Silent Partner Agreement Template for South Africa

1. Non-Compete Clause: Restrictions on the silent partner's involvement in competing businesses, used when the silent partner has industry expertise or connections

2. Exit Strategy: Detailed procedures for the silent partner to sell their interest or exit the partnership, important for larger investments

3. Tag-Along Rights: Rights of the silent partner to join in the sale if the active partner sells their interest, useful in larger business arrangements

4. Death or Incapacity: Provisions dealing with succession in case of death or incapacity of any partner, important for long-term arrangements

5. Additional Capital Calls: Procedures for requesting additional capital and consequences of non-contribution, relevant for businesses anticipating growth

6. Insurance Requirements: Obligations to maintain specific insurance coverage, important for high-risk businesses

7. Intellectual Property Rights: Provisions regarding ownership and use of IP, essential for technology or creative businesses

1. Schedule A - Capital Contribution Details: Detailed breakdown of the silent partner's investment, including any assets contributed in kind

2. Schedule B - Profit Sharing Formula: Detailed calculations and examples of how profits and losses will be distributed

3. Schedule C - Business Plan: Overview of the business operations and projected financials (if relevant)

4. Schedule D - Financial Reporting Template: Format and requirements for regular financial reports to the silent partner

5. Appendix 1 - Due Diligence Documents: List of documents reviewed by the silent partner before entering the agreement

6. Appendix 2 - Compliance Certificates: Copies of relevant business licenses and regulatory compliance documents