................ 35
11.11 Specific Performance ......................................... 35
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AMENDED AND RESTATED
OPERATING AGREEMENT
OF
SIOUXLAND ETHANOL, LLC
THIS AMENDED AND RESTATED OPERATING AGREEMENT (the "Agreement") is entered
into and shall be effective as of the 24th day of February, 2005, by and among
Siouxland Ethanol, LLC, a Nebraska limited liability company (the "Company"),
each of the Persons (as hereinafter defined) who are identified as Members on
the attached Exhibit "A" and who have executed a counterpart of this Agreement
and a Subscription Agreement, and any other Persons as may from time-to-time be
subsequently admitted as a Member of the Company in accordance with the terms of
this Agreement. Capitalized terms not otherwise defined herein shall have the
meaning set forth in Section 1.9.
WHEREAS, the Members of the Company have adopted an Operating Agreement of
the Company dated August 16, 2004, pursuant to the Nebraska Limited Liability
Company Act (the "Act"); and
WHEREAS, the Members desire to amend and restate the Operating Agreement to
revise and to more fully set forth their respective rights, duties, and
responsibilities with respect to the Company and its business and affairs.
NOW, THEREFORE, in consideration of the covenants and agreements contained
herein, and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto agree as follows:
SECTION 1. THE COMPANY
1.1 Formation. The initial Members formed the Company as a Nebraska limited
liability company by filing Articles of Organization with the Nebraska Secretary
of State on August 12, 2004 pursuant to the provisions of the Act. To the extent
that the rights or obligations of any Member are different by reason of any
provision of this Agreement than they would be in the absence of such provision,
this Agreement shall, to the extent permitted by the Act, control.
1.2 Name. The name of the Company shall be "Siouxland Ethanol, LLC" and all
business of the Company shall be conducted in such name.
1.3 Purpose; Powers. The nature of the business and purposes of the Company are:
(i) to own, construct, operate, lease, finance, contract with, and/or invest in
ethanol production and co-product production facilities as permitted under the
applicable laws of the State of Nebraska; (ii) to engage in the processing of
corn, grains and other feedstock into ethanol and any and all related
co-products, and the marketing of all products and co-products from such
processing; and (iii) to engage in any other business and investment activity in
which a Nebraska limited liability
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company may lawfully be engaged, as determined by the Directors. The Company has
the power to do any and all acts necessary, appropriate, proper, advisable,
incidental or convenient to or in furtherance of the purpose of the Company as
set forth in this Section 1.3 and has, without limitation, any and all powers
that may be exercised on behalf of the Company by the Directors pursuant to
Section 5 hereof.
1.4 Principal Place of Business. The Company shall continuously maintain an
office in Nebraska. The principal office of the Company shall be at 000 Xxxx Xxx
Xxxxxx, Xxxxxxx, Xxxxxxxx 00000, or elsewhere in the State of Nebraska as the
Directors may determine. Any documents required by the Act to be kept by the
Company shall be maintained at the Company's principal office.
1.5 Term. The term of the Company commenced on the date the Articles of
Organization (the "Articles") of the Company were filed with the office of the
Nebraska Secretary of State, and shall continue until the winding up and
liquidation of the Company and its business is completed following a Dissolution
Event as provided in Section 10 hereof.
1.6 Title to Property. All Property owned by the Company shall be owned by the
Company as an entity and no Member shall have any ownership interest in such
Property (as hereinafter defined) in his/her/its individual name. Each Member's
interest in the Company shall be personal property for all purposes. At all
times after the Effective Date, the Company shall hold title to all of its
Property in the name of the Company and not in the name of any Member.
1.7 Payment of Individual Obligations. The Company's credit and assets shall be
used solely for the benefit of the Company, and no asset of the Company shall be
Transferred or encumbered for, or in payment of, any individual obligation of
any Member.
1.8 Independent Activities; Transactions With Affiliates. The Directors shall be
required to devote such time to the affairs of the Company as may be necessary
to manage and operate the Company, and shall be free to serve any other Person
or enterprise in any capacity that the Director may deem appropriate in such
Director's discretion. Neither this Agreement nor any activity undertaken
pursuant hereto shall (i) prevent any Member or Director or its Affiliates,
acting on its own behalf, from engaging in whatever activities it chooses,
whether the same are competitive with the Company or otherwise, and any such
activities may be undertaken without having or incurring any obligation to offer
any interest in such activities to the Company or any Member; or (ii) require
any Member or Director to permit the Company or Director or Member or its
Affiliates to participate in any such activities, and as a material part of the
consideration for the execution of this Agreement by each Member, each Member
hereby waives, relinquishes, and renounces any such right or claim of
participation. To the extent permitted by applicable law and subject to the
provisions of this Agreement, the Directors are hereby authorized to cause the
Company to purchase Property from, sell Property to or otherwise deal with any
Member (including any Member who is also a Director), acting on its own behalf,
or any Affiliate of any Member; provided that any such purchase, sale or other
transaction shall be made on terms and conditions which are no less favorable to
the Company than if the sale, purchase or other transaction had been made with
an independent third party.
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1.9 Definitions. Capitalized words and phrases used in this Agreement have the
following meanings:
(a) "Act" means the Nebraska Limited Liability Company Act, as amended from
time to time (or any corresponding provision or provisions of any succeeding
law).
(b) "Adjusted Capital Account Deficit" means, with respect to any Unit
Holder, the deficit balance, if any, in such Unit Holder's Capital Account as of
the end of the relevant Fiscal Year, after giving effect to the following
adjustments: (i) Credit to such Capital Account any amounts which such Unit
Holder is deemed to be obligated to restore pursuant to the next to the last
sentences in Sections 1.704-2(g)(1) and 1.704-2(i)(5) of the Regulations; and
(ii) Debit to such Capital Account the items described in Sections
1.704-1(b)(2)(ii)(d)(4), 1.704-1(b)(2)(ii)(d)(5) and 1.704-1(b)(2)(ii)(d)(6) of
the Regulations. The foregoing definition is intended to comply with the
provisions of Section 1.704-1(b)(2)(ii)(d) of the Regulations and shall be
interpreted consistently therewith.
(c) "Affiliate" means, with respect to any Person: (i) any Person directly
or indirectly controlling, controlled by or under common control with such
Person; (ii) any officer, director, general partner, member or trustee of such
Person; or (iii) any Person who is an officer, director, general partner, member
or trustee of any Person described in clauses (i) or (ii) of this sentence. For
purposes of this definition, the terms "controlling," "controlled by" or "under
common control with" shall mean the possession, direct or indirect, of the power
to direct or cause the direction of the management and policies of a Person or
entity, whether through the ownership of voting securities, by contract or
otherwise, or the power to elect at least 50% of the directors, members, or
persons exercising similar authority with respect to such Person or entities.
(d) "Agreement" means this Amended and Restated Operating Agreement of
Siouxland Ethanol, LLC, as amended from time to time.
(e) "Articles" means the Articles of Organization of the Company filed with
the Nebraska Secretary of State, as same may be amended from time to time.
(f) "Assignee" means a transferee of Units who is not admitted as a
substituted member pursuant to Section 9.8.
(g) "Capital Account" means the separate capital account maintained for
each Unit Holder in accordance with Section 2.3.
(h) "Capital Contributions" means, with respect to any Member, the amount
of money (US Dollars) and the initial Gross Asset Value of any assets or
property (other than money) contributed by the Member (or such Member's
predecessor in interest) to the Company (net of liabilities secured by such
contributed property that the Company is considered to assume or take subject to
under Code Section 752) with respect to the Units in the Company held or
purchased by such Member, including additional Capital Contributions.
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(i) "Code" means the United States Internal Revenue Code of 1986, as
amended from time to time.
(j) "Company" means Siouxland Ethanol, LLC, a Nebraska limited liability
company.
(k) "Company Minimum Gain" has the meaning given the term "partnership
minimum gain" in Sections 1.704-2(b)(2) and 1.704-2(d) of the Regulations.
(l) "Debt" means (i) any indebtedness for borrowed money or the deferred
purchase price of property as evidenced by a note, bonds, or other instruments;
(ii) obligations as lessee under capital leases; (iii) obligations secured by
any mortgage, pledge, security interest, encumbrance, lien or charge of any kind
existing on any asset owned or held by the Company whether or not the Company
has assumed or become liable for the obligations secured thereby; (iv) any
obligation under any interest rate swap agreement; (v) accounts payable; and
(vi) obligations under direct or indirect guarantees of (including obligations
(contingent or otherwise) to assure a creditor against loss in respect of)
indebtedness or obligations of the kinds referred to in clauses (i), (ii),
(iii), (iv) and (v), above provided that Debt shall not include obligations in
respect of any accounts payable that are incurred in the ordinary course of the
Company's business and are not delinquent or are being contested in good faith
by appropriate proceedings.
(m) "Depreciation" means, for each Fiscal Year, an amount equal to the
depreciation, amortization, or other cost recovery deduction allowable with
respect to an asset for such Fiscal Year, except that if the Gross Asset Value
of an asset differs from its adjusted basis for federal income tax purposes at
the beginning of such Fiscal Year, Depreciation shall be an amount which bears
the same ratio to such beginning Gross Asset Value as the federal income tax
depreciation, amortization, or other cost recovery deduction for such Fiscal
Year bears to such beginning adjusted tax basis; provided, however, that if the
adjusted basis for federal income tax purposes of an asset at the beginning of
such Fiscal Year is zero, Depreciation shall be determined with reference to
such beginning Gross Asset Value using any reasonable method selected by the
Directors.
(n) "Director" means any Person who (i) is referred to as such in Section
5.1 of this Agreement or has become a Director pursuant to the terms of this
Agreement, and (ii) has not ceased to be a Director pursuant to the terms of
this Agreement. "Directors" means all such Persons. For purposes of the Act, the
Directors shall be deemed to be the "managers" (as such term is defined and used
in the Act) of the Company.
(o) "Dissolution Event" shall have the meaning set forth in Section 10.1
hereof.
(p) "Effective Date" means February 24, 2005.
(q) "Facilities" shall mean the ethanol production and co-product
production facilities in Nebraska or such other location as may be determined by
the Directors to be constructed and operated by the Company pursuant to the
Company's business plan.
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(r) "Fiscal Year" means (i) any twelve-month period commencing on October 1
and ending on September 30 and (ii) the period commencing on the immediately
preceding October 1 and ending on the date on which all Property is distributed
to the Unit Holders pursuant to Section 10 hereof, or, if the context requires,
any portion of a Fiscal Year for which an allocation of Profits or Losses or a
distribution is to be made.
(s) "GAAP" means generally accepted accounting principles in effect in the
United States of America from time to time.
(t) "Gross Asset Value" means with respect to any asset, the asset's
adjusted basis for federal income tax purposes, except as follows: (i) The
initial Gross Asset Value of any asset contributed by a Member to the Company
shall be the gross fair market value of such asset, as determined by the
Directors provided that the initial Gross Asset Values of the assets contributed
to the Company pursuant to Section 2.1 hereof shall be as set forth in such
section; (ii) The Gross Asset Values of all Company assets shall be adjusted to
equal their respective gross fair market values (taking Code Section 7701(g)
into account), as determined by the Directors as of the following times: (A) the
acquisition of an additional interest in the Company by any new or existing
Member in exchange for more than a de minimis Capital Contribution; (B) the
distribution by the Company to a Member of more than a de minimis amount of
Company property as consideration for an interest in the Company; and (C) the
liquidation of the Company within the meaning of Regulations Section
1.704-1(b)(2)(ii)(g), provided that an adjustment described in clauses (A) and
(B) of this paragraph shall be made only if the Directors reasonably determine
that such adjustment is necessary to reflect the relative economic interests of
the Members in the Company; (iii) The Gross Asset Value of any item of Company
assets distributed to any Member shall be adjusted to equal the gross fair
market value (taking Code Section 7701(g) into account) of such asset on the
date of distribution as determined by the Directors; and (iv) The Gross Asset
Values of Company assets shall be increased (or decreased) to reflect any
adjustments to the adjusted basis of such assets pursuant to Code Section 734(b)
or Code Section 743(b), but only to the extent that such adjustments are taken
into account in determining Capital Accounts pursuant to Regulations Section
1.704-1(b)(2)(iv)(m) and subparagraph (vi) of the definition of "Profits" and
"Losses" or Section 3.3(c) hereof; provided, however, that Gross Asset Values
shall not be adjusted pursuant to this subparagraph (iv) to the extent that an
adjustment pursuant to subparagraph (ii) is required in connection with a
transaction that would otherwise result in an adjustment pursuant to this
subparagraph (iv). If the Gross Asset Value of an asset has been determined or
adjusted pursuant to subparagraph (ii) or (iv), such Gross Asset Value shall
thereafter be adjusted by the Depreciation taken into account with respect to
such asset, for purposes of computing Profits and Losses.
