Document:

AMENDMENT TO
                                 LOAN AGREEMENT

     AMENDMENT  (this  "Amendment"),  dated as of June 30,  2005,  by and  among
GRIFFON CORPORATION ("Griffon"), TELEPHONICS CORPORATION ("Telephonics;" Griffon
and Telephonics are at times referred to herein individually as a "Borrower" and
collectively as the "Borrowers"),  BANK OF AMERICA, N.A., successor by merger to
Fleet  National  Bank  ("BOA"),  JP MORGAN  CHASE BANK,  successor  to The Chase
Manhattan Bank ("Chase"),  HSBC BANK USA ("HSBC"), US BANK, NATIONAL ASSOCIATION
f/k/a Firstar Bank,  National  Association  ("US Bank;" BOA, Chase,  HSBC and US
Bank are at times referred to herein  individually as a "Bank" and  collectively
as the "Banks"),  BANK OF AMERICA,  N.A.,  SUCCESSOR BY MERGER TO FLEET NATIONAL
BANK,  in  its  capacity  as  Administrative   Agent  (in  such  capacity,   the
"Administrative  Agent")  and JP  MORGAN  CHASE  BANK,  successor  to The  Chase
Manhattan Bank, in its capacity as  Documentation  Agent (in such capacity,  the
"Documentation Agent").

                               W I T N E S S E T H
                               -------------------

     WHEREAS,  the  Borrowers,  the  Banks,  the  Documentation  Agent  and  the
Administrative  Agent have entered into an Amended and Restated  Loan  Agreement
dated as of October 25, 2001 (such agreement,  as previously amended,  the "Loan
Agreement;"  capitalized  terms not  otherwise  defined  herein  shall  have the
respective meanings provided therefore in the Loan Agreement);

     WHEREAS,  the Borrowers,  the Administrative Agent and the Required Lenders
have agreed,  subject to the terms and  conditions of this  Amendment,  to amend
certain provisions of the Loan Agreement as set forth herein;

     NOW,  THEREFORE,  in  consideration  of the  premises  and  of  the  mutual
agreements herein contained, the parties hereto agree as follows:

          1.   Amendment.
               ---------

                    (a) The  first  paragraph  of the  definition  of  Permitted
               Acquisition  in Article 1 of the Loan Agreement is amended in its
               entirety to read as follows:

                    ""PERMITTED  ACQUISITION"  means the  acquisition  by either
               Borrower or any  Subsidiary  of any Person or of any  division or
               line of business of any Person (whether a Person,  or division or
               line of  business,  an  "Eligible  Business",  either by  merger,
               consolidation,  purchase  of  stock,  or  purchase  of  all  or a
               substantial  part of the assets of such  Eligible  Business  (any
               such type of  transaction  is referred to in this Agreement as an
               "acquisition"  and  the  principal  agreement  relating  thereto,
               whether a stock purchase agreement,  an asset purchase agreement,
               a merger agreement or otherwise, is referred to in this Agreement
               as the "acquisition agreement");  provided that (i) the aggregate
               Permitted  Acquisition  Purchase  Price  of  all  such  Permitted
               Acquisitions  during the term of this  Agreement  does not exceed
               (a) Two Hundred Million Dollars  ($200,000,000) in the aggregate,
               and (b) after  excluding the value of any capital stock issued by
               Griffon in connection with any Permitted Acquisition, One Hundred
               Million

<PAGE>

               Dollars  ($100,000,000)  in the aggregate,  (ii)  notwithstanding
               anything  else  in this  Agreement,  the  acquisition  of the 40%
               minority  interest in Finotech  shall be deemed to be a Permitted
               Acquisition and the related Permitted  Acquisition Purchase Price
               shall not be counted against the limits in subsections (i)(a) and
               (i)(b)  above,  (iii) no Default or Event of Default  shall exist
               immediately  before  and after  giving  effect to such  Permitted
               Acquisition  or result from the  consummation  thereof,  and (iv)
               each of the following conditions shall have been satisfied:"

                    (b) Section  6.9(b) of the Loan  Agreement is amended in its
               entirety to read as follows:

                    "(b) As of the end of each fiscal quarter, on a Rolling Four
                    Quarters basis, a Funded Debt to Cash Flow Ratio of not more
                    than 3.75 to 1.00."

                    (c) All  references in the Loan Agreement and the other Loan
               Documents to "Fleet  National Bank" or to "Fleet National Bank, a
               Bank of America company" or to "Fleet National Bank, successor by
               merger to Fleet Bank,  N.A." are deemed amended to read: "Bank of
               America,  N.A.,  successor by merger to Fleet  National Bank" and
               the defined term "Fleet" shall be deemed to read "BOA".

          2.   Representations and Warranties.
               ------------------------------

               (a) Each of the Borrowers  confirms and restates on and as of the
date hereof the accuracy of the representations and warranties contained in each
Loan Document.

               (b) No  Default  or Event of  Default  and no event or  condition
which, with the giving of notice or lapse of time or both, would constitute such
a Default or Event of Default, now exists or would exist.

3.       Miscellaneous.
         -------------

               (a) This Amendment is limited  precisely as written and shall not
be deemed to (i) be an  amendment  to or a waiver of any other term or condition
of the Loan  Agreement or any other Loan  Document or (ii)  prejudice any rights
which  any Bank may now have or may have in the  future  under or in  connection
with the Loan Agreement or any other Loan Document.

               (b)  THIS  AMENDMENT  AND ALL  OTHER  AGREEMENTS,  DOCUMENTS  AND
INSTRUMENTS  EXECUTED AND DELIVERED IN CONNECTION  WITH THIS AMENDMENT  SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK .

               (c) The provisions of this  Amendment are  severable,  and if any
clause or provision shall be held invalid or  unenforceable  in whole or in part
in any jurisdiction,  then such invalidity or unenforceability shall affect only
such clause,  provision or part in such jurisdiction and shall not in any manner
affect such  clause,  provision or part in any other  jurisdiction  or any other
clause or provision in this Amendment in any jurisdiction.

<PAGE>

               (d) This  Amendment  may be signed in any number of  counterparts
with the  same  effect  as if all  parties  to this  Amendment  signed  the same
counterpart.

               (e) The  Borrowers  agree to pay the  Administrative  Agent  upon
demand all  reasonable  expenses,  including  reasonable  fees to attorneys  and
paralegals  for  the   Administrative   Agent  (who  may  be  employees  of  the
Administrative  Agent),  incurred by the Administrative Agent in connection with
the preparation, negotiation and execution of this Amendment and any agreements,
instruments  and  documents  executed  or  furnished  in  connection  with  this
Amendment.

     IN  WITNESS  WHEREOF,  the  Borrowers  and  the  Administrative  Agent,  as
authorized on behalf of the Required  Lenders,  have signed and  delivered  this
Amendment as of the date first written above.

                                   GRIFFON CORPORATION

                                   By:   /s/Eric Edelstein
                                      -------------------------------
                                   Name:   Eric Edelstein
                                   Title:  Executive Vice-President

                                   TELEPHONICS CORPORATION

                                   By:   /s/Eric Edelstein
                                      -------------------------------
                                   Name:   Eric Edelstein
                                   Title:  Vice President

<PAGE>

                                   BANK  OF  AMERICA,   N.A.,   SUCCESSOR  BY
                                   MERGER  TO  FLEET  NATIONAL  BANK,  AS
                                   ADMINISTRATIVE AGENT

                                   By:   /s/Richard Williams
                                      --------------------------------
                                   Name:   Richard Williams
                                   Title:  Credit Products Officer

<PAGE>

                                   JP MORGAN CHASE BANK, N.A.

