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EXHIBIT 3.4
AGREEMENT OF LIMITED PARTNERSHIP
OF
EMERGENCY MEDICAL SERVICES L.P.
This Agreement of Limited Partnership is entered into and shall
be
effective as of February 10, 2005, by and among Emergency
Medical Services
Corporation, a Delaware corporation as a general partner (the
"GENERAL
PARTNER"), and the Persons listed on Schedule A attached hereto
as limited
partners.
NOW, THEREFORE, in consideration of the premises, the parties do
hereby
agree as follows:
1. CERTAIN DEFINITIONS. As used herein, the following terms
shall have
the following respective meanings:
"ACT" means the Delaware Revised Uniform Limited Partnership
Act.
"ADJUSTED CAPITAL ACCOUNT" means, with respect to any Partner
such
Partner's Capital Account, increased for the amount such Partner
is deemed
obligated to restore pursuant to (A) the penultimate sentences
of Regulations
Section 1.704-2(g)(l) and 1.704-2(i)(5) and (B) Regulations
Sections
1.704-1(b)(2)(ii)(c), as of the end of the Company's Fiscal Year
or other
applicable period, and reduced for the items described in
Regulations Sections
1.704-1(b)(2)(ii)(d)(4), (5) and (6).
"CAPITAL ACCOUNTS" has the meaning set forth in Section 4.2.
"CAPITAL CONTRIBUTIONS" means the money and property contributed
by
the Partners to the Limited Partnership pursuant to the
provisions of Section 3
of this Agreement.
"CERTIFICATE" means the Certificate of Limited Partnership of
the
Partnership, as amended from time to time. Unless the context
requires
otherwise, any reference to the "Certificate" shall be to the
Certificate as the
same shall be in effect at the time to which such reference
relates.
"CLASS A UNITS" means all Units of the Partnership other than
Class
B Units.
"CLASS B UNITS" has the meaning given to that term in Section
4.4.
"CODE" means the Internal Revenue Code of 1986, as amended from
time
to time, including the corresponding provisions of any successor
law.
"COMPANY" means Emergency Medical Services L.P.
"DEPRECIATION" means, for each Fiscal Year or other period,
an
amount equal to the depreciation, amortization or other cost
recovery deduction
allowed or allowable for federal income tax purposes with
respect to an asset
for such Fiscal Year; provided, however, that, except as
otherwise provided in
Regulations Section 1.704-2, if the Gross Asset Value of an
asset differs from
its adjusted basis for federal income tax purposes at the
beginning of such
Fiscal Year or other period, Depreciation shall be an amount
which bears the
same ratio to such beginning Gross Asset Value as the federal
income tax
depreciation, amortization or other cost recovery deduction for
such Fiscal Year
or other period bears to such beginning adjusted tax basis;
provided, further,
that, if the adjusted basis for federal income tax purposes of
an asset at the
beginning of such Fiscal Year or other period is zero,
Depreciation shall be
determined with reference to such beginning Gross Asset Value
using any
reasonable method selected by the General Partner; and provided
further, that,
with respect to any asset to which the remedial allocation
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method is applied pursuant to Section 6.6, Depreciation with
respect to such
asset shall be calculated in accordance with Regulations Section
1.704-3(d)(2).
"FISCAL YEAR" means (a) the period commencing on the date hereof
and
ending on August 31, 2005 and (b) any subsequent 12-month period
commencing on
January 1.
"GENERAL PARTNER" has the meaning given that term in the
first
paragraph of this Agreement.
