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Exhibit 3.42
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LIMITED LIABILITY COMPANY AGREEMENT
OF
EQUISTAR ATLANTA GP COMPANY, L.L.C.
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Dated: November 9, 1995
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TABLE OF CONTENTS
PAGE
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1. Definitions ........................................................... 1
2. Formation and Name .................................................... 6
3. Principal and Registered Offices; Agent for Service of Process ........ 6
4. Term .................................................................. 7
5. Purpose ............................................................... 7
6. Capital Contributions; Percentage Interests ........................... 8
7. Income and Losses; Distribution of Available Net Income ............... 8
8. Tax Matters ........................................................... 13
9. Management and Rights, Duties and Obligations of the Members .......... 14
10. Transfer of Members' Interests ........................................ 14
11. Resignation, Expulsion or Bankruptcy of a Member ...................... 15
12. Termination of the Company ............................................ 15
13. Gain, Loss and Distribution on Liquidation ............................ 15
14. Further Assurances; Consents and Approvals ............................ 16
15. Notices ............................................................... 17
16. Captions .............................................................. 17
17. Variations of Pronouns ................................................ 17
18. Counterparts .......................................................... 17
19. Governing Law ......................................................... 17
20. Successors and Assigns ................................................ 18
21. Invalidity ............................................................ 18
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LIMITED LIABILITY COMPANY AGREEMENT
OF
EQUISTAR ATLANTA GP COMPANY, L.L.C.
This LIMITED LIABILITY COMPANY AGREEMENT (this "Agreement") is made as of
the 9th day of November, 1995, by and between EQUISTAR HOTEL INVESTORS, L.P., a
Delaware partnership having an office c/o CapStar Hotels, Inc., ▇▇▇▇ ▇▇▇▇▇▇▇▇▇
▇▇▇▇▇▇, ▇.▇., ▇▇▇▇▇▇▇▇▇▇, ▇.▇. ▇▇▇▇▇ ("EquiStar, L.P."), and EQUISTAR
ACQUISITION CORPORATION, a Delaware corporation having an office c/o CapStar
Hotels, Inc., ▇▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇.▇., ▇▇▇▇▇▇▇▇▇▇, ▇.▇. ▇▇▇▇▇ ("EquiStar
Corp.").
W I T N E S S E T H :
WHEREAS, the parties hereto (collectively, the "Members" and individually,
a "Member") desire to form a limited liability company for the purposes
hereinafter set forth.
NOW, THEREFORE, the parties hereto agree as follows:
1. Definitions. As used in this Agreement, the following terms shall
have the respective meanings set forth below:
1.1 "Act" shall mean the Limited Liability Act of the State of
Delaware, as the same may have been or may be amended.
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1.2 "Adjusted Capital Account" shall mean, with respect to any Member,
such Member's Capital Account balance, increased by such Member's share of
Company Minimum Gain and Member Minimum Gain.
1.3 "Code" shall mean the Internal Revenue Code of 1986 as the same has
been and may hereafter be amended.
1.4 "Company" shall have the meaning set forth in Article 2.
1.5 "Company Minimum Gain" means "partnership minimum gain," as defined in
Treasury Regulations Section 1.704-2(b)(2) and shall be determined in
accordance with Treasury Regulations Section 1.704-2(d).
1.6 "Depreciation" shall mean, with respect to any year or portion
thereof, an amount equal to the depreciation, amortization or other cost
recovery deduction allowable with respect to an asset for Federal income tax
purposes, except that if the Gross Asset Value of the asset differs from its
adjusted tax basis, Depreciation shall be determined in accordance with the
methods used for Federal income tax purposes and shall equal the amount that
bears the same ratio to the Gross Asset Value of such asset as the
depreciation, amortization or other cost recovery deduction computed for
Federal income tax purposes with respect to such asset bears to the adjusted
Federal income tax basis of
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such asset; provided, however, that if any such asset that is depreciable or
amortizable has an adjusted Federal income tax basis of zero, the rate of
Depreciation shall be as determined by the Members.
1.7 "Gross Asset Value" shall mean, with respect to any asset, the
asset's adjusted basis for Federal income tax purposes, except that (i) the
Gross Asset Value of any asset contributed to the Company shall be its gross
fair market value at the time of contribution, (ii) the Gross Asset Value of
any asset distributed in kind to any Member (including a liquidation of the
Company) shall be the gross fair market value of such asset, and (iii) the
Gross Asset Value of any asset determined pursuant to clause (i) above shall
thereafter be adjusted from time to time by the Depreciation taken into account
with respect to such asset for purposes of determining Net Profit or Net Loss.
