THIRD AMENDED AND RESTATED
LIMITED LIABILITY COMPANY AGREEMENT
OF
IKON RECEIVABLES, LLC
This Third Amended and Restated Limited Liability Company Agreement,
dated and effective as of November 1, 1999, is adopted by IKON Receivables-1,
LLC, a Delaware limited liability company ("IKON Receivables-1"), as the sole
member (in such capacity, the "Sole Member"), and IKON Receivables Funding,
Inc., a Delaware corporation, as the manager (in such capacity, the "Manager").
Each capitalized term used herein and not defined shall have the meaning given
to such term in Article II of this Agreement.
WHEREAS, the Certificate of Formation was filed on January 20, 1999;
WHEREAS, the original Limited Liability Company Agreement was adopted
on January 20, 1999 (the "Original Agreement");
WHEREAS, the Original Agreement was amended and restated as of March
26, 1999 (the "First Amended Agreement");
WHEREAS, the First Amended Agreement was amended and restated as of
April 23, 1999 (the "Second Amended Agreement");
WHEREAS, the Second Amended Agreement was amended by letter agreement
as of October 7, 1999; and
WHEREAS, the Sole Member and the Manager hereby wish to amend and
restate the Second Amended Agreement.
NOW, THEREFORE, the Sole Member and the Manager hereby amend and
restate the Second Amended Agreement in its entirety and adopt the following:
ARTICLE 1
FORMATION OF LIMITED LIABILITY COMPANY
Section 1.1. Formation of Limited Liability Company. The Sole Member
--------------------------------------
has heretofore formed a Delaware limited liability company (the "Company")
pursuant to the Act. The Manager and each person from time to time serving as an
officer or director of the Manager shall be, and hereby is, designated as an
"authorized person" within the meaning of Section 18-204 of the Act, authorized
and empowered to execute certificates to be filed with the Secretary under the
Act. The Sole Member shall be the sole member of the Company, and the Sole
Member's Interest in the Company shall be, and hereby is, authorized and issued.
Section 1.2. Company Name and Principal Office. The name of the
---------------------------------
Company shall be "IKON Receivables, LLC." The Manager shall have the power at
any time to change the name of the Company. The principal business office of the
Company shall be 0000 Xxxx Xxxx, X.X. Xxx 0000, Xxxxx, Xxxxxxx 00000. The
business of the Company may also be conducted at such additional place or places
as the Sole Member may determine.
Section 1.3. Office of and Agent for Service of Process. The
------------------------------------------
registered office of the Company in Delaware shall be maintained at The
Corporation Trust Company, 0000 Xxxxxx Xxxxxx, Xxxxxxxxxx, Xxxxxxxx 00000. The
Company's agent for service of process on the Company at such address shall be
The Corporation Trust Company. The Manager shall have the power and the
authority, and is hereby authorized and empowered to change, at any time and
from time to time, the location of such registered office and/or such registered
agent upon compliance with the Act.
Section 1.4. Term of Company. The Company shall be formed and
---------------
commence on the date the certificate of formation is filed with the Secretary
(the "Effective Date"). The Company shall have a perpetual existence as a
separate legal entity until cancellation of the Company's certificate of
formation.
Section 1.5. Purpose of Company. The purpose to be conducted or
------------------
promoted by the Company is to engage in the following activities:
(a) prepare and file with the Securities and Exchange Commission (the
"Commission") and to execute, in the case of the 1933 Act Registration
Statement and 1934 Act Registration Statement (as herein defined), on
behalf of the Company, (i) a Registration Statement (the "1933 Act
Registration Statement"), including all pre-effective and post-effective
amendments thereto, relating to the registration under the Securities Act
of 1933, as amended (the "1933 Act"), of the lease-backed notes of the
Company, (ii) any preliminary prospectus or prospectus or supplement
thereto relating to the lease-backed notes of the Company required to be
filed pursuant to the 1933 Act, and (ii) a Registration Statement on an
appropriate form (the "1934 Act Registration Statement"), including all
pre-effective and post-effective amendments thereto, relating to the
registration of the lease-backed notes of the Company under the Securities
Exchange Act of 1934, as amended;
(b) file and execute on behalf of the Company, such applications,
reports, surety bonds, irrevocable consents, appointments of attorney for
service of process and other papers and documents that shall be necessary
or desirable to register the lease-back notes of the Company under the
securities or "blue sky" laws of such jurisdictions as the Manager, on
behalf of the Company, may deem necessary or desirable;
(c) execute and deliver letters or documents to, or instruments for
filing with, a depository relating to the lease-backed notes of the
Company;
(d) execute, deliver and perform on behalf of the Company an
underwriting or purchase agreement with one or more underwriters or