"GROSS ASSET VALUE" means, with respect to any asset of the
Partnership, such asset's adjusted basis for federal income tax
purposes, except
as follows:
(a) the initial Gross Asset Value of any asset contributed by
a
Partner to the Partnership shall be the gross fair market value
of such
asset (computed without taking Section 7701(g) of the Code into
account),
without reduction for liabilities, as determined by the
contributing
Partner and the Partnership;
(b) if the General Partner reasonably determines that an
adjustment
is necessary or appropriate to reflect the relative economic
interests of
the Partners, the Gross Asset Values of all Partnership assets
shall be
adjusted in accordance with Regulations Sections
1.704-1(b)(2)(iv)(f) and
(g) to equal their respective gross fair market values, without
reduction
for liabilities, as reasonably determined by the General
Partner, as of
the following times:
(i) a Capital Contribution (other than a de minimis Capital
Contribution) to the Partnership by a new or existing Partner
as
consideration for Units; or
(ii) the distribution by the Partnership to a Partner of
more
than a de minimis amount of Partnership assets as consideration
for
the redemption of an interest in the Partnership; or
(iii) the liquidation of the Partnership within the meaning
of
Regulations Section 1.704-1(b)(2)(ii)(g); or
(iv) the grant of more than a de minimis number of Units as
consideration for the provision of services to or for the
benefit of
the Partnership;
(c) the Gross Asset Values of Partnership assets distributed to
any
Partner shall be the gross fair market values of such assets
(computed
without taking Section 7701(g) of the Code into account) without
reduction
for liabilities, as reasonably determined by the General Partner
as of the
date of distribution; and
(d) the Gross Asset Values of Partnership assets shall be
increased
(or decreased) to reflect any adjustments to the adjusted basis
of such
assets pursuant to Sections 734(b) or 743(b) of the Code, but
only to the
extent that such adjustments are taken into account in
determining Capital
Accounts pursuant to Section 1.704-1(b)(2)(iv)(m) of the
Regulations;
provided, however, that Gross Asset Values shall not be adjusted
pursuant
to this paragraph (iv) to the extent that the General Partner
reasonably
determines that an adjustment pursuant to paragraph (ii) above
is
necessary or appropriate in connection with a transaction that
would
otherwise result in an adjustment pursuant to this paragraph
(d).
At all times, Gross Asset Values shall be adjusted by any
Depreciation taken
into account with respect to the Partnership's assets for
purposes of computing
Net Profits and Net Losses.
"LIMITED PARTNERS" means (a) those Persons listed on Schedule
A
attached hereto and (b) any transferee thereof or other Person
admitted as a
limited partner pursuant to the terms of this Agreement.
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"NET PROFITS" AND "NET LOSSES" mean, for each Fiscal Year of
the
Partnership or other applicable period, an amount equal to the
Partnership's
taxable income or loss for such year or period, as determined
for federal income
tax purposes, and computed in accordance with Section 703(a) of
the Code (for
this purpose, all items of income, gain, loss or deduction
required to be
separately stated pursuant to Section 703(a)(1) of the Code
shall be included in
taxable income or loss) with the following adjustments:
(a) any income of the Partnership that is exempt from federal
income
tax and not otherwise taken into account in computing Net
Profits or Net
Losses pursuant to this definition shall be treated as an item
of gross
income in determining taxable income or loss;
(b) in the event an adjustment to the Gross Asset Value of a
property which requires that the Capital Accounts be adjusted
pursuant to
Regulations Sections 1.704-1(b)(2)(iv)(e), (f), (g) and (m), the
amount of
such adjustment shall be taken into account as gain or loss from
the
disposition of the property for purposes of computing Net
Profits or Net
Losses;
(c) gain or loss resulting from the disposition of a property
shall
be computed by reference to the Gross Asset Value of the
property,
notwithstanding that the adjusted tax basis of the property
differs from
its Gross Asset Value;
(d) in lieu of the depreciation, amortization and other cost
recovery deductions, there shall be taken into account
Depreciation in
computing such taxable income or loss;
(e) to the extent an adjustment to the adjusted tax basis of
any
Partnership asset pursuant to Code Section 734(b) or Code
Section 743(b)
is required pursuant to Regulations Section
1.704-1(b)(2)(iv)(m)(4) to be
taken into account in determining Capital Accounts as a result
of a
distribution other than in complete liquidation of a Partner's
interest in
the Partnership, the amount of such adjustment shall be treated
as an item
of gain (if the adjustment increases the basis of the asset) or
loss (if
the adjustment decreases the basis of the asset) from the
disposition of
the asset and shall be taken into account for purposes of
computing Net
Profits or Net Losses;
(f) by treating as a deductible expense any expenditure of
the
Partnership described in Section 705(a)(2)(B) of the Code (or
which is
treated as a Section 705(a)(2)(B) expenditure pursuant to
Regulations
Section 1.704-1(b)(2)(iv)(i)) and not otherwise taken into
account in
computing Net Profits or Net Losses, including amounts paid or
incurred to
organize the Partnership (unless an election is made pursuant to
Section
709(b) of the Code) or to promote the sale of interests in
the
Partnership) and by treating deductions for any losses incurred
in
connection with the sale or exchange of Partnership property
disallowed
pursuant to Section 267(a)(1) or 707(b) of the Code as
expenditures
described in Section 705(a)(2)(B) of the Code; and
(g) notwithstanding any other provision of this definition,
any
items which are specially allocated pursuant to Article 6 shall
not be
taken into account in computing Net Profits or Net Losses.
