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EXHIBIT 3.26
LIMITED PARTNERSHIP AGREEMENT
OF
RUFFINO HILLS TRANSFER STATION LP
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LIMITED PARTNERSHIP AGREEMENT
OF
RUFFINO HILLS TRANSFER STATION LP
This Limited Partnership Agreement of Ruffino Hills Transfer
Station
LP (the "PARTNERSHIP"), a Texas limited partnership (as amended,
modified,
supplemented or restated from time to time in accordance with
the terms hereof,
this "AGREEMENT"), is made and entered into effective as of the
21st day of
April, 2004 (the "EFFECTIVE DATE"), by and between WS General
Partner, LLC, a
Texas limited liability company ("GENERAL PARTNER"), as general
partner, and
Waste Services Limited Partner, LLC, a Delaware limited
liability company
("LIMITED PARTNER"), as limited partner.
WITNESSETH:
WHEREAS, the General Partner and the Limited Partner desire
and
agree to form the Partnership as a limited partnership pursuant
to the Act and
this Agreement; and
NOW, THEREFORE, in consideration of the mutual covenants set
forth
herein, and for other good and valuable consideration, the
receipt and
sufficiency of which are hereby acknowledged, the parties
hereto, intending to
be legally bound, hereby enter into this Agreement.
ARTICLE I.
DEFINED TERMS
The defined terms used in this Agreement shall, unless the
context
otherwise requires, have the meanings specified in this Article
I.
1.1. Definitions. When used in this Agreement, the following
terms
will have the meanings set forth below.
"ACT" means the Texas Revised Limited Partnership Act, as
amended
from time to time.
"AFFILIATE" OR "AFFILIATED" shall mean, as to any Person, any
other
Person that directly or indirectly, through one or more
intermediaries controls,
is controlled by, or is under common control with such specified
Person. For the
purposes of this Agreement, a Person shall be deemed to control
a second Person
if (i) such first Person possesses the power, directly or
indirectly, to vote
50% or more of the securities having voting power for the
election of directors
of such second Person, or (ii) in the case of a second Person
that is a
partnership, such first Person is the general partner of such
partnership or
possesses, directly or indirectly, the power described in clause
(i) as to the
general partner of such partnership or the power to replace the
general partner
of such partnership, or (iii) such first Person possesses the
power to direct
the management and policies of such second Person, directly or
indirectly,
whether through the
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ownership of voting securities, by contract or otherwise; and
the terms
"affiliated," "controlling" and "controlled" have meanings
correlative to the
foregoing.
"CAPITAL ACCOUNT" means an account, with respect to each
Partner,
that is maintained for each Partner on the books of the
Partnership and which is
increased by (i) the amount of such Partner's Capital
Contributions when made
and (ii) the amount of any Net Profits allocated to such partner
pursuant to
Section 5.1 hereof, and decreased by (a) the amount of money and
the fair market
value of any property distributed to such Partner by the
Partnership and (b) the
amount of any Net Losses allocated to such Partner pursuant to
Section 5.1
hereof.
"CAPITAL CONTRIBUTION" means, with respect to any Partner,
the
amount which such Partner contributes or is deemed to contribute
to the
Partnership.
"CODE" means the United States Internal Revenue Code of 1986,
as
amended from time to time, and any successor thereto.
"COVERED PERSON" means any Partner, any Affiliate of a Partner
or
any officers, directors, managers, members, shareholders,
partners, employees,
representatives or agents of a Partner or their respective
Affiliates, or any
officer, employee or agent of the Partnership or its
Affiliates.
"DEBT" means (i) indebtedness for borrowed money, (ii)
obligations
evidenced by bonds, debentures, notes or other similar
instruments, (iii)
obligations to pay the deferred purchase price of property or
services, (iv)
obligations as lessee under leases which shall have been or
should be, in
accordance with generally accepted accounting principles,
recorded as capital
leases, and (v) obligations under direct or indirect guaranties
in respect of,
and obligations (contingent or otherwise) to purchase or
otherwise acquire, or
otherwise to assure a creditor against loss in respect of,
indebtedness or
obligations of others of the kinds referred to in clauses (i)
through (iv)
above.
