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SamplePartnershipDeed/Agreement

ThisPartnershipAgreementismadeon[InsertDate]between[InsertNameofParty1]and[InsertNameofParty2].

NameandBusiness
The parties hereby form a partnership under the name of [Insert Business Name] to produce [Insert Business Product/Service].Theprincipalofficeofthebusinessshallbe[InsertAddress]. Term Thepartnershipshallbeginon[InsertDate],andshallcontinueuntilterminated. Capital Thecapitalofthepartnershipshallbecontributedincashbythepartnersasfollows: Aseparatecapitalaccountshallbemaintainedforeachpartner. Neitherpartnershallwithdrawanypartoftheircapitalaccount. Upon the demand of either partner, the capital accounts of the partners shall be maintained at all timesintheproportionsinwhichthepartnersshareintheprofitsandlossesofthepartnership. ProfitandLoss The net profits of the partnership shall be divided equally between the partners and the net losses shall be borne equally by them. A separate income account shall be maintained for each partner. Partnership profits and losses shall be charged or credited to the separate income account of each partner. If a partner has no credit balance in their income account, losses shall be charged to their capitalaccount. SalariesandWithdrawals Neither partner shall receive any salary for services rendered to the partnership. Each partner may, fromtimetotime,withdrawthecreditbalanceintheirincomeaccount. Interest No interest shall be paid on the initial contributions to the capital of the partnership or on any subsequentcontributionsofcapital.

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This sample template has been downloaded from www.dineshbakshi.com. Only to be used for educational purpose.

ManagementDutiesandRestrictions Thepartnersshallhaveequalrightsinthemanagementofthepartnershipbusiness,andeachpartner shall devotetheirentiretimetotheconductofthebusiness.Withouttheconsentoftheotherpartner neitherpartnershallonbehalfofthepartnershipborroworlendmoney,ormake,deliver,oraccept anycommercialpaper,orexecuteanymortgage,securityagreement,bond, or lease,or purchaseor contracttopurchase,orsellorcontracttosellanypropertyfororofthepartnershipotherthanthe typeofpropertyboughtandsoldintheregularcourseofitsbusiness. Banking Allfundsofthepartnershipshallbedepositedinitsnameinsuchcheckingaccountoraccountsasshall bedesignatedbythepartners.Allwithdrawalstherefromaretobemadeuponcheckssignedbyeither partner. Books Thepartnershipbooksshallbemaintainedattheprincipalofficeofthepartnership,andeachpartner shallatalltimeshaveaccessthereto.Thebooksshallbekeptonafiscalyearbasis,andshallbeclosed andbalancedattheendofeachfiscalyear.Anauditshallbemadeasoftheclosingdate. VoluntaryTermination The partnership may be dissolved at any time by agreement of the partners, in which event the partnersshallproceedwithreasonablepromptnesstoliquidatethebusinessofthepartnership. The partnership name shall be sold with the other assets of the business. The assets of the partnership businessshallbeusedanddistributedinthefollowingorder: (a) topayorprovideforthepaymentofallpartnershipliabilitiesandliquidatingexpensesandobligations; (b) toequalizetheincomeaccounts ofthepartners; (c) todischargethebalanceoftheincomeaccountsofthepartners; (d) toequalizethecapitalaccountsofthepartners;and (e) todischargethebalanceofthecapitalaccountsofthepartners.

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This sample template has been downloaded from www.dineshbakshi.com. Only to be used for educational purpose.

Death Upon the death of either partner, the surviving partner shall have the right either to purchase the interestofthedecedentinthepartnershiportoterminateandliquidatethepartnershipbusiness.If thesurvivingpartnerelectstopurchasethedecedent'sinterest,heshallservenoticeinwritingofsuch election,withinthreemonthsafterthedeathofthedecedent,upontheexecutororadministratorof thedecedent,or,ifatthetimeofsuchelectionnolegalrepresentativehasbeenappointed,uponany oneoftheknownlegalheirsof thedecedentatthelastknownaddressofsuchheir. (a) Ifthesurvivingpartnerelectstopurchasetheinterestofthedecedentinthepartnership,thepurchase priceshallbeequaltothedecedent'scapitalaccountasatthedateoftheirdeathplusthedecedent's incomeaccountasattheendofthepriorfiscalyear,increasedbytheirshareofpartnershipprofitsor decreasedbytheirshareofpartnershiplossesfortheperiod fromthebeginningofthefiscalyearin which their death occurred until the end of the calendar month in which their death occurred, and decreasedbywithdrawalschargedtotheirincomeaccountduringsuchperiod.Noallowanceshallbe madeforgoodwill,tradename,patents,orotherintangibleassets,exceptasthoseassetshavebeen reflected onthe partnershipbooksimmediately priortothedecedent'sdeath;butthesurvivorshall neverthelessbeentitledtousethetradenameofthepartnership. (b) Exceptashereinotherwisestated,theprocedureastoliquidationanddistributionoftheassetsofthe partnership business shall be the same as stated in paragraph 10 with reference to voluntary termination. Arbitration Any controversy or claim arising out of or relating to this Agreement, or the breach hereof, shall be settled by arbitration in accordance with the rules, then obtaining, of the American Arbitration Association,andjudgmentupontheawardrenderedmaybeenteredinanycourthavingjurisdiction thereof.InwitnesswhereofthepartieshavesignedthisAgreement. Executedthis ______________dayof_________________,[InsertYear]in[InsertCity,State].

________________________ SignatureofParty1

________________________ SignatureofParty2

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This sample template has been downloaded from www.dineshbakshi.com. Only to be used for educational purpose.