"PARTNERS" shall mean the General Partner and the Limited
Partners,
collectively, and "PARTNER" shall mean a General Partner or a
Limited Partner
as the context shall require.
"PARTNERSHIP" means the limited partnership formed by the
execution
of this Agreement and known as Emergency Medical Services
L.P.
"PERCENTAGE INTERESTS" has the meaning set forth in Section
4.1.
"PERSON" means any natural person, corporation, partnership,
joint
venture, trust, association or other business or legal
entity.
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"REGULATIONS" means the Treasury Regulations promulgated under
the
Code, as amended from time to time, including the corresponding
provisions of
any successor regulations.
"UNITS" means the units of each Limited Partner representing
such
Limited Partner's interest in the income, gains, losses,
deductions and expenses
of the Partnership as set forth on Schedule A attached hereto,
as amended from
time to time in accordance with the terms of this Agreement.
Unless otherwise
indicated, a reference to Units shall be to both Class A Units
and Class B
Units.
2. FORMATION, PURPOSE, TERM.
2.1 FORMATION. The parties hereby confirm the formation of
the
Partnership under the name Emergency Medical Services L.P., in
accordance with
the Act. Promptly upon execution and delivery of this Agreement,
the General
Partner shall cause a restated Certificate, if required by the
Act, to be filed
or recorded in all appropriate public offices.
2.2 PURPOSE; LIMITATIONS. The purpose of the Partnership is
to
engage in any activities permitted under the Act, including,
without limitation,
to own and invest in real estate and marketable securities.
2.3 PRINCIPAL OFFICE. The principal office of the Partnership
shall
be located at such place as the General Partner may determine.
The General
Partner shall give notice to the Limited Partners promptly of
the location of
the principal office of the Partnership and of any change
thereof.
2.4 REGISTERED AGENT. The registered agent of the Partnership
in
Delaware shall be Corporation Service Company.
2.5 TERM. The Partnership commenced on the date of the filing of
the
original Certificate of Limited Partnership with the office of
the Secretary of
State of Delaware and shall terminate as herein provided.
3. CONTRIBUTIONS.
3.1 INITIAL CONTRIBUTIONS. On or prior to the date hereof,
the
Partners have made the contributions to the Partnership set
forth on Schedule A
attached hereto.
3.2 ADDITIONAL CONTRIBUTIONS. No Partner shall be required to
make
any additional contributions to the capital of the Partnership.
Nothing
contained in this Section 3.2 shall be deemed to limit the
obligations of the
General Partner in respect of liabilities of the Partnership
under this
Agreement or under the Act. With the consent of the General
Partner, any Partner
may make an additional contribution to the Partnership.
4. PERCENTAGE INTERESTS; CAPITAL ACCOUNTS; UNITS.
4.1 PERCENTAGE INTERESTS. The Percentage Interest (a) of the
General
Partner shall be 0.001 percent and (b) of each Limited Partner,
the product of
(i) 0.999 and (ii) the percentage of outstanding Units owned by
such Limited
Partner.
