HomeMy WebLinkAboutOPERATING AGREEMENTff r
OPERA
BILTMORE COMMERCIAL PARK, LLC
THIS AGREEMENT (the' ") is made effective as of the 13th day of May,
2004 by and among Miguel A. JimenezJr. as manager (the "Manager') and City Commercial
Properties, LLC, a Florida limited liability company, as Member (the "Member").
WHEREAS, the Articles of Organi:
LLC, a Florida limited liability company
Secretary of State of the State of Florida on
(the "Articles") of Biltmore Commercial Park,
"Compan '), were filed in the Office of the
13, 2004; and
WHEREAS, the Manager and the Members desire to set forth their respective rights and
obligations in respect of the Company;
NOW, THEREFORE, in consideration of the foregoing, the Manager and Members
hereto agree as follows:
For the purposes of this
respective meanings:
1.1 "Act" has the meaning ascribed
1.2 "Adjusted Capital Account Del
fiscal year, the deficit balance, if any, in such
fiscal year, after giving effect to the following
NS
the following terms shall have the following
it in Section 2.1 hereof
means, with respect to any Member for any
fiber's Capital Account as of the end of such
iustments:
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(a) credit to such Capital Account any amounts which such Member is
obligated to restore thereto pursuant to any provision of this Agreement, is treated as obligated to
restore pursuant to Section 1.704-1(b)(2)(ii)(c); of the Regulations, or is deemed to be obligated
to restore thereto pursuant to the penultimate! sentences of Sections 1.704-2(g)(1) and 1.704-
2(i)(5) of the Regulations, or any successor provisions; and
(b) debit to such Capital Account the items described in Sections 1.704-
1(b)(2)(ii)(d)(4), 1.704- 1 (b)(2)(ii) (d)(5), and 1.104-1(b)(2)(ii)(d)(6) of the Regulations..
The foregoing definition of Adjusted Capital Account Deficit is intended to comply with
the provisions of Section 1.704-1(b)(2)(ii)(d) of the Regulations and shall be interpreted
consistently therewith.
1.3 "Affiliate" has the meaning ascribed to it in Section 3.4 hereof.
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1.4 "Agreement" means this Agreement of Limited Company. .
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1.5 "Articles" has the meaning ascribed to it in the first recital of this Agreement.
1.6 "Available Cash from Gross
period (a) cash receipts derived from Gross
other .noncash expenses or items but after
Operating Expenses) and (b) Net Proceeds
sale or refinancing of contributed propert
restoration or creation of reserves as dete
1.7 "Available Cash from Co
pertinent period, Net Proceeds from Sales
more.Members to the Company after deduc
of reserves as determined from time to time
1.8 "Book Basis" means with
;" means, for the applicable or pertinent
(without deduction for depreciation or for
y)
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deduction for amounts used or necessary to pay
from Sales or Refinancings (other than those from the
, each after deduction for amounts set aside for
d from time to time by the Members.
income tax purposes; provided, however, that
initial Book Basis of such property shall equa
and (b) the Capital Accounts of the Members
Regulations to reflect the fair market value of
shall be adjusted to equal its respective fair n
accordance with such Regulation. The Book
depreciation as provided in Section 1.704-1
adjustment to the basis of assets other than dep
1.9 "Capital Account" means, with
the Company for such Member in accordance
buted Property" means, for the applicable or
Refinancings of property contributed by one or
a for amounts set aside for restoration or creation
the Manager in its sole and absolute discretion.
to any asset,.the asset's adjusted basis for federal
" (a) property -is contributed to the Company, the
its fair market value on the date of contribution,
re adjusted pursuant to Section 1.704=1(b) of the
ny Company asset, the Book Basis of such asset
irket value as of the time of such adjustment in
3asis of all assets shall be adjusted thereafter by
b)(2)(iv)(g) of the Regulations and any other
-ciation or amortization.
(a) to each Member's Ca'
contributions of cash made by, such Member to
of any property contributed by such Member to,
to which such property, is subject or which j
distributive share of Profit, items thereof, and
pursuant to Section 6.04; and any other increa.
Cap
ect to any Member, the account maintained by
the following provisions:
Account there -shall be credited: any
the capital of the .Company plus the Book Basis.
the capital of the Company (net, of any liabilities
are assumed. by the Company); the Member's
items of income and gain specifically allocated
ses required by Section 1.704-1(b)(2)(iv), of the
Regulations;
(b) to each Member's Capital Account . there shall be debited: any
distributions of cash made from the Company to such Member plus the fair market value of any
property distributed in kind to such Member (net of any liabilities to which such property is
subject or which are assumed by such Member); the Member's distributive share of Loss, items
thereof and deductions or losses specially allocated to such Member pursuant to Section 6.04;
and any other decreases required by Section 1.704-1(b)(2)(iv)of the Regulations; and
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(c) in determining the amount of any liability for purposes of clauses (i) and
(ii) above, there shall be taken into account Section 752(c) of the Code and any other applicable
provisions of the Code and the Regulations.
The foregoing provisions and the other provisions of this Agreement relating to the maintenance
of Capital Accounts are intended to comply with Section 1.704-1(b) of the Regulations, and shall
be interpreted and applied in a manner consistent with such Regulations. In the event the
Manager shall determine that it is prudent to modify the manner in which the Capital Accounts,
or any debits or credits thereto (including, 'without limitation, debits or credits relating to
liabilities which are secured by contributed or distributed property or which are assumed by the
Company or any Member), are computed in order to comply with such Regulations, the Manager
may make such modification, provided that it is not likely to have a material effect on the
amounts distributable to any Member pursuant to Section 8.2 hereof upon the dissolution of the
Company. The Manager shall also make any (a) adjustments that are necessary or appropriate to
maintain equality between the aggregate Capital Accounts of the Members and the aggregate
amount of Company capital reflected on the Company's balance sheet, as computed for book
purposes in accordance with Section 1.704-1(b)(2)(iv)(g) of the Regulations, and (b) appropriate
modifications in the event unanticipated events that might otherwise cause this Agreement not to
comply with Section 1.704-1(b) of the Regulations.
1.10 "Capital Contributions" mean -
money and the Book Basis of any other prope
contributed property is subject) contributed to
respect to the Interest held by such Member a
reference in this Agreement to the Capital I
contributions to the capital of the Company m
in respect of such Interest of such Member.
with respect to any Member, the amount of
(less any amount of indebtedness to which any
e capital of the Company by such Member with .
pursuant to the terms of this Agreement. Any
atribution of a then Member shall include the
by any predecessor in interest of such Member
1.11 "Code" shall mean the Internal Revenue Code of 1986, as amended, or
corresponding provisions of subsequent revenue laws.
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1.12 "Company" has the meaning ascribed to it in the first recital of this Agreement.
1.13 "Company Year" has the meaning ascribed to it in Section 2.6 hereof.
