Fillable Printable Simple Llc Operating Agreement Template Download
Fillable Printable Simple Llc Operating Agreement Template Download
Simple Llc Operating Agreement Template Download
Operating Agreement for a Limited Liability Company
OPERATING AGREEMENT FOR
ABC LIMITED LIABILITYCOMPANY
THIS OPERATING AGREEMENT (these"Articles") is madeasofthe^ day of^, 19^ by
and among thesignatories identified on the signature pages hereto.
IN CONSIDERATION OF themutual promises of the partiesheretoandother goodand
valuableconsideration,receiptandadequacyofwhichis herebyacknowledged,itis mutually
agreed by andbetween the parties hereto as follows:
1.NAME
The name of the limited liability company shall be "^ Limited Liability Company."
2.PURPOSE
Thepurposeforwhichthelimitedliabilitycompanyisformedistoacquireinterestsin
certainparcelsofrealpropertylocatedin Illinoisandvarious otherstatesoftheUnitedStates
ofAmerica,asis morefullydescribed inScheduleI heretoas amendedfromtimeto time, and
todoand engageinanyand all other things andactivitiesincidenttothe acquisition,holding,
management,operation,leasing,financing,refinancing,development andsaleofsuch
property.
3.REGISTERED OFFICE AND AGENT
Thenameoftheregisteredagentofthelimitedliabilitycompanyshallbe^.The
registered office of the limited liability company shall be located at ^, Illinois.
4.FILING OF ARTICLES OF ORGANIZATION
The members ofthe limited liability company shall:
(a)promptlyfileadulyexecutedoriginalcopyoftheArticlesofOrganizationofthe
limitedliabilitycompany,togetherwithoneormoreadditionalcopiesthereofasappropriate,
withtheSecretaryofStateofIllinois(the"Secretary")andinsuchotherplaceorplacesas
may be required by law; and
(b)tenderandpayallfees,chargesanddoallotherthingsrequisiteforthedue
formation of the limited liability company pursuant to the laws of the State ofIllinois.
5.TERM
Thelimitedliabilitycompanyshallbedeemedformedatthetimeofthefilingofthe
ArticlesofOrganizationwiththeSecretaryandshallcontinueforaperiodofthirty(30)years
fromthedateoffiling,unlesssoonerterminatedpursuanttothefurtherprovisionsofthese
Articles.
6.INTERESTS AND CONTRIBUTIONS OF MEMBERS
6.1Thenameandpresentmailingaddressofeachmemberandthepercentage
interest ofeachmemberofthelimited liability companyare setforthon ScheduleI hereto. The
totalamountofcashconstitutingtheinitial aggregatecontributionby the membersis^ dollars
($^).
6.2The initial contributionofeachmember shall becontributed to thelimited liability
company uponexecution of theseArticles by suchmember.
6.3Anindividualcapitalaccountshallbemaintainedforeachmember.Thecapital
account of each member shall consist of such member's initial contribution, increasedby:
(a)additional contributions madeby such member, and
(b)such member's shareof the limited liability company's netprofits,
and decreased by:
(i)distributions made to suchmember, and
(ii)such member's shareof the limited liability company's losses,
allinaccordancewithanyapplicableprovisionoftheInternalRevenueCodeof1986,
as amended (the "Code"), or any rule or regulation thereunder.
6.4No additional contributionshavebeen agreedtoas of the date ofthesearticles,
andnoneshallberequiredorpermittedwithouttheunanimouswrittenconsentofallthe
members.
6.5Exceptassetforthin Article13.3,amembershallnotreceivefromthelimited
liability company any part or all of his or her contributionto capital until:
(a)allliabilitiesofthelimitedliabilitycompany,exceptliabilitiestomembers
on account of their contributionsto capital,havebeen paidor thereremainsproperty of
the limited liability company sufficient to pay them;
(b)theconsentofallmembersishad,unlessthereturnofthecontribution
to capital may be rightfully demanded as providedherein;and
(c)theArticlesofOrganizationorthese Articlesarecancelledorso
amended as to set out the withdrawal or reduction of the contributions of capital.
