EX-3.128 AGREEMENT AND CERTIFICATE OF PARTNERSHIP OF MESILLA VALLEY GENERAL PARTNERSHIP, AS AMENDEDGeneral Partnership Agreement |
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EXHIBIT 3.128
AGREEMENT AND CERTIFICATE
OF PARTNERSHIP OF
MESILLA VALLEY GENERAL PARTNERSHIP
THIS AGREEMENT AND CERTIFICATE OF PARTNERSHIP ("Agreement") is made and
entered into as of the fourteenth day of September 1985 ("Commencement Date"),
by and among MESILLA VALLEY HOSPITAL, INC., a New Mexico corporation ("MVH"),
and MESILLA VALLEY MENTAL HEALTH ASSOCIATES, INC., a New Mexico corporation
("Associates").
WHEREAS, the parties (collectively, the "Partners") wish to join
formally together as a New Mexico general partnership, and to set forth in full
the terms and conditions of their agreement in this regard;
NOW, THEREFORE, in consideration of the mutual promises set forth in
this Agreement, and for other good and valuable consideration, the receipt and
sufficiency of 'which is hereby acknowledged, the Partners agree as follows:
1. Formation and Name
The Partners hereby form a general partnership pursuant to the laws of
the State of New Mexico, to be conducted under the name of MESILLA VALLEY
GENERAL PARTNERSHIP (the "Partnership").
2. Purposes
The Partnership shall establish, own and operate an inpatient
psychiatric hospital, to be built in the vicinity of Las Cruces, New Mexico,
including additional and ancillary
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mental, psychiatric and psychological health care facilities for inpatients and
for outpatients (the "Facility"); shall acquire (by purchase, lease, donation or
otherwise) real and personal property; and shall obtain licenses and permits and
shall do all other things necessary, appropriate or desirable for the lawful and
economically viable operation of the Facility.
3. Principal Place of Business
The principal place of business of the Partnership shall be maintained
at 250 South Downtown Mall, Las Cruces, New Mexico, or at such other place or
places in the vicinity of Las Cruces, New Mexico, as the Partners may from time
to time determine.
4. Term
The Partnership shall be effective for an Original Term of fifty (50)
years from the Commencement Date, and thereafter for Additional Terms of five
(5) years each, unless and until dissolved in accordance with Section 13 of this
Agreement.
5. Capital Contributions and Partnership Interest
Simultaneously with the execution of this Agreement, each Partner shall
make an Original Capital Contribution in the amount of fifty thousand dollars
($50,000.00) in cash, except that each of MVH and Associates shall be given a
credit toward that contribution equivalent to such reasonable expenses as such
Partner shall have incurred or assumed (either directly or through any of its
shareholders acting on its behalf) in the
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development of the Facility prior, to the Commencement Date. Upon making its
Original Capital Contribution, each Partner shall be entitled to a fifty
percent (50%) Partnership Interest in the Partnership. No further contribution
to the capital of the Partnership shall be required of any Partner, except as
provided in Section 6 of this Agreement or as unanimously agreed upon by the
Partners.
Subject to the terms of this Agreement, the Partners shall be entitled
to share in the losses and profits of the Partnership and to participate in the
management of the Partnership in proportion to the fifty percent Partnership
Interest held by each Partner. Partnership Interests may be transferred only in
accordance with Sections 10, 11 and 12 of this Agreement.
6. Participation in Partnership Debt
Subject to the discretion of the Governing Body of the Partnership, the
general policy of the Partnership shall be to obtain funding for the Partnership
through the facility's operating revenues and through loans and extensions of
credit to the Partnership by the partners and/or by third parties. Financings
that require guarantees shall be guaranteed by the Partners to the extent of
their respective Partnership Interests; Provided that, in the event that any
Partner Guarantees a Partnership obligation in excess of its Partnership
Interest, each of the other Partners shall indemnify such guaranteeing Partner
in proportion to such other Partner's Partnership Interests.
