- 8 - and received into evidence. The partnership was organized as a limited partnership under the laws of the State of California. The partnership agreement was filed with the Office of the Secretary of State for California on July 18, 1984. The partnership agreement provides in pertinent part: Look-back Provision. * * * Due to the uncertainties of the cattle breeding business, the ability of all Limited Partners to meet their obligations under this Agreement and any other unforeseen future events the General Partner will require a certain flexibility in conducting the financial affairs and establishing the business of the Partnership. Therefore, it is mutually agreed that such Partners['] permanent pro rata share of Partnership capital, income, losses, credits, and distributions will be determined on December 31, 1988 and at the end of the Investment Period. Each Partner will be liable to return cash to the Partnership, without interest, to the extent necessary, to equalize the amount of loss, gain, distributions and credits that exceed the amount that is determined to be their [sic] correct share of these items at the end of the investment period. * ** * * * * * Remedies. The right to expel any Limited Partner who may fail of use [sic] to pay into the capital of the Partnership any portion of his subscription within thirty (30) days after its due date, or who may attempt to participate in or interfere in any way with the management of the Partnership's affairs, is hereby expressly reserved to the General Partner in his sole discretion. * * * The defaulting Limited Partner may be expelled from the Partnership in which case he will be entitled to the amount in his capital account, determined on a cash basis, as of the end of the [preceding] fiscal year after deduction therefrom for any amount dues and owing to the Partnership for any unpaid assessments of the expelled Limited Partner, and for each succeeding assessment as it becomes due. A Limited Partner who defaults or voluntarily withdraws from the Partnership will be entitled to the amount in hisPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011