member-managed form of operating agreement for the minnesota revised uniform limited liability...

8/9/2019 Member-Managed Form of Operating Agreement for the Minnesota Revised Uniform Limited Liability Company Act

1/32


2/32

NOTE TO USERS

"his is a preli#inary dra$t $or# #eant to en%ender dis&ussion o$ the appli&ation o$ the Minnesota'evised (ni$or# Li#ited liability Co#pany )&t. *t is not published $or any other purpose. *t issub+e&t to &han%e and &han%es ,ill not be published. "he $or# is not appropriate in #any

&ir&u#stan&es. (sers are responsible $or ensurin% &o#plian&e ,ith the Minnesota 'evised(ni$or# Li#ited Liability Co#pany )&t and other appli&able la, and &ir&u#stan&es. "his $or#should only be used ,ith the assistan&e o$ -uali$ied le%al and ta pro$essionals. /orepresentation is #ade that this $or# is suitable $or any purpose.

11520!v1


3/32

OPERATING AGREEMENT

OF

[NAME]

The Interests referred t !n th!s O"er#t!n$ A$ree%ent h#&e nt 'een re$!stered (nder the

Se)(r!t!es A)t f *+,, r #n- ther se)(r!t!es .#/s0 #nd s()h Interests %#- nt 'e

tr#nsferred /!th(t #""r"r!#te re$!str#t!n r the #!.#'!.!t- f #n e1e%"t!n fr% s()h

re$!str#t!n re2(!re%ents3

11520!v1


4/32

TABLE OF CONTENTS

P#$e

)'"*CL * DF*/*"*/S..........................................................................................................1*3* Ter%s Def!ned Here!n........................................................................................................1

*34 Cert#!n Inter"ret!&e M#tters............................................................................................5

)'"*CL ** 3(S*/SS P('PSS )/D FF*CS................................................................443* N#%eB(s!ness P(r"se....................................................................................................4434 P/ers.................................................................................................................................443, Pr!n)!"#. Off!)e..................................................................................................................4435 Re$!stered Off!)e #nd Re$!stered A$ent..........................................................................4436 A%end%ent f the Art!).es................................................................................................4437 Effe)t!&e D#te.....................................................................................................................4438 L!#'!.!t- f Me%'ers.........................................................................................................4439 Interest Nt A)2(!red fr Res#.e......................................................................................6

43+ R#t!f!)#t!n f Cert#!n A)ts...............................................................................................6

)'"*CL *** C)P*")L C/"'*3("*/S )/D L)/S.......................................................6,3* C#"!t#. Cntr!'(t!ns........................................................................................................6,34 Add!t!n#. C#"!t#. Cntr!'(t!ns.....................................................................................6,3, C#"!t#. A))(nts................................................................................................................7,35 C#"!t#. :!thdr#/#. R!$hts0 Interest #nd Pr!r!t-..........................................................,36 L#ns...................................................................................................................................

)'"*CL *8 )LLC)"*/S )/D D*S"'*3("*/S............................................................53* Nn;L!2(!d#t!n C#sh D!str!'(t!ns................................................................................534 L!2(!d#t!n D!str!'(t!ns..................................................................................................53, In)%e0 Lsses #nd D!str!'(t!&e Sh#res f T#1 Ite%s....................................................535 A..)#t!n f In)%e0 Lss #nd Cred!ts.........................................................................10536 S"e)!#. R(.es.....................................................................................................................10537 [:!thh.d!n$ f D!str!'(t!ns.........................................................................................1!538 N Pr!r!t-........................................................................................................................1!539 T#1 :!thh.d!n$...............................................................................................................1!53+ Reser&es............................................................................................................................1!

)'"*CL 8 M)/)9M/"...................................................................................................1!63* M#n#$e%ent.....................................................................................................................1!634 Meet!n$s f Me%'ers< P.#)e f Meet!n$s......................................................................1:

63, =(r(%.............................................................................................................................1:635 Pr1!es...............................................................................................................................1:636 A)t!n :!th(t Meet!n$..................................................................................................1:637 Nt!)e f Meet!n$s............................................................................................................1:638 :#!&er f Nt!)e...............................................................................................................15639 E1e)(t!n f D)(%ents F!.ed /!th M!nnest#.............................................................1563+ Vt!n$ '- Cert#!n H.ders..............................................................................................1563*> Vt!n$ Re2(!re%ent.........................................................................................................15

i11520!v1


5/32

63** M!n(tes f Meet!n$s #nd Re)rd f Other A)t!ns.......................................................1463*4 L!%!t#t!n f L!#'!.!t-< Inde%n!f!)#t!n........................................................................1463*, Cntr#)ts /!th Me%'ers r The!r Aff!.!#tes.................................................................16

)'"*CL 8* )CC(/"*/9 )/D 3)/; )CC(/"S........................................................16

73* F!s)#. Ye#r.........................................................................................................................16734 B?s #nd Re)rds...........................................................................................................1673, F!n#n)!#. Re"rts.............................................................................................................16735 T#1 Ret(rns #nd E.e)t!ns< T#1 M#tters Me%'er........................................................16736 Se)t!n 865 E.e)t!n.........................................................................................................17737 B#n? A))(nts..................................................................................................................17

)'"*CL 8** "')/SF'S F */"'S"S )/D 8/"S F M*SCLL)/(S.............................................................................................21+3* T!t.e t the Pr"ert-.........................................................................................................21

+34 N#t(re f Interest !n the C%"#n-.................................................................................21+3, Or$#n!@#t!n#. E1"enses.................................................................................................21+35 Nt!)es...............................................................................................................................21+36 :#!&er f Def#(.t.............................................................................................................21+37 N Th!rd P#rt- R!$hts.....................................................................................................21+38 Ent!re A$ree%ent.............................................................................................................21+39 C%".ete St#te%ent f E1"e)t#t!ns.............................................................................22+3+ A%end%ents t th!s A$ree%ent......................................................................................22+3*> Se&er#'!.!t-.......................................................................................................................22+3** B!nd!n$ A$ree%ent..........................................................................................................2!+3*4 C(nter"#rts....................................................................................................................2!

+3*, G&ern!n$ L#/.................................................................................................................2!+3*5 Re%ed!es...........................................................................................................................2!+3*6 Le$#. Re"resent#t!n.......................................................................................................2!

SC=D(L )

ii11520!v1


6/32

OPERATING AGREEMENT

OF

[NAME]

"his peratin% )%ree#ent ?this @A$ree%entAB is #ade and entered into as o$ E 20E

a#on% E the persons set $orth on S&hedule )E.

Ehave &ausedE intend to &auseE E ?the @C%"#n-AB to be $or#ed as a li#itedliability &o#pany under the Minnesota 'evised (ni$or# Li#ited Liability Co#pany )&t &hapter!22C o$ the Minnesota statutes and pursuant thereto the parties hereby adopt this )%ree#ent asthe operatin% a%ree#ent o$ the Co#pany.

"he parties hereto a%ree as $ollo,sG

ARTICLE I ; DEFINITIONS

I3* Ter%s Def!ned Here!n

. )s used herein the $ollo,in% ter#s have the $ollo,in% #eanin%sG

@A)tA #eans the Minnesota 'evised (ni$or# Li#ited Liability Co#pany )&t &hapter!22C o$ the Minnesota statutes.

@Ad(sted C#"!t#. A))(nt Def!)!tA #eans ,ith respe&t to any Me#ber the de$i&itbalan&e i$ any in su&h Me#berHs Capital )&&ount as o$ the end o$ the relevant $is&al year a$ter%ivin% e$$e&t to the $ollo,in% ad+ust#entsG ?iB in&reased $or any a#ounts su&h Me#ber isun&onditionally obli%ated to restore and the a#ount o$ su&h Me#berHs share o$ Co#panyMini#u# 9ain and Me#ber Mini#u# 9ain a$ter taIin% into a&&ount any &han%es durin% su&hyear and ?iiB redu&ed by the ite#s des&ribed in "reasury 'e%ulation 1.60:1?bB?2B?iiB?dB?:B ?5Band ?4B.

@Ad%!n!str#trA #eans the Person appointed $ro# ti#e to ti#e pursuant to Se&tion 5.1.

@A$ree%entA #eans this peratin% )%ree#ent o$ the Co#pany.

@Art!).esA #eans the arti&les o$ or%aniKation o$ the Co#pany $iled ,ith the MinnesotaSe&retary o$ State.

@A!.#'.e C#shA #eans sub+e&t to Se&tion !22C.0:05 o$ the )&t the a%%re%ate a#ounto$ &ash on hand or in banI #oney #arIet or si#ilar a&&ounts o$ the Co#pany as o$ the end o$

ea&h $is&al -uarter or other appli&able period derived $ro# any sour&e ?other than CapitalContributions and Li-uidation Pro&eedsB that the Me#bers deter#ine is available $or distributionto the Me#bers a$ter taIin% into a&&ount any a#ount re-uired or appropriate to #aintain areasonable a#ount o$ 'eserves.

@B#n?r("t)-A ,ith respe&t to any Person #eans the entry o$ an order $or relie$ ,ithrespe&t to su&h Person under the $ederal banIrupt&y &ode ?as set $orth in "itle 11 o$ the (nitedStates CodeB or the insolven&y o$ su&h Person under any state insolven&y a&t.

11520!v1


7/32


8/32

'e%ulation 1.60:1?bB?2B?ivB?iBB and not other,ise taIen into a&&ount in &o#putin% taablein&o#e or loss ,ill be subtra&ted and ?ivB taable in&o#e or loss ,ill be ad+usted to re$le&t anyite# o$ in&o#e or loss spe&ially allo&ated in )rti&le *8.

@In!t!#. C#"!t#. Cntr!'(t!nsA #eans the Capital Contributions #ade by the Me#bers

pursuant to Se&tion !.1.