"FISCAL YEAR" means the calendar year.
"GENERAL PARTNER" means WS General Partner, LLC and includes
any
Person who becomes a successor general partner of the
Partnership pursuant to
the provisions of this Agreement.
"INDEMNITEE" means any General Partner, any director, officer,
or
employee of any General Partner, any officer of the Partnership,
and any
shareholder, or shareholder of a shareholder, of any General
Partner, to the
extent any such shareholder is involved in actions or
proceedings involving any
other Indemnitee identified herein and such shareholder and all
such other
Indemnitees are represented by the same.
"LIMITED PARTNER" means Waste Services Limited Partner, LLC
and
includes any Person who is admitted as an additional limited
partner of the
Partnership or a substituted limited partner of the Partnership
pursuant to the
provisions of this Agreement and "LIMITED PARTNERS" means any of
such Persons
when acting in their capacities as a limited partner of the
Partnership.
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"NET PROFITS AND NET LOSSES", as the case may be, shall mean
the
Partnership's income and losses, including the Partnership's
realized or
allocated share of depreciation and amortization expense, and
any amounts of
gain or loss realized by the Partnership upon the sale of all or
any portion of
Partnership property, after deducting all expenses incurred in
connection with
the Partnership's business.
"PARTNER" means either the General Partner or the Limited
Partner,
and "PARTNERS" means the General Partner and the Limited
Partner.
"PARTNERSHIP EXPENSES" means all costs, expenses and charges
incurred with respect to the acquisition, improvement,
ownership, operation,
administration, and maintenance of the Partnership and the
Partnership Property,
as determined by the General Partner.
"PARTNERSHIP INTEREST" means an ownership interest in the
Partnership held by any Partner, which includes any benefits and
obligations
attributable to such Partnership Interest, including a Partner's
share of the
profits and losses of the Partnership and the right to receive
distributions of
Partnership assets in accordance with the provisions of this
Agreement and the
Act.
"PARTNERSHIP PROPERTY" means any and all assets and real,
personal,
tangible and intangible property owned by the Partnership.
"PARTNERSHIP UNIT" means a fractional, undivided share of
the
Partnership Interests of all Partners issued hereunder. The
allocation of
Partnership Units among the Partners shall be as set forth on
Exhibit A, as may
be amended from time to time.
"PERSON" means an individual or a corporation, partnership,
limited
liability company, trust, unincorporated organization, joint
stock company,
joint venture, association or other entity, or any government,
or any agency or
political subdivision thereof.
"REGULATIONS" means the regulations promulgated by the United
States
Department of the Treasury pursuant to and in respect of
provisions of the Code.
All references herein to sections of the Regulations shall
include any
corresponding provision or provisions of succeeding, similar,
substitute
proposed or final Regulations.
"SHARING PERCENTAGE" means (i) 0.5% as to the General Partner
and
(ii) 99.5% as to the Limited Partner.
"TRANSFER" means a sale, assignment, transfer, gift,
encumbrance,
hypothecation, mortgage, pledge, exchange or any other
conveyance or disposition
by law (including by merger of a Partner) or otherwise,
voluntarily or
involuntarily.
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ARTICLE II.
GENERAL
2.1. Purpose. The Partnership's business and purpose shall
consist
of any and all lawful businesses and purposes permitted under
the Act and under
applicable law, and such activities as are necessary, incidental
or appropriate
in connection therewith.
2.2. Powers. The Partnership shall be empowered to do any and
all
acts necessary, appropriate, proper, advisable, incidental to or
convenient for
the furtherance and accomplishment of the purposes and business
described in
Section 2.1 herein and for the protection and benefit of the
Partnership.
