Fillable Printable Single Member Llc Operating Agreement Template Free

Single Member Llc Operating Agreement Template Free

OPERATING AGREEMENT

________________ [Instructions: Insert LLC name] LLC,

a ______________ [Instructions: Insert state] Limited Liability Company

THISOPERATINGAGREEMENT(the“Agreement”)isenteredintoasof

__________________,[Instructions:Insertthedateofthisagreement]byandbetweenthe

members listed herein (henceforth, the “Members”), the signatories to this Agreement.

WHEREAS,on________________ [Instructions:InsertthedateofLLCformation]

____________________ [Instructions:InsertLLCname]LLC(the“Company”) wasformed

as a limited liability company inthe Stateof________________ [Instructions:Insert thestate

ofLLCformation]underthe____________________ [Instructions:Insertthestate’sLLC

statute] (the “Act”);

WHEREAS, the Members desire to enter into thisAgreement to provide for the governance and

managementoftheCompanyandsetforthindetailforththeirrightsandliabilities asmembers,

and to provide for certain other matters, all as permitted under the Act.

NOW,THEREFORE,inconsiderationofthemutualpromises,covenants,andundertakings

specifiedhereinwiththeintenttobeobligatedbothlegallyandequitably,thepartiesagreeas

follows:

1.COMPANY

a.Formation. TheMembersformeda_______________ [Instructions:Insertthe

stateofLLCformation]limitedliabilitycompanypursuanttotheActandthattheyarethe

initialMembersofthelimitedliabilitycompanyknownas ______________ [Instructions:

InsertLLCname]LLC,organizedunderthelawsoftheStateof_______________,

[Instructions:InsertthestateofLLCformation]whosearticlesoforganization(the

“Articles”)werefiledwiththeSecretaryofState,effective________________.[Instructions:

Insertthedatethearticlesoforganizationwerefiledwiththestate]Inconnectionwiththe

executionofthis Agreement,theMemberswillexecuteanyfurtherdocumentsandtakefurther

actionsasareappropriatetocomplywiththerequirementsoflawfortheformationand

operation of a limited liability company in all places where Company may conduct its business.

b.Name. ThenameoftheCompanyis__________________ [Instructions:Insert

LLC name] LLC.

c.RequiredNumberofMembers.Companywillatalltimeshaveatleastof

__________ (___)[Instructions:InserttheminimumnumberofmemberstheLLCmust

have] members.

d.Term. TheCompany’sexistencecommencedon_______________

[Instructions:InsertthedateofLLCformation]andshallcontinueforthetermstatedinthe

Articles unless sooner terminated pursuant hereto or as set forth in the Act.

e.Purpose. ThegeneralpurposeoftheCompanywillbetotransactanyandall

businessesforwhichlimitedliabilitycompaniesmaybeformedunder ________________

[Instructions:InsertthestateofLLCformation]law,toengageinallactivitiesreasonably

necessaryorincidentalthereto,andtoengageinanyorallbusinessesandrelatedactivities

approved by the Members as set forth herein.

f.RegisteredOffice;Agent. TheCompanyshallmaintainanofficein

_________________ [Instructions:Insert the state where the LLC’s office will be located] as

requiredbytheAct atwhichitshall maintaintherecordsrequiredtobemaintainedthereby the

Act.TheCompanymayhavesuchotherofficesastheMembersmaydetermine,withinor

withouttheStateof_________________ [Instructions: InsertthestatewheretheLLC’s

office will be located]and any such office may be the Company’s principal place of business, as

determined by the Members. The Company’s initialagent forservice ofprocess requiredby the

Act is as set forth in the Articles and may be changed if and as determined by the Members.

g.ManagementofBusiness. Asmorefullysetforthherein,thebusinessofthe

Company will be conducted by the Members as a member-managed limited liability company.

h.TaxClassification.TheMembersintendtheCompanytobeclassifiedasa

partnershipforfederaland,tothemaximumextentpossible,stateincometaxes.This

classification for tax purposes does not create or imply a general partnership, limited partnership,

or joint venture betweentheMembersforstatelawor any otherpurpose.Instead,theMembers

acknowledge the Company’s status as a limited liability company formed under the Act.