(u) "Issuance Items" has the meaning set forth in Section 3.3(h) hereof.
(v) "Liquidation Period" has the meaning set forth in Section 10.6 hereof.
(w) "Liquidator" has the meaning set forth in Section 10.8 hereof.
(x) "Losses" has the meaning set forth in the definition of "Profits" and
"Losses."
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(y) "Member" means any Person (i) whose name is set forth as such on
Exhibit "A" initially attached hereto or has become a Member pursuant to the
terms of this Agreement, and (ii) who is the owner of one or more Units.
(z) "Members" means all such Members.
(aa) "Membership Economic Interest" means collectively, a Member's share of
"Profits" and "Losses," the right to receive distributions of the Company's
assets, and the right to information concerning the business and affairs of the
Company provided by the Act. The Membership Economic Interest of a Member is
quantified by the unit of measurement referred to herein as "Units."
(bb) "Membership Interest" means collectively, the Membership Economic
Interest and Membership Voting Interest.
(cc) "Membership Register" means the membership register maintained by the
Company at its principal office or by a duly appointed agent of the Company
setting forth the name, address, the number of Units, and Capital Contributions
of each Member of the Company, which shall be modified from time to time as
additional Units are issued and as Units are transferred pursuant to this
Agreement.
(dd) "Membership Voting Interest" means collectively, a Member's right to
vote as set forth in this Agreement or required by the Act. The Membership
Voting Interest of a Member shall mean as to any matter to which the Member is
entitled to vote hereunder or as may be required under the Act, the right to one
(1) vote for each Unit registered in the name of such Member as shown in the
Membership Register.
(ee) "Net Cash Flow" means the gross cash proceeds of the Company less the
portion thereof used to pay or establish reserves for all Company expenses, debt
payments, capital improvements, replacements, and contingencies, all as
reasonably determined by the Directors. "Net Cash Flow" shall not be reduced by
depreciation, amortization, cost recovery deductions, or similar allowances, but
shall be increased by any reductions of reserves previously established.
(ff) "Nonrecourse Deductions" has the meaning set forth in Section
1.704-2(b)(1) of the Regulations.
(gg) "Nonrecourse Liability" has the meaning set forth in Section
1.704-2(b)(3) of the Regulations.
(hh) "Officer" or "Officers" has the meaning set forth in Section 5.18
hereof.
(ii) "Permitted Transfer" has the meaning set forth in Section 9.2 hereof.
(jj) "Person" means any individual, partnership (whether general or
limited), joint venture, limited liability company, corporation, trust, estate,
association, nominee or other entity.
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(kk) "Profits and Losses" mean, for each Fiscal Year, an amount equal to
the Company's taxable income or loss for such Fiscal Year, determined in
accordance with Code Section 703(a) (for this purpose, all items of income,
gain, loss, or deduction required to be stated separately pursuant to Code
Section 703(a)(1) shall be included in taxable income or loss), with the
following adjustments (without duplication): (i) Any income of the Company that
is exempt from federal income tax and not otherwise taken into account in
computing Profits or Losses pursuant to this definition of "Profits" and
"Losses" shall be added to such taxable income or loss; (ii) Any expenditures of
the Company described in Code Section 705(a)(2)(b) or treated as Code Section
705(a)(2)(b) expenditures pursuant to Regulations Section 1.704-1(b)(2)(iv)(i),
and not otherwise taken into account in computing Profits or Losses pursuant to
this definition of "Profits" and "Losses" shall be subtracted from such taxable
income or loss; (iii) In the event the Gross Asset Value of any Company asset is
adjusted pursuant to subparagraphs (ii) or (iii) of the definition of Gross
Asset Value, the amount of such adjustment shall be treated as an item of gain
(if the adjustment increases the Gross Asset Value of the asset) or an item of
loss (if the adjustment decreases the Gross Asset Value of the asset) from the
disposition of such asset and shall be taken into account for purposes of
computing Profits or Losses; (iv) Gain or loss resulting from any disposition of
Property with respect to which gain or loss is recognized for federal income tax
purposes shall be computed by reference to the Gross Asset Value of the Property
disposed of, notwithstanding that the adjusted tax basis of such Property
differs from its Gross Asset Value; (v) In lieu of the depreciation,
amortization, and other cost recovery deductions taken into account in computing
such taxable income or loss, there shall be taken into account Depreciation for
such Fiscal Year, computed in accordance with the definition of Depreciation;
(vi) To the extent an adjustment to the adjusted tax basis of any Company asset
pursuant to Code Section 734(b) is required, pursuant to Regulations Section
1.704-(b)(2)(iv)(m)(4), to be taken into account in determining Capital Accounts
as a result of a distribution other than in liquidation of a Unit Holder's
interest in the Company, the amount of such adjustment shall be treated as an
item of gain (if the adjustment increases the basis of the asset) or loss (if
the adjustment decreases such basis) from the disposition of such asset and
shall be taken into account for purposes of computing Profits or Losses; and
(vii) Notwithstanding any other provision of this definition, any items which
are specially allocated pursuant to Section 3.3 and Section 3.4 hereof shall not
be taken into account in computing Profits or Losses. The amounts of the items
of Company income, gain, loss or deduction available to be specially allocated
pursuant to Sections 3.3 and Section 3.4 hereof shall be determined by applying
rules analogous to those set forth in subparagraphs (i) through (vi) above.
(ll) "Property" means all real and personal property acquired by the
Company, including cash, and any improvements thereto, and shall include both
tangible and intangible property.
(mm) "Regulations" means the Income Tax Regulations, including Temporary
Regulations, promulgated under the Code, as such regulations are amended from
time to time.
(nn) "Regulatory Allocations" has the meaning set forth in Section 3.4
hereof.
(oo) "Related Party" means the adopted or birth relatives of any Person and
such Person's spouse (whether by marriage or common law), if any, including
without limitation
7
great-grandparents, grandparents, parents, children (including stepchildren and
adopted children), grandchildren, and great-grandchildren thereof, and such
Person's (and such Person's spouse's) brothers, sisters, and cousins and their
respective lineal ancestors and descendants, and any other ancestors and/or
descendants, and any spouse of any of the foregoing, each trust created for the
exclusive benefit of one or more of the foregoing, and the successors, assigns,
heirs, executors, personal representatives and estates of any of the foregoing.
(pp) "Securities Act" means the Securities Act of 1933, as amended.
(qq) "Subsidiary" means any corporation, partnership, joint venture,
limited liability company, association or other entity in which such Person
owns, directly or indirectly, fifty percent (50%) or more of the outstanding
equity securities or interests, the holders of which are generally entitled to
vote for the election of the board of directors or other governing body of such
entity.
(rr) "Tax Matters Member" has the meaning set forth in Section 7.4 hereof.
(ss) "Transfer" means, as a noun, any voluntary or involuntary transfer,
sale, pledge or hypothecation or other disposition and, as a verb, voluntarily
or involuntarily to transfer, give, sell, exchange, assign, pledge, bequest or
hypothecate or otherwise dispose of.
(tt) "Units" or "Unit" means an ownership interest in the Company
representing a Capital Contribution made as provided in Section 2 in
consideration of the Units, including any and all benefits to which the holder
of such Units may be entitled as provided in this Agreement, together with all
obligations of such Person to comply with the terms and provisions of this
Agreement.
(uu) "Unit Holders" means all Unit Holders.
(vv) "Unit Holder" means the owner of one or more Units.
(ww) "Unit Holder Nonrecourse Debt" has the same meaning as the term
"partner nonrecourse debt" in Section 1.704-2(b)(4) of the Regulations.
(xx) "Unit Holder Nonrecourse Debt Minimum Gain" means an amount, with
respect to each Unit Holder Nonrecourse Debt, equal to the Company Minimum Gain
that would result if such Unit Holder Nonrecourse Debt were treated as a
Nonrecourse Liability, determined in accordance with Section 1.704-2(i)(3) of
the Regulations.
(yy) "Unit Holder Nonrecourse Deductions" has the same meaning as the term
"partner nonrecourse deductions" in Sections 1.704-2(i)(1) and 1.704-2(i)(2) of
the Regulations.
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SECTION 2. CAPITAL CONTRIBUTIONS; CAPITAL ACCOUNTS
2.1 Original Capital Contributions. The name, original Capital Contribution, and
initial Units quantifying the Membership Interest of each Member are set out in
Exhibit A attached hereto, and shall also be set out in the Membership Register.
2.2 Additional Capital Contributions; Additional Units. No Unit Holder shall be
obligated to make any additional Capital Contributions to the Company or to pay
any assessment to the Company, other than any unpaid amounts on such Unit
Holder's original Capital Contributions, and no Units shall be subject to any
calls, requests or demands for capital. Subject to Section 5.7, additional
Membership Economic Interests quantified by additional Units may be issued in
consideration of Capital Contributions as agreed to between the Directors and
the Person acquiring the Membership Economic Interest quantified by the
additional Units. Each Person to whom additional Units are issued shall be
admitted as a Member in accordance with this Agreement. Upon such Capital
Contributions, the Directors shall cause the Membership Register as maintained
by the Company at its principal office and incorporated herein by this
reference, to be appropriately amended and such amendments shall not be
considered amendments to this Agreement for purposes of Section 8.1 hereof.
2.3 Capital Accounts. A Capital Account shall be maintained for each Unit Holder
in accordance with the following provisions:
(a) To each Unit Holder's Capital Account there shall be credited (i) such
Unit Holder's Capital Contributions; (ii) such Unit Holder's distributive share
of Profits and any items in the nature of income or gain which are specially
allocated pursuant to Section 3.3 and Section 3.4; and (iii) the amount of any
Company liabilities assumed by such Unit Holder or which are secured by any
Property distributed to such Unit Holder;
(b) To each Unit Holder's Capital Account there shall be debited (i) the
amount of money and the Gross Asset Value of any Property distributed to such
Unit Holder pursuant to any provision of this Agreement; (ii) such Unit Holder's
distributive share of Losses and any items in the nature of expenses or losses
which are specially allocated pursuant to Section 3.3 and 3.4 hereof; and (iii)
the amount of any liabilities of such Unit Holder assumed by the Company or
which are secured by any Property contributed by such Unit Holder to the
Company;
(c) In the event Units are Transferred in accordance with the terms of this
Agreement, the transferee shall succeed to the Capital Account of the transferor
to the extent it relates to the Transferred Units; and
(d) In determining the amount of any liability for purposes of
subparagraphs (a) and (b) above there shall be taken into account Code Section
752(c) and any other applicable provisions of the Code and Regulations.
The foregoing provisions and the other provisions of this Agreement relating to
the maintenance of Capital Accounts are intended to comply with Regulations
Section 1.704-1(b), and shall be
9
interpreted and applied in a manner consistent with such Regulations. In the
event the Directors shall determine that it is prudent to modify the manner in
which the Capital Accounts, or any debits or credits thereto (including, without
limitation, debits or credits relating to liabilities which are secured by
contributed or distributed property or which are assumed by the Company or any
Unit Holders), are computed in order to comply with such Regulations, the
Directors may make such modification, provided that it is not likely to have a
material effect on the amounts distributed to any Person pursuant to Section 10
hereof upon the dissolution of the Company. The Directors also shall (i) make
any adjustments that are necessary or appropriate to maintain equality between
the Capital Accounts of the Unit Holders and the amount of capital reflected on
the Company's balance sheet, as computed for book purposes, in accordance with
Regulations Section 1.704-1(b)(2)(iv)(q), and (ii) make any appropriate
modifications in the event unanticipated events might otherwise cause this
Agreement not to comply with Regulations Section 1.704-1(b).
SECTION 3. ALLOCATIONS
3.1 Profits. After giving effect to the special allocations in Section 3.3 and
Section 3.4 hereof, Profits for any Fiscal Year shall be allocated among the
Unit Holders in proportion to Units held.
3.2 Losses. After giving effect to the special allocations in Section 3.3 and
3.4 hereof, Losses for any Fiscal Year shall be allocated among the Unit Holders
in proportion to Units held.
