LLC Shareholder Agreement

LLC Shareholder Agreement

An agreement is at this moment formed between………, corporation number …… and ….. (a shareholder) of ID number …….who commits to contribute …..for …% of Class A Company shares.

Whereas

The shareholder has agreed to manage a company jointly and incorporate the companies act law. The shareholders have agreed to be the equity partners and have invested shares in the company, and this is subject to the condition that he or she will have to agree with the shareholder. The parties at this moment agree between them hereto as follows:

Percentage ownership and voting interests

Ownership interest is his total interest nonvoting and voting rights together with the rights as a manager or members of the company arising from these interests. The member’s percentage ownership interest will be calculated by adding together the nonvoting capital account and voting capital account and driving such a total of voting capital and nonvoting capital accounts of a member. The members will have initial ownership and percentage interest the company, immediately following the capitals contributions making.

Management by voting members

The voting members will manage the company and will have voting rights in their capacity as the company managers, upon every matter upon which managers reserves the right under the agreement, in proportion to their respective percentages of interest of voting in the company. The voting members should identify whether they act in their capacity as managers or members.

The non-voting members will have no voting rights otherwise participate in the company’s management. No non-voting members will take action in the place of or on behalf of the company or even enter into any contract, commitment, agreement or obligation binding upon the company or perform in any manner that relates to company’s assets or company, without the prior written consent of voting members.

Voting

In their capacity as managers and members of the company, except otherwise provided in the agreement voting members shall in every case, act collectively and unless specified otherwise or allowed by this agreement unanimously. No voting members will individual act, except otherwise provided or allowed by the agreement in his capacity as manager or members of the company shall have any authority to power to sign for, act on behalf or bind the company in any manner, to pledge the credit of the company or render the company liable for different purposes.

Unless the context in this agreement requires otherwise, the ‘managers’ or ‘members’ or ‘member’ without qualifiers, refers to the nonvoting and voting members collectively, and the terms ‘managers’ or ‘’manager’ refers to the voting members.

Capital members

Every original member of this agreement will make an initial contribution to the company, at the time of this member agreement execution. .. will bring a working capital to run the business. He will be entailed to interest calculated at the rate of … every year on the brought sums by his associates/ concerns, The board will adopt (and also amend the law from time to time) the dividend policy, apart from other matters it considers important such entails the shareholder’s intention to contribute to the growth, development of business and financial success. There will be no further capital without the issue of consent of all/both shareholders. Unless other worse stated, more investments are going to be decided mutually by both or all shareholders.

Share transfer or sell

During the continuance of the agreement by of parties, either transfer desire or sell of al or ay respective shares, which they have in the company, will be done with regards to the written provision. In case a shareholder wants to sell whole or part of the shares in the company, he or she will offer such shares to either party. If either party fails to accept the shares offer in writing within first ten days of receipt, the first party is free within one month to sell the shares to another party of choice at same conditions and terms and price and failing to do so will lead to a repetition of the procedure in this subclause.

Exit from the company

It is the responsibility of the company to buy all the shares that the shareholder holds, the shareholder will receive a written notice claiming that the company has an intention to buy the shares he or she possesses. The shareholder in the preceding two months un material breach agreement and shareholder has failed to remedy within 10 days as he or she will be required to do. The departure may take place if ether is an order to resolve already passed application that a shareholder made or same actions taken from bankruptcy, liquidation, dissolution, or winding up.

Dispute resolution

The members agree that incase of disagreement or dispute among or between any of them arising as a result of contention with or relating to this company, its formation, organization, management or business or agreement. The members will use their best efforts in resolving any arising dispute in contention with or out of this agreement by agreement or good faith negotiation. The members will meet at a mutually convenient place and time to try to resolve the arising dispute. However, in case the members fail to resolve the disputes, they might try to sue non-binding mediation proceeding to resolve the dispute. In case any party to the proceeding of edition fails to be satisfied with results thereof, unresolved disputes shall be settled in accordance with the proceeding of arbitration. In no event will results in proceeding of mediation be admissible in judicial or arbitration proceeding. If processes like arbitration, mediations cannot resolve the cases, a party is allowed to file a suit in the relevant court of law.

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