                                   By:   /s/Louise E. Duchi
                                      --------------------------------
                                   Name:   Louise E. Duchi
                                   Title:  Vice President

<PAGE>

                                   HSBC BANK USA, NATIONAL ASSOCIATION

                                   By:   /s/Thomas J. Dionian
                                      --------------------------------
                                   Name:   Thomas J. Dionian
                                   Title:  Vice PresidentLimited Partnerhship Agreement Dated March 24, 200

 

  Exhibit 4.18

LIMITED PARTNERSHIP AGREEMENT

of

SEA BREEZE PACIFIC JUAN DE FUCA CABLE, LP

     This Limited Partnership Agreement of Sea Breeze Pacific Juan de Fuca Cable, LP, a Delaware
limited partnership (the “Partnership”) is entered into as of the 24th day of
March, 2005 (this “Agreement”) by and between Juan de Fuca Cable Management, Inc., a
Delaware corporation (the “General Partner”), with an address at 203 Red Stone Hill,
Plainville, CT 06062, SBJF Holding Corp., a British Columbia corporation (“Sea Breeze”)
and Boundless Energy NW, Inc., a Delaware corporation (“Boundless Energy”, and together
with Sea Breeze, the “Limited Partners”, and the Limited Partners, together with the
General Partner shall collectively be referred to as the “Partners”).

     WHEREAS, the Limited Partners are affiliates of Sea Breeze Pacific Regional Transmission
System, Inc., a Delaware corporation (“Assignor”);

     WHEREAS, the Partnership is entering into that certain Asset Assignment Agreement dated as
March 31, 2005 with Assignor and is the beneficiary of that certain Bill of Sale dated as of March
31, 2005 by Assignor, pursuant to which the Assignor is transferring, or agreeing to transfer upon
receipt of necessary consents, or agreeing to cause its affiliates to transfer, all right, title
and interest in and to all of the assets used or held for use in connection with the Project and
located in Canada, issued by Canadian governmental authorities or otherwise primarily connected to
Canada (the “Canada Assets”), in exchange for the Partnership issuing Partnership Interests
(as defined herein) to the Limited Partners; and

     WHEREAS, the Partners desire to enter into this Limited Partnership Agreement for the purposes
set forth herein, to admit the Limited Partners as limited partners of the Partnership and appoint
the General Partner as the general partner of the Partnership, and to set forth the rights, duties
and obligations of the Partners.

ARTICLE I

General Provisions

     Section 1.01 Formation. The parties hereto hereby form the Partnership as a limited
partnership pursuant to the provisions of the Delaware Revised Uniform Limited Partnership Act (as
in effect on the date hereof and as amended from time to time, the “Delaware Act”).

     Section 1.02 Partnership Name. The name of the Partnership is and shall be Sea Breeze
Pacific Juan de Fuca Cable, LP.

     Section 1.03 Purpose. The purpose of the Partnership shall be to develop a 550 MW
High Voltage Direct Current submarine transmission link spanning the Strait of Juan de Fuca
connecting the city of Victoria on the southern tip of Vancouver Island, British Columbia, Canada
to Port Angeles, Washington State, U.S.A., or some alternative route connecting Greater Victoria on
Vancouver Island to the Olympic Peninsula (the “Project”) and to engage in any

1

 

other legal business or activity as determined from time to time by the General Partner. The
Partnership may engage in any and all activities and transactions, including the expenditure or
borrowing of funds, as General Partner may deem to be necessary, advisable, appropriate or
incidental to carrying out the purpose of the Partnership.

     Section 1.04 Place of Business. The Partnership shall have offices located at 203 Red
Stone Hill, Plainville, CT 06062, or elsewhere as the General Partner may from time to time
determine. The Partnership may have more than one (1) office as the General Partner may from time
to time determine.

     Section 1.05 Fiscal Year and Fiscal Quarter. The fiscal year of the Partnership shall
end on December 31 of each year (the “Fiscal Year”). The Fiscal Year may be changed by the
General Partner. In the event that the General Partner changes the Partnership’s Fiscal Year, the
dates and time periods referred to in this Agreement shall be appropriately adjusted. The term
“Fiscal Quarter” shall mean the three (3) month period beginning on January 1, April 1,
July 1 and October 1 of each calendar year and such other periods as may be designated from time to
time as a Fiscal Quarter by the General Partner.

     Section 1.06 Term of Partnership. The term of the Partnership commenced upon filing
of the Partnership’s Certificate of Limited Partnership (the “Certificate”) with the
Delaware Secretary of State and shall be perpetual, unless earlier terminated as provided in
Section 13.01 below.

ARTICLE II

Composition; Admissions

     Section 2.01 Names of the Partners. Juan de Fuca Cable Management, Inc., a Delaware
corporation, shall be the sole General Partner of the Partnership. SBJF Holding Corp., a British
Columbia corporation and Boundless Energy NW, Inc., a Delaware corporation, shall be the sole
Limited Partners of the Partnership. The names and addresses of the General Partner and of each of
the Limited Partners are set forth on Schedule 1 attached hereto, which schedule shall be
updated from time to time as new partners are admitted and kept on file at all times at the
principal place of business of the Partnership.

     Section 2.02 Admission of Partners. Additional Limited Partners may be admitted to
the Partnership after the date hereof only as provided in Article VIII below. In connection with
the admission of a Limited Partner to the Partnership, such Limited Partner shall, in advance of
such admission and as a condition thereto, sign a copy of this Agreement or an agreement to become
bound by the provisions of this Agreement. A substitute General Partner, and affiliated or
additional general partners, may be admitted to the Partnership only as provided in Article IV
below.

     Section 2.03 Partnership Interests. For purposes of this Agreement, the term
“Partnership Interest” shall mean the quotient resulting from dividing the amount in a
Partner’s Capital Account (as defined in Section 9.01 below) by the aggregate amount in the Capital
Accounts of all Partners. The Partnership Interests of the Partners are set forth on Schedule
1

2

 

attached hereto, which the General Partner shall update from time to time to reflect changes
in the Capital Accounts of the Partners.

     Section 2.04 Certificates.

     (a) Every Partner shall be entitled to have a certificate of certificates evidencing the
Partnership Interest owned by such Partner. Certificates evidencing the Partnership Interests be
in such form as shall approved by the General Partner. Certificates shall be consecutively
numbered and shall state the following upon the face thereof: (i) that the Partnership is a
limited partnership formed under the Delaware Act, (ii) that the certificates evidence Partnership
Interests and (iii) the name of the record holder in whose name the Partnership Interests are
registered.

     (b) Certificates evidencing Partnership Interests shall be signed on behalf of the Partnership
by the General Partner. The signatures of the General Partner upon a certificate may be
facsimiles.

