HomeMy WebLinkAboutAgreement of Limited PartnershipAGREM= OF LUSMM PAP TNERSHIP
OF
CREEK MEADOWS PARTNE_2S, L.P.
THIS AGREEMENT OF LIMITED PARTNERSHIP is made and entered into on
A&P-m" 71 a . 2005- It is between BAKER & CARNES MANAGEMENT,
L.L.C., a Texas limited liability minpany, referred to in this agreement as the "General Partner",
RADR DEVELOPMENT, LTD, a Texas limited partrierstip, Limited Partner and BAKER &
CARNES INVESTMENTS, LS,.C., Limited Partner, together with any additional or substituted
limited partners admitted to the Partnership in accordance with the terns of this agreement, all of
whom are referred to in this agreement as "Limited Partners."
ARTICLE I
DEFINITIONS
The following terms have -he following meanings when used in this agreement:
"Act" means the Texas Revised Limited Partnership Act
"Affiliate' means any person or entity that controls or is controlled by the General Partner,
or is controlled by the same persor or entity that controls the General Partner. In this definition, the
term "control" includes the ownership ofmore than 50 percent of the beneficial interest in the person
or entity.
"Agreement" or "partnership agreement" means this agreement of limited partnership,
including any amendments that may be made.
"Bankruptcy" means, as to any Partner, the Partner's taking, or acquiescing in the taking, of
any action seeking relief under, or advantage of any applicable debtor relief, liquidation,
receivership, conservatorship, bankruptcy, moratorium, rearrangement, insolvency, reorganization
or similar law affecting the rights or remedies of creditors generally, as in effect from time to time.
For the purpose of this definition, the term "acquiescing" shall include, without limitation, the
failure to file, within 10 days after its entry, a petition, answer, or motion to vacate or to discharge
any order, judgment, or decree providing for any relief under any such law.
"Capital contdbution(s)" means the contribution(s) made to the capital of the Partnership
from time to time by a Partner in crash or property.
"Certificate" means the cetificate of limited partnership to be filed by the General Partner
with the Secretary of State of Texas in accordance with this agreement
"Code" means the Internal Revenue Code of 1986, as amended and in effect from time to
time.
"Contribution Loan" shall mean the u�,9J� 6 loan from RADR Development, Ltd to
Baker & Cares Management, L.:_.C. to fund in part the capital contribution of Baker & Cares
Management, L.L.C. as limited partner.
"Involuntary Transfer Evenf'shall mean a Partner bankruptcy, a Partner's dissolution or
death, the termination of a Partne's marital relationship, or any other event causing a Partner to
Agreement of Limited Partnership _ Page 1
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ARTICLE IV
PURPOSES
The purposes of the Parmenhip shall be the purchase, development, sale, service, lease and
management of real properties described generally as a 266.862 acre, more or less, tract on Green's
Prairie Trail in Brazos County, Texas, also known as the Vance/Goss Tract ("The Property"), and
to engage in any or all other lawful acts.
ARTICLE V
GENERAL PARTNER AND PLACE CF BUSINESS
The General Partner of the Partnership is BAKER & CARNES MANAGEMENT, L.L.C.,
with offices at 230 Southwest Parkway, College Station, Texas 77840. The address of the General
Partner is the principal place of busir ess of the Partnership. The General Partner may maintain other
offices for the Partnership as it may determine to be necessaryor advisable from time to time. Any
requests for information concerning the Partnership shall be directed to the General Partner at the
principal place of business of the Partnership.
Cully Lipsey small serve as the registered agent of the Partnership. The address of the
registered agent of the Partnership shall be 1021 University Drive E., Suite #102, College Station,
Texas 77840. The address and the narie of the registered agent o f the Partnership may be changed as
the General Partner may designate by written notice to the Limited Partners and by filing an amended
Certificate with the Secretary of State.
ARTICLE VI
CAPITAL CONTRIBUTIONS
General Partner's Contribution
6.01. At the time of execution of this Agreement the General Partner contributed the amounts
and property shown on Exhibit A, attached hereto and made a part hereof.
Limited Partrier's Contributions
6.02. At the time: of execution of this Agreement the Limited Partners contributed the amounts
and property shown on Exhibit A. attached hereto and made apart hereof. The initial Limited Partners
will have the Percentage Interests in the Partnership set forth in paragraph 10.02 of this agreement. In
addition, Baker & Canes Investments, L.L.C. shall cause its rights under a purchase and sale
agreement with Betty V. Goss, B.F. Vance, Jr., and William R Vance for the purchase of the Property
to be assigned to the Partnership.
The amount shcwn in Exhibit A reflects the amount of cash to be contributed, or the agreed
value of a contribution in a form other than cash.