1.8 "Member" shall mean each of the parties to this Agreement and
any other Person to which an interest in the Company is hereafter transferred
and who is admitted to the Company in accordance with the terms of this
Agreement.
1.9 "Member Minimum Gain" means "partner nonrecourse debt minimum
gain," as defined in Treasury Regulations Section 1.704-2(i)(2) and determined
in accordance with Treasury Regulations Section 1.704-2(i)(3).
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1.10 "Member Nonrecourse Debt" means "partner nonrecourse debt," as
defined in Treasury Regulations Section 1.704-2(b)(4).
1.11 "Member Nonrecourse Deductions" means "partner nonrecourse
deductions," as defined in Section 1.704-2(i)(1) of the Treasury Regulations
and shall be determined in accordance with Section 1.704-2(i)(2) of the
Treasury Regulations.
1.12 "Net Profit" or "Net Loss" shall mean, with respect to any
fiscal year, the taxable income or loss of the Company as determined for
Federal income tax purposes, with the following adjustments:
1.12.1 Such taxable income or loss shall be increased by the
amount, if any, of tax-exempt income received or accrued by the Company;
1.12.2 Such taxable income or loss shall be reduced by the
amount, if any, of all expenditures of the Company described in Section
705(a)(2)(B) of the Code, including expenditures treated as described therein
under Section 1.704-1(b)(2)(iv)(i) of the Treasury Regulations;
1.12.3 If the Gross Asset Value of any asset is adjusted
pursuant to clause (ii) of the definition of Gross Asset Value, the amount of
such adjustment shall be taken into account, immediately prior to the event
giving rise to such adjustment, as gain or loss from the
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disposition of such asset for purposes of computing Net Profit or Net Loss;
1.12.4 Gain or loss resulting from any disposition of any asset with
respect to which gain or loss is recognized for Federal income tax purposes
shall be computed by reference to the Gross Asset Value of the asset disposed
of, notwithstanding that such Gross Asset Value differs from the adjusted tax
basis of such asset; and
1.12.5 In lieu of the depreciation, amortization, or other cost
recovery deductions taken into account in computing such taxable income or
loss, there shall be taken into account Depreciation for such fiscal year.
1.13 "Percentage Interests" shall have the meaning specified in
Section 6.2.
1.14 "Property" shall mean that certain property presently known as
the Atlanta Renaissance Hotel and located in Atlanta, Georgia, and all personal
property situated at such property or used or useful in connection therewith.
1.15 "Regulatory Allocations" has the meaning ascribed thereto in
subsection 7.3.8.
1.16 "Treasury Regulations" means the rules, regulations, orders and
interpretations of rules, regulations and orders validly promulgated by the
Treasury
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Department under the Code, whether final, temporary or proposed, as in effect
from time to time.
2. Formation and Name. The Members hereby form a limited liability company
(the "Company") pursuant to the provisions of the Act. The business of the
Company shall be conducted under the name "EQUISTAR ATLANTA GP COMPANY, L.L.C."
3. Principal and Registered Offices; Agent for Service of Process.
3.1 The principal place of business of the Company, and the address of
the office at which the records of the Company shall be maintained, shall be in
care of CapStar Hotels, Inc., ▇▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇.▇., ▇▇▇▇▇ ▇▇▇,
▇▇▇▇▇▇▇▇▇▇, ▇.▇. ▇▇▇▇▇, or at such other place as may hereafter from time to
time be selected by the Managing Member.
3.2 The Company's registered office shall be c/o CapStar Hotels, Inc.,
▇▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇.▇., ▇▇▇▇▇ ▇▇▇, ▇▇▇▇▇▇▇▇▇▇, ▇.▇. ▇▇▇▇▇.
3.3 The registered agent of the Company for service of process within
the State of Delaware shall be United Corporate Services, ▇▇ ▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇,
▇▇▇▇▇, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇. In the event that the person or entity at any time acting
as such agent shall cease to act as such for any reason, EquiStar, L.P. shall
appoint a substitute agent.
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Such agent shall be the agent of the Company on which any process, notice or
demand required or permitted by law to be served on the Company may be served.
4. Term. The term of the Company shall commence upon the execution and
delivery of this Agreement and shall continue until terminated by agreement of
the Members or as otherwise provided in this Agreement.