6.6Subjecttotheprovisionsof Article6.5,amembermayrightfullydemandthe
return of his or her contribution only upon thedissolutionof the limited liability company.
6.7Thelimitedliabilitycompanyshallhavethediscretiontodistributecash,notes,
property oracombination thereof to a memberin returnforhisorhercontribution to capital as
it deems appropriate.
6.8Amemberofthe limitedliabilitycompany mayhavethelimitedliabilitycompany
dissolvedand its affairs woundup when:
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(a)themember rightfullybutunsuccessfullyhas demanded the returnof his
or her contribution to capital; or
(b)theotherliabilitiesofthelimitedliabilitycompany havenotbeen paid, or
thelimitedliability company'spropertyis insufficientfor theirpaymentandthemember
would otherwise be entitled to the return of his or her contribution.
7.ALLOCATION OF PROFITSAND LOSSES
7.1For purposesof theseArticles and until determinedotherwise by themanager of
thelimitedliabilitycompany,insuchmanager'ssolediscretion,theterm"fiscalyear"shall
mean the calendar year.
7.2Theprofitsandlossesofthelimitedliabilitycompanyshallbedeterminedfor
eachfiscalyearofthelimitedliabilitycompanyinaccordancewiththeaccountingmethods
followed forfederal income tax purposes andotherwisein accordance with generally accepted
accountingprinciplesandproceduresappliedinaconsistentmannerandshallbedeemedto
havebeenearnedratablyduring thefiscal year. ForpurposesofSections702and 704ofthe
Codeor thecorresponding sectionsof anyfuture internal revenue law oranysimilar taxlaw of
anystateorjurisdiction,andforsuchpurposesonly,thedeterminationofeachmember's
distributiveshareofallitemsofincome,gain,deduction,loss,creditorallowanceforany
periodoryearshallbemadeinproportiontotheamountsofthemembers'respective
percentage interests in the limited liability company duringsuch periodor year.
7.3Theprofits ofthelimitedliabilitycompanyshall besharedamong themembers,
andthelossesofthelimitedliabilitycompanyshallbebornebythemembersinproportionto
each member's respective percentage interest in the limited liability company.
8.DISTRIBUTIONS
8.1TothefullestextentallowedbytheIllinoisLimitedLiabilityCompanyAct(the
"Act"),theNetCashFlow,ifany,ofthelimitedliabilitycompanyshallbedistributedatleast
annually among the members in proportion to each member's respectivepercentage interestin
the limited liability company. For such purpose, "Net Cash Flow" shall mean:
(a)Foreachcalendaryear,allcashincomeandreceiptsofwhatsoever
natureorkindreceivedbythelimitedliabilitycompanylessallcostsandexpenses
incurredorpaidby,andallnetadditionstoreservesof,thelimitedliabilitycompany
(whetheroperatingorcapitalcosts,and includingwithoutlimitation,allcosts toacquire
its interest in the real property described inArticle 3, payments upon the principal of any
indebtedness,securedorunsecured,ofthelimitedliabilitycompany,expendituresfor
capitalimprovement,additionsorreplacementsandanyotherexpenditureswhichare
notdeductibleinarrivingatthelimitedliability company'sfederaltaxableincome,such
asexpensesforrepairsandreservestomeetanticipatedexpensesasthemanager
shall deem to be reasonablynecessary); plus
(b)Any other funds deemedby the manager to be availablefor distribution.
8.2Thenetproceedsfromthesaleofalloranyportionofanyrealpropertyofthe
limitedliabilitycompanyshallbedistributedtothemembersinproportiontoeachmember's
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respective percentage in thelimited liability company.
9.DESIGNATION OF MANAGER
9.1Forthepurposeofconductingthebusinessandaffairsofthelimitedliability
company,^,anIllinoiscorporation,shallactasmanageruntilthefirstannualmeetingofthe
membersoruntilitssuccessoriselectedandqualifies.Theaddressofthemanagerisas
follows: ^, llinois ^, Attention: ^.
