Documente Academic
Documente Profesional
Documente Cultură
~
'-'E!.. 6- (,;..
" q~
AB Contact Information:
If AB is an entity, ~
state the organization: Oklo! .5!r .4~
~L!,~C 5t; / ~.3'" ~ :;. -.J....,-r
J S ..>
Telephone Wor1< #
Address Sell No t"c.~ &:i/p ~-.s.=-_ }llCelt# or DHome# 5'(p/ .... 30:}- 5ffJ
The contract consists of this Completion Assist.an<;e Agreement, Exhibit A "Contract Price and Payment
Schedule" and Exhibit B 'Completion Lisf.
Agreement) ("EPiC Airframe Kit') from EPIC "Airworthiness Celrtificate" (as defined in
AIR. EPIC AIR will prepare a detailed "Basic FARs).
Airframe" for the construction of the EPIC
aircraft ("EPIC). F. ACS is wi!ling to provide these services to
AB pursuant to the terms of this Completion
C. AB desires to complete the construction of Agreement.
an EPIC in accordance with the applicable
provisions of the "Basic Airframe Specifications" NOW, THEREFORE, in consideration of the
through the purchase, incorporation and mutual covenants and promises contained
installation in the EPIC Airframe Kit and the herein, the parties hereto agree as follows:
requis~:e additional equipment and parts
("Construction Completion Process"). Section 1. COMPL.E!10~
D. ACS personnel have substantial expertise ACS has prepared a detailed list ("Completion
and experience in the construction of aircraft like List") which is altach,~ hereto as Exhibit Band
the EPIC. ACS personnel also have substantial
which iidentifies certain additional equiplment and (g) Complete aU tasks, with ACS' assistance, in a
parts rAddiitional Equipnllent and Pants"') timely manner that meets the schedules
developed during thle Construction Completion
whose incorporation or installation, as
Process and are required under the FAA
appropriate, in the EPIC J!\irfr.ame tCrt would Guidelines. Failure to compleb~ tasks within
produce an EPIC that would be a hj~Jh qU<:lfity agreed schedule win prevent AErs aircraft from
"Amat«~utr-Builf' (as defined in FAH) airGraft The progressing further in the build process.
equiprnent and parts identified in the C,omptet;io~
List as it may be aiJ'nended from tinle to time, are section 3. ACS' HESPONSIBIUTIES
hereafter ooUectN'efy called the Q)lmpletion lUst
ACS shall:
Section 2._~~~TEld!~-8UILDER'SRES£~'4SI~!b..rDES,
(a) Execute and complete th4~ Construction
Completion Process in a comp€~tent and timely
Amateur-BuHder shall:
fashion through the purchase of the equipment
and parts identified on the Compl~etion List (as it
(a) Cause to be defrvered to ACS' facility the may be amended from time to time) and their
completed EPIC .~irframe t\1t owned by AB. ACS installation or incorporation, as appropriate, in the
will assist AI3 'with lIogisti~ in the delivef)' of the EPIC Airframe Kit in accordance with the Basic
EPIC p,jrfrarne Kit to ACS. Airframe Specifications.
(b) Use n~or\:abfe comtnerdal E~fforts to '(b) Advise and provide input to AB, and
materialty participate activ~v and on a timely coHaborate with AS on a timely and ongoing
basis -vvith J!\.C,S during the various stages of the basis regarding aU requirements set forth in FAR
Construction Gornpletion Process iincluding, by and other FAA fJuidelines and directives
way of exatnple and not by way of Hm~tatiolrl, regarding the prerequisites for AB to obtaining an
those c~ct:MiUas id'3rltffied on Exhibiit A. Experimental Certfficalte for AS's EPIC_
(d) Prolmptfy after receipt of ACS' written noticE~, AS may propose: (a) th€ substitution of specified
pay all Imposts or, if already paid by AGS, items of equipment Olr parts in ptalce of items of
reimburse AGS for irts payrnent thelreof. E~uipment or parts identified in the Completion
[jst; or (b) the addmon of specified items to the
(e) Upon ,ACS' request, revielN and approvE~ in a Go.npletion List.