Limited Liability for Limited Partners
Agreement of Limited Partnersiuf; Wage 3
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(C) the loans shall bear interes: at the lesser of (i)eighteen percent
(18%) per annum and (ii) the maximum rate permitted by applicable
law (the "Default Interest Rate") from the date that the loan was made
until the date that such loan, together with all interest accrued thereon,
is repaid to the Lending Partners,
(D) �dl distributions from the Partnership that would otherwise be
made to the Delinquent Partner (whether before or after dissolution of
the Partnership) shall, instead, be paid to the Lending Partners until the
loans aid all interest accrued thereon have been repaid in full to the
Lending Partners (with all such payments being applied first to interest
earned end unpaid and then to principal), and
(E) the repayment of the loans and all interest accrued thereon shall
be secur ed by a security interest in -he Delinquent Partner's interest, as
more faly set forth in Section 2.1 ;c) below;
(iii) Permit the non -Delinquent Partners to make additional Capital
Contributions to the Partnership prorata (or in such other percentages as they
may agree), of that portion of the additional Capital Contribution of the
Delinquent Partner that is in default with thD result that the Percentage Interests
shall be adjusted in proportion to the agg-egate Capital Contributions of all
Partners after such additional Capital Contributions have been made;
(iv) Exercise, the rights of a secured party under the Uniform Commercial
Code as in effect in the State of Texas;
(v) Exercise any other rights and remedies available at law or in equity, or
(vi) Abandon the proposed activities, :-eturn all payments tendered with
respect to such additional Capital Contribution and sell or otherwise dispose of
or act with respect to the activity or investment for which the additional Capital
Contribution was called
6.06. Each Partner grants to the Partnership, and to each Lending Partner with respect to any
loans made by the Lending Partner to that Partner as a Delinquent Partner pursuant to paragraph 6.05
above, as security, equally and ratably, for the payment of all Capital Contributions that Partner has
agreed to make and the payment of all loans and interest accrued on them made by Lending Partners
to that Partner as a Delinquent Partner pursuant to paragraph 6.05, a security interest in and a general
lien on its Interest and the proceeds thereof; all under the Uniform Commercial Code of the State of
Texas. On any default in the paymen: of a Capital Contribution or in the payment of such a loan or
interest accrued on it, the Partnership or the Lending Partner, as applicable, is entitled to all the rights
and remedies of a secured party under the Uniform Commercia- Code of the State of Texas with
Agreeme_tt of Limited Partnership Page 5 of
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Liquidation
7.07. When the Partnership is liquidated, each Partner with a deficit in its capital account
(whether by virtue of failure to make an initial contribution, loans, distribution, or any other reason)
will be obligated to cor;tribute to the capital of the Partnership an amount of cash equal to the deficit
in the capital account balance. The cash must be paid within 90 days after the date of the liquidation,
and the amounts so contributed may be paid to the creditors of -he Partnership or distributed to the
other Partners in the ratio of the then positive balances in their respective capital accounts.
Partition
TO& All interests in the property owned by the Partnership shall be deemed owned by the
Partnership as an entity. Partner, individually, shall have any ownership of such property or interest
except as a Partner in the Partnership. Each of the Partners irrevocably waives, during the term of the
Partnership and during any period of its liquidation following any dissolution, any right that it may
have to maintain any action for parit.on with respect to any of the assets of the Partnership.
Distributions to Partners
7.09. (a) The General Partner does not guarantee the return of the Limited Partners'
contributions or the making of a profit from the operations of the Partnership, except as provided
below.
(b) Subject to paragraph 8.03, the General Partner may return capital contributions or
distribute net profits to the Partners without regard to the current profits or Iosses of the Partnership
from operations. Thesedistributions shall be calculated in the saff e manner that profits and losses are
calculated, as described above.
However, the General Partner may never make any distributions that will impair the ability of the
Partnership to pay its just debts as they mature. Furthermore, the General Partner may never make any
distribution that would violate limitations set forth in Section 6.07(a) Article 6132a-1 of the Revised
Civil Statutes of Texas.
(c) A Partner who receives a distribution in violation of this Agreement shall be
personally Iiable to return that distribution, regardless of whether the Partner knew that distribution
was prohibited.
ARTICLE VIII
CONTROL AND MANAGEYIE7 TT
Role of General Partner
8.01. (a) The General Partner las full, exclusive, and complete discretion in the management
and control of the Partnership for any the purposes set forth in Article IV of this agreement, unless
specifically stated otherwise in this agreement.
(b) The General Partner agrees to conduct the operations contemplated under this agreement
Agreement of Limited Partnership Page 7 of
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than a Partnership purpose.
(e) Require any Partner to male any contribution to the capital of the Partnership not provided
for in this agreement.
(f) Amend this partnership agreement.