3.3 Special Allocations. The following special allocations shall be made in the
following order:
(a) Minimum Gain Chargeback. Except as otherwise provided in Section
1.704-2(f) of the Regulations, notwithstanding any other provision of this
Section 3, if there is a net decrease in Company Minimum Gain during any Fiscal
Year, each Unit Holder shall be specially allocated items of Company income and
gain for such Fiscal Year (and, if necessary, subsequent Fiscal Years) in an
amount equal to such Unit Holder's share of the net decrease in Company Minimum
Gain, determined in accordance with Regulations Section 1.704-2(g). Allocations
pursuant to the previous sentence shall be made in proportion to the respective
amounts required to be allocated to each Unit Holder pursuant thereto. The items
to be so allocated shall be determined in accordance with sections 1.704-2(f)(6)
and 1.704-2(j)(2) of the Regulations. This Section 3.3(a) is intended to comply
with the minimum gain chargeback requirement in Section 1.704-2(f) of the
Regulations and shall be interpreted consistently therewith.
(b) Unit Holder Minimum Gain Chargeback. Except as otherwise provided in
Section 1.704-2(i)(4) of the Regulations, notwithstanding any other provision of
this Section 3, if there is a net decrease in Unit Holder Nonrecourse Debt
Minimum Gain attributable to a Unit Holder Nonrecourse Debt during any Fiscal
Year, each Unit Holder who has a share of the Unit Holder Nonrecourse Debt
Minimum Gain attributable to such Unit Holder Nonrecourse Debt, determined in
accordance with Section 1.704-2(i)(5) of the Regulations, shall be specially
allocated items of Company income and gain for such Fiscal Year (and, if
necessary, subsequent Fiscal Years) in an amount equal to such Unit Holder's
share of the net decrease in Unit Holder
10
Nonrecourse Debt Minimum Gain, determined in accordance with Regulations Section
1.704-2(i)(4). Allocations pursuant to the previous sentence shall be made in
proportion to the respective amounts required to be allocated to each Unit
Holder pursuant thereto. The items to be so allocated shall be determined in
accordance with Sections 1.704-2(i)(4) and 1.704-2(j)(2) of the Regulations.
This Section 3.3(b) is intended to comply with the minimum gain chargeback
requirement in Section 1.704-2(i)(4) of the Regulations and shall be interpreted
consistently therewith.
(c) Qualified Income Offset. In the event any Member unexpectedly receives
any adjustments, allocations, or distributions described in Sections
1.704-1(b)(2)(ii)(d)(4), 1.704-1(b)(2)(ii)(d)(5), or 1.704-1(b)(2)(ii)(d)(6) of
the Regulations, items of Company income and gain shall be specially allocated
to such Member in an amount and manner sufficient to eliminate, to the extent
required by the Regulations, the Adjusted Capital Account Deficit as soon as
practicable, provided that an allocation pursuant to this Section 3.3(c) shall
be made only if and to the extent that the Member would have an Adjusted Capital
Account Deficit after all other allocations provided for in this Section 3 have
been tentatively made as if this Section 3.3(c) were not in the Agreement.
(d) Gross Income Allocation. In the event any Member has a deficit Capital
Account at the end of any Fiscal Year which is in excess of the sum of (i) the
amount such Member is obligated to restore pursuant to any provision of this
Agreement; and (ii) the amount such Member is deemed to be obligated to restore
pursuant to the penultimate sentences of Sections 1.704-2(g)(1) and
1.704-2(i)(5) of the Regulations, each such Member shall be specially allocated
items of Company income and gain in the amount of such excess as quickly as
possible, provided that an allocation pursuant to this Section 3.3(d) shall be
made only if and to the extent that such Member would have a deficit Capital
Account in excess of such sum after all other allocations provided for in this
Section 3 have been made as if Section 3.3(c) and this Section 3.3(d) were not
in this Agreement.
(e) Nonrecourse Deductions. Nonrecourse Deductions for any Fiscal Year or
other period shall be specially allocated among the Members in proportion to
Units held.
(f) Unit Holder Nonrecourse Deductions. Any Unit Holder Nonrecourse
Deductions for any Fiscal Year shall be specially allocated to the Unit Holder
who bears the economic risk of loss with respect to the Unit Holder Nonrecourse
Debt to which such Unit Holder Nonrecourse Deductions are attributable in
accordance with Regulations Section 1.704-2(i)(1).
(g) Section 754 Adjustments. To the extent an adjustment to the adjusted
tax basis of any Company asset, pursuant to Code Section 734(b) or Code Section
743(b) is required, pursuant to Regulations Section 1.704-1(b)(2)(iv)(m)(2) or
1.704-1(b)(2)(iv)(m)(4), to be taken into account in determining Capital
Accounts as the result of a distribution to a Unit Holder in complete
liquidation of such Unit Holder's interest in the Company, the amount of such
adjustment to Capital Accounts shall be treated as an item of gain (if the
adjustment increases the basis of the asset) or loss (if the adjustment
decreases such basis) and such gain or loss shall be specially allocated to the
Unit Holders in accordance with their interests in the Company in the
11
event Regulations Section 1.704-1(b)(2)(iv)(m)(2) applies, or to the Unit Holder
to whom such distribution was made in the event Regulations Section
1.704-1(b)(2)(iv)(m)(4) applies.
(h) Allocations Relating to Taxable Issuance of Company Units. Any income,
gain, loss or deduction realized as a direct or indirect result of the issuance
of Units by the Company to a Unit Holder (the "Issuance Items") shall be
allocated among the Unit Holders so that, to the extent possible, the net amount
of such Issuance Items, together with all other allocations under this Agreement
to each Unit Holder shall be equal to the net amount that would have been
allocated to each such Unit Holder if the Issuance Items had not been realized.
3.4 Curative Allocations. The allocations set forth in Sections 3.3(a), 3.3(b),
3.3(c), 3.3(d), 3.3(e), 3.3(f), 3.3(g) and 3.5 (the "Regulatory Allocations")
are intended to comply with certain requirements of the Regulations. It is the
intent of the Members that, to the extent possible, all Regulatory Allocations
shall be offset either with other Regulatory Allocations or with special
allocations of other items of Company income, gain, loss or deduction pursuant
to this Section 3.4. Therefore, notwithstanding any other provision of this
Section 3 (other than the Regulatory Allocations), the Directors shall make such
offsetting special allocations of Company income, gain, loss or deduction in
whatever manner it determines appropriate so that, after such offsetting
allocations are made, each Member's Capital Account balance is, to the extent
possible, equal to the Capital Account balance such Member would have had if the
Regulatory Allocations were not part of the Agreement and all Company items were
allocated pursuant to Sections 3.1, 3.2, and 3.3(h).
3.5 Loss Limitation. Losses allocated pursuant to Section 3.2 hereof shall not
exceed the maximum amount of Losses that can be allocated without causing any
Unit Holder to have an Adjusted Capital Account Deficit at the end of any Fiscal
Year. In the event some but not all of the Unit Holders would have Adjusted
Capital Account Deficits as a consequence of an allocation of Losses pursuant to
Section 3.2 hereof, the limitation set forth in this Section 3.5 shall be
applied on a Unit Holder by Unit Holder basis and Losses not allocable to any
Unit Holder as a result of such limitation shall be allocated to the other Unit
Holders in accordance with the positive balances in such Unit Holder's Capital
Accounts so as to allocate the maximum permissible Losses to each Unit Holder
under Section 1.704-1(b)(2)(ii)(d) of the Regulations.
3.6 Other Allocation Rules.
(a) For purposes of determining the Profits, Losses, or any other items
allocable to any period, Profits, Losses, and any such other items shall be
determined on a daily, monthly, or other basis, as determined by the Directors
using any permissible method under Code Section 706 and the Regulations
thereunder.
(b) The Unit Holders are aware of the income tax consequences of the
allocations made by this Section 3 and hereby agree to be bound by the
provisions of this Section 3 in reporting their shares of Company income and
loss for income tax purposes.
(c) Solely for purposes of determining a Unit Holder's proportionate share
of the "excess nonrecourse liabilities" of the Company within the meaning of
Regulations Section
12
1.752-3(a)(3), the Unit Holders' aggregate interests in Company profits shall be
deemed to be as provided in the capital accounts. To the extent permitted by
Section 1.704-2(h)(3) of the Regulations, the Directors shall endeavor to treat
distributions of Net Cash Flow as having been made from the proceeds of a
Nonrecourse Liability or a Unit Holder Nonrecourse Debt only to the extent that
such distributions would cause or increase an Adjusted Capital Account Deficit
for any Unit Holder.
(d) Allocations of Profits and Losses to the Unit Holders shall be
allocated among them in the ratio which each Unit Holder's Units bears to the
total number of Units issued and outstanding.
3.7 Tax Allocations: Code Section 704(c). In accordance with Code Section 704(c)
and the Regulations thereunder, income, gain, loss, and deduction with respect
to any Property contributed to the capital of the Company shall, solely for tax
purposes, be allocated among the Unit Holders so as to take account of any
variation between the adjusted basis of such Property to the Company for federal
income tax purposes and its initial Gross Asset Value (computed in accordance
with the definition of Gross Asset Value). In the event the Gross Asset Value of
any Company asset is adjusted pursuant to subparagraph (ii) of the definition of
Gross Asset Value, subsequent allocations of income, gain, loss, and deduction
with respect to such asset shall take account of any variation between the
adjusted basis of such asset for federal income tax purposes and its Gross Asset
Value in the same manner as under Code Section 704(c) and the Regulations
thereunder. Any elections or other decisions relating to such allocations shall
be made by the Directors in any manner that reasonably reflects the purpose and
intention of this Agreement. Allocations pursuant to this Section 3.7 are solely
for purposes of federal, state, and local taxes and shall not affect, or in any
way be taken into account in computing, any Unit Holder's Capital Account or
share of Profits, Losses, other items, or distributions pursuant to any
provision of this Agreement.
3.8 Tax Credit Allocations. All credits against income tax with respect to the
Company's property or operations shall be allocated among the Members in
accordance with their respective membership interests in the Company for the
Fiscal Year during which the expenditure, production, sale, or other event
giving rise to the credit occurs. This Section 3.8 is intended to comply with
the applicable tax credit allocation principles of section 1.704-1(b)(4)(ii) of
the Regulations and shall be interpreted consistently therewith.
SECTION 4. DISTRIBUTIONS
4.1 Net Cash Flow. The Directors, in their discretion, shall make distributions
of Net Cash Flow, if any, to the Members. Except as otherwise provided in
Section 10 hereof, Net Cash Flow, if any, shall be distributed to the Unit
Holders in proportion to Units held subject to, and to the extent permitted by,
any loan covenants or restrictions on such distributions agreed to by the
Company in any loan, credit or any other debt financing agreements with the
Company's lenders and creditors from time to time in effect. In determining Net
Cash Flow, the Directors shall endeavor to provide for cash distributions at
such times and in such amounts as will permit the Unit Holders to make timely
payment of income taxes.
13
4.2 Amounts Withheld. All amounts withheld pursuant to the Code or any provision
of any state, local or foreign tax law with respect to any payment, distribution
or allocation to the Company or the Unit Holders shall be treated as amounts
paid or distributed, as the case may be, to the Unit Holders with respect to
which such amount was withheld pursuant to this Section 4.2 for all purposes
under this Agreement. The Company is authorized to withhold from payments and
distributions, or with respect to allocations to the Unit Holders, and to pay
over to any federal, state and local government or any foreign government, any
amounts required to be so withheld pursuant to the Code or any provisions of any
other federal, state or local law or any foreign law, and shall allocate any
such amounts to the Unit Holders with respect to which such amount was withheld.
4.3 Limitations on Distributions. The Company shall make no distributions to the
Unit Holders except as provided in this Section 4 and Section 10 hereof.
Notwithstanding any other provision, no distribution shall be made if it is not
permitted to be made under the Act.
SECTION 5. MANAGEMENT
5.1 Directors. Except as otherwise provided in this Agreement, the Directors
shall direct the business and affairs of the Company, and shall exercise all of
the powers of the Company except such powers as are by this Agreement conferred
upon or reserved to the Members. The Directors shall adopt such policies, rules,
regulations, and actions not inconsistent with law or this Agreement as it may
deem advisable. The amendment or repeal of this section or the adoption of any
provision inconsistent therewith shall require the approval of a majority of the
Membership Voting Interests.
5.2 Number of Total Directors. The total number of Directors of the Company
shall be a minimum of seven (7) and a maximum of fifteen (15) subject to the
number of Directors appointed pursuant to Section 5.3(c). The total number of
Directors shall depend upon the number of Directors appointed pursuant to
Section 5.3(c) in relation to the required number of elected Directors necessary
to maintain a majority of elected Directors on the Board. Subject to the
election and appointment of Directors pursuant to the terms of this Operating
Agreement, the Members may increase or decrease the number of Directors last
approved and may change from a variable range to a fixed number or visa versa by
vote at any annual or special meeting. However, the relative ratio of the number
of elected Directors to appointed Directors shall always result in a majority of
elected Directors.
