HomeMy WebLinkAboutACI Real Estate SPE 138, LLC - LLC Agreement 5.26.20
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ACI Real Estate SPE 138, LLC
LIMITED LIABILITY COMPANY AGREEMENT (the "Agreement") dated as
of May 26, 2020, adopted by ACI Real Estate Company LLC, a Delaware limited liability
company (the "Managing Member").
Preliminary Statement
WHEREAS, ACI Real Estate SPE 138, LLC (the "Company") was formed as a
Delaware limited liability company on May 26, 2020; and
WHEREAS, the Managing Member desires to adopt this Agreement to reflect the
foregoing and set forth herein the agreement of the Managing Member as to the rights, duties and
obligations of the Company and the Managing Member, from and after the date of this
Agreement.
NOW, THEREFORE, in consideration of the promises made herein, the
Managing Member hereby adopts the following:
1. Formation. A certificate of formation of the Company (the "Certificate")
was executed and filed with the Secretary of State of the State of Delaware, effective on May 26,
2020. The execution, delivery and filing of the Certificate with the Secretary of State of the
State of Delaware by the Company, and by Laura A. Donald on behalf of the Company, as an
"authorized Person" of the Company within the meaning of the Delaware Limited Liability
Company Act (the "Delaware Act"), is hereby ratified and confirmed in all respects. Upon the
execution of this Agreement the Managing Member shall be the designated "authorized Person"
and shall continue as the designated "authorized Person" within the meaning of the Delaware
Act. The Managing Member shall execute, deliver and file any other certificates (and any
amendments and/or restatements thereof) necessary for the Company to qualify to do business in
any jurisdiction in which the Company may wish to conduct business. The existence of the
Company as a separate legal entity shall continue until cancellation of the Certificate as provided
in the Delaware Act.
2. Name. The name of the Company is "ACI Real Estate SPE 138, LLC".
3. Purpose.
A. The Company is organized for the purpose of engaging in any
lawful act or activity for which limited liability companies may be formed under the Delaware
Act and engaging in any and all activities necessary or incidental to the foregoing.
B. The Company shall have the power to engage in all actions,
proceedings, activities and transactions that the Managing Member may deem necessary or
advisable in connection with the foregoing purposes.
4. Registered Office; Registered Agent. The registered office of the
Company in the State of Delaware is Corporation Trust Center, 1209 Orange Street, County of
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New Castle, City of Wilmington, State of Delaware 19801. The name of its registered agent at
such address is The Corporation Trust Company.
5.Member. Upon execution of the Agreement, the Managing Member is
admitted as a member of the Company. The name and the address of the Managing Member is
as follows:
Name Address
ACI Real Estate Company LLC 250 Parkcenter Blvd.
Boise, ID 83706
6.Management of the Company.
A.Power and Authority of Managing Member. The business and
affairs of the Company shall be managed by the Managing Member, who shall have the power
and authority, on behalf of the Company, to take any action of any kind not inconsistent with the
provisions of this Agreement and to do anything and everything it deems necessary or
appropriate to carry on the business and purposes of the Company, including, but not limited to:
1.to manage and direct the business affairs of the Company, to do any and
all acts on behalf of the Company and to exercise all rights of the
Company with respect to its interest in any other Person (as defined in the
Delaware Act), corporation, partnership, limited liability company or other
entity, including, without limitation, the voting of securities, exercise of
redemption rights, participation in arrangements with creditors, the
institution, defense and settlement or compromise of suits and
administrative proceedings and other like or similar matters;
2.to acquire, own, lease, sublease, manage, hold, deal in, control or dispose
of any interests or rights in real or personal property;
3.to hire employees, consultants, attorneys, accountants, appraisers and
other advisers for the Company;
4.to open, maintain and close bank accounts and draw checks or other orders
for the payment of funds;
5.to borrow money or obtain credit from banks, lending institutions or any
other Person;
6.to guarantee debt on behalf of the Company's subsidiaries now or
hereinafter in existence, and to secure the same by a mortgage, deed of
trust, pledge or other lien on any or all the assets of the Company;
7.to assume obligations, incur liabilities, lend money or otherwise use the
credit of the Company;
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8. to direct the formulation of policies and strategies for, and perform all other
acts on behalf of, the Company and any entities for which the Company acts
as general partner, adviser, manager, managing member, or in other similar
capacities including those activities specified above in clauses (1) and (2);
and
9. to enter into any contracts it deems necessary or advisable to facilitate the
business of the Company.
B. No "Manager" of Company. There shall not be a "manager"
(within the meaning of the Delaware Act) of the Company. The Managing Member is, to the
extent of its rights and powers set forth in this Agreement, an agent of the Company for the
purpose of the Company's business, and the actions of the Managing Member taken in
accordance with such rights and powers shall bind the Company.