@InterestA re$ers to all o$ a Me#berHs ri%hts and interests in the Co#pany in su&hMe#berHs &apa&ity as a Me#ber all as provided in the )rti&les this )%ree#ent and the )&tin&ludin% the Me#berHs interest in the &apital in&o#e %ain dedu&tions losses and &redits o$ theCo#pany.

@L!2(!d#t!n Pr)eedsA #eans all Property at the ti#e o$ li-uidation o$ the Co#panyand all pro&eeds thereo$.

@M#r!t- !n InterestA #eans any Me#ber or %roup o$ Me#bers holdin% an a%%re%ate o$#ore than 50 o$ the Per&enta%e *nterests held by all Me#bers. &ept as epressly set $orth

herein a#on% other thin%s this standard repla&es ?iB any re-uire#ent under the )&t that anevent transa&tion or de&ision be #ade by a #a+ority o$ the #e#bers or the liIe and ?iiB there-uire#ent that ea&h #e#ber has e-ual ri%hts in the #ana%e#ent and &ondu&t o$ the business o$the Co#pany as set $orth in Se&tion !22C.0:06 Subd. 2 o$ the )&t.

@Me%'erA #eans ea&h Person ee&utin% this )%ree#ent and ea&h Person ,ho issubse-uently ad#itted to the Co#pany as a Me#ber pursuant to Se&tion 6.! or Se&tion 6.5 otherthan a Person ,ho &eases to be a Me#ber o$ the Co#pany pursuant to Se&tion 6.6.

@Me%'er M!n!%(% G#!nA has the sa#e #eanin% as partner nonre&ourse debt #ini#u#%ain as set $orth in "reasury 'e%ulation 1.60:2?iB?!B.


9/32

/onre&ourse Dedu&tions ,ith respe&t to a Me#ber /onre&ourse Debt $or a $is&al year e-uals thenet in&rease durin% the year in the a#ount o$ the Me#ber Mini#u# 9ain ?deter#ined ina&&ordan&e ,ith "reasury 'e%ulation 1.60:2?iBB redu&ed ?but not belo, KeroB by the a%%re%atedistributions #ade durin% the year o$ pro&eeds o$ Me#ber /onre&ourse Debt and allo&able to thein&rease in Me#ber Mini#u# 9ain deter#ined a&&ordin% to the provisions o$ "reasury

'e%ulation 1.60:2?iB.

@Nnre)(rse De'tA #eans a Co#pany liability ,ith respe&t to ,hi&h no Me#ber or arelated person bears the e&ono#i& risI o$ loss as deter#ined under "reasury 'e%ulation 1.6521?aB?2B and 1.6522.

@Nnre)(rse Ded()t!nsA has the sa#e #eanin% as nonre&ourse dedu&tions set $orth in"reasury 'e%ulation 1.60:2?&B. 9enerally the a#ount o$ /onre&ourse Dedu&tions $or a $is&alyear e-uals the net in&rease in the a#ount o$ Co#pany Mini#u# 9ain ?deter#ined ina&&ordan&e ,ith "reasury 'e%ulation 1.60:.2?dBB durin% su&h year redu&ed ?but not belo,KeroB by the a%%re%ate distributions #ade durin% the year o$ pro&eeds o$ a /onre&ourse Debt thatare allo&able to the in&rease in Co#pany Mini#u# 9ain deter#ined a&&ordin% to the provisionso$ "reasury 'e%ulation 1.60:2?&B and ?hB.

@Per)ent#$e InterestA o$ ea&h Me#ber ,ill be as set $orth on S&hedule ) as ad+usted$ro# ti#e to ti#e as re-uired or per#itted by the provisions o$ this )%ree#ent.

@Per%!tted Tr#nsfereeA #eans ?aB any lineal des&endants o$ a Me#ber and ?bB anytrust i$ ?iB the trust ,as &reated by and is revo&able by a Me#ber or Per#itted "rans$eree ?iiB theMe#ber or the Per#itted "rans$eree is and re#ains the pri#ary bene$i&iary o$ su&h trust durin%his or her li$eti#e and ?iiiB the trustee be&o#es a party to this )%ree#ent by ee&utin% anddeliverin% a &onsent to the Co#pany.

@PersnA #eans any individual partnership li#ited liability &o#pany &orporation&ooperative trust or other entity.

@Pr!%e R#teA #eans the annual rate o$ interest reported $ro# ti#e to ti#e in The WallStreet Journalas the base rate on &orporate loans at lar%e #oney &enter &o##er&ial banIs.

@Pr"ert-A #eans all properties and assets that the Co#pany #ay o,n or other,ise havean interest in $ro# ti#e to ti#e.

@Reser&esA #eans a#ounts set aside $ro# ti#e to ti#e by the Me#bers pursuant toSe&tion :..

@Re.(#t!nA #eans the o&&urren&e o$ any event des&ribed in &lause ?vB ?,B ?B ?yB or?KB o$ Se&tion !.!?&B as a result o$ ,hi&h the booI value o$ Property is ad+usted by the Co#panyto its Fair 8alue.

@S('st!t(te Me%'erA has the #eanin% set $orth in Se&tion 6.!.

@S("er;M#r!t- !n InterestA #eans any Me#ber or %roup o$ Me#bers holdin% ana%%re%ate o$ #ore than E o$ the Per&enta%e *nterests held by all Me#bers.

:

11520!v1


10/32

@T#1 M#tters Me%'erA #eans the Person desi%nated pursuant to Se&tion 4.: torepresent the Co#pany in #atters be$ore the *nternal 'evenue Servi&e.

@Tr#nsferA #eans ?iB ,hen used as a verb to %ive sell e&han%e assi%n trans$erpled%e hypothe&ate be-ueath devise or other,ise dispose o$ or en&u#ber and ?iiB ,hen used as

a noun the nouns &orrespondin% to su&h verbs in either &ase voluntarily or involuntarily byoperation o$ la, or other,ise.

@Tr#nsfereeA has the #eanin% set $orth in Se&tion 6.2.

@Tr#nsferrA has the #eanin% set $orth in Se&tion 6.2.

@Tre#s(r- Re$(.#t!nsA #eans the re%ulations pro#ul%ated by the "reasury Depart#ent,ith respe&t to the Code.

I34 Cert#!n Inter"ret!&e M#tters

3 *n &onstruin% this )%ree#ent it is the intent o$ the parties thatG

# the &aptions o$ the arti&les se&tions or subse&tions or to the "able o$Contents in this )%ree#ent are inserted $or &onvenien&e in lo&atin% the provisions o$ this)%ree#ent and not as an aid in its &onstru&tion

' no &onsideration #ay be %iven to the $a&t or presu#ption that one partyhad a %reater or lesser hand in dra$tin% this )%ree#ent

) ea#ples are not to be &onstrued to li#it epressly or by i#pli&ation the#atter they illustrate

d the ,ord @in&ludesA and its derivatives #eans @in&ludes but is not li#itedtoA and &orrespondin% derivative epressions

e a de$ined ter# has its de$ined #eanin% throu%hout this )%ree#ent andea&h ehibit and s&hedule to this )%ree#ent re%ardless o$ ,hether it appears be$ore or a$ter thepla&e ,here it is de$ined

f the #eanin%s o$ the de$ined ter#s are appli&able to both the sin%ular andplural $or#s thereo$

$ all re$eren&es to pri&es values or #onetary a#ounts re$er to (nited States

dollars

h all re$eren&es to arti&les se&tions para%raphs &lauses ehibits ors&hedules re$er to arti&les se&tions para%raphs and &lauses o$ this )%ree#ent and to ehibits ors&hedules atta&hed to this )%ree#ent unless epressly provided other,ise

! ea&h ehibit and s&hedule to this )%ree#ent is a part o$ this )%ree#entand re$eren&es to the ter# @)%ree#entA are dee#ed to in&lude ea&h su&h ehibit and s&hedule to

5

11520!v1


11/32

this )%ree#ent e&ept to the etent that the &ontet indi&ates other,ise but i$ there is any&on$li&t or in&onsisten&y bet,een the body o$ this )%ree#ent and any ehibit or s&hedule theprovisions o$ the body o$ this )%ree#ent ,ill &ontrol

the ,ords @this )%ree#entA @hereinA @herebyA @hereunderA and ,ords

o$ si#ilar i#port re$er to this )%ree#ent as a ,hole and not to any parti&ular arti&le se&tion orother subdivision unless epressly so li#ited

? the ,ord @orA is dis+un&tive but not ne&essarily e&lusive

. all re$eren&es to a%ree#ents or la,s are dee#ed to re$er to su&ha%ree#ents or la,s as a#ended or revised or as in e$$e&t at the appli&able ti#e in&ludin%&orrespondin% provisions o$ $uture a%ree#ents or la,s and

% as used in this )%ree#ent a&&ountin% ter#s not de$ined in this)%ree#ent and a&&ountin% ter#s partly de$ined to the etent not de$ined have the respe&tive#eanin%s %iven to the# under (nited States %enerally a&&epted a&&ountin% prin&iples.

ARTICLE II ; BUSINESS PURPOSES AND OFFICES

II3* N#%eB(s!ness P(r"se

3 "he na#e o$ the Co#pany is stated in the )rti&les. "he business purpose o$ theCo#pany is to E and to do any and all thin%s ne&essary appropriate or in&idental thereto. "heCo#pany is $or#ed only $or su&h business purpose and ,ill not be dee#ed to &reate anya%ree#ent a#on% the Me#bers ,ith respe&t to any other a&tivities ,hatsoever other than thea&tivities ,ithin su&h business purpose.

II34 P/ers

3 *n addition to the po,ers and privile%es &on$erred upon the Co#pany by la, and thosein&idental thereto the Co#pany has the sa#e po,ers as a natural person to do all thin%sne&essary or &onvenient to &arry out its business and a$$airs.