5.3 Election of Directors.
(a) Election of Directors and Terms. The initial Directors, appointed by
the initial Members, shall be the individuals set forth on Exhibit "B" attached
hereto. The initial Directors shall serve until the first annual or special
meeting of the Members following substantial completion of the construction of
the Facilities, and in all cases until a successor is elected and qualified, or
until the earlier death, resignation, removal or disqualification of any such
Director. After the expiration of the initial terms of the Directors, at each
annual meeting of the Members, Directors shall be elected by the Members for
staggered terms of three (3) years and until a successor is elected and
qualified; provided however, that any Member who is authorized to
14
appoint a Director pursuant to Section 5.3(c) shall not be entitled to vote for
the election of any other Directors that the Members are entitled to elect, and
the Units held by such Member shall not be included in determining a majority of
the Membership Voting Interests for purposes of electing Directors. The initial
Directors shall, by resolution adopted prior to the expiration of their initial
term, separately identify the Director positions to be elected and shall
classify each such Director position as Group I, Group II or Group III, with
such classification to serve as the basis for the staggering of terms among the
elected Directors. The terms of Group I Directors shall expire first (initial
term of one year with successors elected to three year terms thereafter),
followed by those of Group II Directors (initial term of two years with
successors elected to three year terms thereafter), and then Group III Directors
(initial and subsequent terms of three years). Except for the special right of
appointment of certain Directors as provided in subsection (c) hereof, Directors
shall be elected by a plurality vote of the Members so that the nominees
receiving the greatest number of votes relative to all other nominees are
elected as Directors.
(b) Nominations for Directors. One or more nominees for Director positions
up for election shall be named by the then current Directors or by a nominating
committee established by the Directors. Nominations for the election of
Directors may also be made by any Member entitled to vote generally in the
election of Directors. However, any Member that intends to nominate one or more
persons for election as Directors at a meeting may do so only if written notice
of such Member's intent to make such nomination or nominations has been given,
either by personal delivery or by United States mail, postage prepaid, to the
Secretary of the Company not less than sixty (60) days nor more than ninety (90)
days prior to the annual meeting of the Company. Each such notice to the
Secretary shall set forth:
(i) the name and address of record of the Member who intends to make
the nomination;
(ii) a representation that the Member is a holder of record of Units
of the Company entitled to vote at such meeting and intends to
appear in person or by proxy at the meeting to nominate the
person or persons specified in the notice;
(iii) the name, age, business and residence addresses, and principal
occupation or employment of each nominee;
(iv) a description of all arrangements or understandings between the
Member and each nominee and any other person or persons (naming
such person or persons) pursuant to which the nomination or
nominations are to be made by the Members;
(v) such other information regarding each nominee proposed by such
Member as would be required to be included in a proxy statement
filed pursuant to the proxy rules of the Securities and Exchange
Commission;
(vi) the consent of each nominee to serve as a Director of the
Company if so elected; and
(vii) a nominating petition signed and dated by the holders of at
least five percent (5%) of the then outstanding Units and
clearly setting forth the proposed nominee as a candidate of the
Director's seat to be filled at the next election of Directors.
15
The Company may require any proposed nominee to furnish such other information
as may reasonably be required by the Company to determine the eligibility of
such proposed nominee to serve as a Director of the Company. The presiding
Officer of the meeting may, if the facts warrant, determine that a nomination
was not made in accordance with the foregoing procedures, and if he should so
determine, he shall so declare to the meeting and the defective nomination shall
be disregarded. The amendment or repeal of this Section or the adoption of any
provision inconsistent therewith shall require the approval of a majority of the
Membership Voting Interests. Whenever a vacancy occurs other than from
expiration of a term of office or removal from office, a majority of the
remaining Directors shall appoint a new Director to fill the vacancy for the
remainder of such term.
(c) Special Right of Appointment of Directors for Certain Members.
Commencing with the first annual or special meeting of the Members following
Financial Closing, each Member who holds two hundred (200) or more Units, all of
which were purchased by such Member from the Company during the Company's
initial registered offering ("Appointing Members"), shall be entitled to appoint
one (1) Director, so long as the Appointing Member is the holder of two hundred
(200) or more Units. Units held by an Affiliate or Related Party of a Member
shall be included in the determination of whether the Member holds the requisite
number of Units for purposes of this section. Only Members who acquire two
hundred (200) or more Units from the Company in its initial registered offering
are granted appointment rights hereunder. Accordingly, any Member who
subsequently acquires two hundred (200) or more Units other than by acquisition
from the Company in its initial registered offering, shall not be entitled to
appoint any Directors, regardless of the number of Units held by such Member. A
Director appointed by a Member under this section shall serve indefinitely at
the pleasure of the Member appointing him or her until a successor is appointed,
or until the earlier death, resignation, or removal of the Director. Any
Director appointed under this section may be removed for any reason by the
Member appointing him or her, upon written notice to the Board of Directors,
which notice may designate and appoint a successor Director to fill the vacancy,
and which notice may be given at a meeting of the Board of Directors attended by
the person appointed to fill the vacancy. Any such vacancy shall be filled
within thirty days of its occurrence by the Member having the right of
appointment. In the event that the number of Units held by a Member falls below
the threshold of 200 Units, the term of any Director appointed by such Member
shall terminate, the seat will dissolve, and the Member shall elect Directors
collectively with the other Members in accordance with Section 5.3(a).
5.4 Committees. A resolution approved by the affirmative vote of a majority of
the Directors may establish committees having the authority of the Directors in
the management of the business of the Company to the extent consistent with this
Agreement and provided in the resolution. A committee shall consist of one or
more persons appointed by affirmative vote of a majority of the Directors
present. A majority of the committee members shall be Directors but not every
committee member is required to be a Director. Committees may include a
compensation committee and/or an audit committee, in each case consisting of one
or more independent Directors or other independent persons. Committees are
subject to the direction and control of the Directors, and vacancies in the
membership thereof shall be filled by the Directors. A majority of the members
of the committee present at a meeting is a quorum for the transaction
16
of business, unless a larger or smaller proportion or number is provided in a
resolution approved by the affirmative vote of a majority of the Directors
present.
5.5 Authority of Directors. Subject to the limitations and restrictions set
forth in this Agreement, the Directors shall direct the management of the
business and affairs of the Company and shall have all of the rights and powers
which may be possessed by a "manager" under the Act including, without
limitation, the right and power to do or perform the following and, to the
extent permitted by the Act or this Agreement, the further right and power by
resolution of the Directors to delegate to the Officers or such other Person or
Persons to do or perform the following:
(a) Conduct its business, carry on its operations and have and exercise the
powers granted by the Act in any state, territory, district or possession of the
United States, or in any foreign country which may be necessary or convenient to
effect any or all of the purposes for which it is organized;
(b) Acquire by purchase, lease, or otherwise any real or personal property
which may be necessary, convenient, or incidental to the accomplishment of the
purposes of the Company;
(c) Operate, maintain, finance, improve, construct, own, grant operations
with respect to, sell, convey, assign, mortgage, and lease any real estate and
any personal property necessary, convenient, or incidental to the accomplishment
of the purposes of the Company;
(d) Execute any and all agreements, contracts, documents, certifications,
and instruments necessary or convenient in connection with the management,
maintenance, and operation of the business, or in connection with managing the
affairs of the Company, including, executing amendments to this Agreement and
the Articles in accordance with the terms of this Agreement, both as Directors
and, if required, as attorney-in-fact for the Members pursuant to any power of
attorney granted by the Members to the Directors;
(e) Borrow money and issue evidences of indebtedness necessary, convenient,
or incidental to the accomplishment of the purposes of the Company, and secure
the same by mortgage, pledge, or other lien on any Company assets;
(f) Execute, in furtherance of any or all of the purposes of the Company,
any deed, lease, mortgage, deed of trust, mortgage note, promissory note, xxxx
of sale, contract, or other instrument purporting to convey or encumber any or
all of the Company assets;
(g) Prepay in whole or in part, refinance, recast, increase, modify, or
extend any liabilities affecting the assets of the Company and in connection
therewith execute any extensions or renewals of encumbrances on any or all of
such assets;
(h) Care for and distribute funds to the Members by way of cash income,
return of capital, or otherwise, all in accordance with the provisions of this
Agreement, and perform all matters in furtherance of the objectives of the
Company or this Agreement;
17
(i) Contract on behalf of the Company for the employment and services of
employees and/or independent contractors, such as lawyers and accountants, and
delegate to such Persons the duty to manage or supervise any of the assets or
operations of the Company;
(j) Engage in any kind of activity and perform and carry out contracts of
any kind (including contracts of insurance covering risks to Company assets and
Directors' and Officers' liability) necessary or incidental to, or in connection
with, the accomplishment of the purposes of the Company, as may be lawfully
carried on or performed by a limited liability company under the laws of each
state in which the Company is then formed or qualified;
(k) Take, or refrain from taking, all actions, not expressly proscribed or
limited by this Agreement, as may be necessary or appropriate to accomplish the
purposes of the Company;
(l) Institute, prosecute, defend, settle, compromise, and dismiss lawsuits
or other judicial or administrative proceedings brought on or in behalf of, or
against, the Company, the Members or the Directors or Officers in connection
with activities arising out of, connected with, or incidental to this Agreement,
and to engage counsel or others in connection therewith;
(m) Purchase, take, receive, subscribe for or otherwise acquire, own, hold,
vote, use, employ, sell, mortgage, lend, pledge, or otherwise dispose of, and
otherwise use and deal in and with, shares or other interests in or obligations
of domestic or foreign corporations, associations, general or limited
partnerships, other limited liability companies, or individuals or direct or
indirect obligations of the United States or of any government, state,
territory, government district or municipality or of any instrumentality of any
of them;
(n) Agree with any Person as to the form and other terms and conditions of
such Person's Capital Contribution to the Company and cause the Company to issue
Membership Economic Interests and Units in consideration of such Capital
Contribution; and
(o) Indemnify a Member or Directors or Officers, or former Members or
Directors or Officers, and to make any other indemnification that is authorized
by this Agreement in accordance with, and to the fullest extent permitted by,
the Act.
5.6 Director as Agent. Notwithstanding the power and authority of the Directors
to manage the business and affairs of the Company, no Director shall have
authority to act as agent for the Company for the purposes of its business
(including the execution of any instrument on behalf of the Company) unless the
Directors have authorized the Director to take such action. The Directors may
also delegate authority to manage the business and affairs of the Company
(including the execution of instruments on behalf of the Company) to such Person
or Persons (including to any Officers) designated by the Directors, and such
Person or Persons (or Officers) shall have such titles and authority as
determined by the Directors.
5.7 Restrictions on Authority of Directors.
(a) The Directors shall not have authority to, and they covenant and agree
that they shall not, do any of the following acts without the unanimous consent
of the Members:
18
(i) Cause or permit the Company to engage in any activity that is
not consistent with the purposes of the Company as set forth in
Section 1.3 hereof;
(ii) Knowingly do any act in contravention of this Agreement or which
would make it impossible to carry on the ordinary business of
the Company, except as otherwise provided in this Agreement;
(iii) Possess Company Property, or assign rights in specific Company
Property, for other than a Company purpose; or
(iv) Cause the Company to voluntarily take any action that would
cause a bankruptcy of the Company.
(b) The Directors shall not have authority to, and they covenant and agree
that they shall not cause the Company to, without the consent of the Members:
(i) Merge, consolidate, exchange or otherwise dispose of at one time
all or substantially all of the Property, except for a
liquidating sale of the Property in connection with the
dissolution of the Company;
(ii) Confess a judgment against the Company in an amount in excess of
$500,000;
(iii) Issue Units at a purchase price of less than $5,000 per Unit;
(iv) Issue more than an aggregate of 7,000 Units; and
(v) Cause the Company to acquire any equity or debt securities of
any Director or any of its Affiliates, or otherwise make loans
to any Director or any of its Affiliates.
The actions specified herein as requiring the consent of the Members shall be in
addition to any actions by the Directors that are specified in the Act as
requiring the consent or approval of the Members. Any such required consent or
approval may be given by the number of votes necessary to constitute Member
action pursuant to Section 6.10 herein.
5.8 Director Meetings and Notice. Meetings of the Directors shall be held at
such times and places as shall from time to time be determined by the Directors.
Meetings of the Directors may also be called by the Chairman of the Company or
by any two or more Directors. If the date, time, and place of a meeting of the
Directors has been announced at a previous meeting, no notice shall be required.