5. Purpose. The purpose of the Company shall be (i) to acquire one or
more of the general partnership interest in Lepercq Atlanta Renaissance
Partners, L.P., a Delaware limited partnership (the "Partnership"), the owner
of the Property, and (ii) to hold, own, pledge, grant security interests in,
encumber, dispose of and in all respects deal as owner of such partnership
interests, (iii) in connection with its other activities, to borrow money and
otherwise incur indebtedness and, if EquiStar, ▇.▇. ▇▇▇▇▇ it necessary or
desirable in connection with the obtaining of financing for the Company, to
perform all acts and engage in all activities incidental to the foregoing.
Notwithstanding the foregoing, the Company shall be subject to all
"single-purpose entity" or "limited-purpose entity" requirements imposed by any
loan documents or guaranties to which the Company is a party and, to the extent
required by such documents, such requirements shall be deemed incorporated in
this Section 5.
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6. Capital Contributions; Percentage Interests.
6.1 Simultaneously with the execution and delivery of this Agreement
the Members are making the following contributions to the capital of the
Company:
(a) EquiStar, L.P. -- $99.00
(b) EquiStar Corp. -- $ 1.00
6.2 The Members' percentage interests in the Company ("Percentage
Interests") shall be as follows:
(a) EquiStar, L.P. -- 99%
(b) EquiStar Corp. -- 1%
6.3 If the Company shall require any additional funds after the date
hereof, as determined by EquiStar, L.P., the Members shall contribute such
funds to the Company in proportion to their respective Percentage Interests.
6.4 Except as expressly provided in this Article 6, no Member shall
be required to make any capital contributions or loans to the Company and no
Member shall make any capital contributions or loans to the Company without the
consent of the other Member.
7. Income and Losses; Distribution of Available Net Income.
7.1 A separate "Capital Account" shall be maintained for each
Member. Each Member's Capital Account shall be credited with the amount of such
Member's capital contributions made in cash and the fair market value (net of
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liabilities assumed or taken subject to) of all property contributed by such
Member and such Member's allocated share of Net Profit, income and gain of the
Company. Each Member's Capital Account shall be debited with the amount of any
cash distributions to such Member and the fair market value (net of liabilities
assumed or taken subject to) of all property distributed in kind to such Member
and such Member's allocated share of Net Loss of the Company.
7.2 From and after the date of this Agreement, all Net Profit and
all Net Loss of the Company for each year or fraction thereof (determined after
taking into account any allocation for such period under Section 7.3) shall be
credited to the Capital Accounts of the Members in proportion to their
respective Percentage Interests.
7.3 SPECIAL ALLOCATIONS.
7.3.1 Except as otherwise provided in Section 7.3.2, all items
of Company income, gain, deduction and loss shall be allocated among the
Members in the same proportion as they share in the Net Profit and Net Loss to
which such items relate. Any credits against income tax shall be allocated in
accordance with the Members' Percentage Interests.
7.3.2 Income, gain, loss or deductions of the Company shall,
solely for income tax purposes, be allocated among the Members in accordance
with
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Section 704(c) of the Code and the Treasury Regulations promulgated thereunder,
so as to take account of any difference between the adjusted basis of the
assets of the Company and their respective Gross Asset Values in accordance
with the traditional method set forth in Section 1.704-3(b) of the Treasury
Regulations.
7.3.3 Notwithstanding any other provision of this Article 7, if there
is a net decrease in Company Minimum Gain during any year, each Member shall be
specially allocated items of income and gain for such year (and, if necessary,
subsequent years) in an amount equal to the portion of such Member's share of
the net decrease in Company Minimum Gain, determined in accordance with Section
1.704-2(g) of the Treasury Regulations. Allocations pursuant to the previous
sentence shall be made in proportion to the respective amounts required to be
allocated to each Member pursuant thereto. The items to be so allocated shall
be determined in accordance with Section 1.704-2(f)(6) of the Treasury
Regulations. This Section 7.3.3 is intended to comply with the minimum gain
chargeback requirement in Section 1.704-2(f) of the Treasury Regulations and
shall be interpreted consistently therewith.