purchasers relating to the offering of the lease-back notes of the Company;
2
(e) enter into, perform and carry out contracts of any kind,
including, without limitation, contracts with any Person affiliated with
the Member, necessary to, in connection with, convenient to, or incidental
to the accomplishment of the purposes of the Company;
(f) to purchase or acquire from any other subsidiary of IKON Office
Solutions, Inc. any right to payment, whether constituting an account,
chattel paper instrument or general intangible and certain related property
(other than equipment) and other related rights and assets, and beneficial
interests in any or all of the foregoing (collectively, the "Lease
Receivables");
(g) to acquire, own, hold, service, lease, re-lease, transfer, sell,
assign, pledge, invest, lend and otherwise deal with the Lease Receivables
and interests in the Lease Receivables, cash, marketable securities,
deposit or investment accounts, demand notes and any proceeds or further
rights associated with any of the foregoing;
(h) to hold and enjoy all of the rights and privileges as the owner
or otherwise of the Lease Receivables;
(i) to enter into, execute, deliver and perform its obligations under
the Assignment and Servicing Agreement, the Indenture or any other
agreement in connection therewith or otherwise related to the Lease
Receivables (the "Securitization Documents");
(j) to execute, deliver and perform and to issue and sell notes
collateralized by any or all of the Lease Receivables pursuant to the
Indenture;
(k) to enter into and perform obligations under any intercompany
services agreement or management agreement with the Member, the Manager or
any Affiliate of either thereof; and
(l) to engage in any activity and to exercise any powers permitted to
limited liability companies under the laws of the State of Delaware that
are related or incidental to the foregoing and necessary, convenient or
advisable to accomplish the foregoing.
The Company shall have the power and authority, and is hereby
authorized and empowered, to engage in the activities set forth in this Section
1.5, and activities that are required or convenient for the performance of any
of its obligations pursuant to any of the Securitization Documents and other
activities approved in accordance with Section 5.5.
Section 1.6. Address of the Sole Member and Manager. The addresses
--------------------------------------
of the Sole Member and the Manager are set forth in Exhibit A.
---------
Section 1.7. Exclusivity. No Person may be admitted to the Company
-----------
as an additional or substitute member, except as expressly set forth in this
Agreement.
Section 1.8. Authorization. The Company, and the Manager or any
-------------
officer of the Company on behalf of the Company, are hereby authorized to enter
into, execute, deliver and
3
perform the Assignment and Servicing Agreement and other agreements related to
the sale and servicing of the Lease Receivables as the Manager or officer
executing such agreement deems necessary and appropriate and to prepare and file
a registration statement on Form S-3 with the Securities and Exchange Commission
and to do all things necessary and appropriate to the declaration of
effectiveness of such Registration Statement as the Manager and officers
directing such preparation and filing deem necessary, notwithstanding any other
provision of this Agreement, the Act or other applicable law, rule or
regulation, and without any further act, vote or approval of any person. The
foregoing authorization shall not be deemed a restriction on the power of the
Manager or officers of the Company to enter into other agreements on behalf of
the Company.
Section 1.9. Fiscal Year. The Company's fiscal year shall commence
-----------
on October 1st and end on September 30/th/ of each year.
ARTICLE II
DEFINITIONS
Section 2.1. Defined Terms.
-------------
"Act" means the Delaware Limited Liability Company Act, Delaware Code
---
Title 6, Sections 18-101 et seq., as amended or supplemented from time to time.
-- ---
"Affiliate" when used with respect to a Person shall mean any other
---------
Person controlling, controlled by, or under common control with, such Person.
"Agreement" shall mean this Limited Liability Company Agreement, as
---------
the same may be amended, supplemented or otherwise modified from time to time.
"Assignment and Servicing Agreement" shall mean the assignment and
----------------------------------
servicing agreements entered into or to be entered into between IOS Capital (or
any other subsidiary of IKON Office Solutions, Inc.) and the Company, as amended
or supplemented from time to time.
"Capital Contributions" shall mean the amount of cash and the fair
---------------------
market value of property (as determined by the Manager and net of any
liabilities to which such property is subject or which is deemed assumed by the
Company) contributed to the Company by the Sole Member.
"Company" shall mean the limited liability company governed by this
-------
Agreement and formed by the filing of the Certificate of Formation of the
Company with the Secretary.
"IOS Capital" shall mean IOS Capital, Inc., a Delaware corporation,
-----------
and sole member of IKON Receivables-1, LLC.