2.3. Name. The name of the Partnership shall be "Ruffino
Hills
Transfer Station LP," under which all business affairs of the
Partnership shall
be conducted.
2.4. Names and Addresses of Partners. The names and addresses of
the
Partners are set forth in Exhibit A. The Partners agree that the
rights, duties
and liabilities of the Partners shall be as provided in the Act,
except as
otherwise provided herein.
2.5. Place of Business. The principal place of business of
the
Partnership shall be located at 7025 East Greenway Parkway,
Suite 100,
Scottsdale, Arizona 85254. The General Partner may change the
location of such
principal place of business at any time and from time to time as
it (in its sole
discretion) deems appropriate. The Partnership may also have
such other places
of business as the General Partner determines to be
appropriate.
2.6. Certificate of Limited Partnership. The General Partner
has
caused to be filed a Certificate of Limited Partnership with the
Secretary of
State of the State of Texas.
2.7. Additional Filings. The General Partner shall cause the
Partnership to make any filings or disclosures required by the
laws of any other
state with respect to the qualification of the Partnership as a
foreign limited
partnership under the internal laws of each such state.
2.8. Ownership. All property owned by the Partnership shall be
owned
by the Partnership as an entity and, insofar as permitted by
applicable law, no
Partner shall have any ownership interest in any Partnership
Property in its
individual name or right, and each Partner's Partnership
Interest shall be
personal property for all purposes.
2.9. Term. The term of the Partnership commenced on the date
the
Certificate of Limited Partnership of the Partnership was filed
with the
Secretary of State of the State of Texas and shall continue
until the first to
occur of (a) December 31, 2053 or (b) the dissolution of the
Partnership
pursuant to this Agreement. The separate legal existence of the
Partnership
shall continue until the cancellation of the Certificate of
Limited Partnership
of the Partnership in the manner required by the Act and in
accordance with
Section 9.5.
2.10. Registered Office; Registered Agent. The address of
the
registered office of the Partnership in the State of Texas is
CT
Corporation. The name and address of the
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registered agent for service of process on the Partnership in
the State of Texas
is 350 N. St. Paul St., Dallas, TX 75201. The General Partner
may change the
registered office and the registered agent by thirty (30) days
prior written
notice to the other Partners.
ARTICLE III.
CAPITAL
3.1. Capital Contributions. The Partners shall make such
Capital
Contributions as are mutually agreed to by the Partners. All
such Capital
Contributions shall be made in proportion to the Partners'
respective Sharing
Percentages.
3.2. Return of Capital. No Partner shall have the right to
demand
or receive the return of such Partner's Capital Contributions to
the
Partnership, even in the event of withdrawal, whether or not
such withdrawal is
permitted hereunder or in breach hereof.
3.3. Interest on Capital Contributions. No Partner shall
receive
any interest on such Partner's Capital Contributions or such
Partner's Capital
Account, notwithstanding any disproportion therein as between
the Partners.
3.4. Certification. The Partnership shall issue to each Partner
a
certificate summarizing the terms of such Partner's interest in
the Partnership,
including the number of Partnership Units owned and the
Percentage Interest
represented by such Partnership Units as of the date of such
certificate. The
certificate representing each Partner's Partnership Units shall
be endorsed with
the following legend:
THE SECURITY REPRESENTED BY THIS CERTIFICATE HAS NOT BEEN
REGISTERED UNDER
THE SECURITIES ACT OF 1933 AS AMENDED. IT MAY NOT BE SOLD,
OFFERED FOR SALE,
PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE
REGISTRATION STATEMENT AS
TO THE SECURITY UNDER SAID ACT OR AN EXEMPTION FROM REGISTRATION
UNDER THE ACT.
ARTICLE IV.
ACCOUNTING; BOOKS AND RECORDS; TAX MATTERS
4.1. Bank Accounts. The General Partner will, at the expense of
the
Partnership, deposit all funds collected by it relating to
Partnership Property
into an account or accounts in the name of the Partnership; and
withdrawals from
said accounts shall be made by signatures only of such Persons
as are designated
by the General Partner to act on behalf of the Partnership.
