HomeMy WebLinkAboutMisc OCT -10 -05 THU 15:07 GALINDO ENGINEERS 979 8468868 P.01
GALINDO ENGINEERS AND PLANNERS, INC.
3833 South Texas Ave., Suite 213 Bryan, Texas 77802 (979) 846 -8868
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GALINDO ENGINEERS AND PLANNERS, INC.
3833 South Texas Ave., Suite 213 Bryan, Texas 77802 (979) 846 -8868
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•
"Capital Contribution" means the total value of cash and agreed fair market value of
property contributed and agreed to be contributed to the Company by each Member, as
shown in Exhibit A, as may be amended from time to time. Reference in these Regulations
to the Capital Contribution of a present Member includes a Capital Contribution previously
made by any prior Member for the interest of the present Member, reduced by any
distribution to the Member in return of "Capital Contribution" as contemplated herein.
Additional Capital Contributions may be made only by a Member with that Member's
consent and with the consent of all other Members.
"Company" refers to Four Aggie Investments, LLC.
"Entity" means any association, corporation, general partnership, limited partnership,
limited liability partnership, limited liability company, joint stock association, joint venture,
firm, trust, business trust, cooperative, and foreign associations of like structure.
"Interest" in the Company means the entire ownership interest of a Member in the
Company at any particular time, including the right of the Member to any and all benefits
to which a Member may be entitled as provided in these Regulations and under the Act,
together with the obligations of the Member to comply with all of the terms and provisions
of these Regulations.
"Percentage Interests" of a Member means the percentage of a Member set forth opposite
the name of the Member under the column "Percentage Interest" in Exhibit A to these
regulations, as that percentage may be adjusted from time to time.
"Person" includes an individual, partnership, limited partnership, limited liability partnership,
limited liability company, foreign limited liability company, trust, estate, corporation,
custodian, trustee, executor, administrator, nominee or entity in a representative capacity.
"Principal Office" means the office of the Agent as shown in the Articles, or the other
address as may be established pursuant to Section 1.1(b) of these Regulations.
"Pro Rata Part" means the proportion that a Percentage Interest of a Member bears to the
aggregate Interest in the Company of all Members.
"Regulations" means these Regulations, as originally executed and as amended from time
to time.
"Substitute Member" means any person or Entity who or which is admitted into
Membership on the written consent of all Members pursuant to Section 6.4.
ARTICLE
PURPOSE
1.1. Company Purpose. The general purposes of the Company are as set forth in the
Articles. The Company may exercise all powers reasonable or necessary to pursue its
purpose. In addition, the Company may engage in and do any act concerning any or all
lawful businesses for which limited liability companies may be organized according to the
Act which purposes have been specifically authorized by all Members.
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ARTICLE II
MEMBERS; MEMBERSHIP INTERESTS
2.1. Names, Addresses and Initial Capital Contributions of Members. Members, their
respective addresses, their initial Capital Contributions to the Company, and their
respective Percentage Interest in the Company are set forth on Exhibit A, attached and
made part of these Regulations. Each Member agrees to make the initial contribution set
out in Exhibit A within ten (10) days.
2.2. Future Contributions. Subsequent contributions must be in the amounts and may be
in any type of property as agreed on by all of the Members. No Member is required to
make a Capital Contribution to the Company other than the Capital Contribution required
to be made by that Member under Section 2.I without the Member's prior express consent.
2.3. Member Loans or Services. Loans or services by a Member to the Company may
not be treated as a contribution to the capital of the Company.
2.4. Units of Membership Interests. The membership interest of the Company may be
divided into Units, each Unit to represent the amount of capital contributed as the Members
unanimously determine.
2.5. Certificates for Membership Interests. The Member's Interest in the Company may
be represented by a Certificate of Membership. The contents of a Certificate of
Membership is determined by the Members.
2.6. Capital and Capital Accounts.
(a) The initial Capital Contribution of each Member is as set forth in Exhibit A. No interest
may be paid on any Capital Contribution.
(b) An individual capital account (the "Capital Account ") must be established and
maintained on behalf of each Member, including any additional or substituted Member who
hereafter receives an Interest in the Company. The Capital Account of each Member
consists of (i) the amount of cash the Member has contributed to the Company, plus (ii) the
agreed fair market value of any property the Member has contributed to the Company, less
any liabilities assumed by the Company or to which the property is subject, plus (iii) the
amount of profits or income (including tax - exempt income) allocated to the Member, less
(iv) the amount of losses and deductions allocated to the Member, less (v) the amount of
all cash distributed to the member, less (vi) the fair market value of any property distributed
to the Member, net of any liability assumed by the Member or to which the property is
subject, less (vii) the Member's share of any other expenditures that are not deductible by
the Company for federal income tax purposes or which are not allowable as additions to
the basis of Company property, and (viii) subject to other adjustments that may be required
under the Code. The Capital Account of a Member is not affected by adjustments to basis
made pursuant to Section 743 of the Internal Revenue Code but must be adjusted with
respect to adjustments to basis made pursuant to Section 734 of the Code.
(c) No Member may withdraw his or her Capital Contribution or demand and receive
property of the Company or a distribution in return for his or her Capital Contribution,
except as is specifically provided in these Regulations or required by law. No Member may
receive out of Company property any part of his or her Capital Contribution until (i) all
K: \M I r \Limited \Restivo \Regs.wpd
liabilities of the Company, except liabilities to Members on account of their loans have been
paid or sufficient Company property remains to pay them, and (ii) all Members consent,
unless the return of the Contribution to Capital is rightfully demanded as provided in the
Act.
