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Thread: Partnership Agreement

  1. #1

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    Partnership Agreement

    Three of us are forming a partnership to build either a Wheeler Express (now CAT Express) or a Revolution Aircraft Foxtrot. We want to craft a partnership agreement before we start. Is anyone aware of already-existing agreements in a template form so we don't have to completely craft our own?

    Thanks

  2. #2

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    I know this is in bad taste on the EAA FORUMS but, AOPA may have some sample agreements on thier site. I know they did for a purchase contract.

  3. #3

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    I don't think it's in bad taste at all to refer someone over to AOPA, if they have the needed resources. Our spam cam brethren are very useful allies in 99.9% of EAA efforts.

    I agree that the standard fractional ownership paperwork, with the word "kit" added would be sufficient.
    The opinions and statements of this poster are largely based on facts and portray a possible version of the actual events.

  4. #4
    Banned
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    These are excellent templates from COPA-Canadian Owners & Pilots Assoc that can be modified to anyone's circumstances. Or just eat 'em right out of the box.

    Scroll about one-quarter down to "Aircraft Partnerships".


    https://portal.copanational.org/mpow....action?id=278

  5. #5
    crusty old aviator's Avatar
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    There's a LOT more involved in a partnership agreement for building a plane, than one that is for buying one, so while COPA's "boilerplate" is useful, there's a lot more work to do and you'll have to craft your own, or hire a contracts specialist to help you draft the agreement. Lawyers are usually poor contracts resources, as they're educated in contracts law that is based on court cases, not based on solid contracts that kept all involved parties out of court. A lawyer's fall-back is litigation, where they can really rack up some billable hours. A contracts manager or specialist doesn't litigate, so he will draft an agreement that covers all bases and contingencies, so if there's ever an argument within the partnership, the agreement can be consulted and also amended to cover what is later discovered missing. This will keep you out of court. So what should be in the "fine print" besides a lot of boilerplate (aka blah-blah-blah)?

    How will value be determined and how many "shares" will each partner own? The old 33-33-34 split is ideal, but doesn't work unless all three partners spend the same amount of money and productive time on the project. If one partner shows up one or two nights a week and accomplishes little work on the project: should he have as much value in it as the partner who is supplying the workspace and working 30 hours/week on it? If one partner is an A&P, should his time be valued higher than the high school history teacher's? What if two partners want a $24K panel that the third partner can't afford to invest $8K in? What happens if one partner gets killed by a drunk driver, or has to leave the partnership, half-way through the project? These are all issues that need to be discussed and written down now, so when the turds hit the fan, you're all holding the same document that spells out the same expectations. You could discover during these planning discussions, that you don't want to be partners with one or both of the others. Now is the time to find out, not years from now when you learn that the other two have just painted her up pumpkin orange and installed a neon blue interior...and expect you to pay your third to the paint and upholstery shops.
    You may be wondering how I know all this blah-blah-blah: I am a contracts manager and I draft successful partnership agreements quite often. I'm not offering my professional services to you over this forum, but I will gladly answer any questions you may have, as a fellow aviator helping you to get flying.

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