4.2. Partnership Records. The General Partner shall, at the
expense
of the Partnership, keep proper books of record and account in
which full, true
and correct entries shall be made of all dealings and
transactions in relation
to the Partnership's business and activities, and shall, at its
own expense,
keep proper books of record and account in which full, true and
correct entries
shall be made of all dealings and transactions in relation to
the General
Partner's business and activities. The General Partner shall
permit
representatives of the other Partners
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upon reasonable notice, for any purpose reasonably related to
its interest in
the Partnership, to examine and make abstracts from any such
books and records,
at any reasonable time during reasonable business hours, and to
discuss the
business and financial and other condition of the Partnership
and the General
Partner with officers, accountants, and other representatives of
the General
Partner.
4.3. Financial Accounting and Tax Reporting. The General
Partner
shall prepare and cause to be furnished to each of the Partners
in a timely
manner copies of (a) such annual and interim financial reports
and statements as
are required to be prepared under the terms of any debt
obligations of the
Partnership or any of its Affiliates, (b) such other financial
reports and
statements as the General Partner determines are useful or
appropriate, and (c)
all necessary tax reporting information.
4.4. Preparation of Tax Returns. The General Partner shall
arrange
for the preparation and timely filing of all returns required of
the Partnership
for federal and state income tax purposes.
4.5. Tax Elections. For federal income tax purposes, the
Company
shall be disregarded as an entity separate from the owner of its
partners (which
are also disregarded) pursuant to Treasury Regulations
section
301.7701-3(b)(1)(ii). The General Partner shall, in its sole and
absolute
discretion, determine whether to make or revoke any elections
available to the
Partnership under applicable tax laws. If the Partnership
becomes classified as
a partnership (rather than as a disregarded entity) for federal
income tax
purposes, the General Partner shall have the right, in
connection with any
assignment of a Partner's interest in the Partnership permitted
hereunder, to
make an election in the manner provided in Regulations Section
1.754-1(b) on
behalf of the Partnership to adjust the basis of Partnership
property in the
manner provided in Code Sections 734(b) and 743(b).
4.6. Tax Matters Partner. If the Partnership becomes classified
as
a partnership (rather than as a disregarded entity) for federal
income tax
purposes, the General Partner shall be the "tax matters partner"
of the
Partnership for federal income tax purposes under Section
6231(a)(7)of the Code.
ARTICLE V.
ALLOCATIONS
5.1. Allocation of Net Profits and Net Losses to Capital
Accounts.
Net Profits and Net Losses (and items thereof) for a Fiscal Year
or other period
shall be allocated among the Partners for Capital Account
purposes and, subject
to Section 5.2 hereof, for tax purposes, in proportion to their
respective
Sharing Percentages.
5.2. Tax Allocations; Code Section 704(c). If the
Partnership
becomes classified as a partnership (rather than as a
disregarded entity) for
federal income tax purposes, the following provisions of this
Section 5.2 shall
apply:
(a) Proportional to Net Income or Net Loss. Except as
otherwise
provided in this Section 5.2, for each taxable period, each item
of Partnership
income, gain, deduction and
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loss for tax purposes shall be allocated among the Partners in
the same
proportion as they share the corresponding item of Net Profits,
Net Losses or
other item of Partnership income, gain, loss or deduction for
such period,
(b) Contribution of Property. In accordance with Code
Section
704(c) and the Regulations thereunder, income, gain, loss, and
deduction as to
any property contributed to the capital of the Partnership
shall, for tax
purposes, be allocated among the Partners so as to take into
account any
variation between the adjusted basis of such property to the
Partnership for
federal income tax purposes and the fair market value of such
property.