"Indemnified Party" means the Sole Member, any successor member of the
-----------------
Company, the Manager, any successor manager of the Company, any officer, agent,
shareholder,
4
director, employee or incorporator of the Sole Member, any successor member, the
Manager or any successor manager, or any officer, manager, employee, organizer
or agent of the Company.
"Indenture" means, collectively, the indentures entered into or to be
---------
entered into between the Company, IOS Capital (or any other subsidiary of IKON
Office Solutions, Inc.) and the Trustee, as amended or supplemented from time to
time.
"Independent Director" shall mean an individual who has not been for a
--------------------
period of 5 years prior to election to the board of directors of the Manager and
continuing through such time: (i) a director, officer or employee of any entity
owning beneficially, directly or indirectly, more than 5% of the outstanding
shares of IOS Capital's or the Manager's common stock, or (ii) a director,
officer or employee of such beneficial owner's subsidiaries or Affiliates, other
than the Manager or any other special purpose entity of IOS Capital (an "SPE").
An Independent Director may not be a trustee in bankruptcy for any SPE or any
Affiliate of a SPE.
"Insolvency Event" shall mean with respect to the Sole Member or any
----------------
successor member: (i) the entry of a decree or order by a court, agency or
supervisory authority having jurisdiction in the premises for the appointment of
a conservator, receiver or liquidator for such member, in any insolvency,
readjustment of debt, marshaling of assets and liabilities or similar
proceedings, or for the winding-up or liquidation of such member's affairs, and
the continuance of any such decree or order unstayed and in effect for a period
of 90 consecutive days; (ii) the consent by such member to the appointment of a
conservator, receiver or liquidator in any insolvency, readjustment of debt,
marshaling of assets and liabilities or similar proceedings of or relating to
such member or of or relating to substantially all of such member's property; or
(iii) if such member shall admit in writing its inability to pay its debts
generally as they become due, file a petition to take advantage of any
applicable insolvency or reorganization statute, make an assignment for the
benefit of its creditors or voluntarily suspend payment of its obligations. The
foregoing definition of "Insolvency Event" is intended to replace and shall
supersede and replace the definition of "Bankruptcy" set forth in Sections 18-
304 of the Act.
"Interest" shall mean the Sole Member's ownership interest in the
--------
Company including, without limitation, the right of the Sole Member to the
profits and losses of the Company and to receive distributions of the Company's
assets, together with the obligations of the Sole Member to comply with all the
terms and provisions of this Agreement.
"Lease Receivables" shall have the meaning set forth in Section
-----------------
1.5(a).
"Manager" shall mean the Manager and any other Person selected from
-------
time to time by the Sole Member pursuant to Section 5.1 as a manager of the
Company. The "Manager" shall be a manager of the Company within the meaning of
the Act.
"Net Cash Flow" shall mean, as of any date, any and all amounts
-------------
received by the Company on or before such date (other than Capital
Contributions), less (i) amounts previously distributed under Section 4.1, (ii)
unpaid costs and accrued expenses pursuant to Section 4.2 and any reasonable
reserves therefor and (iii) all other cash expenditures made by or on behalf of
the Company.
5
"Notes" shall mean the Notes of the Company issued pursuant to any
-----
Registration Statement on Form S-3, as amended, filed by the Company.
"Person" shall mean any individual, partnership, corporation, trust,
------
limited liability company, association, joint venture, estate, governmental
entity or other legal person.
"Registration Statement" shall have the meaning set forth in Section
-----------------------
1.5(a).
"Securitization Documents" shall have the meaning set forth in Section
------------------------
1.5(i) of this Agreement.
"Secretary" means the Secretary of State of the State of Delaware.
---------
"Sole Member" shall have the meaning set forth in the preamble to this
-----------
Agreement.
"Trustee" shall mean the trustee named in the Indenture.
-------
ARTICLE III
CAPITAL CONTRIBUTIONS
Section 3.1. Contributions. The Sole Member shall contribute
-------------
concurrently with the execution of this Agreement or has already contributed the
property described in Exhibit B as its Capital Contribution to the Company and
---------
shall from time to time contribute such other property as is described in the
Assignment and Servicing Agreement, as amended from time to time. Such
contribution is an absolute transfer and assignment of such property to the
Company, without recourse or warranty. The Manager has not made and shall not
make any Capital Contributions to the Company.
Section 3.2. Additional Contributions. The Sole Member shall have no
------------------------
obligation to make additional contributions after the date hereof, but may elect
to do so from time to time.