(d) Subject to the provisions of subsection (c) of this section, a Member may rightfully
demand the return of his or her Capital Contribution (i) on the dissolution of the Company,
or (ii) as may otherwise be provided in the Act. A Member may demand and receive only
cash in return for the Member's Capital Contribution.
(e) Except as is specifically provided otherwise in these Regulations or in the Act, no
Member has any liability or obligation to restore a negative or deficit balance in that
Member's Capital Account.
2.7. Admission of Additional Capital. Additional capital may be contributed to the
Company, but only on the written consent of all Members.
2.8. Admission of Additional Members. As provided in the Articles, the Members may
admit to the Company additional Member(s) to participate in the profits, losses, available
cash flow, and ownership of the assets of the Company on terms determined by all of the
Members. Admission of any Additional Member(s) requires the written consent of all
Members then having any Interest in the Company. Any Additional Members are allocated
gain, loss, income or expense by the method provided in these Regulations, and if no
method is specified, then as may be permitted by Section 706(d) of the Internal Revenue
Code.
2.9. Limitation on Liability. No Member is liable under a judgment, decree or order of the
court, or in any other manner, for a debt, obligation or liability of the Company, except as
provided by law. No Member is required to loan any funds to the Company. Except as is
expressly provided otherwise in these Regulations, no Member is required to make any
contribution to the Company by reason of any negative balance in his or her capital
account, nor does any negative balance in a Member's capital account create any liability
on the part of the Member to any third party.
2.10. No Individual Authority. Unless expressly provided in Article III, no Member, acting
alone, has any authority to act for, or to undertake or assume, any obligation, debt, duty
or responsibility on behalf of, any other Member or the Company.
2.11. No Member Responsible for Other Member's Commitment. In the event that a
Member (or a Member's shareholders, partners, members, owners, or Affiliates) has
incurred any indebtedness or obligation - prior to the execution date of these Regulations -
that relates to or otherwise affects the Company, neither the Company nor any other
Member has any liability or responsibility with -respect to the indebtedness 'or obligation -
unless the indebtedness or obligation is assumed by the Company pursuant to a written
instrument signed by all Members. Furthermore, neither the Company nor any Member is
responsible or liable for any indebtedness or obligation that is hereafter incurred by any
other Member (or a Member's shareholder, partners, members, owners, or Affiliates). In
the event that a Member (or a Member's shareholders, partners, members, owners, or
Affiliates (collectively, the "liable Member ")), whether prior to or after the date of execution
of these Regulations, incurs (or has incurred) any debt or obligation for which neither the
Company nor any of the other Members is responsible or liable, the liable Member must
indemnify and hold harmless the Company and the other Members from any related liability
K: \MI r\Li m iced \Restivo \Regs.wpd
or obligation they may incur.
ARTICLE III
MANAGEMENT AND CONTROL OF BUSINESS
3.1. Overall Management Vested in Members.
(a) Except as expressly provided otherwise in these Regulations or otherwise agreed,
management of the Company is vested in the Members in proportion to their initial Capital
Contributions. Except as provided in Section 3.3, below, all powers of the Company are
exercised by or under the authority of the members and the business and affairs of the
Company are managed under the direction of the Members. The Members or any of their
Affiliates may engage in other activities of any nature.
3.2. Meetings of the Members.
(a) Meetings of Members may be called by Members representing in the aggregate more
than 50 percent of the Percentage Interests in the Company.
(b) The Company must deliver or mail written notice stating the date, time, and place of any
meeting of Members and, when otherwise required by law, a description of the purposes
for which the meeting is called, to each Member of record entitled to vote at the meeting,
at the address that appears in the records of the Company. The notice is to be mailed at
least seven, but not more than thirty, days before the date and time of the meeting. A
Member may waive notice of any meeting, before or after the date of the meeting, by
delivering a signed waiver to the Company for inclusion in the minutes of the Company. A
Member's attendance at any meeting, in person or by proxy (i) waives objection to lack of
notice or defective notice of the meeting, unless the Member at the beginning of the
meeting objects to holding the meeting or transacting business at the meeting, and (ii)
waives objection to consideration of a particular matter at the meeting that is not within any
purposes described in the meeting notice, unless the Member objects to considering the
matter when it is presented.
(c) The record date for the purpose of determining the Members entitled to notice of a
Members' meeting, for demanding a meeting, for voting, or for taking any other action is
the tenth (10th) day prior to the date of the meeting or other action.
(d) A Member may appoint a proxy to vote or otherwise act for the Member pursuant to a
written appointment form executed by - the - Member or the Member's - duly authorized - - -
attorney -in -fact. An appointment of a proxy is effective when received by the Company. - •
The general proxy of a fiduciary is given the same effect as the general proxy of any other
Member. A proxy appointment is valid for three -months unles§• otherwise expressly stated
in the appointment form.