7.3.4 Notwithstanding any other provisions of this Article 7, if there
is a net decrease in Member Minimum Gain attributable to a Member Nonrecourse
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Debt during any year, each Member who has a share of the Member Minimum Gain
attributable to such Member Nonrecourse Debt, determined in accordance with
Section 1.704-2(i)(5) of the Treasury Regulations, shall be specially allocated
items of income and gain for such year (and, if necessary, subsequent years) in
an amount equal to the portion of such Member's share of the net decrease in
Member Minimum Gain attributable to such Member Nonrecourse Debt, determined in
accordance with Section 1.704-2(i)(4) of the Treasury Regulations. Allocations
pursuant to the previous sentence shall be made in proportion to the respective
amounts required to be allocated to each Member pursuant thereto. The items to
be so allocated shall be determined in accordance with Section 1.704-2(i)(4) of
the Treasury Regulations. This Section 7.3.4 is intended to comply with the
minimum gain chargeback requirement in Section 1.704-2(i) of the Treasury
Regulations and shall be interpreted consistently therewith.
7.3.5 Nonrecourse Deductions for any year shall be allocated as Net Loss
pursuant to Section 7.2.
7.3.6 Any Member Nonrecourse Deductions for any year shall be specially
allocated to the Member who bears the economic risk of loss with respect to the
Member Nonrecourse Debt to which such Member Nonrecourse Deductions are
attributable in accordance with Section 1.704-2(i)(1) of the Treasury
Regulations.
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7.3.7 Notwithstanding any other provision of this Article 7, no
Member shall be allocated in any year of the Company any Net Loss to the extent
such allocation would cause or increase a deficit balance in such Member's
Adjusted Capital Account, taking into account all other allocations to be made
for such year pursuant to this Article 7 and the reasonably expected
adjustments, allocations and distributions described in Section
1.704-1(b)(2)(ii)(d) of the Treasury Regulations. Any such Net Loss that would
be allocated to a Member (the "Deficit Member") shall instead be allocated to
the other Member. Moreover, if a Deficit Member unexpectedly receives an
adjustment, allocation or distribution described in Section 1.704-1(b)(2)(ii)(d)
of the Treasury Regulations which creates or increases a deficit balance in such
Member's Adjusted Capital Account (computed after all other allocations to be
made for such year pursuant to this Article 7 have been tentatively made as if
this Section 7.3.7 were not in this Agreement), such Deficit Member shall be
allocated items of income and gain in an amount equal to such deficit balance.
This Section 7.3.7 is intended to comply with the qualified income offset
requirement of Section 1.704-1(b)(2)(ii)(d) of the Treasury Regulations and
shall be interpreted consistently therewith.
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7.3.8 The allocations set forth in Sections 7.3.3 through 7.3.7
(the "Regulatory Allocations") shall be taken into account in allocating items
of income, gain, loss and deduction among the Members so that, to the extent
possible, the net amount of such allocations of other items and the Regulatory
Allocations to each Member shall be equal to the net amount that would have been
allocated to each such Member if the Regulatory Allocations had not occurred.
7.4 Distributions. All distributions of Company cash and other
property shall be made to the Members in proportion to their respective
Percentage Interests; provided, however, that the provisions of this Section 7.4
shall not apply upon the liquidation of the Company or upon the sale of all or
substantially all of the Company's assets, it being understood that in such
circumstances the provisions of Section 13.4 shall apply.
8. Tax Matters.
Federal, state and local income tax returns of the Company shall
be prepared and filed, or caused to be prepared and filed, by EquiStar, L.P.
EquiStar, L.P. shall at all times be the "tax matters partner" of the Company
for purposes of Section 6231(a)(7) of the Code.
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9. Management and Rights, Duties and Obligations of the Members.
9.1 The management and control of the Company's business shall be
exercised, and all decisions to be made by the Company shall in each case be
made, by EquiStar, L.P. EquiStar, L.P. shall have the sole right to bind, or
otherwise act on behalf of, the Company. Without limiting the foregoing,
EquiStar, L.P. shall have the right, without the consent or approval of EquiStar
Corp., to acquire, mortgage or otherwise encumber, and sell or otherwise dispose
of the Property or any portion thereof.
9.2 Except as otherwise expressly provided in this Agreement, no
Member shall have the right to resign from the Company or to demand the return
of all or any part of its contribution to the capital of the Company until the
Company has been dissolved and terminated, and then only to the extent provided
in this Agreement, nor shall any Member have the right to demand or receive
property other than cash in return for its contribution.
10. Transfer of Members' Interests. No Member shall sell, assign,
transfer or otherwise dispose of, or mortgage, hypothecate, pledge or otherwise
encumber, or permit or suffer any encumbrance of, all or any part of its
interest in the Company, or any interest therein.
