## 265

**OFFICE OF**  **THE ATTORNEYGENERAL**  **OF T** **’ RXAS** 
**AUSTIN**

**-CL-**

**--**

.DlBpartMult **upon** dot **of the**  **parti**

## 266

q8ur UnsnplopolsntCompsnration Coaml88ion, **9868** L

Ths special partner agrees to diligently devote hi8 profasrional tiae and &Ill to such 18gaL aaft8r8, of th8 general partner **and aeaooiated**  **ap8olal partaem,**  **a8 say**  **x-8-** oelro his attention and to pay 0181 to 

### the joint bookkeeping 0f the Esnrral partner and serroolatsdrpcrolalpartn8rs all fees aad ohargea raosived and oollea%od by hin in oonnsotlon themwlth.

*5. It lamutually **agreed** that Sp8oial Patinar **shall be**  entitled to rcloalva,a8 hi8 rharcoi and intsrset in, tho rpeoial partnrmh$p ham a i 

### andhereby 

### oreatod,the 

### followlagamunta, whioh shell 4onetltut8 paiymentto him, in full, for his entlm intamst la the ourmnt oamlngr and busln84s or tha bpsolal **partnemhlp** 

### horolntornsdt

@rexipar cant **or** tho **net** oarh 

### prorit$ l rsb$ aa moaluad by Ganaral **Partimr and** all aarwiat84 rpeolal 

### partaersongogmd fn 

### the $a~tal,)raatioe or **law** 

### under theNmn m&maof *xand

### I#~( auuh not **prorite to**  be d4t8rninod, at the 8~4 or 8aOh oalendar pear 

### duringth8 tom of thi8 spproi'al portnerahlp agmement by **rubtnotiag from**  the **~088** lag81 ree8, aalarfar 

### andmtelnarr 

### l 8tually oollrot84 durlas aacrhoalendar par oi 

### thlrrpeohl 

### partner8hi9 agmaont, the

# aggmgato umunt of eperalbingwn8@8$ whioh, amcmg other it8m8, ahaIl inoludo 8alarioi **paid** ta rt6nograph8r4, baokkoapa*'+'~~911s olork,,tolrphona 

### oparator janitor, aad other **~bfmflar** 

### w&ployebs, rent, Zlgbt ab hoat **If the88**  **thaw** 

### Itemsam 

### paid 8tatioIl4l-y

(md'Oif'iO4**8U99lb8, UBrarUBb&**  **d89hOB.** and trlsgraph 8xpan88 **and** ohorg88, **8tw98,** tue4, **bad** dsbt4, 1~Iso4llansou88Xp8B4O8 an8 dcmatlolu,
or the 88~1 general oharaoter whish Oen8ral partner ha8 heretofom inoludsd in Iniwallansw%a eXpwxae and 

### donationaownmta, andall mwnts reoeirrd ,byother assoaiatd Spsoial FSIPrtner4r



### “Indetermlnin$th@net48min(j8 0r Gensral %rtn*r 

### andassoolated partner8, inwhlah Sproial Pkrtnsr hemin naked shall 8ham, to the extent h8r8itnbeiOrr mt **wti,** them shall bo rX4lud4d from th4 ,&roar annual sxpenso or General Partnsrj 

### ths 008t 

### ofat1 books, ocnstitutlng apart of the pexmanant law librsty or 04neraL Partnar; 4180, all EuiBitU4,



### Yi’ ,?’ 93X.4 UncuaplOymentG4qawtion ~0Z&841On, page s

ffxtures, typewrlters ~9, ganeral OfiiOS equlpment, all otwhloh are 

### now,and

### willaontinue to **be**

### the8014 property of (kneral 

### P8rtmr~ and bpaeial Partner 8hall not hev. any rlght, tltl. or interest ther.ln, n.r in

### andto the oapftal **suppl.id** by General iartnez with whidb 

### tooperate the busine,es of 

### raid **law** firm.

"0. **iti** Is **iiatudly** e4gSe.d@anera Partner rhill be the exolu4ive **judge of**  the gener.1 ~OliOi.8 0r **said ertn4mhlp**  rim orX and Y, end 

### that hlU.1 eUtTl4r Sh11 h.VO SXOlU4it. Oh#@g., oontrol and au9ervlrl.n of o~‘f'loe detall8, orrlos management, bookkeeplng and aooounblag, rib ing, puroha8e 0r 