(e) At any meeting of Members, each Member entitled to vote has a number of votes equal
to the number of Units issued to the Member pursuant to Section 2.4, if any, and if none,
to the product of (i) the Member's Percentage Interest as set forth on Exhibit A (or
subsequent amended exhibits) times (ii) one hundred (100). At any meeting of Members,
presence of Members entitled to cast at least 51 percent of the total votes of all Members
entitled to vote at the meeting constitutes a quorum. Action on a matter is approved if the
matter receives approval by at least 51 percent of the total number of votes entitled to be
K :'tMIr\Limited\Restivo \Regs.wpd
cast by all Members in the Company entitled to vote at the meeting or the greater number
as may be required by law or the Articles for the particular matter under consideration. On
the occurrence of a Dissolution Event, a Former Member is not entitled to a vote in
determining whether the Company will purchase the interest of the Former Member as
permitted in Section 6.1. Also, any assignee of a Member's Interest in the Company is not
entitled to vote or participate on any matters at any meeting unless the assignee becomes
a Substitute Member as contemplated in Section 6.4.
(f) Any action required or permitted to be taken at a Members' meeting may be taken
without a meeting if the action is taken by all of the Members entitled to vote on the action.
The action must be evidenced by one or more written consents describing the action to be
taken, signed by all the Members entitled to vote on the action, and delivered to the
Company for inclusion in the minutes. The record date for determining Members entitled
to take action without a meeting is the first date a Member signs the consent to the action.
(g) Any or all Members may participate in a Members' meeting by, or through the use of,
any means of communications by which all Members participating may simultaneously
hear each other during the meeting. A Member so participating is deemed to be present
in person at the meeting.
(h) At any Members' meeting the Members must appoint a person to preside at the
meeting and a person to act as secretary of the meeting. The secretary of the meeting
must prepare minutes of the meeting which are placed in the minute books of the
Company.
3.3. Members to Make Joint Decisions.
(a) Major Decisions. No act may be taken, sum expended, decision made or obligation
incurred by the Company except by the unanimous consent of all Members with respect
to a matter within the scope of any of the major decisions enumerated below (the "Major
Decisions "). The Major Decisions include (i) the sale of all or substantially all assets of the
Company, (ii) mortgage or encumbrance on all or substantially all assets of the Company,
(iii) any matter which could result in a change in the amount or character of the Company's
contributions to capital, (iv) a change in the character of the business of the Company, (v)
borrowing or lending of money, (vi) commission of an act which would make it impossible
for the Company to carry on its ordinary business, or (vii) contravene these Regulations.
(b) Alteration of Management Responsibilities. Management responsibilities as set forth
in this Section may not be altered except by the action of a majority in interest of all
Members at a meeting called on written notice expressly describing alternation of - -
management responsibilities as one of the purposes of the meeting.
(c) Managing Member Compensation. Members may receive compensation as determined - _,
by all Members for services provided in the management of the Company. In all events,
Members may be reimbursed for all expenses advanced by Members on behalf of the
Company.
3.4. Powers of Members as Managers.
(a) Except as expressly provided in Section 3.3, above, each of the Members has all
necessary powers to carry out the purposes, business, and objectives of the Company,
including, but not limited to, the right to enter into and carry out contracts of all kinds; to
K:\MIr\Limited RestivaRegs.wpd
employ employees, agents, consultants and advisors on behalf of the Company; to lend
or borrow money and to issue evidences of indebtedness; to bring and defend actions in
law or at equity; to buy, own, manage, sell, lease, mortgage, pledge or otherwise acquire
or dispose of Company property. Each Member may deal with any related Affiliate or other
related person, firm or Entity on terms and conditions that would be available from an
independent responsible third party that is willing to perform.
(b) The Members may employ a competent person to be responsible for authenticating the
records of the Company, including keeping correct and complete books of account that
show accurately at all times the financial condition of the Company; safeguarding all funds,
notes, securities, and other valuables that may from time to time come into possession of
the Company; depositing all funds of the Company with depositories designated by the
Members. This competent person may have such other duties as the Members may from
time to time jointly prescribe, but under no circumstances does the employee have any of
the rights, powers, responsibilities or duties of a Member of the Company as prescribed
herein or by law. Any person responsible for the above - described duties may be terminated
at any time by a Member, and any Member may restrict the duties and /or authority of the
person responsible for these duties at any time.
(c) Every contract, deed, mortgage, lease and other instrument executed by a Member is
conclusive evidence in favor of every person relying on or claiming under the fact that, at
the time of its delivery, (i) the Company was in existence, (ii) neither these Regulations nor
the Articles had been amended in any manner to restrict the delegation of authority among
the Members, and (iii) the execution and delivery of the instrument was duly authorized by
the Members. Any person may always rely on a certificate addressed to him and signed
by any Member regarding the following:
(i) The identity of the Members;
(ii) The existence or non - existence of any fact that constitutes a condition precedent to acts
by the Member or in any other manner germane to the affairs of the Company;
(iii) Identity of person who is authorized to execute and deliver any instrument or document
of the Company;
(iv) The authenticity of any copy of the Articles, these Regulations, and any other document
relating to the conduct of the affairs of the Company; and
(v) Any act or failure to act by the Company or as to any other matter whatsoever involving
the Company or any Member in the capacity as a Member of the Company.
3.5. Reimbursement of Expenses. Each member is entitled to reimbursement from the
Company of all expenses of the Company reasicinably incurred and paid by the Member
on behalf of the Company.
3.6. Organization Expenses. The Company must pay all expenses incurred in the
organization of the Company.