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11. Resignation, Expulsion or Bankruptcy of a Member. In the event
of the resignation, expulsion or bankruptcy of any Member, the Company shall
thereupon be dissolved and terminated and the Members shall cause a Certificate
of Cancellation in the form required by the Act to be filed with the Secretary
of State of Delaware when the Company is dissolved.
12. Termination of the Company. Upon the voluntary termination of
the Company upon the consent of the Members, the sale or other transfer of all
or substantially all of the Company's assets or any other termination of the
Company in accordance with the provisions of this Agreement, the Company shall
wind up its affairs and shall then be liquidated as provided in Article 13.
13. Gain, Loss and Distribution on Liquidation. Upon any
termination of the Company each of the following shall be accomplished:
13.1 The Members shall cause to be prepared a statement setting
forth the assets and liabilities of the Company as of the date of such
termination, and such statement shall be furnished to each Member.
13.2 The property and assets of the Company, if any, shall be
liquidated as promptly as possible, but in an orderly and businesslike manner
so as not to involve undue sacrifice.
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13.3 Any Net Profit or Net Loss realized by the Company upon the sale or
other disposition of the property and assets of the Company shall be credited
or charged to the capital accounts of the Members pursuant to Section 7.2 or
7.3, as applicable.
13.4 The proceeds of sale and all other assets of the Company shall be
paid and distributed as follows and in the following order of priority:
13.4.1 to the payment of the debts and liabilities of the Company
and the expenses of liquidation;
13.4.2 to the setting up of any reserves which EquiStar, L.P.
determines are reasonably necessary for any contingent or unforeseen
liabilities or obligations of the Company or the Members arising out of, or in
connection with, the Company; and
13.4.3 to the Members in proportion to their respective Capital
Account balances.
14. Further Assurances; Consents and Approvals. Each party to this
Agreement agrees to execute, acknowledge, deliver, file and record such further
certificates, amendments, instruments and documents, and to do all such other
acts and things, as may be required by law, or as may, be necessary or
advisable to carry out the intent and purposes of this Agreement.
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15. Notices. Unless otherwise specified in this Agreement, all notices,
demands, elections, requests or other communications (collectively "notices")
which any Member may desire or be required to give hereunder shall be in
writing and shall be given by mailing the same by registered or certified mail,
return receipt requested, or by Federal Express or comparable air courier
service, postage prepaid, or by delivering the same by hand, addressed to the
Members at their addresses first set forth above.
16. Captions. All section and article titles or captions contained in this
Agreement and the table of contents, if any, are for convenience only and shall
not be deemed a part of this Agreement.
17. Variations of Pronouns. All pronouns and all variations thereof shall
be deemed to refer to the masculine, feminine or neuter, singular or plural, as
the identity of the person(s) or entity(ies) may require.
18. Counterparts. This Agreement may be executed in counterparts, each of
which shall constitute an original and all of which, when taken together, shall
constitute one agreement.
19. Governing Law. This Agreement is made pursuant to the provisions of
the Act and shall be construed accordingly.
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20. Successors and Assigns. This Agreement shall be binding upon the
parties hereto and their respective successors and permitted assigns and shall
inure to the benefit of the parties hereto and their respective successors and
permitted assigns, but shall not inure to the benefit of, or be enforceable by,
any other person or entity.
21. Invalidity. If any provision or any portion of any provision of this
Agreement, or the application of any such provision or any portion thereof to
any Member or circumstance, shall be held invalid or unenforceable, the
remaining portion of such provision and the remaining provisions of this
Agreement, and the application of such provision or such portion to a Member or
to circumstances other than those as to which it is held invalid or
unenforceable, shall not be affected thereby.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the day and year first above written.
EQUISTAR HOTEL INVESTORS, L.P.,
a Delaware limited partnership
By: Cherwell Investors, Inc.,
a Delaware corporation, general partner
By: /s/ ▇▇▇▇ ▇▇▇▇▇▇▇▇▇
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Name: ▇▇▇▇ ▇▇▇▇▇▇▇▇▇
Title: Vice President
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By: CapStar Executive Investors I,
L.L.C., a Delaware limited
liability company, general
partner
By: /s/[illegible]
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Member
EQUISTAR ACQUISITION CORPORATION,
a Delaware corporation
By: /s/ ▇▇▇▇ ▇▇▇▇▇▇▇▇▇
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Name: ▇▇▇▇ ▇▇▇▇▇▇▇▇▇
Title: Vice President