execution copy third amended and restated limited liability company operating agreement of gmac llc

100 Pages·2009·0.32 MB·English

EXECUTION COPY
THIRD AMENDED AND RESTATED
LIMITED LIABILITY COMPANY OPERATING AGREEMENT
OF
GMAC LLC
______________________________________________________
Dated as of March 24, 2009
______________________________________________________
THE MEMBERSHIP INTERESTS REPRESENTED BY THIS THIRD AMENDED AND
RESTATED LIMITED LIABILITY COMPANY OPERATING AGREEMENT HAVE NOT
BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS
AMENDED, OR UNDER ANY OTHER APPLICABLE SECURITIES LAWS. SUCH
INTERESTS MAY NOT BE SOLD, ASSIGNED, PLEDGED OR OTHERWISE DISPOSED
OF AT ANY TIME WITHOUT EFFECTIVE REGISTRATION UNDER SUCH ACT AND
LAWS OR EXEMPTION THEREFROM AND COMPLIANCE WITH THE OTHER
SUBSTANTIAL RESTRICTIONS ON TRANSFERABILITY SET FORTH HEREIN.
THE MEMBERSHIP INTERESTS REPRESENTED BY THIS THIRD AMENDED AND
RESTATED LIMITED LIABILITY COMPANY OPERATING AGREEMENT ARE ALSO
SUBJECT TO ADDITIONAL RESTRICTIONS ON TRANSFER SET FORTH IN THIS
THIRD AMENDED AND RESTATED LIMITED LIABILITY COMPANY OPERATING
AGREEMENT.

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TABLE OF CONTENTS
Page
ARTICLE I DEFINITIONS; INTERPRETATIVE MATTERS....................................................2
Section 1.1 Definitions.........................................................................................................2
Section 1.2 Cross-References............................................................................................22
Section 1.3 Interpretative Matters...................................................................................24
Section 1.4 Expert Determination of Fair Market Value..............................................25
ARTICLE II ORGANIZATIONAL MATTERS; GENERAL PROVISIONS............................26
Section 2.1 Formation.......................................................................................................26
Section 2.2 Name; Office; Registered Agent...................................................................26
Section 2.3 Purposes; Powers...........................................................................................27
Section 2.4 Duration..........................................................................................................27
Section 2.5 No State Law Partnership.............................................................................27
Section 2.6 Filings; Qualification in Other Jurisdictions...............................................28
Section 2.7 United States Income Tax Classification.....................................................28
ARTICLE III CAPITALIZATION; MEMBERSHIP INTERESTS............................................28
Section 3.1 Membership Interests; Capitalization; Capital Accounts..........................28
Section 3.2 Authorization and Issuance of Additional Membership Interests............29
Section 3.3 Application of Article 8 of the Uniform Commercial Code.......................30
Section 3.4 Certification of Membership Interests.........................................................31
Section 3.5 Capital Accounts............................................................................................31
Section 3.6 Time of Adjustment for Capital Contributions..........................................32
Section 3.7 No Right of Partition.....................................................................................33
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Section 3.8 Additional Capital Contributions and Financing.......................................33
ARTICLE IV SCHEDULE OF MEMBERS; BOOKS AND RECORDS; AFFIRMATIVE
COVENANTS......................................................................................................33
Section 4.1 Schedule of Members.....................................................................................33
Section 4.2 Books and Records; Other Documents........................................................33
Section 4.3 Reports and Audits........................................................................................34
Section 4.4 Tax Matters Member; Filing of Returns.....................................................35
Section 4.5 Financial Statements and Other Information.............................................37
Section 4.6 Independent Auditor.....................................................................................39
Section 4.7 Budget and Business Plan.............................................................................40
Section 4.8 Company Policies...........................................................................................40
ARTICLE V DISTRIBUTIONS...................................................................................................41
Section 5.1 Distributions...................................................................................................41
Section 5.2 Discretionary Distributions...........................................................................44
Section 5.3 Restricted Payments; Restrictions on Certain Redemptions.....................44
Section 5.4 Successors.......................................................................................................45
Section 5.5 Distributions of Assets other than Cash.......................................................45
Section 5.6 No Set-Off.......................................................................................................46
ARTICLE VI ALLOCATIONS...................................................................................................46
Section 6.1 Normal Allocations........................................................................................46
Section 6.2 Section 754 Election.......................................................................................48
Section 6.3 Allocations for Tax and Book Purposes.......................................................48
Section 6.4 Certain Accounting Matters.........................................................................48
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Section 6.5 Tax Allocations; Code Section 704(c)...........................................................48
Section 6.6 Qualified Income Offset................................................................................49
Section 6.7 Gross Income Allocation...............................................................................49
