Exhibit 3.66
FIRST
AMENDED AND RESTATED
AGREEMENT OF LIMITED PARTNERSHIP
OF
PAVILLION NORTH,
A LIMITED PARTNERSHIP
TABLE OF CONTENTS
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SECTION
1
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THE
PARTNERSHIP
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1
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1.1
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Organization
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1
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1.2
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Partnership
Name
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1
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1.3
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Purpose
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1
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1.4
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Principal Place
of Business
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1
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1.5
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Term
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2
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1.6
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Filings; Agent
for Service of Process
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2
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1.7
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Independent
Activities
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2
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1.8
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Definitions
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2
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SECTION 2
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PARTNERS' CAPITAL ACCOUNTS
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2
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2.1
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Contributions
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2
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2.2
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Capital
Accounts
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2
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2.3
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Other
Matters
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2
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SECTION
3
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ALLOCATIONS
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3
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3.1
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Profits
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3
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3.2
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Losses
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3
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3.3
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Special
Allocations
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3
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3.4
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Curative
Allocations
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4
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3.5
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Other
Allocation Rules
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4
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3.6
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Tax
Allocations: Code Section 704(c)
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5
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SECTION 4
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DISTRIBUTIONS
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5
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SECTION 5
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MANAGEMENT
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5
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5.1
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Authority of
the General Partners
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5
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5.2
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Right to Rely
on General Partners
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6
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5.3
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Limitations on
Authority of General Partners
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7
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5.4
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Duties and
Obligations of General Partners
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7
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5.5
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Indemnification
of General Partners
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8
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5.6
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Compensation
and Loans
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8
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5.7
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Operating
Restrictions
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8
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SECTION 6
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ROLE OF LIMITED PARTNERS
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9
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6.1
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Limitation on
Rights or Powers
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9
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6.2
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Voting
Rights
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9
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6.3
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Other
Rights
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9
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SECTION 7
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BOOKS AND RECORDS
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9
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7.1
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Books and
Records
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9
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7.2
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Annual
Reports
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9
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i
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7.3
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Tax
Information
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9
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SECTION 8
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AMENDMENTS; MEETINGS
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10
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8.1
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Amendments
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10
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8.2
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Meetings of the
Partners
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10
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SECTION 9
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TRANSFERS OF INTERESTS
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10
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9.1
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Restriction on
Transfers
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10
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9.2
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Permitted
Transfers
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10
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9.3
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Conditions to
Permitted Transfers
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10
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9.4
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Right of First
Refusal
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11
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9.5
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Prohibited
Transfers
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12
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9.6
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Rights of
Unadmitted Assignees
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12
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9.7
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Admission of
Interest Holders as Partners
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12
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9.8
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Distributions
and Allocations in Respect to Transferred Interests
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12
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9.9
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Withdrawal
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13
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SECTION 10
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GENERAL PARTNERS
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13
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10.1
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Additional
General Partners
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13
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10.2
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Covenant Not to
Withdraw, Transfer, or Dissolve
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13
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10.3
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Permitted
Transfers
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13
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10.4
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Prohibited
Transfers
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13
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10.5
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Termination of
Status as General Partner
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13
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SECTION 11
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DISSOLUTION AND WINDING UP
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14
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11.1
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Liquidating
Events
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14
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11.2
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Winding
Up
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14
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11.3
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Compliance With
Certain Requirements of Regulations
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15
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11.4
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Deemed
Distribution and Recontribution
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15
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11.5
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Notice of
Dissolution
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15
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SECTION 12
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POWER OF ATTORNEY
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15
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12.1
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General
Partners as Attorneys-In-Fact
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15
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12.2
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Nature as
Special Power
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15
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SECTION 13
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MISCELLANEOUS
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16
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13.1
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Waiver
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16
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13.2
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Notices
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16
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13.3
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Applicable
Law
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16
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13.4
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Counterparts
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16
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13.5
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Entire
Agreement
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16
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13.6
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Parties
Bound
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16
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13.7
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Further
Action
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16
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13.8
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Variation
Pronouns
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16
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EXHIBIT A
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Partners' Names, Addresses, Capital Contributions, and Percentage
Interests
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APPENDIX
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Definitions
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ii
FIRST
AMENDED AND RESTATED
AGREEMENT OF LIMITED PARTNERSHIP OF
PAVILLION NORTH,
A LIMITED PARTNERSHIP
This
Agreement is entered into and shall be effective as of the 13th day
of December, 1993, by and among PAVILLION NURSING CENTER
NORTH, INC. and HOLLIS J. GARFIELD as the General Partners,
and the Persons whose names are set forth on EXHIBIT A
attached hereto, as the Limited Partners.
