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1. Parties: Identification of the active partner(s) and silent partner(s), including full legal names and addresses
2. Background: Context of the partnership formation and silent partner's involvement
3. Definitions: Key terms used throughout the agreement
4. Capital Contribution: Details of the silent partner's investment amount and terms
5. Profit and Loss Sharing: Distribution of profits and losses between partners
6. Management Rights: Clarification that silent partner has no management rights
7. Liability Limitation: Scope of silent partner's limited liability
8. Term and Termination: Duration of agreement and conditions for termination
1. Buy-Out Provisions: Terms for buying out the silent partner's interest when partners want predetermined exit mechanisms
2. Death/Incapacity Provisions: Handling of partnership interest upon death or incapacity for succession planning purposes
3. Information Rights: Silent partner's rights to financial information and reports when additional transparency is needed
4. Non-Compete Clause: Restrictions on competitive activities when protecting business interests is crucial
1. Schedule A - Capital Contribution Details: Detailed breakdown of initial investment
2. Schedule B - Profit Sharing Formula: Detailed calculation method for profit distribution
3. Schedule C - Business Plan: Overview of business operations and projections
4. Schedule D - Partner Information: Detailed information about all partners including contact details
5. Appendix 1 - Valuation Method: Agreed method for valuing partnership interests
Agreement
Business Day
Capital Account
Capital Contribution
Confidential Information
Effective Date
Fiscal Year
Initial Capital Contribution
Limited Liability
Management Committee
Net Profits
Net Losses
Partnership
Partnership Interest
Percentage Interest
Profit Share
Silent Partner
Term
Territory
Transfer
Valuation
Withdrawal
Profit and Loss Distribution
Management Rights
Limited Liability
Confidentiality
Non-Disclosure
Non-Competition
Non-Solicitation
Voting Rights
Information Rights
Transfer Restrictions
Tag-Along Rights
Drag-Along Rights
Buy-Out Rights
Death and Disability
Term and Termination
Representations and Warranties
Indemnification
Dispute Resolution
Governing Law
Amendment and Modification
Notices
Assignment
Severability
Entire Agreement
Force Majeure
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