4.2 CAPITAL ACCOUNTS The Partnership shall determine and
maintain a
"Capital Account" for each Partner throughout the full term of
the Partnership
in accordance with the provisions of Regulations Section
1.704-1(b)(2)(iv), as
such regulation may be amended from time to time. Without
limiting the
foregoing, the following provisions shall apply:
(a) The Capital Account of each Partner shall be increased by
(i)
the amount of such Partner's cash contributions and the initial
Gross
Asset Value of property contributed to the Partnership by such
Partner
(net of liabilities securing such contributed property that
the
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Partnership is considered to assume or take subject to under
Section 752
of the Code), (ii) such Partner's share of the Partnership's Net
Profits,
and (iii) the amount of any Partnership liabilities that are
assumed by
such Partner other than liabilities described in Section
4.2(a)(i).
(b) The Capital Account of each Partner shall be decreased by
(i)
the amount of cash distributions to such Partner and the Gross
Asset Value
of property distributed to such Partner (net of liabilities
assumed by
such Partner and liabilities to which such distributed property
is
subject), (ii) such Partner's share of the Partnership's Net
Losses, and
(iii) the amount of any liabilities of such Partner that are
assumed by
the Partnership other than liabilities described in Section
4.2(b)(i).
(c) A Partner who has more than one interest in the
Partnership
shall have a single Capital Account that reflects all of such
interests,
regardless of the class of interests owned by such Partner
(e.g., general
or limited) and regardless of the time or manner in which such
interests
are acquired.
(d) Upon the transfer by a Partner of Units (i) if such
transfer
does not cause a termination of the Partnership within the
meaning of
Section 708(b)(1)(B) of the Code, the Capital Account of the
transferor
Partner that is attributable to the transferred interest will be
carried
over to the transferee Partner and, if the Partnership has a
Section 754
election in effect, the Capital Account will not be adjusted to
reflect
any adjustment under Section 743 of the Code; or (ii) if such
transfer
causes a termination of the Partnership within the meaning of
Code Section
708(b)(1)(B), the income tax consequences of such termination
shall be
governed by the relevant provisions of Subchapter K of Chapter 1
of the
Code and the Regulations promulgated thereunder, and the initial
Capital
Accounts of the Partners in the Partnership resulting from
such
termination (which for all other purposes continues to be the
Partnership)
shall be determined in accordance with Regulation Sections
1.704-1(b)(2)(iv)(d), (e), (f), (g) and (l) under Section 704(b)
of the
Code and thereafter in accordance with this Section 4.2.
4.3 UNITS. The interests of the Limited Partners in the
Partnership
shall be in the form of Units issued by the Partnership, which
Units shall
represent an individual undivided interest in the rights of all
Limited Partners
in capital, profits, losses and distributions of or from the
Partnership. Unless
otherwise designated, all Units shall be Class A Units.
4.4 CLASS B UNITS. The General Partner is hereby authorized to
issue
additional interests in the Partnership to employees,
consultants, contractors
and other parties who perform services for or on behalf of the
Partnership on
the terms and conditions set forth in this Section 4.4. The
General Partner is
further authorized to issue to employees, consultants,
contractors and other
parties who perform services for or on behalf of the Partnership
options or
other rights to acquire such Units at some time in the future.
The interests in
the Partnership issued pursuant to this Section 4.4 shall be
designated as
"Class B Units."
(a) The Partnership shall designate the number of Class B
Units
issued hereunder, and shall revise Schedule A attached hereto to
reflect
the issuance of such Units, and the name and address of the
holder
thereof. The aggregate Percentages Interests of all outstanding
Class B
Units at any time shall not exceed 15 percent.
(b) Holders of the Class B Units shall not be entitled to any
vote
on any matter requiring the vote of the Limited Partners
hereunder.
(c) Except as expressly provided herein, Class B Units shall
be
identical in their terms to Class A Units and each Class A Unit
and Class
B Unit shall be entitled to equal shares of distribution and
allocations
as provided herein.