II3, Pr!n)!"#. Off!)e

3 "he prin&ipal o$$i&e o$ the Co#pany ,ill be lo&ated at E or at su&h other pla&e as theMe#bers #ay deter#ine $ro# ti#e to ti#e.

II35 Re$!stered Off!)e #nd Re$!stered A$ent

3 "he lo&ation o$ the re%istered o$$i&e and the na#e o$ the re%istered a%ent ?i$ anyB o$ theCo#pany in the State o$ Minnesota are stated in the )rti&les. "he re%istered o$$i&e andre%istered a%ent o$ the Co#pany in the State o$ Minnesota #ay be &han%ed $ro# ti#e to ti#eby the Me#bers.

II36 A%end%ent f the Art!).es

4

11520!v1


12/32

3 "he Co#pany shall a#end the )rti&les at su&h ti#e or ti#es and in su&h #anner as #aybe re-uired by the )&t and this )%ree#ent.

II37 Effe)t!&e D#te

3 "his )%ree#ent is e$$e&tive as o$ the date that the )rti&les ,ere $iled ,ith the Se&retaryo$ State o$ Minnesota.

II38 L!#'!.!t- f Me%'ers

3 /o Me#ber solely by reason o$ bein% a Me#ber ,ill be liable under a +ud%#entde&ree or order o$ a &ourt or in any other #anner $or a debt obli%ation or liability o$ theCo#pany ,hether arisin% in &ontra&t tort or other,ise or $or the a&ts or o#issions o$ any otherMe#ber a%ent o$$i&er or e#ployee o$ the Co#pany.

II39 Interest Nt A)2(!red fr Res#.e

3 a&h Me#ber hereby represents and ,arrants to the Co#pany and to ea&h otherMe#ber thatG ?aB in the &ase o$ a Me#ber ,ho is not a natural person the Me#ber is dulyor%aniKed validly eistin% and in %ood standin% under the la, o$ its state o$ or%aniKation andthat it has the re-uisite po,er and authority to ee&ute this )%ree#ent and to per$or# itsobli%ations hereunder ?bB the Me#ber is a&-uirin% an *nterest $or su&h Me#berHs o,n a&&ountas an invest#ent and ,ithout an intent to distribute su&h *nterest and ?&B the Me#bera&Ino,led%es that the *nterests have not been re%istered under the Se&urities )&t o$ 1!! or anystate se&urities la,s and su&h Me#berHs *nterest #ay not be resold or trans$erred by the Me#ber,ithout appropriate re%istration or the availability o$ an ee#ption $ro# su&h re-uire#ents.

II3+ R#t!f!)#t!n f Cert#!n A)ts

. "he Co#pany and ea&h initial Me#ber hereby rati$y all a&tions taIen be$ore theCo#pany had at least one Me#ber pursuant to Se&tion !22C.0105 Subd. ! o$ the )&t.

ARTICLE III ; CAPITAL CONTRIBUTIONS AND LOANS

III3* C#"!t#. Cntr!'(t!ns

3 (pon the ee&ution o$ this )%ree#ent ea&h Me#ber ,ill #aIe an initial &ash&ontribution to the &apital o$ the Co#pany in the a#ount set $orth opposite su&h Me#berHs na#eon S&hedule ). /o &reditor o$ the Co#pany shall rely upon or en$or&e an a%ree#ent to #aIe a&apital &ontribution to the Co#pany under Se&tion !22C.0:0! or other,ise under the )&t.

III34 Add!t!n#. C#"!t#. Cntr!'(t!ns

3 "he Me#bers #ay $ro# ti#e to ti#e &ause the Co#pany to raise additional &apital$ro# the Me#bers or $ro# Persons ,ho are not Me#bers ?a @ C#"!t#.In)re#seAB and to issueadditional *nterests in respe&t thereo$. [No Member will have any preemptive right to make aninvestment in the Company with respect to a Capital Increase by reason of such Members

6

11520!v1


13/32

ownership of an Interest in the Company!" OR [In connection with a Capital Increase#

Members will have only the preemptive rights $escribe$ in this Section %! an$ no Member will

have any other preemptive rights to make an investment in the Company with respect to aCapital Increase by reason of such Members ownership of an Interest in the Company! In the

event of a propose$ Capital Increase# then each Member as of such recor$ $ate 'not e(cee$ing

)* $ays prece$ing the $ate for the allotment of rights+ as fi(e$ therefor by the Members 'or# if norecor$ $ate is set# as of the ,*th $ay prece$ing the $ate of such propose$ Capital Increase 'the

-RecordDate.+ will have the preemptive right to invest in the Company on the same basis as

the propose$ Capital Increase in an amount e/ual to the 0ercentage Interest hel$ by suchMember on the 1ecor$ 2ate multiplie$ by the amount of capital being raise$ in such Capital

Increase! The Members may fi( the perio$ within which such right may be e(ercise$# which

perio$# however# will e(ten$ for not less than seven $ays nor more than %* $ays after notice of

such right is given to the Members! 3nless such right is e(ercise$ within such perio$# such rightwill# upon the e(piration of such perio$# be $eeme$ to be waive$ for all purposes in respect of

such propose$ Capital Increase!" /o Me#ber is obli%ated to #aIe any )dditional Contributionsto the Co#pany and a&&ordin%ly no Me#ber ,ill be liable $or da#a%e to the Co#pany or any

other Me#ber as a result o$ the $ailure o$ su&h Me#ber to #aIe any )dditional Contributions./o &reditor o$ the Co#pany shall rely upon or en$or&e an a%ree#ent to #aIe a &apital&ontribution to the Co#pany under Se&tion !22C.0:0! or other,ise under the )&t. S&hedule )shall be updated $ro# ti#e to ti#e pursuant to Se&tion 7.5 in order to a&&ount $or the issuan&e o$additional *nterests i$ any in &onne&tion ,ith a Capital *n&rease.

III3, C#"!t#. A))(nts

3

# ) separate Capital )&&ount ,ill be #aintained $or ea&h Me#ber and ea&h"rans$eree. a&h Me#berHs Capital )&&ount ,ill be ?iB in&reased by ?)B the a#ount o$ #oney

&ontributed by su&h Me#ber ?3B the Fair 8alue o$ property &ontributed by su&h Me#ber ?net o$liabilities se&ured by su&h &ontributed property that the Co#pany is &onsidered to assu#e or taIesub+e&t to under Code 652B ?CB allo&ations to su&h Me#ber pursuant to )rti&le *8 o$Co#pany in&o#e and %ain ?or ite#s thereo$B and ?DB to the etent not already netted out under&lause ?iiB?3B belo, the a#ount o$ any Co#pany liabilities assu#ed by the Me#ber or ,hi&hare se&ured by any property distributed to su&h Me#ber and ?iiB de&reased by ?)B the a#ount o$#oney distributed to su&h Me#ber ?3B the Fair 8alue o$ property distributed to su&h Me#ber?net o$ liabilities se&ured by su&h distributed property that su&h Me#ber is &onsidered to assu#eor taIe sub+e&t to under Code 652B ?CB allo&ations to su&h Me#ber pursuant to )rti&le *8 o$Co#pany loss and dedu&tions ?or ite#s thereo$B and ?DB to the etent not already netted outunder &lause ?iB?3B above the a#ount o$ any liabilities o$ the Me#ber assu#ed by the Co#pany

or ,hi&h are se&ured by any property &ontributed by su&h Me#ber to the Co#pany.

' *$ any *nterest is trans$erred in a&&ordan&e ,ith the ter#s o$ this)%ree#ent the "rans$eree ,ill su&&eed to the Capital )&&ount o$ the "rans$eror to the etent itrelates to the trans$erred interest and the Capital )&&ount o$ ea&h "rans$eree ,ill be in&reasedand de&reased in the #anner set $orth above.

7

11520!v1


14/32

) *n the event o$ ?vB an additional &apital &ontribution by an eistin% or anadditional Me#ber o$ #ore than a $e minimis a#ount that results in a shi$t in Per&enta%e*nterests ?,B the distribution by the Co#pany to a Me#ber o$ #ore than a $e minimisa#ount o$property as &onsideration $or an *nterest ?B the %rant o$ #ore than a $e minimis *nterest in theCo#pany as &onsideration $or the provision o$ servi&es to or $or the bene$it o$ the Co#pany by

an eistin% Me#ber a&tin% in a Me#ber &apa&ity or by a ne, Me#ber a&tin% in a Me#ber&apa&ity or in anti&ipation o$ bein% a Me#ber ?yB in &onne&tion ,ith the issuan&e by theCo#pany o$ a non&o#pensatory option ?other than an option $or a $e minimis *nterestB or ?KB theli-uidation o$ the Co#pany ,ithin the #eanin% o$ "reasury 'e%ulation 1.60:1?bB?2B?iiB?%B thebooI basis o$ the Property ,ill be ad+usted to Fair 8alue and the Capital )&&ounts o$ all theMe#bers ,ill be ad+usted si#ultaneously to re$le&t the a%%re%ate net ad+ust#ent to booI basis asi$ the Co#pany re&o%niKed %ain or loss e-ual to the a#ount o$ su&h a%%re%ate net ad+ust#entprovided ho,ever that the ad+ust#ents resultin% $ro# &lauses ?vB ?,B ?B or ?yB above ,ill be#ade only i$ the Me#bers deter#ine that su&h ad+ust#ents are ne&essary or appropriate to re$le&tthe relative e&ono#i& interests o$ the Me#bers.

d *$ Property is sub+e&t to Code 60:?&B or is revalued on the booIs o$ theCo#pany in a&&ordan&e ,ith the pre&edin% para%raph pursuant to 1.60:1?bB?2B?ivB?$B o$ the"reasury 'e%ulations the Me#bersH Capital )&&ounts ,ill be ad+usted in a&&ordan&e ,ith 1.60:1?bB?2B?ivB?%B o$ the "reasury 'e%ulations $or allo&ations to the Me#bers o$ depre&iationa#ortiKation and %ain or loss as &o#puted $or booI purposes ?and not ta purposesB ,ith respe&tto su&h Property.

e "he $ore%oin% provisions o$ this Se&tion !.! and the other provisions o$this )%ree#ent relatin% to the #aintenan&e o$ Capital )&&ounts are intended to &o#ply ,ith"reasury 'e%ulation 1.60:1?bB and 1.60:2 and ,ill be interpreted and applied in a #anner&onsistent ,ith su&h "reasury 'e%ulations. *$ it is deter#ined by the Me#bers that it is prudentor advisable to #odi$y the #anner in ,hi&h the Capital )&&ounts or any in&reases or de&reases

thereto are &o#puted in order to &o#ply ,ith su&h "reasury 'e%ulations the Me#bers #ay&ause su&h #odi$i&ation to be #ade provided that it is not liIely to have a #aterial e$$e&t on thea#ounts distributable to any Me#ber upon the dissolution o$ the Co#pany and the)d#inistrator upon any su&h deter#ination by the Me#bers is e#po,ered to a#end or #odi$ythis )%ree#ent not,ithstandin% any other provision o$ this )%ree#ent.