ARTICLE IV
DISTRIBUTIONS
Section 4.1. Distributions of Net Cash Flow. Distributions of Net
------------------------------
Cash Flow shall be made to the Sole Member by the Manager at such times and in
such amounts as determined by the Manager, acting alone, provided such
distributions are not prohibited by any agreement to which the Company is a
party or the Act or other applicable law. The Manager shall not receive any
distribution of Net Cash Flow.
Section 4.2. Expenses of the Company. The Company shall pay all
-----------------------
costs and expenses incurred in connection with the Company's affairs (or shall
reimburse the Manager for
6
having incurred any such out-of-pocket expenses), including without limitation,
all expenses of conducting the business of the Company.
ARTICLE V
MANAGEMENT
Section 5.1. Manager. (a) The Manager shall not be a member of the
-------
Company and shall not own any Interest or any portion thereof, or any other
ownership interest in the Company, and, as such, shall not share in the
distributions of Net Cash Flow or the profits or losses of the Company. The
Manager shall be (i) a special purpose entity with at least two Independent
Directors on its board of directors and (ii) selected by the Sole Member from
time to time or at such time as a vacancy for any reason shall occur and shall
serve until a successor is selected or qualified. The Sole Member hereby
selects IKON Receivables Funding, Inc. as the initial Manager.
(b) The Manager, acting alone, without the approval or authorization
of the Sole Member, shall have full and exclusive management and control of the
business of the Company, including, without limitation, the power to appoint
Persons to act on behalf of the Company, to hire employees and agents and
appoint officers of the Company to perform such functions as from time to time
shall be delegated to such employees, agents, and officers by the Manager and to
determine the compensation of any employees, agents and officers of the Company
or to delegate some or all compensation decisions to officers or employees of
the Company.
(c) There shall be no change of Manager without the prior
confirmation from Xxxxx'x Investors Service, Inc. and Standard & Poor's Rating
Services that such change will not result in either a downgrade or a withdrawal
of the then current ratings of the outstanding Notes.
Section 5.2. Resignation. The Manager may resign at any time by
-----------
giving written notice to the Sole Member, provided that the Manager may resign
--------
only after a successor Manager meeting the requirements and having similar
restrictions in its certificate of incorporation or other charter documents set
forth in Section 5.1 has been appointed, has executed a counterpart to this
Agreement and has assumed the duties of the resigning Manager and such
resignation will not result in either a downgrade or a withdrawal of the then
current ratings of the outstanding Notes.
Section 5.3. Removal. The Manager may be removed with or without
-------
cause by the Sole Member, provided that the Sole Member shall not remove the
--------
Manager unless a successor manager meeting the requirements and having similar
restrictions in its certificate of incorporation or other charter documents set
forth in Section 5.1 has been appointed, has executed a counterpart to this
Agreement and has assumed the duties and obligations of the removed Manager and
such removal and succession will not result in either a downgrade or a
withdrawal of the then current ratings of the Notes.
Section 5.4. Compensation. The Manager shall receive such
------------
compensation as shall from time to time be determined by the Sole Member and
shall be reimbursed by the
7
Company for any reasonable out-of-pocket expenses incurred by the Manager on
behalf of the Company.
Section 5.5. Limitation on Actions. (a) Notwithstanding any other
---------------------
provision of this Agreement and, to the fullest extent permitted by law, any
provision of law that otherwise so empowers the Manager, the Manager shall not
have the power or authority, and shall not be authorized or empowered, without
(i) the prior written unanimous consent of all of the directors of the Manager
(including at least two Independent Directors) and (ii) the prior written
consent of the Member, to cause the Company to do any of the following:
(A) engage in any business or activity, including, without
limitation, the incurrence of any indebtedness, other than as contemplated
by the Securitization Documents or amend, alter, change or repeal Section
1.5 of this Agreement hereto or this Section 5.5.
(B) incur any indebtedness, or assume or guaranty any indebtedness of
any other entity, other than (i) indebtedness contemplated by the
Securitization Documents and the performance of its obligations under the
Securitization Documents; and (ii) indebtedness incurred in the ordinary
course of the business of the Company.
(C) consolidate, convert or merge with or into any other Person or
convey or transfer all or substantially all of its properties and assets to
any other Person except as permitted by or in compliance with the
provisions of the Securitization Documents.