2.MEMBERS

a.InitialMembers. Thename,socialsecuritynumber,businessorresidencestreet

address,initialcapitalcontribution,andpercentageinterestintheCompany(the“Sharing

Ratio”) of each Member are as follows:

NameSocial Security

Number

Address Initial Capital

Contribution

Sharing

Ratio

__________

[Instructions:

Insert name]

__________

[Instructions:

Insert SSN]

__________

[Instructions: Insert

address]

$__________

[Instructions:

Insert

amount]

___%

[Instructions

: Insert

percent]

__________

[Instructions:

Insert name]

__________

[Instructions:

Insert SSN]

__________

[Instructions: Insert

address]

$__________

[Instructions:

Insert

amount]

___%

[Instructions

: Insert

percent]

__________

[Instructions:

__________

[Instructions:

__________

[Instructions: Insert

$__________

[Instructions:

___%

[Instructions

Insert name]Insert SSN]Address]Insert

Amount]

: Insert

Percent]

__________

[Instructions:

Insert name]

__________

[Instructions:

Insert SSN]

__________

[Instructions: Insert

address]

$__________

[Instructions:

Insert

amount]

___%

[Instructions

: Insert

percent]

__________

[Instructions:

Insert name]

__________

[Instructions:

Insert SSN]

__________

[Instructions: Insert

address]

$__________

[Instructions:

Insert

amount]

___%

[Instructions

: Insert

percent]

__________

[Instructions:

Insert name]

__________

[Instructions:

Insert SSN]

__________

[Instructions: Insert

address]

$__________

[Instructions:

Insert

amount]

___%

[Instructions

: Insert

percent]

EachsuchMembershallmaketheInitialCapitalContributionandhavetheSharingRatioset

forthabove.TheInitialCapitalContributionshallbeintheformofcash,unlessotherwiseset

forthinExhibit“A,”attachedheretoandincorporatedherein.Thecashequivalentofany Initial

CapitalContributionthatisintheformofassetsotherthancashwillbeassetforthinExhibit

“A.”

b.NewMembers. Ifanypersonsubsequently becomesaMemberoftheCompany,

that person shall become a party to this Agreement by executing and delivering to the Members a

membershipsupplement(the“MembershipSupplement”)tothis Agreement insuchformasthe

Membersprescribe.TheMembershipSupplementshallinclude:(i)thefullname,businessor

residencestreetaddressandsocialsecuritynumberofthenewMember;(ii)theinitialcapital

contribution, if any,to bemade by the newMember; (iii) theSharing Ratio ofthe new Member;

and (iv) any adjustments in the Sharing Ratios of other Members resulting from the admission of

thenewMember.ByexecutinganddeliveringtheMembershipSupplement,thenewMember

shall become a party to this Agreement without further action.

c.SpousalConsent.IntheeventthatanyMemberismarriedasofthedateon

whichsuchMemberbecomesapartytothis Agreement,suchMember’sspouseshallexecute

and deliver to the Company the Spousal Consent attached hereto as Exhibit “B” and incorporated

herein(“SpousalConsent”),effectiveasofsuchdate.IfanyMembershouldmarryorremarry

afterthedateonwhichsuchMemberbecomesapartytothis Agreement,suchMembershall,

within__________ (__)[Instructions:Insertthenumberofdaysaftermarriagethata

member’sspousemustsubmitthe“SpousalConsent”]daysthereafter,obtainhis/hernew

spouse’sacknowledgementofandconsenttotheexistenceandbindingeffectofallrestrictions

containedin thisAgreement by causing suchspousetoexecuteanddelivera Consent ofSpouse

acknowledgingtherestrictionsandobligationscontainedinthisAgreementandagreeingand

consenting to the same.

d.AdditionalCapitalContributions. AnyMembersmaymakeasubsequent

additionalcapitalcontribution intheformofmoney (includingpromissorynotes),property,and

servicesrenderedortoberendered,providedthatsuchcontributionispreviouslyapprovedin

writingby MemberswhoseSharingRatiosequalmorethan__________ percent(___%)

