Exhibit 4
LIMITED PARTNERSHIP AGREEMENT
OF
XXXXXXXXXXX INVESTMENTS LIMITED PARTNERSHIP, II
a Delaware limited partnership
TABLE OF CONTENTS
Page No.
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ARTICLE I
FORM AND INTERPRETATION ...................... -5-
Definitions ......................................................... -5-
Captions and Certain Terms .......................................... -5-
Severability ........................................................ -9-
Limitation of Grant ................................................. -9-
ARTICLE II
ORGANIZATION OF PARTNERSHIP .................... -9-
Formation, Name, Office and Registered Agent ........................ -9-
Purpose of Partnership .............................................. -9-
Term of Partnership ................................................. -10-
Authorized Acts ..................................................... -11-
Co-Ownership of Partnership Interests ............................... -12-
Representations and Warranties of the Limited Partners .............. -12-
ARTICLE III
PARTNERSHIP CAPITAL ........................ -14-
Capital Contributions ............................................... -14-
Capital Account ..................................................... -15-
Expenses Paid by Partners ........................................... -16-
Loans by Partners; Restrictions on Borrowing ........................ -16-
ARTICLE IV
PROFITS AND LOSSES AND TAXABLE INCOME AND TAXABLE LOSS ....... -16-
Allocations ......................................................... -16-
ARTICLE V
DISTRIBUTIONS, WITHDRAWALS AND LOANS ............... -18-
Distributions ....................................................... -18-
Limitation on Distributions to Partners ............................. -20-
ARTICLE VI
AUTHORITY, DUTIES, AND LIABILITIES OF PARTNERS ........... -20-
Duties of Managing General Partner .................................. -20-
Managing General Partner's Fees and Expenses ........................ -20-
Authority of Managing General Partner ............................... -21-
Special Limitation .................................................. -23-
Dealing with Affiliates ............................................. -23-
Indemnification of General Partner .................................. -23-
Liability of Limited Partners ....................................... -23-
Authority of Limited Partners and Non-Managing General Partners ..... -24-
ARTICLE VII
TRANSFER OF PARTNERSHIP INTERESTS ................. -24-
Limited Partners .................................................... -24-
General Partner ..................................................... -24-
Restriction on Transfer ............................................. -24-
Admission of Substitute Partner ..................................... -25-
Rights of Partner After Assignment and Substitution ................. -26-
Allocations and Distributions After Assignment ...................... -26-
ARTICLE VIII
RETIREMENT, WITHDRAWAL OR REMOVAL OF PARTNERS ........... -26-
Withdrawal of General Partner or Limited Partner .................... -26-
Retirement, Removal, or Withdrawal of Managing General Partner ...... -27-
Retirement of Limited Partner ....................................... -28-
Rights of Partner After Retirement, Removal, or Withdrawal .......... -28-
ARTICLE IX
DISSOLUTION ............................ -28-
Events of Dissolution ............................................... -28-
Winding-Up and Distributions ........................................ -28-
Distribution of Liquidation Proceeds and Assets and Allocation
of Gains and Losses .......................................... -29-
Limitation of Liability of Partners ................................. -30-
Waiver of Right of Partition of Assets .............................. -30-
ARTICLE X
ACCOUNTING YEAR, BOOKS, RECORDS, AND REPORTS ............ -30-
Books and Records ................................................... -30-
Reports ............................................................. -30-
Bank Accounts ....................................................... -31-
Tax Elections ....................................................... -31-
Accounting Method and Fiscal Year ................................... -31-
ARTICLE XI
GENERAL PROVISIONS ......................... -31-
Power of Attorney ................................................... -31-
Partnership Contracts ............................................... -32-
Conveyances ......................................................... -32-
Notices ............................................................. -32-
Consents .................................................................. -32-
Meetings .................................................................. -33-
Binding Effect; Counterparts .............................................. -33-
Choice of Law ............................................................. -34-
Complete Agreement; Modification .......................................... -34-
Evidence of Partnership Interests ......................................... -34-
Tax Matters Partner ....................................................... -34-
Gender and Number ......................................................... -34-
Title ..................................................................... -00-
XXXXXXXXXXX XXXXXXXXXXX LIMITED PARTNERSHIP II AGREEMENT
This Limited Partnership Agreement ("Agreement") is entered into, pursuant
to the provisions of the Delaware Uniform Limited Partnership Act, and shall be
retroactively effective as of the date of filing of the Certificate of Limited
Partnership with the Delaware Secretary of State, by S.B. Investment Management,
Inc. with Xxxxxx Xxxxxxxx as its president, whose address is 00 Xxxxxxxxxxx
Xxxxx, Xxxx, Xxxxxxxxxxx, XX 00000 (as the "Managing General Partner"). Xxxxx
Xxxxxxxxxxx, whose address is 0000 Xxxxx Xxxxxxxxx, Xxxxx X, Xxxxxxxx, Xxxxxxx
00000 is the only limited partner in the Partnership. This Agreement is on the
following terms and conditions:
ARTICLE I
FORM AND INTERPRETATION
1. Definitions. The following capitalized terms, as used in this Agreement
and in the attached exhibits, which constitute a part of this Agreement, have
the meanings ascribed to them below and include the plural as well as the
singular number:
"Act" means the Delaware law pertaining to Limited Partnerships, as
amended, or any subsequent Delaware law concerning partnerships that are enacted
in substitution for the Act.
"Affiliate" of a Partner means (1) another Partner of the Partnership; (2)
a legal or personal representative of any Partner; (3) the Partner's lineal
descendants and spouse (other than a spouse who is legally separated from the
Partner under a decree of divorce or separate maintenance); (4) a trustee of a
trust for the benefit of any Person referred to in clause (1), (2) or (3); (5) a
Person, other than an individual, of which 80% or more of the voting or equity
interests is owned directly or indirectly by a Partner and/or one or more of the
Persons referred to in clauses (1) through (4); (6) a Person owning 80% or more
of the voting or equity interests of a Partner that is not an individual; or (7)
a Person other than an individual, 80% or more of the voting or equity interests
of which is owned by the same Person that owns 80% or more of the voting or
equity interests of a Partner that is not an individual.
"Agreement" means this Limited Partnership Agreement as originally
executed and as subsequently amended or supplemented from time to time in
accordance with section 54.
"Assignment" means a sale, exchange, gift, pledge, transfer or disposition
of any kind whatsoever and, in the case of a Person that is not an individual,
it includes the sale, exchange, pledge, transfer or disposition of a majority of
either voting control or the equity interests in such Person.
"Bankruptcy" means taking advantage of any bankruptcy or insolvency act
(including the Bankruptcy Reform Act of 1978 or similar law, and also any
proceeding under state or local insolvency or debtor relief laws), or a final
adjudication of insolvency or an assignment of a major portion of a Person's
assets for the benefit of creditors.
"Capital Account" has the meaning set forth in section 12.
"Capita1 Contribution" means the total amount of cash, and net fair market
value of securities and other property contributed by a Partner to the equity of
the Partnership, or agreed to be contributed by a Partner to the equity of the
Partnership, pursuant to section 11(a), and reduced by any return of capital to
the Partner within the meaning of section 11(c). Any reference in this Agreement
to the Capital Contribution of either a Partner or an assignee of a Partner
shall include the Capital Contribution of any prior Partner to whose Partnership
Interest the then existing Partner or assignee succeeded.
"Cash Flow" means the excess of cash derived by the Partnership from all
sources, including from capital contributions, loans, sales of securities and
other activities, (but excluding cash derived from the winding-up and
liquidation of the Partnership pursuant to section 37) over the sum of all cash
disbursements, including repayments of loans from Partners, loans to Partners
for the Partnership, and distributions to Partners pursuant to section 16(a) or
(b) (but excluding disbursements pursuant to section 16(c), plus a reasonable
allowance for reserves for repairs, investments in Property (including
Marketable Securities), replacements, contingencies and anticipated obligations
(including debt service, capital improvements and replacements to the extent not
funded by reserves) as reasonably determined by the Managing General Partner.
Notwithstanding the preceding sentence, in determining the reasonable allowance
for reserves, the Managing General Partner shall reduce such allowance to the
extent necessary to ensure that annual distributions of Cash Flow to each
Partner will be in an amount at least equal to the annual income tax liability
(exclusive of income tax liability resulting from a transaction pursuant to
section 16(b) or (c)) of each such Partner (determined assuming that the maximum
possible income tax rate is applicable) resulting from the allocation to the
Partner of his share of the Partnership's Taxable Income and Taxable Loss. Cash
Flow is to be calculated separately for each Partner on the theory that each
Partner owns the assets of the Partnership contributed by such Person directly.
For this purpose, if a Partner has contributed Marketable Securities to the
Partnership, such Marketable Securities (including stock dividends thereon,
stock splits or other recapitalizations) shall be allocated to the contributing
Partner (or such Partner's assigns). In addition, Cash Flow shall be calculated
and distributed separately for each of the Class A Partnership Interest and the
Class B Partnership Interests and the assets of the Partnership allocated to
such interests.
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"Class A Partnership Interest" means an interest in the Partnership
represented by the Capital Account associated only with the Partnership's
ownership of those assets listed on Exhibit A-1 attached hereto and made a part
hereof (the "Class A Properties"), and the right to receive a percentage share
of the income, gain, loss, deduction, cash and other distributions and
liquidation proceeds associated with such property, all subject to and
interpreted in accordance with the terms of this Agreement. A Class A
Partnership Interest may be expressed in units with each unit representing
ownership of a one percent interest in the Class A Properties.
"Class B Partnership Interest" means an interest in the Partnership
represented by a partner's Capital Account relating to all assets of the
Partnership other than those assets listed on Exhibit A-1 attached hereto and
made apart hereof, (i.e., excluding the Capital Account relating to the Class A
Properties), and the right to receive his percentage share of the income, gain,
loss, deduction, cash and other distributions and liquidation proceeds of the
Partnership (other than those associated with Class A Partnership Interests),
all subject to and interpreted in accordance with the terms of this Agreement.