9.2Themanagerofthelimitedliabilitycompanyshallbeelectedannuallyata
meeting ofthe members or by otheractionof the membersto beheld or takenon each annual
anniversaryofthedateofthese Articles,or assoonthereafterassuchmeetingoractioncan
beheldortaken.Suchpersonwhoreceivestheapprovalofthosememberswhoownan
aggregateofmorethanfifty percent(50%)ofthetotalpercentageinterests ofallmembersof
thelimited liability company shall be electedmanager, andtheArticlesof Organization shallbe
amended toany extent requiredunder theAct. Thenumberofmanagersmay be increased or
decreased as determined alsoby the consent of those memberswhoserespectivepercentage
interests in the limitedliability companyin the aggregate exceedfifty percent (50%)of thetotal
percentage interests ofall members of the limited liability company.
9.3Whenevertheconsentorapprovalofthemembersisreferredtointhese
Articles,theconsentorapprovalbysufficientmembersauthorizedtomakesuchadecision
shallbeeffectivewhethervotesarecastatameetingofmembers(andwhetherornotallof
themembersareinattendanceatsuchmeeting),orbyformalorinformal,oralorwritten
instructionsof such members, orotherwise, andsuchdetermination so made bythemembers
shallbeeffectiveandlegallybindinguponallthemembers,regardlessofthenumberof
members who may actually vote or otherwise participatetherein.
10.RIGHTS AND POWERS OF THE MANAGER
10.1Themanagershallhavesoleandcompletecontrolofthemanagementand
operationoftheaffairsandbusinessofthelimitedliabilitycompanyandshalloperatethe
limitedliabilitycompanyforthebenefitofallofthemembers.Oneofthesignaturesofthe
managershallbe sufficient tobindthelimitedliabilitycompany(solongassuchsignatory has
the consent thereto of the other managers, if there is more than one manager).
10.2Themanager(acting forand on behalf andatthe expense ofthe limitedliability
company),inextensionandnotinlimitationoftherightsandpowersgivenbylaworbythe
otherprovisionsofthese Articles,shall,initssolediscretion,havefullandentireright,power
and authority in the management ofthe business andaffairs of the limited liability company:
(a)topurchase,acquire, own, lease,manageandoperate,either directly or
indirectly,therealestatedescribedinArticle3hereof(oranyinterestorinterests
therein), and to carry onany andall activities relatedthereto;andtoinvest andreinvest
anyfundsor moniesofthelimitedliability companyinsuchproperty,real,personal,or
mixed,as may beconsistentwiththe purposesof thelimitedliabilitycompany set forth
in Article 3 hereof;
(b)subjecttotheprovisionsof Article12.2hereof,tosell,withorwithout
notice,atpublicorprivatesale,andtoexchange,trade,transfer,assign,convey,
mortgageorotherwiseencumber,finance,refinance,leaseforanyterm,pledge,
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appraise,orhaveappraised,apportion,divideinkind,borrowon,hypothecateorgive
options foranyandallof the property ofthelimited liability company,whetherrealtyor
personalty, uponsuchtermsand conditions asthemanager,initssolediscretion,may
deemtobeinthebestinterestsofthelimitedliabilitycompany,andinsodoingto
execute, acknowledge,seal and deliver all necessary documents or instruments;
(c)tocausethelimitedliabilitycompanytoparticipateinanycapacity
(whetherasstockholder,bondholder,creditor,partner,venturer,member,fiduciary,
beneficiaryorotherwise)inanybusinessororganizationorenterprise,whether
incorporatedorunincorporated,inanymannerorformwhatsoever,totheextent
consistent with the purposesof the limited liability company set forth inArticle 3 hereof;
(d)toemployagents,servants,employeesandindependentcontractorsto
assistinorassumefullresponsibilityforthemanagementandoperationofthe