III35 C#"!t#. :!thdr#/#. R!$hts0 Interest #nd Pr!r!t-

3 &ept as epressly provided in this )%ree#ent no Me#ber is entitled to ,ithdra, orredu&e su&h Me#berHs Capital )&&ount or to re&eive any Distributions. /o Me#ber is entitledto de#and or re&eive any Distribution in any $or# other than in &ash. /o Me#ber is entitled to

re&eive or be &redited ,ith any interest on the balan&e in su&h Me#berHs Capital )&&ount at anyti#e. &ept as #ay be other,ise epressly provided herein no Me#ber has any priority overany other Me#ber as to the return o$ the balan&e in su&h Me#berHs Capital )&&ount.

III36 L#ns

3 )ny Me#ber #ay #aIe a loan to the Co#pany in su&h a#ounts at su&h ti#es?in&ludin% in lieu o$ a &apital &ontribution under Se&tion !.2B and on su&h ter#s and &onditions

11520!v1


15/32

as #ay be approved by a Ma+ority in *nterest. Loans by any Me#ber to the Co#pany ,ill not be&onsidered &ontributions to the &apital o$ the Co#pany.

ARTICLE IV ; ALLOCATIONS AND DISTRIBUTIONS

IV3* Nn;L!2(!d#t!n C#sh D!str!'(t!ns

3 "he a#ount i$ any o$ )vailable Cash ,ill be deter#ined by the Me#bers -uarterlyEand ,ill be distributed to the Me#bers ,ithin :5 days $ollo,in% the end o$ ea&h $is&al -uarterEin a&&ordan&e ,ith their respe&tive Per&enta%e *nterests.

IV34 L!2(!d#t!n D!str!'(t!ns

3 Li-uidation Pro&eeds ,ill be distributed in the $ollo,in% order o$ priorityG

# )s set $orth in Se&tion !22C.0606 Subd.1 o$ the )&t.

' /ot,ithstandin% Se&tion !22C.0606 Subd. 2 o$ the )&t the re#ainder tothe Me#bers in a&&ordan&e ,ith and to the etent o$ their respe&tive Capital )&&ount balan&esa$ter taIin% into a&&ount the allo&ation o$ all *n&o#e or Loss pursuant to this )%ree#ent $or the$is&al year or years in ,hi&h the Co#pany is li-uidated.

IV3, In)%e0 Lsses #nd D!str!'(t!&e Sh#res f T#1 Ite%s

3 "he Co#panyHs *n&o#e or Loss as the &ase #ay be $or ea&h $is&al year o$ theCo#pany as deter#ined in a&&ordan&e ,ith su&h #ethod o$ a&&ountin% as #ay be adopted $orthe Co#pany pursuant to )rti&le 8* ,ill be allo&ated to the Me#bers $or both $inan&iala&&ountin% and in&o#e ta purposes as set $orth in this )rti&le *8 e&ept as other,ise provided$or herein or unless all Me#bers a%ree other,ise.

IV35 A..)#t!n f In)%e0 Lss #nd Cred!ts

3

# *n&o#e or Loss ?other than $ro# transa&tions in li-uidation o$ theCo#panyB and Credits $or ea&h $is&al year ,ill be allo&ated a#on% the Me#bers in a&&ordan&e,ith their Per&enta%e *nterests. "o the etent there is any &han%e in the respe&tive Per&enta%e*nterests o$ the Me#bers durin% the year *n&o#e Loss and Credits ,ill be allo&ated a#on% thepread+ust#ent and postad+ust#ent periods as provided in Se&tion :.5?IB.

' *n&o#e $ro# transa&tions in li-uidation o$ the Co#pany ,ill be allo&ateda#on% the Me#bers in the $ollo,in% order o$ priorityG

! to those Me#bers i$ any ,ith ne%ative Capital )&&ount balan&es?deter#ined prior to taIin% into a&&ount any Distributions pursuant to Se&tion :.2B in theratio that su&h ne%ative balan&es bear to ea&h other until all su&h Me#bersH Capital)&&ount balan&es e-ual Kero then

10

11520!v1


16/32

!! the re#ainder to the Me#bers in a&&ordan&e ,ith their respe&tivePer&enta%e *nterests.

) Loss $ro# transa&tions in li-uidation o$ the Co#pany ,ill be allo&ateda#on% the Me#bers in the $ollo,in% order o$ priorityG

! to those Me#bers i$ any ,ith positive Capital )&&ount balan&es?deter#ined prior to taIin% into a&&ount any Distributions pursuant to Se&tion :.2B in theratio that su&h positive balan&es bear to ea&h other until all su&h Me#bersH Capital)&&ount balan&es e-ual Kero then

!! the re#ainder to the Me#bers in a&&ordan&e ,ith their respe&tivePer&enta%e *nterests.

IV36 S"e)!#. R(.es

3 /ot,ithstandin% the $ore%oin% allo&ation provisions o$ )rti&le *8 the $ollo,in% spe&ial

rules shall applyG

# T#1 A..)#t!ns< 8>5) #nd Re.(#t!n A..)#t!ns3 ther than asprovided in this Se&tion :.5?aB ite#s o$ in&o#e %ain dedu&tion and loss deter#ined $or in&o#eta purposes shall be allo&ated to the etent possible and e&ept as other,ise provided herein inthe sa#e proportions as &orrespondin% ite#s that enter into the &al&ulation o$ *n&o#e and Loss.*n a&&ordan&e ,ith Code 60:?&B and the "reasury 'e%ulations thereunder in&o#e %ain lossand dedu&tion ,ith respe&t to any property &ontributed to the &apital o$ the Co#pany ,ill solely$or ta purposes be allo&ated a#on% the Me#bers so as to taIe a&&ount o$ any variation bet,eenthe ad+usted basis o$ su&h property to the Co#pany $or $ederal in&o#e ta purposes and its Fair8alue at the ti#e o$ &ontribution. Si#ilarly in the event o$ a 'evaluation subse-uent allo&ations

o$ in&o#e %ain loss and dedu&tion ,ith respe&t to su&h property ,ill taIe a&&ount o$ anyvariation bet,een the ad+usted basis o$ su&h property to the Co#pany $or $ederal in&o#e tapurposes and its Fair 8alue i##ediately a$ter the ad+ust#ent in the sa#e #anner as under Code 60:?&B and the "reasury 'e%ulations thereunder. )ny ele&tions or other de&isions relatin% tosu&h allo&ations #ust be #ade by the Me#bers in a #anner that reasonably re$le&ts the purposeand intention o$ this )%ree#ent. )llo&ations pursuant to this Se&tion :.5?aB are solely $or in&o#eta purposes and ,ill not a$$e&t or in any ,ay be taIen into a&&ount in &o#putin% $or booIpurposes any Me#berHs Capital )&&ount or share o$ *n&o#e or Loss pursuant to any provisiono$ this )%ree#ent.

' M!n!%(% G#!n Ch#r$e'#)?3 /ot,ithstandin% any other provision o$

this )rti&le *8 i$ there is a net de&rease in Co#pany Mini#u# 9ain durin% a Co#pany taableyear ea&h Me#ber ,ill be allo&ated ite#s o$ in&o#e and %ain $or su&h year ?and i$ ne&essary$or subse-uent yearsB in an a#ount e-ual to that Me#berHs share o$ the net de&rease in Co#panyMini#u# 9ain durin% su&h year ?hereina$ter re$erred to as the @M!n!%(% G#!n Ch#r$e'#)?Re2(!re%entAB. ) Me#berHs share o$ the net de&rease in Co#pany Mini#u# 9ain is thea#ount o$ the total de&rease #ultiplied by the Me#berHs per&enta%e share o$ the Co#panyMini#u# 9ain at the end o$ the i##ediately pre&edin% taable year. ) Me#ber is not sub+e&t tothe Mini#u# 9ain Char%eba&I 'e-uire#ent to the etentG ?iB the Me#berHs share o$ the net

11

11520!v1


17/32

de&rease in Co#pany Mini#u# 9ain is &aused by a %uarantee re$inan&in% or other &han%e inthe debt instru#ent &ausin% it to be&o#e partially or ,holly re&ourse debt or a Me#ber/onre&ourse Debt and the Me#ber bears the e&ono#i& risI o$ loss $or the ne,ly %uaranteedre$inan&ed or other,ise &han%ed liability ?iiB the Me#ber &ontributes &apital to the Co#panythat is used to repay the /onre&ourse Debt and the Me#berHs share o$ the net de&rease in