"Code" means the Internal Revenue Code of 1986, as amended, or any
subsequent federal law concerning income taxes that is enacted in substitution
for the Code.
"General Partner" means any Person admitted as a general partner in
accordance with this agreement.
"General Partnership Interest" means the Partnership Interest of a General
Partner, in his capacity as a General Partner.
"Limited Partner" means any Person admitted as a limited partner in
accordance with this Agreement.
"Limited Partnership Interest" means the Partnership Interest of a Limited
Partner, in the capacity as a Limited Partner.
"Majority in Interest" when used in regard to the degree of consent,
approval or agreement required among the Partners, means Partners whose
aggregate Percentage Interests constitute over 50% of the total aggregate
Percentage Interests then outstanding.
"Managing General Partner" means the Person designated in this Agreement
as the general partner responsible for management of the affairs of the
Partnership, including all voting rights with respect to, and control over,
Marketable Securities, and thereafter any Person which becomes a general partner
responsible for management of the affairs of the Partnership pursuant to this
Agreement, in the Person's capacity as a managing general partner of the
Partnership.
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"Marketable Securities" means securities, including stock, which are
traded on an established securities market, whether or not registered under the
Securities Act of 1933.
"Partner" means each Person which is a Managing General Partner or a
Limited Partner.
"Partnership" means the XXXXXXXXXXX INVESTMENTS LIMITED PARTNERSHIP II,
the limited partnership formed in accordance with the Act pursuant to this
Agreement.
"Partnership Interest" includes only a Partner's Capital Contribution and
right to receive his Percentage Interest and excludes Partnership Rights.
"Partnership Rights" excludes the Partnership Interest of a Partner, and
includes, in addition to other rights provided in this Agreement, the rights
provided to him by the Act except to the extent such rights are inconsistent
with the provisions of this Agreement.
"Percentage Interest" shall mean a partner's percentage share from time to
time of the Net Profits and Net Losses, taxable income or taxable loss, Cash
Receipts, cash and other distributions and liquidation proceeds of the capital
of the Partnership attributable to a particular class of Partnership Interests
all subject to and interpreted in accordance with the terms of this Agreement.
The Percentage Interest of partners for each class of Partnership Interests
shall be proportionate to the Capital Accounts of the partners in that class of
Partnership Interest at all times so that, for example, if a Partner's Capital
Account in one class is 100 and the aggregate of all Capital Accounts in the
same class of Partnership Interest is 1000, the partner's Percentage in that
class of the Partnership is 10%. Except as otherwise provided in this Agreement,
in the event of a change among the partners in the Percentage Interest in the
Partnership during the year, the Partnership shall use a closing-of-the-books
method with respect to such change or changes in Percentage Interest in
computing a partner's share of profits and losses, taxable income and taxable
losses, and entitlement to distributions during such year.
"Person" means any individual and any general or limited partnership,
corporation, estate, joint venture, trust, business trust, cooperative,
association or other organization.
"Profits and Losses" means the annual net income or loss of the
Partnership determined on a generally accepted accounting principles basis, as
disclosed on the annual financial statements of the Partnership, except that
Profits and Losses shall be computed separately for each of the Class A
Partnership Interests and Class B Partnership Interests. If the Partners have
elected for the Partnership to be excluded
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from the application of Subchapter K of Chapter 1 of the Code, the provisions
relating to Profits and Losses shall be of no effect during such period at the
Partnership level, but will be separately computed for each Partner.
"Property" means any real, personal, tangible or intangible property
contributed by a Partner to the equity of the Partnership or otherwise acquired
by the Partnership.
"Pro Rata" means in the proportion that the Percentage Interest of each
Partner bears to the total Percentage Interests of all the Partners.
"Retirement" means the death, Bankruptcy, adjudication of incompetency as
determined by a court of appropriate jurisdiction, dissolution and liquidation
or termination of existence, merger or consolidation (except as provided in
sections 33 and 34) of a Partner, or the sale, lease or other disposition of all
or substantially all the property of a Partner (except as provided in sections
33 and 34).
"Taxable Income or Taxable Loss" means the net income or loss of the
Partnership for federal income tax purposes, as determined at the close of the
Partnership's fiscal year by the accountants employed by the Partnership to
prepare its income tax returns. If the Partners have elected for the Partnership
to be excluded from the application of Subchapter K of Chapter 1 of the Code,
the provision shall be of no effect for federal income tax purposes during such
period, but will be separately computed for each Partner.
2. Captions and Certain Terms. The titles and captions preceding the text
of the articles and sections of this Agreement are solely for convenience of
reference and neither constitute a part of this Agreement nor affect its
meaning, interpretation, or effect. The words "hereby," "herein," "hereof,"
"hereto," "hereunder," and terms of similar import refer to this Agreement as a
whole and not to any particular article, section, subsection or other part of
this Agreement.
3. Severability. If any article, section or other provision of this
Agreement, or its application, is held to be invalid, illegal or unenforceable
in any respect or for any reason, the remainder of this Agreement and the
application of such article, section or other provision to a person or
circumstance with respect to which it is valid, legal and enforceable is not
affected.
4. Limitation of Grant. Nothing in this Agreement, whether express or
implied, is intended or may be construed to confer upon, or to grant to, any
creditor or any other Person (other than the Partners and their legal and
personal representatives, heirs, successors and permitted assignees) any right,
remedy or claim under or because of this Agreement or any covenant, condition or
stipulation of it.
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ARTICLE II
ORGANIZATION OF PARTNERSHIP
5. A. Formation, Name, Office and Registered Agent. The Partnership was
organized as of the effective date of this Agreement and the signatories to this
Agreement constitute the members of this Partnership under the Act as of such
date and as of the date hereof. The rights and obligations of the Partners are
determined by the Act, except as otherwise expressly provided in this Agreement.
The name of the Partnership is "XXXXXXXXXXX INVESTMENTS LIMITED PARTNERSHIP
II." The record keeping office of the Partnership and its principal place of
business are located at the residence of the Managing General Partner where the
Managing General Partner performs administrative services on behalf of the
Partnership. The Partnership does not have a principal business office. The
Managing General Partner may change the name of the Partnership or may designate
the location of its principal business office at any time and from time to time
by giving written notice of such change to each Partner. The registered agent
and registered office of the Partnership is The Corporation Trust Company, 0000
Xxxxxx Xxxxxx, Xxxxxxxxxx, XX 00000.
B. General and Limited Partners. S. B. Investment Management, Inc.
with Xxxxxx Xxxxxxxx as its President is the initial Managing General Partner of
the Partnership. The initial Limited Partner of the Partnership is Xxxxx
Xxxxxxxxxxx.
C. Certificate of Limited Partnership. In connection with the
execution of this Agreement, the Managing General Partner signed a certificate
of limited partnership, pursuant to the Act. The Managing General Partner shall
cause the certificate to be filed with the Delaware Secretary of State. The
certificate also has been amended to implement the change in General Partners.
The Managing General Partner shall amend the certificate when required under
this Agreement and shall execute the amended certificate as required by the Act.
6. Purpose of Partnership.
(a) Except as provided in 6(c) below, the purposes of the
Partnership are to:
(i) invest in, own, sell, acquire, manage and exercise the
voting rights associated with Marketable Securities,
(ii) after approval by a Majority in Interest, acquire, hold,
sell, own, improve, develop or lease other types of
property in addition to Marketable Securities, and
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(i) engage in any other lawful activity for profit approved
by an affirmative vote of a Majority in Interest.
(b) Notwithstanding Section 6(a), unless unanimously approved by the
Partners, the Partnership shall not engage in any activity(ies)
which would result, based upon opinion of tax counsel, in the
characterization of the Partnership as an investment company as that
term is used in Section 721(b) or any successor provision of the
Code.
(c) Subsequent to the date of commencement of existence of the
Partnership, the Partners may make the election set forth in Treas.
Reg. ss. 1.761-2 to have the Partnership excluded from the
application of Subchapter K of Chapter 1 of the Code until such time
as a Majority in Interest determine to have the Partnership engage
in an activity other than investing in Marketable Securities and
other intangible assets. Until such time as the Partnership engages
in other than investment activities, and if the aforementioned
election is made, it is the intention of the Partners that the
Partnership shall be only for investment purposes and shall not
actively conduct business. It is the intention of the Partners that
the Partnership shall have legal title to, and ownership of,
Marketable Securities so as to effectuate the co-ownership of the
Marketable Securities by the Partners. As is evidenced by various
provisions of this Agreement, each Partner reserves the right
separately to take or dispose of their shares or interests in the
Marketable Securities and the other assets contributed by such
Partner to the Partnership. Further, during the period Subchapter K
does not apply to the Partnership, this Agreement is to be
interpreted in a manner that will give effect to such election.
7. Term of Partnership. The term of the Partnership shall continue until
the earlier of (i) December 31, 2020, or (ii) the death or adjudication of
incompetency as determined by a court of appropriate jurisdiction of Xxxxx
Xxxxxxxxxxx, unless the Partnership is earlier dissolved and terminated under
this Agreement.
8. Authorized Acts. In furtherance of its purposes, but subject to every
other provision of this Agreement, the Partnership, through, and only through,
the actions of the Managing General Partner acting alone, is authorized to do
the following:
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(a) acquire by purchase, lease or otherwise, any real or personal,
tangible or intangible property that may be necessary, convenient or incidental
to the accomplishment of the purposes of the Partnership;
(b) construct, operate, maintain, finance, improve, own, sell,
convey, exchange, assign, mortgage or lease any property (or a part thereof) as
may be necessary, convenient or incidental to the accomplishment of the
purposes of the Partnership;
(c) borrow money and issue evidences of indebtedness in furtherance
of any purpose of the Partnership and secure the same by a mortgage, pledge,
security interest or other liens on the property, any part thereof, any interest
therein or on any improvements thereto;
(d) prepay, in whole or in part, refinance, increase, renew, modify
or extend any indebtedness of the Partnership and, in connection therewith,
extend, renew or modify any mortgage, pledge, security interest or other lien
affecting any property;
(e) invest and reinvest the assets of the Partnership in, and
purchase, acquire, hold, sell, transfer and exchange securities of all kinds,
including Marketable Securities;
(f) lend money to Partners;
(g) exercise the voting rights associated with property owned by the
Partnership; and
(h) enter into any activity and perform and carry out any contract
in connection with, or necessary or incidental to, the accomplishment of the
purposes of the Partnership.