### orfloe**stationery** an& 8u991i48, the hiring and dlsoharge, and.the flXi.ngof 8.hlpi.8, hour8 .!ldX-WJUhtiOBS gOv.raiX&gSt6E.- graphem, **bookkeeper,** 

### rile olerk, telsphons ap4rator, janitor, 

### andother rimilar Wp&OAy4.8# 

### and,with r8894Ot to .ll swh 

### a&tore tiner&l Partner shall not be rxpeOt4d 

### or required to OooI #tit with, 

### or SeOWe 

### theoonsentOrS~eOi&l

### &?tmar,whohereby ratlfl68, 

### epprcneeandoonfima a11 that General Partner ary do In 4uolta&tore.
“9. The speolal partnership heroin Cora4d 8h8ll be .ut.&itl.ally di88.lT.d by tb. death of 

### l itbe% X 0~ yI h0 Or th4 &3BOa PUtBti8j OF by tb d#.th Of Sproial pUtBe%, with drcurr th&S .~.S.Bt is mado) or 

### itmaybe t4XtnlMtd 

### atthe e1m3tlgn

.,.or elthu Gmual 9am1.r or Y9eU.l %rtaer, by the on4 40 .Ieeting to texwlaate &rln& 

### thirty days' pmvlous notioe to 

### theothera and, at the end of said thirty day period, Chlr Sp6olal 

### PartnuShip Agraagmt shall in all re8peots be tefmimted, and Sp4oial 

### partner 8hall b4 entitled to hi8 @ham, a4 herelnbetom 86t 

### out, 

## 0r th4 

### net 44mIng4 

### or Gclneml PaHaer andall associated Ypeoial Partner8 up to the date OS the trrmfaotlc~ ot this &%Wtnership agxeeaent, but no longer. At i4 furthrr 5utully 0grs.d that @O 

### oos8lder+tlon will be f$v4a
or allowanoe mde to ~ppsaial**Partam,** upon the termination of t&k@ fQ5eoi.l hrtaership 

### &FeftM.nt on **acaouat or**  any unaolleoted leml r4*8, 8.l1wle8 and rstallZar8, or to eherg.4 or ..rningS, on My

## 268

unl'inluhedleg,61b~sii~ssa wkioithare JPF tbrn **been** Irotuedlycolloatsd$ it being ths inte::tioa of General Partner and %,.peolal Partner to lialt and reetriot, and Way 

### a0hereby agree 

### to limit and **rcatrlot** bpeolal =artner*a share anb inter#ot, at the tiaraOS the t6minetlon of'thin **:;peaial rart**  nerehlp @rerzwmO, ta t&a aotual oath feo8, #alarha and retainers oollsated u:,to the t&e of auohdl8- solution, but not themaTter, except in the lollowitg loutar:ost~:peoial&mttll~~e~pemontago, henlabefore sotout and ds$ined, shall be ap~llcab1.eto 

### thatportfonoianylags1 I'm of .#,OOO.OO, or sor8, oolleotec?dthin 0%~mnths ~froa81 thQ date thla Bpmlal rartnerehip **A4$reuatt~%** tsrninatea on legal buriaemn 

### ontad thirty days prior thereto, whlsh 

### theperiod,rroat&stlinr thr: buslnaer QWMJ late the o:f'ioeup to the time oi tba terahatloa Of Ohir Agmemsent, 

### bearr.to the total peri& of tiauadoring whioh aaid burlorss was haf&eit~ for instrno8, 1s 

### theparticulu 

### plaoeofhurlntwemme into the ofCi6a air mtxatir

### prior to the temlnnBlon of thir &&me@&, an& 'IIYS ~noiuded sir aionthsthereafter, thsln one-hall of the fet oolSacte4 thererrom, uadar 

### t&r!ounditictu **namd, rcd.d**  **bs appliccrble**  **to** k.tncrr'61 pbXO"iltag~, the other OAO-halS Ut3t. 

### Ypecrlal

**3pooial. iicartnerm** 

A considorstion of this **eutd**Oha 

### cmnimaatcxreuiiedwith 

### 3Ulealorw3IX

slightUlifterenaa

inthetwo **cloatxaotr~ 00mm**  Quenhlp,we will dlepcrs of the oontract with ii,the isubstam3e 81whiah id ,hcretoZorraclt6uts

## 269

Texae Unemployment Compensation OommIssion, page 5

::ze have In 'Texasa general partncrehlp, andwhat we term a limited or special partnership organized under the provisions ofArticles 6110 to 6132 of the Vernon's Revised civil statutes of 1925.