[Instructions:InsertthepercentageofSharingRatiosthatmust approveadditionalcapital

contributions] of the Sharing Ratios of all Members. No Member will be obligated to make any

additional capital contribution to the Company. However,if Company's revenues are insufficient

topayCompany’sexpenses,theMembershavetheopportunity,butnottheobligation,to

contributeadditionalcapitalincashtoCompanyonapro-ratabasisinaccordancewiththeir

respectiveSharingRatio.EachMemberwillreceiveacredittothatMember’sCapital Account

(asdefinedbelow)intheamountofanyadditionalcapitalthattheMembercontributesto

Company.Immediately following such capital contributions, the Sharing Ratio’s will be adjusted

to reflect the new relative proportions of the Members' Capital Accounts.

e.MemberLoanstoCompany. NoMemberwillberequiredtoloananyfundsto

Company.Notwithstandingtheforegoing,anyMembermayloanfundstotheCompany,

providedthat suchloanispreviouslyapprovedinwritingbyMemberswhoseSharingRatios

equalmorethan__________ percent(___%)[Instructions:InsertthepercentageofSharing

Ratios that must approve member loans] of the Sharing Ratios of all Members. All loans must

be evidenced by a promissory note (each a “Note”) payable by Company to the lending Member.

f.LiabilityforCompanyObligations.Exceptasotherwiseprovidedinthis

Agreement, or requiredby law, no Membershall be personally liablefor any debt,obligation, or

liabilityoftheCompany,whetherthatdebt,obligation,orliabilityarisesincontract,tort,or

otherwise.

3.PROFITS, LOSSES AND DISTRIBUTIONS

a.CapitalAccounts. ACapital Account shallbe maintainedforeachMember. The

Capital Account ofeachMemberwillbecreditedinitiallywiththe amountoftheInitialCapital

Contributionby thatMember. Thereafter, eachMember’sCapitalAccount willbecreditedwith

thatMember’sSharingRatioofProfitsandtheamountofanyadditionalcapitalcontributedto

theCompanybythatMember,andwillbedebitedwiththatMember’sSharingRatioofLosses

andtheamountofanycapitaldistributedtothatMember.EachCapitalAccountshallbe

maintained inaccordancewiththerequirementsofInternalRevenueCodeof1986(“IRC”)§

704(b)andallotherapplicablelocal,stateand/orfederalregulations.Intheeventthatthe

Membersdeterminethatitisnecessary tomodify themannerinwhichtheCapital Accounts are

computedtocomplywith local,stateand/orfederalregulations inordertoreflecttheagreed

allocations, the Members may make a modification,provided that such allocation is not likely to

haveamaterialeffectontheamountsdistributabletoanymemberuponthedissolutionof

Company. NointerestwillbepaidtotheMembersoncapitalcontributionsoronCapital

Account balances.

b.ProfitsandLosses. TheProfitsandLossesoftheCompanyshallbeallocated

among the Members in accordance with their Sharing Ratios.

c.Distributions.Annuallyoratmorefrequentintervals,theMembersshall

distribute availablefunds to the Members, inproportion to their Sharing Ratios. As usedherein,

“Available funds” shall mean theCompany’s gross cashreceipts (otherthan cashfunds obtained

ascontributionstotheCompanybyitsMembersandcashfunds,ifany,obtainedfromloansto

theCompany),lesstheCompany’soperatingexpensesincludingprovisionsforpaymentof

outstanding andunpaid currentobligations ofthe Company as ofsuch time,and lessthe amount

that,intheMembers’ reasonablejudgment,theCompanyshouldretaininordertomaintaina

reasonable reserve and to satisfy Company’s current obligations (including the current portion of

long term debt) and fulfill Company’s business purposes.

4.MANAGEMENT

a.ManagementbyMembers.TheMembers,asmanagers,willmanagethe

Company.Except as otherwise provided in this Agreement,the Members shall have equal rights

in andthe exclusiveauthority tomanage theoperationsand affairs of theCompany andto make

alldecisionsregardingtheCompanyanditsbusiness.TheMemberswilltakeallactionsthat

maybenecessaryorappropriateforthecontinuationoftheCompany’svalidexistenceasa

limitedliabilitycompanyundertheAct,andfortheacquisition,development,maintenance,

preservation,andoperationofCompanypropertyinaccordancewiththeprovisionsofthis

Agreement and applicable laws and regulations. Except as otherwise provided herein, any action

approvedbyMemberswhoseSharingRatiosequalmorethan __________ percent(___%)