R E C I T A L S:
WHEREAS,
PAVILLION NORTH, a Limited Partnership was originally organized
pursuant to the Original Partnership Agreement which was
subsequently amended; and
WHEREAS,
an original Certificate of Limited Partnership for the Partnership
was filed in Allegheny County on February 9, 1972, which
Certificate was subsequently amended by a First Amendment to
Certificate of Limited Partnership executed by the Partners on
August 22, 1978, by a Second Amendment to Certificate of
Limited Partnership executed by the Partners on July 20, 1979,
by a Third Amendment to Certificate of Limited Partnership executed
by the Partners on November 3, 1980 and by a Fourth Amendment
to Certificate of Limited Partnership executed by the Partners on
March 30, 1984; and
WHEREAS,
SIDNEY GARFIELD died on January 2, 1991, and the Partners have
agreed that the General Partner Interest of SIDNEY GARFIELD be
converted into a Limited Partner Interest and the Limited Partner
Interest of HOLLIS J. GARFIELD be converted into a General Partner
Interest; and
WHEREAS,
EVELYN R. GARFIELD as the Executrix of the estate of SIDNEY
GARFIELD has pursuant to the terms of his will assigned on
December 13, 1993 the estate's General and Limited Partner
Interests in the Partnership 24% to EVELYN R. GARFIELD as the
trustee of the SIDNEY GARFIELD TRUST A REVERSE QTIP TRUST and 21.6%
to EVELYN R. GARFIELD as the trustee of the SIDNEY R. GARFIELD
TRUST A EVELYN TRUST; and
WHEREAS,
as a result of the foregoing, the capital contributions and shares
of profits and losses of the Partners in the Partnership are as set
forth on EXHIBIT A attached; and
NOW,
THEREFORE, the Partners hereby amend and restate the Original
Partnership Agreement as amended upon the following terms and
conditions:
SECTION 1
THE PARTNERSHIP
1.1
Organization.
The Partnership was originally organized as
a limited partnership under the Pennsylvania Limited Partnership
Act of April 12, 1917, P.L. 55, as amended ("Prior Act"), and
the Partners will now organize the Partnership as a limited
partnership pursuant to the provisions of the Act.
1.2
Partnership Name.
The name of the Partnership shall continue
to be PAVILLION NORTH, a Limited Partnership and all business of
the Partnership shall be conducted in such name, dba Wexford House
Nursing Center.
1.3
Purpose. The
purpose of the Partnership is to acquire, improve, lease, operate,
and hold the nursing center located at the principal place of
business of the Partnership and to engage in any and all activities
related or incidental thereto. The Partnership shall engage in no
other business.
1.4
Principal Place of Business.
The principal place of business of the
Partnership is 9800 Old Perry Highway, Wexford, Allegheny County,
Pennsylvania 15090. The General Partners may change the
principal place of business of
the Partnership to any other place within the Commonwealth of
Pennsylvania upon at least 10 days notice to the Limited
Partners.
1.5
Term. The
term of the Partnership shall continue perpetually unless the
Partnership is earlier dissolved, wound-up, and liquidated as
provided in Section 11 hereof.
1.6
Filings; Accent for Service of
Process .
(a) The
General Partners shall cause a First Amended and Restated
Certificate of Limited Partnership and a Certificate of Summary of
Record to be filed in the officer of the Department of State in
accordance with the provisions of the Act.
(b) The
registered office of the Partnership shall be 9800 Old Perry
Highway, Wexford, Pennsylvania 15090, or any successor as appointed
by the General Partners. The General Partners may change the office
of the Partnership to another location within the Commonwealth of
Pennsylvania upon at least 10 days notice to the Limited
Partners.
(c) Upon
the dissolution of the Partnership, the General Partners (or, in
the event there is no remaining General Partner, any Person elected
pursuant to Section 11.2 hereof) shall promptly execute
and cause to be filed a Certificate of Cancellation in accordance
with the Act and the laws of any other states or jurisdictions in
which the Partnership has filed certificates.