     (c) All certificates evidencing Partnership Interests shall have affixed thereto a legend
substantially in the following form:

THE INTERESTS EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED OR APPLICABLE STATE SECURITIES LAWS AND ACCORDINGLY SUCH INTERESTS
MAY NOT BE TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER SUCH ACT AND
SUCH LAWS OR UNLESS PURSUANT TO AN EXEMPTION THEREFROM. TRANSFERS, SALES, PLEDGES,
HYPOTHECATIONS AND OTHER DISPOSITIONS OF THE INTERESTS EVIDENCED BY THIS CERTIFICATE ARE
FURTHER RESTRICTED BY THE TERMS OF THE LIMITED PARTNERSHIP AGREEMENT OF SEA BREEZE PACIFIC
JUAN DE FUCA CABLE, LP.

     (d) The Partnership may issue a certificate in place of a certificate evidencing Partnership
Interests alleged to have been lost, stolen or destroyed, upon the making of an affidavit of that
fact by the Person claiming the certificate to be lost, stolen or destroyed. When authorizing the
issuance of a new certificate or certificates, the Partnership may, in its discretion and as a
condition precedent to the issuance thereof, require that the owner of such lost, stolen or
destroyed certificate or certificates, or its legal representative, give the Partnership a bond
sufficient to indemnify the Partnership against any claim that may be made against the Partnership
on account of the alleged loss, theft or destruction of any certificate or the issuance of such new
certificate.

     (e) The Partnership Interests shall be securities under Chapter 8 of the Uniform Commercial
Code.

ARTICLE III

Management

     Section 3.01 Management of Partnership.

3

 

     (a) The Limited Partners shall take no part in the management or control of the Partnership’s
business and shall have no authority to act for or bind the Partnership. The General Partner shall
have the sole discretion and authority, on behalf of and in the name of the Partnership, to manage
and operate the Partnership and perform all acts and enter into and perform all contracts and other
undertakings that it may deem necessary, advisable or incidental to the Purposes, and shall have
the specific powers set forth in Section 3.02 below.

     (b) The General Partner shall not be required to devote its full time to the business of the
Partnership, but shall devote so much of its time and efforts to the affairs of the Partnership as
may in its judgment be necessary to accomplish the purposes of the Partnership. Nothing herein
contained shall prevent the General Partner or its shareholders, or any Limited Partner or any of
their respective owners, from conducting any other business, whether such business ventures are in
direct or indirect competition with the Partnership.

     Section 3.02 Powers of the General Partner. Without in any way intending to limit the
general powers and authority of the General Partner set forth in Section 3.01, the General Partner
shall have the right, power and authority, in the name of and on behalf of the Partnership:

     (a) To acquire any Partnership real or personal property (and to incur all expenses and enter
into all contracts relating thereto);

     (b) To incur indebtedness on behalf of the Partnership, grant security interests or mortgages
in the Partnership property, or pledge any security interest in the securities or other ownership
interests held by the Partnership;

     (c) To acquire and enter into any contract of insurance that the General Partner deems
necessary or appropriate for the protection of the Partnership and the General Partner or for any
purpose convenient or beneficial to the Partnership;

     (d) To engage in any transaction with affiliates of the General Partner;

     (e) To employ persons, whether full-time or part-time, in the operation and management of the
business of the Partnership, on such terms and for such compensation as the General Partner shall
determine, regardless of whether such persons also may be employed by the General Partner or its
shareholders or other affiliates;

     (f) To file, conduct and defend legal proceedings of any form, including proceedings against
Partners, and to compromise and settle any such proceedings, or any claims against any person,
including claims against Partners, on whatever terms deemed appropriate by the General Partner,

     (g) To open brokerage, bank and other accounts and, to the extent that funds are not invested,
to deposit and maintain such funds in the name of the Partnership in such accounts and to
temporarily invest such funds in short-term United States government securities, money market
accounts and/or other short-term interest bearing instruments, provided, however, that the
Partnership funds shall not be commingled with the funds of any other person or entity;

4

 

     (h) To cause the Partnership to make or revoke any of the elections referred to in Section 754
of the Internal Revenue Code of 1986, as amended (the “Code”), or any similar provision
enacted in lieu thereof;

     (i) To select as its accounting year the period ending December 31 or any other Fiscal Year as
is permitted by the Internal Revenue Service;

     (j) To engage independent accountants, attorneys, investment managers, brokers, custodians and
such other persons as the General Partner may deem necessary or advisable;

     (k) To establish and maintain for the conduct of Partnership affairs one or more offices and
in connection therewith rent or acquire office space, and engage personnel, whether part-time or
full-time, and do such other acts and incur such expenses, as the General Partner may deem
necessary or advisable in connection with maintenance or administration of such office(s);

     (l) To require a provision in all Partnership contracts that the General Partner shall not
have any personal liability therefor, but that the person or entity contracting with the
Partnership shall be entitled to any satisfaction only from the Partnership and its assets;

     (m) To purchase, lease, transfer or sell Partnership assets at such price or amount for cash,
securities or other property and upon such terms as are deemed in the General Partner’s absolute
discretion to be in the best interests of the Partnership;

     (n) To prepare, or cause to be prepared, to execute, acknowledge and deliver any and all
instruments to effectuate the business of the Partnership;

     (o) To waive or reduce, in whole or in part, any notice period, minimum amount requirement, or
other limitation or restriction imposed on Capital Contributions, withdrawals of capital, any fee,
any special allocation to the General Partner, and/or any requirement imposed on a Limited Partner
by this Agreement, regardless of whether such notice period, minimum amount, limitation,
restriction, fee, or special allocation, or the waiver or reduction thereof, operates for the
benefit of the Partnership, the General Partner or fewer than all the Limited Partners;

     (p) To establish such reserves as the General Partner shall, in its sole but reasonable
discretion, deem appropriate to pay current and future, definite, contingent and possible
obligations of the Partnership; and

     (q) To do any act, engage in any activity or execute any agreement of any nature, necessary or
incidental to the accomplishment of the purposes of the Partnership in accordance with the
provisions of this Agreement and all applicable federal, state and local laws and regulations.

     Section 3.03 Actions of General Partner. The General Partner is authorized, directed
and empowered to act individually on behalf of the Partnership, and in accordance therewith, to
execute, deliver and perform all documents and instruments on behalf of the Partnership. No Person
shall be required to inquire into the authority of the General Partner to bind the

5

 

Partnership. Persons dealing with the Partnership shall be entitled to rely on a
certification by the General Partner with regard to the authority of any other Person to act on
behalf of the Partnership in any matter.

     Section 3.04 Liability and Indemnification.

     (a) The General Partner shall not be liable to the Partnership or any other Limited Partner
for any claims, costs, expenses, damages or losses arising out of the performance or nonperformance
of its duties under this Agreement, or any action taken or omitted to be taken in connection with
the business and affairs of the Partnership, other than those directly attributable to its own
fraud, gross negligence or willful disregard of duties.

     (b) The Partnership agrees to indemnify and hold harmless the General Partner and its
shareholders, officers, directors, employees and agents, if any, from and against any and all
claims, actions, demands, losses, costs, expenses (including attorney’s fees and other expenses of
litigation), damages, penalties or interest, as a result of any claim or legal proceeding related
to any action taken or omitted to be taken in connection with the business and affairs of the
Partnership (including the settlement of any such claim or legal proceeding); provided, however,
that the party against whom the claim is made or legal proceeding is directed is not guilty of
gross negligence or willful misconduct as determined by a final non-appealable court of competent
jurisdiction. Any indemnity under this Section shall be paid from and to the extent of Partnership
assets only, and only to the extent that such indemnity does not violate applicable Federal and
state laws.