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ARTICLE IV
ACCOUNTING AND RECORDS
4.1. Records and Accounting. The books and records of the Company must be kept, and
the financial position and the results of its operations recorded, in accordance with the
accounting methods elected to be followed by the Company for federal and state tax
purposes. The books and records of the Company must reflect all Company transactions
and must be appropriate and adequate for the Company's business. The fiscal year of the
Company for financial reporting and for federal income tax purposes is the calendar year.
4.2. Access to Accounting Records. All books and records of the Company must be
maintained at any office of the Company or at the Company's principal place of business,
and each Member, and his or her duly authorized representative, must have access to
them at the office of the Company and the right to inspect and copy them at reasonable
times.
4.3. Annual and Tax Information. The Members must use their best efforts to cause the
Company to deliver to each Member, within forty -five days after the end of each fiscal year,
all information necessary for the preparation of the Member's federal income tax return.
The Members must also use their best efforts to cause the Company to prepare, within
thirty days after the end of each fiscal year, a financial report of the Company for the fiscal
year, which contains a balance sheet as of the last day of the year then ended, an income
statement for the year then ended, a statement of sources and applications of funds, and
a statement of reconciliation of the Capital Accounts of the Members.
4.4. Accounting Decisions. All decisions regarding accounting matters, except as
otherwise specifically set forth in these Regulations, must be made by the Members. The
Members may rely on the advice of their accountants as to whether the decisions are in
accordance with accounting methods followed for federal and state tax purposes.
4.5. Income Tax Elections. The Company may make all elections for federal income tax
purposes, including, but not limited to, the following:
(a) To the extent permitted by applicable law and regulations, elect to use an accelerated
depreciation method on any depreciable unit of the assets of the Company; and
(b) In case of a transfer of all or part of the Company Interest of any Member, the Company
may elect, pursuant to Sections 734, 743, and 754 of the Internal Revenue Code, as
amended (or corresponding provisions of future law) to adjust of the assets of the
Company.
•
ARTICLE V
ALLOCATIONS; DISTRIBUTIONS; INTERESTS
5.1. Allocation of Net Income, Net Loss or Capital Gains. Except as may be expressly
provided otherwise in this Article and subject to the provisions of Section 704(c) of the
Internal Revenue Code, the net income, net loss or capital gains of the Company for each
fiscal year of the Company is allocated to the Members, pro rata in accordance with their
Percentage Interest.
K : \M I r \Limited \Rest i vo \Regs. wpd
5.2. Distribution of Available Cash. Periodically, but not less frequently than at the end
of each calendar quarter, the Available Cash of the Company, if any, must be distributed
to the Members, pro rata in accordance with their Percentage Interest. For any calendar
quarter, Available Cash of the Company need not be distributed to the extent that the cash
is required for a reasonable working capital reserve for the Company, the amount of
reasonable working capital reserve to be determined by the Members.
5.3. Allocation of Income and Loss and Distributions in Respect of Interests
Transferred.
(a) If any Interest in the Company is transferred, or is increased or decreased by reason
of the admission of a new Member or otherwise, during any fiscal year of the Company,
each item of income, gain, loss, deduction, or credit of the Company for the fiscal year
must be assigned pro rata to each day in the particular period of the fiscal year to which
such item is attributable (i.e., the day on or during which it is accrued or otherwise incurred)
and the amount of each item so assigned to any day is allocated to the Member based on
his or her respective Interest in the Company at the close of the day. For the purpose of
accounting convenience and simplicity, the Company may treat a transfer of, or an
increase or decrease in, an Interest in the Company which occurs at any time during a
semimonthly period (commencing with the semimonthly period including the date hereof)
as having been consummated on the first day of the semimonthly period, regardless of
when during the semimonthly period the transfer, increase, or decrease actually occurs
(i.e., sales and dispositions made during the first 15 days of any month are deemed to
have been made on the 16th day of the month).
(b) Distributions of Company assets in respect of an Interest in the Company is made only
to the Members who, according to the books and records of the Company, are the holders
of record of the Interests in respect of which the distributions are made on the actual date
of distribution. Neither the Company nor any Member incurs any liability for making
distributions in accordance with the provisions of the preceding sentence, whether or not
the Company or the Member has knowledge or notice of any transfer or purported transfer
of ownership of Interest in the Company which has not been approved by unanimous vote
of the Members. Notwithstanding any provision above to the contrary, gain or loss of the
Company realized in connection with a sale or other disposition of any of the assets of the
Company must be allocated solely to the parties owning Interests in the Company as of the
date the sale or other disposition occurs.
ARTICLE VI
CHANGES IN MEMBERS
6.1. Death, Dissolution, Retirement or Bankruptcy of Member.
(a) The death, retirement, resignation, bankruptcy or dissolution of a Member, or the
expiration of the period for the duration of the Company, or the occurrence of any other
event which terminates the continued membership of a Member in the Company (a
"Dissolution Event "), dissolves the Company unless the remaining Member(s) unanimously
consent to the continuation of the business of the Company ( "Unanimous Consent "). If the
Member whose actions or conduct result in the Dissolution Event ( "Former Member ") or
the Former Member's representative, rightfully demands the return of his Interest by a
written notice to the remaining Member(s), the Company (if the remaining Member(s)
unanimously consent in writing) or remaining Member(s), to avoid dissolution of Company,
K: \MI r\Lim ited \Restivo \Regs.wpd
must within 60 days following the written notice, purchase the Former Member's Interest
as provided in the subsections to this Article.
