EFTA01298085.pdf

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OPERATING AGREEMENT ra
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SOUTHERN FINANCIAL, LLC
A U.S. Virgin Islands Limited Liability Company a
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TIES OPERATING AGREEMENT (this "Agreement") is made and entered into as of
February 26, 2013, by Southern Trust Company, Inc. (hereinafter referred to as "Sole Member"),
with a business address is 6100 Red Hook Quarter, B3, St. Thomas, U.S. Virgin Islands 00802, and
which hereby forms Southern Financial, LLC, a U.S. Virgin Islands Limited Liability Company (the
"Company") pursuant to the U.S. Virgin Islands Uniform Limited Liability Company Act (the
"Act") upon the following terms and conditions:
SECTION I
ORGANIZATION & FORMATION
A. Formation. The Company has been organized as a U.S. Virgin Bands Limited Liability
Company under and pursuant to the U.S. Virgin Islands Limited Liability Company Act (the "Act")
by the filing of Articles of Organization ("Articles") with the Office of the Lieutenant Governor, on
February 25, 20I3, as required by the Act
B. Name The name of the Company shall be "Southern Financial, LLC". The Company F—
upon proper notice and filing with the Office of the Lieutenant Governor of the U.S. Virgin Islands z
may conduct its business under one or more assumed names. w
C. Purposes. The purpose of the Company is to operate any levetl business or to effectuate
h an av y e p a u l r l p t o h s e e p p o e w rm er i s t t n ed ec b es y s a th ry e o la r w co o n f v t e h n e ie t n e t r r t i o to a r f y f e o c f t a th n e y U pu .S r . p V os i e rg fo in r I w sl h a i n c d h s i . t i T s h fo e r C m o e m d, p i a n n c y lu s d h i a n l g l L z L
all powers granted by the Act.
IX Duration. The Company shall continue in existence perpetually, beginning on the date
of filing of the Articles, unless terminated by law or dissolved and terminated,
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SECTION II
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CAPITAL STRUCTURE: MEMBERSHIP UNITS AND E D
CONTRIBUTIONSURANSFER OF MEMBERSHIP UNITS F
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A. Capital Contribution by the Set; Member: Initial Issuance. The Sole Member's N T
ownership rights in the Company shall be reflected in "Membership Units", as recorded in the U A
c C o o n m tri p b a u n t y io 's n r t e o c t o h r e d s c . a p U ita p l o o n f t t h h e e f C o o rm m a p t a i n o y n i o n f t t h h e e a C m o o m un p t a o ny f , c a th sh e , S o o r l o e f M th e e m p b ro e p r e s r h ty al - l i n m -k a i k n e d , a o c r a b p o i t t h al , P U R S
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EFTA01298085

t s s h i u e m e b t r e e s f c t a o o r n r i . b t d h e T i d n h o e a p a n p n C d o y o s c a m i o t m e n p o t a t r u n h ib n y e u t s t S t h e h o d a a l l t e f l i o t t M r h m . e e r a T m e y h u b d e p e e o S r s n o ' i s r l i e e s n . s M a u m e e e m to o b t n e h r e t m S he o a y l S e m c M h a e e k d m e u a b l d e e d r o i t t f h io a C n t a a n l p u i c m t a a p b l i e C t r a o l a n c n t o d r n i c b tr l u a i t b s i u s o t n o i s o f n U a s t n t a a i t c t s a h n s e y o d
a s m a o p i w p M n u n s t a e r d b h h d o o r e m s e t o p n v m i t r n l b c i o l i w e t y s b o i e w u p i i r e t o o t e s a s e e r B n r e n a t s r c e t s s h . m b i i o n , s t i i o e l p e a u n n e T f p m n b e s d t U a r t d e n s h h a b r t t n t n e n t o i i i e i . s t t s t i s r u l m t r S f e s s e t a T e u I d e a e c n r t f h b d n c e o t d o a t e j o a i i e v d f m a g o s , c a e m n h e M n a t s e , m y a n , s i t m t e l t o i d o t l e t g m p h b e a n s t n e e b d e h l b u t m r e l r , S e e s c a . o t o e r o h e n e h s f n n n l d x h e a e A t t t t h i s o i a e s p o M t s n e r f l n u i f e f U g t b r e a p d a a e n a s m n i e s s r t s e t s i r M t i s o b s t e s i r t a i g u i e o o g e s c a n r t n f h m n t l e e i s l m a T t e o e , b h m l d t n h a l e e h a , y o s e e r t o e t C m s f a h S n a a h r n o e l s o b i n a i y d g m s p l d e y i e h m r b i g l p I , s i t t M e n n a s a t i e h c r m