|
|
|
|
Document Preview Limited Liability Company Operating Agreement |
||||
|
|
||||
|
Click "Add to Cart" button to purchase document. |
||||
|
|
||||
|
Title: |
Limited Liability Company Operating Agreement |
|||
|
Entities: |
||||
|
Date: |
2004 |
|||
|
Size: |
Preview shows 18KB of 102KB total |
|||
|
Price: |
$46 |
|||
|
ID: |
#1294863 |
|||
|
|
||||
|
||||
|
|
||||
|
Start of Preview |
||||
<SEQUENCE>2
<FILENAME>form8k051304ex3-1.txt
<TEXT>
LIMITED LIABILITY COMPANY OPERATING AGREEMENT
OF
SOMA PETROLEUM, LLC
A NEVADA LIMITED LIABILITY COMPANY
Dated as of February 27, 2004
<PAGE>
TABLE OF CONTENTS
<TABLE>
<CAPTION>
<S> <C>
ARTICLE I. DEFINITIONS AND INTERPRETATION.........................................................................1
1.1 CERTAIN DEFINITIONS...................................................................................1
1.2 OTHER DEFINED TERMS...................................................................................4
1.3 INTERPRETATION........................................................................................5
ARTICLE II. INTRODUCTORY MATTERS..................................................................................5
2.1 FORMATION OF LLC......................................................................................5
2.2 NAME; PRINCIPAL OFFICE; AGENT.........................................................................5
2.3 PERIOD OF DURATION....................................................................................5
2.4 BUSINESS AND PURPOSE OF THE LLC.......................................................................5
2.5 TITLE TO ALL PROPERTIES...............................................................................6
ARTICLE III. MEMBERS AND CAPITAL CONTRIBUTIONS....................................................................6
3.1 MEMBERS; NO PERSONAL LIABILITY........................................................................6
3.2 INITIAL CAPITAL CONTRIBUTIONS.........................................................................6
3.3 ADDITIONAL CONTRIBUTIONS..............................................................................6
3.4 RIGHTS WITH RESPECT TO CAPITAL........................................................................6
3.5 GENERAL RULES FOR ADJUSTMENT OF CAPITAL ACCOUNTS......................................................6
3.6 SPECIAL RULES WITH RESPECT TO CAPITAL ACCOUNTS........................................................7
3.7 TRANSFEREE'S CAPITAL ACCOUNT..........................................................................7
ARTICLE IV. ALLOCATION OF PROFITS AND LOSSES......................................................................7
4.1 ALLOCATION OF NET PROFITS AND NET LOSSES..............................................................7
4.2 RESIDUAL ALLOCATIONS..................................................................................8
4.3 QUALIFIED INCOME OFFSET...............................................................................8
4.4 MINIMUM GAIN CHARGEBACK...............................................................................8
4.5 MEMBER NONRECOURSE DEBT MINIMUM GAIN CHARGEBACK.......................................................8
4.6 MEMBER NONRECOURSE DEDUCTIONS.........................................................................9
4.7 SPECIAL ALLOCATIONS...................................................................................9
4.8 FEES TO MEMBERS OR AFFILIATES.........................................................................9
4.9 SECTION 704(c) ALLOCATION.............................................................................9
ARTICLE V. DISTRIBUTIONS.........................................................................................10
5.1 AVAILABLE CASH FLOW..................................................................................10
5.2 LIQUIDATING DISTRIBUTIONS............................................................................10
ARTICLE VI. RIGHTS, DUTIES, OBLIGATIONS AND COMPENSATION OF MANAGER AND OFFICERS................................10
6.1 MANAGER..............................................................................................10
6.2 LIMITATIONS ON RIGHTS AND POWERS.....................................................................12
6.3 COMPENSATION OF MANAGER..............................................................................13
ARTICLE VII. MEMBERS; MEMBERS' MEETINGS..........................................................................13
7.1 PLACE OF MEETINGS; MANAGER TO PRESIDE................................................................13
7.2 ANNUAL MEETINGS OF MEMBERS...........................................................................13
7.3 SPECIAL MEETINGS.....................................................................................13
7.4 NOTICE OF MEETINGS...................................................................................13
7.5 VALIDATION OF MEMBERS' MEETINGS......................................................................14
7.6 ACTIONS WITHOUT A MEETING............................................................................14
7.7 REQUIRED VOTE........................................................................................14
7.8 QUORUM AND EFFECT OF VOTE............................................................................14
7.9 COMPENSATION OF MEMBERS..............................................................................14
ARTICLE VIII. RESTRICTIONS ON TRANSFER OF LLC INTERESTS; ADMISSION OF NEW MEMBERS................................15
8.1 TRANSFER OR ASSIGNMENT OF INTERESTS..................................................................15
8.2. RIGHT OF FIRST REFUSAL UPON SALE....................................................................15
