DEED OF PARTNERSHIP BETWEEN A LADY AND HER THREE SONS

This Deed of Partnership made on this 1st day of…………by and between Smt. ...................... w/o...................... aged about ................................. years R/o............................................. (hereinafter called the First Party), Shri ................., S/o..................... aged about ......................... years R/o................. (hereinafter called the Second Party): Sh. ............................., S/o.................... aged about ............................ years, R/o......................... (hereinafter called the Third Party) and Sh. ...................., S/o.................... aged about 25 years, R/o............................ (hereinafter called the Fourth Party.

WHEREAS all the above mentioned Parties have already been carrying on business under the name and style of M/s........................ at ............................... w.e.f. the........................... under a Deed of partnership made by and between them on the ...................................

AND WHEREAS the parties deem it expedient to provide for payment of interest, salary, commission, bonus etc., payable to partners as mutually agreed upon by and between them.

Now, therefore, this deed witnesseth as follows:

1. That the partnership business shall he carried on as heretofore under the name and style of M/s. .............................. at premises, addition to or in substitution of the earlier mentioned one as may be decided among the partners from time to time.

2. That the new terms and conditions and the provision for payment of salary, bonus, interest and commission or any other matter provided herein shall he effective with effect from the ................................ day of ….., 20….

3. That the accounting period of the partnership shall be financial year i.e. from the ...........................................................

4. That the business of the partnership firm shall be to deal in all kinds of electrical goods, appliances, electric fittings or any other line or lines of business as the parties may agree upon from time to time.

5. That the profits and losses of the partnership business shall be divided amongst the partners as follows:

1. First Party: 25%

2. Second Party: ............................

3. Third Party: ..............................

4. Fourth Party: ........................................

6. That the Second, Third and Fourth Parties who are already working partners devoted to the business of the firm shall continue to be working partners and each of them shall he paid salary @ ......................................

7. That all the aforesaid working partners shall be further entitled to a commission at the end of each year, which after including the total amount of salary payable to the aforesaid partners during the year, shall be equal to the sum computed according to the method of computation as laid down in Sub Clause (v) of Clause (b) of Section 40 of the Income Tax Act and as reproduced below:

METHOD OF COMPUTATION OF SHARE

(i) On the Ist ........................................of the of the Book Profit, : of the book profit whichever or in case of, : is more;

(ii) On the next ........................................... : at the rate of .............................................

(iii) on the balance of : at the rate of ..............................................book profit

(i) Provided that the amount of commission so arrived at shall be paid to all the working partners in equal proportion.

(ii) Provided in case the amount payable according to the Deed of Partnership as salaries to the partners equal or exceeds the amount as calculated in the manner laid down above, no commission shall be payable implying thereby that the commission shall be payable only if the amount payable as salary or commission falls short of the amount calculated in the manner aforesaid and the said amount shall be limited to the amount of the shortfall.

(iii) Provided that if there is any amendment in the above given method of computation as laid down in Sub-clause (v) of Clause (b) of Section 40 of the Income Tax Act, the same shall also stand substituted accordingly in the Deed of Partnership with effect from the date of such amendment, unless and until otherwise decided by the parties hereto.

8. That the First Party who is a sleeping partner shall be paid interest @ .......................... on the amount standing to her credit in her capital account.

9. That all expenses relating to the payment of interest, salary, commission, etc., paid or credited to the partners shall be debited to profit and loss account and taken into consideration in arriving at the net divisible profit or loss amongst the partners.

11. That the Bank Account or accounts of the partnership business shall continue to be operated by all the partners jointly or severally or by one or more of them as may be mutually agreed upon amongst them from time to time.

12. That all the partners excepting Party No. 1 shall devote themselves to the partnership business and shall be working partners.

13. That in case any partner is desirous of retiring from the partnership business he or she shall be required to give at least two month's notice in writing of its intention to do so unless otherwise mutually agreed upon by all the partners.

14. That in the event of the death of the First Party, the amount standing to the credit of her capital and current account shall vest equally amongst her three sons.

15. That in the event of death of Smt. A, the First Party to this Deed the partnership shall not be dissolved and shall be deemed to continue with the change that the share of each of the remaining partners in the profit and losses of the partnership firm shall be enhanced equally or in other words, each of the partners shall share 1/3rd in the profit or losses of the partnership business.

16. That any dispute or differences which may arise amongst the partners or their representatives with regard to the construction, meaning and effect of this Deed, or any part of or respecting the accounts, profits and losses in the business or rights and liabilities of partners under this deed or on the dissolution or winding up of the business or any other matter relating to the partnership business shall be referred to arbitration and all the provisions of the Indian Arbitration Act shall apply.

In witnesses whereof the parties named above do hereby set their hands on the ..................... day of ……..20… in the presence of the witnesses.

WITNESSES:

1……………

2………………