Partnership Agreement

This Partnership Agreement ("Agreement") is made and effective this [DATE],

BETWEEN: [YOUR COMPANY NAME] (the "First Partner"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at:

[YOUR COMPLETE ADDRESS]


AND: [SECOND PARTNER NAME] (the "Second Partner"), an individual with his main address located at OR a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at:

[COMPLETE ADDRESS]

RECITALS

A. Partners desire to join together for the pursuit of common business goals.

B. Partners have considered various forms of joint business enterprises for their business activities.

C. Partners desire to enter into a partnership agreement as the most advantageous business form for their mutual purposes.

D. The parties hereto agree to form a limited partnership (the “Partnership”) under [LAW, CODE OR ACT].

In consideration of the mutual promises contained in this agreement, partners agree as follows:


1. NAME AND DOMICILE
The name of the partnership shall be [NAME]. The principal place of business shall be at [ADDRESS], [CITY], [STATE/PROVINCE], unless relocated by consent of the partners.


2. PURPOSES
Subject to the limitations set forth in this Agreement, the purposes of the Partnership are to engage in the business of [DESCRIBE ACTIVITIES]; and to conduct other activities as may be necessary or incidental to or desirable in connection with the foregoing.


3. DURATION OF AGREEMENT
The term of this agreement shall be for [NUMBER] years, commencing on [DATE], and terminating on [DATE], unless sooner terminated by mutual consent of the parties or by operation of the provisions of this agreement.

4. CLASSIFICATION AND PERFORMANCE BY PARTNERS
a. Partners shall be classified as active partners, advisory partners, or estate partners.

b. An active partner may voluntarily become an advisory partner, may be required to become one irrespective of age, and shall automatically become one after attaining the age of [AGE] years, and in each case shall continue as such for [NUMBER] years unless the partner sooner withdraws or dies.

c. If an active partner dies, the partner’s estate will become an estate partner for [NUMBER] years. If an advisory partner dies within [NUMBER] years of having become an advisory partner, the partner will become an estate partner for the balance of the [NUMBER]-year period.

d. Only active partners shall have any vote in any partnership matter.

e. At the time of the taking effect of this partnership agreement, all the partners shall be active partners except [NAME] and [NAME], who shall be advisory partners.

f. An active partner, after attaining the age of [AGE] years, or prior to that age if the [EXECUTIVE COMMITTEE OR AS THE CASE MAY BE] with the approval of [TWO-THIRDS OR AS THE CASE MAY BE] of all the other active partners determines that the reason for the change in status is bad health, may become an advisory partner at the end of any calendar month on giving [NUMBER] calendar months’ prior notice in writing of the partner’s intention to do so. The notice shall be deemed to be sufficient if sent by registered mail addressed to the partnership at its principal office at [ADDRESS], [CITY], [STATE/PROVINCE] not less than [NUMBER] calendar months prior to the date when the change is to become effective.

g. Any active partner may at any age be required to become an advisory partner at any time if the [EXECUTIVE COMMITTEE OR AS THE CASE MAY BE] with the approval of [TWO-THIRDS OR AS THE CASE MAY BE] of the other active partners shall decide that the change is for any reason in the best interests of the partnership, provided notice of the decision shall be given in writing to the partner. The notice shall be signed by the [CHAIRMAN OR AS THE CASE MAY BE] of the [EXECUTIVE COMMITTEE OR AS THE CASE MAY BE] or, in the event of his or her being unable to sign at the time, by another member of the [EXECUTIVE COMMITTEE OR AS THE CASE MAY BE]. The notice shall be served personally on the partner required to change his or her status, or mailed by registered mail to the partner’s last known address. Change of the partner’s status shall become effective as of the date specified in the notice.

h. Every active partner shall automatically and without further act become an advisory partner at the end of the fiscal year in which the partner’s birthday occurs.

i. In the event that an active partner becomes an advisory partner or dies, the partner or the partner’s estate shall be entitled to the following payments at the following times..............

5. CONTRIBUTION
Each partner shall contribute [AMOUNT] on or before [DATE] to be used by the partnership to establish its capital position. Any additional contribution required of partners shall only be determined and established in accordance with Article Nineteen.

6. MANAGEMENT OF THE PARTNERSHIP
The Partnership shall be managed by [SPECIFY]. Subject to the limitations specifically contained in this Agreement, [PARTY MANAGING THE PARTNERSHIP] shall have .......

Total 7 pages for this partnership agreement.
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