timely ,nannE~ trn~ schedules, tasks and rE~ted
respons;bifrtiE~ developed durin!} the ACS shan review each such proposal and shan
Construction Complfetion Prooess. approve such proposHI if, in ACS' judgment, the
substitution or addition in qUE~stion wm not
diminish the quality of the oompleted EPIC, make
(f) Amateur-BuiId43r's Repres4~ntatirvE~. Desi~gnatle
the Construction Completion Process
and mainta~n at all times an individu~31 to
represent Arnateur.. Builder vis-a-vis ACS jU3 r substantially more difficult or neg'atively impact
the quality, completion schedule or likelihood of
Representathre") who shall (i) be aVdlilable to
discuss with ACS nlatters ~;Jarding which ACS certification of the EPIC. ACS' approval shall not
requires AS's ~nput, (ii) provide input and Imak1~ be unreasonably wittlheld or delayed. In the
e~vent ACS approves a proposal, ACS shall
decisions prornptfy and in a comlrllerciafly
present to AS a writbm offer pursuant to which
reasonable time to allow A(;S to pelfonn rts
J~CS would execute the proposed substitution or
duties under this Completion Agreement in ;an
addition. ff AS acrepts ACS' written offer, Exhibit
efficient and rontinuous manner, and (Wi) Ibt~
I., shall be appropriatHly amended t the Contract
empoWl~red to bind AS regarding decisions lnadt~
by such AS RepresE~ntative. Price shaD be appropriately adjusted and the
atdjustment shall be pctid in fuH by AS or ACS, as
__ &/'/1
Customer Initials
Confidential: ACS LLC
Pagt: 2 of8 AIR Initials
,/ / OJpyright (;) 2006 AIR LLC. All rights reserved.
Revised 04104108
Case 3:09-cv-00628-AC Document 13-5 Filed 07/10/2009 Page 3 of 9
approplliate, and ;~le Construction Completion said parts and cornponents cu-e purchased,
Process shall continue with such change installed or applied.
incorporated as part thereof. Payment can be
made by adding amount to AS's baiance and ~[d} -As-Buitr. ACS shall provide "'lith respect to
amortized OVE~r ren1aining months. In any evant the completed EPllC -as-buitf' plans and
an monies rnust be paid prior to cornpJetk)n. specffications identifying parts and components
included therein.
Section S. .QpMPUmON OF EPICJ:,L
Section 6. RlSKS REGAROING THE EPIC
(c) Trt1e and l:9sk. Title to the EPIC Airfran1e Kit Section 7. ASSUMPTION OF RISK RELEASE
shaH rE:~main at aU times with AB. 1-f1~e to an t\ND INDEMNITY
equipment and parts installed into thE~ EA
Airtrame Kit and the risk of loss or damage J!\B acknowledges that AS understands the risks
regarding sarne, shall pass from .AGS toAB when involved in the ownership and operation of an
H-
Customer Initials
Jf?"r
Confidential: ACS LLC
Page 3 of8
Copyright <!, 2006 AIR LLC. All rights reserved.
AIR Initials
Revised 04104108
Case 3:09-cv-00628-AC Document 13-5 Filed 07/10/2009 Page 4 of 9
customilZations to the slc:,ndard EPIC, and the unutual agreement of the parties (and such
circumstances under which AB operates 1he agreement to arbitrate win not be unreasonably
EPIC. JI~CS and EPIC AIR do not represent as vfltJlheld by either party) the foHovJ'ing win apply:
fact or warrant in any way the estirnated 0) American Arbitration Assodation will conduct
perfomlance infollnation. AB's agrees that Gill saKi arbitration; (fi) the substantive "law of the
such information is fOr genera II guidance only. State of Oregon will apply; c) the procedural rules
of the American Arbitration Association will apply;
Section 11. QJ~LE(~uION AND A:=?SIGN~~illJIr.. (iii) there will be a palnel of three (3) arbitrators,
one (1) each chosen exclusively by each party
.and one (1) chosen by both pa.rties by mutual
ACS shall halve the power and authority, in ~ts ,agreement, if the parties cannot agree to the third
unfettered d~scretion, to assign any or aU its rights arbitrator, the American Arbitration Association
hereunder to la ACS Affiliate or ACS Affiliaf:e~ and 'win appoint one; (iv) an hearings .and findings will
to delegate any or all of its duties ;and obligations be kept confidential and will not bE~ public record;
hereunder to a ACS Affiliate or AC·S A.ftlHates" 'In and (v) choice of venue for the actual hearings
the eVE:~t thelt ACS delegates any of its du1jes or 'win be in Bend. Oregon.