1.14 "Event of Withdrawal' has the meaning ascribed to it in Section 7.5(b) hereof.
1.15 "Exempt Transferee" has the meaning ascribed to it in Section 7.1 hereof.
1.16 "Gross Revenues" means, for the applicable or pertinent period, all revenues
derived by the Company from the ownership of the Investments, but excludes Net Proceeds from
Sales or Refinancing.
1.17 "Initial Capital Contribution" hag the meaning ascribed to it in Section 5.1(a)
hereof.
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1.18 "Interest" means the entire ownership interest of a Member in the Company at
any particular time expressed as a percentage'of all Interests in the Company (viz. 100%), which
Interests are shown on Schedule A attached hereto.
1.19 "Invested Capital" means a Member's Initial Capital Contribution and any
additional capital contributed to the Company, collectively., net of any return of capital pursuant
to this Agreement. I
1.20 "Investments" means all
personal, tangible or intangible, as the Cc
1.21 "Legal Representative" has the
1.22 "Liquidating Agent" has the
1.23 "Manager" means Miguel A. Eli
1.24 "Member" means any of the
successors or transferees who is admitted as a
accordance with the requirements of this Agree
ties and any other property, whether real or
may acquire from time to time.
ascribed to it in Section 7.4(b) hereof.
ascribed to it in Section 8.1(c) hereof.
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, or any of their Exempt Transferees,
to the Company after the date hereof in
1.25 "Members" means, collectively, the Members and any of their Exempt
Transferees, successors or transferees who is admitted as a Member to the Company after the
date hereof in accordance with the requirements of this Agreement.
1.26 "Net Proceeds from Sales or Rc
by the Company from the sale, refinancing c
Investments after the payment of all debts and i
disposition and any Operating Expenses then p
of funds are insufficient to pay.
aancing" means the cash realized and received
other disposition of all or any portion of the
penses related to such sale; refinancing or other
able or past due which other Company sources
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1.27 "Nonrecourse Deductions" has the meaning set forth in Section 1.704-2(b)(1) of
the Regulations.
1.28 "Nonrecourse Liability" has the meaning set forth in Section 1.704-2(b)(3) of the
Regulations.
1.29 "Operating Expenses" means, for the applicable or pertinent period, all cash
expenditures or payments made by the Company, during such period of every kind and nature in
connection with the acquisition and ownership of, the Investments and/or operations and business
of the Company.
1.30 "Partner Nonrecourse Debt"'has the meaning set forth in Section 1.704-2(b)(4) of
the Regulations. I
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1.31 "Partner Nonrecourse Debt Minimum Gain" has the meaning set forth in Section
1.704-2(i)(2) of the Regulations.
1.32 "Partner Nonrecourse Deductions" has the meaning set.forth in Sections 1.704
2(i)(1) and 1.704-2(i)(2) of the Regulations. ,
1.33 "Partnership Minimum Gain" hlas the meaning set forth in,Sections 1.704-2(b)(2)
and 1.704-2(d) of the Regulations.
1.34 "Profits" and "Losses" means, foi r each Company Year or other period, an amount
equal to the Company's taxable income or loss for such year or period, determined in accordance
with Section 703(a) of the Code (for this purpose, all items of income, gain, loss, or deduction
required to be stated separately pursuant to Section 703(a)(1) of the Code shall be included in
taxable income or loss), with the following adjustments:
() any a income of the Company that is exempt from Federal income tax and
not otherwise taken into account in computing Profits or Losses shall be added to such taxable
income or loss;
(b) any expenditures of the
Code or treated as Section 705(a)(2)(B) expe
the Regulations and not otherwise taken into
subtracted from such taxable income or loss;
iy described in Section 705(a)(2)(B) of the
pursuant to Section 1.704-1(b)(2)(iv)(i) of
in computing Profits or Losses, shall be
(c) gain or loss resulting from any disposition Hof Company property with
respect to which gain or loss is recognized for Federal income tax purposes shall be computed by
reference to the Book -Basis of the property disposed of, notwithstanding that the adjusted tax
basis of such property differs from its Book Basis;
(d) in lieu of the depreciation, amortization, and other cost recovery
deductions taken into account in computing such ;taxable income or loss, there shall be taken into
account depreciation for such Company Year or! other period as determined in accordance with
Section 1.704-1(b)(2)(iv)(g); i
(e) notwithstanding any other provisions hereof, any items which are specially
allocated pursuant to Section 6.4 hereof shall not be taken into account in computing Profits or
Losses; and
(f) any increase or decrease to, capital accounts as a result of any adjustment
to the book value of Company assets pursuant to Section 1.704-1(b)(2)(iv)(g) of the. Regulations
shall constitute an item of Profit or Loss as appropriate.
The amounts of the items of Company income, gain, loss or deduction available to be specially
allocated pursuant to Article VI hereof shall be determined by applying rules analogous to those
set forth in clauses (i) - (v) above and Section 6.41iereof.
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1.35 "Regulations" means the Federal Income Tax Regulations, as amended (including
Temporary Regulations) promulgated under the Code.
1.36 "Regulatory Allocations" has the meaning ascribed to it in Section 6.4(f) hereof.
1.37 "Returns" has the meaning ascribed to it in Section 4.2(c) hereof.
1.38 "Securities" has the meaning ascribed to it in Section 2.3(a)(i) hereof.
1.39 "Withdrawing Manager" has the meaning ascribed to it in Section 7.5(b) hereof.
1.40 "Withdrawing Member" has the meaning ascribed to it in Section 7.4(b) hereof.
ARTICLE II
ORGANIZATION
2.1 . Formation and Name of Company.
The Members hereby agree that the Company has been formed as a limited
liability company by the filing of the Articles under the name 'Biltmore Commercial Park, LLU
pursuant to the Florida Limited Liability Company Act, as amended (the "Act") and shall operate
under that name for the purposes indicated in Section 2.3 hereof. The Manager shall have the
power, in his, her or its sole and absolute discretion, to change the name of the Company and
shall give prompt notice of any such change io each Member. The Members agree to be
Members in the Company and to engage in the business hereinafter described for the period and
upon the terms and conditions hereinafter set forth.
2.2 Registered Agent and Registered Office.
The registered office of the Company in the State of Florida is at 12450
Northwest South River Drive, Miami, Florida 33178. The agent of the Company for service of
process in the State of Florida is Miguel A. Jimenez, Jr. The registered office and the business
office of the Company may each be changed from time to time by the Manager, in his, her or its
sole and absolute discretion, in which event written notice thereof shall be given by the Manager
to the Members.