8.3 BUYOUT OPTION........................................................................................16
8.4 VOID TRANSFERS.......................................................................................17
8.5 SUBSTITUTION OF MEMBERS..............................................................................17
8.6 ADMISSION OF NEW MEMBERS.............................................................................17
8.7 SUBSEQUENT TRANSFERS SUBJECT TO TERMS OF AGREEMENT...................................................18
8.8 PURCHASE TERMS VARIED BY AGREEMENT...................................................................18
ARTICLE IX. TERMINATION AND DISSOLUTION..........................................................................18
9.1 DISSOLUTION..........................................................................................18
9.2 DISASSOCIATION EVENT.................................................................................18
9.3 STATEMENT OF INTENT TO DISSOLVE......................................................................18
9.4 CONDUCT OF BUSINESS..................................................................................18
9.5 DISTRIBUTION OF NET PROCEEDS.........................................................................19
ARTICLE X. BOOKS, RECORDS, REPORTS AND BANK ACCOUNTS.............................................................19
10.1 MAINTENANCE OF BOOKS AND RECORDS....................................................................19
10.2 ANNUAL ACCOUNTING...................................................................................20
10.3 INSPECTION AND AUDIT RIGHTS.........................................................................20
10.4 BANK ACCOUNTS; FISCAL YEAR AND ACCOUNTING METHOD....................................................20
10.5 TAX MATTERS.........................................................................................21
10.6 INCOME TAX ELECTIONS................................................................................21
ARTICLE XI. INDEMNIFICATION OF THE MEMBERS, MANAGER, AND THEIR AFFILIATES.......................................21
11.1 INDEMNIFICATION OF THE MEMBERS AND THEIR PRINCIPALS.................................................21
11.2 EXPENSES............................................................................................21
11.3 INDEMNIFICATION RIGHTS NON-EXCLUSIVE................................................................22
11.4 ERRORS AND OMISSIONS INSURANCE......................................................................22
11.5 ASSETS OF THE LLC...................................................................................22
ARTICLE XII. ISSUANCE OF LLC CERTIFICATES........................................................................22
12.1 ISSUANCE OF LLC CERTIFICATES........................................................................22
12.2 TRANSFER OF LLC INTERESTS...........................................................................22
12.3 LOST, STOLEN OR DESTROYED CERTIFICATES..............................................................23
ARTICLE XIII. AMENDMENTS.........................................................................................23
13.1 AMENDMENT, ETC. OF OPERATING AGREEMENT..............................................................23
13.2 AMENDMENT OF ARTICLES OF ORGANIZATION...............................................................23
ARTICLE XIV. REPRESENTATIONS AND ACKNOWLEDGMENTS.................................................................23
14.1 INVESTMENT REPRESENTATIONS..........................................................................23
14.2 NO REPRESENTATIONS BY LLC...........................................................................24
ARTICLE XV. MISCELLANEOUS PROVISIONS.............................................................................24
15.1 COUNTERPARTS........................................................................................24
15.2 SURVIVAL OF RIGHTS..................................................................................24
15.3 SEVERABILITY........................................................................................24
15.4 NOTIFICATION OR NOTICES.............................................................................24
15.5 GOVERNING LAW.......................................................................................25
15.6 FURTHER ACTIONS.....................................................................................25
15.7 ARBITRATION OF DISPUTES.............................................................................25
15.8 THIRD PARTY BENEFICIARIES...........................................................................25
15.9 PARTITION...........................................................................................25
15.10 ENTIRE AGREEMENT...................................................................................25
15.11 WAIVER.............................................................................................25
15.12 ATTORNEYS' FEES....................................................................................26
15.13 CONFIDENTIALITY....................................................................................26
</TABLE>
EXHIBIT A Initial Member Names and Addresses; Initial Capital Contributions and
Percentage Interests
EXHIBIT B Form of Certificate for LLC Interest
<PAGE>
SOMA PETROLEUM, LLC
LIMITED LIABILITY COMPANY OPERATING AGREEMENT
This Limited Liability Company Operating Agreement (this "Agreement")
is made and entered into effective as of February 27, 2004 by and among the
Persons executing this Agreement on the signature pages hereof, with reference
to the recitals set forth below.