[Instructions:InsertthepercentageofSharingRatiosthatmustapproveaCompany

action]oftheSharingRatiosofallMemberswillconstitutetheactofandservetobindthe

Company.ThesignatureofanyMemberauthorizedtodosobysuchapprovalissufficientto

bindtheCompanywithrespecttothematterormatterssoapproved.Nomemberactingalone

withoutsuchapprovalmaybindtheCompanytoanyagreementwithorobligationtoanythird

party or represent or claim to have the ability to do so and all statements of the Company filed or

recordedby theMembersorbytheCompany,ifpossible,mustsostate. TheMemberswillnot

be required to hold meetings tomake management decisions but may do so if and as desired and

appropriate, as provided herein.

b.MajorDecisions. Exceptasotherwiseprovidedinthisparagraph,decisionsshall

bemadebythepriorwrittenconsentofMemberswhoseSharingRatiosequalmorethan

__________ percent (___%)[Instructions:Insert thepercentage of SharingRatios that must

approveaCompanyaction] oftheSharingRatiosofallMembers.Notwithstandingthe

foregoing,however,tothefullestextentpermittedby law,thefollowingmajordecisionsrequire

thepriorwrittenconsentofMemberswhoseSharingRatiosequalmorethan __________

percent(___%)[Instructions:InsertthepercentageofSharingRatiosthatmustapprovea

“major decision”] of the Sharing Ratios of all Members:

i.A change in the purposes or the nature of the business of the Company;

ii.Themerger ofCompany with anyotherlimitedliability company,limited

partnership, or corporation;

iii.Thetransfer,exchange,orotherdispositionofallCompany’sassets,any

significantportionthereof,oranysignificantinterestinCompanyassetsoccurringaspartofa

single transaction or plan;

iv.TheadmissionorwithdrawalofMembersorachangeintheirSharing

Ratios in any manner other than in accordance with this Agreement;

v.ThedissolutionoftheCompanyotherthaninaccordancewiththis

Agreement;

vi.Any amendment to this Agreement;

vii.Theincurrenceorprepaymentofanydebtforborrowedmoneybythe

Companyinexcessof__________ Dollars($________);[Instructions:Inserttheminimum

debt prepayment amount that will trigger this section]

viii.Theincurrenceofobligationshavingamaturitybeyond__________ (__)

[Instructions:Inserttheminimumnumberofmonthsmaturityanobligationmusthaveto

triggerthissection]monthsorinexcessof__________ Dollars($________);[Instructions:

Insert the minimum obligation amount that will trigger this section]

ix.AnypurchaseofcapitalassetsorotherpropertiesfortheCompanyin

excessof __________ Dollars($________); [Instructions: Inserttheminimumpurchase

price of capital assets or other properties that will trigger this section]

x.Making,executing,ordeliveringonbehalfofCompanyanyassignment

forthebenefitofcreditorsoranyguarantee,indemnitybond,orsuretybond,oranyequivalent

thereof;

xi.LendingfundsbelongingtoCompanytoanythirdpartyorextendingto

anyperson,firm,orcorporation,creditonbehalfofCompany,exceptintheordinarycourseof

business or as set forth in this Agreement;

xii.Investing any funds of Company temporarily, including without limitation,

intimedeposits,short-termgovernmentalobligations,commercialpaper,orotherinvestments;

xiii.Changes in tax elections and accounting policies of the Company.

c.Other Activities; Affiliates.

i.MemberswillnotberequiredtomanagetheCompanyastheirsoleand

exclusivefunctionandeachofthemmay haveotherbusinessinterestsandmayengageinother

activitiesinadditiontothoserelatingtotheCompany,includingthemakingormanagementof

other investments. Each Member recognizes that each other Member has or may have an interest

ininvestingin,operating,transferring,leasing,andotherwiseusingpropertyofvariouskinds

and interests therein for profit, and engaging in any and all activities relatedor incidental thereto

andthateachwillmakeotherinvestmentsconsistentwithsuchinterests.NeithertheCompany

noranyMemberbyvirtueofthis Agreementoranyrelationshipcreatedherebywillhaveany

rightinortoanyotherventuresoractivitiesinwhichanyotherMemberisinvolvedortothe

incomeorproceedsderivedtherefrom,andthepursuitofotherventuresandactivitiesbyeach

Member,ishereby consentedtoby each Memberandwill notbedeemed wrongful orimproper.