The material transmitted to uswith your letter of **request** does

### not dlsolose that the etatuteo **of Texas**  have been oomplisd uIth in respeot to the formatlon of a limited partnership.

Artlole 8119, Revised Civil Statutea, reads as follower

*No suah partnership shall **bo** deemed **to** have been formed until a certltioate shall have been made, aaknowledged, filed and reoordad, nor until an affidavit shall have been tiled as above direotedi and If any **false statement**  **be** made In such oertlrioate or affldavlt, all the persons Interested in euah partnership nhall be liable for all the engagomento thereof am general partners.w

If such a certificate has **been made** **and** reoorded, **we do**  **not have**  **that** Information. Prom the **term** of the oontraot, it appears to be one that does not meet the provls~ons that
are deemed neoeeeary by the

### hgislature In enacting the etrrtutepertaining to suoh partnamhip. The legislature **haas** thou&t Itnecessary tomake theme regulremente for tbo protsotion of the publio In dealing with limftad partnershipa. Apparently, theae oontraotlng partners have **sought to**  **enter** Into an agreement for themutual **benefit** of eaoh, butwith rtrlet llmltatlons upon the interest of the eo-oalled epooIa1 **paPtier without**  **giving** the **publio** notice or tbeee limitations. We do not purport to say thst attorneys may not enter Into a epedial partnerehip; however we do find that Texas Jurlr

### prudenoe, Volume 32, page 58& In the notes lndlaates **a doubt**  that suoha relationship may be e:-sated.

Article 622lb, 17 (g) (1)read* as follewa:
u'~~mplOymsnt'su'o,jeot to the other provisions of this subsection, axemaaservioe),Including benIce In interstate comm~roe, performad forwagee or under any oontraat of hire, written 

### or oral, exe press or implied, provldid that any servloss performed **by** an Individual forwages ehall be deemedT*xms UaaQlOmeht Compansation Comz~Iss~on,page 6

to **be** employmnt subject to this kct unless and until It is shown to the satisfaction of the Commission that suah individual 

### hlasbeen anAwill oontlnue to be free rroreoontrol or direction 0181~ the perf'ormahoaOZ such services both under his ocmtract of ssrvLo8 and in fact.*

Artlole 522lb-18(o) tsads aa followsf
v(o) 'b&gas* smans all remuneration payable for personal ssrvloes, Inoluding conmissions and bonuses and the oaoh value of all remuneration payable In any OaedIuLl other than oaah. CratuItIer ouetomarlly received by an Individual In the oouEa8 of his employmnt frocnpersons other than his empl~ylng unit shall be treated aawages payable by hia esaploylngunit. The reasonable cash value ol rammrntion payable by his employing unit. The reasonable oash value of resmneration payable In any medium other than cash, and the veasonabl8 amount of gratuItlas, shall be estimated and defermined In aooordanoe with rule8 prasoribed by tha c0m8tIsaion.*

PTsare not asksAt d8t8IW&A8 if the **law** rim I6 oitilly liable **for the**  **mats of**  **A** and B, **but if**  **Um%ir**the Iaots they
are in eff@lOymSntunder our d6finitiOn Of th8 term.

lt is not neoessary that all partnsre contribute oapltal but they my eontribute servioes. kwever, persona may oontribute to an 

### entsrprlse, but if they own no Interest In the bueiness they are not partners. ~ohleeihger vs. Kemerly, 41 d. ii.(Ed) 1002. 

### In SETef. **Jurls.,** 

### Seobloniso, page 845, we **find** the statement that a OoiKmuhItyof ownershIp and in profits or **earnings** asWell aa In a burineea
nama isneoessary to a partnership. Citing English ~8. .tiills, 899 ~j. ‘VU, 348.

In this instanoe the general partnera ham **agreed to**  furnish the capital, but they **bV8** not given A any owner8hip In the oapital contributed or any power ot oontrol.