2.3 Business, Purpose and Powers.
(a) The Company is organized for the following objectives and purposes:
(i) to acquire, hold, sell, sell short or - otherwise dispose of, and
generally to invest, reinvest and trade in, on margin or otherwise, capital stock, warrants, bonds,
notes and debentures (whether subordinated, convertible or other) and other securities of
whatever, kind or nature of any person, government, corporation or unincorporated body, rights
246- options.f :relating thereto, including "put" and "call" options, futures contracts and any. other
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financial instruments, commodities and commodity contracts (all such items being hereinafter
referred to as "Securities");
(ii) to purchase, sells, possess, hold, transfer, lease, license, mortgage,
pledge or otherwise deal in, and to exercise all rights, powers privileges and other incidents of
ownership or possession with respect to Investments; and
(iii) to engage in such other 'activities 'and transactions as may be
necessary or advisable in the discretion of the Manager.
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(b) In furtherance of the aforesaid business and purpose, the Company shall
have all powers necessary, suitable or convenient for the accomplishment thereof, alone or with
others, as principal or agent, including, without ilimitation, the following powers:
(i) to buy, sell, hold, receive, mortgage, pledge, transfer, exchange or
otherwise acquire or dispose or turn to account or realize upon, any property (real or personal,
tangible or intangible) of all types and varieties whether within any
without the State of Florida,
and to exercise all rights, powers, privileges and other incidents of ownership or possession with
respect to all property (real or personal, tangible for intangible) held or owned by the Company;
(ii) to hold, maintain) and/or invest all or any part of the assets,
properties or funds of the Company in cash or cash equivalents;
(iii) to borrow (for any
of the Company hereunder) or raise money fron
bills of exchange, warrants, bonds, debentw
instruments or evidences of indebtedness, to 'se
indebtedness and the interest thereon, throug]
conveyance or assignment in trust of the who]
Company, whether at the time owned or thereaftt
erm or period, whether or not beyond the term
time to time, to issue promissory notes, drafts,
;s and other negotiable and non-negotiable
ure the payment of the principal of any such
a margin account or by mortgage, pledge,
or any part of the assets or property of the
acquired;
(iv) to lend (for any term or period, whether or not beyond the term of
the Company hereunder) any of its assets, properties or funds, either with or without security;
(v) to have and maintain one or more offices and, in connection
therewith, to rent or acquire office space, engage personnel and compensate them to do such
other acts and things as may be advisable or necessary in connection with the maintenance of
such office or offices;
(vi) to open, maintain and close bank accounts and draw checks and
other orders for the payment of moneys;
(vii) ' to engage consultants, advisors, accountants, attorneys and any and
all other experts, agents and assistants, both professional and non-professional, and to
compensate them in such amount as may be necessary or appropriate;
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(viii) to enter into, make and perform all contracts, agreements and other
undertakings as may be necessary or appropriate or incident to carrying out the Company's
business and purpose;
(ix) to sue, to pr
parties, to compromise, settle or accept jud
all documents and make all representations,
zte, settle or compromise claims against third
it or claims against the Company and to execute
issions and waivers in connection therewith; and
(x) to take all other ilawful actions in connection therewith deemed
necessary or appropriate by the Manager in his, Iher or its sole and absolute discretion.
(c) Notwithstanding the
action, nor shall any Member make any. c
Company to be treated as an "investment
Code) if the Company were incorporated.
2.4 Principal Office.
in no. event shall the Manager take any
1 to the Company which would cause the
(within the meaning of Section 351 of the
The principal place of business '!of the Company shall be at 12450 Northwest
South River Drive, Miami, Florida 33178. ThelManager may provide for additional offices of
the Company within or without the State of Florida if the same are appropriate, in the sole and
absolute discretion of the Manager, for the conduct of the Company's business. However, no
office shall be established or maintained in any locality without first qualifying the Company, if
required, to do business in any such locality as a limited liability company.
2.5 Term.
The term of the Company commenced upon the filing of the Company's Articles
in the office of the Secretary of State of the State of Florida and shall continue until dissolved
and terminated as provided in Section 8.1 hereof.
2.6 Fiscal Year.
The fiscal year of the Company (the. "Company Year") shall be the calendar year.
2.7 Company Assets.
Ownership of assets acquired to effect the purpose of the Company shall be held
in the name of the Company, except as determined by the Manager in his, her or its' sole and
absolute discretion or as otherwise provided in this Agreement.
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ARTICLE III
MANAGEMENT OF BUSINESS
3.1 Authority of the Manager.
(a) The Manager shall have full and complete charge of all affairs of the
Company and shall have full power and authority to exercise any and all powers of the Company
hereunder or under applicable law. The management and control. of the Company's business
shall rest exclusively with the Manager, subject to the terms and conditions of this Agreement.
Without limiting the generality of the authority and powers of the Manager, the Manager is
expressly authorized, on behalf of the Company, to (i) sign all Company contracts and
agreements, (ii) execute checks, drafts and other orders for the payment of Company funds, (iii)
open, maintain and close bank accounts, brokerage accounts, and other accounts for the
Company, (iv) borrow or raise money from time to time, (v) lend Company funds, (vi) hire
employees of the Company and retain consultants, advisors, accountants, attorneys, and other
experts, agents and assistants for the Company, (vii) compromise and settle any claims made by
or against the Company (viii) sell any of the Company's assets and (ix) conduct other activities
on behalf of the Company in all matters consistent with the business and purpose of the
Company.
(b) The Manager is specifically, authorized to delegate all or any part of his,
her or its authority, discretion and powers hereunder and/or under applicable law to any
individual or entity, including any individual or entity affiliated with the Manager. In
furtherance thereof, the Manager, on behalf of the Company, may enter into an agreement with
any such individual or entity for the purpose of effecting or evidencing any such delegation.
Each such agreement shall be binding upon the Company in accordance with its terms.
(c) No person dealing with any employee or agent authorized by the Manager
shall be required to determine the authority of such employee or agent to act on behalf of the
Company, or to determine any facts or circumstances bearing on the existence of such authority,
or to see to the application by such employee or agent of any money or other property paid or
delivered to him as recipient for the Company.
(d) The Manager (to the extent that he, she or it, in his, her or its sole and
absolute discretion, determines the same to be needed for the proper conduct of the Company
business) may rent office space and incur telephone, telegraph, secretarial, bookkeeping,
publication, data processing, consulting, accounting and legal expenses, and may pay other
operating costs and expenses including, without limitation, salaries, bonuses and other
compensation. The Manager shall be entitled to obtain reimbursement from the Company for all
such costs and expenses, and the amount so reimbursed shall be an expense of the Company.
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3.2 Powers of Members.
(a) The Members shall take no part in the conduct or control of the
Company's business (other than to require that it be conducted in accordance with the terms and
conditions hereof) and shall have no authority to act for or bind the Company.
(b) The actions and decisions of the Manager relating to Company matters
shall be binding on the Company as provided in this Agreement.
3.3 Liability of Members.
The Members shall in no event be personally liable for or subject to any liability
or obligation whatsoever of the Company, or be required to contribute any capital to the
Company.