b t n m a i i e a e o i y t b n e r m l s s m b i u e d o t M e t a s b t i e o r i e t r n p e o s a s e t d d r o t n h o n m h o m o w s i f e f p e b a b r t a e s s h t o e e e y r h s i c r e m s x n n i e s o t g t t o a h o r e m m e n a s t t i n f r i s p e n e e e m i t i t e t s s m g h I s a a f e t n o n e e e s b t m l s i r f s t e e a f n i o h a a r g r s e g e a e n s s m n M t n l s . S i y i e l g t t m b o i d e o n i t b e l n m , e l r o e r e e . a . r a t b M l h t l a l e o h S l S e d e r n o e o u u s m m C l f f c h b y a o i h i i b j t s t t e p h m i s t e s a c f e e i r I g t s p d n a w s r n a l t t i i l o e n a e g g o r e s y t h n u e t h t e h l t s i a s e d o n e t e
r p i e n r t t o u e v r r i n e d s o e t, d f C , e a . i x n c N c a t e h o p p i i t t s I a n a l A t s e c g r o e r o n e s t t e t h r : m e i N b r e w u o n t i i t s R o , e n e t h t o e u e x r r p n a S r n o o e y l s f e s p C l o M y a r p t e p i i m o t r a o n b l v . t e i h r d C e e s r a d h e p o a i f l f t l o a . l r n c o i o n t n b t t r e h i b i e s u n t A t i i o t g l n e r s d e t e o t m o t e h w n e t i C th o d E m r x a p w c a e , n p y o t r s a h t s o a l o l r e t n h c o e e t r i w v e e a is r a n e
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SECTION III LU
CAPITAL ACCOUNT
Membe A r, a . n C d a a p n it y a l a d A d c i c ti o o u n n a t l . m A e m ca b p e i r ta i l n a a c c c c o o u r n d t a ( n " c C e a w pi i t t a h l t A he c c p o ro u v n i t s " i ) o s n h o al f l t b h e is m A a r i t n ic ta le in . ed for the Sole z LL
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The Capital Account of the members shall be
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EFTA01298086

(e) The amount of Company liabilities that are assumed by the members.
2. Decreases in Capital Account. The Capital Account of the members shall be
decreased by:
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(a) The amount of money distributed to the members by the Company pursuant
to any provision of this Agreement
(b) The fair market value of property distributed to the members by the
Company (net of liabilities secured by such distributed property that such members
are considered to assume or take subject to under Code Section 752).
(c)
Allocations to the members of Losses.
(d) Allocations to the members of deductions, expenses, Nonrecourse
Deductions and net losses allocated to it pursuant to this Agreement, and the
members' share of Company expenditures which are neither deductible nor properly
chargeable to Capital Accounts under Code Section 705(a)(2)(B) or are treated as
such expenditures under Treasury Regulation Section 1.704-1(b)(2XivXi),
"Nonrecourse Deductions" shall have the meaning set forth in Treasury Regulation F-
Section 1.704-2. z
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(e) The amount of any liabilities of the members that are assumed by the
Company.
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SECTION W
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ALLOCATIONS AND DISTRIBUTIONS.
A. apealions, For purposes of maintaining the Sole Member's Capital Account, all of the
Company's net profits, net losses, expenses and other items of income, gain, loss, and creditshall be
allocated to the Sole Member. All items of Company taxable income, gain, loss, deduction, and
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B. Distribt. Net cash flow shall be distributed in the following priority, P M . .
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2. Additional distributions, if any will be made to the Sole Member, in such T O
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C pr o o m vi p d a e n d 1 y . ' f s o r a A ss t t h e t t e h s e s w a t i e t l i r l s m fa b i c e n t a i d o ti i n o s n tr o i o b f f u a t t e l h l d e t i C h n e o c m a C p s o h a m n t y p o a a t n n h y d e ' s a S f d o t e e le r b t t s M h e e a m n C d b o e m o r t p h a a n e n d r y o a h b n a l y s i g s d a a t i t i s i o s s n o f s i c e , i d at t e h o d e r a z a )-1
members whose Interests have not been previously redeemed first, in discharge of their
respective capital interests; and then, in proportion to the Membership Units.
