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# Operating Agreement Review and Recommendations
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## Overall Structure and Organization
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### Strengths
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- Comprehensive coverage of key areas
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- Clear hierarchical structure
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- Detailed definitions section
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- Strong emphasis on electronic records and modern technology
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### Recommended Structural Changes
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1. Add a Table of Contents at the beginning for easier navigation
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2. Include section cross-references throughout the document
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3. Add paragraph numbering within sections for precise referencing
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## Specific Recommendations
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### Article 1 - Recitals
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1. Add effective date in Section 1.1
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2. Include specific reference to original operating agreement date
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3. Add transition provisions for implementation timeline
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### Article 2 - Glossary
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1. Add definitions for:
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- "TSYS"
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- "Formation capital activities"
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- "Subsequent capital activities"
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- "External capital"
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- "Capital restructuring"
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2. Clarify definitions:
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- Expand "Electronic Records" to include blockchain and distributed ledger specifics
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- Define "material business relationship" in Independent Director criteria
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- Specify what constitutes "immediate family members"
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### Article 3 - Mandatory Operational Requirements
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1. Add specific timelines for:
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- Implementation of electronic records system
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- Transition to mandatory service providers
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- Capital requirement compliance
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2. Include provisions for:
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- Service level agreements with mandatory providers
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- Dispute resolution process for service issues
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- Emergency backup procedures
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- Performance metrics and reporting requirements
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### Article 4 - Series Establishment
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1. Add more detailed procedures for:
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- Series application process
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- Due diligence requirements
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- Timeline for approval/rejection
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- Appeal process for rejected applications
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2. Strengthen isolation provisions:
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- Add specific accounting separation requirements
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- Include detailed asset segregation procedures
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- Specify prohibited inter-series transactions
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### Article 5 - Company Restrictions
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1. Add provisions for:
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- Annual review of administrative assets
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- Disposal of excess administrative assets
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- Reporting requirements for administrative expenses
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### Article 6 - Governance Structure
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1. Add specific provisions for:
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- Committee member qualifications
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- Training requirements
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- Term limits for committee chairs
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- Succession planning
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2. Include detailed procedures for:
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- Committee member removal
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- Emergency succession
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- Virtual meeting protocols
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- Voting procedures
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### Article 8 - Securities Law Matters
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1. Add specific provisions for:
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- Regular securities law compliance reviews
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- Updates to risk disclosures
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- Member education requirements
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- Documentation requirements
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### Article 10 - Miscellaneous
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1. Add sections for:
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- Insurance requirements
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- Record retention periods
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- Disaster recovery
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- Business continuity planning
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## Critical Gaps to Address
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1. **Technology Risk Management**
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- Add detailed provisions for technology failure scenarios
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- Include specific cybersecurity requirements
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- Define minimum security standards
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- Specify backup and recovery procedures
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2. **Regulatory Compliance**
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- Add provisions for regulatory changes
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- Include compliance monitoring procedures
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- Define reporting requirements
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- Specify audit procedures
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3. **Financial Controls**
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- Add specific internal control requirements
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- Include detailed accounting procedures
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- Define financial reporting standards
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- Specify audit requirements
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4. **Emergency Procedures**
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- Add provisions for leadership incapacity
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- Include emergency decision-making procedures
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- Define crisis management protocols
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- Specify communication requirements
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## Implementation Recommendations
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1. **Phased Approach**
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- Phase 1: Electronic records implementation
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- Phase 2: Service provider transition
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- Phase 3: Governance structure implementation
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- Phase 4: Full compliance verification
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2. **Documentation Requirements**
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- Create implementation guidelines
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- Develop compliance checklists
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- Establish verification procedures
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- Define reporting requirements
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3. **Training Program**
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- Develop member training materials
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- Create committee orientation program
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- Establish ongoing education requirements
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- Define competency verification procedures
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## Priority Changes
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### Immediate Priority
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1. Add effective date and transition provisions
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2. Clarify critical definitions
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3. Add specific timelines for implementation
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4. Strengthen isolation provisions
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### Medium Priority
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1. Enhance governance procedures
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2. Add detailed technology requirements
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3. Strengthen compliance provisions
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4. Develop training requirements
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### Long-term Priority
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1. Develop comprehensive procedures
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2. Create detailed guidelines
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3. Establish monitoring systems
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4. Implement review processes
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## Additional Considerations
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1. **Future Flexibility**
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- Add provisions for technology evolution
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- Include procedure modification process
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- Define update requirements
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- Specify review periods
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2. **Risk Management**
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- Enhance risk assessment procedures
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- Add mitigation requirements
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- Include monitoring provisions
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- Define reporting obligations
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3. **Member Protection**
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- Strengthen confidentiality provisions
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- Add intellectual property protection
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- Include data privacy requirements
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- Specify member rights protection
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4. **Operational Efficiency**
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- Add performance metrics
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- Include efficiency requirements
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- Define optimization procedures
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- Specify review processes
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# Turnkey Network Systems LLC Operating Agreement - 2.0 design document
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This document is meant to capture the:
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- design
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- architecture
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- requirements
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- intent
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for the 2.0 version of the Turnkey Network Systems LLC Operating Agreement and the series established thereunder.