1.7
Independent Activities.
Each General Partner and each Limited
Partner may, notwithstanding this Agreement, engage in whatever
activities they choose, whether the same are competitive with the
Partnership or otherwise, without having or incurring any
obligation to offer any interest in such activities to the
Partnership or any Partner. Neither this Agreement nor any activity
undertaken pursuant hereto shall prevent any Partner from engaging
in such activities, or require any Partner to permit the
Partnership or any Partner to participate in any such activities,
and as a material part of the consideration for the execution of
this Agreement by each Partner, each Partner hereby waives,
relinquishes, and renounces any such right or claim of
participation.
1.8
Definitions.
Capitalized words and phrases used in this
Agreement have the meanings set forth therefor in the Appendix
hereto.
SECTION 2
PARTNERS' CAPITAL ACCOUNTS
2.1
Contributions.
The names, addresses, Capital
Contributions, and Percentage Interests of the Partners are set
forth on EXHIBIT A attached hereto.
2.2
Capital Accounts.
The General Partners shall maintain Capital
Accounts for each of the Partners and Interest Holders in
accordance with the provisions of the Appendix with respect
thereto.
2.3
Other Matters
.
(a) Except
as otherwise provided in this Agreement, no Partner shall demand or
receive a return of her Capital Contributions or withdraw from the
Partnership without the consent of all Partners. Under
circumstances requiring a return of any Capital Contributions, no
Partner shall have the right to receive property other than cash
except as may be specifically provided herein.
(b) No
Partner shall receive any interest with respect to her Capital
Contributions or her Capital Account except as otherwise provided
in this Agreement.
(c) No
Limited Partner shall be liable for the debts, liabilities,
contracts or any other obligations of the Partnership.
2
SECTION 3
ALLOCATIONS
3.1
Profits.
After giving effect to the special
allocations set forth in Sections 3.3 and 3.4 hereof,
Profits for any fiscal year shall be allocated among the General
Partners and other Interest Holders in proportion to their
Percentage Interests.
3.2
Losses.
After giving effect to the special
allocations set forth in Sections 3.3 and 3.4 hereof,
Losses for any fiscal year shall be allocated among the General
Partners and Interest Holders in proportion to their Percentage
Interests; provided, however, the Losses so allocated cannot cause
any Interest Holder to have an Adjusted Capital Account Deficit at
the end of any fiscal year. All Losses in excess of such limitation
shall be allocated to the General Partners in proportion to their
Percentage Interests in the Partnership.
3.3
Special Allocations.
The following special allocations shall be
made in the following order:
(a)
Minimum Gain Chargeback.
Except as otherwise provided in
Section 1.704-2(f) of the Regulations, notwithstanding any
other provision of this Section 3 , if there is a net
decrease in Partnership Minimum Gain during any Partnership fiscal
year, each General Partner and Interest Holder shall be specially
allocated items of Partnership income and gain for such year (and,
if necessary, subsequent years) in an amount equal to such Person's
share of the net decrease in Partnership Minimum Gain, determined
in accordance with Regulations Section 1.704-2(g). Allocations
pursuant to the previous sentence shall be made in proportion to
the respective amounts required to be allocated to each General
Partner and Interest Holder pursuant thereto. The items to be so
allocated shall be determined in accordance with Sections
1.7042(f)(6) and 1.704-2 (j) (2) of the Regulations. This
Section 3.3 (a) is intended to comply with the minimum
gain chargeback requirement in Section 1.704-2(f) of the
Regulations and shall be interpreted consistently
therewith.
(b)
Partner Minimum Gain Chargeback.
