Estate of H.A. True, Jr. - Page 263




                                       - 33 -                                         
               9.  In the event that a partner or partner’s spouse                    
               ceases to devote all or a substantial part of his time                 
               to the business of the partnership, he shall be deemed                 
               to have filed with the partnership a Notice of Intent                  
               to Withdraw, unless the remaining partners unanimously                 
               agree to permit such partner to continue as a partner.                 
              The True children received no independent legal or                      
          accounting advice when they entered into the buy-sell agreements.           
          They did not know who drafted the agreements or why, in the case            
          of Belle Fourche, they were required to structure the purchase              
          with a combination of stock and debt.  However, the True                    
          children, having been exposed from childhood to Dave True’s                 
          business philosophy, understood his reasons for including the               
          active participation and book value purchase price requirements             
          in the buy-sell agreements.                                                 
              Dave True consulted with Mr. Harris, the family’s longtime              
          accountant and principal tax and economic adviser, and C.L.                 
          Tangney (Mr. Tangney), Mr. Harris’s employer, before entering               
          into the buy-sell agreements.  On one occasion, Dave True also              
          discussed the True Oil and True Drilling buy-sell agreements with           
          Claude Maer (Mr. Maer), an attorney who was assisting the True              
          companies on an unrelated income tax matter.                                
              Dave True mainly consulted with Mr. Harris regarding using a            
          tax book value purchase price formula under the buy-sell                    
          agreements.  Mr. Harris was not a professional appraiser and had            
          no significant practical experience in valuing businesses.                  







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Last modified: May 25, 2011