Xyz Limited Liability Company Operating Agreement Page 16
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28trust (such as a husband and wife LLC), the second provision allows more protection against
foreclosure from charging orders.]
6.3
Additional Capital Contributions. From time to time a Member may be
required to make additional Capital Contributions as shall be determined reasonably
necessary to meet the expenses and obligations of the Company. Except as provided
below, such additional Capital Contributions shall not affect the Members' relative
Percentage Interest. In the event that any Member fails to make its required Capital
Contributions and thereby defaults, then the non-defaulting Members, on a pro rata
basis, shall have the right, exercisable in their sole discretion, to make the Capital
Contribution that the defaulting Member failed to make. In such event, the relative
Percentage Interest of the Members shall be adjusted such that each contributing, non-
defaulting Member's Percentage Interest shall be increased, in respect to each defaulting
Member's Percentage Interest.
6.4
Return of Capital Contributions. Each Member irrevocably waives any
statutory, equitable or other rights he or she may have to withdraw or demand the
return of his or her Capital Contribution except as provided herein.
6.5
No Interest on Capital Contributions. Capital Contributions to the
Company shall not bear interest.
6.6
Nature of Interests. All property owned by the Company, whether real or
personal, tangible or intangible, shall be deemed to be owned by the Company as an
entity. No Member shall have any direct ownership of any Company property.
6.7
Limitation on Liability for Members. No Member shall personally be
liable for any of the debts or losses of the Company beyond such Member's capital
account in the Company.
6.8
Rights of Priority. Except as herein provided, the individual Members
shall have no right to any priority over each other as to the return of Capital
Contributions.
6.9
Distribution of Profits. Distributions to the Members of net operating
profits of the Company shall be made at least annually except that earnings may be
retained by the Company and transferred to Company capital for the reasonable needs
of the Company as determined in the sole discretion of the Managers. Distributions
shall be made to the Members simultaneously.
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