Except as otherwise provided in
Section 1.704-2(i)(4) of the Regulations, notwithstanding any
other provision of this Section 3 , if there is a net
decrease in Partner Nonrecourse Debt Minimum Gain attributable to a
Partner Nonrecourse Debt during any Partnership fiscal year, each
Person who has a share of the Partner Nonrecourse Debt Minimum Gain
attributable to such Partner Nonrecourse Debt, determined in
accordance with Section 1.704-2(i)(5) of the Regulations,
shall be specially allocated items of Partnership income and gain
for such year (and, if necessary, subsequent years) in an amount
equal to such Person's share of the net decrease in Partner
Nonrecourse Debt Minimum Gain attributable to such Partner
Nonrecourse Debt, determined in accordance with Regulations
Section 1.704-2(i) (4). Allocations pursuant to the
previous sentence shall be made in proportion to the respective
amounts required to be allocated to each General Partner and
Interest Holder pursuant thereto. The items to be so allocated
shall be determined in accordance with Sections
1.704-2(i) (4) and 1.704-2 (j) (2) of the
Regulations. This Section 3.3(b) is intended to comply
with the minimum gain chargeback requirement in
Section 1.704-2(i) (4) of the Regulations and shall
be interpreted consistently therewith.
(c)
Qualified Income Offset.
In the event any Interest Holder
unexpectedly receives any adjustments, allocations, or
distributions described in Section 1.704-1(b)(2)(ii)(d)(4),
1.7041(b) (2) (ii) (d) (5) or 1.704-1(b) (2) (ii)
(d) (6) of the Regulations, items of Partnership income and
gain shall be specially allocated to each such Interest Holder in
an amount and manner sufficient to eliminate, to the extent
required by the Regulations, the Adjusted Capital Account Deficit
of such Interest Holder as quickly as possible, provided that an
allocation pursuant to this Section 3.3(c) shall be
made only if and to the extent that such Interest Holder would have
an Adjusted Capital Account Deficit after all other allocations
provided for in this Section 3 have been tentatively
made as if this Section 3.3(c) were not in the
Agreement.
3
(d)
Gross Income Allocation.
In the event any Interest Holder has a
deficit Capital Account at the end of any Partnership fiscal year
which is in excess of the sum of (i) the amount such Interest
Holder is obligated to restore pursuant to any provision of this
Agreement, and (ii) the amount such Interest Holder is deemed
to be obligated to restore pursuant to the penultimate sentences of
Regulations Sections 1.704-2 (g) (1) and 1.704-2(i)(5), each
such Interest Holder shall be specifically allocated items of
Partnership income and gain in the amount of such excess as quickly
as possible, provided that an allocation pursuant to this
Section 3.3(d) shall be made only if and to the extent
that such Interest Holder would have a deficit Capital Account in
excess of such sum after all other allocations provided for in this
Section 3 have been made as if Section 3.3
(c) hereof and this Section 3.3 (d ) were not in
the Agreement.
(e)
Partner Nonrecourse Deductions.
Any Partner Nonrecourse Deductions for any
fiscal year or other period shall be specially allocated to the
Partner or Interest Holder who bears the economic risk of loss with
respect to the Partner Nonrecourse Debt to which such Partner
Nonrecourse Deductions are attributable in accordance with
Regulations Section 1.704-2(i)(1).
(f)
Section 754 Adjustments.
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)(2) or
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 to a General Partner or Interest Holder in
complete liquidation of her interest in the Partnership, the amount
of such adjustment to the Capital Accounts shall be treated as an
item of gain (if the adjustment increases the basis of the asset)
or loss (if the adjustment decreases such basis) and such gain or
loss shall be specially allocated to the General Partners and
Interest Holders in accordance with their interests in the
Partnership in the event that Regulations
Section 1.704-1(b)(2)(iv)(m)(2) applies, or to the General
Partner or Interest Holder to whom such distribution was made in
the event that Regulations Section 1.704-1(b) (iv)
(m) (4) applies. Capital Accounts are required to be adjusted
pursuant to such Section of the Regulations.
3.4
Curative Allocations.
The allocations set forth in Sections
3.2 , 3.3(a), 3.3(b) , 3.3(c), 3.3(d), 3.3(e) and
3.3(f ) hereof (the "Regulatory Allocations") are intended
to comply with certain requirements of the Regulations. It is the
intent of the Partners that, to the extent possible, all Regulatory
Allocations shall be offset either with other Regulatory
Allocations or with special allocations of other items of
Partnership income, gain, loss, or deduction pursuant to this
Section 3.4 . Therefore, notwithstanding any other
provision of this Section 3 (other than the Regulatory
Allocations), the General Partners shall make such offsetting
special allocations of Partnership income, gain, loss, or deduction
in whatever manner they determine appropriate so that, after such
offsetting allocations are made, each General Partner's and
Interest Holder's Capital Account balance is, to the extent
possible, equal to the Capital Account balance such General Partner
or Interest Holder would have had if the Regulatory Allocations
were not part of the Agreement and all Partnership items were
allocated pursuant to Sections 3.1 and 3.2 . In
exercising their discretion under this Section 3.4 ,
the General Partners shall take into account future Regulatory
Allocations under Sections 3.3(a) and 3.3(b ) that,
although not yet made, are likely to offset other Regulatory
Allocations previously made under Section 3.3(f)
.
