Fill and Sign the General Agreement Real Estatefree Legal Forms

- 1 - GENERAL PARTNERSHIP AGREEMENT THIS AGREEMENT OF GENERAL PARTNERSHIP entered into on _______________, 20____ by and among __________________ (hereinafter collectively referred to as "Partners", and individually as "Partner").1. Name and purpose. The Partnership shall be carried on under the name of ______________ PARTNERSHIP, a ____________________ General Partnership. The Partnership has been formed for the purpose of owning, developing, operating, leasing and otherwise dealing with real and personal property of any kind or description. The Partnership may engage in any and all other activities as may be necessary, incidental or convenient to carry out the business of the Partnership as contemplated by this Agreement. 2. Place of business. The principal office of the Partnership shall be located at ________________________, ________________________ ________________________ ________________________ or such other place as shall be agreed upon by a majority in interest of the Partners from time to time. 3. Partners. The name and address of each of the Partners are as follows: Name Address 4. Term. The Partnership shall commence on ________________________, 20____, and shall continue until terminated as provided in this Agreement. 5. Capital contributions. Each of the Partners has contributed to the capital of the Partnership, in cash, the amount set opposite his name: - 2 - Partner Contribution An individual capital account shall be established and maintained for each Partner, who shall receive an interest in the Partnership and shall be credited with the amounts of his capital contributions to the Partnership from time to time. A Partner shall not be ent itled to interest on his capital contribution, or to withdraw any part of his capital account, or to receive any distribution from the Partnership, except as specifically provided herein. 6. Net Profits, net losses and cash flow (a)Profits and losses. Subject to such adjustments as may be required pursuant to paragraph 7 below, the net profits and the net losses shall be shared by the Part ners as follows: Partner Percentage The terms "Net profits" and "net losses" shall mean the net profits a nd losses of the Partnership as determined for federal income tax purposes by the certified public accountant servicing the Partnership account. (b)Cash flow. The "cash flow of the Partnership shall be the net profits and losses of the Partnership as defined in paragraph 6(a) above, plus (i) depreciation and other non-cash charges deducted in determining such net profits and losses, (ii) the net proceeds from any refinancing of the Partnership's mortgages, and (iii) the net proceeds from the sale of any of the Partnership's assets, minus (i) principal - 3 - payments on all mortgages, (ii) any other cash expenditures which have not been deducted in determining the net profits and losses of the Partnership, and (iii) any amount reasonably required to maintain sufficient working capital and a reasonable reserve for replacements. The cash flow of the Partnership shall be determined separately for each fiscal year and not cumulatively and, as so determined, shall be distributed in the same proportion as profits and losses are shared in accordance with paragraph 7. The cash flow shall be distributed at the discretion of the Managing Partner, but at least annually. (c) Income accounts. A separate income account shall be maintained for each Partner. Partnership profits and losses shall be charged or credited to the separate inc ome account of each Partner. If a Partner has no credit balance in his income ac count, losses shall be charged to his capital account. 7. Additional funds and adjustments. (a)Call for funds. The Partners recognize that the income produced by the Partnership's properties may be insufficient to pay the operating costs of the properties. If in the judgment of the Managing Partner and shall be contributed by the Partners in proportion to their capital interests in the Partnership. However, the amount of funds subject to call and contribution in any calendar year shall not exceed $12,000.00 in the aggregate, unless any excess is approved by a majority of the Partners. As us ed above, the term "operating costs" shall include, without limitation: principa l and interest payments on partnership loans, whether or not secured by mortgages on Partnership properties; costs of repair, maintenance, and improvements; insurance premiums; and real estate taxes, assessments, other governmental charges, and - 4 - professional fees for accountants, legal counsel and engineers. (b) Contributions for non-defaulting partners. If any Partner is unable or unwilling to make any or all of his proportionate contribution, then the remaining Partners who are able and willing to do so may make a contribution in excess of their proportionate share, in such amounts as they may agree among themselves. If they are unable to agree, each Partner who is able and willing to make a contribut ion shall have the primary right to contribute that portion of such excess which the proportion of such Partner's capital interest in the