(b) On the occurrence of the Dissolution Event, and the Unanimous Consent, and if
applicable, the rightful demand for the return of the Former Member's Interest by the
Former Member or the Former Member's representative, the Company has first option to
purchase the Interest of the Former Member by giving notice of the intent to purchase
within 60 days following occurrence of the Dissolution Event or the demand for return of
contribution. If the Company elects to give notice within 60 days, the purchase and sale
obligation accrues 120 days after the Dissolution Event or rightful demand for return of
contribution. After the Company has given notice of its election and prior to the date on
which the purchase and sale obligation accrues, the parties must take all necessary steps
to determine the price and terms of the purchase and sale obligation as provided below.
(c) If the Company does not exercise its first option to purchase the Interest of a Former
Member within 60 days as provided above, for 30 days thereafter, that is, between the
61st and 90th day after the Dissolution Event or the rightful demand for withdrawal of
contribution, the remaining Members have an option to purchase the interest. Between the
61st and 90th day, the remaining Member(s) must notify the Former Member and all other
Members in writing of their desires to purchase a portion of the Former Member's Interest.
The failure of a Member to submit a notice within the applicable period constitutes an
election on the part of the remaining Member not to purchase any of the Former Member's
Interest. Each remaining Member may purchase a portion of the Former Member's Interest
based on the remaining Member's Pro Rata Part on the date of the Unanimous Consent
or the date of receipt of the rightful demand for the return of its Interest by the Former
Member.
(d) If the remaining Member(s) elects not to purchase any or to purchase less than all of
the remaining Member's Pro Rata Part of the Former Member's Interest, the Company may
at its election purchase the portion of the Former Member's Interest. In the event the
Company elects not to purchase the Former Member's Interest, the unpurchased portion
may be purchased by those remaining Members that elected to purchase more than their
Pro Rata Part.
(e) If the remaining Members fail to purchase the entire interest of the Former Member, the
interest passes by operation of law to any assignee or remains with the Former Member,
subject to any right of the holder of the interest to demand payment therefor according to
Texas law.
(f) Notwithstanding any other provision in Article VI, to the contrary, the remaining Members
may mutually agree to an allocation of the Former Member's Interest to be purchased by
each of them.
(g) The Former Member's Interest must be valued according to its book value for federal
income tax purposes, provided, however, a party to a purchase of the Interest pursuant to
this Article VI who deems the value to vary from fair market value (as defined below) by
more than 25 percent may request and receive an appraisal. In that event, the Former
Member's Interest must equal the fair market value of that Interest as determined by
agreement between the Former Member or the representatives of the Former Member and
the purchaser or purchasers no Tess than 21 days prior to the date on which the purchase
and sale obligation accrue, or in case of failure to agree within the time period, as
determined by three appraisers, one selected by the Former Member or the Former
K: \M I r \Limited \Restivo \Regs.wpd
Member's representative, one selected by the remaining Member(s), and one selected by
the two appraisers so named. The appraiser shall be instructed to appraise the net fair
market value of the underlying assets of the Company and multiply the value by the Former
Member's Percentage Interest, which is then further discounted by the appraiser to reflect
lack of marketability, loss of counsel of the Former Member, absence of control for a
minority interest, and other factors that the appraiser may reasonably believe to affect the
value of an Interest in the Company. The fair market value of the Former Member's Interest
in the Company is the average of the two appraisals closest in amount to each other. In
the event the fair market value is determined to be within the 25 percent of book value, the
party requesting the appraisal must pay all expense of the same otherwise incurred by the
parties offering to enter into the transaction at the book valuation.
(h) The purchase and sale obligation for all purposes under Section 6.1 accrues 120 days
after the Dissolution Event, assuming the Unanimous Consent has been obtained. In the
case of a rightful demand for withdrawal of contribution to capital by any Member, the
purchase and sale obligation accrues 180 days after the demand.
(i) The purchase price must be paid by the Company (if all Members consent in writing) or
the remaining Member(s), as the case may be, either (i) in equal annual installments of
principal together with interest, commencing to accrue from the date of closing, at the then
current Mid -Term Applicable Federal Rate (the "AFR ") under Section 1274(d) of the
Internal Revenue Code for the month in which the first payment is made (or a rate per
annum equal to what the AFR would be for the month under Section 1274(d) if the AFR
is no longer published) to fully amortize the purchase price over the payments with the first
payment being due and payable when the purchase and sale obligation shall accrue, or
(ii) without interest when the purchase and sale obligation accrue, as the Company and /or
the remaining Member(s), as the case may be, elect in their sole discretion.
(j) Closing of any sale transaction pursuant to this Section occurs on the date the purchase
and sale obligation is to accrue as provided herein, or the next previous business day if the
same falls on a weekend or holiday. At the closing, documents evidencing the payment
obligation(s) must be delivered by the purchasers, and any certificates, duly endorsed,
must be delivered by the Former Member or the representatives of the Former Member.
(k) This Article does not prohibit Members from agreeing on terms and conditions for the
purchase by the Company or any Member(s) of the Interest of any Member in the
Company desiring to retire, withdraw or resign, in whole or in part, as a Member (on such
terms and conditions as are agreed on by the selling Member and the Company or the
remaining Member(s)), nor does anything herein limit or otherwise affect the ability of a
Member to demand a return of his contribution to the Company as provided in the Act.