3.5
Other Allocation Rules
.
(a) For
purposes of determining the Profits, Losses, or any other items
allocable to any period, Profits, Losses, and any such other items
shall be determined on a daily, monthly, or other basis, as
determined by the General Partners using any permissible method
under Code Section 706 and the Regulations
thereunder.
(b) All
allocations to the Interest Holders and General Partners pursuant
to this Section 3 shall, except as otherwise provided, be
divided among them in proportion to their Percentage
Interests.
4
(c) Except
as otherwise provided in this Agreement, all items of Partnership
income, gain, loss, deduction, and any other allocations not
otherwise provided for shall be divided among the General Partners
and Interest Holders in the same proportions as they share Profits
or Losses, as the case may be, for the year. Credits shall be
allocated in the same manner as Profits.
(d) The
Partners are aware of the income tax consequences of the
allocations made by this Section 3 and hereby agree to be
bound by the provisions of this Section 3 in reporting their
shares of Partnership income and loss for income tax
purposes.
(e) To
the extent permitted by Section 1.704-2(h)(3) of the
Regulations, the General Partners shall endeavor to treat
distributions as having been made from the proceeds of a
Nonrecourse Liability or a Partner Nonrecourse Debt only to the
extent that such distributions would cause or increase an Adjusted
Capital Account Deficit for any Interest Holder.
3.6
Tax Allocations: Code Section 704
(c). In accordance with Code
Section 704(c) and the Regulations thereunder, income, gain,
loss, and deduction with respect to any property contributed to the
capital of the Partnership shall, solely for tax purposes, be
allocated among the General Partners and Interest Holders so as to
take account of any variation between the adjusted basis of such
property to the Partnership for federal income tax purposes and its
initial Gross Asset Value. In the event the Gross Asset Value of
any Partnership asset is adjusted pursuant to 1 (ii) of the
Appendix hereto, subsequent allocations of income, gain, loss, and
deduction with respect to such asset shall take account of any
variation between the adjusted basis of such asset for federal
income tax purposes and its Gross Asset Value in the same manner as
under Code Section 704(c) and the Regulations
thereunder.
SECTION 4
DISTRIBUTIONS
Except
as otherwise provided in Section 11 hereof, the
Partnership shall distribute cash or Property at such times, if
any, as the General Partners may determine, among the General
Partners and Interest Holders in proportion to their Percentage
Interests.
SECTION 5
MANAGEMENT
5.1
Authority of the General Partners.