Section 6.8 Company Minimum Gain Chargeback.......................................................49
Section 6.9 Member Nonrecourse Debt Minimum Gain Chargeback.........................49
Section 6.10 Limitations on Tax Book Loss Allocations..................................................50
Section 6.11 Member Nonrecourse Deductions................................................................50
Section 6.12 Nonrecourse Deductions................................................................................50
Section 6.13 Excess Nonrecourse Liabilities.....................................................................50
Section 6.14 Ordering Rules...............................................................................................50
Section 6.15 Curative Allocations......................................................................................50
Section 6.16 Members’ Tax Reporting..............................................................................51
Section 6.17 Indemnification and Reimbursement for Payments on Behalf of a
Member........................................................................................................51
ARTICLE VII RIGHTS AND DUTIES OF MEMBERS............................................................51
Section 7.1 Members.........................................................................................................51
Section 7.2 No Management or Dissent Rights...............................................................51
Section 7.3 Member Fiduciary Duties.............................................................................52
Section 7.4 Meetings of the Common Holders................................................................52
Section 7.5 Notice of Meetings..........................................................................................53
Section 7.6 Quorum...........................................................................................................53
Section 7.7 Voting..............................................................................................................54
Section 7.8 Action Without a Meeting; Telephonic Meetings.......................................55
Section 7.9 Record Date....................................................................................................55
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Section 7.10 Certain Matters Requiring Approval of the Super Majority
Holders.........................................................................................................56
Section 7.11 Certain Matters Requiring Special Approval of the Majority GM
Preferred Holders.......................................................................................57
Section 7.12 Certain Matters Requiring Special Approval of the Class E
Preferred Holder.........................................................................................58
Section 7.13 Removal or Resignation of Members...........................................................58
Section 7.14 Liability of Members.....................................................................................59
Section 7.15 Investment Representations of Members....................................................59
Section 7.16 Certain Matters Requiring Approval of the Majority Holders.................59
ARTICLE VIII BOARD OF MANAGERS; OFFICERS............................................................60
Section 8.1 Establishment of Board of Managers...........................................................60
Section 8.2 General Powers of the Board of Managers..................................................61
Section 8.3 Composition of the Board of Managers; Removal of Managers for
Cause............................................................................................................61
Section 8.4 Meetings..........................................................................................................61
Section 8.5 Notice of Meetings..........................................................................................62
Section 8.6 Quorum...........................................................................................................62
Section 8.7 Voting..............................................................................................................62
Section 8.8 Action Without a Meeting; Telephonic Meetings.......................................63
Section 8.9 Certain Matters Requiring Majority Board Approval..............................63
Section 8.10 Certain Matters Requiring Special Independent Manager
Approval......................................................................................................64
Section 8.11 Certain Matters Requiring Board Discussion.............................................64
Section 8.12 Compensation of Managers; Expense Reimbursement..............................65
Section 8.13 Committees of the Board of Managers........................................................65
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Section 8.14 Delegation of Authority.................................................................................66
Section 8.15 Officers............................................................................................................66
Section 8.16 Standard of Care; Fiduciary Duties; Liability of Managers and
Officers.........................................................................................................68
ARTICLE IX TRANSFER OF MEMBERSHIP INTERESTS; SUBSTITUTED MEMBERS..69
Section 9.1 Limitations on Transfer of Membership Interests.....................................69
Section 9.2 Void Transfers................................................................................................69
Section 9.3 Substituted Member......................................................................................70
Section 9.4 Effect of Transfer...........................................................................................70
Section 9.5 Tax Related Transfer Restrictions...............................................................70
Section 9.6 Effective Date.................................................................................................71
Section 9.7 Acceptance of Prior Acts...............................................................................71
Section 9.8 Transfer of Certain Membership Interests by GM to the U.S.