6.2. Transfer and Assignment of Member's Interest. No Member may assign, convey,.
sell, encumber or in any way alienate all or any part of his or her Interest in the Company
as a Member without the prior written unanimous consent of all the other Members, which
consent may be given or withheld, conditioned or delayed (as allowed by these Re gulations
or the Act), as the remaining Members may determine in their sole discretion.
6.3. Further Restrictions on Transfer. No Member may assign, convey, sell, encumber
or in any way alienate all or any part of his or her Interest in the Company (i) without
registration under applicable securities laws, or unless he or she delivers an opinion of
counsel satisfactory to the Company that registration is not required; or (ii) if the Interest
to be sold or exchanged, when added to the total of all other interests sold or exchanged
K: \M I r \Limited \Restivo \Re wpd
in the preceding six consecutive months prior thereto, would result in the termination of the
Company under Section 708 of the Internal Revenue Code.
6.4. Substitute Members. A transferee may become a substitute Member if (i) the
requirements of Sections 6.2 and 6.3 are met, (ii) the person executes an instrument
satisfactory to the remaining Members accepting and adopting the terms and provisions
of these Regulations, and (iii) the person pays all reasonable expenses in connection with
his or her admission as a remaining Member.
6.5. Effect of Transfer. Any permitted transfer of all or any portion of a Member's Interest
in the Company takes effect on the first day of the month following receipt by the Members
of written notice of transfer. Any transferee of an Interest in the Company takes subject to
the restrictions on transfer imposed by these Regulations and to the Texas Limited Liability
Company Act.
ARTICLE VII
DISSOLUTION
7.1. Dissolution of the Company.
(a) The Company is dissolved, its assets are disposed of, and its affairs wound up on the
first of the following to occur:
(i) A determination by Members owning more than 50 percent of the interests in the
Company that the Company should be dissolved;
(ii) A Dissolution Event, and the Company's or remaining Members' failure to
purchase the Interest of the Former Member as provided in Section 6.1;
(iii) The expiration of the Company term as stated in its Articles; or
(iv) At any earlier time as provided by applicable law.
(b) In settling accounts of the Company after dissolution, the liabilities of the Company
must be paid in the following order, all as required by the Act:
(i) Liabilities to creditors, in the order of priority as provided by law, except those to
Members of the Company on account of their contributions;
(ii) Liabilities to Members of the Company in respect of their share of the profits and other
compensation by way of income on their contributions; and
(iii) Liabilities to Members of the Company in respect of their contribution to capital.
K: \MI r\Limited \Restivo \Regs.wpd
ARTICLE VIII
INDEMNIFICATION
8.1. Indemnification of Members.
(a) To the greatest extent not inconsistent with the laws and public policies of Texas, the
Company indemnifies, as a matter of right, any Member (any Member who is a person, and
any responsible officer, partner, shareholder, director, or manager of the Member which
is an Entity, referred to as the indemnified "individual ") made a party to any proceeding
because he or she is or was a Member, against all liability incurred by the individual in
connection with any proceeding; provided that it is determined in the specific case
according to subsection (d) of this Section, that indemnification of the individual is
permissible in the circumstances because the individual has met the standard of conduct
for indemnification set forth in subsection (c) of this Section. The Company will pay for or
reimburse the reasonable expenses incurred by a Member in connection with any such
proceeding in advance of final disposition thereof if (i) the individual furnishes the Company
a written affirmation of the individual's good faith belief that he or she has met the standard
of conduct for indemnification described in subsection (c) of this Section, (ii) the individual
furnishes the Company a written undertaking, executed personally or on that individual's
behalf, to repay the advance if it is ultimately determined that the individual did not meet
the standard of conduct, and (iii) a determination is made in accordance with subsection
(d) that based on facts then known to those making the determination, indemnification
would not be precluded under this Section. The undertaking described in subsection (a)(ii),
above, must be a general obligation of the individual, subject to the reasonable limitations
as the Company may permit, but need not be secured and may be accepted without
reference to financial ability to make repayment. The Company must indemnify a Member
who is wholly successful, on the merits or otherwise, in the defense of any such
proceeding, as a matter of right, against reasonable expenses incurred by the individual
in connection with the proceeding without the requirement of a determination as set forth
in subsection (c) of this Section. On demand by a Member for indemnification or
advancement of expenses, the Company must expeditiously determine whether the
Member is entitled to indemnification in accordance with this Section. The indemnification
and advancement of expenses provided for under this Section is applicable to any
proceeding arising from acts or omissions occurring before or after the adoption of this
Section.
(b) The Company may, but need not, indemnify an individual who is or was an employee
or agent of the Company to the same extent as if the individual were a Member.
(c) Indemnification of an individual is permissible under these Regulations only if this
individual (i) conducted himself or herself in good faith, (ii) reasonably believed that his or
her conduct was in or at least not opposed to the Company's best interest; (iii) in the case
of any criminal proceeding, had no reasonable cause to believe his or her conduct was
unlawful; and (iv) the individual is not adjudged in any such proceeding to be liable for
K: \M I r\L i m i to d \Res t i v o\Re w p d
•
negligence or misconduct in the performance of duty. The termination of a proceeding by
judgment, order, settlement, conviction or on a plea of nolo contendere or its equivalent
is not, of itself, determinative that the individual did not meet the standard of conduct
described in this subsection (c).