businessofthelimitedliabilitycompany,includingpersonsrelatedtooraffiliatedmath
themanager,and,ineachsuchinstance,topaythemreasonablecompensation
therefor;
(e)tocommenceordefendlitigationwithrespecttothelimitedliability
companyor anyofitsassetsor liabilities;tocompromise,settle,arbitrate, orotherwise
adjustclaimsinfavoroforagainstthe limited liability companyand toinsureitsassets
and undertakings and themanager against any andall risks;
(f)tomakeloansandextendcredittothelimitedliabilitycompany;to
borrowmoneyfromanymember,bank,lendinginstitution,andotherlenderforany
purposeofthelimitedliabilitycompany,andinconnectiontherewith,issuenotes,
debenturesoranyotherevidenceofindebtednessandencumbertheassetsofthe
limited liability companyto secure repayment ofborrowed sums; and no member, bank,
lendinginstitutionorotherlendertowhichapplicationismadeforaloanbythe
managershallberequiredtoinquireastothe purposes forwhichsuch loan is sought,
andasbetweenthislimitedliabilitycompanyandsuchmember,bank,lending
institutionorotherlender,itshallbeconclusivelypresumedthattheproceedsofsuch
loanare tobe and will be usedforthepurposes authorizedunder theseArticles;andto
obtainreplacement orrefinancing ofanyindebtedness orsecuritythereforwith respect
toanypropertyofthelimited liabilitycompany, ortorepaythesameinwholeor in part
and whether or not a prepayment penalty may beincurred;
(g)toown,improve,develop,operate,manageandleasetherealestate
describedin Article3hereof;toconstruct,alter,improve,demolishorrepairbuildings,
structures,orotherimprovementsonsuchrealestate;tosettleboundarylinesandto
grantandreserveeasements,covenants,rights-of-wayandotherrightsorprivileges
with respecttosuchrealestate;andtopartitionandtojoin withco-ownersandothers
in dealing with such real estate in any way;
(h)tomakesuchelectionsunderthetaxlawsoftheUnitedStates,the
severalstatesandotherrelevantjurisdictionsastothetreatmentofitemsofincome,
gain,loss, deductionandcredit,andasto all other relevantmatters, as themanager, in
its sole discretion, deem necessary or desirable; and
(i)tomakeinvestmentsingovernmentobligations,bankcertificatesof
deposit,short-termdebtsecurities,andshort-termcommercialpaper,pendinginitial
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investmentorfuturereinvestmentofthefundsofthelimitedliabilitycompany,andto
provide a sourcefrom which to meet contingencies.
10.3To theextent permitted bytheAct,all powers ofthemanager hereundermay be
exercisedbyit,andanyorallofsuchpowersmaybeassignedordelegatedbythemanager
toanyotherpersonorpersons,includingtheothermembersofthelimitedliabilitycompany
and other persons and entities related to or affiliated with the manager.
10.4In additionto the specificrightsandpowershereingrantedto the manager,the
manager shall possess and may enjoy andexercise all of the rights and powers ofmanageras
providedin the Act.
10.5Themanageroritsdelegate(s),asthecasemaybe,shalldevotesuchoftheir
timetothebusiness of thelimitedliabilitycompanyastheymay, intheirsolediscretion, deem
tobenecessary to conduct saidbusiness. Any of themembers and anymanagermay engage
inorpossessaninterestinotherbusinessventuresofeverynatureanddescription,whether
ornotincompetitionwiththebusinessofthelimitedliabilitycompany,independentlyorwith
others,including,but not limitedto,theownership,financing, leasing,operation,management,
syndication,brokerageanddevelopmentofrealproperty;andneitherthelimitedliability
companynorthemembersshallhaveanyrightbyvirtueoftheseArticlesinandtosuch
independent ventures or to the incomeor profits derivedtherefrom.