2. If the Company lacks sufficient assets to make the distributions described in the
foregoing paragraph, the Company will make distributions in proportion to the amount of
the respective capital interest of the Sole Member and any dissociated members whose
interests have not been previously redeemed.
SECTION V
MANAGEMENT OF BUSINESS
A. la General. The Company shall be manager-managed. Jeffrey Epstein shall be the -J
initial manager of the Company. The manager shall manage the business and affairs of the
Company and shall have full and complete authority, power and discretion to do all things
n th e e c e C s o sa m ry p a o n r y c , t o o n v m e a n k ie e n a t l l t o d e m c a is n i a o g n e s , r c e o g n a t r r d o i l n g an t d h o c s a e r r m y a o tt u e t r s th a e n d b u to si p n e e r s f s o . r a m ff a a i n r y s a a n n d d a p l r l o o p t e h r e ti r e a s c o ts f z F-
or activities customary or incident to the management of the Company's business. LLI
B. Voting of lyIembership Units. A Membership Unit is entitled to be voted only if it is 0
owned by a member and each such Membership Unit shall be entitled to one vote. Neither an
assignee nor a transferee may vote a Membership Unit unless such assignee or transferee is L z L
admitted as a member.
SECTION VI
EXCULPATION OF LIABILITY; INDEIVINIFICATIO
Sole Me A m . b E e x r _ sh c a ib ll a n li o Q t n be s i p lk e e rs b o i n li a t l y ly . li U ab n l l e e s fo s r o t t h h e e r a w ct i s s , e d p e r b o t v s i o d r e l d i a b b y il i l t a ie w s o o f r t e h x e p C re o s m sly p a a n s y su . med, the ( e )
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against expenses (including attorneys' fees), judgments, penalties, fines and amounts paid in U A
settlement actually and reasonably incurred by such person in connection with the action, R S
suit or proceeding, if the person acted in good faith, with the care an ordinarily prudent P U
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person in a like position would exercise under similar circumstances, and in a manner that
such person reasonably believed to be in the best interests of the Company and with respect
to a criminal action or proceeding, if such person had no reasonable cause to believe such
person's conduct was unlawful. cas
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2. To the extent that any manager, member, employee or agent of the Company has a
beat successful on the merits or otherwise in defense of an action, suit or proceeding or
in defense of any claim, issue or other matter in the action, suit or proceeding, such
person shall be indemnified against actual and reasonable expenses, including attorneys'
fees, incurred by such person in connection with the action, suit or proceeding and any
action, suit or proceeding brought to enforce the mandatory indemnification provided
herein.
3. Any indemnification permitted under this Section, unless ordered by a court,
shall be made by the Company only as authorized in the specific case upon a
determination that the indemnification is proper under the circumstances because the
person to be indenunfied has met the applicable standard of conduct and upon an
evaluation of the reasonableness of expenses and amounts paid in settlement. This
determination and evaluation shall be made by a majority vote of the members who are
not parties or threatened to be made parties to the action, suit or proceeding (except in the
event that there are no members other than the Sole Member, in which event the F-
determination and evaluation shall be made by the Sole Member, regardless of whether or
not Jeffrey Epstein is a party or threatened to be made a party to the action, suit or
proceeding).
SECTION VII
LIOUIDATION
The Company shall be dissolved, and shall terminate and wind up its affairs, upon the O
determination of the Sole Member to do so.
SECTION VIII
JVIISCELLANEOUS PROVISIONS
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B. Severability. The invalidity or unertforeeability of any particular provision of this D
Agreement shall not affect the other provisions hereof; and this Agreement shall be construed in all F E
respects as if such invalid or unenforceable provisions were omitted. O
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C. Amendment. This Agreement may be amended or revoked at any time, in writing, with A N
the consent of the Sole Member. No change or modification to this Agreement shall be valid unless S U
in writing and signed by the Sole Member. R
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WITN'ESS ETH:
By: SOUTHERN TRUST COMP , C., Sole Member
By:
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