Fund & Expense Limitations

The undersigned, representing the majority of both general and limited partners of _______________, a limited partnership, hereby agree as follows:

1. The General Partners of _______________ shall maintain a reserve account with a minimum balance of $____ (_______________ & ___/100 dollars). This amount shall be funded from the initial capital contributions and held in a separate, interest-bearing account.

2. Upon commencement of partnership operations, the General Partners shall establish a reserve account, which shall also be maintained in a separate, interest-bearing account. All profits derived from operations shall be deposited into this reserve account until it accumulates to a total of $____ (_______________ & ___/100 dollars).

3. These reserves shall continue to accumulate and may only be accessed by the General Partner(s) under the following circumstances:

________________________________________________________________

4. The use of reserve funds shall be strictly limited to the following purposes:

________________________________________________________________

Dated: ____________________________

_______________________________
General Partner

_______________________________
General Partner (if applicable; all General Partners must sign)

Each Limited Partner shall execute Exhibit One, either as an attached original or as duplicate originals.

Exhibit One: Names & Addresses of Limited Partners and Their Signatures

____________________ ______________________ ___________________
Limited Partner Signature            Printed Name and Address            Social Security Number

____________________ ______________________ ___________________
Limited Partner Signature            Printed Name and Address            Social Security Number

____________________ ______________________ ___________________
Limited Partner Signature            Printed Name and Address            Social Security Number

____________________ ______________________ ___________________
Limited Partner Signature            Printed Name and Address            Social Security Number

____________________ ______________________ ___________________
Limited Partner Signature            Printed Name and Address            Social Security Number

____________________ ______________________ ___________________
Limited Partner Signature            Printed Name and Address            Social Security Number

____________________ ______________________ ___________________
Limited Partner Signature            Printed Name and Address            Social Security Number

____________________ ______________________ ___________________
Limited Partner Signature            Printed Name and Address            Social Security Number

____________________ ______________________ ___________________
Limited Partner Signature            Printed Name and Address            Social Security Number

Note: Include as many additional lines as necessary to list all Limited Partners.

How to Use This Sample Format

This guide is intended to help you understand and properly execute the above agreement. This type of document is commonly created when a partnership seeks to limit the General Partner’s authority over financial reserves and expenditures, particularly in situations where financial accountability is a concern.

It is recommended to make multiple copies of the completed agreement. Distribute one to each involved party and retain one with the official partnership records for reference and enforcement.