In all other cases, five (5) days' written notice of meetings, stating the date,
time, and place thereof and any other information required by law or desired by
the Person(s) calling such meeting, shall be given to each Director. Any
Director may waive notice of any meeting. A waiver of notice by a Director is
effective whether given before, at, or after
19
the meeting, and whether given orally, in writing, or by attendance. The
attendance of a Director at any meeting shall constitute a waiver of notice of
such meeting, unless such Director objects at the beginning of the meeting to
the transaction of business on the grounds that the meeting is now lawfully
called or convened and does not participate thereafter in the meeting.
5.9 Action Without a Meeting. Any action required or permitted to be taken by
the Directors may also be taken by a written action signed by a super majority
of seventy-five percent (75%) of all Directors authorized to vote on the matter
as provided by this Agreement, provided that a copy of such written action shall
be promptly given to all such Directors. The Directors may participate in any
meeting of the Directors by means of telephone conference or similar means of
communication by which all persons participating in the meeting can
simultaneously hear each other.
5.10 Quorum; Manner of Acting. Not less than fifty percent (50%) of the
Directors of each class of Directors authorized to vote on a matter as provided
by this Agreement shall constitute a quorum for the transaction of business at
any Directors' meeting. Each Director shall have one (1) vote at meetings of the
Directors. The Directors shall take action by the vote of a majority of the
number of Directors constituting a quorum as provided by this Agreement.
5.11 Voting; Potential Financial Interest. No Director shall be disqualified
from voting on any matter to be determined or decided by the Directors solely by
reason of such Director's (or his/her Affiliate's) potential financial interest
in the outcome of such vote, provided that the nature of such Director's (or
his/her Affiliate's) potential financial interest was reasonably disclosed to
the Board of Directors on behalf of the Company at the time of such vote.
5.12 Duties and Obligations of Directors. The Directors shall cause the Company
to conduct its business and operations separate and apart from that of any
Director or any of its Affiliates. The Directors shall take all actions which
may be necessary or appropriate (i) for the continuation of the Company's valid
existence as a limited liability company under the laws of the State of Nebraska
and each other jurisdiction in which such existence is necessary to protect the
limited liability of Members or to enable the Company to conduct the business in
which it is engaged, and (ii) for the accomplishment of the Company's purposes,
including the acquisition, development, maintenance, preservation, and operation
of Company Property in accordance with the provisions of this Agreement and
applicable laws and regulations. Each Director shall have the duty to discharge
the foregoing duties in good faith, in a manner the Director believes to be in
the best interests of the Company, and with the care an ordinarily prudent
person in a like position would exercise under similar circumstances. The
Directors shall be under no other fiduciary duty to the Company or the Members
to conduct the affairs of the Company in a particular manner.
5.13 Chairman and Vice Chairman. Unless provided otherwise by a resolution
adopted by the Directors, the Chairman shall preside at meetings of the Members
and the Directors; shall see that all orders and resolutions of the Directors
are carried into effect; may maintain records of and certify proceedings of the
Directors and Members; and shall perform such other duties as may from time to
time be prescribed by the Directors. The Vice Chairman shall, in the absence or
disability of the Chairman, perform the duties and exercise the powers of the
Chairman and
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shall perform such other duties as the Directors or the Chairman may from time
to time prescribe. The Directors may designate more than one Vice Chairmen, in
which case the Vice Chairmen shall be designated by the Directors so as to
denote which is most senior in office.
5.14 President and Chief Executive Officer. Until provided otherwise by a
resolution of the Directors, the Chairman shall also act as the interim
President and CEO of the Company (herein referred to as the "President"; the
titles of President and CEO shall constitute a reference to one and the same
office and Officer of the Company), and the Chairman may exercise the duties of
the office of Chairman using any such designations. The Directors shall appoint
someone other than the Chairman as the President of the Company not later than
the commencement of operations of the Facilities, and such President shall
perform such duties as the Directors may from time to time prescribe, including
without limitation, the management of the day-to-day operations of the
Facilities.
5.15 Chief Financial Officer. Unless provided otherwise by a resolution adopted
by the Directors, the Chief Financial Officer of the Company shall be the
Treasurer of the Company and shall keep accurate financial records for the
Company; shall deposit all monies, drafts, and checks in the name of and to the
credit of the Company in such banks and depositories as the Directors shall
designate from time to time; shall endorse for deposit all notes, checks, and
drafts received by the Company as ordered by the Directors, making proper
vouchers therefore; shall disburse Company funds and issue checks and drafts in
the name of the Company as ordered by the Directors, shall render to the
President and the Directors, whenever requested, an account of all such
transactions as Chief Financial Officer and of the financial condition of the
Company, and shall perform such other duties as may be prescribed by the
Directors or the President from time to time.
5.16 Secretary; Assistant Secretary. The Secretary shall attend all meetings of
the Directors and of the Members and shall maintain records of, and whenever
necessary, certify all proceedings of the Directors and of the Members. The
Secretary shall keep the required records of the Company, when so directed by
the Directors or other person or person authorized to call such meetings, shall
give or cause to be given notice of meetings of the Members and of meetings of
the Directors, and shall also perform such other duties and have such other
powers as the Chairman or the Directors may prescribe from time to time. An
Assistant Secretary, if any, shall perform the duties of the Secretary during
the absence or disability of the Secretary.
5.17 Vice President. The Company may have one or more Vice Presidents. If more
than one, the Directors shall designate which is most senior. The most senior
Vice President shall perform the duties of the President in the absence of the
President.
5.18 Delegation. By written resolution approved by the Directors, the President,
Chief Financial Officer, Vice President and Secretary (individually, an
"Officer" and collectively, "Officers") may delegate in writing some or all of
the duties and powers of such Officer's management position to other Persons. An
Officer who delegates the duties or powers of an office remains subject to the
standard of conduct for such Officer with respect to the discharge of all duties
and powers so delegated.
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5.19 Execution of Instruments. All deeds, mortgages, bonds, checks, contracts
and other instruments pertaining to the business and affairs of the Company
shall be signed on behalf of the Company by (i) the Chairman; or (ii) when
authorized by resolutions(s) of the Directors, the President; or (iii) by such
other person or persons as may be designated from time to time by the Directors.
5.20 Limitation of Liability; Indemnification of Directors. To the maximum
extent permitted under the Act and other applicable law, no Member, Director or
Officer of this Company shall be personally liable for any debt, obligation or
liability of this Company merely by reason of being a Member, Director, Officer
or all of the foregoing. No Director or Officer of this Company shall be
personally liable to this Company or its Members for monetary damages for a
breach of fiduciary duty by such Director or Officer; provided that this
provision shall not eliminate or limit the liability of a Director or Officer
for any of the following: (i) for any breach of the duty of loyalty to the
Company or its Members; (ii) for acts or omissions not in good faith or which
involve intentional misconduct or knowing violation of law; or (iii) for a
transaction from which the Director or Officer derived an improper personal
benefit or a wrongful distribution in violation of the Act. To the maximum
extent permitted under the Act and other applicable law, the Company, its
receiver, or its trustee (in the case of its receiver or trustee, to the extent
of Company Property) shall indemnify, save and hold harmless, and pay all
judgments and claims against each Director or Officer relating to any liability
or damage incurred by reason of any act performed or omitted to be performed by
such Director, or Officer, in connection with the business of the Company,
including reasonable attorneys' fees incurred by such Director in connection
with the defense of any action based on any such act or omission, which
attorneys' fees may be paid as incurred, including all such liabilities under
federal and state securities laws as permitted by law. To the maximum extent
permitted under the Act and other applicable law, in the event of any action by
a Unit Holder against any Director or Officer, including a derivative suit, the
Company shall indemnify, save harmless, and pay all costs, liabilities, damages
and expenses of such Director or Officer, including reasonable attorneys' fees
incurred in the defense of such action. Notwithstanding the foregoing
provisions, no Director or Officer shall be indemnified by the Company to the
extent prohibited or limited (but only to the extent limited) by the Act. The
Company may purchase and maintain insurance on behalf of any Person in such
Person's official capacity against any liability asserted against and incurred
by such Person in or arising from that capacity, whether or not the Company
would otherwise be required to indemnify the Person against the liability.
5.21 Compensation; Expenses of Directors. No Member or Director shall receive
any salary, fee, or draw for services rendered to or on behalf of the Company
merely by virtue of their status as a Member or Director, it being the intention
that, irrespective of any personal interest of any of the Directors, the
Directors shall have authority to establish reasonable compensation of all
Directors for services to the Company as Directors, Officers, or otherwise.
Except as otherwise approved by or pursuant to a policy approved by the
Directors, no Member or Director shall be reimbursed for any expenses incurred
by such Member of Director on behalf of the Company. Notwithstanding the
foregoing, by resolution by the Directors, the Directors may be paid as
reimbursement therefor, their expenses, if any, of attendance at each meeting of
the Directors. In addition, the Directors, by resolution, may approve from time
to time, the salaries and other compensation packages of the Officers of the
Company.
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5.22 Loans. Any Member or Affiliate may, with the consent of the Directors, lend
or advance money to the Company. If any Member or Affiliate shall make any loan
or loans to the Company or advance money on its behalf, the amount of any such
loan or advance shall not be treated as a contribution to the capital of the
Company but shall be a debt due from the Company. The amount of any such loan or
advance by a lending Member or Affiliate shall be repayable out of the Company's
cash and shall bear interest at a rate not in excess of the prime rate
established, from time to time, by any major bank selected by the Directors for
loans to its most creditworthy commercial borrowers, plus four percent (4%) per
annum. If a Director, or any Affiliate of a Director, is the lending Member, the
rate of interest and the terms and conditions of such loan shall be no less
favorable to the Company than if the lender had been an independent third party.
None of the Members or their Affiliates shall be obligated to make any loan or
advance to the Company.
SECTION 6. ROLE OF MEMBERS
6.1 One Membership Class. There shall initially be one class of Membership
Interests and one class of Units.
6.2 Members. Each Person who desires to become a Member must complete and
execute a signature page to this Agreement in the form of Exhibit "C" attached
hereto and such other documents as may be required by the Directors. Each
prospective Member must be approved and admitted to the Company by the Board of
Directors. The Membership Interests of the Members shall be set forth on the
Membership Register as maintained by the Company at its principal office and by
this reference is incorporated herein.
6.3 Additional Members. No Person shall become a Member without the approval of
the Directors. The Directors may refuse to admit any Person as a Member in their
sole discretion. Any such admission must comply with the requirements described
in this Agreement and will be effective only after such Person has executed and
delivered to the Company such documentation as determined by the Directors to be
necessary and appropriate to effect such admission including the Member's
agreement to be bound by this Agreement. Upon the admission of a Member the
Directors shall cause the Membership Register to be appropriately amended. Such
amendments shall not be considered amendments pursuant to Section 8.1 of this
Agreement and will not require Member action for purposes of Section 8.1.
6.4 Rights or Powers. Except as otherwise expressly provided for in this
Agreement, the Members shall not have any right or power to take part in the
management or control of the Company or its business and affairs or to act for
or bind the Company in any way.
6.5 Voting Rights of Members. The Members shall have voting rights as defined by
the Membership Voting Interest of such Member and in accordance with the
provisions of this Agreement. Members do not have a right to cumulate their
votes for any matter entitled to a vote of the Members, including election of
Directors.
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6.6 Member Meetings. Meetings of the Members shall be called by the Directors,
and shall be held at the principal office of the Company or at such other place
as shall be designated by the person calling the meeting. Members representing
an aggregate of not less than thirty percent (30%) of the Membership Voting
Interests may also in writing demand that the Directors call a meeting of the
Members. Regular meetings of the Members shall be held not less than once per
Fiscal Year.
6.7 Conduct of Meetings. Subject to the discretion of the Directors, the Members
may participate in any meeting of the Members by means of telephone conference
or similar means of communication by which all persons participating in the
meeting can simultaneously hear and speak with each other.
6.8 Notice of Meetings; Waiver. Notice of the meeting, stating the place, day
and hour of the meeting, shall be given to each Member in accordance with
Section 11.1 hereof at least five (5) days and no more than sixty (60) days
before the day on which the meeting is to be held. A Member may waive the notice
of meeting required hereunder by written notice of waiver signed by the Member
whether given before, during or after the meeting. Attendance by a Member at a
meeting is waiver of notice of that meeting, unless the Member objects at the
beginning of the meeting to the transaction of business because the meeting is
not lawfully called or convened and thereafter does not participate in the
meeting.
6.9 Quorum and Proxies. The presence (in person or by proxy or mail ballot) of
Members representing an aggregate of at least twenty-five percent (25%) of the
Membership Voting Interests is required for the transaction of business at a
meeting of the Members. Voting by proxy or by mail ballot shall be permitted on
any matter if authorized by the Directors.
