LLC Operating Agreement Template

1 LLLLCC OOppeerraattiinngg AAggrreeeemmeenntt This document is the fundamental Agreement behind your Limited Liability Corporation. This one is in plain-English as much as possible reading it through should be self-explanatory Many banks require this document when opening a business checking account NOTICE: We wish we could provide an Agreement that was tailored exactly to your business. While this is not always possible, we feel that we've come very close and that this document provides you with the head-start that you need to get your deal moving. Nevertheless, we must make this disclaimer: Do Not Use This Agreement 'As-Is.' This Agreement Is Not Legal Advice. Read it Thoroughly and Make All Appropriate Changes to Fit Your Requirements. You Should Have this Agreement Reviewed and Approved by a Qualified Attorney at Law Before Using It. JIAN Accepts No Liability for the Effectiveness of This Document For Your Purposes.

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3 They can be downloaded directly to your computer. Look in our website under Updates. Remember to bookmark our website: The first and most gratifying thing to do is to use the Replace or Change function (usually under the Edit menu) and customize all items identified within the "[ ]" brackets with your information. To make sure your have filled in all the variables, use your word processors FIND function to locate and "[" which contain an uncompleted variable. Upon completion, delete all comments and any unnecessary blank lines that remain. You may format this document any way you like. Agreement compliments of: The Law Firm of Burke & Reedy, 2 3 THE MEMBERSHIP INTERESTS EVIDENCED BY THIS Agreement HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR UNDER THE SECURITIES LAWS OF ANY STATE OR FOREIGN JURISDICTION AND MAY NOT BE SOLD OR TRANSFERRED WITHOUT COMPLIANCE WITH ANY APPLICABLE FEDERAL, STATE OR FOREIGN SECURITIES LAWS.]

4 OOppeerraattiinngg AAggrreeeemmeenntt OOff [[CCoommppaannyy]],, LLLLCC A [State] Limited Liability Company 4 TTaabbllee ooff CCoonntteennttss Section 1: Formation, Name, Purpose, Term And Definitions 5 Section 2: Members, Percentage Interests, Capital Contributions 5 Section 3: Classes And Interests, Extraordinary Actions, Dilution 6 Section 4: Distribution Of Cash & Proceeds; Allocations Of Tax Items 7 Section 5: Management Of The Company 8 Section 6: Rights, Duties And Representations Of Members 13 Section 7: Transfer Of Interests 14 Section 8: Cessation Of Membership 16 Section 9: Dissolution And Winding Up 17 Section 10: Indemnification Of The Managers 18 Section 11: Power Of Attorney For Limited Purposes 18 Section 12: Amendment 19 Section 13: Miscellaneous Provisions 19 Counterpart Signature Page To Operating Agreement 21 Exhibit A: Capital Contribution 22 Exhibit B: Definitions 23 Exhibit C: Tax Allocations 28 Execution Page 32 5 Section 1: Formation, Name, Purpose, Term & Definitions Section Formation.

5 The parties to this Agreement hereby enter into a written Operating Agreement pursuant to the [State] Limited Liability Company Act (the Act ), to set forth the terms and conditions of their joint undertaking as Members of the Company, and to carry out the purposes of the Company as further described herein, in accordance with the provisions of this Agreement and the laws of the State of [State]. Section Name. The name of the Company is [Company], LLC. The Company s business shall be conducted under said name, the name [Company], and/or such other names as the Manager may from time to time deem necessary or advisable, provided that necessary filings under applicable assumed or fictitious name statutes are first obtained. Section Offices & Resident Agent. The name and address of the Resident Agent of the Company in the State of [State] is: [Owner/Founder], [Address], [City], [State] [zip code].

6 The principal office of the Company shall be: [Address], [City], [State] [zip code], or such other location as the Manager may, from time to time, designate by notice to the Members. Section Purpose. The purpose and business of the Company shall be [develop and distribute multi-media business productivity tools through software, seminars, audio/video, and published works.] Section Term. The term of the Company commenced on [Date], upon the acceptance for filing of the Articles of Organization of the Company by the [State] Corporation Commission, and shall have a perpetual existence, unless earlier dissolved in accordance with Section of this Agreement . Section Defined Terms. The defined terms used in this Agreement , unless the context otherwise requires, shall have the meanings specified herein or as set forth in Exhibit B, which is attached hereto.

7 Section 2: Members, Percentage Interests, Capital Contributions Section Members: Exhibit A. The names, addresses, Capital Contributions and Percentage Interests of all Members shall be designated in Exhibit A, which is attached hereto. The Manager shall cause Exhibit A to be amended from time to time to reflect the withdrawal of one or more Members or the admission of one or more additional Members. As of the date of the execution of this Agreement , there are no Class B or Class C Members. Class A Members shall be admitted in accordance with Section hereof. Class B Members shall be admitted in accordance with Section hereof. Class C Members shall be admitted to the Company in accordance with Section hereof. Section Capital Contributions. On or prior to the date of this Agreement , each existing Member shall make a Capital Contribution to the Company in an amount set forth opposite such Member s name in Exhibit A.

8 Section Class A Members. [Owner/Founder], and [Founder2] own all of the outstanding Class A membership Units. See Exhibit A for a list of the Members of the Company. Section Conversion of Class A Interests. Subject to the limitations set forth below in Section of this Operating Agreement , the Manager shall have the right, at any time and from time to time, to admit one or more additional Class A Members upon such terms and conditions as the Manager shall determine in their sole discretion, provided that they obtains the prior unanimous written consent of the existing Class A Members. Section Minimum interest of the Manager. A Manager shall not be required to own an interest in 6 the Company. Section Additional Capital Liability of Members. No Member shall have any obligation to contribute capital to the Company except to the extent of the Capital Contribution of such Member described in this Section 2.

9 No Member of the Company shall have any obligation or duty to advance or loan funds to the Company for the purpose of satisfying liabilities of the Company or any Operating or carrying costs associated with the Company s business. No Member shall be personally liable for the obligations of the Company, whether arising in contract, tort or otherwise, solely by reason of being a Member of the Company. Section No interest . No interest shall be paid or due by or from the Company on any contributions to the capital of the Company, or any advances made by a Member to the Company. Section Indebtedness to Members. Any indebtedness of the Company owed to a Member shall provide that the payment of principal and interest (if any) shall be made only if, and to the extent that, payment of a distribution to the Member could then be made under applicable provisions of the Act without the imposition on the Member of any liability for repayment to the Company.

10 Section Withdrawal of Capital by interest Holders. Except as otherwise specifically provided in this Agreement , prior to the liquidation of the Company no interest Holder shall have the right to require the return of his/her/its Capital Contribution or the balance of his/her/its Capital Account. There is no agreed upon time when the Capital Contribution of an interest Holder is to be returned. No interest Holder shall have any right to demand and receive property, in lieu of cash, in return of his/her/its Capital Account. Provided, however, the Company shall have the option to distribute property in lieu of cash in the event the Company does not have cash resources available to it for such purpose. Section 3: Classes & Interests, Extraordinary Actions, Dilution Section Admission of Class A Members. Subject to the limitations set forth in Section hereof, the Manager shall have the right, at any time and from time to time, to admit one or more additional Class A Members upon such terms and conditions as the Manager shall determine in its sole discretion, provided that it obtains the prior written consent of a Majority in interest of all the Class A Members, and any such Person receiving Class A Interests shall make a Capital Contribution to the Company (in cash or other property) corresponding to the fair value of such interest , as determined in the sole discretion of the Manager.