3.4 Permitted Transactions.
The fact that any Member or member, officer, director, stockholder, trustee,
fiduciary, employee or agent of such Member (collectively, an "Affiliate ") is, or is employed by,
or is directly or indirectly interested in or connected with, any firm or corporation employed by
the Company to render or perform a service, or from which the Company may make any
purchase, or to which the Company may borrow or sell, or to which the Company may lend,
shall not prohibit the Company from engaging in any such transaction with such firm or
corporation, or create any duty or legal obligation additional to that which would exist if such
firm or corporation were not so related to the Company, and neither the Company nor any other
Member shall have any rights in or to any income or profits derived from such transaction by
such Member, Affiliate, firm or corporation.
3.5 Exculpation and Indemnity; Reimbursement.
(a) Neither the Manager nor its Affiliates shall be liable, in damages or
otherwise, to the Company or to the Members for any act or omission performed or omitted by
any of them pursuant to the authority granted by this* Agreement, except if such act or omission
results from the bad faith or fraud of any such person. The Company shall indemnify, defend
and hold harmless the Manager and its Affiliates from and against any and all claims or liabilities
of any nature whatsoever arising out of or in connection with the assets or business of the
Company, except where attributable to the bad faith or fraud of any such person. The Manager
shall be entitled to reimbursement for the costs and any legal fees of enforcing the foregoing
indemnity.
(b) The Manager shall be entitled to reimbursement by the Company for any
out-of-pocket expenses paid for or incurred by the Manager for the internal overhead and other
expenses related to the Company, its Investments and its operations.
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ARTICLE IV
REPORTS TO MEMBERS; ACCOUNTS
4.1 Books of Account.
At all times during the continuance of the Company, the Manager shall keep or
cause to be kept true and correct books of account, in which shall be entered fully and accurately
each transaction of the Company. Such books of account shall at.all times be maintained at the
principal office of the Company and shall be open to the reasonable inspection and examination
of the Members or their duly authorized representatives. The Manager shall be entitled to
reimbursement by the Company for any out-of-pocket expenses paid or incurred by it in
connection with keeping such books.
4.2 Audit and Reports.
(a) In the sole and absolute discretion of the Manager, the books and records
of the Company shall be reported on as of the end of each Company Year by a firm of
independent certified public accountants; provided, however, that the Manager shall not be
required to retain any such independent certified public accountants. Such accountants shall be
selected from time to time by the Manager in his, her or its sole and absolute discretion.
(b) The Manager shall use reasonable efforts to cause to be delivered to each
Member, within ninety (90) days after the end of each Company Year, and at the Company's
expense, the following:
(i) financial statements of the Company as of the end of such
Company Year, including a profit and loss statement and a balance sheet of the Company
(unaudited);
(ii) a statement of the balance in the capital account of such Member,
starting with the balance as at the beginning of such Company Year and showing in reasonable
detail the charges and credits to the Member's capital account during such Company Year;
(iii) a statement of the amount of such Member's share of the
Company's taxable income or loss for such Company Year, and his, her or its share of each item
of income, deduction or.credit in sufficient detail to enable such Member to prepare his, her or its
federal, state and local tax returns; and
(iv) any other additional information which the Manager, in his, her or
its sole and absolute discretion, deems necessary or appropriate.
(c) The Manager shall prepare or cause to be prepared, at the Company's
expense, all federal, state and local tax returns of the Company (the "Returns") for each
Company Year for which the Returns are required to be filed. The Manager shall determine the
accounting methods and conventions to be used in the preparation of all Returns, and shall
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determine whether to make any applicable election under the tax laws of the United States, the
several states and other relevant jurisdictions as to the treatment of items of income, gain, loss,
deduction and credit of the Company. Such elections include, but are not limited to, in the case
of a distribution of Company property to a Member, the election under Section 754 of the Code
and under corresponding provisions of the applicable state and local tax laws to adjust the basis
of the assets of the Company pursuant to Sections 734 and 743 of the Code. As to all other
relevant matters, the Manager shall determine whether to claim any available credit or adopt any
other method or procedure related to the preparation of the Returns, taking into account the
interests of all the Members.
(d) In the event of an income tax audit of any Return, the Manager shall be
designated as the "Tax Matters Partner" as that term is defined in Section 6231 of the Code. All
expenses incurred in connection with such audit br related proceedings shall be an expense of the
Company.
4.3 Bank Accounts.
All funds of the Company shall be deposited in such bank and investment account
or accounts (interest bearing or not) as shall be designated from time to time by the Manager.
Withdrawals from any such bank or investment account or accounts shall be made upon such
signature or signatures as the Manager may designate.
ARTICLE V
CAPITAL CONTRIBUTIONS
5.1 Capital Contributions.
(a) Each Member has made an initial contribution to the capital of the
Company ("Initial Capital Contribution") of the amount of cash and/or other property shown on
Schedule A in consideration for the issuance by the Company to each such Member of the
percentage of Interest appearing next to such Member's name on Schedule A.
(b) Each percentage of Interest shall represent an equivalent economic interest
in the Company.
(c) Except as provided in this Agreement, no interest or other return shall be
paid on any Capital Contributions to the Company.
(d) No Member shall be required to make any additional capital contributions
to the Company except as provided in this Agreement or unanimously approved by the
Members.
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5.2 Capital Accounts.
(a) No Member shall be entitled to withdraw any part of his, her or its Capital
Account or Capital Contributions, or redeem his, her or its Interest without the prior consent of
the Manager, which consent may be unreasonably withheld. Only the Manager, in his, her or its
sole and absolute discretion, may permit. such withdrawals or redemptions. Except as provided
in this Agreement, no Member shall be permitted to receive any distributions from the Company.
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(b) At no time during ; the term of the Company, or upon dissolution and
liquidation of the Company, shall a Member with a negative balance in his capital account have
any obligation to the Company or the other Members to restore such negative balance.
5.3 Manager Not Personally Liable For Return of Capital.
Notwithstanding anything to the contrary contained herein, the Manager shall not
be personally liable for the distribution or return of the Capital Contributions, or any additions to
the Capital Accounts, of the Members, or any portion thereof, it being expressly agreed that any
such distribution, return or payment as may be made at any time, or from time to time, shall be
made solely from the assets of the Company as provided in this Agreement.
ARTICLE VI
DISTRIBUTIONS; INCOME AND LOSSES
6.1 Distributions.
(a) Available Cash from Gross Revenues of the Company may be distributed
to the Members at such times and in such amounts as the Manager may determine in his, her or
its sole and absolute discretion. Distributions of Available Cash from Gross Revenues, if and
when made, shall be made to the Members on a proportionate basis in accordance with each such
Members' Interest.
