PARTNERSHIP AGREEMENT

by | Jul 3, 2023 | Agreements

PARTNERSHIP AGREEMENT

This Partnership Agreement (the “Agreement” is made and entered into on ____________________ (the “Execution Date”) by and between the following parties:

  1. Wanis Saud
  2. Ibrahim Al-Furatia
  3. Muhammad Al-Kout

BACKGROUND:

  1. The Partners wish to associate themselves as partners in business.
  2. This Agreement sets out the terms and conditions that govern the Partners within the Partnership.

IN CONSIDERATION OF, and as a condition of the Partners entering into this Agreement and other valuable consideration, the receipt and sufficiency of which consideration is acknowledged, the Parties to this Agreement agree to the following:

  1. FORMATION

The partners will form two companies namely Company A which is Awwad Transportation LLC and Company B which is Freightline Express LLC respectively. Company A will be owned by Ibrahim Al- Furati : 66.3% and Wanis Saud 33.3% each while Company B will be owned by Muhammad Al-Kout : 66.3% and Nees Saud: 33.3 %.

  • PURPOSE

The purpose of the Partnership will be the following: ___________________

  • PLACE OF BUSINESS

The principal office of business of Company A will be located at ________________ and that of Company B will be located at ____________________

  • CAPITAL CONTRIBUTIONS

Each of the partners will pay any cash advances or loans owed to the business including all rented trucks and equipment. Partners are responsible for any financial cost, any damages or judgment from the beginning of June 1st 2019 to January 1st 2021.

  • CAPITAL ACCOUNTS

An individual capital account (the “Capital Accounts”) will be maintained for each Partner and their initial capital contribution will be credited to this account. Any additional capital contributions made by any Partner will be credited to that Partner’s individual capital account.

  • FINANCIAL DECISIONS

Decisions regarding the distribution of profits, allocation of losses, and the requirement for additional capital contributions as well as all other financial matters will be decided by a unanimous vote of the Partners.

  • PROFIT AND LOSS

Subject to other provisions of this Agreement, the net profits and losses of the Partnership, for both accounting and tax purposes, will accrue to and be borne by the Partners in equal shares.

  • VOTING

In any vote required by the Partnership, the vote cast by each Partner will be assessed where each Partner receives one vote carrying equal weight.

  • ACCOUNTING

Accurate and complete books of account of the transactions of the Partnership will be kept according to the generally accepted accounting principles (GAAP) and at all reasonable times will be available and open to inspection and examination by any Partner. The books and records of the Partnership will reflect all the Partnership’s transactions and will be appropriate and adequate for the business conducted by the Partnership.

  1. MEETINGS

Regular meetings will be held by the partners as they may deem appropriate.

  1. INDEMNIFICATION

All Partners will be indemnified and held harmless by the Partnership from and against any and all claims of any nature, whatsoever, arising out of a Partner’s participation in Partnership affairs. A Partner will not be entitled to indemnification under this section of liability arising out of gross negligence or willful misconduct of the Partner or the breach by the Partner of any provision of this Agreement.

  1. AMENDMENTS

This Agreement may not be amended in whole or in part without the unanimous written consent of all Partners.

  1. ENTIRETY

This Agreement contains the entire agreement between the Parties. All negotiations and understandings have been included in this Agreement. Statements or representations which may have been made by any Party to this Agreement in negotiation stages of this Agreement may in some way be inconsistent with this final written Agreement. All such statements are declared void in this Agreement. Only the written terms of this Agreement will bind the Parties. The Agreement and the terms and conditions are binding upon all Parties to this Agreement.

  1. GOVERNING LAW

This Agreement will be construed and interpreted according to the laws of ____________

IN WITNESS WHEREOF, this Agreement has been executed and delivered in the manner prescribed by law as of the Effective Date first written above.

Name: __________________

Signature: ________________

Date: ___________________

Name: __________________

Signature: _________________

Date: _________________

Name: _________________

Signature: __________________

Date: __________________

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