Estate of W.W. Jones II, Deceased, A.C. Jones IV, Independent Executor - Page 23




                                       - 23 -                                         

               Section 9.4 of the JBLP agreement provides that a general              
          partner may be removed at any time by the act of the partners               
          owning an aggregate 51-percent interest in the partnership.                 
          After removal, if no general partners remain, the limited                   
          partners shall designate a successor general partner.  If the               
          limited partners fail to designate a successor general partner              
          within 90 days, the partnership will dissolve, affairs will be              
          wound up, and the partnership will terminate.                               
               Section 9.4 effectively gives ultimate decision-making                 
          authority to the owner of the 83.08-percent limited partnership             
          interest.  Under the threat of removal of the general partner,              
          the 83.08-percent limited partner would have the power to control           
          management, to compel a sale of partnership property, and to                
          compel partnership distributions.  If the general partner                   
          refused, the 83.08-percent limited partner could force                      
          liquidation within 90 days.  Having the ability to force                    
          liquidation also gives the 83.08-percent limited partner the                
          right to force a sale of the partnership assets and to receive a            
          pro rata share of the NAV.  Because the 83.08-percent limited               
          partner has the power to control the general partner or to force            
          a liquidation, the discounts proffered by Elliott are                       
          unreasonable and unpersuasive.  The size of the interest to be              
          valued and the nature of the underlying assets make the secondary           
          market an improbable analogy for determining fair market value.             





Page:  Previous  13  14  15  16  17  18  19  20  21  22  23  24  25  26  27  28  29  30  31  32  Next

Last modified: May 25, 2011