9. Co-Ownership of Partnership Interests. Any consent required by a
Partner shall require the action or vote of each Person (or in such other manner
as such Persons have designated in writing to the Partnership) having an
interest in such Partnership Interest, with a majority approval needed for
consent. On the death of a co-owner of a Partnership Interest held in either
joint tenancy with right of survivorship or tenancy by the entirety, the
Partnership Interest is owned solely by the survivor as a Partner, and not as an
assignee. The Partnership need not (although it may) recognize the death of a
co-owner of a Partnership Interest until the Managing General Partner receives
notice of the death. A co-owner of a Partnership Interest may sever the tenancy
by giving to the Managing General Partner notice to that effect, and signed by
the co-owner requesting the severance in the case of a joint tenancy, and by
both co-owners in the case of a tenancy by the entirety. Upon receipt of the
notice and
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the certificate evidencing the Partnership Interest owned by the co-owners, the
Managing General Partner shall cause the Partnership Interest to be allocated as
directed by the co-owners and shall indicate on the Partnership records such
allocation. In absence of joint direction, the interests shall be allocated
between the owners as the severed ownership interests would be valued for
federal estate tax purposes.
10. Representations and Warranties of the Limited Partners. As a condition
to becoming a Limited Partner of the Partnership, each Limited Partner
represents, warrants, and covenants to each General Partner and the Partnership
as follows:
(a) He will not assign, sell, mortgage, pledge, or otherwise
transfer or encumber any of his rights under this Agreement except as expressly
permitted under this Agreement and applicable laws;
(b) He was granted full and unrestricted access to the Partnership's
business premises, offices and properties and its business, partnership and
financial books and records as he required, and was permitted to examine the
foregoing, to question the General Partner, and to make all other investigations
that he considered appropriate to determine or verify the business or condition
(financial or otherwise) of the Partnership and to consummate the transactions
contemplated by this Agreement;
(c) The Partnership furnished him all additional information
concerning the Partnership's business and affairs that he requested;
(d) He was permitted to ask questions of, and to receive answers
from, the General Partner concerning the terms and conditions of an investment
in a Limited Partnership Interest, and to obtain all additional information he
considered necessary to verify the accuracy of the information received by him
from the General Partner, and he understands the risks associated with an
investment in the Partnership and that such an investment is highly speculative;
(e) Because of his considerable knowledge and experience in
financial and business matters in general and securities investments in
particular, he is able to evaluate the merits, risks, and other factors bearing
on the suitability of a Limited Partnership Interest as an investment;
(f) His income and net worth are such that he is not now, and does
not contemplate being, required to dispose of any investment in the Partnership
to satisfy any existing or expected obligation, and he is otherwise fully able
to bear the economic risks of his proposed investment in the Partnership,
including the risk of losing all or any part of his investment in the
Partnership and the probable inability to sell, transfer, or pledge, or
otherwise dispose of an investment in the Partnership for an indefinite period;
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(g) He is acquiring a Limited Partnership Interest solely for his
own account, as principal, for investment purposes and not with a view to or for
resale in connection with any distribution or underwriting of any Partnership
Interests;
(h) He understands that the Limited Partnership Interest that he
will purchase has not been and will not be registered under either the
Securities Act of 1933 or any state securities law, that he must hold the
Limited Partnership Interest indefinitely unless the Partnership Interests are
subsequently registered under those laws or transferred in reliance on advice of
counsel satisfactory to the Partnership that registration under those laws is
not required, and that stop-transfer instructions will be noted in the
appropriate records of the Partnership;
(i) He understands that the document evidencing a Limited
Partnership Interest acquired by him will bear the following legend:
These securities have not been registered under either the Securities Act
of 1933 or any state securities law and were acquired pursuant to an
investment representation by the record owner. These securities are not
transferable absent either registration under the Act and every applicable
state securities law or advice of counsel satisfactory to the Partnership
that registration in not required. Additionally, these securities are
subject to certain transfer restrictions set forth in the Limited
Partnership Agreement of the Partnership. Reference may be made to the
Limited Partnership Agreement for the details of those restrictions.
(j) He understands that a legend substantially identical to the one
described above will be placed on every new document issued upon a transfer of a
Limited Partnership Interest;
(k) He shall not sell, transfer, pledge, or otherwise dispose of any
part of his Limited Partnership Interest, unless the Partnership Interests are
registered under the Securities Act of 1933 and under every applicable state
securities law or unless the Partnership is furnished with advice of counsel
satisfactory to it that registration under those laws is not required; and
(l) He understands that the Partnership does not file periodic
reports with the Securities and Exchange Commission pursuant to the Securities
Exchange Act of 1934.
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ARTICLE III
PARTNERSHIP CAPITAL
11. Capital Contributions.
(a) Upon executing this Agreement, each Partner shall make or has
made a Capital Contribution in the amount and of the type, and initially shall
have a Percentage Interest equal to the percentage, set forth opposite his name
on Exhibit A. Partners may make (but Limited Partners are not required to make)
additional Capital Contributions at such time and in such amount as they in
their sole discretion shall determine but only if the Managing General Partner
and a Majority in Interest consent to such additional Capital Contributions.
Upon the assignment of any Partnership Interest, the making of an additional
Capital Contribution or any return of a Capital Contribution, or any
substitution of a Partner, Exhibit A shall be amended to accurately reflect the
name, address, Capital Contribution and Percentage Interest of each Partner.
Each Parties will also be assigned either or both as Class A and Class B
Partnership Interest depending on the assets contributed by each Partner and as
they shall mutually agree at the time of contribution.
(b) Notwithstanding (a) above, no Capital Contributions shall be
made or permitted by any Partner which would result, directly or indirectly, in
the Partnership being treated as an investment company under section 721(b) of
the Code, and any such attempted Capital Contribution shall be void ab initio.
The Managing General Partner shall withhold its consent to the making of an
additional Capital Contribution, unless it has satisfied itself (by seeking
advice of legal counsel or otherwise) that the making of the additional Capital
Contribution will not result, directly or indirectly, in the Partnership being
treated as an investment company under section 721(b) of the Code.
(c) A Partner shall not receive from the Managing General Partner or
out of Partnership Property, and the Managing General Partner and the
Partnership shall not return to a Partner, any part of his Capital Contribution,
except as set forth in Articles V, VIII and IX of this Agreement and such
distribution is determined to be a return of a Partner's Capital Contribution,
and then only if all liabilities of the Partnership, except liabilities to the
Partners on account of their Capital Contributions, have been paid or there
remains property of the Partnership sufficient to pay them. The Partnership
shall not pay interest on Capital Contributions, and, a Partner may demand and
receive only cash in return for his Capital Contribution, except to the extent
provided for in Articles V and IX of this Agreement or unless the Liquidator (as
defined in section 37) decides to distribute Partnership property in kind upon
the dissolution, winding-up, and termination of the Partnership, or unless the
distribution of property to a Partner is unanimous1y approved by the Partners.
Each Partner, by signing this Agreement or a counterpart
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of it, consents to all distributions authorized by this Agreement and releases
all other Partners from all liability to both him and the Partnership for all
distributions made in accordance with this Agreement.
12. Capital Account
(a) The Managing General Partner shall establish and maintain a
Capital Account for each Partner in the Partnership's books of account. Capital
Accounts shall be maintained and adjusted in accordance with generally accepted
accounting principles. A Limited Partner shall not be obligated to restore a
deficit balance in its Capital Account, except to the extent required by the
Act. Consistent with these capital account maintenance rules, the Managing
General Partner shall credit to each Partner's Capital Account the amounts of
the Partner's Capital Contributions and any Profits allocated to the Partner.
The Managing General Partner shall charge to or deduct from each Partner's
Capital Account the amounts of all distributions (in cash or other property) or
the Partner and any Losses allocated to the Partner. If any interest in the
Partnership is transferred in accordance with the terms of this Agreement, the
transferee shall succeed to the Capital Account of the transferror to the extent
it relates to the transferred interest.
(b) The provisions of this section and the other provisions of this
Agreement pertaining to the maintenance of Capital Accounts are intended to
comply with Treasury Regulation Section 1.704-1(b) (or any successor provision
thereto), and shall be interpreted and applied in a manner consistent with such
Regulations. In the event that Managing General Partner determines that it is
prudent to modify the manner in which the Capital Accounts are computed in order
to comply with such Regulations, provided that it is not likely to have a
material effect on the amounts distributable to any Partner without such
Partner's consent and upon receipt of an opinion of tax counsel to the
Partnership concluding that such modification will be given effect for federal
income tax purposes, the Managing General Partner may make such modification.
(c) The Managing General Partner shall revalue the Partnership's
Property (based on its fair market value as of the moment immediately preceding
the relevant event) and shall adjust Capital Accounts to take into account any
resulting Profit or Loss (determined as if the Partnership sold all its Property
for cash equal to the Property's fair market value) upon the occurrence of
either of the following events: (1) the making by any Partner of any non-Pro
Rata additional Capital Contribution, (2) the partial or complete withdrawal of
a Partner's Partnership Interest, or (3) the admission of a Partner.
(d) For the purposes of determining Percentage Interests, making
allocations and distributions pursuant to Articles IV and V, and wherever else
relevant in this Agreement, multiple Capital Accounts shall be maintained for
each partner who
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owns more than one class of Partnership Interest. A combined Capital Account
shall also be maintained for each partner who has more than one class of
Partnership Interest. The combined Capital Account shall be relevant for
determining the total amount of distributions to a partner in the event of the
liquidation of the Partnership. In the event that a Partner with more than one
class of Partnership Interest has a positive combined Capital Account balance at
the time of the liquidation of the Partnership, but has a deficit in one of the
separate Capital Accounts, liquidating distributions shall be made only to the
extent of the net positive balance.
