                                 CODE OF VIRGINIA

REMEDIES FOR BREACH OF OPERATING AGREEMENT BY MEMBER OR MANAGER (§ 13.1-1023.1)

A. An operating agreement may provide that:

   1. A member or manager who fails to perform in accordance with, or to comply
   with terms and conditions of, the operating agreement shall be subject to
   specified penalties or specified consequences; and

   2. At the time or upon the happening of events specified in the operating
   agreement, a member or manager shall be subject to specified penalties or
   specified consequences.
   				The specified penalties or specified consequences may include and take the
   form of any penalty or consequence set forth in subsection D of &#xA7;
   13.1-1027.

B. In the articles of organization, in writing in an operating agreement or in
another writing, a member or manager may consent to or be subject to the
nonexclusive jurisdiction of the courts of, or arbitration in, a specified
jurisdiction, or the exclusive jurisdiction of the courts of the Commonwealth,
or the exclusivity of arbitration in a specified jurisdiction of the
Commonwealth, and to be served with legal process in a manner prescribed in the
articles of organization, an operating agreement, or other writing.

HISTORY: 2003, c. 340; 2004, c. 601.