LIMITED LIABILITY COMPANY AGREEMENT OF TRILOGY MULTIFAMILY INCOME & GROWTH HOLDINGS I, LLC
Exhibit 2(b)
OF
TRILOGY MULTIFAMILY INCOME & GROWTH HOLDINGS I,
LLC
This
Limited Liability Company Agreement, dated September 25, 2020, of
Trilogy Multifamily Income & Growth Holdings I, LLC, a Delaware
limited liability company (the “Company”), is entered
into by the Company and Trilogy Multifamily Income & Growth
Holdings I Manager, LLC, a Delaware limited liability company, the
sole member of the Company (the “Member”).
WHEREAS, the
Company was formed pursuant to the Delaware Limited Liability
Company Act, 6 Del.
C. 18 § 101, et seq., as amended from time to
time (the “Act”) with the filing of the certificate of
formation of the Company (the “Certificate”) on June
15, 2020, with the Secretary of State for the State of Delaware;
and
WHEREAS, the Member
and the Company, by execution of this Agreement, hereby agree as
follows:
ARTICLE I
DEFINITIONS
The
following terms shall have the meanings set forth below unless
otherwise expressly provided herein:
1.01 “Act”
shall mean the Delaware Limited Liability Company Act, 6
Del. C. 18 §
101 et seq., as amended from time to
time.
1.02 “Affiliate”
shall mean any Person that directly or indirectly controls, is
controlled by, or is under common control with another
Person.
1.03 “Agreement”
shall mean this Limited Liability Company Agreement, as originally
executed and as amended from time to time.
1.04 “Capital
Contribution” shall mean any contribution to the
capital of the Company by the Member in cash, property or services,
or a binding obligation to contribute cash, property or services,
whenever made. “Initial Capital
Contribution” shall mean the initial Capital
Contribution of the Member pursuant to this Agreement.
1.05 “Certificate”
shall mean the certificate of formation of the Company, as amended
from time to time.
1.06 “Code”
shall mean the Internal Revenue Code of 1986, as amended, or
corresponding provisions of subsequent superseding federal revenue
laws.
1.07 “Company”
shall mean Trilogy Multifamily Income & Growth Holdings I, LLC,
a Delaware limited liability company.
1.08 “Entity”
shall mean any general partnership, limited liability company,
corporation, joint venture, trust, business trust, cooperative or
other association.
1.09 “Limited
Liability Company Interest” shall mean the
Member’s ownership interest in the Company’s capital,
profits and loss and the voting and other rights and obligations
with respect thereto as set forth in this Agreement.
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1.10 “Member”
shall mean Trilogy Multifamily Income & Growth Holdings I
Manager, LLC, a Delaware limited liability company, the sole Member
of the Company.
1.11 “Person”
shall mean any natural person or Entity, and the heirs, executors,
administrators, legal representatives, successors, and assigns of
such Person where the context so admits.
ARTICLE II
PURPOSE AND POWERS OF COMPANY
2.01
Purpose. The
Company is formed for the object and purpose of, and the nature of
the business to be conducted and promoted by the Company is,
engaging in any lawful act or activity for which limited liability
companies may be formed under the Act and engaging in any and all
activities necessary or incidental to the foregoing, which shall
include but not be limited to investing in real estate in the
U.S.
2.02
Powers. The Company
shall have the power and authority to take any and all actions
necessary, appropriate, advisable, convenient or incidental to or
for the furtherance of the purpose set forth in Section
2.01
ARTICLE III
NAME AND ADDRESS OF SOLE MEMBER
3.01
Name and Address.
The name, address and Limited Liability Company Interest of the
Member are as follows:
Name and
Address
Limited Liability Company
Interest
Trilogy Multifamily
Income &
Growth
100%
Holdings I Manager,
LLC
000
Xxxx Xxxx Xxxxxx
Xxxxxxx, XX
00000
ARTICLE IV
MANAGEMENT
4.01
In General. The
business and affairs of the Company shall be conducted solely and
exclusively by the Member, as provided herein. The Member shall
have all rights and powers on behalf and in the name of the Company
to perform all acts necessary and desirable to the objects and
purposes of the Company. All determinations, decisions and actions
made or taken by the Member (or its designee(s)) shall be
conclusive and binding upon the Company. Xxxx Xxxxxx is
hereby appointed as an authorized signatory of the Company and
shall each have the authority, acting alone, to execute on behalf
of the Company such agreements, contracts, instruments and other
documents as the Member shall from time to time approve, such
approval to be conclusively evidenced by the execution and delivery
thereof by any of the foregoing designated authorized
signatories. Third parties may conclusively rely upon the
acts of Xxxx Xxxxxx as evidence of the authority of such persons
for all purposes in respect of their dealings with the
Company.