13. Expenses Paid by Partners. Any Partnership expense reasonably paid by
any Partner on behalf of the Partnership is an indebtedness of the Partnership
to the Partner and does not increase the Partner's Partnership Interest or
Percentage Interest. The Partnership shall reimburse the Partner as soon as
practicable and may pay interest on the indebtedness.
14. Loans by Partners; Restrictions on Borrowing. The Managing General
Partner may borrow money on behalf of the Partnership from any Partner in such
amounts and for such purposes as it considers necessary, convenient or
incidental to the accomplishment of the purposes of the Partnership. Each loan
to the Partnership by a Partner (excluding reimbursable expenses) shall be
evidenced by a promissory note or similar instrument of the Partnership, may be
secured by a lien on the Property, may bear interest at a rate determined by
agreement between such Partner and the Managing General Partner and may be
subject to such other terms and conditions as are agreed to by such Partner and
the Managing General Partner. The Partnership may prepay each loan from a
Partner in whole or in part, at any time and from time to time, without premium
or penalty. The Managing General Partner may not borrow money from persons other
than Partners or pledge Partnership assets without the express written consent
of the non-managing general partner.
ARTICLE IV
PROFITS AND LOSSES AND TAXABLE INCOME AND TAXABLE LOSS
15. Allocations.
(a) Allocation of Profits and Losses.
(i) Profits and Losses of the Partnership shall be determined
for each fiscal year of the Partnership in accordance with the cash method of
accounting, with such exceptions thereto as are set forth in this Agreement, and
otherwise in accordance with generally accepted accounting principles applied in
a consistent manner.
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(ii) Except as otherwise provided, the Partnership's Losses,
if any, arising in a fiscal year shall be allocated among the Partners as
follows:
(1) FIRST: To the extent of the aggregate positive
Capital Account balances of the Partners as of the end of the fiscal year, Pro
Rata to the Partners taking into account any changes in Partnership Percentage
Interests during the fiscal year.
(2) SECOND: Pro Rata, to the Managing General Partner.
(iii) Profits arising in a fiscal year shall be allocated
among the Partners as follows:
(1) FIRST: To the General Partner until Profits
allocated to the General Partner during the term of the Partnership pursuant to
this Section 15(a)(ii)(1) equal Losses allocated to the General Partner during
the term of the Partnership pursuant to Section 15(a)(ii)(2) then
(2) SECOND: To the Partners Pro Rata taking into account
any changes in Partnership Percentage Interests during the fiscal year.
(b) Allocation of Taxable Income and Taxable Loss.
(i) Except as otherwise provided in this section l5(b),
allocations of tax items among the Partners shall be consistent with
corresponding book (Profits and Losses) items (if any). For tax purposes,
Profits and Losses, or any item thereof, shall be appropriately adjusted to
reflect Taxable Income and Taxable Loss, or any item thereof, as determined
under the Code and shall be allocated among the Partners in such a manner as to
comply with the provisions of the Code and Regulations thereunder (including, if
necessary, the "minimum gain chargeback provisions" of the Regulations under
Section 704 of the Code). For example, any gain or loss recognized by the
Partnership with respect to property contributed to the Partnership by a Partner
shall be shared among the Partners so as to take account of the variation, if
any, between the basis of the property to the Partnership and its fair market
value at the time of contribution or revaluation, whichever is applicable, so as
to comply with the requirements of Section 704 of the Code. Thus, for example,
if a Partner contributes Property to the Partnership whose agreed fair market
value exceeds its adjusted basis in the hands of the contributing Partner
("built-in gain"), and there have been no events giving rise to a revaluation,
built-in gain with respect to such contributed Property shall first be allocated
to such contributing Partner when the Partnership recognizes gain upon a
disposition of such contributed Property, but not in an amount in excess of such
built-in gain; the remaining balance of such recognized gain, if any, shall be
allocated among the Partners as set forth herein. The allocation of built-in
gain to a contributing Partner shall not increase such Partner's Capital
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Account, because such gain was already taken into account when the built-in gain
property was contributed to the Partnership. A Partner who contributes property
other than cash shall provide the Managing General Partner with information
necessary to verify the contributing Partner's adjusted tax basis in the items
of property contributed by him to the Partnership.
(ii) Generally, except as provided in section l5(b)(i),
Taxable Income and Taxable Loss (and each such income and loss item) shall be
allocated Pro Rata among the Partners. In the event, however, that non-Pro Rata
distributions of property are made to a Partner or the net proceeds from the
sale of property are distributed non-Pro Rata to a Partner, Taxable Income and
Taxable Loss derived from such distributions or sales shall be allocated 100% to
such Partner, subject only to such modifications as are necessary to comply with
Section 704 of the Code. In addition, no allocations of Taxable Loss shall be
made to a Limited Partner that would create a deficit balance in the Limited
Partner's Capital Account.
ARTICLE V
DISTRIBUTIONS, WITHDRAWALS AND LOANS
16. Distributions.
(a) Cash Flow Distributions. Cash Flow is to be distributed
periodically as the Managing General Partner shall determine.
(b) Partial or Complete Withdrawal by a Partner From the
Partnership.
(i) In the event of a partial or complete withdrawal of a
Partner from the Partnership pursuant to Article VIII, the Managing General
Partner shall, as promptly as is reasonably possible, distribute to the Partner
any assets then owned by the Partnership that were previously contributed by
such Partner to the Partnership but this distribution shall be limited to the
extent it would cause the Capital Account of such Partner to be negative. If the
Partner has a positive Capital Account balance, then the Partnership shall
distribute to the Partner his Pro Rata share of the Marketable Securities, cash
and other readily divisible assets of the Partnership. The withdrawing Partner
shall also be entitled to receive cash equal in value to his Pro Rata share of
the fair market value (as reasonably determined by the Managing General Partner)
of any non-readily divisible assets owned by the Partnership. The Managing
General Partner shall, as promptly as possible, distribute this additional
amount of cash, if any, to the withdrawing Partner. Cash distributions to the
withdrawing Partner shall be reduced by such Partner's Pro Rata share of the
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liabilities of the Partnership and by any expenses incurred by the Partnership
with respect to the withdrawal of the Partner.
(ii) A Partner may request that all or a portion of the
Marketable Securities subject to the requested withdrawal be sold by the
Partnership and the net proceeds (after selling and other expenses) distributed
as directed by him. In the event that the Managing General Partner is unable or
unwilling to sell these Marketable Securities, it shall distribute them to the
Partner, unless it is notified by the Partner to cancel the withdrawal.
(iii) The Managing General Partner shall not be required to
distribute to the requesting Partner any assets that the Partnership is legally
restricted or prohibited from distributing to the Partner, unless steps can be
taken to remove the restriction or prohibition; in which case the requesting
Partner shall be charged with the expense of removing such restriction or
prohibition. Any distribution hereunder shall also be subject to the limitations
set forth in sections 11(c) and 17, respectively.
(c) Liquidating Distributions. The net proceeds from liquidation of
the Partnership's assets pursuant to its dissolution, winding-up, and
termination shall be distributed, and all Profits and Losses resulting from the
liquidation of the Partnership Property shall be allocated, among the Partners
in the proportions and orders of priority specified in this section 16(c).
(i) The Liquidator shall distribute the net proceeds from
liquidation of the Partnership's assets as follows:
(1) FIRST: To pay all the liabilities of the Partnership
that are then due and payable, except for both Capital Contributions of Partners
and liabilities to the Partners, in the order of priority required by Delaware
law; then
(2) SECOND: To establish any reasonable reserve that the
Liquidator may determine is required for unpaid, future, or contingent
liabilities or obligations of the Partnership; then
(3) THIRD: To pay all liabilities of the Partnership to
the Partners; Pro Rata according to the amounts of their respective liabilities;
then
(4) FOURTH: To the Partners to the extent of any
positive balances in their Capital Accounts, Pro Rata according to the amounts
of their respective positive balances; then
(5) FIFTH: Any remaining net proceeds shall be
distributed Pro Rata among the Partners.
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(ii) Any Profits and Losses and Taxable Income and Taxable
Loss resulting from the disposition of the Partnership's assets in the process
of liquidation shall be allocated among the Partners in the manner provided in
section l5. Any Property distributed in kind in the liquidation shall be valued
and treated as if the Property were sold and the cash proceeds were distributed.
The Profits and Losses arising from the constructive sale of the Property
described in the preceding sentence shall be allocated among the Partners in the
manner provided in section 15.
17. Limitation on Distributions to Partners. A Partner may receive
distributions from the Partnership only to the extent the Partnership's total
assets exceed its total liabilities, other than liabilities to the Partners on
account of their Capital Contributions.
ARTICLE VI
AUTHORITY, DUTIES, AND LIABILITIES OF PARTNERS
18. Duties of Managing General Partner. The Managing General Partner, and
no other Partners, shall manage the affairs of the Partnership, shall apply
himself diligently for the Partnership, and shall devote to the Partnership such
time as is necessary and appropriate to manage the business of the Partnership.
The Managing General Partner is not required to devote all its business time to
the Partnership, and it may engage in other business ventures and employment,
including those in competition with the Partnership. In the performance of its
duties, the Managing General Partner may hire employees and agents of the
Partnership and generally shall supervise and direct all the daily operations of
the Partnership.
19. Managing General Partner's Fees and Expenses.
(a) Fees to Managing General Partner. In consideration for
performing services described herein, the Managing General Partner may be paid a
fee as agreed to by a Majority in Interest. Such fees shall be deemed earned
when the services have been performed and, regardless of when paid, shall be
non-executory from the date earned and shall be the obligation of the
Partnership from and after that date.
