Sample Business Contract

1. THE CONTRACT IS BETWEEN

Party A:
Name: Junaid Khan
Address: Flat No: 06, Building No: 27, Block 10, Gulistan.e.Johar, Nawaz Shareef Scheme Flats
PHA Society.
Phone No: 0312-2018087
Email: ce.junaidkhan07@gmail.com
NIC No: 44103-5827625-3

Party B:
Name: Muhammad Kashif Rafiq Ur Rehman
Address: House No: C-2/14, Raita Plot Shah Faisal Coloney.
Phone No: 0300-9249160
Email: mk786.khi@gmail.com
NIC No: 42201-7170785-5

2. THE BUSINESS
X-Ent Group of Companies:
Business Model/Activity: Eternity Vision, Unisolar, Consultancy & Others

3. LEGAL STATUS
Sole Proprietor right now after months it will be pvt Ltd.

4. SHARE BREAKDOWN
Part A % Party B %
Equity Ownership: 50% 50%
Profit Share: 50 50
Decision Making: 51 49
*Decision Making Should NEVER EVER be 50/50.

5. INPUT INTO BUSINESS(Startup cost)

Total Costing:
Startup cost 650,000.00 XENT
Recurring cost 350,000.00 (2 Months 700,000/-)

Party A : Startup cost 325,000/- Recurring cost 350,000/-

Party B : Startup cost 325,000/- Recurring cost 350,000/-
*Recurring cost will be paid mutually as per the time to pay

6. BANKING
All banking shall be done via Bank, Both shareholders will have equal access. Maximum
withdrawal allowed will be set to mutual understandings, all bank accounts and petty cash will
handle by accountant,

7. ROLES & RESPONIBILITIES

Part A: Act as a Director Marketing, set direction, targets and guidelines. Help increase
distribution opportunities & marketing. Make major business decisions.
Party B: Will operate as the Operation Director, deal in purchasing technical drafting, making
budgeting, and client satisfaction business on a daily business, chase targets, increase
efficiency, implement guidelines and maintain overall operations.
Both Directors will charge their salaries of 100,000/- per months.

8. DATES
Contract Start Date: 1st June 2021
Contract End Date: Indefinite.

9. ASSETS
Asset list will be attached in this contract.

10. WHAT WILL BREAK THE CONTRACT?

A. Business does not reach 5 lakhs sale a month 3th Month
B. Business does not reach 1 lakh in profit a month by 4rd Month
C. Business will not meet the target of 50 to 60 lacs in the end of this financial year.
D. Business runs out of money to operate.
E. Mutual agreement of both parties to part ways.
F. Discrepancy in account keeping.

11. AFTER BREAKUP

A. Who will own rights to brand/name of business?
Who needs to breakup he will sale his ownership to second one.
B. How will business assets be divided?
As per the ratio of 50/50 or of they need to sale each other

12. SALE OF BUSINESS/SHARE

A. Can one person make the decision to sell the business?
NO
B. Can one party sell their share?
Yes(but mutually decide)
C. Current share-holders have first right to any shares sold.
Yes
D. All new owners must adhere to existing contract terms.
Yes.
13. MISC. TERMS
A. No family member or representative of either party is allowed to interfere with the
business without written and attested permission of shareholder being represented.
NO
B. No Hiring of family members or friends as staff, contractors or goods providers.
Mutually decided
C. All business accounts, updated by accountants on a weekly basis.
D. All monies taken the previous day must be banked on a daily basis.
E. Profit distribution every 3 months.

15. SIGNATURES
Party A: Party B:
Full Name: Junaid Khan Full Name: Muhammad Kashif Rafiq Ur
Date: 24th 06 2021 Rehman
Date: 24th 06 2021

Mutual Witness 1:
Full Name: Faiza Shahid Alam
Address: North Karachi, Alam pride.
Phone:
National ID No:
Date: