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AIRCRAFT PARTNERSHIP AGREEMENT ZS-LDB Page 2 of 19 CONTENTS PREAMBLE ...................................................................................................................... 4 1 DEFINITIONS ............................................................................................. 5 2 PARTNERSHIP .......................................................................................... 6 2.1 Size of partnership .................................................................................................... 6 2.2 Nature of partnership ................................................................................................ 6 2.3 Share ......................................................................................................................... 6 2.4 Aircraft ownership ..................................................................................................... 6 2.5 Market value of aircraft ............................................................................................. 6 2.6 Procedure for sale of a partnership share ................................................................ 6 2.6.1 Minimum time ............................................................................................................ 6 2.6.2 First refusal by partnership ....................................................................................... 6 2.6.3 Obligation to accept offer .......................................................................................... 6 2.6.4 Offered value ............................................................................................................ 6 2.6.5 No offer ..................................................................................................................... 6 2.6.6 Sale to 3 rd party ......................................................................................................... 6 2.6.7 Approval .................................................................................................................... 6 2.6.8 Flight test................................................................................................................... 6 2.6.9 Obligations of selling partner .................................................................................... 7 2.6.10 Obligations of purchaser ........................................................................................... 7 2.7 Sale of aircraft ........................................................................................................... 7 2.8 Change of aircraft ..................................................................................................... 7 3 FINANCIAL RESPONSIBILITIES .............................................................. 8 3.1 Shared loan repayments ........................................................................................... 8 3.2 Costs of running and maintaining the aircraft ........................................................... 8 3.3 Purchase of new equipment ..................................................................................... 8 3.4 Partners' liability towards the costs of running and maintaining the aircraft ............. 8 3.4.1 Source of funds ......................................................................................................... 8 3.4.2 Revenue from use of the aircraft .............................................................................. 8 3.4.3 Apportionment of landing fees .................................................................................. 8 3.4.4 Reimbursement of expenses borne by the pilot ....................................................... 8 3.4.5 Special cash payments by partners .......................................................................... 9 3.4.6 Scheduled maintenance - cost allocation ................................................................. 9 3.4.7 Elective and unscheduled maintenance - cost allocation ......................................... 9 3.4.8 Overheads - cost allocation ...................................................................................... 9 3.4.9 Maintenance cost overruns ....................................................................................... 9 3.5 Failure to achieve 100 hours between MPIs – cost implications ............................ 10 3.6 Fuel costs ................................................................................................................ 10 3.7 Fuel management ................................................................................................... 11 3.8 Paying for flying time ............................................................................................... 11 3.9 Default on payment ................................................................................................. 11 3.9.1 3 months default ..................................................................................................... 11 3.9.2 Refusal to pay ......................................................................................................... 11 3.9.3 Ameliorating circumstances .................................................................................... 11 3.9.4 Divorce .................................................................................................................... 12 3.9.5 Bankruptcy .............................................................................................................. 12 3.10 Value Added Tax .................................................................................................... 12 3.11 Partnership bank account ....................................................................................... 12 3.12 Availability of statements ........................................................................................ 12 3.13 Overpayment .......................................................................................................... 12 4 THIS AGREEMENT ................................................................................. 13 4.1 Binding .................................................................................................................... 13 4.2 Changes to agreement ........................................................................................... 13 4.3 Temporary waiver ................................................................................................... 13 4.4 Disputes .................................................................................................................. 13 5 AIRCRAFT DAMAGE .............................................................................. 14 5.1 Person(s) responsible for the aircraft ...................................................................... 14 5.1.1 Responsible pilot ..................................................................................................... 14 5.1.2 Last pilot’s responsibility ......................................................................................... 14
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