Catalogue description Draft Agreement of Partnership

Whereby, having stated that William Pegg (of Holbrooks Lane, Foleshill, Coventry, builder and contractor) has carried on a business but has decided to take his son Frank (of the same address and trade) into the enterprise; therefore a partnership will be formed which will firstly, be deemed to have begun on 1st. Mar., 1934, determinable with six calendar months' notice; secondly, be called "W. Pegg & Son"; thirdly, be conducted as before at Holbrook Lane, Foleshill, Coventry, the firm being tenants to W. Pegg for an undecided quarterly-payable sum, discharging the usual imposts and responsible for repairs; fourthly, patronise the Midland Bank (Foleshill branch); fifthly, have a capital of £200 introduced wholly by W. Pegg, comprising that shown on 353/27/3 plus the business premises subject to mortgage; sixthly, divide profits in the rates of 2:1 in favour of the father, whilst the son's journeyman wages will, with his share, be paid to his parent until the latter shall have received altogether £66/13/4 (representing one-third of the capital) - then Frank will be credited with the sums reserved by this clause, losses being divided proportionately; seventhly, allow the senior partner to withdraw funds at his discretion and the junior to abstract his journeyman's wage, either refunding the excess on overdrawal; eighthly, keep proper account-books; ninthly, countenance no dismissal of employees by a single partner; tenthly, produce a balance sheet every last day of Feb.; eleventhly, enable the surviving partner (in the event of dissolution by death, bankruptcy or clause 1's provision) to purchase his outgoing colleague's share with one calendar month's notice; provided that W. Pegg may resume F. Pegg's share upon the father's giving notice within five years of this deed's date (assuming clause 6's sums to have been repaid); twelfthly, calculate the outgoing partner's share as consisting of (a) the purchase-price (equivalent to that indicated on the last relevant balance sheet), and (b) £6% p.a. interest on the outgoing partner's share, with (c) payment of (b) forthwith but of (a) by four equal biannual instalments, and (d) a covenant to indemnify the outgoing partner (or his personal representatives) from the company's liabilities; and thirteenthly, submit differences to arbitration.