Treasury.......................................................................................................71
ARTICLE X DISSOLUTION......................................................................................................72
Section 10.1 In General.......................................................................................................72
Section 10.2 Liquidation and Termination.......................................................................72
Section 10.3 Complete Distribution...................................................................................73
Section 10.4 Filing of Certificate of Cancellation.............................................................74
Section 10.5 Reasonable Time for Winding Up................................................................74
Section 10.6 Return of Capital...........................................................................................74
Section 10.7 Antitrust Laws................................................................................................74
Section 10.8 Other Remedies..............................................................................................74
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ARTICLE XI INDEMNIFICATION...........................................................................................74
Section 11.1 General Indemnity.........................................................................................74
Section 11.2 Fiduciary Insurance.......................................................................................75
Section 11.3 Rights Non-Exclusive.....................................................................................76
Section 11.4 Merger or Consolidation; Other Entities....................................................76
Section 11.5 No Member Recourse....................................................................................77
ARTICLE XII OTHER AGREEMENTS.....................................................................................77
Section 12.1 Transactions with Affiliates..........................................................................77
Section 12.2 Public Offering...............................................................................................78
Section 12.3 Preemptive Rights..........................................................................................79
Section 12.4 Optional Redemption of GM Preferred Membership Interests................80
Section 12.5 Optional Redemption of Class E Preferred Membership Interests..........82
Section 12.6 Transactions Involving Blocker Corps........................................................82
Section 12.7 Certain Undertakings in Connection with a Company Conversion.........83
Section 12.8 Treasury Preferred Amendments................................................................83
ARTICLE XIII CONFIDENTIALITY.........................................................................................84
Section 13.1 Non-Disclosure...............................................................................................84
Section 13.2 Exceptions.......................................................................................................84
ARTICLE XIV MISCELLANEOUS PROVISIONS...................................................................85
Section 14.1 Amendments...................................................................................................85
Section 14.2 Remedies.........................................................................................................86
Section 14.3 Notice Addresses and Notices.......................................................................86
Section 14.4 Counterparts..................................................................................................86
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Section 14.5 Assignment......................................................................................................86
Section 14.6 Entire Agreement; Waiver............................................................................86
Section 14.7 Severability.....................................................................................................87
Section 14.8 Governing Law...............................................................................................87
Section 14.9 Independent Contractors; Expenses............................................................87
Section 14.10 Press Release...................................................................................................87
Section 14.11 Survival...........................................................................................................87
Section 14.12 Creditors.........................................................................................................87
Section 14.13 Further Action................................................................................................88
Section 14.14 Delivery by Facsimile or Email.....................................................................88
Section 14.15 Strict Construction.........................................................................................88
Section 14.16 Consent to Jurisdiction..................................................................................88
Section 14.17 Waiver of Jury Trial......................................................................................88
Section 14.18 Specific Performance.....................................................................................89

SCHEDULES AND EXHIBITS
Schedule of Members (as of December 31, 2008)
Schedule of Material Subsidiaries
Schedule of Significant Joint Ventures
Exhibit A—Reserved
Exhibit B—Reserved
Exhibit C—Project Agreements
Exhibit D—Transaction Documents
Exhibit E—Company Policies
Exhibit F—Environmental Guidelines
Exhibit G—Affiliate Transactions
Exhibit H—Replacement Capital Covenant
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THIRD AMENDED AND RESTATED
LIMITED LIABILITY COMPANY OPERATING AGREEMENT
OF
GMAC LLC,
A DELAWARE LIMITED LIABILITY COMPANY
This THIRD AMENDED AND RESTATED LIMITED LIABILITY COMPANY
OPERATING AGREEMENT of GMAC LLC, a Delaware limited liability company (the
“Company”), is made and entered into as of March 24, 2009 (the “Effective Date”) by and
among GM Finance Co. Holdings LLC, a Delaware limited liability company (“GM Holdco”)
and FIM Holdings LLC, a Delaware limited liability company (“FIM”), each as Members, and
each other Member named herein, and each other Person who at any time becomes a Member in
accordance with the terms of this Agreement and the Act.
