A limited partnership agreement is a legal document that outlines the relationship between general and limited partners in a business venture. This type of agreement specifies the roles, responsibilities, and profit-sharing arrangements of each partner. It is essential for ensuring that all parties are on the same page and understand their rights and obligations. Below are three diverse examples of limited partnership agreements that can serve as templates for various business contexts.
This agreement is designed for a real estate investment venture where one partner manages the property while the other provides capital.
In this scenario, Partner A is a general partner who manages the day-to-day operations and property management. Partner B is a limited partner who invests capital but does not participate in management decisions. The agreement specifies that Partner A will receive 70% of the profits for their management efforts, while Partner B will receive 30% for their financial investment. The agreement also outlines procedures for capital contributions, profit distributions, and the process for adding new partners.
This example is tailored for a technology startup where the general partner drives product development and the limited partner provides funding.
In this case, Partner X is the general partner responsible for the company’s operations, including product development and marketing. Partner Y is a limited partner who contributes funds but does not engage in day-to-day management. The agreement states that all profits will be split 50/50, but outlines that Partner X is entitled to a management fee of 10% of gross revenues before profit distribution. Additionally, the agreement includes terms for the exit strategy, should either partner wish to leave the partnership.
This agreement is for a joint venture between two companies looking to launch a new product line in manufacturing.
In this scenario, Company A acts as the general partner, handling production and logistics, while Company B serves as a limited partner, providing resources and capital. The agreement specifies that Company A will receive 60% of the profits due to their operational role, while Company B will receive 40%. The document also addresses liability issues, stating that Company A will bear the primary responsibility for operational risks. Furthermore, it includes clauses for conflict resolution and the terms governing the dissolution of the partnership.
These examples of limited partnership agreements illustrate how different structures can be tailored to various business scenarios, ensuring clarity and protection for all parties involved.