Notwithstandingtheforegoing, noMembermayengageinanyactivitythatisindirect

competitionwithCompany’sbusiness.Exceptasotherwiseprovidedinthis Agreement,neither

any Member nor any Affiliate of a Member will be obligated to present any particular investment

opportunitytotheCompany,andeachMemberandeachAffiliateofaMemberwillhavethe

righttotakeforitsownaccount,ortorecommendtoothers,anysuchparticularinvestment

opportunity.

ii.Asusedherein,“Affiliate(s) ofaMember”means(1)any partnersinthat

Member;(2)anypersonthatdirectlyorindirectly(includingthroughanyrelatedentity)orina

fiduciarycapacitycontrols,iscontrolledby,orisundercommoncontrolwiththatMemberor

anygeneralpartner inthatMember;or(3)any other personofwhichfivepercent(5%) ormore

oftheequityinterestisheldbeneficiallyorofrecordby thatMemberoranygeneralpartnerin

that Member. “Affiliate” also includes any officer or director of that Member, a spouse, ancestor,

orlinealdescendantofsuchofficerordirectororatrustforthebenefitofanyoftheforegoing.

For purposes of this definition, the term “control” means the possession, directly or indirectly, of

the power to cause the direction of the management and policies of a person, whether through the

ownership of voting securities, by contract, family relationships, or otherwise.

d.Liability;Indemnification. Tothemaximumextentpermittedbythe Actandthe

otherlawsandpublicpoliciesoftheStateof_______________,[Instructions:Insertthestate

ofLLCformation]theMembersshallnotbeliabletotheCompanyortoanyotherpersonfor

anyloss, damageorclaimincurredbyreason of any actoromissionperformed or omitted tobe

performedbytheMembersingoodfaithonbehalfoftheCompanyintheconductofthe

businessand/oraffairsoftheCompany.Further,tothemaximumextentpermittedbythe Act

and the other laws and public policies of the State of______________, [Instructions:Insert the

state of LLC formation]the Company shall defend,indemnify andhold harmless the Members

and any oftheAffiliates of a Member, and any ofhis ortheirrespective shareholders, members,

directors,officers,employees,agents,attorneysorAffiliates,fromandagainstanyandall

liabilities, losses, claims judgments, fines, settlements anddamages incurred by the Members, or

byanysuchperson,arisingoutofanyclaimbaseduponanyactsperformedoromittedtobe

performedbytheMembers,orbyanysuchotherperson,onbehalfoftheMembers,in

connectionwiththeorganization,management,businessorpropertyoftheCompany,including

costs,expensesandattorneys’ fees(whichmaybepaidasincurred)expendedinthesettlement

or defense of any such claim.

e.Deadlock.IntheeventthattheMembersaredividedandareunabletoreach

agreement with respect to any proposed course of action, within__________ (__)[Instructions:

Insert the number of days a deadlock must last to trigger this section] days after such request

for action by any Member, a deadlock (the “Deadlock”) shall be deemed to exist.In the event of

aDeadlocktheMembersshallunanimouslyagreeuponanindependentthird-party(the“Tie-

Breaker”),whowill,aftergoodfaithdiscussionswiththeMembers,resolvetheDeadlock

(including, if necessary,by voting in favor of or against a proposed resolution). In the event that

a Tie-Breakercannotbeunanimouslyagreed,eachmembershallappointa Tie-Breaker,andthe

Tie-BreakersshallmutuallyagreeuponandappointaTie-Breaker,providedthatsuchTie-

Breakerisanindependentthird-partyofgoodreputationandpossessessignificantexperiencein

thesubjectmatteroftheDeadlock.AssoonaspracticableaftertheappointmentoftheTie-

Breaker,theTie-Breakershall,aftergoodfaithdiscussionswiththeMembers,resolvethe

Deadlock(including,ifnecessary,byvotinginfavoroforagainstaproposedresolution).The

determinationoftheTie-BreakershallbefinalandbindinguponalloftheMembersandthe

Company.Any fee charged by the Tie-Breaker shall be paid by Company.

f.MeetingsandConsentsofMembers. ActionsofMembersmaybetakenat

meetings,bywrittenconsentofallMembers,orotherwiseasagreedamongtheMembers.If

action is taken at a meeting,an appropriate record of the action taken shallbe made and retained

intheCompany’srecords. Iftheactionisbywrittenconsent,executedcopiesshallbe

maintainedintheCompany’srecords.MeetingsofMembersmaybecalledbyanyMember.