Co#pany Mini#u# 9ain results $ro# the repay#ent or ?iiiB the Mini#u# 9ain Char%eba&I'e-uire#ent ,ould &ause a distortion and the Co##issioner o$ the *nternal 'evenue Servi&e,aives su&h re-uire#ent. ) Me#berHs share o$ Co#pany Mini#u# 9ain ,ill be &o#puted ina&&ordan&e ,ith "reasury 'e%ulation 1.60:2?%B and as o$ the end o$ any Co#pany taableyear ,ill e-ualG ?1B the su# o$ the /onre&ourse Dedu&tions allo&ated to that Me#ber up to thatti#e and the distributions #ade to that Me#ber up to that ti#e o$ pro&eeds o$ a /onre&ourseDebt allo&able to an in&rease o$ Co#pany Mini#u# 9ain #inus ?2B the su# o$ that Me#berHsa%%re%ate share o$ net de&rease in Co#pany Mini#u# 9ain plus that Me#berHs a%%re%ate shareo$ de&reases resultin% $ro# revaluations o$ Property sub+e&t to /onre&ourse Debts. *n addition aMe#berHs share o$ Co#pany Mini#u# 9ain ,ill be ad+usted $or the &onversion o$ re&ourse andMe#ber /onre&ourse Debts into /onre&ourse Debts in a&&ordan&e ,ith "reasury 'e%ulation

1.60:2?%B?!B. *n &o#putin% the above a#ounts allo&ated or distributed to the Me#berHsprede&essor in interest ,ill be taIen into a&&ount.

) Me%'er M!n!%(% G#!n Ch#r$e'#)?3 /ot,ithstandin% any otherprovision o$ this )rti&le *8 other than Se&tion :.5?bB i$ there is a net de&rease in Me#berMini#u# 9ain durin% a Co#pany taable year ea&h Me#ber ,ho has a share o$ the Me#berMini#u# 9ain ?deter#ined under "reasury 'e%ulation 1.60:2?iB?5B as o$ the be%innin% o$ theyearB ,ill be allo&ated ite#s o$ in&o#e and %ain $or su&h year ?and i$ ne&essary $or subse-uentyearsB e-ual to that Me#berHs share o$ the net de&rease in Me#ber Mini#u# 9ain. *na&&ordan&e ,ith "reasury 'e%ulation 1.60:2?iB?:B a Me#ber is not sub+e&t to this Me#berMini#u# 9ain Char%eba&I re-uire#ent to the etent the net de&rease in Me#ber Mini#u#9ain arises be&ause the liability &eases to be Me#ber /onre&ourse Debt due to a &onversionre$inan&in% or other &han%e in the debt instru#ent that &auses it to be partially or ,holly a/onre&ourse Debt. "he a#ount that ,ould other,ise be sub+e&t to the Me#ber Mini#u# 9ainChar%eba&I re-uire#ent is added to the Me#berHs share o$ Co#pany Mini#u# 9ain.

d =(#.!f!ed In)%e Offset3 *$ any Me#ber unepe&tedly re&eives anad+ust#ent allo&ation or distribution des&ribed in "reasury 'e%ulation 1.60:1?bB?2B?iiB?dB?:B?5B or ?4B that &auses or in&reases su&h Me#berHs )d+usted Capital )&&ount De$i&it ite#s o$Co#pany in&o#e and %ain ,ill be spe&ially allo&ated to su&h Me#ber in an a#ount and #annersu$$i&ient to eli#inate su&h )d+usted Capital )&&ount De$i&it as -ui&Ily as possible providedthat an allo&ation under this Se&tion :.5?dB #ay be #ade i$ and only to the etent su&h Me#ber,ould have an )d+usted Capital )&&ount De$i&it a$ter all other allo&ations under this )rti&le *8

have been #ade.

e Nnre)(rse Ded()t!ns3 /onre&ourse Dedu&tions $or any $is&al year orother period ,ill be allo&ated to the Me#bers in proportion to their Per&enta%e *nterests.

f Me%'er Nnre)(rse Ded()t!ns3 )ny Me#ber /onre&ourseDedu&tions ,ill be allo&ated to the Me#ber ,ho bears the risI o$ loss ,ith respe&t to the loan to

12

11520!v1


18/32

,hi&h su&h Me#ber /onre&ourse Dedu&tions are attributable in a&&ordan&e ,ith "reasury'e%ulation 1.60:2?iB.

$ C(r#t!&e A..)#t!ns3 )ny spe&ial allo&ations o$ ite#s o$ in&o#e %aindedu&tion or loss pursuant to Se&tions :.5?bB ?&B ?dB ?eB and ?$B ,ill be taIen into a&&ount in

&o#putin% subse-uent allo&ations o$ in&o#e and %ain pursuant to this )rti&le *8 so that the neta#ount o$ any ite#s so allo&ated and all other ite#s allo&ated to ea&h Me#ber pursuant to this)rti&le *8 are to the etent possible e-ual to the net a#ount that ,ould have been allo&ated toea&h su&h Me#ber pursuant to the provisions o$ this )rti&le *8 i$ su&h ad+ust#ents allo&ationsor distributions had not o&&urred. *n addition allo&ations pursuant to this Se&tion :.5?%B ,ithrespe&t to /onre&ourse Dedu&tions in Se&tion :.5?eB and Me#ber /onre&ourse Dedu&tions inSe&tion :.5?$B ,ill be de$erred to the etent the Me#bers reasonably deter#ine that su&hallo&ations are liIely to be o$$set by subse-uent allo&ations o$ Co#pany Mini#u# 9ain orMe#ber Mini#u# 9ain respe&tively.

h Lss A..)#t!n L!%!t#t!n3 /ot,ithstandin% the other provisions o$ this)rti&le *8 unless other,ise a%reed to by all o$ the Me#bers no Me#ber #ay be allo&ated Lossin any taable year that ,ould &ause or in&rease an )d+usted Capital )&&ount De$i&it as o$ theend o$ su&h taable year.

! Sh#re f Nnre)(rse L!#'!.!t!es3 Solely $or purposes o$ deter#inin% aMe#berHs proportionate share o$ the @e&ess nonre&ourse liabilitiesA o$ the Co#pany ,ithin the#eanin% o$ "reasury 'e%ulation 1.652!?aB?!B ea&h Me#berHs interest in Co#pany pro$its ise-ual to su&h Me#berHs respe&tive Per&enta%e *nterest.

C%".!#n)e /!th Tre#s(r- Re$(.#t!ns3 "he $ore%oin% provisions o$this Se&tion :.5 are intended to &o#ply ,ith "reasury 'e%ulation 1.60:1?bB 1.60:2 and1.6521 throu%h 1.6525 and #ust be interpreted and applied in a #anner &onsistent ,ith su&h

"reasury 'e%ulations. *$ it is deter#ined by the Me#bers that it is prudent or advisable toa#end this )%ree#ent in order &o#ply ,ith su&h "reasury 'e%ulations the )d#inistrator uponbein% so dire&ted by the Me#bers is e#po,ered to a#end or #odi$y this )%ree#entnot,ithstandin% any other provision o$ this )%ree#ent.

? Gener#. A..)#t!n Pr&!s!ns3 &ept as other,ise provided in this)%ree#ent all ite#s that are &o#ponents o$ *n&o#e or Loss ,ill be divided a#on% the Me#bersin the sa#e proportions as they share su&h *n&o#e or Loss as the &ase #ay be $or the year. Forpurposes o$ deter#inin% the *n&o#e Loss or any other ite#s $or any period *n&o#e Loss or anysu&h other ite#s ,ill be deter#ined on a daily #onthly or other basis as deter#ined by theMe#bers usin% any per#issible #ethod under Code 604 and the "reasury 'e%ulations

thereunder.

IV37 [:!thh.d!n$ f D!str!'(t!ns

3 /ot,ithstandin% any other provision o$ this )%ree#ent the Me#bers ?or any Personre-uired or authoriKed by la, to ,ind up the Co#panyHs a$$airsB #ay suspend redu&e orother,ise restri&t Distributions o$ )vailable Cash and Li-uidation Pro&eeds ,hen in their sole

1!

11520!v1


19/32

opinion su&h a&tion is in the best interests o$ the Co#pany.E NTD: Consider implicationswhan including this provision.E

IV38 N Pr!r!t-

3 &ept as #ay be other,ise epressly provided herein no Me#ber has priority overany other Me#ber as to Co#pany &apital in&o#e %ain dedu&tions loss &redits or distributions.

IV39 T#1 :!thh.d!n$

3 /ot,ithstandin% any other provision o$ this )%ree#ent the Me#bers are authoriKed totaIe any a&tion that they deter#ine to be ne&essary or appropriate to &ause the Co#pany to&o#ply ,ith any ,ithholdin% re-uire#ents established under any $ederal state or lo&al ta la,in&ludin% ,ithholdin% on any Distribution to any Me#ber. For all purposes o$ this )rti&le *8any a#ount ,ithheld on any Distribution and paid over to the appropriate %overn#ental body,ill be treated as i$ su&h a#ount had in $a&t been distributed to the Me#ber.

IV3+ Reser&es

3 "he Me#bers #ay establish #aintain and epend 'eserves to provide $or ,orIin%&apital $or $uture #aintenan&e repair or repla&e#ent o$ the Property $or debt servi&e $or $utureinvest#ents and $or su&h other purposes as the Me#bers #ay dee# ne&essary or advisable.