10.6Thelimitedliabilitycompanyshall,tothefullestextentpermittedbylaw,
indemnity,defendandsaveharmlessthemanagerandformermanager(s)fromanyandall
claims,actions,causesofaction,suits,proceedings,losses,damage,liability,costsand
expenses(including,withoutlimitation,attorneys'feesandexpenses,andcourtcosts)
assertedagainstorincurredorsustainedbythembyreasonofanyactperformedbythem
while manageroranyomissionontheir partwhilemanagertoact foror inbehalf of thelimited
liabilitycompanyandinfurtheranceofitsinterestprovidedthatthemanager(s)actedingood
faithandin a manner the manager(s) reasonably believedtobe in,or notopposedto, thebest
interestofthelimitedliabilitycompanyand,withrespecttoanycriminalactionorproceeding,
had noreason to believe that their conduct was unlawful.
10.7Themanagershallnotbeliableforanymistakesinjudgmentorforany
inadvertentfailuretoperformanyofitsobligationshereunder,orforanylossduetosuch
mistakeorfailuretoperform,orduetothenegligence,dishonesty,fraudorbadfaithofany
employee or other agentof the limited liability company.
10.8Themanager,onbehalfofthelimitedliabilitycompany,maycontractwithany
personrelatedtooraffiliatedwith themanager,andthemanager andsuchpersons relatedto
oraffiliatedwiththelimitedliabilitycompany(includinganyofthedirectors,officersor
employeesofsuchperson),theirdesigneesandnominees,shallnotbeliabletothelimited
liabilitycompanyortoanyofthemembersfordamages,losses,liabilityorexpensesofany
naturewhatsoeverresultingfrommistakesinjudgmentoranyactsoromissions,whetheror
not disclosed, unless caused by willful misconduct.
10.9Notwithstandinganythingtothecontrarycontainedherein,themanagershall
notperformanyactonbehalfofthelimitedliabilitycompanywithouttheapprovalofthose
memberswhoownanaggregateofmorethanfiftypercent(50%)(or75%inthecaseofthe
lastsentenceofArticle12.2below)ofthetotalpercentageinterestsofallmembersofthe
limitedliabilitycompany,whichapprovalmaybemade inwriting oratameetingofthelimited
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liabilitycompanyinaccordancewithArticle12.3below;providedthateachmember,byits
executionoftheseArticles,approvesoftheexecution,delivery andperformance,fromtimeto
time,of,anddirectsthemanagertoexecute,deliverandperform[identifyagreementsor
transactionswhichhavealreadybeenapprovedbyamajorityofthemembersand/ormaybe
entered into and performed without specific approval of the members].
10.10Unlessnotrequiredbyapplicablelaw,theidentification"alimitedliability
company"shallappearafterthenameofthelimitedliabilitycompanyonallcorrespondence,
stationery,cheeks,invoicesandanyandalldocumentsandpapersexecutedbythelimited
liability company.
11.LEGAL TITLE TO PROPERTY
Legaltitletoalloranyportionofthepropertyofthelimitedliabilitycompanyshallbe
heldinthenameof"ABCLimitedLiabilityCompany"or,totheextentallowedbytheAct,in
suchothernameasthemanager,initssolediscretion,shalldeterminetobeinthebest
interestofthelimitedliabilitycompany.Withoutlimitingtheforegoinggrantofauthority,tothe
extentpermittedbythe Act,themanagermayarrangetohavetitletakenandheldinitsown
nameorin thenames of trustees, nominees orstraw partiesfor the limitedliability company.It
is expressly understood andagreedthatthemannerof holdingtitle tothe property(or any part
thereof)ofthelimitedliabilitycompanyissolelyfortheconvenienceofthelimitedliability
company,andthat all such property shall be treatedas property of the limited liability company,
subject to the terms of theseArticles.
12.RIGHTS AND POWERS OF MEMBERS
12.1Withthe exceptionofthe manager(s)designatedin Article9hereinandasthey
shallbesoelectedfromtimetotime,nomemberofthelimitedliabilitycompanyshall
participateinthemanagementofthebusinessandaffairsofthelimitedliabilitycompany,
exceptas otherwise provided in theseArticles.