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We have learned quite a bit in our first few years of operation as an LLC of some sophistication.
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## Main company agreement
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### Main company agreement overview
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This document is for the Company, the overall LLC that is registered (as a series LLC) with the Texas secretary of state. It's entire purpose is to be an administrative body for the series. It conducts no business, it enters into no contracts, it can not be dissolved, it has a single member (Turnkey Network Systems LLC - Wyble Family Office (series) LLC - TSYSMemberSeries) and that member cannot be removed.
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The entire document was written by Claude , using a combination of chats over a period of a few hours. Less than 1% of the document was altered by Charles from Claudes output.
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### Main company agreement requirements
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### Main company agreement requirements
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- (in progress) ensure everything from the Lone Star Land Law.com website/ebook is included (as applicable at the main company level, most requirements will be at the series level)
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- (in progress) ensure everything from the Lone Star Land Law.com website/ebook is included (as applicable at the main company level, most requirements will be at the series level)
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- (in progress) merge in anything relevant from the v1.0 agreement (as applicable at the main company level, most of that content will be applied at the series level)
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- (in progress) merge in anything relevant from the v1.0 agreement (as applicable at the main company level, most of that content will be applied at the series level)
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- (done) be fully compliant with current Texas law
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- (done) States that this is the amended and restated operating agreement of Turnkey Network Systems LLC and that all previous written and verbal agreements of TSYS Group, TSYS, Turnkey Network Systems LLC, Turnkey Network Systems Partnership and Turnkey Network Systems sole proprietorship are hereby null and void.
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- (done)specify that the overall LLC will not have any members except for the Wyble Family Office LLC.
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- (done) Ensure a provision exists in the agreement with standard boilerplate contract provisions.
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- (done) Include provisions for over riding every part of the relevant Texas business organizations code as allowed by law.
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- (done) Allow each series broad latitude to set its own operating agreement parameters but they can’t override anything that is set for the entire LLC in the overall operating agreement.
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- (done) allow for the establishment of regular series LLC
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- (done) allow for the establishment of a subsidary Cell LLC that can contain subsidary series LLC entities governed by/within the Cell
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- (done and will be updated with each revision) include a definitions section
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- (done) allowing explicitly for the establishment of tools/dies/casts/materials/supplies/intellectual property (TDCMSP) series that only own physical and intellectual property assets and have no operational capability other than entering into a lease with an operating series but are forbidden from entering into an agreement with the company itself or any outside entity
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- (done) specifying oversight is via multiple Board committees instead of the entire Board
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- (done) specify that all of the LLC series will be member managed , with the board providing governance , not management.
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- (done) The sub committee will be governed by a charter that is separate from the operating agreement but referenced in the operating agreement.
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- (done) the LLC as a whole will be part of an overall organization called TSYS Group. TSYS Group will have a board with sub committees. The LLC will be governed by a sub committee of independent directors elected by the members of all the series LLC.
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- (done) allow all series broad latitude setting their operating terms and agreement
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- (done) serve as a detailed and comprehensive parent LLC operating agreement for a Texas series LLC called Turnkey Network Systems LLC
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- (done) Specify that all series created under the LLC must use Known Element Enterprises LLC as the sole vendor for IT and business operations services
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- (done) Specify that all series created under the LLC must use The Campus Trading Company LLC as the sole vendor for transaction/treasury operations.
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## Series agreement (template)
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## Series agreement (template)
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- be fully compliant with current Texas law
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- be fully compliant with current Texas law
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- include standard/customary contract provisions
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- include standard/customary contract provisions
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- Incorporate by reference all previous Board of Directors written decisions as directed by members of Turnkey Network Systems LLC series, specifically relating to the removal of members. Include a link to https://git.knownelement.com/tofix in that section.
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- Utilize the fairshares model
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- Utilize the fairshares model
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- granting of profit interests instead of capital interests
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- granting of profit interests instead of capital interests
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## Establishment of foundational series
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- specify the establishment of an operating series called Wyble Family Office LLC. Wyble Family Office LLC will have one member: Charles Wyble and Patti Wyble Living Trust with 100% distribution. The member can not be removed and no members can be added. Upon the death of Charles Wyble and Patti Wyble the trust only has a finanical interest and no voting rights. While
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- specify the establishment of an operating series called Known Element Enterprises (series) LLC.
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- specify the establishment of an operating series called The Campus Trading Company (series) LLC
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Share Section 1.1 Enhancements
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Share Section 1.5 Enhancements
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Share Section 2.1 Enhancements
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Share Section 3.1 Enhancements
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Share Section 4.3 Enhancements
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Share Section 4.4 Revisions
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Share Section 4.4 Revisions
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Share Section 4.4 Enhancements
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Share Section 4.1 Enhancements
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