4.02
Fees and
Compensation. The Member agrees to the following fees
payable by the Company:
(a) The Company shall
reimburse the Member for all out of pocket or third party expenses
incurred and paid by it in the conduct of the Company’s
business. Such expenses shall not include any expenses by the
Member apart from the authorized conduct of the Company’s
business. The Member’s sole determination of which expenses
are allocated to and reimbursed as a result of the Company’s
activities or business and the amount of such expenses shall be
conclusive. Such reimbursement shall be treated as expenses of the
Company and shall not be deemed to constitute distributions to the
Member of profit, loss, or capital of the Company.
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(b) The Member shall be
entitled to an annual property management fee of up to four percent
(4.0%) of the monthly gross income generated from the
Company’s real estate, paid monthly, in arrears.
(c) The Member shall be
entitled to an acquisition fee equal to up to one percent (1.0%) of
the purchase price of any real estate purchased by the
Company.
(d) The Member shall be
entitled to a financing fee equal to up to one half percent (0.5%)
of the principal amount of debt used to finance the Company’s
purchase or refinance of real estate.
(e) The Member shall be
entitled to a disposition fee of up to one percent (1.0%) of the
gross sales price of any real estate disposed by the
Company.
(f) The Member shall be
entitled to an annual asset management fee of up to one and one
half percent (1.50%) of the total capital raised by the Company in
any bond offering, paid quarterly, in advance.
(g) The Member shall be
entitled to a construction management fee equal to five percent
(5.0%) of the aggregate cost of any construction, renovation,
improvements, or similar costs incurred on the Company’s real
estate.
ARTICLE V
CAPITALIZATION OF THE COMPANY; ALLOCATIONS AND
DISTRIBUTIONS
5.01
Member Capital
Contributions. The Member, upon the execution of this
Agreement, shall contribute as the Member’s Initial Capital
Contribution One Hundred Dollars ($100.00). The Member may but is
not required to make additional Capital Contributions to the
Company.
5.02
Interests and Return of
Capital Contribution. The Member shall not receive any
interest on the Member’s Capital Contribution. Except as
otherwise specifically provided for herein, the Member shall not be
allowed to withdraw or have refunded any Capital
Contribution.
5.03
Allocation of Profits and
Losses; Tax Status. The Company’s profits and losses
shall be allocated to the Member. At all times that the Company has
only one member, it is the intention of the Member that the Company
be disregarded for federal, state, local and foreign income tax
purposes.
5.04
Distributions. All
distributions of cash or other property (except upon the
Company’s dissolution, which shall be governed by the
applicable provisions of the Act and Article VI hereof) shall be
made to 100% to the Member; provided, however, that until such time
as all obligations under any bonds issued by the Company pursuant
to an offering thereof have been repaid in full, the Company shall
not make any distributions to the Member pursuant to this Section
5.04, other than as required to offset the Company’s tax
liability for allocations of profits made pursuant to Section 5.03.
All amounts withheld pursuant to the Code or any provisions of
state or local tax law with respect to any payment or distribution
to the Member from the Company shall be treated as amounts
distributed to the Member pursuant to this Section
5.04.
ARTICLE VI
TERM; DISSOLUTION AND TERMINATION
6.01 Term.
The term of the Company shall be perpetual unless the Company is
dissolved and terminated in accordance with this Article
VI.
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6.02 Events
of Dissolution. The Company shall be dissolved, and its
affairs shall be wound up, upon the first to occur of the
following: (a) the written consent of the Member, (b) the
occurrence of any event other than the death or incompetency of the
Member that terminates the continued membership of the Member
without the admission of a successor member to the Company or (c)
the entry of a decree of judicial dissolution under Section 18-802
of the Act or any successor statute. In the event of the death or
incompetency of the Member, the Company shall not dissolve but the
personal representative (as defined in the Act) of the Member shall
agree in writing to continue the Company and to the admission of
the personal representative of the Member or its nominee or
designee to the Company as a member, effective as of the death or
incompetency of the Member.
6.03
Liquidation. Upon
the dissolution of the Company, the Member shall wind up its
affairs and distribute its assets in accordance with the Act by
either or a combination of the following methods as the Member (or
the Person or Persons carrying out the liquidation) shall
determine:
(a)
Selling the Company’s assets and, after the payment of
Company liabilities, distributing the net proceeds therefrom to the
Member; and/or
(b)
Distributing the Company’s assets to the Member in kind,
subject to its liabilities.