12.2Themanagerofthelimitedliabilitycompanyshallhavetheauthoritytoamend
these Articlesprovidedthatanysuchamendmentshallhavereceivedtheconsentofthose
memberswhoseaggregatepercentageinterestsinthelimitedliabilitycompanyexceedfifty
percent(50%)ofthetotalpercentageinterestsofallmembersofthelimitedliabilitycompany
andtheagreementofamajorityinnumberofthemanagers.Asale,exchange,lease,
mortgage,pledgeorothertransferofanysubstantialassetsofthelimitedliabilitycompany
shall requireconsentofmemberswhoseaggregatepercentageinterestsinthelimitedliability
companyexceedseventy-fivepercent(75%)ofthetotalpercentageinterestsofallmembers
of the limited liability company.
12.3Meetings ofthelimited liability companyforanypurpose shall beheldatthe call
ofthemanager. Allsuchmeetingsshallbeheldataplacedesignatedbythemanager,and
notice of suchlocation andof thedateandtime of the meeting shallbegiven bythe manager
toeachmemberatleastten(10)dayspriortosuchdate(unlesssuchnoticeiswaivedasto
any member, by such member).
12.4Themembers ofthelimitedliabilitycompanyshall have therightandthe power
to admit additional members upon the unanimous consentofall ofthe then members.
13.TRANSFERABILITYAND REDEMPTION OF INTERESTS
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13.1ExceptasotherwiseprovidedinthisArticle13,noneofthemembersofthe
limitedliability company shallhave the righttotransfer orassign any partor allof their interest
inthelimitedliabilitycompany,andanypurportedtransferorassignmentshallbevoidandof
noforceoreffect,andmaybeignoredbythelimitedliabilitycompanyanditsmembers.Ifall
membersofthe limited liabilitycompany otherthanthememberproposing todispose ofhisor
herinterestdonotapproveoftheproposedtransferorassignmentbyunanimouswritten
consent,thetransfereeofthemember'sinterestshallhavenorighttoparticipateinthe
managementofthebusinessandaffairsofthelimitedliabilitycompanyortobecomea
member.Inthatevent,thetransfereeshallonlybeentitledtoreceivetheshareofprofitsor
othercompensationbywayofincomeandthereturnofcontributions,towhichthatmember
otherwise would be entitled.
13.2IntheeventofanassignmentpursuanttothisArticle13,thelimitedliability
companyshall,upontheunanimouswrittenconsentofallremainingmembers,continuewith
respecttotheremainingmembers;appropriateadjustmentsshallbemadetotheircapital
accountsandpercentageintereststoreflecttheassignmentoftheinterestoftheassignor
member;andanelectionmaybemadebythemanager,initssolediscretion,toadjustthe
basis ofassets of the limited liability company.
13.3Notwithstandinganyprovisionsof Article13.1,notransferorassignmentofall
oranyportionofamember'sinterestinthelimitedliabilitycompanyshallbeeffective,unless
thetransferororassignordeliverstothelimitedliabilitycompanyawrittenopinionofcounsel
acceptableto the limited liability company, to the effect that:
(a)suchtransferorassignment,whenaddedtothetotalofallother
transfersandassignmentsofinterestinthelimitedliabilitycompanywithinthe
precedingtwelve(12)months,wouldnotresultinthelimitedliabilitycompanybeing
considered to have terminated within themeaning ofSection708 of the Code;
(b)suchtransferor assignmentwouldnotviolatetheSecuritiesActof1933,
asamended,or anystate securitiesof"BlueSky"lawsapplicabletothelimitedliability
company or the interest to be transferred or assigned; and
(c)such transferor assignment wouldnot cause thelimited liability company
toloseitsstatusasapartnershipforfederalincometaxpurposes,resultina
nonexempt"prohibitedtransaction"asdefinedunderSection4975oftheCode,with
respect tothe limitedliabilitycompany oranyof itsmanagersormembersor causethe
limitedliabilitycompanytobesubjecttoregistrationasaninvestmentcompanyunder
the Investment Company Act of 1940.