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7. Capital Accounts and Partnership Records
The books of account in which all receipts and expenditures of the
Partnership are reflected, and all other records pertaining to the Partnership,
shall be maintained in accordance with generally accepted accounting practices,
consistently applied, and in compliance with the pertinent provisions of the
Internal Revenue Code and all applicable state and local tax codes. Such books
and records shall be open at all reasonable times for inspection by any Partner
or its duly authorized designees. At such intervals as the Governing Body may
from time to time determine, such books and records shall be audited by
independent certified public accountants, and financial statements shall be
prepared.
Separate Capital Accounts shall be maintained for each Partner and
shall consist of the sum of its contributions to the capital of the Partnership,
plus its share of the profits of the Partnership, plus its reasonable and
appropriately documented costs and expenses incurred on behalf of the
Partnership within the scope of the Partnership business, including without
limitation, transportation and out-of-town room and board, to the extent
approved by the Governing Body, less its share of the losses of the Partnership,
less any distributions to or withdrawals made by or attributed to it by the
Partnership.
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8. Distribution of Net Cash Receipts
(a) The Net Cash Receipts of the Partnership shall be determined
as of the end of each fiscal year of the Partnership and shall consist of the
net profit or net loss of the Partnership, as the case may be, for such fiscal
year, increased by the sum of:
(i) depreciation and other non-cash charges deducted in computing
the net profit or net loss of the Partnership for such fiscal
year;
(ii) that portion of the proceeds of sale of Partnership assets
that represents the return of the book value for such assets;
and
(iii) any cash that becomes available during such fiscal year by
reason of a determination of the Governing Body or the Manager
to reduce any reserve funds;
and decreased by the sum of:
(iv) principal payments made by the Partnership on any of its debts
during such fiscal year;
(v) any expenditure made by the Partnership during such fiscal
year which are not chargeable to reserve funds established by
the Governing Body; and
(vi) additions to working capital and any other reserve funds
reasonable deemed necessary by the Governing Body or the
Manager during such fiscal year.
(b) Net Cash Receipts shall be estimated as soon as practicable,
without audit, after the end of each Partnership fiscal year, and all such
estimated Net Cash Receipts shall then be distributed promptly to the Partners
in proportion to their Partnership Interests. Upon the unanimous consent of the
Partners, distributions of Net Cash Receipts may be made more frequently than
annually. As soon as practicable after the Partnership
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financial statements for a Partnership fiscal year are completed, any necessary
adjustments to such distribution of Net Cash Receipts shall be made.
(c) Distributions in kind of the property of the Partnership, in
liquidation or otherwise, shall be made only with the consent of all the
Partners. Prior to any such distribution in kind, the difference between the
market value and the book value of such property shall be credited or charged,
as appropriate, to the Partners' Capital Accounts in proportion to their
Partnership Interests. Upon such distribution of the property, such market value
shall be charged to the Capital Account of the Partner or Partners receiving
such distribution.
9. Management of Partnership
No Partner, acting alone, can bind the Partnership. The Partnership's
affairs shall be managed by a Governing Body, subject to the approval of the
Partners. The Partnership shall execute an agreement with Psychiatric
Management, Inc., a Delaware corporation (the "Manager"), for general management
of the Facility, and the Manager shall be responsible for the day-to-day
management of the business of the Facility. The Governing Body shall consist of
six (6) members, three (3) to be appointed by Associates and three (3) to be
appointed by MVH, within thirty (30) days of the Commencement Date. Each Partner
may, at any time and with or without cause, remove and replace any member which
it has previously appointed to the Governing Body, and may designate alternates
to attend meetings of the Governing Body in
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the appointees absence. Under no circumstances may any action be taken by the
Governing Body except upon the concurrence of no less than four members thereof.
The Governing Body shall select a Chairman who will serve at its pleasure, and
shall delegate to such Chairman such powers and duties as the Governing Body, in
its sole discretion, may determine from time to time. The Governing Body shall
conduct its initial meeting at such time as the Partners shall mutually agree,
and shall adopt such bylaws and rules as may be necessary or desirable for the
conduct of its affairs, subject only to the terms of this Agreement and any
other document binding upon the Partnership.