obligations to ACS Affiliate that expressly
assumi~S perfofrrlance of such duties or (d) AttorneYS' Fees: Costs and Ex~. In any
obligations, AGS shall no longer in any way be action or proceeding between thle parties hereto
responsible for, or lia~e rB!J8crding, such (induding any arbitration), the prevailing party will
assumHd dutiles or obligations, indudin~~, 'Nithouf be entitled to recov€~r its reasonable attorneys'
fees and other reasonable costs and expenses
limitation. theirr performance. Subsequent to such
incurred, in addition to any other relief to which it
a dele<Jation, AB shaflloolk only to such assumling may be entitled.
ACS AffiliatE~ and such AGS Affiliate shall be tile'
sale parly rl€~sponsible for, or liable regclrding, (e) Severability and Waiver. (f any provision of
such assum!E~d duties or obligations, indudinlg I this Completion Agreement is held to be invalid
without Jirnitafjon, their Performance. In the event or unenforceable by a court of competent
of any such deteiJation of duties h.ereunder to an jurisdiction, then th€! remaining provisions will
nev·erthefess renlain iin fun force and effect if the
ACS Affiliate, SU(~l ACS Affiliate will a~5o be:
fundamental PUrpoSt3 of the oontract is not
entitled to ass1~ the rights and bE~nefits accrulingi materially impacted, and the parties WIll negotiate
to ACS uJnd€~ this Comp1etion Agreement in good faith a subs1titute valid and enforceable
provision which moslt nearfy effE~cts the parties'
This COITlpletiion l\!~reeme!nt is not assignable Of' intent in entering into this Completion Agreement
transferable by AS 'Nfthout the prior written Neither party's failure to exercise any of its rights
consent of A.CS. hereunder shan constitute or be dE~med a waiver
or forfeiture of any such rights.
Section ·I~~. Q_TI:ifILPROVISION~~
(f) late Payments. An customE~r payments are
due when invoiced. Twenty days after the
(a) !!~Er~_._!:&.9~L Couns~J. AGS stronglly invoice date, aU unpaid invoices are past due and
recomrnends that AS have this ()onlpletion subject to an 18°k annual simple interest charge.
Agreernent re"ie\lVca-d by Ilegal counsel before AB If customer payments go past due 60 days, EA
executes it, parbrCt..Ifany 9iven thE~ fact that this can stop progress, withhold mat~~ria's and parts;
Completion Agreement limits and/or eliminatE~s and allocate company resources to other
various imlPor1anft rfrghts that AB rnight otherwise: customer projects. EA. at its sofe option may ship
enjoy vis-a-vis ACS and the ACS Affiliates. and store an incomplete aircraft at a srte other
than Epic. Cost of transport and storage will be
(b) Jnd:e~fl(~n.Lg()ntradors.The relationship of the sole responsibifity of AB.
the parties under this C()mpletion AgrE~eJnent is
that of independE~nt contractors and nE~ither party (g) Buy-Back. If customer fails to make
is an eimploYE~1 aglent, partner or joint venturer of payments beyond 60 days past the invoice due
the other. date or stops worK ()n aircraft, EA at its option
can buy back the aircraft at 500/0 of the payment
(e) QQyemirLQ.. la~[. This Completion J~greemen1: history.
shaH be govE~med by and constrlJed under ttle
laws of the S1:Clte of Oregon. The parties cc)nsent (h) Entire Agreement. This document and its
to the exclusive Jurisdiction of the statE~ and attachments represent the entire agreement
Federal courts in Deschutes County. Oregon. between the parties as to the n1,atters set forth
Either party, acting in good fahth. rnay at its herein and supersEK:1e aU pnor discussions,
respectivl9 sdle dirscretion requeslt arbitration as a representations or understandrrngs between
method of dispute ne5oJution rather than lrogation. them, except for prior or contemporaneous
If eithE:~r party nequests arbitration, then upon agreements specifically reference·d herein. The
~
/// Confidential: ACS LLC
Custom~ Initials ~ Page: 5 of8 AIR Initials
/ Copyright Ig:) 2006 AIR LLC. All rights reserved..