In 313 Tex. Juris., pago 847, there %8 the stat85ent that no partnerahlp is arested if the a$reasmnt is really to sumre a superior for ooospenaatlonandwithout any genernl sham In interest or control, though oornpmusatlonis dependentTexas Unemployment Conp8nsatIon ComIs6lon, page 9

Citing iueny48xaa oaeee.. cn the makin. of prolits and ocnsists In a share of them.

The oase of Buzard vs. Bank of Qreenvllle, 2 ;. L. 54,
an opinion of the supreme Court by Judge Gaines is on8 of our first oases on the subjeot. It held that an arrangement whereby a formerly salaried agent who sorked for a 8heJe of the expeoted prorit8 aa oompenaatioa for his s8NiC8s and who would not be oompsnaated If there should be loeees was not a partnsrshlp **but an**  **agenoy.**

In tirray OlnnLng System Company vs. Exohangr ~atlonal Bank, 61 S.W. !SOg,the

### zcanager of a

### gin contracted to take oharge of a gin with a salary for all year, but a eharo in the 

### aarnlngrduring the aea80n - all aquipswnt was furnished by the original owner; this wa8 'heldan agenoy. patentl.y,**the** general partner8 hat8 given **A**none of the oontrol of th8 firm's bueineos+ **At** the termination of the contraot )ihas no owMrehip,or interest in the fees reoelvable even though the buslnses wae eoqulred 

### andwork done aiter the timciOf hI8 contraat eroopt In the f88s or over $S,OOO.OO oolleotsd if, as, and when provided by the 

### oontraob.

we tail to find the existenoe of the neoessary 

### 6baentn of apartnsrahlp between X and r law **Plrrr** and **A.** lb nebnm to be serving for a psroentage of oartaln prorlta tiithno control **or** ownership of the oapltal or of the business of the **firm.**

The oontraot between the gQnOm1 

### partnsm Xaaa 

### Y,
a law ~IP%Idoing busIn8se as x and y and.8 the ao-oall8A "apeoial partneF I8 as followe1

This SPEoihL PART??ERBRXP

### AORl5ZbSNT, antemU into **between X** and y, e partner8hIp firm, engaged In the 

### general practice of **law,** in Port Worth, Texas, hereinafter, for OonVenIenCe, referred t0 as Wen8ral Partner* 

## ana 8, an attorney at law ot Fort morth, 'Texas,her8Inaf%8P referred to, for uonveniencle,a8 %peoial Partner,* Is to 'sXT N 1(:

S S E T Et e-------w.-- 

## 272

Texas Unemployment Compensation Conmi*rlon, 

### page 8

'1. Ganeral 2artner agrees to furnish, for the **use** of Gsnsral Partner and assoolatsd Speoial ~artmsrs, praotloing law under the tlrm name of X &I, at hart gorth, Teras, suoh neoee8ary operating oapltal, law library, furniture, fix**tures,** typewritera, adding maohlnss, and general oflloe equipment, as, in the opinion of Ganaral Partner, baaed upon past sxperlanss, Is reasonably nsoessarp,to 

### oaxry011 andoperatoa buslnesa in theCity or

### B’ort **Worth,** pzg~l law



### “2. Spaolal Partner agrees to diligently devote his professional time fan&&ill to suoh legal matters, OS General partner and arrooiated speolal *artasrs, aamay reoslve his attention, and to pay over to the joint bookksepsr oi General **Part**
ner and associated Speolal rartnsra, all fses and ohargee rsoeived and oalleoted **by him**  **in ooh**  nsstlon therewith.

"3. It ismutually agreed that Bpsolal **Parttier** shall be.entltl.edto reoeivs, **am**his shars of, and interest in, ths speoial partnership hsrefn **and** hereby **oreatsd,** 

### the folilouing **amounta,** whioh shall **oonstltute payment**  **to him,**  **in full,**  for his entlra lntsrsot in tha ourrent 

### earnings **and** buuiness of the special partnership henin formsd. ***(a)** -5- per aen? of the net sash profits **earnod** and **reaelved** by %mral Partnsr **and** all aasoolatsd special partneri engaged in ths gensral prastloe
or law under the rlrm uaas of "x an&Tat suoh nst 