13.4Eachtransferororassignorandeachtransfereeorassigneeagreesthatitwill
pay all reasonable expenses, includingattorneys'fees,incurredby thelimited liability company
inconnectionwithatransferorassignmentofalloranyportionofsuchtransferor'sor
assignor'sinterestinthelimitedliabilitycompanybeingtransferredtosuchtransfereeor
assignee.
13.5A personwho is thetransfereeor assigneeof all or any portionofthe interestof
a member as permittedherebybut doesnot becomea substituted member andwho desires to
makeafurthertransferorassignment ofalloranyportionofsuchinterest,shallbesubjectto
alloftheprovisionsofthisArticle13tothesameextentandinthesamemannerasany
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member desiring to make a transfer or assignment of all or any portionofits interest.
14.DISSOLUTION
14.1Thelimitedliabilitycompanyshallbedissolvedupontheoccurrenceofanyof
the following events:
(a)whentheperiodfixedforthedurationofthelimitedliabilitycompany
shall expire;
(b)by the unanimous agreement of all members, which shall be in writing;
(c)uponthedeath,retirement,resignation,expulsion,bankruptcy,court
declarationofincompetencewithrespectto,ordissolutionof,amemberorthe
occurrence ofanyothereventthatterminatesthecontinuedmembershipofamember
in the limited liability company,unlesswithinninety (90)daysaftersuchevent there are
atleasttwo(2)remainingmembersandalltheremainingmemberselecttocontinue
the business of the limited liability company by unanimous agreement; or
(d)upontheoccurrenceofanyothereventspecifiedinsection35-1ofthe
Act.
14.2Assoonaspossiblefollowingtheoccurrenceofanyoftheeventsspecifiedin
thisArticleeffectingthe dissolutionofthe limited liabilitycompany, thelimited liabilitycompany
shallexecuteandfile,withtheSecretary,articlesofdissolutioninaccordancewithSections
35-15 and 35-20 of theAct and in such form as shall be prescribed by the Secretary.
14.3Uponadissolutionofthelimitedliabilitycompany,theassetsthereofshallbe
liquidated,andtheproceedstherefrom,togetherwithassetsdistributedinkindtotheextent
sufficienttherefor, shall be applied and distributed in order of priority as follows:
(a)First,tocreditorsof thelimitedliabilitycompany,includingmembers who
arecreditors,intheorderofpriorityprovidedbylaw,insatisfactionofliabilitiesofthe
limitedliabilitycompanyotherthanliabilitiesfordistributiontomembersunderSection
25-1 or Section 25-10 of theAct;
(b)Second,tomembersofthelimitedliabilitycompanyinrespectoftheir
shareoftheprofitsandothercompensationbywayofincomeontheircontributions;
and
(c)Third,tomembersofthelimitedliabilitycompanyinrespectoftheir
contributionsto capital.
14.4The manager of the limited liability companyshall not be personally liable for the
return or repayment of all or any portionofthe contributions ofany member; any such return or
repayment shall be made solely from assets ofthe limited liability company.
15.BANKACCOUNTS
Thefundsofthelimitedliabilitycompanyshallbedepositedinsuchbankaccountor
accounts as themanagershalldeemappropriate, inits sole discretion, and themanagershall
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arrangefortheappropriateconductofsuchaccounts.Thename"ABCLimitedLiability
Company,alimitedliabilitycompany"shallappearonallbankaccountsinwhichfundsofthe
limited liability company are deposited.
16.MISCELLANEOUS PROVISIONS
16.1UnlessotherwiseprovidedintheseArticles,nomembershallbeliabletoany
other memberortothelimitedliabilitycompanyforanygood faithactoromission toact inthe
exercise ofhis or her judgment under the provisions of theseArticles.
16.2Nothinghereincontainedshallbeconstruedtoconstituteanymemberhereof
theagentofanyothermemberortolimitinanymannerthemembersinthecarryingonof
their own respective business or activities.
16.3Theuseofanygenderhereinshallbedeemedtobeorincludetheother
genders,andtheuseofthesingularhereinshallbedeemedtobeorincludetheplural(and
viceversa),whereverappropriate.Theheadingshereinareinsertedonlyasamatterof
convenience andreference,andin no way define, limit or describethescope oftheseArticles,
or the intentof any provisions thereof.