(b) Available Cash from Contributed Property may be distributed to the
Members at such times and in such amounts as the Manager may determine in his, her or its sole
and absolute discretion. Distributions of Available Cash from Contributed Property, if and when
made, shall be made to the Member(s) who contributed the properties to which such sales or
refinancings relate on a proportionate basis in accordance with the amount of net proceeds
generated by each such sale or refinancing bears to the total amount of net proceeds generated
from all such sales or refinancings of contributed property for the applicable period.
6.2 Allocations of Profits and Losses.
Except as provided in Sections 6.3 and 6.4 hereof, all Profits and Losses shall be
allocated for federal, state and local income tax purposes in the following order of priority:
13
(a) First, Profit shall be allocated to the Members to the extent of, and in
proportion to, their respective shares of Available Cash distributed pursuant to Section 6.1(a) and
6.1(b) hereof.
(b) Next, Loss from the sale �,of contributed property shall be allocated to the
Member who contributed the property to which the Loss relates.
(c) Finally, any remaining Profits and Losses shall be allocated to .the
Members on a proportionate basis in accordance with each such Members' Interest.
6.3 Special Allocations.
(a) Except as otherwise provided in this Agreement, all items of Company
income, gain, loss, deduction, and any other allocations not otherwise provided for herein shall
be divided among the Members in the same proportions as they share Profits or Losses, as the
case may be, for the Company Year.
(b) No allocation of loss or deduction shall be made to a Member if such
allocation would cause or increase an Adjusted ',Capital Account Deficit in such Member's
Capital Account after all other allocations for the current Company Year have been made. Any
such disallowed allocation shall be made to the Member or Members permitted to receive such
allocation in accordance with Section 1.704 of the Regulations in proportion to their respective
Interests.
6.4 Overriding Allocations of Profits and Losses.
(a) (i) Except as otherwise ',provided in Section 1.704-2(f) of the
Regulations, notwithstanding anything contained in this Article VI to the contrary, if there is a
net decrease in Partnership Minimum Gain during a taxable year of the Company, then there
shall be allocated to each Member, before any other allocation of any item of income, gain, loss,
deduction or credit is made for such taxable year, items of income and gain for such taxable year
(and, if necessary, for subsequent taxable years) in an amount equal to such Member's share of
the net decrease in Partnership Minimum Gain during such year (as specified in Section 1.704-
2(g) of the Regulations). Allocations pursuant to the previous sentence shall be made in
proportion to the respective amounts required to be allocated to each Member pursuant thereto.
The items to be, so allocated shall be determined in accordance with Sections 1.704-2(f)(6) and
1.704-20)(2) of the Regulations. The allocations contained in this Section 6.4(a)(i) is intended to
be a "minimum gain chargeback" within the meaning of Section 1.704-2(f) of the Regulations,
and shall be interpreted consistently therewith.
(ii) Except as otherwise provided in Section 1.704-2(i)(4) of the
Regulations, notwithstanding anything contained in this Article VI to the contrary, except
Section 6.4(a)(i) hereof, if there is a net decrease in Partner Nonrecourse Debt Minimum Gain
attributable to a Partner Nonrecourse Debt during any taxable year of the Company, each
Member who has a share of the Partner Nonrecourse Debt Minimum Gain attributable to such
14
Partner Nonrecourse Debt, determined in accordance with Section 1.704-2(i)(5) of the
Regulations, shall be specially allocated items of Company income and gain for such year (and,
if necessary, subsequent taxable years) in an amount equal to such Member's share of the net
decrease in Partner Nonrecourse Debt Minimum Gain attributable to such Partner Nonrecourse
Debt, determined in accordance .with Section �1.704-2(i)(4) of the Regulations. Allocations
pursuant to the previous sentence shall be made in proportion to the respective amounts required
to be allocated to each Member pursuant thereto. The items to be so allocated shall be
determined in accordance with Sections 1.704-2(i)(4), 1.704-2(f)(6) and 1.704-20)(2) of the
Regulations. This Section 6.4(a)(ii) is intended to comply with the minimum gain chargeback
requirement of Section 1.704-2(i)(4) of the Regulations and shall be interpreted consistently
therewith.
(b) Notwithstanding any provisions of this Article VI to the contrary, but
subject to the provisions of Section 6.4(a) hereof, in the event any Member unexpectedly
receives any adjustments, allocations, or distributions described in Section 1.704-
1(b)(2)(ii)(d)(4), 1.704-1(b)(2)(ii)(d)(5), or 1.704-1(b)(2)(ii)(d)(6) of the Regulations, items of
Company income and gain shall be specially allocated to each such Member in an amount and
manner sufficient to eliminate, to the extent required by the Regulations, the Adjusted Capital
Account Deficit of such Member as quickly as possible, provided that an allocation pursuant to
this Section 6.4(b) shall be made only if and to the extent that such Member would have an
Adjusted Capital Account Deficit after all other allocations provided for in this Article VI have
been tentatively made as if this Section 6.4(b) were not in this Agreement. In the event that any
such adjustments, allocations or distributions create an Adjusted Capital Account Deficit for
more than one Member in any taxable year of the Company, all such items of income and gain of
the Company for such taxable year and all subsequent taxable years shall be allocated among all
such Members in proportion to their respective Adjusted Capital Account Deficits in such
amount and manner sufficient to eliminate such Adjusted Capital Account Deficits as quickly as
possible. The allocation contained in this Section 6.4(b) is intended to be a "qualified income
offset" within the meaning of Section 1.704-1(b)(2)(ii)(d) of the Regulations, and shall be
interpreted consistently therewith. Thereafter, all profits and losses shall be allocated as
provided for in Section 6.2, Section 6.3, Section 6.4(c) and Section 6.4(d) hereof.
(c) Notwithstanding any provisions of this Article VI to the contrary, but
subject to the provisions of Section 6.4(a) and Section 6.4(b) hereof, in accordance with Section
704(c) of the Code and the Regulations promulgated thereunder, income, gain, loss, deduction
and tax depreciation with respect to any property contributed to the capital of the Company, or
with respect to any property which has a Book Basis different than its adjusted tax basis, shall,
solely for federal income tax purposes, be allocated among the Members so as to take into
account any variation between the adjusted tax basis of such property to the Company and the
Book Basis of such property.
(d) In the event any Member has an Adjusted Capital Account Deficit at the
end of any Company Year each such Member shall be specially allocated items of Company
income and gain in the amount of such excess as quickly as possible, provided that an allocation
pursuant to this Section 6.4(d) shall be made if and only to the extent that such Member would
15
have a deficit Capital Account in excess of such sum after all other allocations provided for in
this Article VI have been tentatively made as 'if Section 6.4(b) hereof and this Section 6.4(d)
were not in this Agreement;
(e) (i) Nonrecourse Deductions for any Company Year or other period
shall be specially allocated among the Members in proportion to their Interests.
(ii) Any Partner Nonrecourse Deductions for any Company Year shall
be specially allocated to the Member who bears; the economic risk of loss with respect to the
Partner Nonrecourse Debt to which such Partner Nonrecourse Deductions are attributable in
accordance with Section 1.704-2(i)(1) of the Regulations.