(b) Expenses. Except as otherwise provided herein, the Partnership
shall pay all expenses of the Partnership (which expenses may be either billed
directly to the Partnership or reimbursed to the Managing General Partner) which
may include, but are not limited to: (i) all costs of borrowed money, taxes and
assessments on the Property and other taxes applicable to the Partnership; (ii)
all costs for goods and materials, whether purchased by the Partnership directly
or by the Managing General Partner on behalf of the Partnership; (iii) legal,
audit, accounting,
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brokerage and other professional fees; (iv) fees and expenses paid to
independent contractors, mortgage bankers, brokers, insurance brokers and other
agents; (v) expenses of organizing, revising, amending, converting, modifying or
terminating the Partnership; (vi) expenses in connection with distributions made
by the Partnership to, and communications and bookkeeping work necessary in
maintaining relations with, Partners; (vii) expenses in connection with
preparing and mailing reports to Partners; (viii) costs of any accounting,
statistical or bookkeeping equipment necessary for the maintenance of the books
and records of the Partnership; (ix) the cost of preparation and dissemination
of informational material and documentation relating to the Partnership; (x)
except with respect to litigation solely among the Partners as such, costs
incurred in connection with any litigation in which the Partnership is involved,
as well as in the examination, investigation or other proceedings, conducted
against the Partnership by any regulatory agency, including legal and accounting
fees incurred in connection therewith; (xi) costs of any computer services or
equipment or services of personnel used for or by the Partnership; and (xii)
expenses of professionals employed by the Partnership in connection with any of
the foregoing, including attorneys, accountants and appraisers.
20. Authority of Managing General Partner. Except as otherwise provided
herein, the Managing General Partner may bind the Partnership to do all acts
that are necessary, appropriate, or incidental to the accomplishment of the
purposes of the Partnership. Any person dealing with the Partnership or the
Managing General Partner may rely on a certificate signed by the Managing
General Partner as to the identity of any Partner, the existence or absence of
any fact or condition that is necessary to permit action by either the
Partnership or the Managing General Partner or germane in any other way to the
affairs of the Partnership, and the persons who are authorized to execute and
deliver any documents or instruments of or on behalf of the Partnership. Without
limiting the generality of the foregoing, the Managing General Partner is
specifically authorized to do the following:
(a) to negotiate and enter into leases and agreements with land or
building owners or other Persons, and to incur obligations for, and on behalf
of, the Partnership in connection with Partnership business;
(b) to borrow money on behalf of the Partnership and, as security
therefore, to encumber the Property;
(c) to prepay, in whole or in part, refinance, increase, modify or
extend any obligation affecting the Property;
(d) to sell, exchange, convey and lease the Property;
(e) to employ from time to time, at the expense of the Partnership,
other Persons required for the operation and management of the
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Partnership business, including accountants, attorneys and others, who may be
Partners, on such terms and for such compensation as the Managing General
Partner determines to be reasonable and this may include Persons which are
Affiliates;
(f) to pay all attorney's and accountant's fees and other costs
incurred in connection with the formation of the Partnership business and the
completion of all steps necessary or advisable for the Partnership to comply
with applicable laws;
(g) to assume the responsibilities imposed on the Managing General
Partner by the Act;
(h) to compromise, arbitrate or otherwise adjust claims in favor of
or against the Partnership and to carry such insurance as the Managing General
Partner considers advisable;
(i) to exercise the voting rights associated with the securities and
other Property owned by the Partnership;
(j) to commence or defend litigation with respect to the Partnership
or any assets of the Partnership as the Managing General Partner considers
advisable, at the expense of the Partnership;
(k) to make, execute, acknowledge and deliver documents of transfer
and conveyance and any other instruments that may be necessary or appropriate to
carry out its powers; and
(l) to do all such acts and take all such proceedings and execute
all such rights and privileges, although not specifically mentioned herein, as
the Managing General Partner considers necessary to conduct the business of the
Partnership and to carry out the purposes of the Partnership.
Notwithstanding the foregoing, the Managing General Partner shall
not take any of the fo11owing actions without the consent of a Majority in
Interest:
(1) assign all or any part of the property for the
benefit of its creditors or confess a judgment against the Partnership;
(2) take any action in contravention of the Act, the
certificate of limited partnership or this Agreement;
(3) sell, lease, transfer, assign, pledge or encumber
the property of the Partnership (except with respect to transactions to which
section 32 or section 37 applies);
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(4) loan an amount of money in excess of $100,000 to a
Partner; or
(5) admit a Person as a General Partner of the
Partnership.
21. Special Limitation. During the period the Partners have determined
that the Partnership will only be availed of only for investment purposes, which
shall be the period, if any, contemplated by Section 6(c), the Managing General
Partner may not purchase, sell, or exchange Marketable Securities or assets that
pertain to a Class B Partnership Interest or other security without the consent
of the Partners to whom the Marketable Securities are deemed owned or allocated
for federal income tax purposes, but the Managing General Partner shall have
voting rights and all other aspects of management and control over such
Marketable Securities and assets to which a Class B Partnership Interest
pertains.
22. Dealing with Affiliates. The Managing General Partner may employ and
enter into contracts and other arrangements with any Person, including an
Affiliate, and may obligate the Partnership to pay reasonable compensation for
services rendered by such Persons on terms that, in the judgment of the Managing
General Partner, are not less favorable to the Partnership than would be
available from an unrelated party.
23. Indemnification of Managing General Partner. The Managing General
Partner need not secure the performance of its duties by bond or otherwise. A
General Partner is not liable, responsible, or accountable in damages or
otherwise to any Partner or to the Partnership for any act taken or omission
made in good faith on behalf of the Partnership and in a manner that such
General Partner reasonably believes to be within the scope of the authority
granted to it by this Agreement and in the best interest of the Partnership,
except for gross negligence or willful misconduct. Any loss, expense (including
attorneys' fees) or damage incurred by a General Partner by reason of any act or
omission by it in good faith on behalf of the Partnership and in a manner that
it reasonably believes to be within the scope of the authority granted to it by
this Agreement and in the best interest of the Partnership (but not, in any
event, any loss, expense or damage incurred by a General Partner by reason of
gross negligence or willful misconduct) shall be paid to the indemnified General
Partner from the Partnership's assets, to the extent available.
24. Liability of Limited Partners. The liability of each Limited Partner
is limited to its Capital Contributions. Except as provided by the Act, a
Limited Partner is not required to contribute money to, or for the liabilities
of the Partnership, and is not personally liable for any loss, liability or
other obligations of the Partnership.
25. Authority of Limited Partners and Non-Managing General Partners. The
Limited Partners shall not participate in the management of, or have any control
over,
-24-
the business or policies of the Partnership, nor any control over Marketable
Securities, except as required by the Act or permitted by section 20, and the
Limited Partners shall not transact any business in the name of the Partnership.
Notwithstanding the foregoing, the Partners may make the election set forth in
Treas. Reg. ss. 1.761-2 to have the Partnership excluded from the provisions of
Subchapter K of Chapter 1 of the Code. In the event a Partner ceases (whether
through removal, death, or resignation) to serve as Managing General Partner, a
Majority in Interest of the Partners shall appoint another Partner to serve as
the Managing General Partner.
ARTICLE VII
TRANSFER OF PARTNERSHIP INTERESTS
26. Limited Partners. A Limited Partner shall not pledge, encumber or
hypothecate his interest in the Partnership without the consent of the Managing
Partner. Otherwise, subject to sections 28 and 29, and only if the
Managing General Partner consents, a Limited Partner may make an Assignment of a
Limited Partnership Interest. However, an Assignment does not relieve the
Limited Partner of his obligations and liabilities under this Agreement, or
constitute the assignee a Limited Partner, or confer on the assignee any
Partnership Rights. An assignee of a Limited Partner's Partnership Interest may
be admitted and substituted as a Limited Partner and acquire Partnership Rights
only upon the satisfactory completion of the requirements specified in section
29. The failure or refusal of the Managing General Partner to consent to the
admission of an assignee as a Limited Partner does not affect the right of the
assignee to the Partnership Interest of his predecessor in interest.
27. General Partner. Subject to section 28, a General Partner may make an
Assignment, directly or indirectly, of all or any part of its Partnership
Interest. However, an Assignment does not relieve such General Partner of its
obligations and liabilities under this Agreement, or constitute the assignee a
General Partner, or confer on the assignee any Partnership Rights. Subject to
section 28, and only if a Majority in Interest consents, a General Partner may
make an Assignment of both its Partnership Interest and its Partnership Rights
if the assignee assumes in writing all such General Partner's obligations and
liabilities under this Agreement and if all the applicable requirements of
section 29 are satisfied. Upon compliance with the immediately preceding
sentence, an assignee of such General Partner has all the rights and powers
granted to such General Partner under this Agreement and has all the obligations
and liabilities of such General Partner under this Agreement.
28. Restriction on Transfer. Notwithstanding any other provision of this
Agreement, an assignment of a Partnership Interest shall not be made, and
consent thereto shall be withheld:
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(a) Unless the Managing General Partner has satisfied itself (by
seeking advice of legal counsel or otherwise, with any resulting Partnership
expense to be reimbursed by the assignor) that the assignment will not have any
significant adverse tax effect upon the Partnership or the other Partners;
(b) Unless the Managing General Partner has satisfied itself (by
advice of legal counsel, with any resulting Partnership expense to be reimbursed
by the assignor) that the proposed assignment may be made without registration
under any applicable securities law; and it will not violate any applicable
securities law (including investor suitability standards);
(c) If the Assignment is sought to be made to:
(i) a minor or incompetent, except if made by will or
intestate succession, or
(ii) to a Person which is not an Affiliate.
29. Admission of Substitute Partner. Subject to the other provisions of
this Agreement, an assignee of a Partnership Interest may be admitted as a
Partner and granted Partnership Rights only if:
(a) the Assignment is made pursuant to a written instrument in a
form satisfactory to the Managing General Partner and specifies the intention of
the assignor that the assignee be substituted as a Partner;
(b) the Managing General Partner consents to the admission by
executing two counterparts of this Agreement that evidences the Partnership
Rights of the assignee, and if the assignee is to be admitted as a Partner a
Majority in Interest consent to the admission;
(c) the assignee accepts, signs and agrees to be bound by this
Agreement, by executing two counterparts of this Agreement, including an amended
Exhibit A, and such other documents or instruments as the Managing General
Partner requires to effect the admission of the assignee as a Partner;
(d) the assignee provides the Managing General Partner with evidence
satisfactory to it of the assignee's authority to become a Partner under the
terms of this Agreement;
(e) the assignee pays all filing, publication and other costs
(including reasonable attorneys' fees) incurred by either the Partnership or the
Managing General Partner in connection with the admission and substitution of
the assignee as a Partner.