(g) So long as the Contribution Loan remains unpaid, sell, lease for a period to exceed one (1)
calendar year, exchange, mortgage, encumber or otherwise dispose of the Property or any portion
thereof or enter into or make any one or series of contracts, agreements, or other undertakings having
an aggregate value exceeding $50,001) without the consent of Limited Partners holding not less than
a Required Interest;
(h) Sell, pledge, mortgage, encumber, or otherwise transfer or dispose of all or substantially
all of the Partnership assets without tie unanimous consent of a.l of the Limited Partners;
(i) Cause orpennit the Partnership to merge into or consolidate with any other entity without
the unanimous consent of all of the Limited Partners;
0) Make any calls for additional Capital Contribution:, from the Limited Partners of the
Partnership without the unanimous consent of all of the Limited Partners;
(k) Cause or permit the Partnership to make distributions of cash or assets of the Partnership
to its Partners without the unanimous consent of all of the Limited Partners; and
(1) Enter into any contract with, General Partner or any Affiliate of General Partner without the
unanimous consent of all of the Limited Partners; and
(m) Cause or permit the Partnership to change its purpose.
Other and Competing Activities
8.04. Any Partner may engage in or possess an interest in other business ventures of any nature
or description, independently or with others, similar to, or competitive with the business conducted
by the Partnership. Neither the Partnership nor any Partner shall have any rights in or to such
independent ventures or the income or profits derived from these: other activities.
Liability of General Partner
8.05. The General Partner is not liable, responsible, or accountable in damages or otherwise
to the Limited Partners or the Partnership for any act performed by the General Partner in good faith
and within the scope of this Agreement. The General Partner is liable to the Limited Partners only for
conduct that involves gross negligence, bad faith, or fraud.
Indemnification of General Partner
8.06. The Partnership shall indemnify and hold harmless 'he General Partner and its officers,
directors, agents, and representatives from and against any loss, damage, liability, cost or expense
Agreement of Limited Partnership - Page 9 of
25
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agl m pa;san si l4gjgjsuodsaj ;uamoSeuem Ip;; -diquauyied ag;;o;lEgaq uo io io3 ssauisnq tm
;oesneA zo digsiouued ag;;o;uamaSeuem agl m }ied aalet;ou �Em uauued Paltun'I ail.L '£0'6
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digsmuµ ,j aip o; umlai of algeil o q III!& siauLm j pa;Imrl agl `Iam ied IEiauaO atp ,�q io dulsiauued
atg !q poRmfostp;ou are sio;Ipaic s;i of saizillgEr[ s�digsiauued mp legl;uajca ag; os, 70-6
suogngLnslQ;O u1142lg
-digsiauyEd alp o; suotingis;uoO TelidEO angoadsai naq; puo taq
digmuared agl;o sassol io slgap at7;o ,tue io; `digsiouued ag7;o io;ipaio JCuE so `rau mj lesauaO agl
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. quyZ pallmiq
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Xi 3'IOI'Drd
-sSuipaaoord;o suos asap;;onpuoo o; iau; ied s allEyil xes ag; dq pain bar fIcIeu0segi
sSuig; IIE pue !ue Suiop moig r[Isgai io op of pue aleiad000 of owfe szauued pa;imi l agl, -pieSai
siip m =Lnxed aill pue digsi =,l agl ivasaidas of `uola slp a;nlosgE pue alos slim `CtuoglnE se
g
pue sasodmd xei leiapa; so; „*auyiFd siallEyil xey„ aql oq si izamcl leiauQq aill, suopvuF=exQ gons
g;In, uoi}oouuoo m s;soo pmE saoinsas leuoissa;oid io; spun; dgsiamm'I puadxa of pue `sSuipaaoosd
TeioipnCpuE a�REx}st¢ upE Smpnlom `sat;uog;nE xEl �q snEE cigsxaigaEd egl3o suoREuimExa IlE glue
uoi;oauaoo in dtgsjoul m l axp l=soi3ai of paxmbai pue pazuog;ne si nim l Iesauag aqs, -50-8
raigzed slapuwxul
-saai,uos gons io; dulssaiq mj zip Fq pied saa; !ue moIJ panuap sii;ord XuE of io m sRlSu
fue anEq 7T4s siotgiEd iaq;o aqi iou dulsiaulmcl oig iagiiapZ saiEr anp4odmoo lE pm smra; fieuioisno
uo sooi xos zip Suuapuaz uosiad ag; o;esuadmoo ,CEm pue digsrauized ag;;o;legaq uo saolnsas
.iapuoi o; xou;nd � m tp:i x pa;Egi}::e uosaad !ue pue iauincl ,Cue ,Coldmo !ela digsiauyied ag; TEgi
paazae pue poo;siapun si li `,CieRuoo atp of luamaa�e sigl m Suigl,C� ouipuEisipin.;oN'LO'8
salEY[w 1pim SPEr}u0D
TOV ag;
iapun pollluuad;ualxa;sa;Eajf ag; of `aouaSiioau;uaimouoo is leiued `alos s;i Suipnlout XIIEo}ioads
`zaul-m(T lerauag ag; iq;oe o; aming io;oe nue;o ;no Suisue (saa; ,slauiop2 olgeuoseai Suipnioui)
No Authority to Bind Partnership
9.04. The Limited Partners have no power or authority tc sign for or to bind the Partnership_
All authority to act on behalf of the Partnership is vested in the General Partner.
Rights Specified in the Act
9.05. A Limited Partner shall De entitled to all rights of limited partners contained in the
Act to the extent that those rights have not been superseded, or may not lawfully be superseded, by
the provisions of this agreement.