RECITALS:
A. The Company is a worldwide diversified financial services company that directly, and
indirectly through its Subsidiaries, provides automotive and non-automotive financing
and leasing, insurance, banking, mortgage lending and other services to a variety of
affiliated and unaffiliated consumer and commercial customers.
B. The predecessor of the Company, General Motors Acceptance Corporation, a Delaware
corporation (the “Predecessor”), was converted from a Delaware corporation to the
Company, and on July 20, 2006, General Motors Corporation, a Delaware corporation
(“GM”), as the initial Member of the Company, executed the initial Limited Liability
Company Agreement of the Company (as amended, the “Original Agreement”).
C. On November 30, 2006, GM Holdco, FIM, GMAC Management LLC, a Delaware
limited liability company (“Management Company”), and GM Preferred Finance Co.
Holdings LLC, a Delaware limited liability company (“GM Preferred Holdco”), entered
into that certain Amended and Restated Limited Liability Company Operating Agreement
of the Company (as amended, the “Amended and Restated Agreement”).
D. On December 29, 2008, FIM and GM Holdco adopted (i) Amendment No. 6 to the
Amended and Restated Agreement (“Amendment No. 6”) and (ii) Amendment No. 7 to
the Amended and Restated Agreement (“Amendment No. 7” and, together with
Amendment No. 6, the “Treasury Preferred Amendments”) authorizing the issuance of
the Class D-1 Preferred Membership Interests and the Class D-2 Preferred Membership
Interests, respectively.
E. On December 31, 2008, the Company completed an offer to exchange and/or purchase
for cash certain outstanding notes of the Company for newly issued senior guaranteed
notes (the “New Guaranteed Notes”) and subordinated notes of the Company and 9%
perpetual preferred stock (“Blocker Preferred”) of Preferred Blocker Inc., a Delaware
corporation (“Blocker Sub”), and up to $2,000,000,000 in cash, pursuant to that certain
Confidential Offering Memorandum, dated as of November 20, 2008 (as supplemented,
the “Exchange Offer”).
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F. In connection with the consummation of the Exchange Offer, the Company admitted
Blocker Sub as a Member of the Company and authorized the issuance of Class E
Preferred Membership Interests to Blocker Sub.
G. On December 31, 2008, the Members entered into a Second Amended and Restated
Limited Liability Company Operating Agreement of the Company (the “Second
Amended and Restated Agreement”) in order to amend and restate their understandings
and agreements regarding the governance and certain operations of the Company.
H. On March 10, 2009, FIM and GM Holdco adopted an amendment to the Second
Amended and Restated Agreement to provide for a Tax Distribution in connection with a
change in the federal tax election of COLT LLC, one of the Company's wholly-owned
Subsidiaries.
I. The parties hereto desire to amend and restate the Second Amended and Restated
Agreement to set forth, inter alia, their understandings and agreements regarding the
governance and operations of the Company and certain rights of Members; it being
understood that the terms of this Third Amended and Restated Agreement will continue
to be subject in all regards to the terms of Treasury Preferred Amendments, as amended
pursuant to the terms thereof, and that in the event of any conflict between this Third
Amended and Restated Agreement (and any subsequent amendment or restatement,
unless approved by the Treasury Preferred Holders pursuant to the terms of the Treasury
Preferred Amendments, it being understood no amendment entered into in connection
with the compliance by GM and FIM with their commitments to the Board of Governors
for purposes of such Board’s approval of the Company’s Bank Holding Act application
and/or the United States Department of the Treasury for purposes of the Company’s
participation in the Troubled Assets Relief Program shall be deemed to adversely affect
the rights, preferences, privileges or voting powers of the Treasury Preferred) and the
Treasury Preferred Amendments, the terms of the Treasury Preferred Amendments shall
prevail.
NOW, THEREFORE, in consideration of the foregoing and the mutual covenants,
conditions and agreements herein contained, the parties hereto, each intending to be legally
bound, agree that the Second Amended and Restated Agreement is hereby amended and restated
in its entirety (subject to Section 12.8) and further agree as follows:
ARTICLE I
DEFINITIONS; INTERPRETATIVE MATTERS
Section 1.1 Definitions. The following terms, as used herein, shall have the
following meanings:
“Act” means the Delaware Limited Liability Company Act, 6 Del. C. Sections
18-101 et seq.
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