Partnership bears to the aggregate capital interests of all such Partners, and a secondary right to contribute any remaining portion of such excess which is not desired to be contributed by any other Partner in the exercise of his primary right. If there is more than one Partner desiring to exercise secondary rights, they shall be entitled to contribute the remaining port ion of such excess in the same proportion as stated above with regard to their prima ry rights. (c) Contributions by non-defaulting partners. Any Partner who makes a contribution to the Partnership pursuant to paragraph 7(b) above shall have the option to (1) treat the contribution as additional capital of the Partnership, or (2) treat the contribution a s a loan to the defaulting Partner, which election shall be made, in writing, at the time the contribution is made. (1) If the contributing partner elects to treat his contribution as additional ca pital, such funds shall be allocated to his capital account. After such contributions are made, each Partner's percentage interest in the profits, losses and c ash flow of the Partnership shall be adjusted and determined by dividing the - 5 - aggregate cash contribution of all the Partners to the Partnership since the inception of the Partnership, into the aggregate cash contributions of each Partner. The resulting quotient with respect to each Partner shall supersede the percentage interest of such Partner as set forth in paragraphs 6(a) and 6(b) above. (2) If the contributing Partner elects to treat his contribution as a loan to the defaulting Partner, then no adjustment shall be made to the contributing Partner's capital account, and his share in the profits, losses, and cash flow of the Partnership shall remain the same. However, the capital account of t he defaulting partner shall be increased by the amount of the loan, and a defaulting Partner's share in the profits, losses, and cash flow of the Partnership shall be adjusted as if he had made a contribution to the capita l of the Partnership in the amount of the loan. The amount advanced by the Partner on behalf of the defaulting Partner shall be a debt of the defaulting Partner to the contributing Partner and shall bear interest at a rate of Depos it Guaranty National Bank prime rate plus two percent (2%) per annum. Thereafter, all distributions of cash from the Partnership due to the defaulting Partner shall be paid to the Partner (or pro rata to the Partners) who have elected to treat the contributions as loans, until such time as the princ ipal and interest of the loan(s) are paid in full. 8. Managing partner. (a) The day-to-day affairs of the Partnership shall be handled by the Managing Partner, ________________________. - 6 - (b) Partners owning a majority in interest of the capital of the Partnership may remove the acting Managing Partner at any time and appoint a successor Managing Partner. (c) The Managing Partner shall provide such services to the operation of the Partne rship business as he shall deem proper and necessary, including keeping all Partners informed of all material which shall come to his attention concerning the bus iness of the Partnership. (d) The Managing Partner shall keep or cause to be kept full records of each transa ction of the Partnership and shall maintain such records at the principal office of the Partnership or at the principal office of the Partnership's accounting firm. Said records shall be open for inspection and examination by all Partners, or their duly authorized representative, at all reasonable times. The Managing Partner sha ll furnish, or cause to be furnished, to each Partner statements of financial condition of the Partnership within 60 days after the end of each fiscal year of the Partners hip. The fiscal year of the Partnership shall end on December 31. (e) The Managing Partner shall cause the funds of the Partnership to be deposited in such bank accounts as he shall designate and withdrawals shall be made upon such signatures as the Partners shall authorize. (f) The Managing Partner shall not be liable to the Partnership or to any Partner for any mistake or error in judgment or for any act or omission believed in good faith to be within the scope of authority conferred by this Agreement. The Managing Partner shall be liable only for acts and/or omissions involving intentional wrongdoing. (g) As compensation for his services, the Managing Partner shall receive $ 0.00 pe r month and shall be reimbursed by the Partnership for out-of-pocket expenses - 7 - incurred on behalf of the Partnership for out-of-pocket expenses incurred on behalf of the Partnership, including expenses for travel, lodging and meals. 9. Voting. Each Partner shall vote in proportion to his capital interest in the Partne rship from time to time. Each Partner may exercise his vote by written or oral notifi cation to the Managing Partner. 