R E C I T A L S
WHEREAS, the Member(s) have caused SOMA PETROLEUM, LLC (the "LLC") to
be formed pursuant to the provisions of the Nevada Revised Statutes as set forth
in Title 7, Chapter 86 (the "Statute"); and
WHEREAS, the Member(s) do hereby adopt this Agreement as the operating
agreement of the LLC.
NOW, THEREFORE, in consideration of the covenants and the promises made
herein, the parties hereto hereby agree as follows.
ARTICLE I.
DEFINITIONS AND INTERPRETATION
1.1......CERTAIN DEFINITIONS. In this Agreement, the following terms
have the meanings specified or referred to in this Section 1.1, which shall be
equally applicable to both the singular and plural forms.
1.1.1 "Adjusted Capital Account Deficit" means, with respect
to any Member, the deficit balance, if any, in such Member's Capital Account as
of the end of the relevant fiscal year of the LLC, after giving effect to the
following adjustments:
(i) increase such Capital Account by any amounts
which such Member is obligated to contribute to the LLC (pursuant to
the terms of this Agreement or otherwise) or is deemed to be obligated
to contribute to the LLC pursuant to Regulations Sections 1.704-2(g)(1)
and 1.704-2(i)(5); and
(ii) reduce such Capital Account by the amount of
the items described in Regulations Sections 1.704-1(b)(2)(ii)(d)(4),
(5) and (6).
1.1.2 "Affiliate" means, when used with reference to a
specified Person, (i) the Principal of the Person, (ii) any Person directly or
indirectly controlling, controlled by or under common control with such Person,
(iii) any Person owning or controlling 10% or more of the outstanding voting
interests of such Person and (iv) any relative or spouse of such Person.
1.1.3 "Agreement" means this Limited Liability Company
Operating Agreement, as originally executed and as amended from time to time.
1.1.4 "Articles of Organization" means the articles of
organization filed with the Nevada Secretary of State for the purpose of forming
the LLC.
1.1.5 "Available Cash Flow" means, with respect to any fiscal
year of the LLC or other period, the sum of all cash receipts of the LLC from
any and all sources, less all cash disbursements (including loan repayments,
capital improvements and replacements) and a reasonable allowance for Reserves,
contingencies and anticipated obligations, as determined by the Manager.
1.1.6 "Capital Contribution" means any money, property or
services rendered, or a promissory note or other binding obligation to
contribute money, property or services, that a Member contributes to the LLC as
capital in such Member's capacity as a Member and pursuant to an agreement among
the Members, including an agreement as to the value of such contribution.
1.1.7 "Code" means the Internal Revenue Code of 1986, as
amended.
1.1.8 "Depreciation" means, for each fiscal year of the LLC or
other period, an amount equal to the depreciation, amortization or other cost
recovery reduction allowable with respect to an asset for such fiscal year or
other period.
1.1.9 "Disassociation Event" means the death, retirement,
resignation, expulsion, bankruptcy or dissolution of a Member, or any other
event that terminates the continued membership in the LLC of a Member.
1.1.10 "Economic Interest" means a Person's right to share in
the Net Profits, Net Losses or similar items of, and to receive distributions
from, the LLC, but does not include any other rights of a Member including the
right to vote or to participate in the management of the LLC or, except as
|
End of Preview |
Home Intelligence Services Subscriptions News About Us