C. Managing Member May Appoint Officers. The Managing
Member may appoint officers of the Company, including a Chief Executive Officer. The
officers of the Company shall be responsible for the day-to-day business, operations and affairs
of the Company, shall have such powers as conferred on them by the Managing Member and
shall have the authority to bind the Company through the exercise of such powers subject to, and
to the extent consistent with, the terms hereof. The officers of the Company shall (i) be
appointed and be subject to removal by the Managing Member and (ii) operate as an autonomous
management group, accountable only to the Managing Member. The initial officers of the
Company are listed on Schedule I hereto.
7. Dissolution. The Company shall be dissolved and its affairs shall be
wound up upon the earliest to occur of: (a) determination by the Managing Member; (b) the
dissolution of the Managing Member; (c) if at any time there are no members of the Company,
unless the Company is continued in accordance with the Delaware Act; and (d) the entry of a
decree of judicial dissolution of the Company.
8. Initial Capital Contributions. The Managing Member has made a capital
contribution to the Company in the amount set forth in the books and records of the Company.
9. Additional Contributions. The Managing Member shall have no
obligation to make additional capital contributions to the Company.
10. Tax Matters. The Company shall, upon its initial formation, be treated for
U.S. federal income tax purposes as a disregarded entity within the meaning of Treas. Reg.
Section 301.7701-3(b)(ii). The Managing Member shall have the authority to change or
maintain such status in its sole discretion.
11. Distributions. The Company shall promptly distribute to the Managing
Member all amounts of cash and any other property held by the Company that is available for
distribution at the times and in the amounts as determined by the Managing Member.
Notwithstanding any provision to the contrary contained in this Agreement, the Company shall
not be required to make a distribution to the Managing Member on account of its interest in the
Company if such distribution would violate the Delaware Act or any other applicable law.
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12. Indemnification of Managers, Officers, Employees and Agents.
A. Each Person who was or is made a party or is threatened to be
made a party to or is otherwise involved in any action, suit or proceeding, whether civil,
criminal, administrative or investigative (a "Proceeding") by reason of the fact that he or she is or
was a Managing Member or an officer of the Company, or is or was serving at the request of the
Company as a manager, director, officer, employee or agent of another limited liability company
or of a corporation, partnership, joint venture, trust or other enterprise, including a service with
respect to an employee benefit plan (an "Indemnitee"), whether the basis of such a Proceeding is
alleged action in an official capacity as a Managing Member, officer, employee or agent of the
Company or in any other capacity while serving as a Managing Member, officer, employee or
agent of the Company, shall be indemnified and held harmless by the Company to the fullest
extent permitted by law (including indemnification for negligence or gross negligence but
excluding indemnification (i) for acts or omissions involving actual fraud or willful misconduct
or (ii) with respect to any transaction from which the Indemnitee derived an improper personal
benefit), against all expense, liability and loss (including reasonable attorneys' fees, judgments,
fines, excise taxes or penalties and amounts paid in settlement) reasonably incurred or suffered
by such Indemnitee in connection therewith.
B. The right to indemnification conferred in Section 12(A) shall
include the right to be paid by the Company the expenses (including reasonable attorneys' fees)
incurred in defending any Proceeding in advance of its final disposition (an "Advancement of
Expenses"). The rights to indemnification and to the Advancement of Expenses conferred in
Section 12(A) and this Section 12(B) shall be contract rights and such rights shall continue
(regardless of any amendment, modification or termination of the Agreement) as to an
Indemnitee who has ceased to be a Managing Member, officer, employee or agent of the
Company and shall inure to the benefit of the Indemnitee's heirs, executors and administrators.
C. The rights to indemnification and to the Advancement of Expenses
conferred in this Section 12 shall not be exclusive of any other right that any Person may have or
hereafter acquire under any statute, agreement, vote of the Managing Member, or otherwise.
D. The Company may maintain insurance, at its expense, to protect
itself and any Person who may become an Indemnitee under Section 12(A) against any expense,
liability or loss, whether or not the Company would have the power to indemnify such Person
against such expense, liability or loss under the applicable law.
E. The Company may, to the extent authorized from time to time by
the Managing Member, grant rights to indemnification and to Advancement of Expenses to any
officer, employee or agent of the Company to the fullest extent of the provisions of this
Section 12 with respect to the indemnification and Advancement of Expenses of the Indemnitees.
13. Exculpation.
A. None of the Managing Member, any officer of the Company or any
of their affiliates shall be liable to the Company for (i) any action or inaction, unless such action
or inaction arises out of, or is attributable to, the fraud, willful misconduct or bad faith of such
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Person or (ii) any action or inaction of any employee, broker or other agent of the Company or
the Managing Member; provided that the selection, engagement or retention of such employee,
broker or agent did not result from the fraud, willful misconduct or bad faith of such Person. The
Managing Member, officers of the Company and their affiliates may consult with counsel,
accountants, investment bankers, financial advisers, appraisers and other specialized, reputable,
professional consultants or advisers in respect of Company affairs and be fully protected and
justified in any action or inaction which is taken in accordance with the advice or opinion of such
Persons; provided that the selection, engagement or retention of such consultants or advisers did
not result from the fraud, willful misconduct or bad faith of such Person.