ARTICLE V ; MANAGEMENT

V3* M#n#$e%ent

3 "he Co#pany ,ill be #e#ber#ana%ed ,ithin the #eanin% o$ !22C.0:06 o$ the )&t.*n $urtheran&e o$ the #ana%e#ent o$ the Co#pany by the Me#bers the Me#bers #ay en%a%e aPerson to a&t as the )d#inistrator o$ the Co#pany. "he )d#inistrator ,ill not be re-uired to bea Me#ber o$ the Co#pany. "he )d#inistrator only has the authority to per$or# #inisterial a&tsin &arryin% out the de&isions o$ the Me#bers in&ludin% the ee&ution o$ any instru#ent onbehal$ o$ the Co#pany. "he )d#inistrator #ay be re#oved or repla&ed at any ti#e by theMe#bers. (ntil another Person is retained as )d#inistrator the )d#inistrator is E. "he)d#inistrator is not entitled to any &o#pensation $or a&tin% as )d#inistrator but ,ill re&eiverei#burse#ent o$ any epenses in&urred on behal$ o$ the Co#pany. )t any ti#e and $ro# ti#eto ti#e the Me#bers #ay desi%nate any Me#ber or any other Person to &arry out the de&isionso$ the Me#bers in&ludin% the ee&ution o$ any instru#ents on behal$ o$ the Co#pany.

V34 Meet!n$s f Me%'ers< P.#)e f Meet!n$s

3 &ept as provided in Se&tion 5.5 all de&isions o$ the Me#bers ,ill be #ade at a#eetin% duly held in a&&ordan&e ,ith this )rti&le 8. Meetin%s o$ the Me#bers #ay be held $orany purpose or purposes unless other,ise prohibited by la, or by the )rti&les and #ay be&alled by the Me#bers holdin% not less than 20 o$ the Per&enta%e *nterests. )ll #eetin%s o$ theMe#bers ,ill be held at the prin&ipal o$$i&e o$ the Co#pany or at su&h other pla&e ,ithin or,ithout the State o$ Minnesota as is desi%nated $ro# ti#e to ti#e by the Me#bers and stated inthe noti&e o$ the #eetin% or in a duly ee&uted ,aiver o$ the noti&e thereo$. Me#bers #ay

1:

11520!v1


20/32

parti&ipate in a #eetin% o$ the Me#bers by #eans o$ &on$eren&e telephone or si#ilar&o##uni&ations e-uip#ent ,hereby all Me#bers parti&ipatin% in the #eetin% &an hear ea&hother and parti&ipation in a #eetin% in this #anner &onstitutes presen&e in person at the #eetin%.

V3, =(r(%

3 "he presen&e in person or by proy o$ a Ma+ority in *nterest &onstitutes a -uoru# $orthe transa&tion o$ business by the Me#bers. *$ less than a Ma+ority in *nterest are represented ata #eetin% a #a+ority o$ the *nterests so represented #ay ad+ourn the #eetin% to a spe&i$ied datenot lon%er than 0 days a$ter su&h ad+ourn#ent ,ithout $urther noti&e. )t su&h ad+ourned#eetin% at ,hi&h a -uoru# is present or represented by proy any business #ay be transa&tedthat #i%ht have been transa&ted at the #eetin% as ori%inally noti&ed. "he Me#bers present at aduly &onvened #eetin% #ay &ontinue to transa&t business until ad+ourn#ent not,ithstandin% the,ithdra,al Me#bers su&h that the re#ainin% Me#bers &onstitute less than a -uoru#. )t anyti#e i$ there is no Person ,ith the ri%ht to vote or to parti&ipate in the #ana%e#ent o$ thebusiness and a$$airs o$ the Co#pany ,ith respe&t to a parti&ular *nterest then the Per&enta%e*nterest represented by su&h *nterest ,ill be disre%arded $or the purposes o$ deter#inin% ,hethera -uoru# is present at a #eetin% o$ Me#bers and the re-uisite Per&enta%e *nterest ne&essary $ora valid de&ision o$ the Me#bers has been obtained.

V35 Pr1!es

3 )t any #eetin% o$ the Me#bers every Me#ber havin% the ri%ht to vote thereat ,ill beentitled to vote in person or by proy appointed by an instru#ent in ,ritin% si%ned by su&hMe#ber and bearin% a date not #ore than three years prior to su&h #eetin%.

V36 A)t!n :!th(t Meet!n$

3 )ny a&tion re-uired or per#itted to be taIen at any #eetin% o$ the Me#bers o$ theCo#pany #ay be taIen ,ithout a #eetin% i$ the a&tion is eviden&ed by one or #ore ,ritten&onsents settin% $orth the a&tion to be taIen and si%ned by each Member entitle$ to voteE OREby Members hol$ing 0ercentage Interests sufficient to cause the action to be taken at a meetingof the Members at which all Members were presentE.

V37 Nt!)e f Meet!n$s

3 /oti&e statin% the pla&e day hour and the purpose $or ,hi&h the #eetin% is &alled #ustbe %iven not less than ten days nor #ore than 40 days be$ore the date o$ the #eetin% by or at thedire&tion o$ the Me#bers &allin% the #eetin% to ea&h Me#ber entitled to vote at su&h #eetin%.) Me#berHs attendan&e at a #eetin%G

# ,aives ob+e&tion to la&I o$ noti&e or de$e&tive noti&e o$ the #eetin%unless su&h Me#ber at the be%innin% o$ the #eetin% ob+e&ts to holdin% the #eetin% ortransa&tin% business at the #eetin% and

' ,aives ob+e&tion to &onsideration o$ a parti&ular #atter at the #eetin% thatis not ,ithin the purpose or purposes des&ribed in the noti&e o$ #eetin% unless su&h Me#berob+e&ts to &onsiderin% the #atter ,hen it is presented.

15

11520!v1


21/32

V38 :#!&er f Nt!)e

3


22/32

!!! the sale lease e&han%e or other disposition other than by#ort%a%e deed o$ trust or pled%e o$ all or substantially all the Property ,ith or,ithout the %ood,ill o$ the Co#pany

!& deter#ination #odi$i&ation &o#pro#ise or release o$ the a#ount

and &hara&ter o$ the &ontributions that a Me#ber #aIes as the &onsideration $or theissuan&e o$ an *nterest

& &on$ession o$ a +ud%#ent on behal$ o$ the Co#pany or

&! an assi%n#ent o$ the Property $or the bene$it o$ &reditors o$ theCo#pany

) *n addition to those #atters spe&i$ied else,here in this )%ree#ent asre-uirin% the approval o$ all Me#bers the a$$ir#ative vote o$ all Me#bers ,ill be re-uired $orthe $ollo,in%G

! NTD Cns!der #""r"r!#te "r&!s!ns3E

d )t any ti#e that no Person has the ri%ht to vote or to parti&ipate in the#ana%e#ent o$ the business and a$$airs o$ the Co#pany ,ith respe&t to the *nterest held by su&hMe#ber then the Per&enta%e *nterest represented by su&h *nterest ,ill be disre%arded indeter#inin% ,hether the re-uisite per&enta%e ne&essary $or a valid de&ision o$ the Me#bers hasbeen obtained ,ith the e$$e&t that su&h *nterest ,ill be treated as i$ su&h *nterest had not beenissued and the re-uisite per&enta%e ne&essary $or a valid de&ision ,ill be applied a%ainst there#ainin% Per&enta%e *nterests.

V3** M!n(tes f Meet!n$s #nd Re)rd f Other A)t!ns

3 "he Co#pany ,ill Ieep at its prin&ipal o$$i&e #inutes o$ all #eetin%s o$ the Me#bersand a re&ord o$ all a&tions taIen by the Me#bers ,ithout a #eetin%.

V3*4 L!%!t#t!n f L!#'!.!t-< Inde%n!f!)#t!n

3

# L!%!t#t!n3 /o Person ,ill be liable to the Co#pany or its Me#bers $orany loss da#a%e liability or epense on a&&ount o$ any a&tion taIen or o#itted to be taIen bysu&h Person as a Me#ber or )d#inistrator o$ the Co#pany other than $or ?iB brea&h o$ the dutyo$ loyalty ?iiB a $inan&ial bene$it re&eived by the Me#ber to ,hi&h the Me#ber is not entitled

?iiiB a brea&h o$ a duty under Se&tion !22C.0:04 o$ the )&t ?ivB intentional in$li&tion o$ har# onthe Co#pany or a Me#ber or ?vB an intentional violation o$ &ri#inal la,. *$ the )&t is herea$tera#ended to authoriKe the $urther eli#ination or li#itation o$ the liability o$ #e#bers then,ithout re-uirin% any a&tion by the Me#bers the liability o$ Me#bers o$ the Co#pany shall be$urther li#ited to the $ullest etent per#itted by the a#ended )&t. )ny repeal o$ this provisionas a #atter o$ la, or any #odi$i&ation o$ this Se&tion by the Me#bers shall be prospe&tive onlyand shall not adversely a$$e&t any li#itation on the personal liability o$ a Me#ber o$ theCo#pany eistin% at the ti#e o$ su&h repeal or #odi$i&ation.

16

11520!v1


23/32

' R!$ht t Inde%n!f!)#t!n #nd Adn)e%ent3 "he Co#pany shallinde#ni$y and advan&e epenses to its Me#bers and other persons a&tin% in their @o$$i&ial&apa&ityA ?as de$ined in Se&tion !22C.0:07 o$ the )&tB ,ith respe&t to @pro&eedin%sA ?as de$inedin Se&tion !22C.0:07 o$ the )&tB to the $ullest etent re-uired by Se&tion !22C.0:07 o$ the )&t.