10. Consent to operations. The procedure for the operation of the Partnership shall be as follows: (a) The day-to-day affairs of the Partnership shall be handled by the Managing Partner, as hereinabove stated. (b) The following actions shall require the vote and unanimous approval of all the Partners: (1) The purchasing or developing of properties; (2) The amendment of this Partnership Agreement; and (3) The admission of new partners to the Partnership. (c) All other actions taken by the Partnership, excluding those mentioned in subparagraphs (a) and (b) above, shall require the vote and approval of Partners owning a majority in interest of the capital of the Partnership. 11. New partners. Except as provided in paragraph 13, new partners may be admitted into the Partnership, after the required vote, only if they agree to execute and acknowledge suc h instruments as are necessary or desirable to effect such admission and to c onfirm their agreement to be bound by all the covenants, terms and conditions of this Agreement, as the same may have been amended. Each new partner shall receive a capital i nterest and share in the profits, losses, and cash flow of the Partnership in an amount to be determine d by all - 8 - other Partners at the time of admission. 12. Amendments. Amendments to this Agreement shall become effective only if in writing, signed by all the Partners. 13. Transfer of partnership interest. (a)Permitted transfers during life. During the life of a Partner, he may transfer all or any part of his Partnership interest by gift, sale or other transfer, either in trust or outright, to or for the benefit of his spouse and/or any of his descendants, including any stepchildren and any descendant whose relationship to the partner is created by birth or adoption. Thereafter, the transferee shall become a Partner with all t he interests, rights, duties and obligations previously held by the transferor. Unless expressly consented to in writing by the non-transferring Partners, no transfer of a Partnership interest shall in any way alter or diminish the transferor's obligation with respect to any then unpaid additional payments required to be made pursuant t o paragraph 7 above. (b) Prohibited transfers during life. During the life a Partner, he shall not pledge, cause a lien to be placed against or encumber his Partnership interest in any way. Except as otherwise provided in paragraph 13(a) above, a partner shall not sell or in any other way transfer his Partnership interest during his lifetime without first offe ring such interest for sale to the Partnership by a writing addressed and delivered t o the principal office of the Partnership. The notice shall set forth the proposed sale price and terms of sale. Thereupon, the Partnership shall have a period of 15 days to notify the selling Partner of its intention to purchase the interest offered for sa le pursuant to the terms of that offer. If the Partnership timely elects to purchase the - 9 - selling Partner's interest (which election shall be made on behalf of the Partnership by a majority in interest of Partners other than the selling Partner), then wit hin 45 days after receipt by the Partnership of such offer to sell, the Partnership shal l purchase said interest at the price and upon the terms at which said inte rest is offered for sale. If the interest is not purchased by the Partnership within said 45 day pe riod, then during the six-month period thereafter the offering Partner may sell his Partnership interest so offered for sale to any person whomsoever; provided, however, that said interest shall not be sold at a lower price or on more favora ble terms than the price and terms set forth in the notice sent by the Partner in accordance with this paragraph 13(b) without first reoffering said interest for purchase by the Partnership in accordance with this paragraph 13(b). If the offering Partner does not sell his Partnership interest within the six-month period, he s hall thereafter not sell or in any other way transfer such interest without first reoffe ring such interest for sale to the Partnership, in the manner set forth in this para graph 13(b). Unless expressly consented to in writing by the non-transferring Partners, no transfer of a Partnership interest shall in any way alter or diminish the transferor's obligations with respect to any the unpaid additional payments required to be made pursuant to paragraph 7 above. (c) At death of partner. After the death of a Partner, the decedent's estate, by its fiduciary (and the beneficiary and/or beneficiaries of the Partnership interest from the estate), shall sell the interest of the deceased Partner to the Partnership and the Partnership shall purchase said interest on the terms set forth herein. The purc hase - 10 - price shall be Sixty Thousand Dollars ($60,000.00) The purchase price may be increased or decreased from time to time by the Partners by written amendment to this agreement. (d) Life insurance. To assure that the purchase price of a deceased Partner's interest wil l be available in cash upon his death, the Partnership shall purchase term insura nce on the lives of the Partners with each policy providing a death benefit of Sixty Thousand Dollars ($60,000.00) for partners owing 1/6 and Thirty Thousand Dollars ($30,000.00) for partners owing 1/12. The Partnership may, from time to time, procure additional policies on the Part ners' lives to effectuate this agreement. It may also