PARTNERSHIP AGREEMENT

1. Basic
a. What is the name of the partnership?
- The name of the business depends on what partners came up and agreed to.
b. What is the purpose of the partnership?
- The purpose of the partnership is to combine their resources and manage the
business.
c. What is the duration of the partnership?
- The duration of partnership can last long until the business can and can resolve all
the problems of the business to achieve their goals, and until they can work
together.

2. Responsibilities performance & remuneration

a. What is each partner’s role?
- To join the management and pooled skill & knowledge
b. What are each partner’s responsibilities within the company, and what level of
performance is expected?
- Each partner’s responsibility is to operate the form and to assume the liability for
the debts of the business
c. Are partners expected to make a fulltime commitment to the venture, or are business
activities permitted?
- Yes, individuals should commit themselves fulltime to make their business
profitable and lasted for a long time.
d. What will be the income of each partner and how will profits or losses be distributed?
- The profits are based on the income of the product and will divided among
partners based on their agreed sharing.

3. Contributions
a. What will each partner be contributing to the partnership in terms of cash, assets,
loans, invested, and/or labor.
- Individual should contribute of what they agreed to
b. If a partner loans the company money, what will be the terms or repayment?
- If an individual loans the company money, the terms of repayment are based on
their agreement. And on how much money he/she invested in the business
company.
c. Will the partners be expected to make additional contributions to the partnership, and
if so, how will that be handled?
- Yes, it depends on what they agreed to do so.

4. Withdrawal of partners/admission of new partners

a. What guidelines should be followed if one partner wants to leave the partnership?
- The partner who wants to leave the partnership should sign a complete agreement
to allow him/her to leave the partnership.
b. Will partners be allowed to sell their interest in the business to outsiders?
- No, if someone sell their interest in the business to outsiders, their business will
deficit. Each of them can lose the business and also the partnership.
c. On what grounds can a partner be expelled from partnership (misconduct, non-
performance of duties)?
- Non-performance of duties. Because of lack of performance in the business,
he/she can’t do well in the business that can cause of losing the business. That’s
why the partner can be expelled.
d. How will new partners be admitted to the partnership?
- The new partners should have to complete the agreement of the partnership. And
that partner should have an accurate resource/s to fulfill the duties in the business.
5. Buy-out procedures
a. What guidelines should be followed if one partner wants to retire or leave?
- Partners who wants to leave or retire have to sign a complete agreement.
b. What happens if a partner is incapacitated orders?
- If the partner is incapacitated in the business, he/she can be expelled in the
business also in the partnership.
c. Will the partnership take out man life insurance to insure the surviving partner is able
to buy the deceased partner’s shares from his/her heir?
- The partner/s who dies unexpectedly or incapacitated, and doesn’t left any last
will testament, the heirs shall not give to anyone but to those closest relative that
willing to take over the partnership.
d. Will partners who leave have to sign a non-complete agreement?
- No. Partners who leave have to sign a complete agreement to know that he/she
leave the business in good terms.

6. Dispute resolution
a. What methods will be used to settle dispute that can’t be otherwise resolved?
- The methods that will be used are mediation or binding arbitration. To organize
the rules of the business partnership.
b. What procedures should be used in the event of a tie vote between partners on crucial
partnership decisions?
- In a crucial partnership decision, after many attempts and the votes are still draw,
the toss coin shall be made.
c. Will you see mediation or binding arbitration?
- The partnership shall use mediation to resolve the conflicts of the business. The
partners shall intervene with the conflicts to promote reconciliation, settlement
and compromise.
d. If dispute can’t resolve, is there a mechanism in place for dissolving the partnership?
- Yes, if the partnership can’t resolve the dispute, there’s a big way for them to
dissolve their partnership. One of the disadvantages of partnership is the
disagreement of partners and complexity in termination.

7. Financial arrangements
a. What banking arrangement will be made?
- The banking arrangements depends on the partnership.
b. Which partners will have check signing privileges?
- The one that assign to check the signing privileges, but it should be double check
by others in case of quackery.
c. Who will be authorized to draw on the account?
- Each partners should be authorized to draw the account
d. How will the books be kept?
- The books will keep by each other.

8. Method for dissolving the partnership

a. When can the partnership be dissolved?
- When the partners decided that they can’t work together, get into trouble,
bankrupt,
b. What happens to the partnership if the partners decide they can’t work together?
- The partnership will be broken as well as the business.

9. Valuation
a. What methods will be used to determine the value of business in the event of sale,
dissolution, death, disability or withdrawal of a partner?
- In case of sale of the entire business partnership, all assets should be sold depends
to the price of the product. And also to the business.