ReasonablenoticeshallbegiventoeachMemberofanymeetingofMembers.Noticeis

reasonableifitspecifiesbrieflythenatureofthematterstobepresentedatthemeeting,andis

sentordeliveredinamannerthatintheordinarycourseofbusinesswouldbereceivedby each

Membernotlessthan__________ (__) [Instructions: Insertthenumberofdaysnotice

required for a meeting of members] days prior to the day of the meeting.

g.InformationRelatingtoCompany. AnyMemberisentitledtoreceiveany

informationregardingtheCompanyoritsactivities.EachMember orauthorizedrepresentative

shallhaveaccesstoandmayinspectandcopyallbooks,records,andmaterialsregardingthe

Companyoritsactivities.Theexerciseoftherightscontainedinthisparagraphshallbeatthe

requesting Member’s expense.

h.MemberCompensation.Unlessotherwisespecificallyagreedamongthe

Members, no Member shall receive any payment or compensation for performance of obligations

underthisAgreementorformanagementservicestotheCompany.Notwithstandingthe

foregoing, subjectto local,stateand/orfederalregulations,theCompanyshallreimburseany

Member forall, previously approved, reasonable, direct out-of-pocket expenses incurred by such

Member in the course of managing the Company.

5.BOOKS AND RECORDS

a.MaintenanceofBooksandRecords. Completeandaccuratebooksofaccountof

theCompany’saffairsshallbemaintainedattheCompany’sprincipalplaceofbusinessorat

suchotherplacedesignatedbyCompanyandshallremainopentoinspectionbyanyofthe

Membersortheirauthorizedrepresentativesatanyreasonabletimeduringbusinesshours. The

accountingrecordswillbemaintainedinaccordancewithgenerallyacceptedbookkeeping

practicesforCompany’stypeofbusinessandthosemethodsfollowedforfederalandstate

income tax purposes.

b.Reports. Thebooksofaccountshallbeclosedpromptlyafterthecloseofthe

fiscal year. Each Member shallpromptly besenta statement ofthe Member’sdistributive share

of income and expense for federal income tax reporting purposes.

c.TaxMattersPartner. ______________ [Instructions:Insertthemember’s

namethatwillberesponsible for taxmatters]shallbedesignatedasthe TaxMattersPartner

forpurposesofIRCtorepresentCompany,atCompany’sexpense,inconnectionwithall

examinationsofCompanyaffairsbytaxauthoritiesandtoexpendCompanyfundsfor

professional services and associated costs.

d.FiscalYear.ThefiscalyearendofCompanyforfinancialreportingandfor

federalincometaxpurposeswillbe______________.[Instructions:Insertthefiscalyear end

date]

e.TaxReturns.TheMemberswillcausetobepreparedatleastannually,at

Company's expense, informationnecessary for thepreparation of theMembers’ federaland state

incometaxreturns.TheCompanywillsendorcausetobesenttoeachMemberwithin

__________ (__)[Instructions:Insertthenumberofdaysaftertheendofataxyearthat

memberswillreceivetaxreturns]daysaftertheendofeachtaxableyear:(i)theinformation

necessarytocompletefederalandstateincometaxorinformation returns;and(ii) acopyof the

Company's federal, state, and local income tax or information returns for that year.