(c) Asset Value Adjustment. If the value of any Partnership
asset
is adjusted pursuant to the provisions of Code Section 704(b)
and the
Regulations thereunder, subsequent allocations of income, gain,
loss, and
deduction as to such asset shall, for tax purposes, be made so
as to eliminate
as quickly as possible any variation between the adjusted basis
of such asset
for federal income tax purposes and its fair market value in the
same manner as
pursuant to Code Section 704(c) and the Regulations thereunder.
Any elections or
other decisions relating to such allocations shall be made by
the General
Partner in any manner that reasonably reflects the purpose and
intention of this
Agreement.
(d) Discretion; Effect. Any election or other decision relating
to
allocations pursuant to this Section 5.2 shall be made by the
General Partner in
any manner that reasonably reflects the purposes and intention
of this
Agreement. Allocations pursuant to this Section 5.2 are for
purposes of federal,
state and local taxes only and shall not affect or in any way be
taken into
account in computing any Partner's Capital Account balance or
share of Net
Profits, Net Losses or distributions pursuant to any provision
of the Agreement.
ARTICLE VI.
DISTRIBUTIONS
At such times as are determined by the General Partner, the
General
Partner shall cause the Distributable Cash of the Partnership to
be distributed
among the Partners in proportion to their respective Sharing
Percentages. For
these purposes, the "DISTRIBUTABLE CASH" of the Partnership
means the net cash
available from Partnership operations and transactions
(excluding cash from
Capital Contributions of the Partners) as of the end of the
quarter or after the
closing of a transaction, as the case may be, immediately
preceding the date of
a distribution, as determined in the reasonable judgment of the
General Partner,
after paying Partnership Expenses, making all required debt
service payments on
Debt of the Partnership, and establishing or maintaining working
capital
reserves.
ARTICLE VII.
MANAGEMENT AND OPERATION OF BUSINESS
7.1. Management. Except as otherwise provided in this
Agreement,
the management and operation of the Partnership shall be vested
exclusively in
the General Partner, which shall have the power on behalf of the
Partnership to
carry out any and all of the purposes
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of the Partnership and to perform all acts and enter into and
perform all
contracts and other undertakings that it may in its discretion
deem necessary or
advisable or incidental thereto. Except as otherwise expressly
provided herein,
the General Partner shall have, and shall have full authority in
its discretion
to exercise, on behalf of and in the name of the Partnership,
all rights and
powers of a general partner of a limited partnership under the
Act necessary or
convenient to carry out the purposes of the Partnership. Without
limiting the
foregoing, the General Partner is hereby authorized and
empowered in the name of
and on behalf of the Partnership:
(a) to initiate, investigate, research, negotiate, structure
and
arrange the acquisition, lease, or disposition of Partnership
Property;
(b) to possess, monitor, manage, or otherwise deal in, and
to
exercise all rights, powers, privileges and other incidents of
ownership or
possession with respect to Partnership Property;
(c) to employ or consult such Persons as it shall deem
necessary,
appropriate or advisable for the operation and management of the
Partnership,
including, without limitation, brokers, accountants, engineers,
attorneys or
specialists in any field of endeavor whatsoever, including such
Persons who may
be Limited Partners or affiliated with or controlled by the
General Partner, and
to authorize any such Person to act for and on behalf of the
Partnership;
(d) to deposit the funds of the Partnership in the
Partnership's
name in any bank or trust company and to entrust to such bank or
trust company
any of the securities, monies, documents and papers belonging to
or relating to
the Partnership; or to deposit in and entrust to any brokerage
firm that is a
member of any national securities exchange any of said funds,
securities,
monies, documents and papers belonging to or relating to the
Partnership;
(e) to make appropriate elections and other decisions with
respect
to tax and accounting matters;
(f) to enter into, make, deliver and perform all contracts,
agreements, instruments and other undertakings as the General
Partner may
determine to be necessary, advisable, appropriate or incidental
to the carrying
out of the objects and purposes set forth above or contemplated
hereby, the
taking of such action by the General Partner to be conclusive
evidence of such
determination;
(g) to acquire and enter into any co
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