(D) dissolve or liquidate, in whole or in part, except as set forth
in Article IX, file a voluntary petition that commences a case under Title
11 of the United States Code (or any successor statutes) with respect to
the Company, or consent to the institution of bankruptcy or insolvency
proceedings against the Company or file a petition seeking, or consent to,
relief under any applicable Federal or state law relating to bankruptcy, or
consent to the appointment of a receiver, liquidator, assignee, trustee,
sequestrator (or other similar official) of the Company or a substantial
part of the property of the Company, or make any assignment for the benefit
of creditors, or admit in writing its inability to pay the debts of the
Company generally as they become due, or take action in furtherance of any
of the foregoing.
(b) No Manager nor any director of the Manager pursuant to the
requirements of this Section 5.5 shall, with regard to any matter described in
this Section 5.5 or Section 5.6, owe a fiduciary duty or other obligation to the
Sole Member (except as may specifically be required by any applicable law);
instead, such Manager or director's fiduciary duty and other obligations with
regard to any matter described in this Section 5.5 or Section 5.6 shall, to the
fullest extent permitted by law, be owed to the Company including, without
limitation, the Company's creditors. Every member of the Company shall be deemed
to have consented to the foregoing by virtue of such member's acceptance of
interests therein, and no further act or deed of any member of the Company shall
be required to evidence such consent. In addition, no Independent Director of
the Manager may be removed unless his or her successor has been duly elected.
8
(c) No election shall be made by the Manager or any other person to
classify the Company as an association taxable as a corporation pursuant to (S)
301.7701-3 of the Treasury regulations.
Section 5.6. Sale or Purchase of Lease Receivables. The Manager
-------------------------------------
shall not have the power to sell or to purchase any Lease Receivables, except
pursuant to the Assignment and Servicing Agreement and subject to the
limitations in Section 1.5, unless the Manager has first gotten confirmation
from Xxxxx'x Investors Service, Inc. and Standard & Poor's Rating Services that
such sale will not result in either a downgrade or a withdrawal of the then
current ratings of the Notes.
Section 5.7. Amendment to Certificate of Formation. Without the
-------------------------------------
affirmative vote of each member of the Manager's Board of Directors, including,
without limitation, the affirmative vote of the Independent Directors of the
Manager, and prior notice to Xxxxx'x Investors Service, Inc. and Standard &
Poor's Rating Services, the Company shall not amend either this Agreement or the
Company's Certificate of Formation, as amended or restated from time to time.
Section 5.8. Binding Authority. Only the Manager or its delegates
-----------------
pursuant to Section 5.1 shall have the power and authority (subject to the terms
and conditions of this Agreement) to bind the Company.
Section 5.9 Company Separateness. In addition to the foregoing, the
--------------------
Manager shall conduct the affairs of the Company in the following manner so
that: (i) the business and affairs of the Company will be managed by or under
the direction of the Manager; (ii) the Company will observe all corporate
formalities and will maintain separate bank accounts, corporate records and
books of account from those of any direct or ultimate parent of the Company or
any subsidiary or any other SPE or Affiliate of any such parent; (iii) the
Company will pay from its funds and assets all obligations and indebtedness
incurred by it; (iv) the Company's assets shall not be commingled with those of
any other entity except as permitted by the Securitization Documents; (v) the
Company shall maintain an office or area separate from any direct, indirect or
ultimate parent of the Company (which area may be within the premises of the
parent of the Company); (vi) the Company shall maintain an arm's length
relationship with its Affiliates and conduct all transactions with Affiliates on
commercially reasonable terms; (vii) the Company shall pay the salaries of its
own employees and maintain sufficient number of employees in light of its
contemplated business operations; (viii) the Company shall not guarantee or
become obligated for the debts of any other entity or hold out its credit as
being available to satisfy the obligations of others; (ix) the Company shall not
acquire obligations or securities of its member; (x) the Company shall pay its
expenses from its own funds and shall allocate fairly and reasonably any
overhead for shared office space; (xi) the Company shall use separate
stationery, invoices, and checks; (xii) the Company shall not pledge its assets
for the benefit of any other entity or make any loans or advances to any entity
except as contemplated by the Securitization Documents; (xiii) the Company shall
hold itself out as a separate entity; (xiv) the Company shall correct any known
misunderstanding regarding its separate entity; (xv) the Company shall maintain
adequate capital in light of its contemplated business operations; (xvi)
9
the Company shall maintain separate financial statements; (xvii) the Company
shall not become involved in the day to day management of any Affiliate; (xviii)
the Company shall operate so as not to be substantively consolidated with any
Affiliate; (xix) the Company shall not act as agent of any Affiliate; and (xx)
the Company shall conduct its own business in its own name.