(d) The determination whether indemnification or advancement of expenses is permissible
must be made in any one of the following manners:
(i) By a majority vote of the Members who are not parties to the proceeding; or
(ii) By special legal counsel selected by a majority vote of the Members who are not parties
to the proceeding.
(e) A Member of the Company who is a party to a proceeding may apply for indemnification
from the Company to the court, if any, that is conducting the proceeding or to another court
of competent jurisdiction.
(f) These Regulations do not limit or preclude the exercise or exclude any right under the
law, by contract or otherwise, relating to indemnification of or advancement of expenses
to any individual who is or was a Member of the Company or is or was serving at the
Company's request as a director, officer, partner, manager, trustee, employee, or agent
of another foreign or domestic company, partnership, association, limited liability company,
corporation, joint venture, trust, employee benefit plan, or other enterprise, whether for -
profit or not. Nothing contained in these Regulations limits the ability of the Company to
otherwise indemnify or advance expenses to any individual. The intent of the parties
making these Regulations is to provide indemnification to Members to the fullest extent
now or hereafter permitted by the law consistent with the terms and conditions of this
Section. Indemnification is provided in accordance with this, without regard to the nature
of the legal or equitable theory on which a claim is made including without limitation
negligence, breach of duty, mismanagement, waste, breach of contract, breach of
warranty, strict liability, violation of federal or state securities law, violation of the Employee
Retirement Income Security Act of 1974, as amended, or violation of any other state or
federal law.
(g) For purposes of this Section, the following apply:
(i) The term "expenses" includes all direct and indirect costs { including withoutiimita(i,on
counsel fees, retainers, court costs, transcripts, fees of experts, witness fees, travel
expenses, duplicating costs, printing and binding costs, telephone charges, postage,
delivery service fees and all other disbursements or out -of- pocket expenses) actually
incurred in connection with the investigation, defense, settlement or appeal of a proceeding
or establishing or enforcing a right to indemnification under this Section, applicable law or
otherwise.
(ii) The term "liability" means the obligation to pay a judgment, settlement, penalty, fine,
K:\MI r \Limited \Restivo \Regs.wpd
excise tax (including an excise tax assessed with respect to an employee benefit plan), or
reasonable expenses incurred with respect to a proceeding.
(iii) The term "party" includes an individual who was, is, or is threatened to be made a
named defendant or respondent in a proceeding.
(iv) The term "proceeding" means any threatened, pending, or completed action, suit, or
proceeding, whether civil, criminal, administrative, or investigative and whether formal or
informal.
(v) The Company may purchase and maintain insurance for its benefit, the benefit of any
individual who is entitled to indemnification under this section, or both, against any liability
asserted against or incurred by the individual in any capacity or arising out of the
individual's service with the Company, whether or not the Company would have the power
to indemnify the individual against liability.
ARTICLE IX
MISCELLANEOUS
9.1. Complete Agreement. These Regulations and the Articles constitute the complete
and exclusive statement of agreement among the Members with respect to the subject
matter described. These Regulations and the Articles replace and supersede all prior
agreements by and among the Members or any of them. These Regulations and the
Articles supersede all prior written and oral statements and no representation, statement,
or condition or warranty not contained in these Regulations or the Articles is binding on the
Members or has any force or effect whatsoever.
9.2. Governing Law. These Regulations and the rights of the parties hereunder are
governed by, interpreted, and enforced in accordance with the laws of the State of Texas.
9.3. Binding Effect. Subject to the provisions of these Regulations relating to
transferability, these Regulations are binding on and inure to the benefit of the Members,
and their respective distributees, successors, and assigns.
9.4. Severability. If any provision of these Regulations is held to be illegal, invalid, or
unenforceable under the present or future laws, these Regulations shall be construed and
enforced as if the illegal, invalid, or unenforceable provision had never comprised a part
of these Regulations; and the remaining provisions of these Regulations will remain in full
force and effect and will not be affected by the illegal, invalid, or unenforceable provision,
and there will be added automatically as a part of these Regulations a provision as similar
in terms to the illegal, invalid, or unenforceable provision as may be possible and be legal,
valid and enforceable.
9.5. Additional Documents and Acts. Each Member agrees to execute and deliver
K: \M I r\L i m i ted \Res t i vo \Regs.wpd
additional documents and instruments and to perform all additional acts necessary or
appropriate to effectuate, carry out and perform all of the terms, provisions, and conditions
of these Regulations and the transactions contemplated hereby.
9.6. No Third Party Beneficiary. These Regulations are made solely and specifically
among and for the benefit of the parties hereto, and their respective successors and
assigns subject to the express provisions hereof relating to successors and assigns, and
no other person has or will have any rights, interest, or claims hereunder or be entitled to
any benefits under or on account of these Regulations as a third party beneficiary or
otherwise.
9.7. Notices. Any notice to be given or to be served on the Company or any Member,
manager, or officer, in connection with these Regulations must be in writing and is deemed
to have been given and received when delivered to the address specified by the party to
receive the notice. Notices must be given to a Member at the address specified in Exhibit
A. Any Member or the Company may, at any time, designate any other address in
substitution of the foregoing address to which the notice will be given by giving written
notice to the other Members and the Company / () days' prior to the date
of delivery of the notice.
9.8. Amendments. All amendments to these Regulations must be in writing and signed
by all the Members.
9.9. Title to Company Property. Legal title to all property of the Company must be held
and conveyed in the name of the Company.