. ARTICLE X
PERCENTAGE INTERESTS: ALLOCATIONS AND DISTRIBUTIONS
Accounting Principles
10.01. The net income and net loss of the Partnership (and each item of income, gain, loss,
deduction, or credit entering into the computation of net income and net loss) shall be determined on
an annual basis in accordance with the accounting methods followed by the Partnership for federal
income tax purposes and otherwise in accordance with generally accepted accounting principles and
procedures_
Percentage Interests.
10.02. (a) The phrase "percentage interest" of each Partaer means that particular Partner's
interest in the capitaL net income, net loss, and distributions of the Partnership as set forth in this
paragraph of this agreement.
(b) The initial Percentage Interest of each Partner shall be as set forth below:
Type of Partner P rtner Name Percentage Interest
General Partner BAKER & CARNES 1%
1VANAGEMENT, L.L.C_
Limited Partner RADR DEVELOPMENT, LTD. 33.333%
Limited Partner BAKER & CARNES 65.667%
INVESTMENTS, L.L.C.
(c) The percentage interest of ;zch Partner may be adjusted from time to time by the methods
and for the reasons described elsewhere in this Agreement.
Agreement of Limited Par=ershio Page lr of
25
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siaulred paumr-1 agI}o Isoialur acp}o usd io IIs}o aasa}sueg ID aauoisse paluuuad oN 'z0'ZI
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aql pus `apo0 agl;o 90L Pus b01. suor;oaS }o suolsteoid all gum lualstsuoo iauuem e in fIdde
X aloruy saga u guo; Jos suorsrnoid uorinqulscp pue uoReool[a aql Ieg1 popualur st lI -SO'OI
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suopsaolly
(b) The assignee has executed an instrument reasonably satisfactory to the General Partner,
accepting and adopting the terms and provisions of this agreement.
(c) The assignor or assignee p ays any reasonable expens,s in connection with the admission
of the assignee as a Limited Partner.
(d) The General Partner consents to the assignee becoming a substitute limited partner. The
General Partner may withhold its consent, even arbitrarily, in th,: sole and absolute discretion of the
General Partner.
General Partner as Limited Partner
12.03. If the General Partner should acquire an interest as a Limited Partner, the General
Partner shall, with respect to such inteest, enjoy all the rights and be subject to all the obligations and
duties of a Limited Partner to the extent of such interest_
Transfer by General Partner
12.04. The General Partner may not transfer any or all of its interest in the Partnership without
the prior written consent of a Requires Interest of Limited Partners. If a transfer is approved, the
transferee assumes all of the obligations of the General Partner and the General Partner shall be
relieved of all further obligations and responsibilities. If a trans er of the General Partner's interest
is approved, the transfer will not cause the dissolution of the Partnership, which may continue with
the transferee as the General Partner the same as if the transferee :aad been the initial General Partner.
The restrictions on the transfer of the General Partner's interest in the partnerslup do not apply
to a transfer by the General Partner tc an Affiliate of the General Partner.
Transfer by Limited Partner
12.05. Each Limited Partner may transfer all or any portion of its Interest in the Partnership
pro ided the conditions set forth in p�uagraph 12.06 are satisfied. The General Partner may transfer
all or any portion of its Interest in the Partnership as a General Partner to an Affiliate or to any Person
who is approved by the Limited Partners, provided the conditions set forth in paragraph 12.06 are
satisfied. Any Transfer not satisfying the foregoing provisions shall be null and void. If the
Partnership is required to recognize a Transfer that does not satisf i the foregoing provisions (or, if the
Partnership, in its sole discretion, elects to recognize a Transfer that is not so permitted), the Interest
transferred shall be strictly limited to the transferor's rights to allocations and distributions as provided
in this Agreement with respect to the Transferred Interest, but the t-ansferee thereof shall not otherwise
be a Partner or admitted as a Partner:n the Partnership.