R<~ise:d 04/04108
Case 3:09-cv-00628-AC Document 13-5 Filed 07/10/2009 Page 5 of 9
Amateur-BuiH: aircraft like tile EPIC, including Ull~ have a need to know and are under similar
confidentiality obligations), or utllirze in any way
risks identffil~d above. TO THE GREATEST
that is harmful to ACS's business, any
EXTENT i\LLOWED BY P"PPLICABLE LA"V, A13 Confidential Infonnation, whether 'written, oral, or
HEREBY V'IJ~IVES AND RELEASES AGS, ACS visual which AS may obtain from ACS, or
AFFILIATES AND ACS ()FFICERS, MEMBEHS otherwise discover in the perfonnance of this
AND EMPLC)YEES FROM EVEH'( KIND AND GOITIpJetion AgreemE~nt. Wrthout limiting the
TYPE OF CLAIM, DAMAGE AND INJURY generalfty above, AB shaH ma;intain all such
RESULTING FRC)~II OR ARISING OUT OF THE Confidential Information in confidence using no
less than a reasonable degree of care. AS shall
DESIGN, CONSTRUCTlON, ~AAINTEN,ANCEOH
take reasonable stE~PS to ensure that no
OPERP~TIOiN OF AS'S EPIC. TO n-flE
unauthorized person or entity has access to
GREATEST E:)CTENT ALUDWED BY Confidential Information, and that aft authorized
APPLICJ~IBLE LAVV, AS SHALL IINDEMNIFY, persons having access to Confidential
DEFEND AND HC)LD AGS, ACS AFFILIATES Information refrain from any unauthorized
AND ACS OFFICERS, MEF\~BERS AND disclosure.
EMPLC)YEES HAlRMLESS AGi\I!NST EVEHY
KIND l\ND TYPE OF GLA1M, DAMAGE AND Section 94 GOYERNMENTAL COMPLIANCE
INJURY AGAINST ACS RESULT11~IG FROJ'v1 OH
ARISING ()UT OF THE DESIGN, ACS shaH furnish to AS any information
CONSTRUCTION OR MAINTEN.t\.NCE OF AB'S possessed by ACS and required to comply with
EPIC OR l\B'S OWNEHSHIP THEHEOF 1the requirements of any governrnental agency
iincJuding, without limitation, obtaining an
INCLUDiNG CILAJMS BASED ON THE
Experimental Certificate from the FM.
NEGLIGENCE OF ACS, ACS AFFILIATES AND
ACS OFFICEHS, MEMBERS AII~JD
Section 10. REPRESENTATIONS AND'NARRANTIES
El\~PLC}YEES. TI1E~ assul'"nption of risk, release
and indemnirty contained in this Section 7 are
(a) ACS MAKES NC) REPRESENTATION OR
material factors in determinin~~ the Contract Pricla.
'WARRANTY AS TO THE COMPLETION
If these le~gal protections for ACS Wiere CONSTRUCTION PROCESS OR WITH
substannany reduced, thB Contract Price RESPECT TO AB'S EPIC. ACS DISCLAIMS
inevitably would be substantiailly increased. .AND EXCLUDES ALL WARRANT1ES OR
AGREEMENTS, EXPRESS, IMPLIED!
Section 8. .QQ~.ill~:NTIAL INFORMAT1Q.~L STATUTORY OR 'OTHERWISE! WHETHER
CONTAINED IN AI\lY PROVISION OF THIS
COMPLETION AGREEMENT OR ARISING
(a) Confid~.!1tial lnformation. k3 used in 1his FROM COMMUNICATION OF ANY KIND WITH
Section 8, the t€~ml "'Confidentia,1 Infonnati4:>n"
AB, AND ACS SPECilFICALLY DISCLAIMS ANY
shall rnean: (i) all information of ACS to be IMPLIED WARRPNrY OR CONDITION OF
consid(~rEKJ confIdential, and rnarkE~d or disclosE~d
MERCHANTABILITY OR FITNESS FOR A
(in wmjng or verbally) as "c:onfidEmtia!'" plior to PARTICULAR PUHPOSE, .I\CTUAL OR
disclosure to AB or within a reasonable tirne IMPUTED, OR ANY IMPLIED WARRANTY
thereaiter; and (ii) aU infonTlation or data ARISING FROM COURSE OF PERFORMANCE
concerning or re~ted to the EPIC Ailfra~le KIT, OR DEALING OR USAGE OF TRADE. NO
the EPIC or ACS' business operations (inctuding EMPLOYEE OR AGENT CtF ACS IS
sales cost's, profits, priCing methods, AUTHORIZED TO MAKE ANY
docum'lentation, procedures, organizations, REPRESENTATIONS OR WARRJWTtES TO AS
employ"e€! lists, and processes).