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Notwithstanding an assignee's satisfaction of any or all of the
conditions specified above, the Managing General Partner, in its absolute
discretion, may refuse to consent to the assignee's admission as a Partner, in
which event the assignee will not obtain any Partnership Rights, but will retain
only the rights of an assignee under sections 26 or 27.
30. Rights of Partner After Assignment and Substitution. Upon the
Assignment of all his Partnership Interest, and the admission of a substitute
partner, a Partner shall cease to be a Partner and to have any Partnership
Rights.
31. Allocations and Distributions After Assignment. For the purposes of
allocations of Profits and Losses, Taxable Income or Taxable Loss, and
distributions, an Assignment of a Partnership Interest is effective as to the
Partnership, and shall be reflected in the records of the Partnership, as of the
date that the Managing Genera1 Partner receives written notice of the
Assignment. The Taxable Income or Taxable Loss, Profits and Losses and cash and
other distributions in respect of the assigned Partnership Interest with respect
to the fiscal year in which the Assignment of the Partnership Interest occurs
shall be divided between the assignor and the assignee according to the method
provided to the Managing General Partner by the assignor and the assignee, so
long as such method is permitted under the Code and does not adversely affect
the other Partners or the Partnership from a tax or economic perspective. The
method of allocation shall be provided to the Managing General Partner in the
written notice of the Assignment. Any additional costs for computing the
allocations hereunder shall be paid by the assignor or assignee, as the case may
be. The written notice referred to above shall also contain information as to
whether the assignor or assignee shall be responsible for the payment of such
additional cost, if any.
ARTICLE VIII
RETIREMENT, WITHDRAWAL, OR REMOVAL OF PARTNERS
32. Withdrawal of General Partner or Limited Partner.
(a) A Limited Partner may, at any time, withdraw all or part of his
Partnership Interest from the Partnership by providing written notice thereof to
the Managing General Partner. Immediately after the receipt of such written
notice from a Partner, the Managing General Partner shall make the appropriate
distributions to the Partner in partial or complete redemption of his
Partnership Interest as set forth in section 16(b).
(b) A partial withdrawal by a Partner shall be made in increments of
one-tenth (1/10th) of one percent (1%) of a Percentage Interest. The written
notice of withdrawal from a Partner to the Managing General Partner must
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state whether the withdrawal is a partial or complete withdrawal and, if a
partial withdrawal, must state the Percentage Interest that is being withdrawn.
A Partner shall not make a partial withdrawal that will result in his remaining
Percentage Interest becoming less than one-tenth (1/10th) of one percent (1%)
immediately after the withdrawal.
(c) The Managing General Partner agrees that it will fully cooperate
to the extent permitted by law to accomplish a withdrawal requested by a Partner
hereunder. It also agrees that it will not take any action that will obstruct or
render impossible the application of this section 32 (such as to pledge the
Partnership's Marketable Securities as collateral to creditors of the
Partnership), unless such action is essential to accomplish the purposes of the
Partnership.
(d) The partial withdrawal of a Limited Partner does not dissolve or
terminate the Partnership unless there is only one Partner then remaining. The
remaining Partners shall amend this Agreement to reflect the partia1 or complete
withdrawal of the Partner from the Partnership, if and to the extent necessary.
(e) Upon the giving of the notice of withdrawal pursuant to
Paragraph (a), and upon the dissolution of the Partnership, the voting rights
with respect to any Marketable Securities allocable to the Percentage Interest
being withdrawn shall be vested in the withdrawing Partner or Partners, and the
Partnership shall have no voting rights with respect to such stock.
(f) The complete withdrawal of all the Limited Partners shall
constitute a dissolution of the Partnership pursuant to Article IX.
33. Retirement, Removal, or Withdrawal of Managing General Partner. The
Managing General Partner may withdraw any part of its General Partnership
Interest without the consent of a Majority in Interest. The Retirement, removal,
or withdrawal of the Managing General Partner shall dissolve the Partnership
only if there is no successor General Partner. Notwithstanding the foregoing or
anything else in this Agreement to the contrary, a merger, consolidation, or
reorganization of a Managing General Partner who is not a natural person, or a
sale of all or substantially all its assets that includes its Partnership
Interest, is not a Retirement or withdrawal of such Managing General Partner if
the resulting, surviving or acquiring Person is an Affiliate and becomes
substituted as the Managing General Partner of the Partnership. The resulting,
surviving or acquiring Person is substituted as the Managing General Partner
without further act if it gives notice of the substitution to the Partners
before the effective date of the merger, consolidation, reorganization or sale.
Each Partner consents to the admission and substitution of such substitute
Managing General Partner pursuant to this section 33, and no further consent or
approval of any Partner is required.
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34. Retirement of Limited Partner. The Retirement of a Limited Partner
does not dissolve or terminate the Partnership except as provided in section
36(g), but the legal or personal representatives, heirs, successors, assignees,
or stockholders of a Retired Limited Partner, subject to section 26, shall
succeed to the Partnership Interests of the Retired Limited Partner and may make
an Assignment of the Partnership Interests within the limitations set forth in
this Agreement.
35. Rights of Partner After Retirement, Removal, or Withdrawal. A Partner
ceases to have any Partnership Rights upon his Retirement, removal, or complete
withdrawal from the Partnership. However, until the appropriate distributions,
if any, are made to a Retired, removed, or withdrawn Partner for his Partnership
Interest, the Retired, removed, or withdrawn Partner is entitled to receive the
allocations of Profits and Losses, Taxable Income or Taxable Loss and all
distributions referred to in section 16 applicable to his Partnership Interest.
ARTICLE IX
DISSOLUTION
36. Events of Dissolution. The Partnership shall be dissolved, and unless
reconstituted shall be terminated, upon:
(a) the expiration of its term;
(b) the vote of a Majority in Interest to dissolve the Partnership;
(c) the Partnership being adjudicated insolvent or bankrupt;
(d) the Retirement, removal, or withdrawal of the Managing General
Partner;
(e) the death of Xxxxx Xxxxxxxxxxx; or
(f) the sale of all or substantially all of the Partnership's
Property.
(g) the complete withdrawal of the Limited Partners.
37. Winding-Up and Distributions. Upon the dissolution of the Partnership
pursuant to section 36, and unless the Partnership is reconstituted, the
winding-up of the Partnership's business and the liquidation and distribution of
Partnership assets must be carried out with due diligence and in a timely
manner, and consistent with both the requirements of applicable law and the
following provisions of this section:
-29-
(a) The Managing General Partner shall be responsible for taking all
actions relating to the winding-up, liquidation, and distribution of assets of
the Partnership, unless its Retirement, removal, or withdrawal causes the
dissolution, in which case the fiscal agent, liquidator, or receiver appointed
(without judicial action) by a Majority in Interest shall be so responsible. The
Managing General Partner, or the appointed fiscal agent, liquidator, or
receiver, is referred to in this Agreement as the "Liquidator." A Limited
Partner can be appointed to be the Liquidator. The Liquidator shall file all
certificates or notices of the dissolution of the Partnership as required by
law. Upon the complete liquidation and distribution of the Partnership assets,
the Partnership shall terminate, and the Liquidator shall execute, acknowledge,
and cause to be filed all certificates and notices required by law to terminate
the Partnership.
(b) The Liquidator shall proceed without unnecessary delay to sell
and otherwise liquidate the Partnership's assets. Unless directed otherwise by a
Majority in Interest, all Marketable Securities, cash and other readily
divisible or fungible assets of the Partnership shall be distributed directly to
the Partners in the manner set forth in section 16(c)(i). The Liquidator shall
promptly sell the other assets of the Partnership unless it determines that an
immediate sale of part or all of such assets would cause undue loss to the
Partners. In such case, the Liquidator, to avoid such loss, may defer the
liquidation of the Partnership assets for a reasonable time, except for those
liquidations that are necessary to satisfy the debts and liabilities of the
Partnership to persons and parties other than the Partners. The Liquidator shall
distribute the proceeds from the liquidation of the Partnership's assets as
provided in section 16(c).
(c) Upon the dissolution of the Partnership pursuant to section 36,
and unless the Partnership is reconstituted, the Liquidator shall cause the
accountants for the Partnership to prepare within ninety (90) days after the
occurrence of the event of dissolution, and immediately thereafter shall furnish
to each Partner, a statement setting forth the assets and liabilities of the
Partnership as of the date of its dissolution. The Liquidator, promptly
following the complete liquidation and distribution of the Partnership's assets,
shall cause the Partnership's accountants to prepare, and the Liquidator shall
furnish to each person who is a Partner immediately before the dissolution, a
statement showing the manner in which the Partnership assets were liquidated and
distributed.
38. Distribution of Liquidation Proceeds and Assets and Allocation of
Gains and Losses. Subject to the last sentence of 12(d), the net proceeds from
liquidation of the Partnership's assets and the unliquidated Property of the
Partnership shall be distributed, and all Profits and Losses resulting from the
liquidation of the Partnership shall be allocated, among the Partners in the
proportions and orders of priority specified in section 16(c).
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39. Limitation of Liability of Partners. Upon the dissolution of the
Partnership and the distribution of the net liquidation proceeds pursuant to
section 36 and section 16(c), each Partner shall look solely to the assets of
the Partnership for the payment of his unreturned Capital Contributions, and if
the Partnership's assets remaining after the payment or discharge of the debts
and liabilities of the Partnership are insufficient to pay the full amount of
the unreturned Capital Contributions of each Partner, the Partner shall have no
recourse or claim against any Partner or the Partnership with respect to its
unreturned Capital Contributions, except for claims for fraud, gross negligence,
or breach of fiduciary duty.
40. Waiver of Right of Partition of Assets. Each Partner, and for his
heirs, successors, and assigns, waives his right to the partition of the assets
of the Partnership upon the dissolution and liquidation of the Partnership.
