Operating Contract (Multi-Member, Manager-Managed) (California)

This legal template is designed to serve as an Operating Contract for a business entity structured as a multi-member, manager-managed organization in the state of California. An operating contract is a crucial document that outlines the rights, roles, responsibilities, and obligations of the members involved in the business entity.

In this particular template, it is stated that the business entity is comprised of multiple members who have both governing and non-governing roles. The managerial responsibilities are delegated to one or more appointed managers who are responsible for overseeing the day-to-day operations and decision-making of the business.

The contract covers important aspects related to the business, including the purpose of the organization, the capital contributions made by the members, and the distribution of profits and losses. It also details the process for admission of new members and the withdrawal or removal of existing members.

Furthermore, the template clarifies the voting rights of members and outlines the decision-making process within the organization. It emphasizes the importance of holding regular meetings, documenting minutes, and ensuring compliance with the applicable laws and regulations of California.

The operating contract also includes provisions related to the transfer of membership interests, dissolution of the organization, dispute resolution mechanisms, and provisions relating to non-competition, confidentiality, and non-solicitation.

Overall, this legal template serves as a comprehensive and customizable document that provides a clear framework for the operation and management of a multi-member, manager-managed business entity in California. It offers the necessary legal protections and clarity to ensure smooth functioning and mitigate conflicts among the members involved.