### profitstobs dstenulned, at the enb of saoh oalsndar year during ths toma ot this speolal partnership agreement by **subtraating** from ths gross legal r488, salarias and retainers actually oollerotedduring each calendar year of this spssial partnership agrssmsnt, the aggrsgata amount of operating expenssa; which, among other ltsms, ohall lnoluds salaries paid to atanographsrs, 

### bookkseper, tile olerk, telephone opsrator, janitor, and other slmllar smployees, rent, ll$ht and heat, if these

### TexasbemploymentCompensation Commission,page 

### 9

three itaae are paid, stationery au6 office 

### ~upplics,uurefuudsd telephone and telegraph expense and charges, stamps, taxes, bad debts, ~iseellaneous expenses 

### anddonations,of the same Fenera oharaoter whloh General Partner has heretofore inoludad innie44llaneous expense **and** donation acoounts together with the
sum of Cne hundred TrPenty-fiveDollar6 (~lSS,OO) per month, being the estimated 

### andagreed **depra** olatton sustained by Oensral **Partner on**  law library, fuFnitur4, fixtur4s, and offioe equipment belonging exolusively to General 2artner.

"In datermlning the net earnings of

### GoneralPartner and essooiated partnerD, inwhlah 6peoial. Partner herein named shall rhare, to 

### theextent hereinbefore set **out,** there shall be excluded from the groea annual expense of Qe.nsraf, **Partner,** the oost of all books, aonstltutlng a put of the permanent law library of @enera Partner; also, all **rurniturr,** fixtures, typeuriterr **aa** gameral. offloe **equipment,** all 

### ofwhlah are now, andwill oontlnue to be the sole property 

### of@enera Partner; and Special Partner shall not have any rlghh, title OF 

### intexwst therein, nor in and to the capital supplied by

### General2artner with which to operat4 the buainaes of maid law 

### fira

v(b) General 

### Partnerguarantee8 to Special Partner that his share, as hera+nbefore set out, of 

### thenetprofitsQf%ieraJ.YaFtn4F 

### andassociated Speolal Partnbrs, during eaoh twelve months* 

### periodthat thle oontraat 

### of4peoiPl partnership ahall oontinue, shall not be less than $a,OOO.QO and, General 

### Part&u agrcresto advanae to Speolal Partner this guarsnteod miniauraslssuntof Qfi,O00&0 in twelve 

### (12)equal ~sums,payable monthly. At the end of eaoh calendar year, if jpeolal Partner*s share in the net profits, as hsF4inbafore defined, of the joint venture, shall bs more than $5,000~00 (the

### minimumannual guaranteed **amount)** 

### Cansral~**Part** ner agrees topay the amount of the exoe8s to speolal Partneri but if tha share of Yp4ois.l

### Partner shall be leas than th4 minimum **annual** (guaranteed amount of @5,000.09 thsn it 1s uutually agreed that said

### mlnlmaaannualguaranteedamount 

### shall@on**etitute** paym4nt in full 

### forthe interest and 6har4



# 4TeSa8 Cneaploymnt Conpenestion Corr&44ion, pag4 10

of 2pecial tartnm during suah oolendur year in ;ueatlon.

"4. It is aontazplated that GHUSFA~ partner **Will,** fFOJ?I

ti.seto tim, enter into additional opeoial partnership agF4ensnts with other attorneys, now and hereafter associated with General 2artncr 

### inthe general 

### praotioeof law, **under** the firm name or X ma P, in Fort worth, I-4x44;and may, rr0p time to tI.04,Ohang4 and 4mend eaa4j and,with rsepsat to all such spsclal partnerrrhip agreements and mendments thereto, it ismutually agreed that General Partner shall have and

### poeseas at all tifnaa the full Fight and authority to enter into and make anmay addltioual special parthership agreements, ohangss and am4ndm4nt8 thereto, a4 Censral Partnar my 4On4id4F to the beat interest of eaid firs ofX a Y, and upon auoh term and conditions aa hneral 

### partnewslndany speolal partner may mutually arae uponj and, the temalnation of a apeolal partnerrhip agrcrementwith one special partner shall not, in anyway, involve et effect a spaolal partnership agreement with othsr special partnerr; eaoh speoiti partnership agreement being independent of snd eeparats am3 distinot rraonthe others.

