A partnership agreement, as set out in the Civil Code of Quebec, is the legal instrument that establishes the collaboration between two or more persons, such as for the purposes of operating a business by sharing resources and any resulting profits. This template is the agreement to use when a partner withdraws from the partnership.

In accordance with the applicable provisions of the Civil Code of Quebec, this template sets out the conditions and procedures to follow when a partner withdraws, as well as the defining the effect of the withdrawal on the partnership and the other partners.

It is important to note that this document is drafted specifically for the context of a partner withdrawing from a general partnership and not a limited liability partnership.

0.00 INTERPRETATION
0.01 Definitions
0.01.01 Activities
0.01.02 Agreement
0.01.03 Breach
0.01.04 Client
0.01.05 Closing Date
0.01.06 Confidential Information
0.01.07 Contribution
0.01.08 Effective Date of Withdrawal
0.01.09 Employees
0.01.10 Employment Agreement
0.01.11 Encumber or Encumbrance
0.01.12 Equipment
0.01.13 Financial Statements
0.01.14 Financial Year
0.01.15 Force Majeure
0.01.16 Hazardous Materials
0.01.17 Immovable(s)
0.01.18 Intellectual Property
0.01.19 Interim Period
0.01.20 Key Employees
0.01.21 Law
0.01.22 Legal Representatives
0.01.23 Loss
0.01.24 Ordinary Course of Business
0.01.25 Partner(s)
0.01.26 PARTNERSHIP
0.01.27 Partnership Agreement
0.01.28 Partnership Interest
0.01.29 Partnership Interest Purchase Agreement
0.01.30 PARTY
0.01.31 Person
0.01.32 Prime Rate
0.01.33 Product
0.01.34 Services
0.01.35 Supplier
0.02 Entire Agreement
0.03 Applicable Law
0.04 Non-Compliance
0.04.01 Severability
0.04.02 Substitute Provision
0.05 Miscellaneous
0.05.01 Cumulative Rights
0.05.02 No Waiver
0.05.03 Time and Days
a) Time of the Essence
b) Computation of Time
c) Delays
0.05.04 Financial References
0.05.05 Cross-References
0.05.06 Gender and Number
0.05.07 Headings
0.05.08 Knowledge
0.05.09 Accounting Standards
1.00 PURPOSE
1.01 Consent to Withdrawal
1.02 Conditions
1.02.01 Required by REMAINING PARTNERS
1.02.02 Required by WITHDRAWING PARTNER
2.00 CONSIDERATION
3.00 TERMS OF PAYMENT
4.00 SECURITY
5.00 MUTUAL REPRESENTATIONS AND WARRANTIES
5.01 Status
5.02 Authority
5.03 Binding Agreement
5.04 Canadian Resident
5.05 Canadian Status
5.06 Commission
5.07 Nominee
5.08 Independent Legal Advice
5.09 Disclosure
5.10 Legal Proceedings
6.00 REPRESENTATIONS AND WARRANTIES OF REMAINING PARTNERS
6.01 Acknowledgement
7.00 REPRESENTATIONS AND WARRANTIES OF WITHDRAWING PARTNER
7.01 Ownership of Partnership Interest
7.02 Authority
7.03 No Other Interest
7.04 No Adverse Event
7.05 Calculation of Sale Price
7.06 Books and Records
7.07 Compliance
7.07.01 Laws
7.07.02 Knowledge
7.08 Subsidiaries and Affiliates
7.09 Human Resources
7.09.01 Labour Standards
7.09.02 Occupational Health and Safety
7.09.03 Collective Bargaining Agreement
7.09.04 Pension and Other Plans
7.09.05 Strike or Lockout
7.09.06 Pay Equity
7.09.07 Key Employees
7.10 Corporate Finance
7.10.01 Financing Instruments
7.10.02 Leasing Agreements
7.10.03 No Default
7.10.04 No Breach
7.10.05 No Acceleration
7.11 Financial Management
7.11.01 Financial Statements
7.11.02 Financial Position
7.11.03 Guarantee and Security
7.11.04 Accounting Method
7.11.05 Release
7.12 Tax Matters
7.12.01 Income Tax
7.12.02 Filing
7.12.03 Default
7.12.04 Deductions and Remittance
7.13 Occupancy Rights
7.13.01 Valid Title to Immovables
7.13.02 Leases
7.14 Real Estate Transactions
7.15 Procurement
7.15.01 Equipment
a) Ownership
b) Condition
c) Maintenance and Warranties
d) Encumbrance
7.15.02 Supply Agreements
7.15.03 Suppliers
7.16 Raw Materials
7.17 Operations
7.17.01 Clients
7.17.02 Finished Products
7.17.03 Warranties
a) List
b) Claims
7.17.04 Product Recalls
7.17.05 Conduct of Business
7.17.06 Discriminatory Practices
7.17.07 Conduct
7.18 Permits and Licences
7.18.01 List
7.18.02 Compliance
7.18.03 No Restrictions
7.19 Environmental Matters
7.19.01 Environmental Laws
7.19.02 Hazardous Materials
7.19.03 Compliance
7.19.04 Place of Business
7.19.05 Notice of Default
7.20 Intellectual Property
7.20.01 List
7.20.02 Entitlement
7.20.03 Claims
7.20.04 Transaction
7.20.05 Copyright
7.20.06 Authorizations
7.20.07 Trademarks
a) Right to Register
b) No Confusion
7.20.08 Patents
7.20.09 Trade Secrets/Know-how
7.21 ICT Assets
7.21.01 Good Working Order
7.21.02 Software
7.21.03 Domain Names
7.22 Advertising and Promotions
7.22.01 List of Agreements
7.22.02 Compliance
7.23 Marketing
7.23.01 List of Agreements
7.23.02 Trade Practices
7.23.03 Consumer Protection
7.23.04 Electronic Commerce
7.24 Customer Credit
7.24.01 Accounts Receivable
7.24.02 Consignment
7.25 Insurance
7.25.01 List of Policies
7.25.02 Coverage
7.25.03 Good Standing
7.25.04 Claims
7.26 Financial Position
7.26.01 No Changes
7.26.02 Advances from PARTNERSHIP
7.26.03 Accounting Method
8.00 MUTUAL DUTIES AND OBLIGATIONS
8.01 Confidential Information
8.01.01 Undertaking
8.01.02 Duration of Undertaking
8.02 Continuation of Representations and Warranties
8.03 Indemnification
8.03.01 Scope
8.03.02 Procedure
8.03.03 Deductible
8.03.04 Limitation
8.04 Reimbursement of Legal Costs
8.05 Disclosure of Agreement
8.05.01 Undertaking
8.05.02 Public Announcement
8.05.03 Exception
8.05.04 Default
8.06 Further Assurances
8.07 Discharge and Release
9.00 DUTIES AND OBLIGATIONS OF REMAINING PARTNERS
9.01 Partnership Agreement
9.02 Transfer of Partnership Interest
9.03 Payment of Outstanding Amounts
9.04 Filing Requirements
9.05 Financial Statements
10.00 DUTIES AND OBLIGATIONS OF WITHDRAWING PARTNER
10.01 Non-Competition
10.01.01 Scope of Undertaking
10.01.02 Breach of Undertaking
a) Automatic Penalty
b) Payment
c) Protective Measures
10.01.03 Reasonableness of Clause
10.02 Non-Solicitation of Personnel
10.02.01 Scope of Undertaking
10.02.02 Breach of Undertaking
a) Automatic Penalty
b) Payment
c) Protective Measures
10.03 Non-Solicitation of Clients
10.03.01 Scope of Undertaking
10.03.02 Breach of Undertaking
a) Automatic Penalty
b) Payment
c) Protective Measures
10.04 Intellectual Property
10.04.01 Acknowledgement
10.04.02 Use
10.04.03 Property of PARTNERSHIP
10.05 Transition
11.00 SPECIAL PROVISIONS
11.01 Assignment
11.01.01 Prohibition
11.01.02 Reasonable Cause
11.01.03 Effect of Breach
11.01.04 Exception
11.02 Force Majeure
11.02.01 Limitation on Liability
11.02.02 Duty
11.02.03 Right of Other PARTY
11.03 Relationship Between the PARTIES
11.04 Reimbursement of Legal Costs
12.00 GENERAL PROVISIONS
12.01 Notice
12.02 Choice of Forum
12.03 Counterparts
12.04 Amendment
12.05 No Waiver of Rights
12.06 Electronic Transmission
12.07 Language
13.00 TERMINATION
14.00 EFFECTIVE DATE

