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increased personnel. These projected general and
administrative expenses are consequently only the current best
guess of the anticipated expenses to be incurrea by the project
and are not deemed to be guidelines or limitations; but the
estimates to re~lect the Harbour Ridge, Inc. management's
comp~nsation philosophy which will be apnlied to the nr~ject.
~he Partnership recognizes that the salaries paid by it to the
stockholders of the Managing General Partner may not constitute
reasonable compensation for services rendered and the N,anaging
General Partner assumes reasponsibility of s~pplementing such
compensation if appropriate.
The Partnership Representatives snall conduct regular
meetings at times mutually agreeable to the principal
representatives of the respective General Partners. An agenda
and supporting material should be circulated prior to the
meeting by the hjanaging General Partner to Fairfield. Special
meetings of the Partnership Representatives may be called upon
by three days' notice by either General Partner. The-
Partnership kepresentatives shall not taf~e any action unless at
least one representative of each General Partner is present
after due notice having been given. However, the Partnership
Representatives may act informally, without the necessity of a
meeting, in the event each Ge~eral Partner consents in writing
to the informal action without a meeting, wh.ich consent must
also state the nature of the action so taken and the vote of
ttie consentiny General Partner on such mattet. The Managing
General Partner shall be obligateci to keep minutes of such
Partnersnip Representatives' meetings, which minutes shall be
provided to Fairfield within two weeks following a meeting for
its concurrence; anc7 Fairfield shall be deemed to have
concurred with the minutes as being an accurate reflection of
the action taken at the meeting unless Fairfield notifies the
Manaqinq General Partner tci the contrarj srithin two ~eeks
following receipt of sucn minutes.
(d) Liability of Managing General~Partner and
Fairfield. Neitner the Managiny General Partner nor Fairfield
shall, in any event, be liable to the Limited Partner for any
act or omission performed by them in good faith pursuant to the
authority granted to them by this Agreement, but only for
fraud, gross negligence or breach of their fiduciary obligation
as General Partners.
(e) Management of Fartnership Business. The Limited
Partner shall take no part in, nor interfere in any manner,
with the management, conduct or control of the Partnership
business and shall have no right or authority to act or bind
the Partnership.
12. Conveyance. Any deed, mortgage, bill of sale, lease,
contract for sale, or other instrument purporting to convey or
encumber the assets of the Partnership in their entirety, at
any time held in its name, shall be sig ned by tfie Managing
General Partner on behalf of the Partnership, and no other
signa~ure shall be cequired. The General and Limited Partners
do hereby constitute and appoint the Managing General Partner
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