V3*, Cntr#)ts /!th Me%'ers r The!r Aff!.!#tes

3 /o &ontra&t or transa&tion bet,een the Co#pany and one o$ its Me#bers or bet,eenthe Co#pany and any Person in ,hi&h one o$ its Me#bers is a dire&tor or o$$i&er or has a$inan&ial interest ,ill be void or voidable solely $or this reason or solely be&ause su&h Me#beris present at or parti&ipates in any #eetin% o$ the Me#bers at ,hi&h the &ontra&t or transa&tion isauthoriKed or solely be&ause su&h Me#berHs vote is &ounted $or su&h purpose and su&h Me#ber,ill not be obli%ated to a&&ount to the Co#pany $or any pro$it or bene$it derived by su&hMe#ber i$ the #aterial $a&ts as to su&h Me#berHs relationship are Ino,n to the Me#bers andthe Me#bers holdin% either ?iB a #a+ority o$ the Per&enta%e *nterests held by those Me#bers,ho are disinterested ,ith respe&t to su&h &ontra&t or transa&tion authoriKe su&h &ontra&t ortransa&tion even thou%h the disinterested Me#bers be less than a -uoru# or ?iiB all o$ theMe#bers. *nterested Me#bers #ay be &ounted in deter#inin% the presen&e o$ a -uoru# at a#eetin% o$ the Me#bers at ,hi&h the &ontra&t or transa&tion is authoriKed.

ARTICLE VI ; ACCOUNTING AND BAN ACCOUNTS

VI3* F!s)#. Ye#r

3 "he $is&al year and taable year o$ the Co#pany ,ill end on E o$ ea&h year unless adi$$erent year is re-uired by the Code.

VI34 B?s #nd Re)rds

3)t all ti#es durin% the eisten&e o$ the Co#pany the Co#pany ,ill &ause to be#aintained $ull and a&&urate booIs o$ a&&ount ,hi&h ,ill re$le&t all Co#pany transa&tions andbe appropriate and ade-uate $or the Co#panyHs business. "he booIs and re&ords o$ theCo#pany ,ill be #aintained at the prin&ipal o$$i&e o$ the Co#pany.

VI3, F!n#n)!#. Re"rts

3


24/32

3 "he Co#pany ,ill &ause to be prepared and ti#ely $iled all Federal state and lo&alin&o#e ta returns or other returns or state#ents re-uired by appli&able la,. "he Co#pany ,ill&lai# all dedu&tions and #aIe su&h ele&tions $or $ederal or state in&o#e ta purposes that theMe#bers reasonably believe ,ill produ&e the #ost $avorable ta results $or the Me#bers. E ishereby desi%nated as the Co#panyHs @T#1 M#tters Me%'erA to serve ,ith respe&t to the

Co#pany in the sa#e &apa&ity as a @ta #atters partnerA as de$ined in the Code and in su&h&apa&ity is hereby authoriKed and e#po,ered to a&t $or and represent the Co#pany and ea&h o$the Me#bers be$ore the *nternal 'evenue Servi&e in any audit or ea#ination o$ any Co#panyta return and be$ore any &ourt sele&ted by the Me#bers $or +udi&ial revie, o$ any ad+ust#entassessed by the *nternal 'evenue Servi&e. E hereby a&&epts su&h desi%nation. "he Me#bersspe&i$i&ally a&Ino,led%e ,ithout li#itin% the %eneral appli&ability o$ this Se&tion that the "aMatters Me#ber ,ill not be liable responsible or a&&ountable in da#a%es or other,ise to theCo#pany or any Me#ber ,ith respe&t to any a&tion taIen by it in its &apa&ity as a @"a MattersMe#ber.A )ll outo$po&Iet epenses in&urred by the "a Matters Me#ber in the &apa&ity o$@"a Matters Me#berA ,ill be &onsidered epenses o$ the Co#pany $or ,hi&h the "a MattersMe#ber is entitled to $ull rei#burse#ent.

VI36 Se)t!n 865 E.e)t!n

3 *$ a distribution o$ Co#pany assets o&&urs that satis$ies the provisions o$ Se&tion 6!: o$the Code or i$ a trans$er o$ an *nterest o&&urs that satis$ies the provisions o$ Se&tion 6:! o$ theCode upon the deter#ination o$ the Me#bers the Co#pany ,ill ele&t pursuant to Se&tion 65:o$ the Code to ad+ust the basis o$ the Property to the etent allo,ed by su&h Se&tion 6!: or 6:!and ,ill &ause su&h ad+ust#ents to be #ade and #aintained.

VI37 B#n? A))(nts

3 )ll $unds o$ the Co#pany ,ill be deposited in a separate banI #oney #arIet or

si#ilar a&&ount or a&&ounts approved by the Me#bers and in the Co#panyHs na#e.


25/32

in the @ter#inationA o$ the Co#pany pursuant to 607 o$ the Code. )ny assi%nee o$ an *nterestas allo,ed by this Se&tion 6.2 ,ho does not be&o#e a Substitute Me#ber as provided in Se&tion6.! ?a @Tr#nsfereeAB ?iB ,ill not be a Me#ber and ,ill not have any ri%ht to vote as a Me#ber orto parti&ipate in the #ana%e#ent o$ the business and a$$airs o$ the Co#pany su&h ri%ht to votesu&h *nterest and to parti&ipate in the #ana%e#ent o$ the business and a$$airs o$ the Co#pany

&ontinuin% ,ith the "rans$eror and ?iiB shall have only those ri%hts a&&orded to the trans$eree o$ atrans$erable interest as set $orth in Se&tion !22C.0502 o$ the )&t. "he "rans$eree ,ill ho,everbe entitled to distributions and allo&ations o$ the Co#pany as provided in )rti&le *8 attributableto the *nterest that is the sub+e&t o$ the "rans$er to su&h "rans$eree.

VII3, S('st!t(te Me%'ers

3

# /o assi%nee o$ all or part o$ a Me#berHs *nterest ,ill be&o#e a Me#ber inpla&e o$ the "rans$eror ?a @S('st!t(te Me%'erAB unless and untilG

! the "rans$eror ?i$ livin%B has stated su&h intention in the instru#ento$ assi%n#ent

!! the "rans$eree has ee&uted an instru#ent a&&eptin% and adoptin%the ter#s and provisions o$ this )%ree#ent

!!! the "rans$eror or "rans$eree has paid all reasonable epenses o$ theCo#pany in &onne&tion ,ith the ad#ission o$ the "rans$eree as a Substitute Me#berand

!& the "rans$eree is either a Per#itted "rans$eree or Me#bers holdin%

a #a+ority o$ the re#ainin% Per&enta%e *nterests in their sole and absolute dis&retionhave &onsented in ,ritin% to su&h "rans$eree be&o#in% a Substitute Me#ber.

' (pon satis$a&tion o$ all o$ the $ore%oin% &onditions ,ith respe&t to a"rans$eree the )d#inistrator ,ill &ause this )%ree#ent to be duly a#ended to re$le&t thead#ission o$ the "rans$eree as a Substitute Me#ber.

VII35 Effe)t f Ad%!ss!n #s # S('st!t(te Me%'er

3 (nless and until ad#itted as a Substitute Me#ber pursuant to Se&tion 6.! a "rans$ereeis not entitled to eer&ise any ri%hts o$ a Me#ber in the Co#pany in&ludin% the ri%ht to vote%rant approvals or %ive &onsents ,ith respe&t to su&h *nterest the ri%ht to re-uire any

in$or#ation or a&&ountin% o$ the Co#panyHs business or the ri%ht to inspe&t the Co#panyHsbooIs and re&ords but a "rans$eree ,ill only be entitled to re&eive to the etent o$ the *nteresttrans$erred to su&h "rans$eree the Distributions to ,hi&h the "rans$eror ,ould be entitled. )"rans$eree ,ho has be&o#e a Substitute Me#ber has to the etent o$ the *nterest trans$erred tosu&h "rans$eree all the ri%hts and po,ers o$ the Me#ber $or ,ho# su&h "rans$eree issubstituted and is sub+e&t to the restri&tions and liabilities o$ a Me#ber under this )%ree#ent andthe )&t. (pon ad#ission o$ a "rans$eree as a Substitute Me#ber the "rans$eror ,ill &ease to bea Me#ber o$ the Co#pany to the etent o$ su&h *nterest.

20

11520!v1


26/32

VII36 Add!t!n#. Me%'ers #nd Interests

3 )dditional Me#bers #ay be ad#itted to the Co#pany and additional *nterests #ay beissued only upon the &onsent o$ a SuperMa+ority in *nterest.


27/32

! upon the approval o$ a Super4Ma5ority in InterestE ' a Ma5orityin InterestE ' allE o$ the Me#bers and

!! upon the entry o$ a de&ree o$ +udi&ial dissolution per#itted underSe&tion !22.0601 o$ the )&t.

' /ot,ithstandin% Se&tion !22.0601 o$ the )&t the $or%oin% events ,hi&h&ause dissolution o$ the Co#pany are the e&lusive events ,hi&h &ause the dissolution o$ theCo#pany.

VIII34 Effe)t f D!ss.(t!n

3 &ept as other,ise provided in this )%ree#ent upon the dissolution o$ the Co#panythe Me#bers ,ill taIe su&h a&tions as #ay be re-uired pursuant to the )&t and ,ill pro&eed to,ind up li-uidate and ter#inate the business and a$$airs o$ the Co#pany. *n &onne&tion ,ithsu&h ,indin% up the Me#bers #ay li-uidate and redu&e to &ash ?to the etent ne&essary orappropriateB the assets o$ the Co#pany as pro#ptly as is &onsistent ,ith obtainin% Fair 8alue

there$or apply and distribute the pro&eeds o$ su&h li-uidation and any re#ainin% assets ina&&ordan&e ,ith the provisions o$ Se&tion 7.! and do any and all a&ts and thin%s authoriKed byand in a&&ordan&e ,ith the )&t and other appli&able la,s $or the purpose o$ ,indin% up andli-uidation.

VIII3, A"".!)#t!n f Pr)eeds

3 (pon dissolution and li-uidation o$ the Co#pany the assets o$ the Co#pany ,ill beapplied and distributed in the order o$ priority set $orth in Se&tion :.2.