Except to the extent otherwise provided
herein, the General Partners shall have the sole and exclusive
right to manage the business of the Partnership and shall have all
of the rights and powers which may be possessed by general partners
under the Act including, without limitation, the right and power
to:
(a) acquire
by purchase, lease, or otherwise any real or personal property
which may be necessary, convenient, or incidental to the
accomplishment of the purposes of the Partnership;
(b) operate,
maintain, finance, improve, construct, own, grant options with
respect to, sell, convey, assign, mortgage, and lease any real
estate and any personal property necessary, convenient, or
incidental to the accomplishment of the purposes of the
Partnership;
(c) execute
any and all agreements, contracts, documents, certifications, and
instruments necessary or convenient in connection with the
management, maintenance, and operation of Property, or in
connection with managing the affairs of the Partnership, including
executing amendments to the Agreement and the Certificate in
accordance with the terms of the Agreement, pursuant to any power
of attorney granted by the Limited Partners to the General
Partners;
(d) borrow
money and issue evidences of indebtedness necessary, convenient, or
incidental to the accomplishment of the purposes of the
Partnership, and secure the same by mortgage, pledge, or other lien
on any Property;
5
(e) execute,
in furtherance of any or all of the purposes of the Partnership,
any deed, lease, mortgage, deed of trust, mortgage note, promissory
note, bill of sale, contract, or other instrument purporting to
convey or encumber any or all of the Property;
(f) prepay
in whole or in part, refinance, recast, increase, modify, or extend
any liabilities affecting the Property and in connection therewith
execute any extensions or renewals of encumbrances on any or all of
the Property;
(g) care
for and distribute funds to the General Partners and Interest
Holders by way of cash, income, return of capital, or otherwise,
all in accordance with the provisions of this Agreement, and
perform all matters in furtherance of the objectives of the
Partnership or this Agreement;
(h) contract
on behalf of the Partnership for the employment and services of
employees and/or independent contractors, such as lawyers and
accountants, and delegate to such Persons the duty to manage or
supervise any of the assets or operations of the
Partnership;
(i) engage
in any kind of activity and perform and carry out contracts of any
kind (including contracts of insurance covering risks to Property
and General Partner liability) necessary or incidental to, or in
connection with, the accomplishment of the purposes of the
Partnership, as may be lawfully carried on or performed by a
partnership under the laws of each state in which the Partnership
is then formed or qualified;
(j) make
any and all elections for federal, state, and local tax purposes
including, without limitation, any election, if permitted by
applicable law: (i) to adjust the basis of Property pursuant
to Code Sections 754, 734 (b) and 743 (b), or comparable
provisions of state or local law, in connection with transfers of
Partnership interests and Partnership distributions; (ii) to
extend the statute of limitations for assessment of tax
deficiencies against General Partners and Interest Holders with
respect to adjustments to the Partnership's federal, state, or
local tax returns; and (iii) to represent the Partnership, the
General Partners, and the Interest Holders before taxing
authorities or courts of competent jurisdiction in tax matters
affecting the Partnership, the General Partners, and the Interest
Holders in their capacities as General Partners or Interest
Holders, and to execute any agreements or other documents relating
to or affecting such tax matters, including agreements or other
documents that bind the General Partners and Interest Holders with
respect to such tax matters or otherwise affect the rights of the
Partnership, General Partners, and Interest Holders. HOLLIS JAN
GARFIELD WIGGINS is specifically authorized to act as the "Tax
Matters Partner" under the Code and in any similar capacity under
state or local law;
(k) take,
or refrain from taking, all actions, not expressly proscribed or
limited by this Agreement, as may be necessary or appropriate to
accomplish the purposes of the Partnership; and
(l) institute,
prosecute, defend, settle, compromise, and dismiss lawsuits or
other judicial or administrative proceedings brought on or in
behalf of, or against, the Partnership or the Partners in
connection with activities arising out of, connected with, or
incidental to this Agreement, and to engage counsel or others in
connection therewith.
5.2
Right to Rely on General Partners.
Any Person dealing with the Partnership may
rely (without duty of further inquiry) upon a certificate signed by
any General Partner as to:
(a) the
identity of any General Partner or Limited Partner;
(b) the
existence or nonexistence of any fact or facts which constitute a
condition precedent to acts by a General Partner or which are in
any other manner germane to the affairs of the
Partnership;
(c) the
Persons who are authorized to execute and deliver any instrument or
document of the Partnership; or
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(d) any
act or failure to act by the Partnership or any other matter
whatsoever involving the Partnership or any Partner.
5.3
Limitations on Authority of General
Partners. The authority granted to the
General Partners is subject to limitations so that the General
Partners may not:
(a) do
any act which is not for the purpose of carrying on the
Partnership's usual business;
(b) assign
Partnership property in trust for creditors or on the assignee's
promise to pay the debts of the Partnership;
(c) dispose
of the goodwill of the Partnership;
(d) do
any act which would make it impossible to carry on the ordinary
business of the Partnership;
(e) confess
a judgment against the Partnership;
(f) submit
a Partnership claim or liability to arbitration or reference;
or
(g) do
any act in contravention of the Act or the terms and conditions of
this Agreement.
5.4
Duties and Obligations of General
Partners .