"5. It 

### ler

ma&ally agreed that the legal fo@s, salariecs,and retainer4 oolleot4d by General partner and aaraoaiatedOpeoial paFtneF8, doing buainesa under the Pirn ham? ofXh Y, in the City 

### 0sSortxfortth, Texas, 4h4ll not lnoludo any oomtiiasion4,allowances or ptkymsnte,earnsd or X4- oaivad by any one of the g4n4ral partnere, OF by any one of ths ;ipealalPartners, for aoting as Ad- &niatrator, Ex4outor, or Truet44 of an s&at4 or under awll.1,or under a tru4t ir4trunWlt; but I444 and allowances paid to and received by auy of the General op **Speelal** Partners for acting (18trustae inbankruptoy, attorney for trueMe in bankruptdy, recrelver

, or a4 attorney for ths reo4lver. appointed by sither the State or Federal Courts, 4hall be Oonaidered a legal fee, and ?.r.~alud4cI in the gr044 aarnings of Oenaral and associated Speaial PartneW.

Lt i4mtu4l.l~ agrrad OQnaral Partner shall zt*the eraluaive judge of th4 general POliOl4a ofT8Xa8 hl8aplOp8nt CGmpensa~iUl COIZIlQiEeiOn, pace 11

PaId partnership firm ofX & Y, and that General i'artnershall have exclusive charge, control and supervision of 

### offloedetalle, offloe management, bookkaepiog and aocountlng, Piling, purahase of office stationary and supplies, the hiring and @lsoharge, and the 22x1~ of salaries, hours and regulations governing stenographers bookkeeper, file clerk, telephone opera&r, janitor, and other similar 8mployee~; **and,** with reapsot to all such **matters** General Partner shall not be eXp8Ot8d,
or required to oonsult with, or s6aur8 the oonaant of Epaalal Partner, who hereby ratifies, approves 

### and confirms all that General Partner may do in eucrhmatters.


### "7. The follow~lngis of the easenoe of this oontraat: Due to the faot 

### thatone or more of the special partnerships entered Into by General Partner may be tarmlnated from time to time, on at$OOuat of a spealol **Partner** alther desiring **to enter**  

### the practfoo of law by himself or to join another Urm of attorneys, General psrtnex aonslders lb high17 desirable to retain and tr6at es oonfldential the reoelpte and disbursements ol the 'firmofX L Y, gomposed of General Partner and assoaiated ~peclal Partners; and,,tipeoial?art.nar, nemd in thie 

### agreement, having aonfidanoe in the fafrness, honesty and Integrity of General partner, doas hereby agree, bind and obligate hfmsslf to 

### aooapt,at all t&mea during the oontlnuanoo of this speolal partaer+hip, **and at**  it8 dissolution, the statement Of General Partner as to the amount ofmoney whioh represents the share of Spssial Partncrrin the not sarninge of said firm ofX bY$ and, it shall 

### neverbe neoessary or required of General Partn6r that an iteralzedsta$ezent of receipts or **earnings be**  given to Speelal Yartner, either during the period of the operation of this agreement, or at its termination, and a certlfloat?, under oath, if required by the bookkeeper of,,.,1 9;Y that the emount du8 and owin& to Speoial eartner as and for his share, as hereinbefore Set oat, shall be QOnclualre and binding upon him, his hairs, assi6W3 end legal representatives.

The special partnership herein formed shall ;8,*automatieallydissolved by the death of eitb

# ”..~ 276

Texas UnslaPlOment Compensation Conraission, page 12

Y or X, two of the Gzxerel Partners, or by the death of Spealal t'ertner,with when tl;ls agreement isL?ade;or itrns be teminated at the election of either General Partner or +eoial Pertner, with whom this agraerzentismade; or itmey be termlneted at the election of either General Partner or ~pealel partner, by the one so elsoting to terf~~lns.ta giving thirty days' notice to the other; end, at the end of said thirty day period, this qetiial ~ertnerrhlp Agreement shall in all reapeots be terminated, and ~peclal pert

### nershall be entitled to his share, as hereinbefore sat out, of the net earningo of General Partner end all assoalated bpeaiel Partners up to the date of the termination of this partnership agreement, but no longer. It is further mutually agreed that no aonelderatlon will be given or allowanoe made to Speolal Partner, upon the termination of this Special ?artnershlp Agreemsnt on aooount of any unaolleoted legel fees, salaries and retainers,
or to oherges 

### orearnings, on any unflniehed legal business, which have not then been eotually colleoted; it being the intention of General Partner **and** Spaoial Partner to limit and reetriot, and they do hereby agree to limit end restriot Spoolal 

### Paxtner*sshare end interest at the time of the termination of thfs S~eclal Partnership Agrewent, to the aatual oash fees, salaries and retainer8 aolleated up to the time of suoh dlssolutlon, but not thereafter.