     Section 3.05 No Prohibition Against Other Business Ventures. The General Partner, its
shareholders and employees may engage and hold interests in other business ventures of every kind
and description for their own respective accounts, whether such business ventures are in direct or
indirect competition with the Partnership and whether the Partnership or any of the Partners also
has an interest therein, without having to account to the Partnership or any Partner for any
profits or other benefits derived therefrom and without incurring any obligation to offer any
interest in any such activity to the Partnership or any Partner.

     Section 3.06 Duty to Keep Books, Financial and Tax Reports.

     (a) At all times during the existence of the Partnership, the General Partner shall keep true
and complete records and books of account, in which shall be entered fully and accurately each
transaction of the Partnership. The General Partner has the power, in its sole and absolute
discretion, to delegate some or all of the administrative bookkeeping functions relating to the
Partnership to an agent, which may be the General Partner’s accountants.

     (b) The General Partner shall cause to be prepared and distributed to each Partner as soon as
practicable following each Fiscal Year an annual financial statement prepared in accordance with
generally accepted accounting principles. The General Partner shall also have prepared and filed
all Federal, state and local income, franchise, gross receipts, payroll and other tax returns that
the Partnership is obligated to file. Copies of all Partnership tax returns, information returns
or reports shall be available to all Partners as soon as possible after the close of the
Partnership Fiscal Year at the offices of the Partnership. Copies of Schedule K-1 of the

6

 

Partnership Tax Return (Form 1065) shall be distributed to all Partners as soon as practicable
after the Partnership Fiscal Year.

ARTICLE IV

Resignation; Prohibition Against Transfer; Continuation of Partnership; and Substitution of
General Partner

     Section 4.01 General Partner Resignation and Involuntary Withdrawal, Admission of
Additional General Partners and Transfer by General Partner.

     (a) The General Partner shall be permitted to voluntarily withdraw or resign as the general
partner at any time in its absolute and sole discretion. In the event of dissolution of the
General Partner, or if a voluntary or involuntary petition for bankruptcy shall be filed by or
against the General Partner, or the General Partner shall make any assignment for the benefit of
its creditors, (collectively, an “Involuntary Withdrawal”), the General Partner or the
General Partner’s trustee, receiver or assignee shall become inactive in the affairs of the
Partnership, shall have none of the rights and powers of a General Partner hereunder, shall have no
authority to act on behalf of the Partnership or have any voice in the management and operation of
the Partnership.

     (b) The General Partner may admit additional general partners to the Partnership at such times
as the General Partner shall determine, without the consent of the Limited Partners.
Notwithstanding anything to the contrary, the General Partner shall have the right to transfer its
interest, as the general partner of the Partnership, to any affiliate of the General Partner,
including any person or entity controlled by the General Partner, controlling the General Partner
or under common control with the General Partner, without the consent of the Limited Partners. In
the event of such transfer by the General Partner to an affiliate, the General Partner shall not be
deemed to have resigned or withdrawn from the Partnership for purposes of Section 13.01(b). Any
affiliate transferee of the General Partner under this Section 4.01(b) shall assume the status of
and shall have all of the rights, powers and obligations that the General Partner possessed prior
to such transfer. The General Partner shall not assign, transfer, sell, mortgage or otherwise
encumber or transfer its interest as the General Partner of the Partnership except as set forth
herein. Any additional general partner, or transferee of the General Partner as provided herein,
shall execute and acknowledge any and all instruments that are necessary or appropriate to effect
the admission of any such person or entity as a general partner, including, without limitation, the
written acceptance and adoption by such person of the provisions of this Agreement.

     Section 4.02 Substitute General Partner Requirements. Any substitute General Partner
shall execute and acknowledge any and all instruments that are necessary or appropriate to effect
the admission of any such person or entity as a substitute General Partner, including, without
limitation, the written acceptance and adoption by such person of the provisions of this Agreement.
Any successor to such office of General Partner shall assume the status of and shall have all of
the rights, powers and obligations that the General Partner possessed prior to its withdrawal,
resignation or Involuntary Withdrawal from the Partnership.

7

 

ARTICLE V

Status, Rights, Powers and Voting Rights of Limited Partners

     Section 5.01 Limited Liability. Neither Limited Partner, any Substitute Limited
Partners (as defined herein) nor any Additional Limited Partners (as defined herein) shall be
personally liable or bound for the expenses, liabilities or obligations of the Partnership beyond
the amount of such Partner’s Capital Contribution (as defined in Section 8.01 below).

     Section 5.02 Return of Capital Contributions. No Limited Partner shall be entitled to
a return of such Limited Partner’s Capital Contribution or any portion thereof.

     Section 5.03 Liability of Limited Partner. No Limited Partner shall be obligated to
provide any contributions to the Partnership other than the Original Capital Contribution (as
defined in Section 9.02 below) of such Limited Partner. No Limited Partner shall be obligated to
make any loan to the Partnership.

     Section 5.04 Rights of Limited Partners to Inspect Books, Records, and Partnership
Documents. Each Limited Partner shall have the right to inspect and copy the Partnership’s
books and records at any reasonable time upon reasonable advance written notice, at such Limited
Partner’s sole cost and expense and solely for a purpose reasonably related to the Limited
Partner’s interest as a Partner, and to receive on demand true and full information regarding all
transactions and circumstances affecting the Partnership, and a formal account of the Partnership’s
affairs whenever circumstances render it just and reasonable, as shall be determined in the General
Partner’s sole discretion. Any such inspection must be in good faith without any intent to damage
the Partnership or any of its Partners in any manner.

     Section 5.05 No Restriction on Other Activities. Limited Partners may engage and hold
interests in business ventures of every kind and description for their own accounts including,
without limitation, business ventures which are, directly or indirectly, in competition with the
Partnership and whether the Partnership or any of the Partners also has an interest therein.
Neither the Partnership nor any of the Partners shall have any rights in such independent business
ventures by virtue of this Agreement.

     Section 5.06 Voting Rights. Limited Partners shall only have the right to vote on
amendments to this Agreement to the extent provided in Section 14.08 hereof and as otherwise
required by the Delaware Act.

     Section 5.07 Rights as to Dissolution. The Limited Partners shall have no right or
power to cause the dissolution and winding up of the Partnership by court decree or otherwise or to
withdraw or reduce their Capital Contributions. No Limited Partner shall have the right to bring
an action for partition against the Partnership and each Partner hereby waives any right to
partition of the Partnership’s property.

     Section 5.08 Consent by Limited Partners in Lieu of Meeting. Any action required by
this Agreement or the Delaware Act to be taken at any regular or special meeting of the Partners
may be taken without a meeting, without prior notice and without a vote, if a consent or consents
in writing, setting forth the action so taken, shall be signed by the Partners having not

8

 

less than the minimum number of votes that would be necessary to authorize or take such action
at a meeting at which all Partners entitled to vote thereon were present and voted.

ARTICLE VI

Management Fee and Expenses

     Section 6.01 Management Fee. The General Partner shall not be paid a management fee
for its management of the Partnership.