9.10. Reliance on Authority of Person Signing Regulations. In the event that a Member
is not a natural person, neither the Company nor any Member will (a) be required to
determine the authority of the individual signing these Regulations to make any
commitment or undertaking on behalf of the Entity or to determine any fact or circumstance
bearing on the existence of the authority of the individual or (b) be required to see to the
application or distribution of proceeds paid or credited to individuals signing these
Regulations on behalf of the Entity.
These Regulations, to be effective as of the date the company's existence begins, are
executed on November 7 , 2001.
Four Aggie Investments, LLC
BY: /.
ITS:
K: \MI r\Li m ited \Restivo \Regs.wpd
EXHIBIT A
Initial Members and Addresses Capital Contribution Percent of Ownership
Hunter Goodwin, 506 S.W. Parkway West, College Station, Texas 77840- $250, 25%
Jack Restivo, 4420 Village Oak, Waco, Texas 76710 -$250, 25%
Andy Restivo, 3001 Deerwood Drive, Waco, Texas 76710 -$250, 25%
Dr. David Jansma, 4416 Village Oak, Waco, Texas 76710 -$250, 25%
K:\MI r\Lim ited\Restivo \Regs.wpd
•
FACSIMILE COVER SHEET
COLLEGE STATION
CITY OF COLLEGE STATION
DEVELOPMENT SERVICES
1101 Texas Avenue South, PO Box 996o
College Station, Texas 77842
Phone (979) 764 - 357 0 / Fax (979) 7 - 349 6
Date: January 3, 2003 # of pages including cover:B
If you did not receive a complete fax, please call our office immediately for a new
transmittal.
TO: Andy Restivo FAX: 254 - 752 -030o
COMPANY:
RE: Champions on Luther
FROM: Christopher Butler PHONE: (979) 7
COMPANY: City of College Station
REMARKS: 1 Urgent n For your review n Replay ASAP U FYI
TRANSMISSION VERIFICATION REPORT
TIME : 01/03/2003 11:37
NAME : COCS DEVELOPMENT SER
FAX : 9797643496
TEL : 9797643570
SER.# : BROE2J341073
DATE,TIME 01/03 11:37
FAX NO. /NAME 912547520300--161 -
DURATION 00:00:37
PAGE(S) 03
RESULT OK
MODE STANDARD
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FACSIMILE COVER SHEET
COLLEGE STATION
CITY OF COLLEGE STATION
DEVELOPMENT SERVICES
1101 Texas Avenue South, PO Box 996o
College Station, Texas 77842
Phone (979) 7 - 357 0 / Fax (979) 764
Date: January 3, 2003 # of pages including cover:3
If you did not receive a complete fax, please call our office immediately for a new
transmittal.
TO: Christian A. Galindo FAX: 846 -8868
COMPANY:
RE: Champions on Luther
FROM: Christopher Butler PHONE: (979) 764 -3570
COMPANY: City of College Station
REMARKS: I 1 Urgent For your review ❑ Replay ASAP FYI
4 you did not rcccive a comptctc fax, please cau our office irnmcaxataty j'Or a r1ew
transmittal.
TO: Christian A. Galindo FAX: 846-8868
COMPANY:
RE: Champions on Luther
FROM: Christopher Butler PHONE: (979) 764 -x.570
COMPANY: City of College Station
REMARKS: ❑ -Urgent n For your review n Replay ASAP Li FYI
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FACSIMILE COVER SHEET
COLLEGE STATION
CITY OF COLLEGE STATION
DEVELOPMENT SERVICES
1101 Texas Avenue South, PO Box 996o
College Station, Texas 77842
Phone (979) 764 - 3570 / Fax (979) 7
Date: January 3, 2003 # of pages including cover:B
If you did not receive a complete fax, please call our office immediately for a new
transmittal.
TO: Bo Miles FAX: 6 9 6 - 5 0 45
COMPANY:
RE: Champions on Luther
FROM: Christopher Butler PHONE: (979) 764
COMPANY: City of College Station
REMARKS: Urgent For your review Replay ASAP FYI
TRANSMISSION VERIFICATION REPORT
TIME : 01/0312003 10:02
NAME : COCS DEVELOPMENT SER
FAX : 9797643496
TEL : 9797643570
SER.# : BR0E2J341073
DATE, TIME 01/03 10:00
FAX NO. /NAME 96965045
DURATION 00:02:19
PAGE (S) 03
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FACSIMILE COVER SHEET
CITY OF COLLEGE STATION
DEVELOPMENT SERVICES
1101 Texas Avenue South, PO Box 9960
COLLEGE STATION College Station, Texas 77842
Phone (979)764 -3570 / Fax (979)764 -3496
Date: September 15, 2003 # of pages including cover: 2
If you did not receive a complete fax,
please call our office immediately for a new transmittal.
TO: Andy Restivo FAX: 254.752.0300
COMPANY: Four Ags Investments LP,
RE: Champions at Luther
FROM: Bridgette George PHONE: (979) 764 -3570
COMPANY: City of College Station
REMARKS: ❑ Urgent n For your review n Replay ASAP ® FYI
After reviewin: the attached "As -built Landsca•in: Plan" staff has verified that the landsca•in_
point requirement for this development has been met. A refund for the landscaping guarantee
has been processed and will be refunded within a week to 10 days. Please call me if you have
any questions. Thanks!
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