B. Notwithstanding any of the foregoing to the contrary, the
provisions of this Section 13 shall not be construed so as to relieve (or attempt to relieve) a
Person of any liability, to the extent (but only to the extent) that such liability may not be waived,
modified or limited under applicable law, but shall be construed so as to effectuate the provisions
of this Section 13 to the fullest extent permitted by law.
C. Provided they shall act in good faith and have not engaged in
willful misconduct or gross negligence, the Managing Member and its affiliates and any
member, officer, director, partner, agent or employee of the foregoing shall not be liable to the
Company (a) for any mistake in judgment, (b) for any action or inaction taken or omitted for a
purpose which the Managing Member or such other Person believed in good faith to be
consistent with the best interests of the Company or (c) for any loss due to the mistake, action,
inaction, negligence, dishonesty, fraud or bad faith of any broker or other agent, provided, that
such broker or other agent is not and was not an affiliate of the Managing Member. The
Managing Member or affiliate may consult with legal counsel with respect to matters of law and
accountants with respect to matters of accounting in respect of Company affairs and, except in
respect of matters in which there is a conflict of interest, shall be fully protected and justified in
any action or inaction which is taken or omitted in good faith, in reliance upon and in accordance
with the opinion or advice of such counsel with respect to matters of law or accountants with
respect to matters of accounting. In determining whether the Managing Member or any of its
affiliates acted in good faith, each such Person shall be entitled to rely on reports and written
statements of the directors, officers and employees of a Person in which the Company holds
ownership interests. For the purposes of this Section 13, the directors, officers and employees of
a Person in which the Company holds ownership interests shall not, solely by virtue of such
holding, be deemed to be affiliates of the Managing Member.
14. Transfer of Membership Interests. The membership interests of the
Company shall be certificated unless the Managing Member otherwise determines. As of the
date hereof, the Managing Member holds all of the membership interests of the Company. The
Managing Member may sell, hypothecate, pledge, assign or otherwise transfer or encumber
(each, a "Transfer") its limited liability company interests in the Company so long as such
Transfer is in writing, in which the transferee accepts the terms and provisions of this
Agreement. If the Managing Member Transfers all of its limited liability company interests in
the Company pursuant to this Section 14, the transferee shall be admitted to the Company as a
member of the Company upon its execution of such writing, which may be a counterpart
signature page to this Agreement. Such admission shall be deemed effective immediately prior
to the Transfer and, immediately following such admission, the transferor Managing Member
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shall cease to be a member of the Company. The Company shall maintain books for the purpose
of registering Transfers.
15. Liability of the Member. Except as otherwise expressly provided by the
Delaware Act, the debts, obligations and liabilities of the Company, whether arising in contract,
tort or otherwise, shall be the debts, obligations and liabilities solely of the Company, and neither
the Managing Member nor any officer of the Company shall be obligated personally for any such
debt, obligation or liability of the Company solely by reason of being a Managing Member or
officer of the Company.
16. Sole Benefit. Other than pursuant to Section 12 and Section 13, the
provisions of this Agreement are intended solely to benefit the Managing Member and, to the
fullest extent permitted by applicable law, shall not be construed as conferring any benefit to any
third-party beneficiaries.
17. Headings. The titles of Sections of this Agreement are for convenience of
reference only and shall not define or limit any of the provisions of this Agreement.
18. Governing Law. This Agreement shall be governed by, and construed in
accordance with, the laws of the State of Delaware, without giving effect to conflicts of law
principles of such State.
19. Amendments. Unless, and only to the extent, otherwise required under the
Delaware Act, this Agreement may not be amended except by written instrument executed by the
Managing Member.
20. Effectiveness. Pursuant to Section 18-201(d) of the Delaware Act, this
Agreement shall be effective as of the time of the effectiveness of the Certificate with the
Secretary of State of the State of Delaware on May 26, 2020.
[Signature page follows]
[Signature Page to ACI Real Estate SPE 138, LLC Agreement]
IN WITNESS WHEREOF, this undersigned has duly executed this Limited
Liability Company Agreement as of the date and year first written above.
ACI REAL ESTATE COMPANY LLC, a
Delaware limited liability company, as
Managing Member
By: _______________________________
Name: Laura A. Donald
Title: Secretary
SCHEDULE I
INITIAL OFFICERS
Vivek Sankaran President & Chief Executive Officer
Robert B. Dimond Executive Vice President & Chief Financial
Officer
Laura A. Donald Group Vice President, Corporate Law &
Secretary
Gary Morton Vice President & Treasurer
Bradley Beckstrom Group Vice President, Real Estate & Business
Law & Assistant Secretary