     Section 6.02 Expenses. The Partnership shall pay or reimburse the General Partner for
(A) all expenses related to organizing the Partnership, including but not limited to, legal and
accounting fees, printing and mailing expenses and government filing fees, (B) all expenses
incurred in connection with the offer and sale of Partnership Interests, and (C) all operating
expenses of the Partnership such as tax preparation fees, governmental fees and taxes, and ongoing
legal, accounting and bookkeeping fees and expenses. The General Partner, in its absolute
discretion, may from time to time pay for Partnership expenses or waive reimbursement from the
Partnership for the Partnership’s expenses, as well as terminate any such voluntary payment or
waiver of reimbursement. The Partnership’s organizational expenses will be paid by the
Partnership.

ARTICLE VII

Withdrawals from Capital Account

     Section 7.01 No Withdrawals. No Limited Partner shall have any right to withdraw all
or any of the value in such Limited Partner’s Capital Account.

ARTICLE VIII

Additional Limited Partners

     Section 8.01 Future Issuance of Partnership Interests. The General Partner may admit,
as of the first day of any Fiscal Quarter, or at any time that the General Partner determines in
its sole and absolute discretion, as additional Limited Partners (“Additional Limited
Partners”), persons who contribute cash or, in the General Partner’s sole discretion, assets,
for Partnership Interests (“Capital Contributions”). The General Partner may establish a
minimum amount for such initial Capital Contributions as the General Partner deems appropriate and
that minimum limitation may thereafter be waived or changed by the General Partner. Any assets
accepted as Capital Contributions shall be valued by the General Partner in the manner determined
by the General Partner in its sole discretion.

ARTICLE IX

Capital Accounts, Capital Contributions

Net Worth Adjustments and Taxable Income and Loss

     Section 9.01 Capital Accounts. A Partner’s “Capital Account” as of a
particular date shall consist of the following:

     (a) An amount equal to the Partner’s Original Capital Contribution;

9

 

     (b) The increases, if any, to such account by reason of Additional Capital Contributions;

     (c) The decreases, if any, to such account by reason of withdrawals from such Capital Account;
and

     (d) The increases or decreases, if any, to such Capital Account in accordance with the
provisions of Section 9.04 below.

     Section 9.02 Original Capital Contributions. A Partner’s “Original Capital
Contribution” shall be the amount of the cash, or in the sole and absolute discretion of the
General Partner, assets, contributed by such party upon such Partner’s admission as a Partner. If
the General Partner consents to a Limited Partner’s contribution of assets to the Partnership, the
Partnership may, in the General Partner’s sole and absolute discretion, assess a special charge
against such Limited Partner equal to the actual costs incurred by the Partnership in connection
with accepting such contributed assets. Such special charge will be assessed as of the date on
which such assets are contributed. The General Partner hereby consents to the contribution by
Assignor after the date hereof, as an affiliate of the Limited Partners and for the Original
Capital Contributions of the Limited Partners, of the Canada Assets, all of which are set forth on
Schedule 2 attached hereto, and acknowledges that no special charge shall be assessed
against either Limited Partner in respect of such asset contribution. The Original Capital
Contributions of the Partners are set forth on Schedule 1.

     Section 9.03 Additional Capital Contributions.

     (a) A Partner shall be permitted, with the consent of the General Partner, to make additional
Capital Contributions in an amount deemed appropriate by the General Partner in cash or, in the
sole and absolute discretion of the General Partner, assets (such contributions, “Additional
Capital Contributions”) to the capital of the Partnership as of the first day of a Fiscal
Quarter or at any other time that the General Partner determines in its sole and absolute
discretion. In the event that Additional Capital Contributions are accepted as of the beginning of
a Fiscal Quarter pursuant to this Section, the General Partner shall end the prior Fiscal Quarter
on the last day of the prior month and commence a new Fiscal Quarter on the date of the acceptance
of the Additional Capital Contribution and upon such acceptance, the Partnership Interests shall be
adjusted and reallocated based upon the Capital Accounts of the respective Partners.

     (b) Any assets accepted as an Additional Capital Contribution shall be valued by the General
Partner, in its sole and absolute discretion. If the General Partner consents to a Limited
Partner’s contribution of assets to the Partnership, the Partnership may, in the General Partner’s
sole and absolute discretion, assess a special charge against such Limited Partner equal to the
actual costs incurred by the Partnership in connection with accepting such contributed assets.
Such special charge will be assessed as of the date on which such assets are contributed.

     (c) The General Partner shall update Schedule 1 from time to time to include any
Additional Capital Contributions made by any Partner.

10

 

     Section 9.04 Determination of Net Worth. The net worth of the Partnership (“Net
Worth”) shall be determined on the accrual basis of accounting in accordance with generally
accepted accounting principles consistently applied, and, further, in accordance with the
following:

     (a) A determination shall be made on the last day of each Fiscal Year (or Fiscal Quarter or
other time period, as the case may be) as to the value of all Partnership assets and as to the
amount of liabilities of the Partnership. The Partnership’s name and goodwill shall be deemed to
have no value and shall belong to the General Partner or any successor thereof, and no Limited
Partner shall have any right or claim individually to the use thereof.

     (b) There shall be deducted estimated expenses for accounting, legal, custodial and other
administrative services (whether performed therein or to be performed thereafter) and such reserves
for contingent liabilities of the Partnership, including estimated expenses, if any, in connection
therewith, as the General Partner shall determine.

     (c) After the foregoing determinations have been made, a further calculation shall be made to
determine the increase or decrease in Net Worth of the Partnership during the Fiscal Year (or
Fiscal Quarter or other time period, as the case may be) just ended. The term “increase in Net
Worth” shall be the excess of Net Worth at the end of any Fiscal Year (or Fiscal Quarter or other
time period, as the case may be) over that of the preceding period, after adjusting for interim
Capital Contributions and withdrawals. The term “decrease in Net Worth” shall be the amount by
which the Net Worth at the end of the Fiscal Year (or Fiscal Quarter or other time period, as the
case may be) is less than the Net Worth of the Partnership as of the end of the preceding period
after making the adjustments specified above.

     Section 9.05 Allocation of Increases and Decreases in Net Worth. Any net increase or
decrease in Net Worth during any Fiscal Year (or such other period, as the case may be) shall be
allocated as of the end of such Fiscal Year (or such other period, as the case may be) to the
Capital Accounts of all Partners in the proportions that each Partner’s Capital Account bore to the
sum of the Capital Accounts of all of the Partners as of the beginning of such Fiscal Year (or such
other period, as the case may be).

     Section 9.06 Allocation for Tax Purposes.

     (a) Taxable income, losses and deductions of the Partnership for each year shall accrue to,
and be borne by, the Partners in proportion to their sharing of net increases or decreases in Net
Worth, the allocations of various types of taxable income and losses likewise being as nearly
proportionate as possible.

     (b) All allocations under this paragraph shall be made pursuant to the principles of Section
704 of the Code and in conformity with Treasury Regulations promulgated thereunder, or the
successor provisions to such Code Section and Regulations.

     (c) All matters concerning the allocation of profits, gains and losses among the parties
(including the taxes thereon) and accounting procedures not expressly provided for by the terms of
this Agreement shall be determined by the General Partner in its sole and absolute

11

 

discretion in consultation with the accountants for the Partnership, and the General Partner’s
determination shall be final and conclusive as to all parties.

