-13- annual management fee of three-fourths of 1 percent of the aggregate value of Tandrill’s investments with Manhattan Metals (including the value of commodities subject to futures contracts), the value of premiums paid for options, and cash on hand. Such fee was capped at a maximum of $50,000, or $12,500 per calendar quarter, for the period ending September 30, 1980, and at a maximum of $25,000 per year, or $6,250 per calendar quarter, thereafter. The Management Agreement had no fixed termination date; it could be terminated on 30 days’ notice by either party. The agreement provided that, if petitioner terminated the agreement before September 30, 1980, Tandrill would pay Manhattan Metals the difference between $50,000 and the sum of the quarterly fees that had been paid to Manhattan Metals for that period. Manhattan Metals was not required to perform services exclusively for Tandrill. Petitioner understood that although Manhattan Metals would conduct Tandrill's trading activities and that Mr. Illingworth would be in charge of deciding the partnership’s trading positions, Mr. Illingworth would be assisted in doing so by others. Petitioner had no interest in managing Tandrill’s day-to-day trading activities; he merely wanted the right to make suggestions and review documents. At the time that the trades were undertaken, petitioner did not understand the exact nature of Tandrill's trading activities, or the mechanics and theories of commodities trading. Although Mr. Illingworth sent petitioner periodic updates regarding Tandrill’sPage: Previous 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Next
Last modified: May 25, 2011