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5. DISTRIBUTIONS.
5.1 DISTRIBUTIONS. Distributions by the Partnership to the
Partners
shall be made at the times and in the aggregate amounts
determined by the
General Partner in its sole and absolute discretion and shall be
made to the
Partners in accordance with their respective Percentage
Interests.
5.2 CAPITAL ACCOUNT LIMITATION; LIQUIDATION. Upon the
liquidation of
the Partnership or of any Partner's interest in the Partnership
(as both are
defined in Section 5.3), liquidation proceeds, if any, shall be
distributed to
the extent of and in proportion to each Partner's positive
Capital Account
balance within the meaning of Regulations Section
1.704-1(b)(2)(ii)(b), after
giving effect to all allocations to such Partner under Article
6, and the
allocation of deemed gain or loss described in clause (b) of the
definition of
"Net Profits" and "Net Losses" set forth in Article 1.
5.3 CERTAIN DEFINITIONS. For purposes of this Agreement, (i)
the
term "liquidation of the Partnership" shall mean either (a) a
termination of the
Partnership, which shall be deemed to occur on the date upon
which the
Partnership ceases to be a going concern and is continued in
existence solely to
wind up its affairs, or (b) a termination of the Partnership
pursuant to Section
708(b)(1) of the Code; and (ii) the term "liquidation of a
Partner's interest in
the Partnership" shall mean the termination of the Partner's
entire interest in
the Partnership effected by a distribution, or a series of
distributions, by the
Partnership to the Partner in redemption or cancellation of such
Partner's Units
or, in the case of the General Partner, interest in the
Partnership.
6. ALLOCATIONS.
6.1 GENERAL ALLOCATIONS. Except as provided in Sections 6.2, 6.3
and
6.4, Net Profits, Net Losses and credits shall be allocated
among the Partners
in accordance with their respective Percentage Interests.
6.2 ALLOCATIONS OF GAINS.
(a) Gain realized upon the sale or other disposition of property
by
the Partnership, including deemed sales described in clause (b)
of the
definition of "Net Profits" and "Net Losses" set forth in
Article 1, shall
be allocated in the following order:
(b) There shall first be allocated to those Partners, if any,
who
have deficit balances in their Capital Accounts immediately
prior to such
sale or other disposition an amount of such gain equal to the
aggregate
amount of such deficit balances, which amount shall be allocated
in the
same proportion as such deficit balances.
(c) There shall next be allocated to each of the Partners gain
in
such amounts and proportions as are necessary so that the
positive Capital
Account balances of the Partners are in proportion to their
respective
Percentage Interests.
(d) Any remaining gain shall be allocated among the Partners
accordance with their respective Percentage Interests.
(e) If the Partnership shall realize, upon a sale or other
disposition, gain which does not constitute long-term capital
gain and to
which the provisions of Section 1231 of the Code do not apply,
the
foregoing provisions of this Section 6.2 shall be successively
applied to
(i) such gain, (ii) gain which is subject to the provisions of
Section
1231 of the Code and (iii) long-term capital gain.
6.3 ALLOCATION OF LOSSES. Losses realized upon the sale or
other
disposition of property by the Partnership, including deemed
sales described in
clause (b) of the definition of "Net Profits" and "Net Losses"
set forth in
Article 1, shall be allocated in the following order:
(a) There shall first be allocated to those Partners, if any,
who
have positive Adjusted Capital Accounts balances an amount of
such loss
necessary to reduce such positive Adjusted Capital Accounts
balances to
zero.
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(b) The balance of such loss shall be allocated to the
General
Partner.
6.4 SPECIAL ALLOCATIONS. Notwithstanding anything in this
Agreement
to the contrary:
(a) All nonrecourse deductions (as defined in Regulations
Section
1.704-2(b)(1)) shall be charged to the Capital Accounts of the
Partners in
proportion to their respective Percentage Interests.
(b) No Partner shall be allocated any item of loss or deduction
to
the extent said alloca
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