Preferred Partnership Agreement Template for Switzerland

The Preferred Partnership Agreement is a sophisticated legal instrument used in Swiss business relationships where parties wish to establish a partnership with differentiated rights and privileges among partners. This document type is particularly relevant when establishing strategic business relationships that require varying levels of control, profit participation, and risk exposure among different classes of partners. The agreement must comply with Swiss partnership law, particularly the Swiss Code of Obligations, while providing flexibility in structuring partner relationships. It typically includes detailed provisions on capital contributions, profit sharing, management rights, transfer restrictions, and exit mechanisms, making it suitable for complex business arrangements where partners have different levels of involvement or investment. The document is commonly used in investment scenarios, joint ventures, and professional service firms where certain partners need to maintain preferential rights while ensuring the partnership's overall stability and success.

1. Parties: Identification of all partners, including preferred and non-preferred partners, with their full legal details

2. Background: Context of the partnership formation and the rationale for the preferred partnership structure

3. Definitions and Interpretation: Definitions of key terms and interpretation rules, including specific definitions related to preferential rights

4. Partnership Structure: Legal form of the partnership and classification of different partner categories

5. Preferential Rights: Detailed description of preferential rights granted to preferred partners

6. Capital Contributions: Initial and subsequent capital contributions, including valuation methods

7. Profit and Loss Allocation: Distribution of profits and losses, including preferential returns

8. Management and Voting Rights: Governance structure, voting thresholds, and special voting rights of preferred partners

9. Partner Obligations: Duties and responsibilities of all partners, including any special obligations

10. Transfer Restrictions: Limitations on transfer of partnership interests and right of first refusal provisions

11. Exit Provisions: Mechanisms for partner exit, including tag-along and drag-along rights

12. Term and Termination: Duration of the partnership and grounds for termination

13. Confidentiality: Protection of partnership and partner confidential information

14. Governing Law and Jurisdiction: Confirmation of Swiss law application and jurisdiction for disputes

15. General Provisions: Standard boilerplate clauses including notices, amendments, and severability