Partnership Agreement Between Two Parties template

Partnership Agreement Between Two Parties Template Compliant with the Laws of the Kingdom of Saudi Arabia

On / / AH, corresponding to / / AD, in the city of ........, the following agreed: First Partner: Mr/Ms ........................, National ID/Iqama No.: ............, National Address: ................, Mobile: ........ Second Partner: Mr/Ms ........................, National ID/Iqama No.: ............, National Address: ................, Mobile: ........ Clause One: Subject of the Partnership The two parties are partners in the project: ........................................, whose activity is: ........................, and whose premises are at: ........................ Clause Two: Capital and Shares

Partner	Contribution (cash/in kind/work)	Value	Percentage
First	....	........ riyals	....%
Second	....	........ riyals	....%
Total	—	........ riyals	100%

In-kind contributions shall be valued by written agreement of the two parties, with evidence of their value attached. Clause Three: Distribution of Profits and Losses Profits and losses shall be distributed in proportion to the shares above, unless otherwise agreed in writing. Settlement shall be made every (........), after deducting expenses and setting aside a reserve of (____%) if the parties so agree. Clause Four: Management and Powers

• Management shall be undertaken by: (the First Partner / the Second Partner / both jointly).
• Actions requiring the approval of both partners together: borrowing, mortgaging, selling, contracting for more than (........) riyals, hiring, opening a branch.
• A bank account shall be opened in the project's name, and no withdrawals may be made from it except in accordance with the powers above.

Clause Five: Books and Inspection Proper books shall be kept for the project, and each partner has the right to inspect them at any time and to request a periodic report every (........). Clause Six: Assignment and Admission of a New Partner Neither partner may assign its share or any part of it to a third party except after offering it in writing to the other partner and granting the other partner a right of first refusal within (........) days on the same terms. Clause Seven: Withdrawal and Termination

• A partner wishing to withdraw shall notify the other in writing (........) days in advance, and its share shall be valued according to the following mechanism: ........................
• The partnership ends on completion of the project, by agreement of the parties or by court judgment; the assets shall then be liquidated, the liabilities paid, and the remainder distributed in proportion to the shares.

Clause Eight: General Provisions

• The parties undertake to complete the incorporation of the legal entity and its registration with the Ministry of Commerce within (........) days of the date of this agreement, if they so agree.
• This agreement is governed by the laws of the Kingdom, in particular the Civil Transactions Law and the Companies Law where applicable.
• Disputes shall be settled amicably, failing which before the competent judicial authority.
• Executed in two copies, one held by each partner.

First Partner: Name: ................ Signature: ................ Date: / / AH Second Partner: Name: ................ Signature: ................ Date: / / AH