(f) The allocations set forth inI Section 6.4(a), Section 6.4(b), Section 6.4(d)
and Section 6.4(e) hereof (the "Re ug latory Allocations") are intended to comply with certain
requirements of the Regulations. It is the intent of the Members that, to the extent possible, all
Regulatory Allocations shall be offset either with pther Regulatory Allocations or with special
allocations of other items of Company income, gain, loss, or deduction pursuant to this Section
6.4. Therefore, notwithstanding any other provision of this Article VI (other than the Regulatory
Allocations), the Manager shall make such offsetting special allocations of Company income,
gain, loss, or deduction in whatever manner it 'determines appropriate so that, after such
offsetting allocations are made, each Member's 'Capital Account balance is, to the extent
possible, equal to the Capital Account balance such'l Member should have had if the Regulatory
Allocations were not part of the Agreement and all Company items were allocated pursuant to
Section 6.2, Section 6.3 and Section 6.4(c).
ARTICLE VII
ASSIGNMENTS; WITHDRAWAL AND SUBSTITUTION
OF MEMBERS; CERTAIN TRANSFERS
7.1 Assignments by Members.
(a) The Interest of a Member (and/or a Member's beneficial interest in the
income and losses of the Company) shall not be permitted to be transferred, sold, assigned,
redeemed, encumbered or otherwise disposed of unless the prior written consent of the Manager
is first obtained, which consent may be unreasonably withheld. No attempted transfer by any
person of the Interest of a Member (and/or a Member's beneficial interest in the income and
losses of the Company) other than with the prior written consent of the Manager shall be valid or
reflected on the Company's books. Notwithstanding the generality of the foregoing provisions of
this Section 7.1, a Member may, without the consent of the Manager, transfer all or any portion
of his or its Interest during lifetime or at death, to the Company, to any other Member, to his or
her spouse and/or lineal descendants, or to a trust, family limited partnership or other entity
created by such Member for the benefit of such Member, his or her spouse, or lineal descendants
(each, an "Exempt Transferee") subject, however, to the remaining provisions of this Section 7.1,
and provided that any permitted transfer shall be effective only if:
16
(i) a counterpart of the instrument. of transfer, executed and
acknowledged by the parties thereto and in form and substance reasonably acceptable to the
Manager, shall have been delivered to the Company;
(ii) the transferor or transferee shall have paid such amount, as the
Manager may determine, to cover all expenses connected with such assignment;
(iii) the transferor, if so' requested by the Manager, shall have delivered
to the Manager an opinion of counsel, acceptable to the Manager, and in form and substance
reasonably satisfactory to counsel to the Company to the effect that the proposed transfer of the
transferor's interest in the Company is exempt from the registration requirements of the
Securities Act of 1933 and complies with, or is lexempt from, the registration or qualification
requirements of any applicable state securities law�,or regulation;
(iv) the transferee, if so requested by the Manager, shall have delivered
to the Manager a letter, in form and substance reasonably acceptable to the Manager, stating that
the transferee is acquiring his, her or its interest; for investment, and not for the purpose of
reselling or otherwise distributing such interest, and that the transferee will not effect a further
transfer of such interest except pursuant to the terms and conditions of this Section 7.1 and
pursuant to all applicable federal and state securities) laws and regulations; and
( v) the transferor and transferee shall have executed, acknowledged
and delivered to the Company such other instruments and documents as the Manager shall
reasonably deem necessary or appropriate in connection with such transfer. A permitted transfer
shall be effective as of the date such transfer documents are signed.
(b) Subject to the provisions of Section 7.1(a) hereof, from and after the
effectiveness of a transfer of the Interest of a Member, the transferee shall be entitled, solely as
the transferee of the transferor's interest, to receive distributions and be credited or debited with
allocations of income or loss, all as herein provided, but such transferee shall have no other
rights by virtue of such transfer and shall not be deemed to be or to have become a substituted
Member. Anything herein contained to the contrary notwithstanding, the Company shall be
entitled to treat the transferor of his, her or its Interest as the absolute owner thereof and shall.
incur no liability by reason of distributions made in good faith to such transferor, until such time
as the assignment instruments shall have been filed with and accepted by the Company and
receipt thereof acknowledged by the Manager on behalf of the Company.
(c) A transferee of all or part of a Manager's Interest or his, her or its
beneficial interest in the income and losses of the Company shall have the right to become a
substituted Member if-
(i) the transferor shall have stated its intention that the transferee
becomes a substituted Member in the instrument of assignment which is in form and substance
satisfactory to the Manager;
17
(ii) the transferee shall have executed an instrument, in form and
substance satisfactory to the Manager, accepting, adopting and agreeing to be bound by all of the
terms and conditions of this Agreement as the same theretofore may have been amended;
(iii) the transferor or � transferee shall have paid all expenses in
connection with the admission of the transferee', as a Member, including, without limitation, all
legal expenses and all expenses related to the amendment of the Articles of Organization, if any;
(iv) the transferor and transferee shall have executed, acknowledged
and delivered to the Company such other instruments and documents as the Manager shall deem
reasonably necessary or appropriate in connection�with such substitution; and
(v) the Manager shall have consented to such substitution, which
consent may be unreasonably withheld. The substitution of a Member shall be effective as of the
date of such consent, and the substituted Member thereafter shall have all of the rights and
obligations of the Member for whom he or she has been substituted.
7.2 Withdrawal, Bankruptcy Death, Dissolution, Liquidation or Adiudication of
Incompetency of a Member.
(a) Except as provided in Section 7.1 or Section 7.2 (b) hereof, no Member
shall be allowed to withdraw from the Company prior to dissolution of the Company pursuant to
Section 8.1 hereof.
(b) In the event and upon the effectiveness of the bankruptcy (as defined in
Section 7.4(c) hereof), death, dissolution, liquidation,, or adjudication of incompetency of, or the
appointment of a guardian, committee or conservator for, a Member .(the "Withdrawing
Member'), the executor, administrator, guardian, committee, liquidator, conservator, trustee or
other legal representative (the "Legal Representative") of the Withdrawing Member shall
succeed to the rights of such Withdrawing Member to receive allocations and distributions
hereunder. The withdrawal of a Withdrawing Member pursuant to this Section 7.3 shall not give
rise to a dissolution or liquidation of the Company.
(c) For purposes of this Agreement, the term "bankruptcy" shall mean the
filing by a Member of a voluntary petition in bankruptcy or a voluntary petition seeking
reorganization, arrangement or readjustment in any form of its debts under the Federal
Bankruptcy Code or any other federal or state insolvency law, or a Member's filing an answer
consenting to or acquiescing in any such petition; the making by a Member of any assignment
for the benefit of his, her or its creditors or the admission in writing by a Member of his, her or
its inability to pay his, her or its debts when they become due; or the expiration of sixty (60) days
after the filing of an involuntary petition against a Member in bankruptcy, an application for the
appointment of a receiver for the assets of a Member, or an involuntary petition seeking
reorganization, arrangement or readjustment of its debts under the Federal Bankruptcy Code or
any other federal or state insolvency law, provided that the same shall not have been vacated, set
aside or stayed within such sixty-day period.