6.10 Voting; Action by Members. If a quorum is present, the affirmative vote of
a majority of the Membership Voting Interests represented at a meeting of the
Members (in person, by proxy, or by mail ballot) and entitled to vote on the
matter shall constitute the act of the Members, unless the vote of a greater or
lesser proportion or numbers is otherwise required by this Agreement.
6.11 Record Date. For the purpose of determining Members entitled to notice of
or to vote at any meeting of Members or any adjournment of the meeting, or
Members entitled to receive payment of any distribution, or to make a
determination of Members for any other purpose, the date on which notice of the
meeting is mailed (or otherwise delivered) or the date on which the resolution
declaring the distribution is adopted, as the case may be, shall be the record
date for determination of Members.
6.12 Termination of Membership. The membership of a Member in the Company shall
terminate upon the occurrence of events described in the Act, including
resignation and withdrawal. If for any reason the membership of a Member is
terminated, the Member whose membership has terminated loses all Membership
Voting Interests and shall be considered merely as Assignee of the Membership
Economic Interest owned before the termination of membership, having only the
rights of an unadmitted Assignee provided for in Section 9.7 hereof.
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6.13 Continuation of the Company. The Company shall not be dissolved upon the
occurrence of any event that is deemed to terminate the continued membership of
a Member. The Company's affairs shall not be required to be wound up. The
Company shall continue without dissolution.
6.14 No Obligation to Purchase Membership Interest. No Member whose membership
in the Company terminates, nor any transferee of such Member, shall have any
right to demand or receive a return of such terminated Member's Capital
Contributions or to require the purchase or redemption of the Member's
Membership Interest. The other Members and the Company shall not have any
obligation to purchase or redeem the Membership Interest of any such terminated
Member or transferee of any such terminated Member.
6.15 Waiver of Dissenters Rights. Each Member hereby disclaims, waives and
agrees, to the fullest extent permitted by law or the Act, not to assert
dissenters' or similar rights under the Act.
6.16 Limitation on Ownership. Notwithstanding any other provision herein, no
Member shall directly or indirectly own or control more than forty percent (40%)
of the issued and outstanding Units at any time. Units under indirect ownership
or control by a Member shall include Units owned or controlled by such Member's
Related Parties, Subsidiaries and Affiliates.
SECTION 7. ACCOUNTING, BOOKS AND RECORDS
7.1 Accounting, Books and Records. The books and records of the Company shall be
kept, and the financial position and the results of its operations recorded, in
accordance with GAAP. The books and records shall reflect all the Company
transactions and shall be appropriate and adequate for the Company's business.
The Company shall maintain at its principal office all of the following: (i) A
current list of the full name and last known business or residence address of
each Member and Assignee set forth in alphabetical order, together with the
Capital Contributions, Capital Account and Units of each Member and Assignee;
(ii) The full name and business address of each Director; (iii) A copy of the
Articles and any and all amendments thereto together with executed copies of any
powers of attorney pursuant to which the Articles or any amendments thereto have
been executed; (iv) Copies of the Company's federal, state, and local income tax
or information returns and reports, if any, for the six most recent taxable
years; (v) A copy of this Agreement and any and all amendments thereto together
with executed copies of any powers of attorney pursuant to which this Agreement
or any amendments thereto have been executed; and (vi) Copies of the financial
statements of the Company, if any, for the six most recent Fiscal Years. The
Company shall use the accrual method of accounting in preparation of its
financial reports and for tax purposes and shall keep its books and records
accordingly.
7.2 Delivery to Members and Inspection. Any Member or its designated
representative shall have reasonable access during normal business hours to the
information and documents kept by the Company pursuant to Section 7.1. The
rights granted to a Member pursuant to this Section 7.2 are expressly subject to
compliance by such Member with the safety, security and confidentiality
procedures and guidelines of the Company, as such procedures and guidelines may
be established from time to time. Upon the request of any Member for purposes
reasonably
25
related to the interest of that Person as a Member, the Directors shall promptly
deliver to the requesting Member, at the expense of the requesting Member, a
copy of the information required to be maintained under Section 7.1. Each Member
has the right, upon reasonable request for purposes reasonably related to the
interest of the Person as a Member and for proper purposes, to: (i) inspect and
copy during normal business hours any of the Company records described in
Section 7.1; and (ii) obtain from the Directors, promptly after their becoming
available, a copy of the Company's federal, state, and local income tax or
information returns for each Fiscal Year. Each Assignee shall have the right to
information regarding the Company only to the extent required by the Act.
7.3 Reports. The chief financial officer of the Company shall be responsible for
causing the preparation of financial reports of the Company and the coordination
of financial matters of the Company with the Company's accountants. The Company
shall cause to be delivered to each Member the financial statements listed
below, prepared, in each case (other than with respect to Member's Capital
Accounts, which shall be prepared in accordance with this Agreement) in
accordance with GAAP consistently applied. As soon as practicable following the
end of each Fiscal Year (and in any event not later than one hundred and twenty
(120) days after the end of such Fiscal Year) and at such time as distributions
are made to the Unit Holders pursuant to Section 10 hereof following the
occurrence of a Dissolution Event, a balance sheet of the Company as of the end
of such Fiscal Year and the related statements of operations, Unit Holders'
Capital Accounts and changes therein, and cash flows for such Fiscal Year,
together with appropriate notes to such financial statements and supporting
schedules, all of which shall be audited and certified by the Company's
accountants, and in each case, to the extent the Company was in existence,
setting forth in comparative form the corresponding figures for the immediately
preceding Fiscal Year end (in the case of the balance sheet) and the two (2)
immediately preceding Fiscal Years (in the case of the statements).
7.4 Tax Matters. The Directors shall, without any further consent of the Unit
Holders being required (except as specifically required herein), make any and
all elections for federal, state, local, and foreign tax purposes as the
Directors shall determine appropriate and represent the Company and the Unit
Holders before taxing authorities or courts of competent jurisdiction in tax
matters affecting the Company or the Unit Holders in their capacities as Unit
Holders, and to file any tax returns and execute any agreements or other
documents relating to or affecting such tax matters, including agreements or
other documents that bind the Unit Holders with respect to such tax matters or
otherwise affect the rights of the Company and the Unit Holders. The Directors
shall designate a Person to be specifically authorized to act as the "Tax
Matters Member" under the Code and in any similar capacity under state or local
law; provided, however, that the Directors shall have the authority to
designate, remove and replace the Tax Matters Member who shall act as the tax
matters partner within the meaning of and pursuant to Regulations Sections
301.6231(a)(7)-1 and -2 or any similar provision under state or local law.
Necessary tax information shall be delivered to each Unit Holder as soon as
practicable after the end of each Fiscal Year of the Company but not later than
three (3) months after the end of each Fiscal Year.
26
SECTION 8. AMENDMENTS
8.1 Amendments. Amendments to this Agreement may be proposed by the Board of
Directors or any Member. Following such proposal, the Board of Directors shall
submit to the Members a verbatim statement of any proposed amendment, providing
that counsel for the Company shall have approved of the same in writing as to
form, and the Board of Directors shall include in any such submission a
recommendation as to the proposed amendment. The Board of Directors shall seek
the written vote of the Members on the proposed amendment or shall call a
meeting to vote thereon and to transact any other business that it may deem
appropriate. Except as otherwise provided under this Agreement, a proposed
amendment shall be adopted and be effective as an amendment hereto only if
approved by the number of votes necessary to constitute Member action as
provided in Section 6.10 herein. Notwithstanding any provision of this Section
8.1 to the contrary, this Agreement shall not be amended without the consent of
each Member adversely affected if such amendment would modify the limited
liability of a Member, or alter the Membership Economic Interest of a Member.
SECTION 9. TRANSFERS
9.1 Restrictions on Transfers. Except as otherwise permitted by this Agreement,
no Member shall Transfer all or any portion of its Units. In the event that any
Member pledges or otherwise encumbers all or any part of its Units as security
for the payment of a Debt, any such pledge or hypothecation shall be made
pursuant to a pledge or hypothecation agreement that requires the pledgee or
secured party to be bound by all of the terms and conditions of this Section 9.
In the event such pledgee or secured party becomes the Unit Holder hereunder
pursuant to the exercise of such party's rights under such pledge or
hypothecation agreement, such pledgee or secured party shall be bound by all
terms and conditions of this Operating Agreement and all other agreements
governing the rights and obligations of Unit Holders. In such case, such pledgee
or secured party, and any transferee or purchaser of the Units held by such
pledgee or secured party, shall not have any Membership Voting Interest attached
to such Units unless and until the Directors have approved in writing and
admitted as a Member hereunder, such pledgee, secured party, transferee or
purchaser of such Units.
9.2 Permitted Transfers. Subject to the conditions and restrictions set forth in
this Section 9, a Unit Holder may:
(a) at any time Transfer all or any portion of its Units:
(i) to the transferor's administrator or trustee to whom such Units
are transferred involuntarily by operation of law or judicial
decree, or;
(ii) without consideration to or in trust for descendants or the
spouse of a Member; and
(b) at any time following the date on which substantial operations of the
Facilities commences, Transfer all or any portion of its Units:
(i) to any Person approved by the Directors in writing,
27
(ii) to any other Member or to any Affiliate or Related Party of
another Member; or
(iii) to any Affiliate or Related Party of the transferor.
Any such Transfer set forth in this Section 9.2 and meeting the conditions set
forth in Section 9.3 below is referred to in this Agreement as a "Permitted
Transfer."
9.3 Conditions Precedent to Transfers. In addition to the conditions set forth
above, no Transfer of a Membership Interest shall be effective unless and until
all of the following conditions have been satisfied:
(a) Except in the case of a Transfer involuntarily by operation of law, the
transferor and transferee shall execute and deliver to the Company such
documents and instruments of Transfer as may be necessary or appropriate in the
opinion of counsel to the Company to effect such Transfer. In the case of a
Transfer of Units involuntarily by operation of law, the Transfer shall be
confirmed by presentation to the Company of legal evidence of such Transfer, in
form and substance satisfactory to counsel to the Company. In all cases, the
transferor and/or transferee shall pay all reasonable costs and expenses
connected with the Transfer and the admission of the Transferee as a Member and
incurred as a result of such Transfer, including but not limited to, legal fees
and costs.
(b) The transferor and transferee shall furnish the Company with the
transferee's taxpayer identification number, sufficient information to determine
the transferee's initial tax basis in the Units transferred, and any other
information reasonably necessary to permit the Company to file all required
federal and state tax returns and other legally required information statements
or returns. Without limiting the generality of the foregoing, the Company shall
not be required to make any distribution otherwise provided for in this
Agreement with respect to any transferred Units until it has received such
information.
(c) Except in the case of a Transfer of any Units involuntarily by
operation of law, either (i) such Units shall be registered under the Securities
Act, and any applicable state securities laws, or (ii) the transferor shall
provide an opinion of counsel, which opinion and counsel shall be reasonably
satisfactory to the Directors, to the effect that such Transfer is exempt from
all applicable registration requirements and that such Transfer will not violate
any applicable laws regulating the Transfer of securities.
(d) Except in the case of a Transfer of Units involuntarily by operation of
law, the transferor shall provide an opinion of counsel, which opinion and
counsel shall be reasonably satisfactory to the Directors, to the effect that
such Transfer will not cause the Company to be deemed to be an "investment
company" under the Investment Company Act of 1940.
(e) Unless otherwise approved by the Directors and Members representing in
the aggregate a 75% super majority of the Membership Voting Interests, no
Transfer of Units shall be made except upon terms which would not, in the
opinion of counsel chosen by and mutually acceptable to the Directors and the
transferor Member, result in the termination of the Company within the meaning
of Section 708 of the Code or cause the application of the rules of Sections
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168(g)(1)(B) and 168(h) of the Code or similar rules to apply to the Company. If
the immediate Transfer of such Unit would, in the opinion of such counsel, cause
a termination within the meaning of Section 708 of the Code, then if, in the
opinion of such counsel, the following action would not precipitate such
termination, the transferor Member shall be entitled to (or required, as the
case may be) (i) immediately Transfer only that portion of its Units as may, in
the opinion of such counsel, be transferred without causing such a termination
and (ii) enter into an agreement to Transfer the remainder of its Units, in one
or more Transfers, at the earliest date or dates on which such Transfer or
Transfers may be effected without causing such termination. The purchase price
for the Units shall be allocated between the immediate Transfer and the deferred
Transfer or Transfers pro rata on the basis of the percentage of the aggregate
Units being transferred, each portion to be payable when the respective Transfer
is consummated, unless otherwise agreed by the parties to the Transfer. In the
case of a Transfer by one Member to another Member, the deferred purchase price
shall be deposited in an interest-bearing escrow account unless another method
of securing the payment thereof is agreed upon by the transferor Member and the
transferee Member(s).