ARTICLE X
ACCOUNTING YEAR, BOOKS, RECORDS, AND REPORTS
41. Books and Records. In accordance with the Act, the Managing General
Partner shall maintain at the principal office of the Partnership a complete and
accurate set of books of records and accounts, in which it shall make full and
complete entries of all dealings or transactions relating to the Partnership's
business and where it shall keep all supporting documentation of transactions
with respect to the conduct of the Partnership's business. The Managing General
Partner may delegate responsibility to those persons as a Majority in Interest
and agree to compile and maintain all required information and prepare all
required materials provided for in this Agreement. Each Partner or his duly
authorized representative, upon five days' advance notice to the Managing
General Partner, may examine during normal business hours the books of the
Partnership and all other records and information concerning the operation of
the Partnership.
42. Reports. If requested by a Partner at least 30 days prior to the end
of a quarter, within 60 days after the end of each fiscal quarter in each fiscal
year of the Partnership, the Managing General Partner shall cause to be prepared
and sent to each Partner a balance sheet, income statement and cash flow
statement of the Partnership for and as of the end of that fiscal quarter, in
each case unaudited but accompanied by a report of the activities of the
Partnership for that quarter. Within 90 days after the end of each fiscal year
of the Partnership, the Managing General Partner shall cause to be prepared and
sent to each Partner a financial report consisting of (a) a balance sheet as of
the end of the fiscal year; (b) statements of income, partner's equity, and
changes in financial position for the fiscal year; (c) if requested by a
Partner, the opinion of the Partnership's certified public accountant concerning
the foregoing financial statements; (d) a summary of the Partnership's
activities for the fiscal year;
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(e) a statement showing the distributions to each Partner during the fiscal year
and identifying any distributions which constitute a return of Capital
Contribution; and (f) a statement showing the amount of Taxable Income or
Taxable Loss, and listing each item of income, gain, loss, deduction, or credit
allocated or charged against the Partner for federal and state income tax
purposes.
43. Bank Accounts. The Managing General Partner shall maintain the bank
accounts of the Partnership in such financial institutions as the Managing
General Partner considers appropriate. The Managing General Partner shall make
or permit withdrawals from the Partnership's bank accounts on the signature of
the Managing General Partner.
44. Tax Elections. If the Partnership has not made the election set froth
in Treas. Reg. ss. 1.761-2, or if Subchapter K of Chapter 1 of the Code applies
to the Partnership, the Partnership shall file an election under Section 754 of
the Code, relating to the optional adjustment to the basis of partnership
property, at the first time it is permitted to do so after the beginning of the
term of this Partnership. The Managing General Partner shall make or waive, at
its discretion, all other tax elections required or permitted to be made by the
Partnership under the Code.
45. Accounting Method and Fiscal Year. The Managing General Partner shall
maintain the Partnership records and books of accounts in accordance with the
cash method of accounting, with such modifications as are set forth in this
Agreement, and otherwise in accordance with genera11y accepted accounting
principles consistently applied. The fiscal year of the Partnership is the
calendar year.
ARTICLE XI
GENERAL PROVISIONS
46. Power of Attorney. Each Limited Partner (including each substitute
Limited Partner), by executing a counterpart of this Agreement, irrevocably
constitutes and appoints, with full power of substitution, the General Partner
as his true and lawful attorney-in-fact, with full power and authority in his
name, place and stead to make, execute, acknowledge, deliver, swear to, publish,
record and file:
(a) any certificate or other instrument that may be required to be
fi1ed, published or recorded by the Partnership under the Act or any other law
of Delaware or that the Managing Genera1 Partner considers advisable to file,
publish or record;
(b) all documents (including schedules and amendments to this
Agreement) that may be required to effect the continuation or reinstatement of
the
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Partnership, admit an additional or substitute Partner (other than any approval
required of Limited Partners), reduce the Capital Contributions of a Partner, or
dissolve and terminate the Partnership; and
(c) all amendments to this Agreement adopted in accordance with
section 54.
The foregoing power of attorney is coupled with an interest, resulting from each
Limited Partner's reliance on the power of the attorney-in-fact to act as
contemplated by this Agreement for the purposes described in this section 46.
The foregoing power of attorney shall survive the Retirement of a Limited
Partner and the Assignment by any Limited Partner of all or any part of his
Partnership Interest, except that when an assignee is granted Partnership Rights
and admitted as a substitute Limited Partner the power of Attorney of the
assignor Limited Partner shall survive the Assignment only for the purpose of
enabling the non-managing General Partner to make, execute, acknowledge,
deliver, swear to, publish, record and file every instrument necessary to effect
the substitution.
47. Partnership Contracts. The Managing General Partner may enter into
agreements and contracts on behalf of the Partnership only if they are in
writing and clearly indicate to the other parties that the Partnership is a
general partnership of which the Managing General Partner is a general partner.
48. Conveyances. Subject to section 20, the Managing General Partner may
sign any deed, mortgage, lease, xxxx of sale, security agreement, pledge,
contract or other instrument or commitment purporting to convey or encumber any
of the Partnership's Property or any interest therein, whether now or
subsequently owned or leased at any time by the Partnership, and no other
signature is required.
49. Notices. To be effective, a notice required or permitted by this
Agreement must be in writing, or by telegram, telex or telecopy if promptly
confirmed in writing. A notice is given when delivered or, if mailed, when
deposited in a United States postal service letterbox to be sent by first class,
postage-prepaid, certified mail, with return receipt requested (whether or not
the sender receives the return receipt), and addressed, if to a Partner, at his
registered address listed on Exhibit A and, if to the Managing General Partner
or the Partnership, to the attention of such Managing General Partner at the
Partnership's principal business office.
50. Consents. Any consent required by this Agreement may be given as
follows:
(a) by a writing given by the consenting Partner and received by the
Managing General Partner or other appropriate recipient at or before the
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occurrence of the action or other thing for which the consent was solicited,
unless the consent is nullified by:
(i) A writing from the consenting Partner that is received by
the Managing General Partner before the occurrence of the action or other thing
for which the consent was so1icited; or
(ii) the negative vote by the consenting Partner at any
meeting called for the purpose of considering the action or other thing.
(b) by the affirmative vote of the consenting Partner at any meeting
called for the purpose of considering the action or other thing for which the
Partner's consent was solicited.
51. Meetings. The Managing General Partner may call meetings of the
Partners for any purpose, at any, time. The Managing General Partner shall call
a meeting of the Partners within 30 days after he receives from a Majority in
Interest a written request for a meeting, stating the purpose of the requested
meeting and the matters proposed for consideration. Meetings of the Partners may
be held at such time, date and place as the Managing General Partner designates.
The Managing General Partner shall give notice of any meeting of the Partners
not less than ten nor more than 60 days before the date of the meeting, to each
Partner at his registered address listed on Exhibit A. The notice shall state
the time, date and place of the meeting, the purpose of the meeting and the
Partner at whose direction or request the meeting is called. Except in the case
of emergency, meetings of the Partnership shall be held in Delaware or South
Carolina. If a meeting is adjourned to another time or place, notice of the
adjourned meeting is not required if the time and place of the adjournment is
announced at the called meeting. The presence in person or by proxy of a
Majority in Interest constitutes a quorum at a meeting. Any notice of a meeting
required by this section may be waived in writing at, before or after the
meeting and shall be deemed to be waived by each Partner who is present in
person or by proxy at the meeting. Only those persons who are Partners at the
close of business on the day before the meeting are entitled to vote at the
meeting. Any Partner entitled to vote at a meeting may authorize any person to
act for him by written proxy if a copy of the proxy is delivered to the Managing
General Partner before the commencement of the meeting. To be effective, a proxy
must be signed by the Partner (and, if applicable, each co-owner) or his duly
appointed attorney-in-fact, and no proxy shall be valid for more than 11 months
after its date. A proxy is revocable at the pleasure of the Partner granting it.
52. Binding Effect; Counterparts. The covenants and agreements contained
in this Agreement are binding on, and inure to the benefit of, the legal and
personal representatives, heirs, successors and permitted assignees of the
parties to this Agreement. The parties may execute this Agreement in any number
of counterparts,
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each of which will be an original, but all of which together will constitute one
and the same agreement.
53. Choice of Law. This Agreement and the rights and obligations of the
Partners under it are governed by, and construed and enforced in accordance
with, the laws of Delaware.
54. Complete Agreement; Modification. This Agreement contains the final,
complete and exclusive expression of the understanding among the Partners with
respect to the Partnership and its purposes and objectives and supersedes any
prior or contemporaneous agreement or representation, oral or written, by any of
them. Except to admit a new or a substitute Partner or to reflect the withdrawal
or Retirement of a Partner, this Agreement and every provision of it may be
modified or amended only by an agreement in writing signed by or on behalf of
all Partners.
55. Evidence of Partnership Interests. The Partnership Interest of each
Partner is evidenced exclusively by a counterpart of this Agreement (including
Exhibit A) that has been signed and dated by the Managing General Partner.
56. Tax Matters Partner. The General Partner or its designee shall be the
"tax matters partner" of the Partnership for federal income tax purposes.
Pursuant to Section 6223(c)(2) of the Code, upon receipt of notice from the
Internal Revenue Service of the beginning of an administrative proceeding with
respect to the Partnership, the General Partner, as the tax matters partner,
shall furnish the Internal Revenue Service with the names, addresses, and
Percentage Interests of each of the Partners. The General Partner agrees not to
enter into a settlement agreement pursuant to Section 6224 of the Code without
providing at least 30 days advance written notice to each Partner. As tax
matters partner, the General Partner shall have absolute discretion regarding
whether to seek judicial review of any administrative determination and, if it
determines to seek judicial review of Internal Revenue Service action pursuant
to Section 6226 of the Code, then the General Partner shall select the judicial
forum for such review. The tax matters partner shall receive no compensation for
its services as such. The Partnership shall bear all third party costs and
expenses incurred by the tax matters partner in performing its duties as such.
Nothing herein shall be construed to restrict the Partnership from engaging an
accounting firm or law firm to assist the tax matters partner in discharging its
duties hereunder.
57. Gender and Number. As used in this Agreement, the masculine gender
includes the feminine and neuter, and the singular includes the plural.
