Docstoc

Partnership Agreement Template - DOC

Document Sample
Partnership Agreement Template - DOC Powered By Docstoc
					THIS PARTNERSHIP AGREEMENT is entered into on ____ day of _____ , 2010, by and
among the following:

       a.    Partner 1
       b.    Partner 2
       c.    Partner 3

hereinafter collectively called the „Partners‟ and individually called „Partner‟

SECTION 1: NATURE AND PURPOSE OF AGREEMENT

The purpose of this document is to set forth the terms and conditions covering the governance
and management of the partnership and all the partners agree to be bound by these terms and
conditions.

WHEREAS, the partners wish to set forth, in a written agreement, the terms and conditions by
which they will associate themselves in the Partnership.

NOW THEREFORE, intending to be legally bound, the partners agree to be legally bound as
follows;

SECTION 2: PARTNERSHIP

2.1 Partnership name: The name of the partnership shall be “(Name of partnership)”

2.2 Place of business: (business address). Until changed by agreement of the Partners. The
partnership may own property and transact business in any and all other places as may from
time to time be agreed upon by the Partners.

2.3 Purpose of the partnership: The purpose of the Partnership shall be to (statement defining
the objective/purpose of partnership). The Partnership may also engage in any and every other
kind or type of business, whether or not pertaining to the foregoing, upon which the Partners
may at any time or from time to time agree.

2.4 Termination of partnership: The Partnership shall commence as of the date of this
Agreement and shall continue until terminated as provided herein.

2.5 Future Projects: The Partners recognize that future projects for this Partnership depend
upon many factors beyond present control, but the Partners wish to set forth in writing and to
mutually acknowledge their joint understanding, intentions, and expectations that the
relationship among the Partners will continue to flourish in future projects on similar terms and
conditions as set forth in this Agreement.
2.6 Restrictions on Transfer: None of the Partners shall sell, assign, transfer, mortgage,
encumber, or otherwise dispose of the whole or part of that Partner's interest in the Partnership,
and no purchaser or other transferee shall have any rights in the Partnership as an assignee or
otherwise with respect to all or any part of that Partnership interest attempted to be sold,
assigned, transferred, mortgaged, encumbered, or otherwise disposed of, unless and to the
extent that the remaining Partner(s) have given consent to such sale, assignment, transfer,
mortgage, or encumbrance.




SECTION 3: PARTNERS CAPITAL ACCOUNTS

3.1 The Partners initial investment:

               PARTNER                                              CONTRIBUTION

       Partner 1                                             _______________
       Partner 2                                             _______________
       Partner 3                                             _______________


Partner 1‟s initial investment of USD ____________ representing furniture & fixtures,
computers, laptops, UPS and other office equipment will constitute a charge on the income of
the partnership and be repaid to him as soon as the partnership starts generating positive cash
flows or as mutually agreed by all the partners.

Partner 3 commits USD ____________ if needed in advance for any project under this
agreemetn which shall constitute first charge on the incomes and be returned as soon as cash
is collected.

Unless agreed by all partners and as expressly stated in this agreement, no partner shall have
the right to withdraw any amount from his capital account. Partners are not entitled to interest on
their capital accounts.

3.2 Profits and Losses: Until modified by mutual consent or as expressly agreed by the
Partners, the profits and losses of the Partnership and all items of income, gain, loss, deduction,
or credit shall be shared by the Partners equally.

THE PARTNERS AGREE THAT INCOME, PROFITS AND LOSSES OF THE PARTNERSHIP
SHALL BE KEPT DISTINCT AND SEPARATE FROM OTHER BUSINESS ACTIVITIES OF
THE PARTNERS.

SECTION 4: BOOKS AND RECORDS
4.1 Books and records: The Partnership books and records shall be maintained at the
registered office of the Partnership and each Partner shall have access to the books and
records at all reasonable times.




SECTION 5: TIME AND SALARY

5.1 Partner 2 will be compensated for his sweat equity by a salary of USD ________ per month
which should be reviewed every year for adjustments . Until the partnership turns cash positive
his salary payments will be accrued only. But when positive cash flows are generated all
accumulated dues will be paid to him. Once the partnership starts generating positive cash
flows, his pay will be part of operational expenses.

5.2 Partner 1 / Partner 3 will also be compensated for sweat equity propotonate to the time and
efforts invested based on the same rate as used for Partner 1 and such payments will be
charged as operational expenses.

5.3 other partners joining in on a full time basis will be compensated as agreed mutually by all
partners.


SECTION 6: DISSOLUTION AND WINDING UP
This Partnership may be dissolved only by a unanimous agreement of the Partners. Upon
dissolution, the Partners shall proceed with reasonable promptness to liquidate the Partnership
business and assets and wind-up its business by selling all of the Partnership assets, paying all
Partnership liabilities, and by distributing the balance, if any, to the Partners in accordance with
their capital accounts, as computed after reflecting all losses or gains from such liquidation in
accordance with each Partner's share of the net profits and losses.

If for purposes of confidentiality, title to Partnership property is taken in the name of a nominee
or of any individual Partner, the assets shall be considered to be owned by the Partnership and
all beneficial interests shall accrue to the Partners in the percentages set forth in this
Agreement.

6.1 Death, Incompetency, Withdrawal or Bankruptcy: Death, incompetency, withdrawal, or
bankruptcy of any of the Partners shall dissolve this Partnership.

6.2 Payments on dissolution: On dissolution of the partnership the Partner or legal
representative shall be entitled to receive the amount of the Partner's capital account made as
of the date of the dissolution adjusted for the following:
       (i) Any additional capital contributions made by the Partner and any distributions to or
       withdrawals made by the Partner;

       (ii) The Partner's share of profits and losses of the Partnership from the end of the
       preceding fiscal year of the Partnership to the day on which the retirement or withdrawal
       occurs, determined in accordance with generally accepted accounting principles,
       consistently applied; and

       (iii) The difference between the Partner's share of the book value of all of the
       Partnership assets and the fair market value of the partners share, as determined by a
       fair market value appraisal of all assets. Unless all the partners agree on fire market
       value of the assets.

6.3 Time of Payments: Subject to a different agreement among the Partners or successors
thereto, the amount specified above shall be paid in cash, in full, but without interest, no later
than two (2) months following the date of the retirement or withdrawal or dissolution.




IN WITNESS WHEREOF, the Partners have executed this Agreement the date first above
written.


________________________________
Partner 1

________________________________
Partner 2


________________________________
Partner 3

				
DOCUMENT INFO
Description: Partnership Agreement Template in MS word.