ARTICLE VI
OBLIGATIONS AND/OR RIGHTS OF THE SOLE MEMBER AND MANAGER
Section 6.1. Liability of the Sole Member and Manager. Neither the
----------------------------------------
Sole Member nor the Manager shall be personally liable for any of the debts,
liabilities, contracts or other obligations of the Company solely by reason of
being the Sole Member or Manager of the Company.
Section 6.2. No Management Responsibility. The Sole Member shall
----------------------------
not take part in the management of the business or the affairs, or transact any
business for, the Company, except to the extent that its approval or consent is
expressly required under this Agreement for the taking of any actions by or on
behalf of the Company or of the Manager.
Section 6.3. No Authority to Act. The Sole Member shall not have the
-------------------
authority to act on behalf of or bind the Company.
ARTICLE VII
INDEMNIFICATION
Section 7.1. Exculpation and Indemnification of the Sole Member and
------------------------------------------------------
Manager. (a) No Indemnified Party shall be liable to the Company for any loss,
-------
damage or claim incurred by reason of any act or omission performed or omitted
by such Indemnified Party in connection with any matter arising from, or related
to, or in connection with this Agreement or the Company's business or affairs;
provided, however, that the foregoing shall not eliminate or limit the liability
--------
of any Indemnified Party if a judgment or other final adjudication adverse to
the Indemnified Party establishes that the Indemnified Party's acts or omissions
were in bad faith or involved intentional misconduct or a knowing violation of
law or that the Indemnified Party personally gained in fact a financial profit
or other advantage to which the Indemnified Party was not legally entitled.
(b) The Company shall, to the fullest extent permitted by the Act,
indemnify and hold harmless each Indemnified Party against any losses, claims,
damages or liabilities to which the Indemnified Party may become subject in
connection with any matter arising from, related to, or in connection with, this
Agreement or the Company's business or affairs; provided, however, that no
--------
indemnification may be made to or on behalf of any Indemnified Party if a
judgment or other final adjudication adverse to the Indemnified Party
establishes (i) that the Indemnified Party's acts or omissions giving rise to
such losses, claims, damages or liabilities were committed in bad faith or
involved intentional misconduct or knowing violation of law and were material to
the cause of action so adjudicated or (ii) that the Indemnified Party personally
gained in fact a financial profit or other advantage to which the Indemnified
Party was not legally
10
entitled; provided, further that such indemnification shall be subject to the
--------
terms of, and shall be subordinate to the obligations payable under the
Securitization Documents.
(c) To the fullest extent permitted by applicable law, expenses
(including legal fees) incurred by an Indemnified Party defending any claim,
demand, action, suit or proceeding shall, from time to time, be advanced by the
Company prior to the final disposition of such claim, demand, action, suit or
proceeding upon receipt by the Company of an undertaking by or on behalf of the
Indemnified Party to repay such amount if it shall be determined that the
Indemnified Party is not entitled to be indemnified as authorized in this
Section 7.1.
(d) Notwithstanding anything else contained in this Agreement, the
indemnity obligations of the Company under paragraph (b) above shall:
-------------
(i) be in addition to any liability that the Company may
otherwise have;
(ii) inure to the benefit of the successors, assigns, heirs and
personal representatives of each Indemnified Party, and
(iii) be limited to the assets of the Company.
(e) This Article VII shall survive any termination of this Agreement
and the dissolution of the Company.
ARTICLE VIII
TRANSFERABILITY OF SOLE MEMBER'S INTERESTS
Section 8.1. Restriction on Transfer. The Sole Member may not
-----------------------
transfer its Interest unless such transfer is involuntary or by operation of
law, is not prohibited by any of the Securitization Documents or does not cause
the total number of beneficial owners of Interests to exceed ninety-nine (99).
Section 8.2. Transfer for Security. The Sole Member may not pledge,
---------------------
mortgage or otherwise hypothecate all or any part of its right, title and
interest in cash distributions to be received from the Company, except as
provided by the Securitization Documents.
Section 8.3. Substitute Member. If the Sole Member assigns all or
-----------------
any part of its Interest pursuant to Section 8.1, the assignee shall be admitted
to the Company as a member of the Company upon the assignee's obtaining the
consent of the Manager to such admission and the assignee's executing a
counterpart of this Agreement, provided that prior notice is given to Xxxxx'x
Investors Service, Inc. and Standard & Poor's Ratings Services. If the Sole
Member assigns all of its interest pursuant to Section 8.1, the Sole Member
shall cease to be a member of the Company immediately after the admission of the
assignee to the Company as member of the Company and the Company shall be
continued without dissolution.
11
Section 8.4. Resignation. Other than as set forth in Section 8.1,
-----------
the Sole Member shall not resign from the Company.