18
7.3 Withdrawal Bankruptcy Death Dissolution Liquidation or Adjudication of
Incompetency of the Manager.
(a) Except as provided in Section 7.5(b) hereof, the Manager shall not
withdraw from the Company, and shall not cease to be the Manager; prior to dissolution of the
Company pursuant to Section 8.1 hereof.
(b) In the event and upon the effectiveness of the bankruptcy (as defined in
Section 7.4(c) hereof), death, dissolution, liquidation, or adjudication of incompetency of, or the
appointment of a guardian, committee or conservator for, or 'other withdrawal (including a
withdrawal in contravention of this Agreement) (each such event herein referred to as an "Event
of Withdrawal") of the Manager (the "Withdrawing Manager"), the Company shall be dissolved
unless the remaining Managers (if any) shall elect to reconstitute and continue the Company or, a
majority -in -Interest of the Members, within sixty (60) days after the applicable Event of
Withdrawal, designate a successor Manager and continue the business of the Company
employing the Company's assets and name. In the case of the bankruptcy, involuntary
liquidation or involuntary dissolution of: the Manager, the remaining Manager (if any) or a
majority -in -Interest of the Members, as the case may be, may elect to allow the Withdrawing
Manager to continue to act as the Manager of the Company. If the remaining Manager (if any)
or a majority -in -Interest of the Members;so elect to continue the business of the Company, the
Company shall not terminate but shall; continue and the successor Manager shall execute,
acknowledge and file an amendment ito the Articles. The Legal Representative of the
Withdrawing Manager shall succeed to the rights of the .Withdrawing Manager to receive
allocations and distributions hereunder. Except as provided in this Section, the Withdrawing
Manager or its Legal Representative shall have no right, power or obligation to become a
Manager of the Company.
7.6 Prohibited Transfers. .
Notwithstanding anything else in this Agreement to the contrary, no transfer of
any Interest by any Member shall be permitted which would result in the "termination" of the
Company pursuant to Section 708 of the Code, or which would result in the Company being
treated as a "publicly traded Company" under Section 7704 of the Code.
ARTICLE VIII
DISSOLUTION AND LIQUIDATION
8.1 Dissolution.
(a) The Company shall continue until dissolved by agreement between the
Manager and a majority -in -Interest of the Members or in accordance with Section 7.5 hereof.
(b) The dissolution of the Company shall not relieve or release any of the
parties hereto of or from their contractual obligations under this Agreement.
19
(c) Upon the dissolution of the Company for any reason, the Company shall
continue in existence solely for the purpose of winding up its affairs, and the property and
business of the Company shall be liquidated as provided in Section 8.2 hereof by the Manager or,
in the event of the unavailability of the Manager, such other person (the "Liquidating A ent") as
shall be designated by the Manager.
8.2 Liquidation.
(a) Upon the dissolution of the Company, the Manager or the Liquidating
Agent shall proceed to sell or otherwise liquidate the assets of the. Company, and the proceeds of
such liquidation shall be applied and distributed in the following order of priority (against which
priorities all proceeds of such liquidation, whenever received, shall be applied on a cumulative
basis):
(i) . First, to the payment, in the order of priority required by law, of
debts and liabilities of the Company (other than any loans or advances that may have been made
by the Members to the Company) and the expenses of liquidation;
(ii) Then, to the establishment of such reserves which the Manager or
the Liquidating Agent may deem reasonably necessary for contingent or unforeseen liabilities or
obligations of the Company or of the Manager arising out of or in connection with the Company,
which may be held in escrow for a reasonable period of time and then distributed as provided
herein;
(iii) Then, to the repayment of any loans or advances that may have
been made by the Members to the Company, including reimbursements and indemnity payments
pursuant to Section 3.5, Section 4.1 and Section 4.2 hereof; provided, however, that if the
proceeds of such liquidation shall be insufficient to fund the aggregate amount required under
this Section 8.2(a)(iii), then the repayments to the Members shall be reduced ratably;
(iv) Finally, all remaining proceeds of such liquidation shall be
distributed to the Members in accordance with, and to the extent of, their positive Capital
Account balances, after taking into account adjustments for the taxable year during which
liquidation occurs by the end of such taxable year (or, if later, within ninety (90) days after the
date of liquidation).
(b) A reasonable time shall be allowed for the orderly liquidation of the assets
of the Company and the discharge of liabilities to creditors so as to enable the Manager or the
Liquidating Agent to minimize the losses normally attendant upon a liquidation.
(c) No Member shall be entitled to demand and receive assets or property
other than cash in return for his or its capital contribution to the Company, and each Member
hereby waives all right to partition of the assets and property of the Company.
20
(d) Within sixty (60) days after the date of the completion of the liquidation of
the Company, each of the Members shall be furnished with a statement prepared by the
Company's accountants that shall set forth the assets and liabilities of the Company as of such
date.
(e) Upon compliance by the Manager or the Liquidating Agent with the
foregoing distribution plan, the Members shall cease to be Members, and the Manager or the
Liquidating Agent shall execute, acknowledge and cause to be filed the Articles of Dissolution of
the Company; provided, however, that the Manager or the Liquidating Agent shall retain full
authority to direct the escrowee in respect of the disbursement and/or the distribution of the
funds, if any, held pursuant to the provisions of Section 8.2(a)(ii) hereof.
ARTICLE IX
DISCLOSURES
9.1 Disclosures.
Each Member hereby acknowledges, represents, warrants and/or agrees as
follows:
(a) That such Member understands that the Interest being acquired by him,
her or it has not been registered under the Securities Act of 1933, as amended (the "Securities
Act"), or any state securities laws in reliance on exemptions therefrom for non-public offerings
and further understands that such Interest has not been approved or disapproved by the Securities
Exchange Commission, any state securities administrator or any other federal or state agency.
(b) That such Member is acquiring such Interest for his, her or its own
account, for investment purposes only, and not with a view to the sale or other distribution
thereof, in whole or in part or directly or indirectly.
(c) Since the Interest of such Member has been acquired for investment and
have not been registered under the Securities Act or any state securities laws, in addition to the
other limitations, restrictions and requirements set forth in this Agreement, the Interest may not
be sold, pledged, hypothecated or otherwise transferred except upon delivery to the Company of
an opinion of counsel of such Member satisfactory to the Manager and his, her or its counsel that
such registrations are not required for such transfer and/or the submission to the Manager of such
other evidence as may be satisfactory to the Manager and his, her or its counsel to the effect that
any such transfer shall not be in violation of the Securities Act or applicable state securities laws
or rules or regulations promulgated thereunder.
