SILENT PARTNER AGREEMENT

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This Silent Partner Agreement ("Agreement") is entered into on this 1st of January 2050, by and between the [Active Partner's Full Legal Name] ("Active Partner") and [Silent Partner's Full Legal Name] ("Silent Partner").

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1. Roles and Responsibilities

1.1 Active Partner's Duties: The Active Partner, in their significant role, shall shoulder the critical responsibility for the daily operations of the business, exercising their decision-making abilities, and providing the overall management. In effect, they will be overseeing and steering the course of the entire business.

1.2 Silent Partner's Role: The Silent Partner, who plays the role of an investor, provides a substantial financial contribution to the functioning of the business. Despite this significant role in sustaining the business financially, the silent partner tends to hold minimal interaction or involvement with the operations and daily running of the business.

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2. Investment Protection

2.1 Financial Contribution: In the realm of business, the Silent Partner is projected to make a significantly substantial investment. The financial contribution that they are anticipated to make is slated to be in the large sum of one hundred thousand dollars.

2.2 Utilization of Funds: The Active Partner will determine how this investment should be utilized, and it is expected to cover both the operational costs and capital expenditures of the business.

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3. Decision-Making Authority

3.1 Active Partner's Authority: The partner who is actively engaged in the business, also known as the Active Partner, will possess the necessary authority to steer the company's daily operations. This will entail making crucial operational decisions every day, as well as handling all aspects of management, in order to ensure the smooth functioning of the business.

3.2 Significant Decisions: However, any significant decisions that may have a potential effect on the company's entire structure and its operations will necessitate consent or at the very least require the input of the Silent Partner.

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4. Profit Sharing

4.1 Distribution of Profits: The company's profits have been determined to be allocated among the partners in a specified manner. As per this arrangement, the bulk of the profits, which is 60% of the total, will go to the Active Partner. On the other hand, the Silent Partner, who does not take an active part in the operation of the company, will receive the remaining balance. This sums up to 40% of the overall profits. In this way, the distribution of the company's profits amongst the partners is expected to occur.

4.2 Loss Absorption: If should occur any losses, these potential deficits will be thoroughly absorbed and managed by the corresponding percentages that have been established and set into place previously.

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5. Exit Strategies

5.1 Dissolution of Partnership: The Agreement is comprehensive and includes specific provisions and guidelines that detail the exit strategies for both partners involved in the cooperation. These rules and regulations address and handle an assortment of potential situations that may arise, possibly leading to the decision to dissolve the stipulated partnership between the two parties.

5.2 Transfer of Ownership: In addition to the previously mentioned items, the document also provides a detailed explanation of the procedure to be followed when selling or transferring ownership interests. It also incorporates stipulations related to how the value of the business has to be determined.

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6. Confidentiality and Non-Compete

6.1 Protection of Business Information: The Agreement that is being referred to here contains specific clauses and provisions that are designed to safeguard information that is deemed confidential and proprietary to the business operations of the company, thereby offering a certain level of protection against unauthorized disclosure or misuse.

6.2 Non-Compete Clause: In addition to other measures, it also acts as a deterrent for partners, stopping them from getting involved in businesses that compete with the partnership, not just during the partnership tenure, but also after its conclusion.

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7. Dispute Resolution

This Agreement contains procedures for resolving disputes that may arise between the partners. Issues not resolved through dialogue will be subject to mediation, followed by arbitration if necessary.

The parties have entered into this agreement as of the date first above mentioned, intending to be legally bound thereby. The parties acknowledge that they have read and understood this Agreement and agree to all its terms and conditions.

[Your Name]

[Date Signed]

[Silent's Partner Name]

[Date Signed]

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