12.06. A Transfer shall not be effective unless and until the following conditions are satisfied:
(a) The transferor and transferee shall execute and deliver to the Partnership such
documents and instruments of conveyance as may be necessary or appropriate in the opinion of
counsel to the Partnership to effect such Transfer and to confirm tae agreement of the transferee to be
Agreement of Limited Partnership age 23 of
25
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30 sr a6ea a.gsian3zzn Paa pu?7 30 3vawaa=5F
s6Ep (p£) Lingl;o pouad E xo; suollipmo p1m suuQj Dams ag} uodn isaia}uI s,xauuu l SBUT s aTp
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aIES kmlunlOA DIP;o dTquQuL Ted aq} !q ldiaoax Laox; skap (p£) Sax?gl io3 -nee ooE pIIE a}aldLuoo
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,Cue lasunoo gons of opv oid TTegs xaulxed TETau20 aql pm `19mmcl LExauaO
aLp of kioloe;sges Algeuoseax eq ae-:Ts uormdo pue IasLmoo gon3 -}oa:ga gons of
IDS [moo go uo=do ue drgsiat=a aTp of gs?uxrg Llegs xoxa;sm:.Tl aLp pue apoD
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of dnlsjouL ci Dip asn-eo lou Il?M ia;su7uj, oqj IETp uoRETu.[guoo y (I)
:3" TTTMOTl03 aTp apTTlou:I IIEgs `-ioui ed Texauag
oq}!q paApm ssolcn `xauuEd Paxau.)[) oTp pue dulsxaulmj Dip o1 pagsmzg sluaumaop gonS -xa;suEx1,
gons LpIM uopoauuoo m smoul gcuuosaax 11 IT! } sosuodxa puz slsoo Lle -TO; aaxa;sueg xo.LOxa;su=
aLp 6q pasmqunax aq IIEgs d.gsxaulmcj aLp `saseo Ile uT -UX aljT sLTp;o suorstnoxd aLp Xq punoq
following the expiration or termination of the Partnership Option ("Partner Option")_ The place, date
and time of a sate following the exercise of a Partnership or Parmer Option shall be selected by the
purchaser, but shall not be more than:sixty (60) days after the exercise of such option. The purchase
price of such interest shall be paid on the same terms as set fora. in the Voluntary Sale Notice, or if
the purchaser so elects, in cash at closing. In the event more than one purchaser elects to exercise the
Partner Option, the available Interest will be divided among such purchasers on a pro rats. basis, unless
otherwise mutually agreed, and all such purchases and sales sha.1 be conducted contemporaneously
at such date and time determined by mutual agreement of the purchasers within the bounds set forth
above. In the event no remaining Partner elects to exercise the Partner Option, the selling Partner shall
be free to sell his Interest to the prospe;tive purchaser named in the Voluntary Sale Notice at the price
and on the terms contained therein.
(c) In the case of an Involuntary Transfer Event, a Partner may sell his Interest, or any
portion thereof, only after he has com.phed with the following specific requirements, as applicable:
(iii) If any Partner becomes a Bankrupt Partner, the Partnership shall have
the option at any time prior to the 180th day after receipt of notice of the
occurrence of tie event causing it to become a Bankrupt Partner, to buy, and
on exercise of that option the Bankrupt Partner or its representative shall sell,
the Bankrupt Partner's Interest. If the Partnership does not exercise such
option, the individual Partners shall have the option to purchase the remaining
portion of the B ankrupt Partner's Interests on a pro rates basis, unless otherwise
agreed, within ninety (90) days of the expiration or termination of the
Partnership's option hereunder. The payment to be made to the Bankrupt
Partner or its representative pursuant to this Section is in complete liquidation
and satisfaction. of all the rights and interest of the Bankrupt Partner and its
representative (and of all Persons claiming by, through, or under the Bankrupt
Partner and its -epresentative) in and in respect of the Partnership, including,
without limitation, any Interest, any rights in specific Partnership property, and
any rights against the Partnership and (insofar as the affairs of the Partnership
are concerned) against the Partners, and constitutes a compromise to which all
Partners have agreed.
(iv) In the e lent a Partner that is not a natural person (I) dissolves, disposes
of all or substantially all of its assets except to an Affiliate, merges into another
entity other than an Affiliate or otherwise engages in a transaction in which the
Partnership would be considered to have terminated within the meaning of
Section 708 of the Code, or (II) ceases to be controlled by substantially the
same Persons who control it as of the date of its admission to the Partnership,
the Partnership shall have the option at arty time prior to the 30th day after
receipt of notice: of the occurrence of such event, to buy, and on exercise of that
option such Partner shall sell, such Partner's Interest. If the Partnership does
not exercise sn.ch option, the individual Partners shall have the option to
Agreement of Limited Partnersi+ip Page 25 of
25
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PM uorpmnlgn gons aupj=3 farad oql pm `zasrelddE gans }o sourpug agp of slogCgo drgsiauumd
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luapuodopui pag.pnb E !q apmui aq 01 aniEn la'jiem IMJ 3o uorpExrmzalap aq1 alrr b KUM `asuadxa alos
nagl lg `uosiad gons `ls,DJ9Tq s,iauuEd E }o anlEn aqp Surpaeoai im=wfEsrp algEuoseai Xue sr aiarp31
�sisEq rmnuue E uo 1pualsvmoo pazgnn si pue drgsjot:=d agl sanlEn
.lirgeuosE@S lEgl uoipElnopo }o poipam io elnuuoj E fmm u.raquoo omgo E
se drgssamm l agp;o amen aqp jo smm1Ed aql Xq uoREunuralop e sal}E olaioq
y llgrrlxH m paquosap se digs_ mncj aqp uc lsazapul aamluaoiad IEpoy s,sauuEd
ZmTTas agl;o anFA agl of prbo oq Tlggs aoud asegomd agp `ssau: rM j agp jo
ouRaam Ignung ag11E sap3Eaaagp .CiiEnutzE pug `(,pouad a14ETu'A„ aqp) pouad .