     (d) Any taxes, fees or other charges that the Partnership is required to withhold under
applicable law with respect to any Partner shall be withheld by the Partnership (and paid to the
appropriate government authority) and shall be deducted from the capital account of such partner as
of the last day of the Fiscal Year (or earlier if the Partner withdraws) with respect to which
amounts are required to be withheld.

ARTICLE X

Restrictions on Transfers of Partnership Interests of

Limited Partners; Admission of Substitute Limited

Partners; and Other Matters Affecting Partnership Interests

     Section 10.01 Restrictions on Transfer of Partnership Interests of Limited Partners.

     (a) Except for transfers by will or intestate succession or by operation of law, no Limited
Partner may offer, sell, transfer, assign, exchange, hypothecate or pledge, or otherwise dispose of
or encumber (collectively, “Transfer”), in whole or in part, such Limited Partner’s
Partnership Interest without the consent of the General Partner, which may be given or withheld in
the sole and absolute discretion of the General Partner.

     (b) No Limited Partner may Transfer, in whole or in part, such Limited Partner’s Partnership
Interest if such Transfer would cause the termination of the Partnership for Federal income tax
purposes, and any purported Transfer that would cause the termination of the Partnership for
Federal income tax purposes shall be void ab initio. Counsel for the Partnership
shall give its written opinion to the General Partner as to whether any contemplated Transfer would
cause the termination of the Partnership for Federal income tax purposes and the General Partner
shall be entitled to rely conclusively upon such opinion in determining whether such Transfer would
cause the termination of the Partnership and whether consent to such disposition should be given.

     (c) No Transfer of any Partnership Interest of a Limited Partner may be made unless the
General Partner shall have received a written opinion of counsel satisfactory to the General
Partner that such proposed Transfer may be effected without:

	 	(i)	 	Registration of the Partnership Interest being made under the
Securities Act of 1933, as amended;
	 
	 	(ii)	 	Violating any applicable state securities or “Blue Sky” law
(including investment suitability standards) or the laws of any other
jurisdiction; or
	 
	 	(iii)	 	Violating the Delaware Act.

     (d) In no event shall a Limited Partner Transfer its Partnership Interest or any portion
thereof to a minor or incompetent person, except by will or intestate succession.

     Section 10.02 Admission of Substitute Limited Partner.

12

 

     (a) Subject to the general restriction on transfer set forth in this Article X, an assignee of
the Partnership Interest of a Limited Partner (which shall include any purchaser, transferee, donee
or other recipient of any disposition of such Partnership Interest) shall be deemed admitted to the
Partnership as a Limited Partner (hereinafter a “Substitute Limited Partner”) only upon the
satisfactory completion of the following:

	 	(i)	 	Consent of the General Partner shall have been given, which
consent shall be evidenced by a written consent executed by the General Partner
or by the execution by the General Partner of an amendment, if required, to the
Certificate evidencing the admission of such person as a Limited Partner;
	 
	 	(ii)	 	The assignee shall have accepted and agreed to be bound by the
terms and provisions of this Agreement (as it may be amended from time to time)
by executing a counterpart hereof and such assignee shall have expressly
assumed all of the obligations of the assignor Limited Partner hereunder, and
shall have executed such other documents or instruments as the General Partner
may require in its sole and absolute discretion in order to effect the
admission of such person as a Limited Partner;
	 
	 	(iii)	 	An amendment to the Certificate, if required by the Delaware
Act, evidencing the admission of such person as a Limited Partner shall have
been filed;
	 
	 	(iv)	 	The assignee shall have delivered a letter containing a
representation that the assignee’s acquisition of the Partnership Interest is
made as a principal, for the assignee’s own account, for investment purposes
only and not with a view to the resale or distribution of such Partnership
Interest, and that the assignee will not Transfer such Partnership Interest or
any fraction thereof to anyone in violation of this Agreement;
	 
	 	(v)	 	If the assignee is a corporation, the assignee shall have
provided to the General Partner evidence satisfactory to counsel for the
Partnership of its authority to become a Limited Partner under the terms and
provisions of this Agreement;
	 
	 	(vi)	 	The assignee shall have complied with all applicable
governmental rules and regulations, if any;
	 
	 	(vii)	 	The assignee meets the suitability requirements for investing
in the Partnership and the assignee completes a subscription agreement provided
by the General Partner; and
	 
	 	(viii)	 	All costs and expenses incurred by the Partnership and General Partner in
connection with this Section 10.02 are paid by the person or entity seeking to
become a Substitute Limited Partner.

     Section 10.03 Rights of Assignee of Partnership Interest.

13

 

     (a) Subject to the provisions of Section 10.01, and except as required by operation of law,
the Partnership shall not be obligated for any purposes whatsoever to recognize the assignment by
any Limited Partner of such Limited Partner’s Partnership Interest until the Partnership has
received notice thereof and the General Partner has set forth in writing its consent to such
assignment.

     (b) Any person or entity who is the assignee of all or any portion of the Partnership Interest
of a Limited Partner, but who has not become a Substitute Limited Partner, and desires to make a
further disposition of such Partnership Interest, shall be subject to all the provisions of this
Article X to the same extent and in the same manner as any Limited Partner desiring to make a
disposition of such Limited Partner’s Partnership Interest.

     Section 10.04 Effect of Bankruptcy, Death or Incompetence of a Limited Partner. The
bankruptcy of a Limited Partner or, if an individual, an adjudication that a Limited Partner is
incompetent (which term shall include, but not be limited to, insanity), shall not cause the
termination or dissolution of the Partnership and the business of the Partnership shall continue.
If a Limited Partner becomes bankrupt, the trustee or receiver of such Limited Partner’s estate or,
if a Limited Partner dies, such Limited Partner’s executor, administrator or trustee, or, if such
Limited Partner is adjudicated incompetent, such Limited Partner’s committee, guardian or
conservator, shall have the rights of such Limited Partner for the purposes of settling or managing
such Limited Partner’s estate or property and such power as the bankrupt, deceased or incompetent
Limited Partner possessed to dispose of all or any part of such Limited Partner’s Partnership
Interest and to join with any assignee in satisfying conditions precedent to the admission of the
assignee as a Substitute Limited Partner.

     Section 10.05 Attachment by Creditors. If a Partnership Interest is subjected to
attachment by a creditor, or is assigned for the benefit of any creditor, the Partnership Interest
obtained by such creditor shall be only that of an assignee, and in no event shall such creditor
have the rights of a Substitute or Additional Limited Partner, unless such creditor is a
shareholder or affiliate of the General Partner, in which case such creditor shall have any and all
rights of a Substitute or Additional Limited Partner.

ARTICLE XI

Representations and Warranties

     Section 11.01 Limited Partners. Each Limited Partner represents and warrants, as to
itself, to the Partnership and to every other Partner as follows:

     (a) Such Limited Partner will promptly, upon request by the General Partner, provide all
financial data, documents, reports, certifications or other information necessary or appropriate to
enable the Partnership to apply for and obtain an exemption from the registration provisions of
applicable law and any other information required by governmental agencies having jurisdiction over
the Partnership.

     (b) There is no misrepresentation contained in any document or questionnaire completed by the
Limited Partner at the request of the General Partner, its managers, members, officers, employees,
agents or affiliates.