21
C�
ARTICLE X
MISCELLANEOUS
10.1 Power of Attorney.
Each Member hereby irrevocably constitutes and appoints the Manager its true
and lawful attorney, in its name, place and stead, to make, execute, acknowledge and file with
the appropriate authority:
(i) any certificates or other instruments which may be required to be
filed by the Company under the laws of the State of Florida or any other governmental authority
having jurisdiction thereover, or any other certificates or instruments which the Manager shall
deem it advisable, in his, her or its sole and absolute discretion, to file;
(ii) any certificates or other instruments amending or modifying the
Articles as provided for herein;
(iii) any certificates or other instruments which may be required to
effectuate the dissolution and termination of the Company and/or the cancellation of the Articles;
and
(iv) any amendment of this Agreement which the Manager is
authorized to make in accordance with the provisions of this Agreement; it being expressly
understood and intended by each of the Members that such powers of attorney are coupled with
an interest. In the event of the occurrence of an Event of Withdrawal pursuant to Section 7.5(b),
each Member hereby irrevocably constitutes and appoints the successor Manager or the
Liquidating Agent, as the case may be, his true and lawful attorney, in his name, place and stead,
it being expressly understood and intended by each of the Members that such power is coupled
with an interest. The foregoing powers of attorney shall be irrevocable and shall survive any
assignment of the whole or any part of the interest in the Company of a Member and shall
survive the death or incompetence of a Member and shall be binding upon the assignee thereof.
10.2 Completeness; Amendment.
This Agreement sets forth the entire understanding of the parties hereto and no
provision hereof may be amended, waived or modified at any time, except, insofar as is
consistent with the laws governing this Agreement, upon the prior written approval of all of the
Members; provided, however, that without the consent of the other Members, the Manager may
make any amendments to this Agreement for the purpose of curing any ambiguity or correcting
or supplementing any provision contained herein or in any amendment hereof which may be
defective or inconsistent with any other provision contained herein or any amendment hereof,
and may modify the allocations of income and loss provided for in Article VI for the purpose of
complying with changes in the law, applicable regulations and administrative and/or judicial
interpretations of such laws. Notwithstanding the foregoing, without the specific consent of each
Member adversely affected thereby, no modification or amendment shall (i) change the business
22
and purpose of the Company as provided in Section 2.3 hereof, (ii) change the Company to a
general Company, (iii) change the right or proportionate interest of any Member to participate in
distributions or in income and losses, except for the permitted modifications noted in the
immediately preceding sentence, (iv) affect the limited liability of any Member as set forth
herein, or (v) amend this Section 10.2.
10.3 Authorit to o Act.
Notwithstanding anything to the contrary contained herein, the acts of the
Manager in carrying on the business of the Company as authorized herein shall bind the
Company.
10.4 BindingEffect.
ffect.
This Agreement shall be binding upon and inure to the benefit of the successors,
assigns and Legal Representatives of the respective Members, and shall inure to the benefit of
the permitted successors, assigns and Legal Representatives of the respective Members.
10.5 Counterparts.
This Agreement may be executed in any number of counterparts, each of which
shall be an original instrument and all of which, when taken together, shall constitute one and the
same Agreement.
10.6 Notices.
Each notice relating to this Agreement shall be in writing and delivered either in
person, by hand with a signed delivery receipt required, by depositing the same in the United
States mails, first class postage prepaid, or by overnight delivery by a nationally recognized
carrier. All notices to the Company shall be addressed to its principal office and place of
business. All notices addressed to a member shall be addressed to such Member at the address
set forth on Schedule A. Any Member may designate a new address by notice to that effect
given to the Company. A notice shall be deemed to have been effectively given when mailed by
first class mail to the proper address or delivered in person and the time for responding thereto
shall commence with the date of delivery.
10.7 Further Assurances.
The Members agree hereafter to execute, acknowledge, deliver, file, record and
publish such further certificates, instruments, agreements and other documents and to take all
such further action as may be required by law or deemed by the Manager, any successor
Manager or any Liquidating Agent to be necessary or useful in furtherance of the Company's
purposes and the objectives and intention underlying this Agreement and not inconsistent with
the terms hereof.
23
10.8 Arbitration.
All disputes which may arise under this Agreement shall be settled by arbitration
pursuant to the rules of the American Arbitration Association by a single arbitrator. Such
arbitration shall take place in the county of Miami -Dade, Florida or at such other location as the
parties to the dispute shall agree upon. If the parties ' to a dispute do not agree on a single
arbitrator, each of the parties shall choose an arbitrator practicing in the county of Miami -Dade,
Florida and those arbitrators shall choose the arbitrator who shall arbitrate the dispute. Each
party shall designate in writing to the other .party its respective arbitrator appointee within 30
days after the determination, by written notice by any party, that the .parties cannot agree as to a
single arbitrator. The decision of arbitrator shall be binding on the parties to the controversy and
their representatives. Such decision shall be enforced with the same force and effect as a decree
of a court having jurisdiction over the matter. I The fees and expenses, including attorneys' fees,
which may be incurred in connection with any such arbitration shall be paid by the party whose
contention is rejected by the decision of the arbitration, or if only partially rejected, as allocated
by the decision of the arbitrator.
10.9 Headings.
The headings of the Sections of this Agreement are inserted for convenience of
reference only, and are not to be considered in ;construing the terms, conditions and provisions of
this Agreement.
10.10 Pronouns.
All pronouns and any variations thereof shall be deemed to refer to the masculine,
feminine or neuter, singular or plural, as the identity of the parties hereto may require.
10.11 Entire Agreement.
This instrument constitutes all of the understandings and agreements of
whatsoever kind and nature existing among the parties hereto with respect to. the Company and
their relative rights, obligations and interests therein, and supersedes all prior negotiations,
representations, understandings and agreements among the parties hereto with respect to the
Company and such rights, obligations and interests.
10.12 Governing Law.
This Agreement shall be governed by and construed in accordance with the laws
of the State of Florida.
10.13 Provisions Severable.
In the event any sentence, paragraph, provision, section or article of this
Agreement is declared by a court of competent jurisdiction to be void, such sentence, paragraph,
24
provision, section or article shall be deemed severed from the remainder of the Agreement and
the balance of the Agreement shall remain in effect.
IN WITNESS WHEREOF, the undersigneds have duly executed this Operating
Agreement of Biltmore Commercial Park, LLC as of the day and year first above written.
Miguel A. n:te-z, Jr.
MEMBER
City Commercial perties, LLC
By:
Vicki . Jimenez, Member
25
SCHEDULE A
Capital
Member:
Address
Contribution
Interest
City Commercial Properties,
LLC
12450 Northwest South River Drive
$100
Miami, Florida 33178
100%
M.