10. Transfer of Partnership Interests
Subject to the provisions of Section 12 of this Agreement, any or all
of any Partner's Partnership Interest may be sold, conveyed, assigned, pledged
(except for the sole purpose of securing any financing for the benefit of the
Partnership, to the extent required by the lending party) or transferred in any
manner (hereinafter, the "transfer") only:
(a) to any other Partner; or
(b) to a third party, only with the written consent of all other
Partners.
Any attempted transfer of any or all of any Partner's Partnership Interest not
in accordance with the terms of this Section 10 shall be null and void.
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11. Effect of Transfer of Partnership Interest
In the event of a transfer in accordance with this Agreement of all or
any of any Partner's Partnership Interest, the Partnership shall continue and
the transferee of such interest shall be admitted to the Partnership as a
general partner, with the same rights and obligations as the transferring
Partner had with respect to the transferred Partnership Interest, upon:
(a) execution by such transferee of an unconditional consent to be
bound by the terms of this Agreement and the Master Agreement; and
(b) filing with the appropriate state or county official of an
Amended Agreement to reflect the change in Partnership Interests.
12. Disqualification of a Partner
(a) Any Partner suffering a Disqualifying Event shall become a
Disqualified Partner and subject to the sanctions provided for in Section 12(b)
of this Agreement. Disqualifying Events shall include the following:
(i) any of the following events of Bankruptcy, namely, such
Partner's (A) application for or consent to the appointment of
a receiver, conservator trustee, liquidator, custodian or
other judicial representative for the Partner or any
substantial portion of its assets or properties; (B) admission
in writing of its inability generally to pay its debts as they
mature; (C) making of a general assignment for the benefit of
its creditors; (D) suffering entry of an order for relief by a
Bankruptcy Court for or against it or suffering adjudication
of insolvency; (E) filing a voluntary petition in bankruptcy
or a petition or an answer seeking reorganization or an
arrangement with creditors or
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taking advantage of any bankruptcy, insolvency, readjustment
of debt, dissolution or liquidation law or statute, or filling
an answer admitting the material allegations of a petition
filed against it in any proceeding under any Such law; (F)
suffering entry of an order, judgment or decree by any court
of competent jurisdiction approving a petition seeking
reorganization of it or of all or a substantial part of its
assets and properties or appointing a receiver, conservator,
trustee, liquidator, custodian or other judicial
representative, should such order, judgment or decree continue
unstayed and in effect for a period of sixty (60) consecutive
days; provided, however, that in the event that both Partners
or either Partner and the Partnership shall suffer any of the
foregoing events of bankruptcy ("Simultaneous
Disqualification"), this Section 12(l)(i) shall be of no
effect for the duration of such Simultaneous Disqualification;
(ii) for the period of five years from the date first written
above, any material breach of this Agreement by such Partner,
not cured within thirty (30) days after notice to such Partner
by any other Partner of such breach; provided, however, that
no thirty (30) day cure period shall be extended to any
Partner in the event of its breach of Sections 10 or 14 of
this Agreements;
(iii) the responsibility of such Partner for any act which (A)
causes a dissolution of the Partnership or would justify entry
of a decree of dissolution of the Partnership under the laws
of the State of New Mexico; (B) adversely affects the tax
status of the Partnership under applicable federal, state or
local law; (C) adversely affects the Facility's licensure,
certification or approval under applicable federal, state or
local law; or (D) results in conviction of the Partner or any
of its shareholders, officers, directors, employees or agents,
or any of the shareholders, officers, directors, employees or
agents of Ohio Psychiatric Institutes, Inc, a Delaware
corporation, of a crime, unless such disqualification shall be
waived by a majority vote of the Partnership; and
(iv) in the case of the Partner which is a legal entity, such
Partner's uncured dissolution or liquidation.
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Any Partner suffering from a Disqualifying Event, or any Partner receiving
actual notice of a Disqualifying Event, shall immediat