(f) No notice or request initiating the procedures contemplated by Section
9.3 may be given by any Member after a Dissolution Event has occurred. No Member
may sell all or any portion of its Units after a Dissolution Event has occurred.
(g) No Person shall Transfer any Unit if, in the determination of the
Directors, such Transfer would cause the Company to be treated as a "publicly
traded partnership" within the meaning of Section 7704(b) of the Code.
The Directors shall have the authority to waive any legal opinion or other
condition required in this Section 9.3 other than the Member approval
requirement set forth in Section 9.3(e).
9.4 Prohibited Transfers. Any purported Transfer of Units that is not permitted
under this Section shall be null and void and of no force or effect whatsoever;
provided that, if the Company is required to recognize such a Transfer (or if
the Directors, in their sole discretion, elect to recognize such a Transfer),
the Units Transferred shall be strictly limited to the transferor's Membership
Economic Interests as provided by this Agreement with respect to the transferred
Units, which Membership Economic Interests may be applied (without limiting any
other legal or equitable rights of the Company) to satisfy any debts,
obligations, or liabilities for damages that the transferor or transferee of
such Interest may have to the Company. In the case of a Transfer or attempted
Transfer of Units that is not permitted under this Section, the parties engaging
or attempting to engage in such Transfer shall be liable to indemnify and hold
harmless the Company and the other Members from all cost, liability, and damage
that any of such indemnified Members may incur (including, without limitation,
incremental tax liabilities, lawyers' fees and expenses) as a result of such
Transfer or attempted Transfer and efforts to enforce the indemnity granted
hereby.
9.5 No Dissolution or Termination. The transfer of a Membership Interest
pursuant to the terms of this Article shall not dissolve or terminate the
Company. No Member shall have the right to have the Company dissolved or to have
such Member's Capital Contribution returned except as provided in this
Agreement.
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9.6 Prohibition of Assignment. Notwithstanding the foregoing provisions of this
Article, Transfer of a Membership Interest may not be made if the Membership
Interest sought to be sold, exchanged or transferred, when added to the total of
all other Membership Interests sold, exchanged or transferred within the period
of twelve (12) consecutive months prior thereto, would result in the termination
of the Company under Section 708 of the Internal Revenue Code. In the event of a
transfer of any Membership Interests, the Members will determine, in their sole
discretion, whether or not the Company will elect pursuant to Section 754 of the
Internal Revenue Code (or corresponding provisions of future law) to adjust the
basis of the assets of the Company.
9.7 Rights of Unadmitted Assignees. A Person who acquires Units but who is not
admitted as a substituted Member pursuant to Section 9.8 hereof shall be
entitled only to the Membership Economic Interests with respect to such Units in
accordance with this Agreement, and shall not be entitled to the Membership
Voting Interest with respect to such Units. In addition, such Person shall have
no right to any information or accounting of the affairs of the Company, shall
not be entitled to inspect the books or records of the Company, and shall not
have any of the rights of a Member under the Act or this Agreement.
9.8 Admission of Substituted Members. As to Permitted Transfers, a transferee of
Units shall be admitted as a substitute Member provided that such transferee has
complied with the following provisions: (a) The transferee of Units shall, by
written instrument in form and substance reasonably satisfactory to the
Directors; (i) accept and adopt the terms and provisions of this Agreement,
including this Section 9, and (ii) assume the obligations of the transferor
Member under this Agreement with respect to the transferred Units. The
transferor Member shall be released from all such assumed obligations except (x)
those obligations or liabilities of the transferor Member arising out of a
breach of this Agreement, (y) in the case of a Transfer to any Person other than
a Member or any of its Affiliates, those obligations or liabilities of the
transferor Member based on events occurring, arising or maturing prior to the
date of Transfer, and (z) in the case of a Transfer to any of its Affiliates,
any Capital Contribution or other financing obligation of the transferor Member
under this Agreement; (b) The transferee pays or reimburses the Company for all
reasonable legal, filing, and publication costs that the Company incurs in
connection with the admission of the transferee as a Member with respect to the
Transferred Units; and (c) Except in the case of a Transfer involuntarily by
operation of law, if required by the Directors, the transferee (other than a
transferee that was a Member prior to the Transfer) shall deliver to the Company
evidence of the authority of such Person to become a Member and to be bound by
all of the terms and conditions of this Agreement, and the transferee and
transferor shall each execute and deliver such other instruments as the
Directors reasonably deem necessary or appropriate to effect, and as a condition
to, such Transfer.
9.9 Representations Regarding Transfers.
(a) Each Member hereby covenants and agrees with the Company for the
benefit of the Company and all Members, that (i) it is not currently making a
market in Units and will not in the future make a market in Units, (ii) it will
not Transfer its Units on an established securities market, a secondary market
(or the substantial equivalent thereof) within the meaning of Code
30
Section 7704(b) (and any Regulations, proposed Regulations, revenue rulings, or
other official pronouncements of the Internal Revenue Service or Treasury
Department that may be promulgated or published thereunder), and (iii) in the
event such Regulations, revenue rulings, or other pronouncements treat any or
all arrangements which facilitate the selling of Company interests and which are
commonly referred to as "matching services" as being a secondary market or
substantial equivalent thereof, it will not Transfer any Units through a
matching service that is not approved in advance by the Company. Each Member
further agrees that it will not Transfer any Units to any Person unless such
Person agrees to be bound by this Section 9 and to Transfer such Units only to
Persons who agree to be similarly bound.
(b) Each Member hereby represents and warrants to the Company and the
Members that such Member's acquisition of Units hereunder is made as principal
for such Member's own account and not for resale or distribution of such Units.
Each Member further hereby agrees that the following legend, as the same may be
amended by the Directors in their sole discretion, may be placed upon any
counterpart of this Agreement, the Articles, or any other document or instrument
evidencing ownership of Units:
THE TRANSFERABILITY OF THE COMPANY UNITS REPRESENTED BY THIS DOCUMENT IS
RESTRICTED. SUCH UNITS MAY NOT BE SOLD, ASSIGNED, OR TRANSFERRED, NOR WILL ANY
ASSIGNEE, VENDEE, TRANSFEREE, OR ENDORSEE THEREOF BE RECOGNIZED AS HAVING
ACQUIRED ANY SUCH UNITS FOR ANY PURPOSES, UNLESS AND TO THE EXTENT SUCH SALE,
TRANSFER, HYPOTHECATION, OR ASSIGNMENT IS PERMITTED BY, AND IS COMPLETED IN
STRICT ACCORDANCE WITH, THE TERMS AND CONDITIONS SET FORTH IN THE AMENDED AND
RESTATED OPERATING AGREEMENT AND AGREED TO BY EACH MEMBER.
THE UNITS REPRESENTED BY THIS CERTIFICATE MAY NOT BE SOLD, OFFERED FOR SALE, OR
TRANSFERRED IN ABSENCE OF AN EFFECTIVE REGISTRATION UNDER THE SECURITIES ACT OF
1933, AS AMENDED, AND UNDER APPLICABLE STATE SECURITIES LAWS.
9.10 Distribution and Allocations in Respect of Transferred Units. If any Units
are Transferred during any Fiscal Year in compliance with the provisions of this
Section 9, Profits, Losses, each item thereof, and all other items attributable
to the Transferred Units for such Fiscal Year shall be divided and allocated
between the transferor and the transferee by taking into account their varying
interests during the Fiscal Year in accordance with Code Section 706(d), using
any conventions permitted by law and selected by the Directors. All
distributions on or before the date of such Transfer shall be made to the
transferor, and all distributions thereafter shall be made to the transferee.
Solely for purposes of making such allocations and distributions, the Company
shall recognize such Transfer to be effective as of the first day of the month
following the month in which all documents to effectuate the transfer have been
executed and delivered to the Company, provided that, if the Company does not
receive a notice stating the date such Units were transferred and such other
information as the Directors may reasonably require within thirty (30) days
after the end of the Fiscal Year during which the Transfer occurs, then all such
items shall be allocated, and all distributions shall be made, to the Person
who,
31
according to the books and records of the Company, was the owner of the Units on
the last day of such Fiscal Year. Neither the Company nor any Member shall incur
any liability for making allocations and distributions in accordance with the
provisions of this Section 9.10, whether or not the Directors or the Company has
knowledge of any Transfer of ownership of any Units.
9.11 Additional Members. Additional Members may be admitted from time to time
upon the approval of the Directors. Any such additional Member shall pay such
purchase price for his/her/its Membership Interest and shall be admitted in
accordance with such terms and conditions, as the Directors shall approve. All
Members acknowledge that the admission of additional Members may result in
dilution of a Member's Membership Interest. Prior to the admission of any Person
as a Member, such Person shall agree to be bound by the provisions of this
Agreement and shall sign and deliver an Addendum to this Agreement in the form
of Exhibit C, attached hereto. Upon execution of such Addendum, such additional
Members shall be deemed to be parties to this Agreement as if they had executed
this Agreement on the original date hereof, and, along with the parties to this
Agreement, shall be bound by all the provisions hereof from and after the date
of execution hereof. The Members hereby designate and appoint the Directors to
accept such additional Members and to sign on their behalf any Addendum in the
form of Exhibit C, attached hereto.
SECTION 10. DISSOLUTION AND WINDING UP
10.1 Dissolution. The Company shall dissolve and shall commence winding up and
liquidating upon the first to occur of any of the following (each a "DISSOLUTION
EVENT"): (i) The affirmative vote of a 75% super majority in interest of the
Membership Voting Interests to dissolve, wind up, and liquidate the Company; or
(ii) The entry of a decree of judicial dissolution pursuant to the Act. The
Members hereby agree that, notwithstanding any provision of the Act, the Company
shall not dissolve prior to the occurrence of a Dissolution Event.
10.2 Winding Up. Upon the occurrence of a Dissolution Event, the Company shall
continue solely for the purposes of winding up its affairs in an orderly manner,
liquidating its assets, and satisfying the claims of its creditors and Members,
and no Member shall take any action that is inconsistent with, or not necessary
to or appropriate for, the winding up of the Company's business and affairs,
PROVIDED that all covenants contained in this Agreement and obligations provided
for in this Agreement shall continue to be fully binding upon the Members until
such time as the Property has been distributed pursuant to this Section 10.2 and
the Articles have been canceled pursuant to the Act. The Liquidator shall be
responsible for overseeing the prompt and orderly winding up and dissolution of
the Company. The Liquidator shall take full account of the Company's liabilities
and Property and shall cause the Property or the proceeds from the sale thereof
(as determined pursuant to Section 10.8 hereof), to the extent sufficient
therefor, to be applied and distributed, to the maximum extent permitted by law,
in the following order: (a) First, to creditors (including Members and Directors
who are creditors, to the extent otherwise permitted by law) in satisfaction of
all of the Company's Debts and other liabilities (whether by payment or the
making of reasonable provision for payment thereof), other than liabilities for
which reasonable provision for payment has been made; and (b) Second, except as
provided in this Agreement, to Members in satisfaction of liabilities for
distributions pursuant to the Act; (c) Third, the balance, if any, to the Unit
Holders in accordance with the positive balance in their
32
Capital Accounts calculated after making the required adjustment set forth in
clause (t) of the definition of Gross Asset Value in Section 1.10 of this
Agreement, after giving effect to all contributions, distributions and
allocations for all periods.
10.3 Compliance with Certain Requirements of Regulations; Deficit Capital
Accounts. In the event the Company is "liquidated" within the meaning of
Regulations Section 1.704-1(b)(2)(ii)(g), (a) distributions shall be made
pursuant to this Section 10 to the Unit Holders who have positive Capital
Accounts in compliance with Regulations Section 1.704-1(b)(2)(ii)(b)(2). If any
Unit Holder has a deficit balance in his Capital Account (after giving effect to
all contributions, distributions and allocations for all Fiscal Years, including
the Fiscal Year during which such liquidation occurs), such Unit Holder shall
have no obligation to make any contribution to the capital of the Company with
respect to such deficit, and such deficit shall not be considered a debt owed to
the Company or to any other Person for any purpose whatsoever. In the discretion
of the Liquidator, a pro rata portion of the distributions that would otherwise
be made to the Unit Holders pursuant to this Section 10 may be: (a) Distributed
to a trust established for the benefit of the Unit Holders for the purposes of
liquidating Company assets, collecting amounts owed to the Company, and paying
any contingent or unforeseen liabilities or obligations of the Company. The
assets of any such trust shall be distributed to the Unit Holders from time to
time, in the reasonable discretion of the Liquidator, in the same proportions as
the amount distributed to such trust by the Company would otherwise have been
distributed to the Unit Holders pursuant to Section 10.2 hereof; or (b) Withheld
to provide a reasonable reserve for Company liabilities (contingent or
otherwise) and to reflect the unrealized portion of any installment obligations
owed to the Company, provided that such withheld amounts shall be distributed to
the Unit Holders as soon as practicable.