14

 

     (c) If such Limited Partner is a corporation, trust or association, the officer signing on
such Partner’s behalf has been duly authorized to execute and deliver this Agreement and the
Certificate.

ARTICLE XII

Special Power of Attorney

     Section 12.01 Execution and Consent. Each Limited Partner hereby irrevocably
constitutes and appoints the General Partner and its respective successors (hereinafter referred to
as “Special Attorney”) as the attorney-in-fact for such Limited Partner with power and
authority to act in the Limited Partner’s name and on the Limited Partner’s behalf to execute,
acknowledge, swear to and file documents and instruments necessary or appropriate to the conduct of
Partnership business, which will include, but not be limited to, the following:

     (a) the Certificate and this Agreement, as well as amendments thereto as required by the laws
of any state;

     (b) any other certificates, instruments and documents, including fictitious name certificates,
as may be required by, or may be appropriate under, the laws of any state; and

     (c) any documents that may be required to effect the continuation of the Partnership, the
admission of an Additional or Substitute Limited Partner, the withdrawal of a Limited Partner, or
the dissolution and termination of the Partnership, provided such continuation, admission or
dissolution and termination are in accordance with the terms of the Certificate and this Agreement.

     Section 12.02 Procedural Aspects. The power of attorney granted by each Limited
Partner to the Special Attorney:

     (a) is a Special Power of Attorney, coupled with an interest, and is accordingly irrevocable;

     (b) may be exercised by the Special Attorney for each Limited Partner by listing all of the
Limited Partners executing any instrument with a single signature of such Special Attorney acting
as attorney-in-fact for all of them; and

     (c) shall survive the delivery of an assignment by a Limited Partner of the whole or any
portion of such Limited Partner’s Partnership Interest; except that where the assignee has been
approved in accordance with the provisions of this Agreement for admission to the Partnership as a
Substitute Limited Partner, the Power of Attorney shall survive the delivery of such assignment for
the sole purpose of enabling the Special Attorney to execute, acknowledge and file any instrument
necessary to effect such substitution.

ARTICLE XIII

Dissolution and Liquidation

     Section 13.01 Dissolution. The Partnership shall be dissolved upon the earliest to
occur of the following:

15

 

     (a) the expiration of the term of the Partnership;

     (b) the withdrawal, resignation or Involuntary Withdrawal of the General Partner, or any other
event that results in such entity ceasing to be a General Partner;

     (c) the General Partner, in its sole and absolute discretion, elects to dissolve the
Partnership; or

     (d) The happening of any other event, including the entry of a decree of judicial dissolution
under Section 17-802 of the Delaware Act, that under the law of the State of Delaware, mandates the
dissolution of the Partnership.

     Section 13.02 Liquidation. Upon the dissolution of the Partnership, (i) the General
Partner or, if there is then no General Partner or if the principals of the General Partner are
unable to act on its behalf, (ii) (a) the person or persons previously designated in writing by the
General Partner, or (b) if the General Partner has not made such a designation, the person or
persons designated by Limited Partners owning more than fifty (50%) percent of the Partnership
Interests held by Limited Partners, or (iii) the trustees, receivers or other persons required by
law to wind up the affairs of the Partnership (collectively, the “Liquidators”), shall
cause the cancellation of the Certificate, liquidate the assets of the Partnership, pay off known
liabilities, establish reserves for contingent liabilities and expenses of liquidation, apply and
distribute the proceeds of such liquidation in accordance with Capital Account balances maintained
in accordance with the provisions of Section 9.01 hereof and the Delaware Act, and shall take all
other steps necessary to wind up the affairs of the Partnership as promptly as practicable. To the
extent reasonable, the business of the Partnership may continue to be conducted until liquidation
is complete.

     Section 13.03 Distribution in Kind. Notwithstanding the provisions of Section 13.02
hereof, if upon dissolution of the Partnership the Liquidators shall determine that an immediate
sale of part or all of the Partnership’s assets would be impractical or would cause undue loss to
the Partners, the Liquidators may, in their absolute discretion, either defer for a reasonable time
the liquidation of any assets except those necessary to satisfy liabilities of the Partnership
(other than those to Partners) or distribute to the Partners, in lieu of cash, as tenants in common
and in proportion to their respective interests in the Partnership, undivided interests in such
Partnership assets as the Liquidators deem not suitable for liquidation.

     Section 13.04 Final Statement. As soon as practicable after the dissolution of the
Partnership, the Liquidators shall cause the Partnership’s accountants to prepare and furnish to
the Partners a final statement of the Partnership’s assets and liabilities.

ARTICLE XIV

General Provisions

     Section 14.01 Notices and Addresses. Any notice or other communication required or
permitted to be given pursuant to this Agreement shall be in writing and shall be considered
properly given if mailed by first class United States mail, postage prepaid, registered or
certified with return receipt requested, facsimile, or by delivering same in person to the intended
addressee. Notice so mailed shall be effective (a) upon personal delivery thereof, including,

16

 

without limitation, by overnight mail or courier service, (b) in the case of notice by United
States mail, two (2) days after such notice was deposited in a receptacle maintained by the United
States Post Office for the acceptance of mail, or (c) in the case of notice by facsimile, upon
transmission thereof; provided such transmission is promptly confirmed by any method set
forth in clause (a) or (b) above. Notice given in any other manner shall be effective only if and
when received by the addressee. For purposes of notice, the addresses of the Partners shall be as
set forth on Schedule 1 attached hereto; provided, however, that any Partner shall have the
right to change its address for notice hereunder to any other location within the continental
United States by the giving of ten (10) days’ notice to the other Party in the manner set forth
hereinabove.

     Section 14.02 Titles and Captions. All Article and Section titles and captions in
this Agreement are for convenience only and shall not be deemed part of this Agreement and in no
way define, limit, extend or describe the scope or intent of any provisions hereof.

     Section 14.03 Pronouns and Plurals. Whenever the context may require, any pronoun
used herein shall include the corresponding masculine, feminine or neuter forms. The singular form
of nouns, pronouns and verbs shall include the plural and vice versa.

     Section 14.04 Further Action. The Partners shall execute and deliver all documents,
provide all information and take or forbear from taking all such action as may be necessary or
appropriate to achieve the purposes set forth in this Agreement.

     Section 14.05 Applicable Law. This Agreement shall be construed in accordance with
and governed by the laws of the State of Delaware.

     Section 14.06 Binding Effect. This Agreement shall be binding upon and inure to the
benefit of the parties and their heirs, executors, administrators, successors, legal
representatives and assigns.

     Section 14.07 Integration. This Agreement constitutes the entire agreement among the
parties pertaining to the subject matter hereof, and supersedes all prior agreements and
understandings pertaining thereto. No covenant, representation or condition not expressed in this
Agreement shall affect or be deemed to interpret, change or restrict the express provisions hereof.

     Section 14.08 Amendment. This Agreement may be modified or amended only by
affirmative vote of the General Partner and Limited Partners owning more than fifty percent (50%)
of the Partnership Interests held by Limited Partners, provided, however that the
General Partner may amend this Agreement from time to time without the consent, approval or other
authorization of, or notice to, any of the Limited Partners if, in the opinion of the General
Partner, the amendment does not have a material adverse affect on the Limited Partners generally,
and to update Schedule 1.

     Section 14.09 Waiver by Partner.