6.04
Orderly
Liquidation. A reasonable time as determined by the Member
(or the Person or Persons carrying out the liquidation) not to
exceed eighteen (18) months shall be allowed for the orderly
liquidation of the assets of the Company and the discharge of
liabilities to the creditors so as to minimize any losses attendant
upon dissolution.
6.05
Distributions. Upon
liquidation, the Company assets (including any cash on hand) shall
be distributed in the following order and in accordance with the
following priorities:
(a)
First, to the payment of the debts and liabilities of the Company
and the expenses of liquidation; then
(b)
Second, to the setting up of any reserves which the Member (or the
Person or Persons carrying out the liquidation) deem reasonably
necessary for any contingent or unforeseen liabilities or
obligations of the Company. At the expiration of such period as the
Member (or the Person or Persons carrying out the liquidation)
shall deem advisable, but in no event to exceed eighteen (18)
months, the Company shall distribute the balance thereof in the
manner provided in the following subsection; then
(c)
Third, 100% to the Member in accordance with its Limited Liability
Company Interest.
ARTICLE VII
LIABILITY OF MEMBER; OTHER BUSINESS AND TRANSACTIONS
7.01
Liability. The
Member shall not have any liability for the obligations or
liabilities of the Company except to the extent provided in the Act
or as otherwise agreed in contract.
7.02
Outside Business.
The Member or any of its Affiliates may engage in or possess an
interest in any business venture of any nature or description,
independently or with others, similar or dissimilar to the business
of the Company, and the Company shall have no rights by virtue of
this Agreement in and to such independent ventures or the income or
profits derived therefrom, and the pursuit of any such venture,
even if competitive with the business of the Company, shall not be
deemed wrongful or improper. The Member or any of its Affiliates
shall not be obligated to present any particular investment
opportunity to the Company even if such opportunity is of a
character that, if presented to the Company, could be taken by the
Company, and the Member or any of its Affiliate shall have the
right to take for its own account (individually or as a partner,
shareholder, fiduciary or otherwise) or to recommend to others any
such particular investment opportunity.
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ARTICLE VIII
EXCULPATION AND INDEMNIFICATION
8.01
Exculpation.
(i) The Member, whether
acting as Member or in any other capacity, shall, to the fullest
extent permitted by law, have no liability to the Company or to any
other person for any loss, damage or claim incurred by reason of
any error of judgment, act or omission, other than any act or
omission constituting gross negligence or willful malfeasance,
performed or omitted by the Member.
(ii)
The Member shall be fully protected in relying in good faith upon
the records of theCompany and upon such information, opinions,
reports or statements presented to the Company by any Person as to
matters the Member reasonably believes are within the professional
or expert competence of such person or entity and who or which has
been selected with reasonable care by or on behalf of the Company,
including information, opinions, reports or statements as to the
value and amount of the assets, liabilities, profits, losses, or
any other facts pertinent to the existence and amount of assets
from which distributions to the Member might properly be paid. The
foregoing provision shall in no way be deemed to reduce the
limitation on liability of the Member provided in Section
8.01(i).
8.02
Duties and Liabilities of the
Member.
(i) To the extent that,
at law or in equity, the Member has duties (including fiduciary
duties) and liabilities relating thereto to the Company or to any
other person, the Member, acting under this Agreement, shall not be
liable to the Company or to any other Person for its reliance on
the provisions of this Agreement. The provisions of this Agreement,
to the extent that they restrict the duties and liabilities of the
Member otherwise existing at law or in equity, are agreed to
replace such other duties and liabilities of the
Member.
(ii) Whenever
in this Agreement the Member is permitted or required to make a
decision (a) in his “discretion” or under a grant of
similar authority or latitude, the Member shall be entitled to
consider only such interests and factors as it desires, including
its own interests, and shall have no duty or obligation to given
any consideration to any interest of or factors affecting the
Company or any other Person, or (b) in its “good faith”
or under another express standard, the Member shall act under such
express standard and shall not be subject to any other or different
standard imposed by this Agreement or other applicable
law.
8.03 Indemnification.
To the fullest extent permitted by applicable law, the Member
(irrespective of the capacity in which it acts) shall be entitled
to indemnification from the Company for any loss, damage or claim
incurred by the Member by reason of any error of judgment, act or
omission, other than an act or omission constituting gross
negligence or willful malfeasance, performed or omitted by it on
behalf of the Company; provided, however, that any indemnity under
this Section 8.03 shall be provided out of and to the extent of
Company assets only, and the Member shall not have any personal
liability on account thereof.