"This Speolal Pertnsrehlp Agreement shall be etf80- tive as of Jenuaxy 1, 1930, an8 shall continue until dissolved in themanner above 88t out.

General Partner

bpeaisl PartnerTexas Unesiployineut ConspensationCommlnsfon, page 13

Story on 2artnership, 4th a., Sec. 8, had 

### defined
s partnerehip to be:

*A voluntary contraot between two or more coltpeter& persons to plaoe thelr mmey, **srrects,** labor, and skill, or SOW 

### orall of them, in lawrul eoameroe or **busineas,** wi.ththe understanding that there shall be a ooarnunionof the profits thereof between them.*

The aontraote dlaclose that the general partners my take in or oontract with other apeolal

## partnerswithout oonmalting **A** or 3. 

### Oneoithemost 

### @portant elements or **part** nershlp is the deleotus personarum - the right 

### to ohooae oae*e owa partner. A partner’s right 

### to objeot to the admirsion 

### 0r a new partner ie not

### aPlatteror oontraot right 

### wbiohoan be bargained away but erirts as a ruudamntal 

### right
**or** 

### apartner.

These so-called speoial partnerm have **merely** oontraoted to perform personal services 

### ror oompensation which our law defines am -ageam or 

### rmvineration ror personal 8enloee.


### ftisnottoeablethat the 

### general partnsro epeolrleally withha the power to rix the polioies **or** the tim3 giving t&mm assoofates no voioe or control of the union they hare 

### ioxmsd

. Paragraph (b)or the contraot with B guarantees him a

Learly compensation of ~5,000.00 payable in twelve equal sums. ha.sno olaisxror any other asount of money if the 

### nst earnings, as defined by the oontraot, 

### donot reaoh a rlgure thatwould bring him more on a oomputation of 5% of the net earuinga. Ee has no right to ask **for** an aooounting of the reoelpt8 **and** dlsbursemnts. he oontributea 

### 8ervlae8,butno oapltal nor fe he ppcmitted.to aoquire any interest in the property or the partnership, At theminute of the expiration
or hlb:oootraat with X and 11,he has 

### no interest **wbat&wr** in any unoolleotsd fees or retainera. The firm is as rrae or him, 

### undsr the oontraot, aa they would be of any employee.

In oonoluaiox~we mish to quote

## fromStory on Parherships, 4th Zid.,action 49, the rollowing: 

### It 

## 278

Texas &Munployment CorapensationC!xxr&ssion,page 14

" ,wheze om party is stripped of the p&&s end rights of a partner, and clothed only with ths more limited powers and righta of an agent, It seems harsh, ifnot unreasonable, to crowd upon his the duties and responsIbilItIse of
a

### partner,which he has never aseuivied, and for wtiah tiehas no reoiprooity of **reward** or Intereet. it has, therefore, been well said by ibr.Chanoellor &ent,,In his learned ~omaentaries, that *tobe a partner, otiezust ham sirchaa Interest in the proi'itrr,

aswili entitle hitito an 

### 6iooOunt, aEdgive him a specifio lien or preferenoe In payment over other 0red;torm. There is a distinction **between a**  stIpulatIon **r0r** a oompsnsation for labor proportioned to the profits, whioh does hot make aperson a partnerg and a stipulation for an Interest In s.uohprofits uhiah eutitlee the party to au amount, as a partner.' And sr. Collyer has given the
sarm doctrine In equally expressive **terms, when**  he says, that

### Inorder to oonatitute a oonmuuIon
or profits between the parties, whioh ehallmako then partners, the lnteramt in the profits mast 

### be srutual1that is, each person must have a speoifio Interest In the prorite, as a priuelpal trader."

The contracts subcxittedtail to satiery these testa.

s'eare of the opinion that A and E are not partners but
are In the e;aployinent 

### ofthe law firiu

### ofX and Y.

Yours very truly