58. Title. Title to any Property acquired by the Partnership shall be
taken in the name of the Partnership.
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IN WITNESS WHEREOF, this agreement has been executed by or on behalf of
each Partner as of the date written beside his name.
GENERAL PARTNER:
S.B. Investment Management, Inc.
/s/ Xxxxxx Xxxxxxxx
------------------------------------------
Xxxxxx Xxxxxxxx 11/22/99
As its President
Effective November 22, 1999
LIMITED PARTNER:
/s/ Xxxxx Xxxxxxxxxxx
------------------------------------------
Xxxxx Xxxxxxxxxxx 11/19/99
FIRST AMENDMENT TO THE
LIMITED PARTNERSHIP AGREEMENT OF
XXXXXXXXXXX INVESTMENTS LIMITED PARTNERSHIP II
This First Amendment of Agreement of Limited Partnership is made as
of the 16th day of September 2003, by and among S.B. INVESTMENT MANAGEMENT,
Inc., as general partner (the "General Partner"), and XXXXX XXXXXXXXXXX as
limited partner (the "Limited Partner").
WHEREAS, the Limited Partnership Agreement of Xxxxxxxxxxx
Investments Limited Partnership II (the "Agreement") was executed on the 22nd
day of November, 1999 under the laws of the state of Delaware; and;
WHEREAS, Paragraph 54 of the Agreement provides that the Agreement
may be amended by an agreement in writing signed by or on behalf of all
Partners; and
WHEREAS, the undersigned, being the General Partner and persons
representing all of the Limited Partnership interests, wish to amend and restate
the Agreement as hereinafter set forth.
NOW, THEREFORE, the undersigned do hereby amend the Agreement as
follows:
1) Section 32.(a) of the Agreement is hereby amended in its entirety
to read as follows:
32.(a) A Limited Partner may withdraw all or part of his
Partnership Interest from the Partnership only with the prior
written consent of the Managing General Partner.
2) Section 36. of the Agreement is hereby amended in its entirety to
read as follows:
36. Events of Dissolution. The Partnership shall be dissolved,
and unless reconstituted shall be terminated, upon:
(a) the expiration of its term:
(b) the Partnership being adjudicated insolvent or bankrupt;
(c) the Retirement, removal, or withdrawal of the Managing
General Partner;
(d) the sale of all or substantially all of the Partnership's
Property; or
(e) the complete withdrawal of the Limited Partner.
3) Except as amended hereby, the Agreement remains in full force and
effect.
IN WITNESS WHEREOF, the parties have executed this agreement as of the date
first set forth above.
GENERAL PARTNER:
S.B. Investment Management, Inc.
---------------------------------------
Xxxxxx Xxxxxxxx
As its President
LIMITED PARTNER:
/s/ Xxxxx Xxxxxxxxxxx
---------------------------------------
Xxxxx Xxxxxxxxxxx
IN WITNESS WHEREOF, the parties have executed this agreement as of the date
first set forth above.
GENERAL PARTNER:
S.B. Investment Management, Inc.
/s/ Xxxxxx Xxxxxxxx
---------------------------------------
Xxxxxx Xxxxxxxx
As its President
LIMITED PARTNER:
---------------------------------------
Xxxxx Xxxxxxxxxxx
SECOND AMENDMENT
to the
LIMITED PARTNERSHIP AGREEMENT
of
XXXXXXXXXXX INVESTMENT LIMITED PARTNERSHIP II
THIS SECOND AMENDMENT to the LIMITED PARTNERSHIP AGREEMENT of XXXXXXXXXXX
INVESTMENT LIMITED PARTNERSHIP II (the "Partnership") (this "Amendment") is made
as of June 24, 2004, by and among (i) S.B. Investment Management, Inc., (ii)
Xxxxx Xxxxxxxxxxx and Xxxxxx XxXxxxxxxxxx, as Trustees of the XX Xxxxxxxxxxx
2003 CLAT, which trust was created under indenture dated September 22, 2003 by
and between Xxxxx Xxxxxxxxxxx, as Grantor, and Xxxxx Xxxxxxxxxxx and Xxxxxx
XxXxxxxxxxxx, as Trustees (the "XX Xxxxxxxxxxx 2003 CLAT") (iii) Xxxx Shale
Xxxxxxxxxxx and Xxxxxx XxXxxxxxxxxx, as Trustees of the Xxxx X. Xxxxxxxxxxx 2003
CLAT, which trust was created under indenture dated September 22, 2003 by and
between Xxxxx Xxxxxxxxxxx, as Grantor, and Xxxx Shale Xxxxxxxxxxx and Xxxxxx
XxXxxxxxxxxx, as Trustees (the "Xxxx X. Xxxxxxxxxxx 2003 CLAT"), (iv) Xxxx Shale
Xxxxxxxxxxx and Xxxxxx XxXxxxxxxxxx, as Trustees of the Xxxxx X. Xxxxxx 2003
CLAT, which trust was created under indenture dated September 22, 2003 by and
between Xxxxx Xxxxxxxxxxx, as Grantor, and Xxxx Shale Xxxxxxxxxxx and Xxxxxx
XxXxxxxxxxxx, as Trustees (the "Xxxxx X. Xxxxxx 2003 CLAT") and (v) Xxxx Shale
Xxxxxxxxxxx and Xxxxxx XxXxxxxxxxxx, as Trustees of the Xxxxxx Xxxxxxxx
Xxxxxxxxxxx 2003 CLAT, which trust was created under indenture dated September
22, 2003 by and between Xxxxx Xxxxxxxxxxx, as Grantor, and Xxxx Shale
Xxxxxxxxxxx and Xxxxxx XxXxxxxxxxxx, as Trustees (the "Xxxxxx Xxxxxxxx
Xxxxxxxxxxx 2003 CLAT"). Capitalized terms used but not otherwise defined herein
are defined in the Limited Partnership Agreement of the Partnership (the
"Agreement").
WHEREAS, the parties hereto wish to amend that certain Agreement,
dated as of November 22, 1999;
WHEREAS, the parties hereto wish to remove the consent requirement
of a Majority in Interest as to certain transactions to be taken on behalf of
the Partnership by the Managing General Partner;
NOW, THEREFORE, in consideration of the mutual covenants contained
herein, and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties to this Amendment hereby agree as
follows:
1. Purpose of Partnership. Upon the date hereof, Section 6(a)(ii) of
the Agreement is amended in its entirety to read as follows:
"acquire, hold, sell, own, improve, develop or lease other types of
property in addition to Marketable Securities, and"
2. Authority of Managing General Partner. Upon the date hereof,
Section 20(3) shall be deleted in its entirety.
3. Amendment and Waiver. Except as otherwise provided herein, no
modification, amendment or waiver of any provision of this Amendment shall be
effective unless such modification, amendment or waiver is approved in writing
in accordance with Section 54 of the Agreement. The failure of any party to
enforce any of the provisions of this Amendment shall in no way be construed as
a waiver of such provisions and shall not affect the right of such party
thereafter to enforce each and every provision of this Amendment in accordance
with its terms.
4. Severability. Whenever possible, each provision of this Amendment
shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Amendment is held to be invalid,
illegal or unenforceable in any respect under any applicable law or rule in any
jurisdiction, such invalidity, illegality or unenforceability shall not affect
any other provision or any other jurisdiction, but this Amendment shall be
reformed, construed and enforced in such jurisdiction as if such invalid,
illegal or unenforceable provision had never been contained herein.
5. Entire Agreement. Except as otherwise expressly set forth herein,
this document embodies the complete agreement and understanding among the
parties hereto with respect to the subject matter hereof and supersedes and
preempts any prior understandings, agreements or representations by or among the
parties, written or oral, which may have related to the subject matter hereof in
any way.
6. Successors and Assigns. Except as otherwise provided herein, this
Amendment shall bind and inure to the benefit of and be enforceable by the
Partnership, the parties hereto and their respective successors and assigns.
7. Counterparts. This Amendment may be executed in separate
counterparts (including by means of telecopied signature pages), each of which
shall be an original and all of which taken together shall constitute one and
the same agreement.
8. Governing Law. This Amendment is governed by and shall be
construed in accordance with the law of the States of Delaware, excluding any
conflict-of-laws rule or principal that might refer the governance or
construction of this Amendment to the law of another jurisdiction.
9. Descriptive Headings. The descriptive headings of this Amendment
are inserted for convenience only and do not constitute a part of this
Amendment.
* * * * *
2
IN WITNESS WHEREOF, the parties hereto have executed this Amendment
on the day and year first above written.
S.B. INVESTMENT MANAGEMENT, INC.
By: /s/ Xxxxxx Xxxxxxxx
------------------------------
Name: Xxxxxx Xxxxxxxx
Its: President
XX XXXXXXXXXXX 2003 CLAT
By: /s/ Xxxxxx X. XxXxxxxxxxxx
------------------------------
Name: Xxxxxx X. XxXxxxxxxxxx
Its: Trustee
By: /s/ Xxxxx Xxxxxxxxxxx
------------------------------
Name: Xxxxx Xxxxxxxxxxx
Its: Trustee
XXXX X. XXXXXXXXXXX 2003 CLAT
By: /s/ Xxxxxx X. XxXxxxxxxxxx
------------------------------
Name: Xxxxxx X. XxXxxxxxxxxx
Its: Trustee
XXXXX X. XXXXXX 2003 CLAT
By: /s/ Xxxxxx X. XxXxxxxxxxxx
------------------------------
Name: Xxxxxx X. XxXxxxxxxxxx
Its: Trustee
By: /s/ Xxxx X. Xxxxxxxxxxx
------------------------------
Name: Xxxx X. Xxxxxxxxxxx
Its: Trustee
XXXXXX XXXXXXXX XXXXXXXXXXX 2003 CLAT
By: /s/ Xxxxxx X. XxXxxxxxxxxx
------------------------------
Name: Xxxxxx X. XxXxxxxxxxxx
Its: Trustee
By: /s/ Xxxx X. Xxxxxxxxxxx
------------------------------
Name: Xxxx X. Xxxxxxxxxxx
Its: Trustee
