Alternative Provision for Use in Long-Form Operating Agreements: Capitalization of Earnings Method of Valuation by entpress

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									SpadacciniUltimateLLC AppA.qxp     11/10/2010     2:34 PM    Page 229




                                                                                               THE ULTIMATE LLC COMPLIANCE GUIDE


                           LLC Form 4: Alternative Provision for Use in Long-Form Operating Agreements:
                                            Capitalization of Earnings Method of Valuation
               7.7. Calculation of Repurchase Price. The “Repurchase Price” shall be determined as of the date of the
                    event causing the transfer or dissolution event (the “Effective Date”). The date that the Company
                    receives notice of a Member’s intention to transfer his or her interest pursuant to this paragraph shall
                    be deemed to be the Effective Date. The Repurchase Price shall be determined as follows:
                    (a) Computation. The purchase price of each percentage point of Percentage Interest shall be com-
                        puted by the independent certified public (CPA) regularly used by the Company or, if the Company
                        has no CPA, by a CPA selected by the Company for this purpose. The price of the Company’s total
                        Membership Interest shall be the sum of the Company’s net profits for the most recent [TWO,
                        THREE, FOUR, OR FIVE] years, divided by [TWO, THREE, FOUR, OR FIVE]. This average net profit
                        shall be multiplied by [INSERT THE MULTIPLIER BY WHICH YOU DESIRE TO AMPLIFY ANNUAL
                        NET PROFITS, TYPICALLY A FIGURE BETWEEN TWO AND FOUR] and the result shall be divided by
                        the number of shares then outstanding. The Company’s net profits shall be determined in accor-
                        dance with the regular financial statements and in accordance with generally accepted accounting
                        principles.




                                                                                                         SUPPLEMENTAL LLC FORMS• 229

								
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