ARTICLE IX
DISSOLUTION AND LIQUIDATION
Section 9.1. Dissolution. The Company shall be dissolved and its
-----------
affairs shall be wound up solely upon the occurrence of any of the following
events, provided however, to the fullest extent permitted by law, that the
----------------
Company may not dissolve so long as the Notes are outstanding:
(a) the happening of any event that makes it unlawful to carry
on the business of the Company;
(b) judicial dissolution pursuant to the Act;
(c) at any time there are no members of the Company, unless the
Company is continued without dissolution in accordance with the Act or
Section 9.2 below; or
(d) subject to the requirements of the Securitization Documents,
the Company is dissolved by the Manager with the unanimous written consent
of its entire board of directors (including at least two Independent
Directors) and the Sole Member as provided in Section 5.5. To the fullest
extent permitted by law, the Sole Member shall not have the power or
authority, acting alone, to dissolve the Company and wind up its affairs.
Section 9.2. Continuation of Company. Notwithstanding any other
-----------------------
provision of this Agreement, the occurrence of an Insolvency Event with respect
to the Sole Member shall not cause the Sole Member to cease to be a member of
the Company and upon the occurrence of such an event, the business of the
Company shall continue without dissolution. Notwithstanding any other provision
of the Agreement, the Sole Member waives any right that it might have under
Section 18-801(b) of the Act to agree in writing to dissolve the Company upon
the occurrence of any event that causes the Sole Member to cease to be a member
of the Company. In the event of the dissolution of the Sole Member or the
occurrence of any other event that causes the Sole Member to cease to be a
member of the Company at a time when the Sole Member is the only member of the
Company, to the fullest extent permitted by law, the personal representative of
the Sole Member shall, within 90 days of such event, agree in writing to
continue the Company and to the admission of such personal representative or its
nominee or designee as a member of the Company effective as of the dissolution
of the Sole Member. Upon such admission, the Company shall be continued without
dissolution.
Section 9.3. Winding Up and Liquidation of the Company. Upon
-----------------------------------------
dissolution, the Company shall continue solely for the purpose of winding up its
affairs in an orderly manner, liquidating its assets and satisfying the claims
of creditors and the Sole Member. Upon
12
dissolution, a full accounting of the assets and liabilities of the Company
shall be taken, and the Company assets shall be distributed as promptly as
possible as hereinafter provided:
(a) first, to the satisfaction (or the making of reasonable
provision for the satisfaction) of such debts and liabilities of the
Company (or reserves therefor), including any necessary expenses of
liquidation, except any debts, liabilities and loans that may be due to the
Sole Member, in the order of priority as provided by law; and
(b) second, to the satisfaction (or the making of reasonable
provision for the satisfaction) of any debts and liabilities that may be
due to the Sole Member and to the satisfaction (or the making of reasonable
provision for the satisfaction) of the unpaid principal balance and the
interest accrued thereon on loans, if any, made by the Sole Member to the
Company.
All of the remaining assets of the Company shall be distributed to the Sole
Member.
13
ARTICLE X
POWER OF ATTORNEY
Section 10.1. Manager as Attorney-In-Fact. The Sole Member hereby
---------------------------
makes, constitutes, and appoints the Manager with full power of substitution and
resubstitution, its true and lawful attorney-in-fact for it and in its name,
place, and stead and for its use and benefit, to sign, execute, certify,
acknowledge, swear to, file, and record (a) all limited liability company
certificates, assumed name or similar certificates, and other certificates and
instruments (including counterparts of this Agreement) which the Manager deems
necessary in its reasonable discretion to be filed by the Company under the laws
of the State of Delaware or any other state or jurisdiction in which the Company
is doing business; (b) any and all amendments or changes to the instruments
described in clause (a), as now or hereafter amended, which the Manager may deem
necessary in its reasonable discretion to effect a change or modification of the
Company in accordance with the terms of this Agreement, including, without
limitation, amendments or changes to reflect any amendments adopted by the Sole
Member in accordance with the terms of this Agreement; (c) all certificates of
cancellation and other instruments which the Manager deems necessary in its
reasonable discretion to effect the dissolution and termination of the Company
pursuant to the terms of this Agreement; and (d) any other instrument which is
now or may hereafter be required by law to be filed on behalf of the Company or
is deemed necessary by the Manager in its reasonable discretion to carry out
fully the provisions of this Agreement in accordance with its terms, in each
case, however, subject to the provisions of Section 5.5. The Sole Member
authorizes such attorney-in-fact to take any further action which such attorney-
in-fact shall reasonably consider necessary in connection with any of the
foregoing, hereby giving such attorney-in-fact full power and authority to do so
and perform each and every act or thing whatsoever requisite or advisable to be
done in connection with the foregoing as fully as the Sole Member might or could
do personally, and hereby ratifying and confirming all that any such attorney-
in-fact shall lawfully do or cause to be done by virtue thereof or hereof.