     (a) Any Partner may, but shall not be obligated to, by notice to the General Partner, waive
any of its rights or any conditions to its obligations hereunder, or any duty, obligation or
covenant of any other Partner to it.

17

 

     (b) No such waiver shall affect or alter the remainder of this Agreement, but each and every
covenant, agreement, term and condition hereof shall continue in full force and effect with respect
to any other existing or subsequent breach.

     Section 14.10 Rights and Remedies.

     (a) The rights and remedies of any of the Partners hereunder shall not be mutually exclusive,
and the implementation of one or more of the provisions of this Agreement shall not preclude the
implementation of any other provision.

     (b) Each of the Partners confirms that damages at law may be an inadequate remedy for a breach
or threatened breach of any provision hereof. The respective rights and obligations hereunder
shall be enforceable by specific performance, injunction or other equitable remedy but nothing
herein contained is intended to or shall limit or affect any rights at law or by statute or
otherwise of any Partner aggrieved as against the other Partners for a breach or threatened breach
of any provision hereof, it being the intention of this paragraph to make clear that the respective
rights and obligations of the Partners hereunder shall be enforceable in equity as well as at law
or otherwise.

     Section 14.11 Counterparts. This Agreement may be executed in counterparts, all of
which taken together shall constitute one agreement binding on all parties, notwithstanding that
all the parties are not signatories to the original or the same counterpart. Each party shall
become bound by the Agreement immediately upon affixing his or its signature hereto, independently
of the signature of any other party.

     Section 14.12 Waiver of Partition. Each Partner hereby waives any right to partition
of the Partnership property.

[Signature Page Follows.]

18

 

     IN WITNESS WHEREOF, this Limited Partnership Agreement has been duly executed as of the day
and year first above written.

	 	 	 	 	 
	 	 	GENERAL PARTNER:
	 
	 	 	 	 
	 	 	JUAN DE FUCA CABLE MANAGEMENT, INC.
	 
	 	 	 	 
	 

	 	By:	 	/s/ Anthony O. Duggleby
	 

	 	 	 	 
	 

	 	Name:	 	Anthony O. Duggleby
	 

	 	 	 	 
	 

	 	Title:	 	President
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	LIMITED PARTNERS:
	 
	 	 	 	 
	 	 	SBJF HOLDING CORP.
	 
	 	 	 	 
	 

	 	By:	 	/s/ Paul Manson
	 

	 	 	 	 
	 

	 	Name:	 	Paul B. Manson
	 

	 	 	 	 
	 

	 	Title:	 	President
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	BOUNDLESS ENERGY NW, INC.
	 
	 	 	 	 
	 

	 	By:	 	/s/ Brian N. Chernack
	 

	 	 	 	 
	 

	 	Name:	 	Brian N. Chernack
	 

	 	 	 	 
	 

	 	Title:	 	President
	 

	 	 	 	 

19

 

Schedule 1

Names, Addresses and Partnership Interests of Partners

	 	 	 	 	 	 	 
	 	 	Capital Contributions	 	Partnership Interest
	GENERAL PARTNER:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Juan de Fuca Cable Management, Inc.

	 	Original: $1.00
	 	1% General Partnership
	203 Red Stone Hill

	 	Additional:                     
	 	Interest
	Plainville, CT 06062
	 	 	 	 	 	 
	Telephone: (860) 747-0497
	 	 	 	 	 	 
	Facsimile: (860) 747-0297
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	LIMITED PARTNERS:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	SBJF Holding Corp.

	 	Original: $49.50
	 	49.5% Limited Partnership
	Lobby Box 91

	 	Additional:                     
	 	Interest
	Suite 1400
	 	 	 	 	 	 
	333 Seymour Street
	 	 	 	 	 	 
	Vancouver, British Columbia V6B 5A6
	 	 	 	 	 	 
	Telephone: (604) 689-2991
	 	 	 	 	 	 
	Facsimile: (604) 689-2990
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Boundless Energy NW, Inc.

	 	Original: $49.50
	 	49.5% Limited Partnership
	203 Red Stone Hill

	 	Additional:                     
	 	Interest
	Plainville, CT 06062
	 	 	 	 	 	 
	Telephone: (860) 747-0497
	 	 	 	 	 	 
	Facsimile: (860) 747-0297
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	TOTAL:

	 	$	100.00	 	 	100% Partnership Interests

20

 

Schedule 2

List of Assets Contributed or to be Contributed

by Assignor, as an affiliate of Limited Partners

	 	 	 	 	 
	Item	 	Date	 	Description
	Government/public
relations (Canada)
consulting contract

	 	February 16, 2005
	 	Contract with Pilot
House to advise and
assist in
communications,
publications and
meeting for Canadian
permitting &
development.
	 

	 	 
	 	 
	Filing and accounting
systems

	 	Under development,
currently in draft
form
	 	Accounting system
soon to be updated
to conform with
specifics in Gantt
charts -
confidential.
Filling structure
will follow a
hierarchical model
based on NEB
Application
structure
	 

	 	 
	 	 
	Presidential Permit
Application

	 	Filed December 16,
2004
	 	Federal US
regulatory document
required for the
project as a
preliminary step in
permitting major
projects.
Docket no: PP_299
	 

	 	 
	 	 
	BPA Interconnection
Application for Queue

position

	 	Sent June 1, 2004
	 	Request for
interconnection
(#132, 133, 134) up
to 990 MW at Port
Angeles and/or
Fairmount
substations, secured
by $10,000 deposit
	 

	 	 
	 	 
	ABB Interconnection
Facility Study No.
04TX-11754 (completed
for BPA)

	 	January 25, 2005
	 	Potential connection
points in the Port
Angeles area,
sensitivity analyses
for feasibility of
different siting,
routing and
technical options.
	 

	 	 
	 	 
	Western Electric
Coordinating Council
(WECC) Regional Study
Authorization

	 	 	 	Application,
approval,
organizational
materials, meeting
minutes, study scope
and progress report
for SBPRTS to
undertake the
analysis of regional
impact of the
project — beyond
immediate effects on
interconnected
utilities — to
establish path
rating for
transmission line
and to determine
system
impacts/benefits.
Preliminary results
required to verify
project capacity for
open season.
	 

	 	 
	 	 
	BCTC interconnection
application

	 	Sent June 3, 2004,
revised November 15,
2004
	 	Application for
interconnection to
990MW, upgraded to
multi-terminal 1600
MW HVDC line with
PG&E, with capacity
to expand up to
3200MW
	 

	 	 
	 	 
	NEB Application
material, includes:

     1. Project outline

     2. Draft project
justification

     3. Tables for
VECs/species of
concern

	 	1. Updated as
details require

2.Revised December

2, 2004

3. January 11, 2005
	 	1. Describes the
nature, background,
technical,
regulatory and
environmental
rationale behind the
project

2. Summary of
infrastructure,
economic and
technological
benefits of the
project compared to
other options

3. Preliminary
matrices of
environmental
features of special
concern, applicable
at different spatial
and temporal scales
to assess project
impacts.

21

 

	 	 	 	 	 
	Item	 	Date	 	Description
	Table of stakeholder
consultations to date
and minutes

	 	Daily updates
	 	Summary of dates,
representatives and
topics of all
communications, as
requested by NEB to
include in
Application.

22

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}]]