Catalogue description Draft Agreement of Partnership

Firstly, for conduct of a plumbing and heating engineers business of 497, Holyhead Rd., Coventry by William Frederick Sharpe (of that address, plumber and heating engine and Ernest Robert Lince (of 82, Birchfield Rd., Coventry, plumber); secondly, to endure for the partners' joint lives (giving six calendar months' notice); thirdly, to be called "Sharpe & Lince"; fourthly, forthwith to open an account at the District Bank, Coventry; fifthly, with capital (consisting of that in Sharpe's business plus £100 provided by Lince to open the account) divided equally; sixthly, to assign profits and losses in the ratio of 3:2 :: Sharpe : Lince; seventhly, to keep proper account-books; eighthly, to allow either partner access to those books; ninthly, to produce on 31st Dec.[,1945] and at the end of every year a balance sheet and profit-and-loss account which will be binding as to details after three months; tenthly, allowing Sharpe to take £6 and Lince £4 per week from the banking account (repaying overdrawn amounts); eleventhly, with discharge of private debts by each partner; twelfthly, with neither partner (unless permitted by the other) (a) engaging in other business, (b) hiring or dismissing employees, (c) lending on credit the firm's moneys to any individual whom the other partner shall have forbidden him (by writing) to trust, (d) pledging credit outside the course of business, (e) entering into any bond which would endanger the property, (f) mortgaging his share of the concern, (g) accepting any bill of demand or promissory note, or (h) entering into any contract for purchase of goods worth more than £50; thirteenthly, ordering either partner who breaks clause 12's provisions to indemnify the other; fourteenthly, with option for the surviving partner to purchase the outgoing one's share so that (a) the purchase-price shall be equivalent to the share's value as indicated in the last relevant balance-sheet, (b) interest on (a) will be calculated at £5% p.a. in lieu of interest on capital and of profits (repaying the sums withdrawn under clause 6 but not those from clause 10), (c) (b) will be paid forthwith, but (a) in four equal half-yearly instalments plus £6% p.a. interest, (d) the surviving partner shall covenant to indemnify the other or his personal representatives, and (e) a floating charge on assets other than personal chattels will secure (a), (b) and (d); fifteenthly, winding up the business if the surviving partner shall not exercise his option or if the arrangement expires during their joint lives (though either may bid at auction for the firm's assets); and sixteenthly, with reference of disputes to an arbitrator, if necessary chosen by the Chairman of Coventry Chamber of Commerce.