release policies from the agreement; increase, decrease or make other changes in existing policies; or substitute other life insurance policies on the same life or lives for any policies subject to t his agreement. The Partners hereby agree to do all things necessary to enable the Partnership to obtain additional insurance on their lives or make changes in existing policies. The Partnership shall apply for and be the owner and one-sum primary beneficiary of all life insurance policies subject to this agreement and shall pay t he premiums on all such policies as they fall due. The Partnership may apply policy dividends to the payment of premiums. Proof of premium payments shall be furnished by the Partnership whenever a Partner requests such proof. If the Partnership fails to pay a premium within 10 days after it falls due, the insured shall have the right t o pay such premium and to be reimbursed therefor by the Partnership. So long as this agreement remains in effect it is expressly agreed that the Partnership shall exercise none of the rights or privileges granted to it as owner by the te rms of - 11 - the policies (such as the right to borrow upon, surrender for cash, change the beneficiary, or assign a policy) except with the written consent of all the Partners. (e) Procedure upon death. The Procedure upon the death of a Partner shall be as follows: (i) The Partnership as beneficiary, shall promptly file claims to collect in cash the one-sum death proceeds of all the policies on the deceased Partner's li fe which are subject to this agreement. (ii) Upon the collection of such proceeds and the qualification of a personal representative for the deceased Partner, the Partnership shall pay over to the personal representative an amount equal to the full proceeds collected, in part or in full payment for the deceased Partner's interest in the Partnership. (iii) The personal representative of the deceased Partner shall promptly execut e (and shall cause any other party or parties whose signatures may be necessary to transfer a complete title to the deceased Partner's inte rest to execute) and, concurrently with receipt of the full purchase price for the deceased Partner's interest shall deliver all instruments necessary t o effectuate the transfer of the deceased Partner's interest to the Partners hip, as of the date of the deceased Partner's death. Transfer of such interest shall be made free and clear of all taxes, debts, claims, or other encumbrances whatsoever. (iv) Concurrently with the transfer to the Partnership of the deceased Partner's interest, the surviving Partners shall execute and deliver to the personal representative of the deceased Partner, an instrument or instruments by - 12 - which the surviving Partners assure all the debts and obligations of the Partnership and indemnify the deceased Partner's estate against all Partnership liabilities and any and all claims by the surviving Partners or by Partnership creditors. (f) Right to purchase. Each Partner shall have the right to purchase from the Partnership any policy or policies on his life which are subject to this agree ment (A) upon withdrawing from the Partnership during his lifetime as provided above; or (B) upon the termination of this agreement during his lifetime. This right of purchase shall be exercised as to each policy by paying to the Partnership, in cash, an amount equal to the cash surrender value as defined in the policy, if any, adjusted to the date of transfer of ownership of the policy to the purchaser. The right of purchase shall lapse if it is not exercised within 30 days after occurrence of the event givi ng rise to the right of purchase. 14. Termination of the partnership. The Partnership shall be terminated and dissolved upon the vote of a majority in interest of the Partners. Upon the termination of the Part nership as herein provided, a full and general accounting shall be taken of the Partnership busines s and the affairs of the Partnership shall be wound up. Any profits or losses incurred since the previous accounting shall be divided among the partners and shall be added to the distributions to be made to the Partners. The Managing Partner shall wind up and liquidate the Partnership by selling the Partnership assets and, after the payment of t he Partnership liabilities, expenses and fees incurred in connection with such liquidation, dis tributing the net proceeds therefrom, in cash to the Partners in proportion to their capital inte rests in the Partnership. - 13 - Except as otherwise expressly provided in this Partnership Agreement, dissolution of the Partnership shall be in accordance with the laws of the State of ____________________, as now constituted or hereafter amended or substituted. Unless otherwise required by la w or by court order and subject to the provisions of Section 14 of this Partnership Agreement, the Partnership business shall not terminate upon the occurrence of any event causing dissolution of the Partnership. Any successor by the operation of law to a surviving Partner's interest, including, by way of example and not by way of limitation, a gua rdian, a receiver, or a trustee in bankruptcy, shall be deemed as assignee having the ri ghts which an assignee of such Partner's interest would have under the provisions of the ____________________ Code. 15. Notices. All notices, consents and other instruments hereunder shall be in writing and mailed by certified mail, return receipt requested, postage prepaid, and shall be directed to the parties hereto at the addresses of the parties furnished by them in writi ng to the Managing Partner. Notices to the personal representative of a deceased Partne r's estate shall be mailed in the same manner to the last known address of such representative. 