16.4TheseArticlessetforthall(andareintendedbyallpartiesheretotobean
integrationofall)ofthecovenants,promises,agreements,warrantiesandrepresentations
amongthepartiesheretowithrespecttothelimitedliabilitycompany,thebusinessofthe
limitedliabilitycompanyandthepropertyofthelimitedliabilitycompany,andthereareno
covenants,promises,agreements,warrantiesorrepresentations,oralandwritten,expressor
implied, among them other thanas set forth herein.
16.5Nothing contained in these Articlesshallbe construed as requiringthe
commissionbyanypersonofanyactcontrarytoapplicablelaw,including,withoutlimitation,
Section4975oftheCode(totheextentapplicable).Whereverthereisanyconflictbetween
anyprovisionofthese Articlesandanystatute,law,ordinanceorregulationcontrarytowhich
thepartieshavenolegalrighttocontract,thelattershallprevail,butinsuchmannerthatthe
provision(s)oftheseArticlesthusaffectedshallbecurtailedandlimitedonlytotheextent
necessarytoconformwithsaidrequirementoflaw.Intheeventthatanypart,section,
paragraphorclauseoftheseArticlesshallbeheldtobeindefinite,invalidorotherwise
unenforceable,theentireArticlesshallnotfailonaccountthereof,andthebalanceofthe
Articles shall continue in full force andeffect.
16.6Thelimitedliabilitycompanyshallindemnity,defendandsaveharmlesseach
memberorformermemberofthelimitedliabilitycompanyagainstexpensesactuallyand
reasonablyincurredbyhim,heroritinconnectionwiththedefenseofanaction,suitor
proceeding, civil or criminal, inwhich he,sheor it is made a party by reasonof beingor having
beensuchmember, except inrelationtomattersastowhich he,she oritshallbe adjudged in
the action, suit or proceeding to be liable for gross negligence or willful misconduct.
17.GOVERNING LAW
ItistheintentionofthepartiesheretothattheseArticlesshallbegovernedbyand
construed andenforced in accordance with the internal laws ofthe State of Illinois.
18.BURDEN AND BENEFIT
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TheseArticles arebindinguponandshallinuretothe benefitoftheparties heretoand
their respective heirs, guardians, executors, administrators, personal and legal representatives,
andsuccessorsandtotheassignsofthepartiesheretototheextent,butonlytotheextent,
the same is provided for in accordance with, and permitted by, the provisions oftheseArticles.
19.NOTICES
Except as otherwise provided in these Articles, any notice, consent or other
communicationrequiredorpermittedhereundershallbeinwritingandshallbeaddressed,in
thecaseofthelimitedliabilitycompany, toitsprincipal placeof businessspecified inArticle2,
inthe case ofthe manager, to itsoffice at thelocation specifiedin Article9.1, and, inthecase
of any member, toits addresssetforth opposite itssignaturebelow, asspecified on or tosuch
otheraddressorpersonasanyoftheforegoingpartiesshallfurnishtotheotherpartiesin
writing; and any suchcommunicationso addressedshall be deemed tohavebeen given when
deliveredbyhandorontheearlierofactualreceiptandthree(3)businessdaysafterbeing
sentbyregisteredorcertifiedmail,postageprepaid,returnreceiptrequested,orone(1)
businessday afterbeingsent by overnight courier, telegram,or cable oronactual receiptafter
being sent by any means notspecified herein.
INWITNESSWHEREOF,thepartieshaveexecutedthese Articlesasofthedayand
year first above written.
Address: ^^
^Name printed: ^,
^a natural person
Percentage Interest: ^ %
Address: ^^,
^an Illinois corporation,
^
Percentage Interest: ^%By: ^
Its: ^
Address: ^^
^as custodian for
^
Percentage Interest: ^%^
By: ^
Name Printed: ^
Title: ^
SCHEDULE I
Identification of Real Estate
11