SCHEDULE A – EXCERPT FROM A RESOLUTION OF PARTNERS OF PARTNERSHIP
SCHEDULE B – EXCERPT OF A RESOLUTION OF PURCHASER
SCHEDULE 0.01.12 – EQUIPMENT
SCHEDULE 0.01.13 – FINANCIAL STATEMENTS
SCHEDULE 0.01.17 – IMMOVABLES
SCHEDULE 0.01.20 – KEY EMPLOYEES
SCHEDULE 0.01.27 – PARTNERSHIP AGREEMENT
SCHEDULE 0.01.29 – PARTNERSHIP INTEREST PURCHASE AGREEMENT
SCHEDULE 7.05 – CALCULATION OF SALE PRICE
SCHEDULE 7.08 – SUBSIDIARIES AND AFFILIATES
SCHEDULE 7.09.04 – PENSION AND OTHER PLANS
SCHEDULE 7.10.01 – FINANCING INSTRUMENTS
SCHEDULE 7.10.02 – LEASING AGREEMENTS
SCHEDULE 7.13.02 – LEASES
SCHEDULE 7.15.02 – SUPPLY AGREEMENTS
SCHEDULE 7.17.03 – WARRANTIES
SCHEDULE 7.18.01 – PERMITS AND LICENCES
SCHEDULE 7.20.01 – INTELLECTUAL PROPERTY
SCHEDULE 7.22.01 – ADVERTISING AGREEMENTS
SCHEDULE 7.23.01 – MARKETING AGREEMENTS
SCHEDULE 7.25.01 – INSURANCE POLICIES
SCHEDULE 7.25.04 – INSURANCE CLAIMS
SCHEDULE 9.03 – PAYMENT OF OUTSTANDING AMOUNTS
SCHEDULE 10.01.01 A – NON-COMPETITION (ACTIVITIES)
SCHEDULE 10.01.01 B – NON-COMPETITION (TERRITORY)
SCHEDULE 10.03.01 A – NON-SOLICITATION (CLIENTS)
SCHEDULE 10.03.01 B – NON-SOLICITATION (PRODUCTS AND SERVICES)

15.00 DURATION
16.00 SCOPE