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1. Parties: Identification of the active partner(s) and the silent partner, including full legal names and addresses
2. Background: Context of the agreement, including the business nature and purpose of the silent partnership arrangement
3. Definitions: Key terms used throughout the agreement defined for clarity and legal certainty
4. Partnership Structure: Details of partnership form, roles, and relationship between active and silent partners
5. Capital Contributions: Specification of initial and any future capital contributions by the silent partner
6. Profit and Loss Sharing: Terms for distribution of profits and allocation of losses between partners
7. Management and Control: Clarification that silent partner has no management rights or control over business operations
8. Confidentiality: Terms ensuring the confidentiality of the silent partner's identity and involvement
9. Financial Reports and Access to Information: Silent partner's rights to financial information and inspection of books
10. Liability Limitations: Explicit limitation of silent partner's liability to their capital contribution
11. Term and Termination: Duration of the agreement and circumstances allowing for termination
12. Exit Provisions: Process and terms for the silent partner's withdrawal or exit from the partnership
13. Governing Law: Specification of applicable provincial law and jurisdiction
14. General Provisions: Standard clauses including notices, amendments, and severability
1. Tag-Along Rights: Used when the silent partner wants the right to join in if the active partner sells their interest
2. Drag-Along Rights: Include when active partner wants right to force silent partner to join in sale of business
3. Non-Competition: Added when there's concern about silent partner investing in competing businesses
4. Death and Disability: Include specific provisions for handling partner death or disability if not covered in general succession planning
5. Additional Capital Calls: Include if there might be need for additional capital contributions in future
6. International Considerations: Required if any partners are foreign or business has international operations
7. Tax Elections: Include specific tax treatment choices if partners want to specify particular tax arrangements
1. Schedule A - Capital Contributions: Detailed breakdown of initial and any planned future capital contributions
2. Schedule B - Profit Sharing Formula: Detailed calculation method for profit sharing and distribution timing
3. Schedule C - Business Plan: Overview of business operations and strategic plans
4. Schedule D - Financial Reporting Requirements: Specific format and timing of financial reports to be provided to silent partner
5. Schedule E - Valuation Methodology: Agreed method for valuing partnership interests for exit or transfer purposes
6. Appendix 1 - Partner Information: Confidential record of all partner details and contact information
7. Appendix 2 - Bank Account Details: Banking information for capital contributions and profit distributions
Agreement
Business
Business Day
Capital Account
Capital Contribution
Confidential Information
Default Event
Effective Date
Fair Market Value
Financial Year
Initial Capital Contribution
Intellectual Property
Limited Recourse
Net Profits
Operating Expenses
Partnership
Partnership Interest
Profit Share
Silent Partner
Term
Territory
Transfer
Withdrawal Notice
Material Adverse Change
Books and Records
Business Plan
Distribution
Encumbrance
Fiscal Year
Insolvency Event
Management Rights
Related Party
Reserved Matters
Security Interest
Tax Matters
Valuation Date
Voting Rights
Working Capital
Capital Contribution
Profit Sharing
Loss Allocation
Management Rights
Confidentiality
Non-Disclosure
Financial Reporting
Access to Information
Liability Limitation
Non-Competition
Non-Solicitation
Term and Duration
Termination
Exit Rights
Transfer Rights
Tag-Along Rights
Drag-Along Rights
Representations and Warranties
Death and Disability
Force Majeure
Dispute Resolution
Governing Law
Amendment
Assignment
Notices
Severability
Entire Agreement
Further Assurance
Counterparts
Independent Legal Advice
Tax Matters
Business Operation
Decision Making
Default
Indemnification
Successors and Assigns
Waiver
Survival
Private Equity
Real Estate
Hospitality
Retail
Technology Startups
Manufacturing
Professional Services
Entertainment
Food and Beverage
Construction
Healthcare
Agriculture
Legal
Finance
Corporate Development
Investment
Compliance
Risk Management
Business Development
Executive Leadership
Treasury
Corporate Governance
Business Owner
CEO
CFO
Private Investor
Investment Manager
Business Development Manager
Corporate Lawyer
Legal Counsel
Financial Controller
Partnership Manager
Investment Advisor
Risk Manager
Compliance Officer
Business Strategy Director
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