argerTeAuopl agp 3o uoisnrouoo ag; le amumaaq maX aqp iq3 (II)
`opaiaq V llgigxg m pagriosap sE suoijngmuoD I I&D Mol a,iamsm(l aqp of
IEnba oq Regs ooud asegamd aqp `(„pouad argerseeuo_�I aqR) luaura 32v srip;o
uoRnoaxa agp;o olep aqp uio-g iza,� (I) auo ourpm pouad alp iod (I)
:sAmorro; sE p@mmialap aq rrmgs;oaiagl llnsw e se pros psaialul
ag13o aaud asegomd aqp ivang sa3suuy liulunlonul uE;o 1uaAa alp uI (rn)
-iapunaiaq uoRdo s,drgsiamied aqp jo uoREuruual io ualie=dxa 91CR3o
s,tEp (06) �Cpaura urglrre. `paa�E asUuarpo ssalun `srseq ElE3 oid E uo slsarapul
gons;o uorpjod ourutEmai aqp asr:gomd o1 uoRdo aqp aneq llegs siaulmd
lenpuipm oql 'uoRdo gons osi_oiaxa lou saop drgssauugd aqp 3I -dcgsiamimd
aqp 01 spsaiapul iaq io srq rigs lFgs: `lsasalm m iossaoons s asnods paseao@p
aqp ao `asnods aql `uoRdo pEgp;o as aioxa uo pue `iinq of `psaia �m m ioss000ns
s,osnods paseaoop aqp io `asnods gons of slsaialul Ples;c pzmmE agp;o
aorpou jo ldieoas ioUu Xep WS 1 air- of ioud omip nue le uoildo aqp anEq IrEgs
drgssauuEd aql `anogE gpzoj las polcad omT, aqp urglrm psaiapu gons asegomd
1ou saop zammd gans3l -asnods gons of lsaialul agp;o piemE ag13o step (06)
faamu urgprm `lsaialm gons ITm Iias o1 palEoggo aq pegs `lsasa:m m iossagons
s,asnods paseaoop aqp so `asnods gons pue `spsaialul gons ur Isamu! 11E
osegomd of uoRdo aqp anEq Irmgs iai7 re l irons uagl `(1sita gons }o ,uniogauaq
e sr iauuEd aqp 1ou io iaglagm `lsaialm gons Omploq ysiul -e jo aalsnlp g
sE io psazami gons jo iaumo lgnulnc sE iaglra) mmjul aqp m @ -,nods s,samiEd
Romp lsarmim=Cprunurmoo io aluedas ag101 paaoons 1ou saop i3uumd gons pug
`ooionrp io g1Eap ,Cq pgjeuruual si z qn l E;o drgsuoREloa reimxur agp3l (n)
-sapunaiaq uoRdo s,drgsuaulied agp;o
uoREurmml zo uoREirdxo aql jo skep (09) flxrs urglrm `paafE Q3yAmglo ss@lun
`srseq elms oid e uo lsaialul s,iamre d gons jo uowod oururgmai aqp awpind
an independent appraiser. The determination of the independent appraiser, however designated, is
final and binding on all parties.
(vii) The place, date and time of a sale made pursuant to and Involuntary
Transfer Event shall be selected by the ptrchaser, but shall not be more than
sixty (60) days after the exercise of the applicable option_ The purchase price
of such interest shall be paid in full or, at -he option of the purchaser, in sixty
(60) equal monthly installments of principal, with the first installment to
become due and payable on the date of closing and subsequent installments
being due and payable on the monthly ann.versary dates of the closing, and no
interest shall accrue thereon. In the event more than one Partner elects to
purchase an Interest hereunder, the available Interest will be divided among
such purchasers on a pro rata basis, unless otherwise mutually agreed, and all
such purchases and sales shall be conducted contemporaneously at such date
and time determined by mutual agreement of the purchasers within the bounds
set forth above.
(d) Upon compliance with the foregoing requirements, the transferee shall be admitted to
the Partnership as a substituted Partner. It is the intention of the parties hereto that the terms of this
Section 10.2 shall be legally binding upon the Partnership, all of the Partners of the Partnership and
their spouses, if any, and their respective successors in interest. By executing this Agreement, all
parties indicate their consent to be bo and solely by the terms of this Agreement and represent and
wan -ant that they are fully aware of, understand, and fully consent and agree to the provisions of this
Section 10.2 and its binding effect upon any community or separate property interest now or thereafter
owned in the Partnership.
12.07. If any Interest is sold, as Zgned, or Transferred during any fiscal year of the Partnership
in compliance with the provisions of this Article XII, profits, losses, each item thereof, and all other
items attributable to the Transferred Int zest for such fiscal year shall be divided and allocated between
the transferor and the transferee by taking into account their vary ag Interests during such fiscal year
in accordance with Code Section 706(d), using any conventions permitted by law and selected by the
General Partner. All distributions on or before the date of such Transfer shall be made to the
transferor, and all distributions thereafter shall be made to the transferee.
