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Silent Partnership Agreement Template

Used 5,013 times

Use this Silent Partnership Agreement Template to outline the terms of your business relationship. This template is planned to be used when one or more members have no interest in managing the corporation but wish to invest for a percentage of the earnings.

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  1. Templates
  2. Agreements
  3. Silent Partnership Agreement Template
available

available

Silent Partnership Agreement Template

Image 1

Prepared by:

[Partner2.FirstName][Partner2.LastName][Partner2.Company]

Prepared for:

[Partner1.FirstName][Partner1.LastName]

[Partner1.Company]

I. PARTIES

This Silent Partnership Agreement (herein, the "Agreement") is made and entered into by and between:

[Partner1.FirstName][Partner1.LastName] (herein, the "Partner 1"), with a mailing address of [Partner1.StreetAddress], [Partner1.City], [Partner1.State][Partner1.PostalCode], and [Partner2.FirstName][Partner2.LastName] (herein, the "Partner 2"), with a mailing address of [Partner2.StreetAddress], [Partner2.City], [Partner2.State][Partner2.PostalCode], each a party, collectively referred to herein as the "Partners," on [Document.CreatedDate].

II. PURPOSE

The purpose of this Agreement is to lay out the silent partnership's terms and conditions between Partner 1 and Partner 2, in which Partner 1 will contribute (insert number)% of the capital and Partner 2 will contribute (insert number)% of the capital for (insert purpose of partnership).

III. CAPITAL CONTRIBUTION

Partner 1 shall contribute $(insert amount) in capital to the partnership, and Partner 2 shall contribute $(insert amount) in capital to the partnership. The capital contribution shall be paid in full upon execution of this Agreement.

IV. ROLES AND RESPONSIBILITIES

Partner 1 shall be responsible for the management and operation of the partnership, including making all decisions related to the business.

Partner 2 shall be a silent partner and shall not be involved in the day-to-day operations of the partnership. Partner 2's sole responsibility shall be to contribute $(insert amount) in capital to the partnership and to share in the profits and losses of the partnership as determined by the provisions of this Agreement.

V. PROFIT AND LOSS DISTRIBUTION

The profits and losses of the partnership shall be shared equally between the Partners. All profits and losses shall be calculated on a (insert period, e.g, quarterly, annual) basis and distributed to the Partners within (insert number) days of the end of the fiscal year. If the partnership incurs a loss, the Partners shall bear the loss in proportion to their capital contributions.

VI. DECISION-MAKING

Partner 1 shall have sole decision-making authority for the partnership. Partner 2 shall not be involved in the decision-making process for the partnership and shall not have any management responsibilities.

VII. DISSOLUTION

Either Partner may propose the dissolution of the partnership at any time, provided that written notice is given to the other Partner at least (insert number) days in advance. Upon dissolution, the Partners shall negotiate in good faith to determine the fair and equitable distribution of the partnership's assets.

If the Partners are unable to reach a mutually satisfactory agreement, the assets of the partnership shall be distributed according to the laws of the State of [Partner1.State].

VIII. CONFIDENTIALITY

The Partners shall maintain the confidentiality of all financial and business information related to the partnership unless required by law to disclose such information.

IX. GOVERNING LAW

This Lease shall be governed by and construed by the laws of the State of [Partner1.State].

IN WITNESS WHEREOF, the Parties have indicated their agreement to be bound by the terms and conditions of this Agreement by affixing their signatures below on the dates indicated.

Signature
MM / DD / YYYY

Signature
MM / DD / YYYY

[Partner1.FirstName][Partner1.LastName]

[Partner1.Company]

[Partner2.FirstName][Partner2.LastName][Partner2.Company]

Silent Partnership Agreement Template

Used 5,013 times

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