16. Binding effect. This Agreement shall inure to the benefit of an be binding upon the parties hereto and their respective next-of-kin, legatees, administrators, executors, legal representatives, successors and permitted assigns. - 1 - In witness whereof the parties hereto have executed six copies of this Agreement on the day and year first above written. ______________________________ ______________________________________________________________________________________________________________________________________________________ - 2 - STATE OF _______________ COUNTY OF ______________PERSONALLY came and appeared before me, the undersigned in and for the jurisdict ion aforesaid, the within named ________________________ in the above and foregoing instrument of writing, who acknowledged to me that he signed and delivered the above foregoing instrume nt of writing on the day and in the year and for the purposes therein mentioned. GIVEN under my hand and official seal of office on this the ____ day of _________, 20__. _____________________________ NOTARY PUBLIC MY COMMISSION EXPIRES:______________________ STATE OF _______________ COUNTY OF ______________ PERSONALLY came and appeared before me, the undersigned in and for the jurisdict ion aforesaid, the within named ________________________ in the above and foregoing instrument of writing, who acknowledged to me that he signed and delivered the above foregoing instrume nt of writing on the day and in the year and for the purposes therein mentioned. GIVEN under my hand and official seal of office on this the ____ day of _________, 20__. _____________________________ NOTARY PUBLIC MY COMMISSION EXPIRES:______________________ - 3 - STATE OF _______________ COUNTY OF ______________PERSONALLY came and appeared before me, the undersigned in and for the jurisdict ion aforesaid, the within named ________________________ in the above and foregoing instrument of writing, who acknowledged to me that he signed and delivered the above foregoing instrume nt of writing on the day and in the year and for the purposes therein mentioned. GIVEN under my hand and official seal of office on this the ____ day of _________, 20__. _____________________________ NOTARY PUBLIC MY COMMISSION EXPIRES:______________________ STATE OF _______________ COUNTY OF ______________ PERSONALLY came and appeared before me, the undersigned in and for the jurisdict ion aforesaid, the within named ________________________ in the above and foregoing instrument of writing, who acknowledged to me that he signed and delivered the above foregoing instrume nt of writing on the day and in the year and for the purposes therein mentioned. GIVEN under my hand and official seal of office on this the ____ day of _________, 20__. _____________________________ NOTARY PUBLIC MY COMMISSION EXPIRES:______________________ - 4 - STATE OF _______________ COUNTY OF ______________PERSONALLY came and appeared before me, the undersigned in and for the jurisdict ion aforesaid, the within named ________________________ in the above and foregoing instrument of writing, who acknowledged to me that he signed and delivered the above foregoing instrume nt of writing on the day and in the year and for the purposes therein mentioned. GIVEN under my hand and official seal of office on this the ____ day of _________, 20__. _____________________________ NOTARY PUBLIC MY COMMISSION EXPIRES:______________________ STATE OF _______________ COUNTY OF ______________ PERSONALLY came and appeared before me, the undersigned in and for the jurisdict ion aforesaid, the within named ________________________ in the above and foregoing instrument of writing, who acknowledged to me that he signed and delivered the above foregoing instrume nt of writing on the day and in the year and for the purposes therein mentioned. GIVEN under my hand and official seal of office on this the ____ day of _________, 20__. _____________________________ NOTARY PUBLIC MY COMMISSION EXPIRES:______________________ - 5 - STATE OF _______________ COUNTY OF ______________PERSONALLY came and appeared before me, the undersigned in and for the jurisdict ion aforesaid, the within named ________________________ in the above and foregoing instrument of writing, who acknowledged to me that he signed and delivered the above foregoing instrume nt of writing on the day and in the year and for the purposes therein mentioned. GIVEN under my hand and official seal of office on this the ____ day of _________, 20__. _____________________________ NOTARY PUBLIC MY COMMISSION EXPIRES:______________________