ARTICLE XIII
DISSOLUTION AND TERNlIlV'ATION
Events of Dissolution
13.01. The Partnership shall be dissolved and its business wound up on the earliest occurrence
of any one of the following events:
(a) The expiration of the tern of the Partnership as set forth in Article III.
Agreement of Limited-a-tnerShip p2ye 27 of
25
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inq digsiauum j aqi of siaumd Gip Xq apeua maq anEq 1Eaii smog !uE}o luaus BdaZ agl o,l, (q)
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IlEgs iolEpmbal agy roiepmbg se : oe hails saulmj pojpuq e Imic awfe srgl ur paptnoid se iauired
reiauaag nmau E gjpyL pogUj4suooai iou si dnlsrauuud oii 3r puE `loidnnluEq E paea ns so pareloap
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agi;o loidnnlueq so `purcmEspgirM `uoRnlossrp agl jo ivana aqi irl -drgsrauiaed age m isasaiur s,saulm l
polpzq,j e auaooaq Imam (s)aouued lE :auoo mau /Sq popaaoons sr oqn, iorgmcl lEaauag aTp jo dnlsiauuEd
aqi ur isaiaiuT L sauuEd lesauag n sixa-uagl age 3o suogzE ijgo pue `saSalrnud `sia.K.od agl
;o llE of paaoans IIrM ampaooid sRp Xq paloala (s)iauiaed lEiauaaJ �na\l iau}aEd IErauan se painiRsgns
oq of suosiad a.aoua io ouo alEuarsap `uoTloala gons uT `pue panupuoo aq pinogs drgsaauµEd Gig jo
ssamsnq acp Inp loop Xlsnouira?an siaulm l poluui7 aql `ivana gons sa}lE step 06 urgirea `;r luaaaaaalnE
crap jo suoRrpuoo aqi of ioG fgns pue suuoi age uo panuAuo_, aq Ilegs drgsioulaed agl }o ssaumiq
aqi zau;IEd puauaro agi3o foldnnlueq io `uounlossrp reALE4iRpYL agl,lo auaR oq; iy -ZO'El
zampud IEiauag n+au jo uogaala
-luauaaaiv`e sap sapun <_uo- Z.Igo s,iauinj jiuouog aTll}o 7 saumsse `ZO'£T gdElnEaed
iRye, oouepi000E uT `dnlsiaul-m l aig ur lsaiaim s,iaulaEd lerauQE) age of .aossaoms ago. se puol os
dnlsiouliEd agl;o uounlossrp arR R: lmsar iou llrm iauiaed IEr<>ua J agl3o ioidnnlneq so `IEmzIpipuA
iroRnlossTp aqy -21191110al3e SUR Jo ZO-£l gdRigemd ui paquosaid iau=m age ua palMlIMOoas sT
drgsiaTalaEd age ssapm `sauced IExauaaJ aql;o 6oidnnpzeq so `IemEipgira `uoRnlossrp arlZ (a)
-panlosscp oq pmogs dTgsaaccµed ail
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Distributions In Kind
13.05. In the event any or all of the assets of the Partnerslap cannot be liquidated, those assets
are to be distributed in kind accordirg to the priorities set forth in paragraph 13.04. Assets of the
Partnership distributed to the Partners shall be held and owned by the Partners as tenants in common.
In the event of the distribution of Partnership properties in kind, the fair market value of such assets
shall be determined by agreement of the Partners. The amount of gain or loss which would have been
realized by the Partnership for federal income tax purposes if the assets had been sold at such fair
market value rather than distributed in kind shall be treated as gala or loss from a disposition of the
assets of the Partnership, and allocated among the Partners iri accordance with Article x, such
allocations then being reflected in the Partners' respective capital accounts.
ARTICLE XIV
ACCOUNTING
Fiscal Year
14.01. The fiscal year of the Partnership shall be the calendar year.
Books and Records
14.02. The General Partner shall keep, or cause to be kept, full and accurate records of all
transactions of the Partnership in accordance with principles and practices generally accepted for the
cash or accrual method of accounting.
Inspection of Records
14.03. Any Partner may, for aay proper purpose during regular business hours, inspect and
copy any of the Partnership books and records at the principal place of business of the Partnership as
provided in Article V, or make other reasonable inquiries w; to Partnership affairs. Costs of
reproducing or copying Partnership books and records shall be at the expense of the Partnership.
Tax Returns
14.04_ Within 90 days after the end of each fiscal year, the General Partner shall prepare, or
cause to be prepared, state and federal income tax returns for the Partnership and, in connection with
those tax returns, make any available or necessary elections. Copies of all income tax returns of the
Partnership proposed to be filed for any year shaU be furnished to each Partner at least fifteen (15) days
prior to the date for filing the returns (including any extensions applicable to such returns). The returns
shall be filed by the General Partner o a or before the due date (in(Huding extensions).