10.4 Deemed Distribution and Recontribution. Notwithstanding any other provision
of this Section 10, in the event the Company is liquidated within the meaning of
Regulations Section 1.704-1(b)(2)(ii)(g) but no Dissolution Event has occurred,
the Property shall not be liquidated, the Company's Debts and other liabilities
shall not be paid or discharged, and the Company's affairs shall not be wound
up.
10.5 Rights of Unit Holders. Except as otherwise provided in this Agreement,
each Unit Holder shall look solely to the Property of the Company for the return
of its Capital Contribution and has no right or power to demand or receive
Property other than cash from the Company. If the assets of the Company
remaining after payment or discharge of the debts or liabilities of the Company
are insufficient to return such Capital Contribution, the Unit Holders shall
have no recourse against the Company or any other Unit Holder or Directors.
10.6 Allocations During Period of Liquidation. During the period commencing on
the first day of the Fiscal Year during which a Dissolution Event occurs and
ending on the date on which all of the assets of the Company have been
distributed to the Unit Holders pursuant to Section 10.2 hereof (the
"Liquidation Period"), the Unit Holders shall continue to share Profits, Losses,
gain, loss and other items of Company income, gain, loss or deduction in the
manner provided in Section 3 hereof.
33
10.7 Character of Liquidating Distributions. All payments made in liquidation of
the interest of a Unit Holder in the Company shall be made in exchange for the
interest of such Unit Holder in Property pursuant to Section 736(b)(1) of the
Code, including the interest of such Unit Holder in Company goodwill.
10.8 The Liquidator. The "Liquidator" shall mean a Person appointed by the
Directors(s) to oversee the liquidation of the Company. Upon the consent of a
majority in interest of the Members, the Liquidator may be the Directors. The
Company is authorized to pay a reasonable fee to the Liquidator for its services
performed pursuant to this Section 10 and to reimburse the Liquidator for its
reasonable costs and expenses incurred in performing those services. The Company
shall indemnify, save harmless, and pay all judgments and claims against such
Liquidator or any officers, Directors, agents or employees of the Liquidator
relating to any liability or damage incurred by reason of any act performed or
omitted to be performed by the Liquidator, or any officers, Directors, agents or
employees of the Liquidator in connection with the liquidation of the Company,
including reasonable attorneys' fees incurred by the Liquidator, officer,
Director, agent or employee in connection with the defense of any action based
on any such act or omission, which attorneys' fees may be paid as incurred,
except to the extent such liability or damage is caused by the fraud,
intentional misconduct of, or a knowing violation of the laws by the Liquidator
which was material to the cause of action.
10.9 Forms of Liquidating Distributions. For purposes of making distributions
required by Section 10.2 hereof, the Liquidator may determine whether to
distribute all or any portion of the Property in-kind or to sell all or any
portion of the Property and distribute the proceeds therefrom.
SECTION 11. MISCELLANEOUS
11.1 Notices. Any notice, payment, demand, or communication required or
permitted to be given by any provision of this Agreement shall be in writing and
shall be deemed to have been delivered, given, and received for all purposes (i)
if delivered personally to the Person or to an officer of the Person to whom the
same is directed, or (ii) when the same is actually received, if sent by regular
or certified mail, postage and charges prepaid, or by facsimile, if such
facsimile is followed by a hard copy of the facsimile communication sent
promptly thereafter by registered or certified mail, postage and charges
prepaid, addressed as follows, or to such other address as such Person may from
time to time specify by notice to the Members and the Directors: (a) If to the
Company, to the address determined pursuant to Section 1.4 hereof; (b) If to the
Directors, to the address set forth on record with the Company; (c) If to a
Member, either to the address set forth in Section 2.1 hereof or to such other
address that has been provided in writing to the Company.
11.2 Binding Effect. Except as otherwise provided in this Agreement, every
covenant, term, and provision of this Agreement shall be binding upon and inure
to the benefit of the Members and their respective successors, transferees, and
assigns.
11.3 Construction. Every covenant, term, and provision of this Agreement shall
be construed simply according to its fair meaning and not strictly for or
against any Member.
34
11.4 Headings. Section and other headings contained in this Agreement are for
reference purposes only and are not intended to describe, interpret, define, or
limit the scope, extent, or intent of this Agreement or any provision hereof.
11.5 Severability. Except as otherwise provided in the succeeding sentence,
every provision of this Agreement is intended to be severable, and, if any term
or provision of this Agreement is illegal or invalid for any reason whatsoever,
such illegality or invalidity shall not affect the validity or legality of the
remainder of this Agreement. The preceding sentence of this Section 11.5 shall
be of no force or effect if the consequence of enforcing the remainder of this
Agreement without such illegal or invalid term or provision would be to cause
any Member to lose the material benefit of its economic bargain.
11.6 Incorporation By Reference. Every exhibit, schedule, and other appendix
attached to this Agreement and referred to herein is incorporated in this
Agreement by reference unless this Agreement expressly otherwise provides.
11.7 Variation of Terms. All terms and any variations thereof shall be deemed to
refer to masculine, feminine, or neuter, singular or plural, as the identity of
the Person or Persons may require.
11.8 Governing Law. The laws of the State of Nebraska shall govern the validity
of this Agreement, the construction of its terms, and the interpretation of the
rights and duties arising hereunder.
11.9 Waiver of Jury Trial. Each of the Members irrevocably waives to the extent
permitted by law, all rights to trial by jury in any action, proceeding or
counterclaim arising out of or relating to this Agreement.
11.10 Counterpart Execution. This Agreement may be executed in any number of
counterparts with the same effect as if all of the Members had signed the same
document. All counterparts shall be construed together and shall constitute one
agreement.
11.11 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
nonbreaching Members may be entitled, at law or in equity, the nonbreaching
Members shall be entitled to injunctive relief to prevent breaches of the
provisions of this Agreement and specifically to enforce the terms and
provisions hereof in any action instituted in any court of the United States or
any state thereof having subject matter jurisdiction thereof.
IN WITNESS WHEREOF, the parties have executed and entered into this Amended and
Restated Operating Agreement of the Company as of the date first set forth
above.
35
COMPANY:
SIOUXLAND ETHANOL, LLC
By: /s/ Xxx Xxxxx
---------------------------------
Xxx Xxxxx
Its: Chairman, President and
Chief Executive Officer
36
EXHIBIT "A"
INITIAL MEMBERSHIP LIST
INITIAL CAPITAL
NAME OF INITIAL MEMBERS UNITS CONTRIBUTION
----------------------- ----- ---------------
Xxx Xxxxx 4 $ 20,000
Xxxx and Xxx Xxxxxx 4 $ 20,000
Kirkholm Farms Partnership 8 $ 40,000
Xxxx X. and Xxxx X. Xxxxxxxxx 8 $ 40,000
Xxxxxxx X. and Xxxxx X. Xxxxxxx 6 $ 30,000
Shen-Dae-Man, LLC 20 $100,000
Xxxxxx X. and Xxxxxxx X. Xxxxxxx 7 $ 35,000
Xxxxxx and Xxxxxx Xxxxxxxxx 10 $ 50,000
Xxxxxxx and Xxxxx Xxxxx 4 $ 20,000
Xxx Xxxxxx 2 $ 10,000
Xxxxxxx Xxxxxxxxxx 4 $ 20,000
Xxxxx X. and Xxxxxx X. Xxxxx 4 $ 20,000
Xxxxx One, LLC 8 $ 40,000
Xxxx X. Xxxxxxxx 10 $ 50,000
Xxxxx and Xxxxx Xxxxxxxx 8 $ 40,000
Xxxxx and Xxxxxx Xxxxxxx 4 $ 20,000
Xxxxx and Xxxxx Xxxxxx 4 $ 20,000
Xxxxxxx X. Xxxx 4 $ 20,000
Xxxxxx X. and Xxxx Xxx Xxxxxx 4 $ 20,000
Xxx X. Xxxxxxx 4 $ 20,000
Xxxxxx X. and Xxxxxxxxx Xxxxxxxx 4 $ 20,000
37
Xxxx and Xxx Xxxxxxxxx 4 $ 20,000
Xxxxx X. and Xxxxxx X. Xxxxxx 6 $ 30,000
Xxxxxx X. and Xxxxxx X. Xxxxx 4 $ 20,000
Xxxxx X. Xxxxxxx X. Xxxxxx 4 $ 20,000
Xxxxx X. Xxxxxxxxx 4 $ 20,000
Xxxxxxx X. Xxxxxxxx 4 $ 20,000
Xxxx Xxxxx 4 $ 20,000
Xxx and Xxxxxx Xxxx 4 $ 20,000
Xxxx Xxxxxx 0 $ 20,000
Xxxxxxx X. and Xxxxx X. Xxxxxxx 4 $ 20,000
Xxxxx X. and Xxxxxxxxx X. Xxxxxx 4 $ 20,000
Xxxx X. and Xxxxx X. Xxxxxx 4 $ 20,000
Xxxxx X. and Xxxxx X. Xxxxxxx 6 $ 30,000
Xxxxxxxx Dairy 4 $ 20,000
Xxxxxx X. Xxxxx 4 $ 20,000
--- --------
TOTAL: 195 $975,000
========
38
EXHIBIT "B"
INITIAL BOARD OF DIRECTORS
INITIAL BOARD OF DIRECTORS ADDRESSES OF INITIAL BOARD OF DIRECTORS
-------------------------- ---------------------------------------
Xxx Xxxxx, President 0000 Xxxxxx Xxxx., Xxxxxxx, XX 00000
Xxx Xxxxxx, Vice-President 000 Xxxxxx Xxxxxx, Xxxxx, XX 00000
Xxxxx Xxxxxxxx, Secretary 000 000xx Xxxxxx, Xxxxx Xxxxx Xxxx, XX 00000
Xxxx Xxxxxxxxx, Treasurer XX Xxx 000, Xxxxx, XX 00000
Xxxx Xxxxxxx, Registered Agent 000 Xxxxxxxxxx Xxxxx, Xxxxx Xxxxx Xxxx,
XX 00000
Xxxxxxx Xxxxxxxx XX Xxx 0000, Xxxxx Xxxx, XX 00000
Don 'Skip' Xxxxxxx 0000 Xxxxxxx Xxxxxx, Xxxxx Xxxx, XX 00000
Xxxxxx Xxxxxxxxx XX Xxx 000, Xxxxxxxx, XX 00000
Xxxxxxx Xxxxx XX Xxx 000, Xxxxxx, XX 00000
Xxxxx Xxxxxxxx 00000 000xx Xxxx, Xxxxxx, XX 00000
Xxxx Xxxxxxxx 000 Xxx Xxxxxx Xxxxx, Xxx. 000, Xxxxxx Xxxxx,
XX 00000
Xxxx Xxxxxxxx 000 Xxxxxxxxx, Xxxxx, XX 00000
Xxxx Xxxxxxxxxx 0000 Xxxxxxxx Xxxxxx, Xxxxxxxx, XX 00000
39
EXHIBIT "C"
MEMBER SIGNATURE PAGE
ADDENDA
TO THE
AMENDED AND RESTATED
OPERATING AGREEMENT OF
SIOUXLAND ETHANOL, LLC
The undersigned does hereby represent and warrant that the undersigned, as
a condition to becoming a Member in Siouxland Ethanol, LLC, has received a copy
of the Amended and Restated Operating Agreement, dated February 24, 2005, and,
if applicable, all amendments and modifications thereto, and does hereby agree
that the undersigned, along with the other parties to the Amended and Restated
Operating Agreement, shall be subject to and comply with all terms and
conditions of said Amended and Restated Operating Agreement in all respects as
if the undersigned had executed said Amended and Restated Operating Agreement on
the original date thereof and that the undersigned is and shall be bound by all
of the provisions of said Amended and Restated Operating Agreement from and
after the date of execution hereof.
INDIVIDUALS: ENTITIES:
------------------------------------- ----------------------------------------
Name of Individual Member Name of Entity (Please Print)
(Please Print)
------------------------------------- ----------------------------------------
Signature of Individual Print Name and Title of Officer
------------------------------------- ----------------------------------------
Name of Joint Individual Member Signature of Officer
(Please Print)
-------------------------------------
Signature of Joint Individual Member
Agreed and accepted on behalf of the
Company and its Members:
SIOUXLAND ETHANOL, LLC
By:
---------------------------------
Its:
--------------------------------
40