6.TRANSFERS; NEW MEMBERS

a.Assignment. NotwithstandinganythingtothecontraryinthisAgreement,a

Member’sinterestintheCompanymaybeassignedonlywiththewrittenconsentof

__________ percent (___%)[Instructions: Insert the percentage of shares that must approve

an assignment of a member’s shares] of the Sharing Ratios of all Members.

b.Substitutionof TransfereeasMember. Notwithstandinganythingtothecontrary

inthisAgreement,notransferee,assignee,purchaser,designee,orlegalrepresentativeofa

MembermaybecomeaMemberwithoutthewrittenconsentof__________ percent(___%)

[Instructions:Insertthepercentageofsharesthatmustapproveatransfereeasanew

member] oftheSharingRatiosofallMembers.Ifconsentisnotgranted,thetransferee,

assignee,purchaser, designee,orlegalrepresentativeofaMember, exceptasotherwiserequired

bylaw,shallhavenorighttoparticipateinthemanagementofthebusinessandaffairsofthe

Company includinganyrighttovote,andshallbeentitledonlytoreceivetheeconomicrightto

receivedistributionsmadebytheCompanyandthetransferringMember’sallocableshareof

taxable income, gain, loss,deduction, andcredit(the “EconomicRights”) towhich thatMember

wouldotherwisebeentitledandwhichwasassigned. Asfurtherconditionstoadmissionasa

Member,any transferee,assignee, purchaser, designee, or legal representative of a Member shall

(i)execute and deliversuchinstruments,intheform andsubstancesatisfactory totheMembers,

astheMembersdeemnecessaryordesirabletocausethetransfereetobecomeaMember

includingtheMembershipSupplementand(ii)payallreasonableexpensesinconnectionwith

admissionasaMember,includingbutnotlimitedtothecostofpreparationandfilingofthe

Membershipandany otheramendmentofthis Agreementorthe Articlesoroftakingany other

action necessary or desirable in connection therewith.

c.AdmissionofNewMembers. Notwithstandinganythingtothecontraryinthis

Agreement,additionalpersonsmaybeadmittedasMembersoftheCompanyuponthe

affirmativevoteof__________ percent(___%)[Instructions:Insertthepercentage ofshares

thatmustapproveanewmember’sadmission]oftheSharingRatiosofallMembers.

ConcurrentlywithadmissionofapersonasaMember,thatnewMembershallexecuteand

deliver the Membership Supplement.

d.Death, Incompetency, or Bankruptcy of Member.

i.Uponthedeath,adjudicatedincompetence,orbankruptcy(the

“IncapacitatingEvent”)ofaMember,thesuccessorininterest,whetheranestate,bankruptcy

trustee,orotherwise(the“Successor”)toanyMemberthathassufferedanIncapacitatingEvent

(the“IncapacitatedMember”),willreceiveonlytheEconomicRightsoftheIncapacitated

Member.ForthepurposesofMembervotes,consents,andparticipationinmanagement,the

SharingRatiooftheIncapacitatedMembershallbeeliminatedandtheSharingRatioofthe

remaining Members shall be increased proportionately.Should the remaining Members desire to

substitutetheSuccessorasaMemberoftheCompany,theymustdosoinaccordancewiththe

provisions of this Agreement.

ii.Notwithstanding the foregoing, the Members covenant and agree that upon

theoccurrenceofanIncapacitatingEventofaMember,theCompany,atitsoption,may

purchase,acquire,andredeemtheSharingRatiooftheIncapacitatedMemberintheCompany

forfairmarketvaluebyprovidingwrittennoticetotheSuccessoroftheIncapacitatedMember

within __________ (__) [Instructions: Insert the number of days notice required to purchase

thesharesofanincapacitatedmember]daysoftheoccurrenceoftheIncapacitatingEvent.

ThefairmarketvalueoftheIncapacitatedMember’sSharingRatiooftheCompanyshallbe

determinedbymutualagreementoftheremainingMembersandtheSuccessor.Iftheparties

cannotreachanagreementonthevaluewithin __________ (__) [Instructions: Insertthe

numberofdaystheremainingmembershavetoagreeonthefairmarketvalueofthe

shares]daysfollowingCompany’snotice,thenthesurvivingMembersandtheSuccessoreach

mustselectaqualifiedappraiserwithinthenext__________ (__)[Instructions:Insertthe

number ofdays thatappraisers must beselected]days. The selectedappraisers mustattempt

todeterminethevalueoftheSharingRatioownedbytheIncapacitatedMemberatthetimeof

theIncapacitatingEvent,basedsolelyontheirappraisalofthetotalvalueoftheCompany’s

assetsandtheamountthedecedentwouldhavereceivedhadtheassetsoftheCompanybeen

soldatthattimeforanamountequaltotheirfairmarketvalueandtheproceeds(afterpayment

of all Company obligations) were distributed as they would be upon dissolution of the Company.