8.04 Expenses.
To the fullest extent permitted by applicable law, expenses
(including legal fees) incurred by the Member in 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.
8.05 Insurance.
The Company may purchase and maintain insurance, to the extent and
in such amounts as the Member shall, in its sole discretion, deem
reasonable, against any liability that may be asserted against or
expenses that may be incurred by any such person or entity in
connection with the activities of the Company or such indemnities,
regardless of whether the Company would have the power to indemnify
such person or entity against such liability under the provisions
of this Agreement.
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8.06
Other. The Member
and the Company may enter into indemnity contracts with any other
Person granting such Person rights of indemnification and may adopt
written procedures pursuant to which arrangements are made for the
advancement of expenses and the funding of obligations under this
Article VIII and containing such other procedures regarding
indemnification, all as the Member determines in its sole
discretion.
ARTICLE IX
MISCELLANEOUS PROVISIONS
9.01
Application of Delaware
Law. This Agreement, and the interpretation hereof, shall be
governed exclusively by its terms and by the laws of the State of
Delaware, without reference to its choice of law provisions, and
specifically the Act.
9.02
Amendments. No
amendment or modification of this Agreement shall be effective
unless approved in writing by the Member.
9.03
Construction.
Whenever the singular number is used in this Agreement and when
required by the context, the same shall include the plural, and the
masculine gender shall include the feminine and neuter genders, and
vice versa.
9.04
Headings. The
headings in this Agreement are inserted for convenience only and
are in no way intended to describe, interpret, define, or limit the
scope, extent or intent of this Agreement or any provision
hereof.
9.05
Severability. If
any provision of this Agreement or the application thereof to any
Person or circumstance shall be invalid, illegal or unenforceable
to any extent, the remainder of this Agreement and the application
thereof shall not be affected and shall be enforceable to the
fullest extent permitted by law.
9.06
Heirs, Successors and
Assigns. Each and all of the covenants, terms, provisions
and agreements herein contained shall be binding upon and inure to
the benefit of the parties hereto and, to the extent permitted by
this Agreement, their respective heirs, legal representatives,
successors and assigns.
9.07
Creditors. None of
the provisions of this Agreement shall be for the benefit of or
enforceable by any creditor of the Company.
9.08
Entire Agreement.
This Agreement sets forth all of the promises, agreements,
conditions and understandings between the parties respecting the
subject matter hereof and supersedes all prior or contemporaneous
negotiations, conversations, discussions, correspondence, memoranda
and agreements between the parties concerning such subject
matter.
[Signature
Page Follows]
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The
undersigned, being the sole Member, hereby agrees, acknowledges and
certifies that the foregoing Limited Liability Company Agreement
constitutes the sole and entire Limited Liability Company Agreement
of the Company, adopted by the sole Member of the Company effective
as of the date first written above, and shall be binding on the
Company notwithstanding that the Company has only a single
Member.
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SOLE
MEMBER:
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TRILOGY MULTIFAMILY
INCOME & GROWTH HOLDINGS I
MANAGER,
LLC,
a Delaware limited
liability company
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By:
Trilogy Multifamily Income & Growth Partners, LLC,
a
Delaware limited liability company
Its:
Sole Member
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By:
TREG Manager, LLC,
a
Delaware limited liability company
Its:
Manager
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By:
/s/ Xxxx
Xxxxxx
Name: Xxxx
Xxxxxx
Its:
Manager
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The
Company hereby executes this Limited Liability Company Agreement
for purposes of becoming a party hereto and agreeing to perform its
obligations and duties hereunder and being entitled to enjoy its
rights and benefits hereunder.
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COMPANY:
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TRILOGY MULTIFAMILY
INCOME & GROWTH HOLDINGS I, LLC,
a Delaware limited
liability company
|
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|
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By:
Trilogy
Multifamily Income & Growth Holdings I Manager,
LLC,
a
Delaware limited liability company
Its:
Sole Member
By:
Trilogy Multifamily Income
& Growth Partners, LLC,
a
Delaware limited liability company
Its:
Manager
|
|
|
By:
TREG Manager, LLC,
a Delaware limited
liability company
Its:
Manager
|
|
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By:
/s/ Xxxx
Xxxxxx
Name: Xxxx
Xxxxxx
Its:
Manager
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