(a) The
General Partners shall take all actions which may be necessary or
appropriate (i) for the continuation of the Partnership's
valid existence as a limited partnership under the laws of the
Commonwealth of Pennsylvania (and of each other jurisdiction in
which such existence is necessary to protect the limited liability
of the Limited Partners or to enable the Partnership to conduct the
business in which it is engaged) and (ii) for the
accomplishment of the Partnership's purposes, including the
acquisition, development, maintenance, preservation, and operation
of Property in accordance with the provisions of this Agreement and
applicable laws and regulations.
(b) The
General Partners shall devote to the Partnership such time as may
be necessary for the proper performance of all duties hereunder,
but the General Partners shall not be required to devote full time
to the performance of such duties.
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(c) The
General Partners shall be under a fiduciary duty to conduct the
affairs of the Partnership in the best interests of the Partnership
and of the Limited Partners, including the safekeeping and use of
all of the Property and the use thereof for the exclusive benefit
of the Partnership.
5.5
Indemnification of General Partners
.
(a) The
Partnership, its receiver, or its trustee shall indemnify, save
harmless, and pay all judgments and claims against any General
Partner relating to any liability or damage incurred by reason of
any act performed or omitted to be performed by such General
Partner in connection with the business of the Partnership,
including attorneys' fees incurred by such General Partner in
connection with the defense of any action based on any such act or
omission, which attorneys' fees may be paid as incurred.
(b) The
Partnership shall indemnify, save harmless, and pay all expenses,
costs, or liabilities of any General Partner who for the benefit of
the Partnership makes any deposit, acquires any option, or makes
any other similar payment or assumes any obligation in connection
with any property proposed to be acquired by the Partnership and
who suffers any financial loss as the result of such
action.
(c) Notwithstanding
the provisions of Subsections 5.5 (a) and 5.5(b)
above, no General Partner shall be indemnified from any liability
for fraud, bad faith, willful misconduct, or gross
negligence.
5.6
Compensation and Loans
.
(a)
Compensation and Reimbursement.
Except as otherwise provided in this
Section 5.6 , no Partner shall receive any salary, fee,
or draw for services rendered to or on behalf of the Partnership,
nor shall any Partner be reimbursed for any expenses incurred by
such Partner on behalf of the Partnership.
(b)
Expenses.
The General Partners may charge the
Partnership for any direct expenses reasonably incurred in
connection with the Partnership's business.
(c)
Compensation.
In consideration of their performance of
services on behalf of the Partnership, the General Partners shall
receive no compensation in addition to the distributions of cash
and other Property and allocations of Profits, Losses, and other
items provided for herein, unless the Partners approve such
additional compensation by majority vote.
(d)
Loans. Any
Person may, with the consent of the General Partners, lend or
advance money to the Partnership. If any Partner shall make any
loan or loans to the Partnership or advance money on its behalf,
the amount of any such loan or advance shall not be treated as a
Capital Contribution but shall be a debt due from the Partnership.
The amount of any such loan or advance by a lending Partner shall
be repayable out of the Partnership's cash and shall bear interest
at such rate as the General Partners and the lending Partner shall
agree. None of the Partners shall be obligated to make any loan or
advance to the Partnership.
5.7
Operating Restrictions
.
(a) All
Property in the form of cash not otherwise invested shall be
deposited in one or more accounts maintained in such financial
institutions as the General Partners shall determine or shall be
invested in short-term liquid securities or shall be left in escrow
and withdrawals shall be made only in the regular course of
Partnership business on such signature or signatures as the General
Partners may determine from time to time.
(b) The
signature of any General Partner shall be necessary and sufficient
to convey title to any real property owned by the Partnership or to
execute any promissory notes, trust deeds, mortgages, or other
instruments of hypothecation, and all of the Partners agree that a
copy of this Agreement may be shown to the appropriate parties in
order to confirm the same, and further agree that the signature of
any General Partner shall be sufficient to execute any "statement
of partnership" or other documents
8
necessary to effectuate this or
any other provision of this Agreement. All of the Partners do
hereby appoint each General Partner as their attorney-in-fact for
the execution of any or all of the documents described
herein.
SECTION 6
ROLE OF LIMITED PARTNERS
6.1
Limitation on Rights or Powers.
Except as otherwise set forth in
Sections 6.2 and 6.3 hereof, no Limited Partner shall
have any right or power to take part in the management or control
of the Partnership or its business and affairs or to act for or
bind the Partnership in any way.
6.2
Voting Rights.
The Limited Partners shall ha