OPERATIONS FOR TAX PURPOSES
ON THE ACCRUAL BASIS.
K-1 STATEMENTS FOR EACH PARTNER MUST BE DELIVERED NO
LATER THAN MARCH 30TH OF EACH YEAR.
(B)
THE BH INVESTOR SHALL, AT COMPANY EXPENSE,
FURNISH (OR REQUEST THE MANAGER OF THE PROPERTY TO FURNISH) TO THE MEMBERS (I)
ON OR BEFORE THE THIRTIETH (30TH) DAY OF EACH MONTH, AN UNAUDITED STATEMENT
SETTING FORTH AND DESCRIBING IN REASONABLE DETAIL THE RECEIPTS AND EXPENDITURES
OF THE COMPANY DURING THE PRECEDING MONTH AND COMPARING THE RESULTS OF
OPERATIONS OF THE COMPANY FOR SUCH MONTH AND FOR THE YEAR TO DATE TO THE
APPROPRIATE OPERATING BUDGET, (II) ON OR BEFORE SIXTY (60) DAYS AFTER THE END OF
EACH FISCAL YEAR, A BALANCE SHEET OF THE COMPANY DATED AS OF THE END OF SUCH
FISCAL YEAR, A STATEMENT OF THE MEMBERS' CAPITAL ACCOUNTS AND CAPITAL
CONTRIBUTION BALANCES, A STATEMENT OF DISTRIBUTABLE CASH, AND A STATEMENT
SETTING FORTH THE PROFITS AND LOSSES FOR SUCH FISCAL YEAR, AUDITED BY AN
INDEPENDENT FIRM OF CERTIFIED PUBLIC ACCOUNTANTS AS DETERMINED BY THE BH
INVESTOR, AND (III) FROM TIME TO TIME, ALL OTHER INFORMATION RELATING TO THE
COMPANY AND THE BUSINESS AND ITS AFFAIRS REASONABLY REQUESTED BY ANY MEMBER.
10.3
ACCOUNTS.
ALL FUNDS OF THE COMPANY SHALL BE
DEPOSITED IN ITS NAME IN AN ACCOUNT OR ACCOUNTS MAINTAINED AT A BANK DESIGNATED
BY THE BH INVESTOR OR WITH AN AGENT DESIGNATED BY THE MEMBERS.
CHECKS SHALL BE
DRAWN UPON THE COMPANY ACCOUNT OR ACCOUNTS ONLY FOR PURPOSES OF THE COMPANY AND
SHALL BE SIGNED BY THE MEMBER HOLDING A MAJORITY IN INTEREST OF THE COMPANY
PERCENTAGES OR SUCH OFFICERS AS THE MEMBER HOLDING A MAJORITY IN INTEREST OF THE
COMPANY PERCENTAGES SHALL DESIGNATE.
NOTWITHSTANDING THE FOREGOING, CP INVESTOR
MAY DESIGNATE SUCH BANK TO BE USED SOLELY FOR CASH USED FOR DAY TO DAY
OPERATIONS SO LONG AS SUCH BANK IS FEDERALLY CHARTERED AND INSURED AND THE SHORT
TERM UNSECURED DEBT OBLIGATIONS OF SUCH BANK ARE RATED AT LEAST "A-1" BY S&P,
"P-1" BY MOODY'S AND "F-1+" BY FITCH IF DEPOSITS ARE HELD FOR A PERIOD OF LESS
THAN A YEAR OR THE LONG TERM UNSECURED DEBT OBLIGATIONS OF SUCH BANK ARE RATED
AT LEAST " AA-" BY S&P, "AA2" BY MOODY'S AND "AA" BY FITCH IF DEPOSITS ARE HELD
FOR A PERIOD OF ONE YEAR OR MORE.
10.4
FEDERAL TAX ELECTIONS.
ALL ELECTIONS FOR FEDERAL
TAX PURPOSES, INCLUDING BUT NOT LIMITED TO AN ELECTION TO ADJUST THE BASIS OF
THE ASSETS OF THE COMPANY PURSUANT TO SECTION 754 OF THE CODE, AND THE ADOPTION
OF ACCELERATED DEPRECIATION OR COST RECOVERY METHODS REQUIRED OR PERMITTED TO BE
MADE BY THE COMPANY UNDER THE CODE SHALL BE DETERMINED BY THE BH INVESTOR.
10.5
TAX AUDITS.
THE BH INVESTOR SHALL BE DESIGNATED AS
THE "TAX MATTERS MEMBER" OF THE COMPANY AS DEFINED IN SECTIONS 6221 ET SEQ, OF
THE CODE AND, IN THE EVENT OF AN AUDIT OF THE COMPANY BY THE INTERNAL REVENUE
SERVICE ("IRS"), THE BH INVESTOR, AT COMPANY EXPENSE, SHALL HAVE THE