General Partnership Agreement (Page 2 of 6) in pdf

General Partnership Agreement Page 2

4. Interest on Capital Contributions

No interest shall be paid on any capital contributions to the partnership, including initial

capital contributions made upon execution of this agreement, and subsequent capital

contributions made after execution of this agreement.

5. Profit and Loss Allocations

The net profits of the partnership shall be apportioned equally between the partners and

the net losses shall be borne equally by them, with each partner receiving fifty percent

(50%) of the net profits of the partnership, and fifty percent (50%) of the net losses. 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 his income account, losses shall be charged to his capital

account.

6. Salary and Income Withdrawal Rights

Neither partner shall receive any salary for services rendered to the partnership. Each

partner may, however, withdraw all or any portion of the credit balance in his or her

income account.

7. Managerial Duties and Restrictions on Partner Powers

The partners shall have equal rights in the management of the partnership business, and

each partner shall devote his entire time and efforts to the successful prosecution of

partnership business. Without the consent of the other partner neither partner shall on

behalf of the partnership borrow or lend money, or make, deliver, or accept any

commercial paper, or execute any mortgage, security agreement, bond, or lease, or

purchase or contract to purchase, or sell or contract to sell any property for or of the

partnership other than the type of property bought and sold in the ordinary course of the

partnership business.

8. Banking Transactions

All funds of the partnership shall be deposited in its name in such checking account or

accounts as shall be designated by the partners. All withdrawals are to be made upon

checks signed by either partner.

General Partnership Agreement Page 2