Section 10.2. Nature of Special Power. The power of attorney
-----------------------
granted pursuant to this Article X:
(a) is a special power of attorney coupled with an interest and
is irrevocable;
(b) may be exercised by any such attorney-in-fact by identifying
the Sole Member executing any agreement, certificate, instrument or other
document with the single signature of any such attorney-in-fact for the
Sole Member; and
(c) shall not be affected by and shall survive the bankruptcy,
insolvency, dissolution, disability, incapacity or cessation of existence
of the Sole Member and shall survive the delivery of an assignment by the
Sole Member of its interest in the Company, except that where an assignee
of the Sole Member is admitted as a substituted member, the power of
attorney shall survive the delivery of such assignment for the sole purpose
of enabling any such attorney-in-fact to effect such substitution.
ARTICLE XI
14
MISCELLANEOUS PROVISIONS
Section 11.1. Notices. Any notices or communications hereunder shall
-------
be in writing, and may be either delivered personally (which shall include
deliveries by courier), by facsimile transmission or mailed, postage prepaid, by
certified or registered mail, return receipt requested, directed to the parties
at their respective addresses or fax numbers set forth in Exhibit A. Any party
---------
hereto may designate a different address to which notices and demands shall
thereafter be directed by written notice given in the same manner and directed
to the Company at is office hereinabove set forth.
Section 11.2. Amendments. Subject to Section 5.5 and Section 5.7,
----------
this Agreement shall be amended only by the written consent of the Sole Member
and the Manager.
Section 11.3. Headings. The headings of the various Articles and
--------
Sections herein are for the convenience of reference only and shall not define
or limit any of the terms or provisions hereof.
Section 11.4. Severability. If any one or more of the provisions or
------------
terms of this Agreement shall be for any reason whatsoever held invalid, then
such provisions or terms shall be deemed severable from the remaining provisions
or terms of this Agreement and shall in no way affect the validity or
enforceability of the other provisions of this Agreement.
Section 11.5. Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY
-------------
AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT
REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND
REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH
LAWS.
Section 11.6. Counterparts. This Agreement may be executed by the
------------
parties hereto in separate counterparts, each of which when so executed and
delivered shall be an original, but all such counterparts together constitute
one and the same instrument.
Section 11.7. Effect of Agreement. This Agreement shall be binding
-------------------
upon and inure to the benefit of the parties hereto, and their respective
successors and assigns.
Section 11.8. Integration. This Agreement constitutes the entire
-----------
agreement among the parties pertaining to the subject matter thereof and
supersedes all prior agreements and understandings and contemporaneous
agreements and understandings pertaining thereto.
Section 11.9. Enforceability. Notwithstanding any other provision of
--------------
this Agreement, the Member agrees that this Agreement constitutes a legal, valid
and binding agreement of the Member, and is enforceable against the Member by
the Manager and the
15
Independent Directors, in accordance with its terms. In addition, the
Independent Directors shall be intended beneficiaries of this Agreement.
16
IN WITNESS WHEREOF, this Third Amended and Restated Limited Liability
Company Agreement has been executed as of the date first above written.
IKON RECEIVABLES-1, LLC,
as Sole Member
By: IKON RECEIVABLES FUNDING, INC.,
as Manager
By: /s/ Xxxxxxx Xxxxx
_____________________________
Name: Xxxxxxx Xxxxx
Title: President
IKON RECEIVABLES FUNDING, INC.,
as Manager
By: /s/ Xxxxxxx Xxxxx
_____________________________
Name: Xxxxxxx Xxxxx
Title: President
EXHIBIT A
ADDRESSES OF THE SOLE MEMBER AND THE MANAGER
Address:
-------------
Sole Member: IKON Receivables-1, LLC
0000 Xxxx Xxxx
X.X. Xxx 0000
Xxxxx, XX 00000
Manager: IKON Receivables Funding, Inc.
000 Xxxxx Xxxx, Xxxxx 000
Xxxxxxxxxx, XX 00000
EXHIBIT B
CAPITAL CONTRIBUTION OF SOLE MEMBER
1. Lease Receivables pursuant to Section 3.1 of this Limited Liability Company
Agreement.
1. Cash in the amount of $1000.00.