ARTICLE I ; MISCELLANEOUS

I3* T!t.e t the Pr"ert-

3 "itle to the Property ,ill be held in the na#e o$ the Co#pany. /o Me#ber has anyo,nership interest or ri%hts in the Property e&ept indire&tly by virtue o$ su&h Me#berHso,nership o$ an *nterest. /o Me#ber has any ri%ht to seeI or obtain a partition o$ the Propertynor does any Me#ber have the ri%ht to any spe&i$i& assets o$ the Co#pany upon the li-uidationo$ or any distribution $ro# the Co#pany.

I34 N#t(re f Interest !n the C%"#n-

3 )n *nterest is personal property $or all purposes.

I3, Or$#n!@#t!n#. E1"enses

3 a&h Me#ber ,ill pay su&h Me#berHs o,n epenses in&urred in &onne&tion ,ith the&reation and $or#ation o$ the Co#pany and revie, and ne%otiation o$ this )%ree#ent.

I35 Nt!)es

22

11520!v1


28/32

3 )ny noti&e de#and re-uest or other &o##uni&ation ?a @Nt!)eAB re-uired or per#ittedto be %iven by this )%ree#ent or the )&t to the Co#pany any Me#ber or any other Person ,illbe su$$i&ient i$ in ,ritin% and i$ hand delivered or #ailed by re%istered or &erti$ied #ail to theCo#pany at its prin&ipal o$$i&e or to a Me#ber or any other Person at the address o$ su&hMe#ber or su&h other Person as it appears on the re&ords o$ the Co#pany or sent by $a&si#ile

trans#ission to the telephone nu#ber i$ any o$ the re&ipientHs $a&si#ile #a&hine as su&htelephone nu#ber appears on the re&ords o$ the Co#pany or sent via e#ail to the e#ail addressi$ any o$ the re&ipient as it appears on the re&ords o$ the Co#pany. )ll /oti&es that are #ailed,ill be dee#ed to be %iven ,hen deposited in the (nited States #ail posta%e prepaid. )ll/oti&es that are hand delivered ,ill be dee#ed to be %iven upon delivery. )ll /oti&es that are%iven by $a&si#ile trans#ission or e#ail ?,ith &on$ir#ation o$ trans#issionB ,ill be dee#ed%iven ,hen sent i$ sent durin% nor#al business hours o$ the re&ipient and on the net businessday i$ sent a$ter nor#al business hours o$ the re&ipient.

I36 :#!&er f Def#(.t

3 /o &onsent or ,aiver epress or i#plied by the Co#pany or a Me#ber ,ith respe&t toany brea&h or de$ault by another Me#ber hereunder ,ill be dee#ed or &onstrued to be a &onsentor ,aiver ,ith respe&t to any other brea&h or de$ault by su&h Me#ber o$ the sa#e provision orany other provision o$ this )%ree#ent. Failure on the part o$ the Co#pany or a Me#ber to&o#plain o$ any a&t or $ailure to a&t o$ another Me#ber or to de&lare su&h other Me#ber inde$ault ,ill not be dee#ed or &onstitute a ,aiver by the Co#pany or the Me#ber o$ any ri%htshereunder.

I37 N Th!rd P#rt- R!$hts

3 /one o$ the provisions &ontained in this )%ree#ent are $or the bene$it o$ or en$or&eableby any third parties in&ludin% &reditors o$ the Co#pany provided ho,ever the Co#pany #ay

en$or&e any ri%hts %ranted to the Co#pany under the )&t the )rti&les or this )%ree#ent.

I38 Ent!re A$ree%ent

3 "his )%ree#ent to%ether ,ith the )rti&les &onstitutes the entire a%ree#ent a#on% theMe#bers and supersedes all other ,ritten oral or i#plied a%ree#ents arran%e#ents andunderstandin%s a#on% the Me#bers the $or#ation operation and &ontinuation o$ the Co#panyand the relations a#on% and bet,een the Me#bers and the Co#pany.

I39 C%".ete St#te%ent f E1"e)t#t!ns

. a&h Me#ber represents and ,arrants thatG

# "his )%ree#ent is a &o#plete state#ent o$ the reasonable epe&tations o$su&h Me#ber ,ith respe&t to the $or#ation operation and &ontinuation o$ the Co#pany and therelations a#on% and bet,een the Me#bers and the Co#pany and su&h Me#ber does not haveany su&h epe&tations not set $orth in this )%ree#ent.

' "his )%ree#ent &ontains a &o#plete state#ent o$ all epe&tations that,ere #aterial to su&h Me#berHs de&ision to be&o#e a #e#ber o$ the Co#pany.

2!

11520!v1


29/32

I3+ A%end%ents t th!s A$ree%ent

3

# &ept as other,ise provided herein this )%ree#ent and the )rti&les #aynot be #odi$ied or a#ended in any #anner other than by the ,ritten a%ree#ent o$ a SuperMa+ority in *nterest or Ma5ority in InterestE at the ti#e o$ su&h #odi$i&ation or a#end#ent.

' "his )%ree#ent #ay be a#ended by the )d#inistrator ,ithout anyee&ution o$ su&h a#end#ent by the Me#bers in order to re$le&t the o&&urren&e o$ any o$ the$ollo,in% events provided that all o$ the &onditions i$ any &ontained in the relevant se&tions o$this )%ree#ent ,ith respe&t to su&h event have been satis$iedG

! an ad+ust#ent o$ the Per&enta%e *nterests o$ the Me#bers upon#aIin% a Capital Contribution ?Se&tion !.2B upon the ad#ission o$ an additionalMe#ber or issuan&e o$ an additional *nterest ?Se&tion 6.5B or upon the rede#ption o$ an*nterest ?Se&tion 6.4B

!! the #odi$i&ation o$ this )%ree#ent to &o#ply ,ith the relevant tala,s pursuant to Se&tions !.! or :.5?+B and

!!! the ad#ission o$ a Substitute Me#ber ?Se&tion 6.!B.

) )nythin% in this Se&tion .7 to the &ontrary not,ithstandin% ,ithout the,ritten &onsent o$ all Me#bers no a#end#ent to this )%ree#ent #ayG

! add to detra&t $ro# or other,ise #odi$y the purposes o$ theCo#pany as set $orth in this )%ree#ent

!! enlar%e the obli%ations o$ any Me#ber under this )%ree#ent

!!! a#end any provisions o$ )rti&le *8 other than an a#end#ent to&o#ply ,ith the relevant ta la,s as provided in Se&tion :.5?+B or

!& a#end this Se&tion .7 or any provision o$ this )%ree#entre-uirin% the &onsent o$ a SuperMa+ority in *nterest.

I3*> Se&er#'!.!t-

3 *$ any provision o$ this )%ree#ent is held to be ille%al invalid or unen$or&eable to any

etent the le%ality validity and en$or&eability o$ the re#ainder o$ this )%ree#ent ,ill not bea$$e&ted thereby and ,ill re#ain in $ull $or&e and e$$e&t and #ay be en$or&ed to the %reatestetent per#itted by la,.

I3** B!nd!n$ A$ree%ent

2:

11520!v1


30/32

3 Sub+e&t to the restri&tions on the disposition o$ *nterests herein &ontained theprovisions o$ this )%ree#ent are bindin% upon and ,ill inure to the bene$it o$ the parties heretoand their respe&tive heirs personal representatives su&&essors and per#itted assi%ns.

I3*4 C(nter"#rts

3 "his )%ree#ent #ay be ee&uted in any nu#ber o$ &ounterparts ea&h o$ ,hi&h ,ill bedee#ed to be an ori%inal and all o$ ,hi&h &onstitutes one a%ree#ent that is bindin% upon all o$the parties hereto not,ithstandin% that all parties are not si%natories to the sa#e &ounterpart.

I3*, G&ern!n$ L#/

3 "his )%ree#ent is %overned by and is to be &onstrued in a&&ordan&e ,ith the la,s o$the State o$ Minnesota.

I3*5 Re%ed!es

3 *n the event o$ a de$ault by any party in the per$or#an&e o$ any obli%ation undertaIenin this )%ree#ent in addition to any other re#edy available to the nonde$aultin% parties thede$aultin% party #ust pay to ea&h o$ the nonde$aultin% parties all &osts da#a%es and epensesin&ludin% reasonable attorneysH $ees in&urred by the nonde$aultin% parties as a result o$ su&hde$ault. *$ any dispute arises ,ith respe&t to the en$or&e#ent interpretation or appli&ation o$this )%ree#ent and &ourt pro&eedin%s are instituted to resolve su&h dispute the prevailin% partyin su&h &ourt pro&eedin%s #ay re&over $ro# the nonprevailin% party all &osts and epensesin&ludin% reasonable attorneysH $ees in&urred by the prevailin% party in su&h &ourt pro&eedin%s.

I3*6 Le$#. Re"resent#t!n

3 "he Me#bers hereby a&Ino,led%e that this )%ree#ent ,as prepared by the la, $ir# o$E on behal$ o$ the Co#pany. a&h Me#ber hereby a&Ino,led%es thatG

# a &on$li&t o$ interest #ay eist bet,een su&h Me#berHs interests and thoseo$ the Co#pany and the other Me#bers

' su&h Me#ber has had the opportunity to seeI the advi&e o$ independentle%al &ounsel

) this )%ree#ent has ta &onse-uen&es and

d su&h Me#ber has had the opportunity to seeI the advi&e o$ independent

ta &ounsel.

[signature pages follow"

25

11520!v1


31/32

"he parties hereto have ee&uted this peratin% )%ree#ent on the date $irst ,rittenabove.

MM3'SG

11520!v1


32/32

SCHEDULE A

/a#e and )ddress o$ Me#berCapitalContribution

Per&enta%e*nterest

Member NameE

Member 6$$ressE

#ailG

Fa&si#ileG

NNN

NNN

"otalsG 100

member-managed form of operating agreement for the minnesota revised uniform limited liability...

Documents