Intheeventthetwoselectedappraiserscannotagreeonthevaluewithin__________ (__)

[Instructions:Insertthenumberofdaystheappraisershavetodeterminethevalueofthe

shares]daysafterbeingselected,theappraisersmust,within__________ (__)[Instructions:

Insert the number of days the appraisers have to select a third appraiser]days, select a third

appraiser. The valueof the Sharing Ratio owned by the Incapacitated Member at the time of the

IncapacitatingEvent(andCompany’spurchasepricethereof)willbetheaverageofthetwo

appraisals nearest in amount to one another. That amount will be final and binding onall parties

and their respective successors, assigns, and representatives. The costs and expenses of the third

appraiser and any costs and expenses ofthe appraiser retained but not paid for by Successor will

be offset against the purchase price paid for the Incapacitated Member’s Interest in the Company.

On completion of the purchase of the Incapacitated Member’s Sharing Ratio in the Company, the

Sharing Ratio of the remaining Members will increase proportionately.

iii.Should Company fail toexercise itsright topurchase theSharing Ratioof

theIncapacitatedMember within__________ (__)[Instructions:Insertthenumberofdays

the Company has to purchase the shares of an incapacitated member] days of the occurrence

oftheIncapacitatingEvent,theSuccessormayattempttotransfertheIncapacitatedMember’s

SharingRatiotoathirdparty.Intheeventthatthesubstitutioncomplieswiththetermsofthis

Agreement,thethirdpartyshallbecomeaMember;otherwise,thetransfershallonlybeofthe

Incapacitated Member’s Economic Rights.

e.BuyoutuponDeadlock.Notwithstandinganythingtothecontrarycontained

herein,intheeventthataDeadlockoccursandtheparties agreethatabuyout isthebestcourse

ofaction,the MemberscovenantandagreethattheMember(s)thatarepurchasing,acquiring,

andredeeming(the“PurchasingMember(s)”)theSharingRatiooftheotherMember(s)(the

“SellingMember(s)”)mustpayfairmarketvalue. Todeterminethefairmarketvalueofthe

SellingMember(s)’ SharingRatiooftheCompany,thePurchasingMember(s)andtheSelling

Member(s)shall eachselectaqualifiedappraiser.Theselectedappraisersmustattemptto

determinethevalueoftheSharingRatioownedbytheSellingMember(s)atthetimeof

appraisal,basedsolelyontheirappraisalofthetotalvalueoftheCompany’sassetsandthe

amounttheSellingMember(s)wouldhavereceivedhad theassetsoftheCompanybeensoldat

thattimeforanamountequaltotheirfairmarketvalueandtheproceeds(afterpaymentofall

Companyobligations)weredistributedastheywouldbeupondissolutionoftheCompany.In

theeventthetwoselectedappraiserscannotagreeonthevaluewithin__________ (__)

[Instructions:Insertthenumberofdaysthetwoappraisershavetoagreeonthevalueof

shares]days afterbeingselected,theappraisersmust,within__________ (__)[Instructions:

Insert the number of days the two appraisers have to selecta third appraiser]days, select a

thirdappraiser.ThevalueoftheSharingRatioownedbytheSellingMember(s)willbethe

averageofthetwoappraisalsnearestinamounttooneanother.Thatamountwillbefinaland

binding on all parties and their respective successors, assigns, and representatives. The costs and

expensesoftheappraiserswillbeoffsetagainstthepurchasepricepaidfortheSelling

Member(s)’ interest in the Company.

7.DISSOLUTION AND WINDING UP

a.The Company will be dissolved, its assets disposed of, and its affairs wound up on

the first of the following “Dissolution Events” to occur:

i.The happening of an event stated in this Agreement or the Articles;

ii.AdeterminationthattheCompanybedissolvedandwoundupby

MemberswhoseSharingRatiosequalmorethan__________ percent(___%)[Instructions:

Insertthepercentageofsharesthatmustapprovedissolution]oftheSharingRatiosofall

Members;