P_yreemenc of Limited Pa=MerShiO Page 29 of
25
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,�Igzuoseal oq sl `Iaualsd relauaq ag.;o luaulopnf DIR Tn TPTP uo!le=ojm Iaglo Xu-v (o)
-Iauusd goea;o lun000s Iuildeo oql TIT aouslsq oTls (q)
-dnlsiaulled aTp;o hags aouuluq e pin auaualEls ssol pue lgold y (e)
:ouumollo; agl `Iea,i Izosg lelp Io; pue;o pua agl
;o se plo; om as slua nalels Ietou-eIg `asuadxa s dtWQulle j agl lu `slaulTsd pal?Tul l alp of Iangap
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-AXffIOIDIV
offices and places as maybe required by law (i) any amendment to this agreement that may be required
by a change in the name of the Partnership, change inregisteredsgent or similar matter, and (ii) any
amendment to this agreement made in compliance with Article :SLY. The power of attorney granted
by the Limited Partners to the General Partner is a special power coupled with an interest and is
irrevocable, and may be exercised by any party who, at the time of exercise, is a General Partner of
the Partnership. The power of attomey shall survive any transfer or abandonment of a Limited
Partner's Partnership interest, or the Limited Partner's withdrawal from the Partnership.
ARTICLE XIX
AMENDMENT
This agreement may be amended or modified by written instrument executed by both the
General Partner and a Required Interest of the Limited Partners.
ARTICLE XX
RELIANCE ON AUTHORITY
Any person dealing with the General Partner as the repres Jntative of the Partnership may rely
on the authority of the General Partner-. Persons dealing with the General Partner have no obligation
to ascertain the General Partner's compliance with the terms of this agreement. Every contract
agreement, deed, mortgage, note; or other document or instrument executed by the General Partner
with respect to any property of the Parnership shall be conclusive evidence in favor of any and every
person relying on the signature of the general Partner that (i) at the time of the execution or delivery
of the document this Agreement was in full force and effect (ii) the instrument or document was duly
executed in accordance with the terns and provisions of this agreement and is binding on the
Partnership and all Partners, and (m) the General Partner was c.uly authorized and empowered to
execute and deliver any and every such instrument or document on behalf of the Partnership.
ARTICLE XXI
MISCELLANEOUS
Applicable Laws
21.01. This partnership agreement, and its application o:- interpretation, shall be _governed
exclusively by its terms and construed in accordance with the substantive federal laws of the United
States and by the laws of the State of Texas, including the Texas conflicts of laws rules.
Cumulative Remedies
21.02. Each parry to this partnership agreement is entitled to all remedies provided by this
agreement or in law or equity. All remedies in this agreement and in law or equity are cumulative, and
the use of one right or remedy by any parry does not preclude or w;uve the right to use any or all other
remedies.
Counterparts
'Agreement of Limited Par=ership Page 21 of
25
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aTp gllm sliEdralunoo;o raqumu ,Cue ur palnoaxa oq !Em luauraajgz drgsraumd sn '£0'IZ
EXECUTED AND DATED as follows:
[e)c�►1�7•�i17�7i ►1�77i
BAKER & CARNES MANAGEMENT, L.L.C.
By: Z,—
Pat Baker, Managing Member
230 Southwest Parkway
College Statt�ion, `Texas 77840
r/rce.� ,
Date signed: Aiaz.ea�er �% , 2005
By: ----
To d Carnes, Managing Member
230 Southwest Parkway
College Station, Texas 77840
Date signed: }+Fe,=em r 7, 2005
LIMITED PARTNERS:
RADR DEVELOPMENT, LTD.
Limited Partner
By: Union Gas Corpora n, its Gene al Partner
By: i`Z
R.K. j/OWRY, .yR., Pr�dAl-
Date signed- _✓ em er �, 20043
'Oez `A` 7
Agreem t of Limited Pzr__ ership Page 23 of
25
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GENERAL PARTNER
Name
BAKER & CARNES
MANAGEMENT, L.L.C.
LIMITED PARTNERS
Name
RADR DEVELOPMENT, LTD.
Limited Partner
BAKER & CARNES
INVESTMENTS, L.L.C.
Limited Partner
Mailing Address
2�0 Southwest Parkway
College Station, Texas 77840
Mailins Address
14511 Falling Creek Suite 200
Houston, Texas 77014
230 Southwest Parkway
College Station, Texas 77840
(A) BAKER & CARNES MANAGEMENT, L.L.C. has made a cash contribution of
S , which purchase, 10 units, at the rate of $ per unit.
(B) RADR DEVELOPMENT', LID. has made a cash contribution of $ all of
which has a value of S and has obligated itself as a guarantor of the Note, which
guaranty has a value of S , all of which purchases 330 units, at the rate of
$ per unit and has obligated itself as a guarantor of the Note.
(C) BAKER & CARNES INVESTMENTS, L.L.C. has made a contribution of the contract to
acquire the Property, and has arranged for financing for acquisitio: i of the Property, and has obligated
itself as a guarantor of the Note, all of which has a value of $ ; which purchases 660 units,
at the rate of $ per unit.
Agreement of Limited Parma^.ersnip Page 25 of
25