Limited Liability Company Agreement (2007)Full Document 

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Limited Liability Company Agreement
of
Regulus Therapeutics LLC
 
a Delaware Limited Liability Company
 
Dated as of September 6, 2007

 


 

TABLE OF CONTENTS
             
        Page  
ARTICLE 1 Definitions; Representations and Warranties     1  
ARTICLE 2 Organization and Description     2  
2.1
  Name     2  
2.2
  Term     2  
2.3
  Registered Office and Statutory Agent     2  
2.4
  Principal Executive Office     2  
2.5
  Business     2  
2.6
  Qualification in Other Jurisdictions     2  
2.7
  Filings, Reports and Formalities     2  
2.8
  Limited Liability     3  
ARTICLE 3 Members; Voting Rights; Meetings; Withdrawal     3  
3.1
  Members     3  
3.2
  Powers of Members     3  
3.3
  Member Voting Rights     3  
3.4
  Meetings of Members     3  
3.5
  Action by Members Without a Meeting     5  
3.6
  Corporate Opportunities     5  
3.7
  No Priority, Etc.     6  
3.8
  No Withdrawal     6  
3.9
  Additional Members     6  
ARTICLE 4 Management     6  
4.1
  Managing Board of Directors     6  
4.2
  Power and Authority of the Managing Board     7  
4.3
  Major Decisions     8  
4.4
  Meetings of the Managing Board     9  
4.5
  Compensation     11  
4.6
  Initial Designation     11  
4.7
  Directors Bound     11  
ARTICLE 5 Employees; Operating Plan and Budget; Scientific Advisory Board     12  
5.1
  Employees     12  

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        Page  
5.2
  Operating Plan     14  
5.3
  Scientific Advisory Board     15  
ARTICLE 6 Capital Contributions and Percentage Interests     16  
6.1
  Capital Contributions     16  
6.2
  Withdrawal or Reduction of Capital Contributions     17  
6.3
  No Interest on Capital Contributions     17  
6.4
  Capital Accounts     17  
ARTICLE 7 Allocation of Profits and Losses; Distributions; Tax and Accounting Matters     19  
7.1
  Allocations     19  
7.2
  Distributions     21  
7.3
  Accounting Matters     22  
7.4
  Tax Status and Returns     23  
7.5
  754 Election     24  
7.6
  Tax Information     24  
7.7
  Tax Matters Partner     24  
ARTICLE 8 Restrictions on Transfer     25  
8.1
  Transfer of Interests     25  
8.2
  Exempt Transfers     25  
8.3
  Substitution of Members     26  
ARTICLE
  9 Buy-Out     27  
9.1
  Right to Initiate Buy-Out     27  
9.2
  Negotiated Resolution     27  
9.3
  Non-Negotiated Resolution     28  
ARTICLE 10 Dissolution     34  
10.1
  Dissolution     34  
10.2
  Liquidation     34  
10.3
  Liabilities     35  
10.4
  Settling of Accounts     35  
10.5
  Distribution of Proceeds     35  
10.6
  Certificate of Cancellation     35  
10.7
  Payment of Royalties     36  
10.8
  Treatment of Certain Assets     36  

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        Page  
ARTICLE 11 Exculpation and Indemnification     38  
11.1
  Duties of Directors     38  
11.2
  Exculpation     38  
11.3
  Indemnification by the Company     39  
11.4
  Insurance     41  
11.5
  Notice of Indemnification and Advancement     41  
11.6
  Repeal or Modification     41  
11.7
  Indemnification by Members     41  
11.8
  Limitation on Damages     42  
11.9
  Contractual Limitation Period     43  
ARTICLE 12 Inspection of Records; Annual and Other Reports; Confidentiality     43  
12.1
  Records to be Kept     43  
12.2
  Inspection of Company Records     43  
12.3
  Reports     44  
12.4
  Confidentiality     44  
ARTICLE 13 Miscellaneous     46  
13.1
  Governing Law     46  
13.2
  Amendments     46  
13.3
  Nature of Membership Interest; Agreement Is Binding upon Successors     47  
13.4
  Seal     47  
13.5
  Entire Agreement     47  
13.6
  Further Actions     47  
13.7
  Power of Attorney     47  
13.8
  No Third Party Beneficiary     48  
13.9
  Notice     48  
13.10
  Limited Liability Company     49  
13.11
  Fees and Expenses     49  
13.12
  Counterparts     50  
13.13
  Precedence     50  
13.14
  Titles and Subtitles; Form of Pronouns; Construction and Definitions     50  
13.15
  Severability     50  
13.16
  Survival of Certain Provisions     51  
13.17
  Survival of Warranties     51  

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        Page  
13.18
  Waiver of Partition     51  
13.19
  Delaware Limited Liability Company Act Prevails     51  
13.20
  Specific Performance     51  
Schedules and Exhibits
         
Schedule 1
  -   Definitions
Schedule 2
  -   Representations and Warranties
Schedule 3.1
  -   Names and Addresses, Initial Percentage Interests and Capital Account Balances
Schedule 4.5
  -   Form of Consulting Agreement
Schedule 4.6
  -   Initial Directors of the Managing Board
Schedule 5.3
  -   Initial SAB Members and Chairperson
Schedule 12.4
  -   Press Release
Exhibit A
  -   Initial Approved Operating Plan

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Limited Liability Company Agreement
of
Regulus Therapeutics LLC
     This LIMITED LIABILITY COMPANY AGREEMENT (this “Agreement”) of Regulus Therapeutics LLC, a Delaware limited liability company (the “Company”), is entered into as of September 6, 2007 (the “Effective Date”) by and among the Company, Alnylam Pharmaceuticals, Inc., a Delaware corporation (“Alnylam”), and Isis Pharmaceuticals, Inc., a Delaware corporation (“Isis,” and together with Alnylam, the “Members”).
W I T N E S S E T H:
     WHEREAS, the Members desire to form a joint venture to discover, develop manufacture and commercialize miRNA Therapeutics (the “Joint Venture”);
     WHEREAS, in connection therewith and on the Effective Date, the Members and the Company are entering into the following agreements, in each case as more particularly and more fully set forth therein: (a) the License Agreement; and (b) the Services Agreement;
     WHEREAS, a Certificate of Formation for the Company, a limited liability company organized under the laws of the State of Delaware, was filed with the Delaware Secretary of State on September 5, 2007 (the “Certificate”); and
     WHEREAS, the Members desire to enter into this Agreement to provide for their respective rights, powers, duties and obligations as Members, as well as for the management, operations and activities of the Company going forward;
     NOW, THEREFORE, the Members by this Agreement set forth the limited liability company agreement for the Company under the Delaware Limited Liability Company Act (6 Del. C. § 18-101 et seq. – as amended from time to time, the “Act”), upon the following terms and conditions:
ARTICLE 1
Definitions; Representations and Warranties
     Except as otherwise defined throughout this Agreement, as used herein the capitalized terms appearing in Schedule 1 will have the meanings set forth therein. Each Member represents and warrants to the other Member and the Company that the statements set forth in Schedule 2 with respect to such Member are true and correct as of the Effective Date.

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ARTICLE 2
Organization and Description
     2.1 Name.
     The name of the Company will be “Regulus Therapeutics LLC.” The Company may from time to time do business under any other name under which it is qualified to do business. The business of the Company will be conducted in compliance with all applicable laws.

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