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Agreement to Form Limited Partnership - DOC
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					                        Agreement to Form Limited Partnership

        Agreement made on this (date), between (Name of Prospective General
Partner), of (street address, city, state, zip code), hereinafter referred to as PGP, and
(Name of Limited Partner Alpha), of (street address, city, state, zip code), hereinafter
sometimes referred to as LPA, (name of Limited Partner Beta), of (street address, city,
state, zip code), hereinafter sometimes referred to as LPB, and Name of Limited Partner
Zeta, of (street address, city, state, zip code), hereinafter referred to as LPZ.

       Whereas, PGP desires to commence a business of (description of business);
       and

       Whereas, PGP requires financial backing for his proposed business enterprise;
and

         Whereas, LPA, LPB and LPZ all desire to invest in the business enterprise, and
to limit their liabilities in the business to the amount of their investment;

        Now, therefore, for and in consideration of the matters described above, and of
the mutual benefits and obligations set forth in this Agreement, the parties agree as
follows:

1.     Formation.
       Prospective partners shall create a Limited Partnership on or before (date),
pursuant to the provisions of (citation of statute), and they shall execute a Certificate of
Limited Partnership in the form attached as Exhibit A. They shall also perform all acts
necessary to perform as a Limited Partnership.

2.     Purpose and Duration. The purposes and duration of the Partnership shall be
as provided in the attached Exhibit B.

3.     Contribution. Prospective Limited Partners shall each pay to PGP
$___________ in cash, in exchange for each having a _____% interest in the Limited
Partnership. These contributions shall not be payable until after the business has been
in operation for a period of (number) months.

4.       Share of Business. Prospective Limited Partners shall each receive a present
____% interest in the business from the commencement of operation and continuously
until the Limited Partnership shall be dissolved in accordance with this Agreement.
Prospective Limited Partners shall each be entitled to ______% of the net profits of the
business. The term net profits means the gross profits from the business less (i) ordinary
and necessary business expenses paid in the conduct of the business; and (ii) a
reasonable salary not to exceed $ _____________ per year for the personal services
contributed by PGP. Business expenses that are to be deducted under (i), above, from
the gross income, are the same as constitute allowable business expense deductions
under federal income tax laws.

5.      Profits and Losses. Profits referred to in the Section 4 shall be computed at the
end of each calendar year, and the shares to which Prospective Limited Partners shall
be entitled shall be paid to Prospective Limited Partners within (number) days after the
end of the calendar year.
6.      Additional Limited Partners. PGP shall have the right to take in (Number) of
additional Prospective Limited Partners and to allow each additional Prospective Limited
Partner to purchase a _______% interest in the Limited Partnership for
$_____________.

7.     Incorporation of Business. PGP shall have the right to incorporate the
business, if, in his opinion, it is deemed advisable. If the business should be
incorporated, then each Prospective Limited Partner shall receive a percentage of the
corporate stock equal to that Partner's percentage interest in the net profits of the
Partnership at the time it is incorporated.

8.     Liability of Limited Partners. Prospective Limited Partners shall not be liable on
any contracts made by PGP in the operation of the business, and shall not be liable for
damages for which PGP shall become legally liable as arising out of the operation of the
business. Prospective Limited Partners shall only be liable for losses suffered by the
Limited Partnership in an amount equal to their contribution to the Partnership. All losses
sustained in excess of that amount shall be the separate liability of PGP.

9.      Death of Limited Partner. The death of a Limited Partner during the term of the
Partnership shall not operate to terminate this Agreement. In the event of the death of a
Limited Partner during the term of this Agreement, General Partner shall have an option
to purchase the interest of the deceased Limited Partner for ______% of the value of the
Partnership business. The value of the Partnership business shall include (i) book value
of the Partnership assets; (ii) accrued and undistributed profits; (iii) goodwill; and (iv) the
market value of the Partnership business as a going business. The value of goodwill
shall be determined as follows: (description of method). The above option given to
General Partner may only be exercised for a
				
DOCUMENT INFO
Description: A limited partnership is a modified partnership. It is half corporation and half partnership. This kind of partnership is a creature of State statutes. Many States have either adopted the Uniform Limited Partnership Act (ULPA) or the Revised Uniform Limited Partnership Act (RULPA). In a limited partnership, certain members contribute capital, but do not have liability for the debts of the partnership beyond the amount of their investment. These members are known as limited partners. The partners who manage the business and who are personally liable for the debts of the business are the general partners. A limited partnership can have one or more general partners and one or more limited partners. Under the ULPA, a limited partnership has to be created by executing a certificate which sets forth the name and business address of each partner, states which partners are general partners and which are limited partners, and states certain details about the partnership and the relative rights of the partners. This, of course, is not true in a general partnership. A general partnership is governed by a partnership agreement which is private and which may be oral or written. The Revised Uniform Limited Partnership Act is somewhat less restrictive as to what needs to be disclosed in this certificate. For example, the names of the limited partners are not required. The general partners manage the business of the partnership and are personally liable for its debts. Limited partners have the right to share in the profits of the business and, if the partner�ship is dissolved, will be entitled to a percentage of the assets of the partnership. A limited partner may lose his limited liability status if he participates in the control of the business.
PARTNER William Glover
I received my B.B.A. from the University of Mississippi in 1973 and my J.D. from the University of Mississippi School of Law in 1976. I joined the firm of Wells Marble & Hurst in May 1976 as an Associate and became a Partner in 1979. While at Wells, I supervised all major real estate commercial loan transactions as well as major employment law cases. My practice also involved estate administration and general commercial law. I joined the faculty of Belhaven College, in Jackson, MS, in 1996 as Assistant Professor of Business Administration and College Attorney. While at Belhaven I taught Business Law and Business Ethics in the BBA and MBA programs; Judicial Process and Constitutional Law History for Political Science Department); and Sports Law for the Department of Sports Administration. I am now on the staff of US Legal Forms, Inc., and drafts forms, legal digests, and legal summaries. I am a LTC and was Staff Judge Advocate for the Mississippi State Guard from 2004-2008. I now serve as the Commanding Officer of the 220th MP BN at Camp McCain near Grenada, MS. I served on active duty during Hurricanes Dennis (July, 2005), Katrina (August, 2005) and Gustav in 2008. I played football at the University of Mississippi in 1969-1971 under Coach John Vaught. I am the author of the Sports Law Book (For Coaches and Administrators) and the Sports Law Handbook for Coaches and Administrators (with Legal Forms),