ON BEHALF OF ACS OR ACS PIFFJLlATES. TO
THE EXTENT LEGALLY PRACTICABLE, ACS
(b) Ex;eluSlo!J§..:.. Notwithstandrng Clny provision ito
SHALL USE REASONABLE COMMERCIAL
the contrary, the provisions of this Section B shall
EFFORTS TO CAUSE REPRESENTATIONS
not appty to any information that 0) is rightfully
AND WARRANTIES OF MANUFACTURERS
known to AB prior to disdosure; Oi) is rightfully
AND SUPPLIERS OF fTE~~S ON THE
obtarned by AS form a third party without any
COMPLETlON LIST TO BE TRANSFERRED TO
obligation of confu:li~ntiaHy: (iii) is ITlade available
AB OR THEIR BENEFITS BE MADE
by ACS to the public without restJictions; (N) is
AVAILABLE TO AB.
independen~~r developed by AS without reference
to any Confidentia,1 Infomlation of ACS;; or (v) is
(b) AS acknowfedges that all performance data
disclosed by AS wiith the prior written approval of
presented in EPiC brochures or communicated to
ACS.
AS via any means are estimates. The actual
performance of AB's EPIC will vary due to any
(c) Noqdisdc2sure. Without ACS' express \mtten
number of factors induding, but not limited to,
In+/1/
consent, AB shall not disdose to any person or
AB's ~ction of options, AS's irrlplementation of
entity (other than J\.8's agents or Bliapk)yees who
are not to be construed in any way as tE~rms or be HxtremeJy concerned that aU EPIC aircraft are
used to interpret thE~ provisions of this Completion built to the highest standards ancl does not wish
Agreemlent In,is Completion A£weennent miay any EPIC to be completed by builders who are
onl~V be nrloc:iniled by written arnendrnent signed by not ACS Affiliates. Thus, AS acknowledges that,
an authorized representative of each party. if for any reason this contract is not
(i) COl![~~rn~rts. This Completion AgreemE~nt EPIC to AS, ACS reserves the sole right to re
may bEl signE.~·d in counterparts. A. fax acquire the EPIC Airframe Kit and all equipment
transmission ofa signature p;a'ge willi be <3nd ACS work product incorporatE~d therein. If the
considered an original Stgnature pagEL J\t the tennination is due to AS's dedskln not to proceed
request of al party, a palrty wiH confinn c:l fax 'Nith completion of AS's EPIC, ACS' re
transmitted sig nature page by delivering an acquisition price to AB that will be! 1/2 the sum of
original s~gnalture page to Jthe reqUlestin~~ party. payments made by AB to both Epic Air and ACS.
IN Wrn'JESS v\ll-iEREOF, the PClrties he~ret() havE~ entlered into this Completion Assisfance Agreement as of
theday ()ncl yeCJr first ~rritten. By si~3ninH bE~I()w J~B acknowledges that it has read, understood and agr~~s
to comlpty vvi1h the statE~menfs, specificcrtions, wCJiver!), terms and conditions of this Completion Assistance
Agreerne:nt. This Con1ple~tion Assistance Agreement win
become binding on the parties only upon
acceptance by t~(:S as evidencE~d by' a signoture <of ern authorized representative bek>,w.
F~"/~~~--- By: -
. Da1e:~1'g(~~
Nome:
Consen1' of Spouse, if applicabJE~::
Title: . _
Date:
Date: _. _
~
m u'ilder
~'--
( Dale
.10 1aU7,2c~#
customerIniti~
/II-;Y---
Confidential: ACS LLC
Page 60[8
Copyright ~d 2006 AIR LLC. All rights reserved.
Revised ()4104108
AIR Initials
Case 3:09-cv-00628-AC Document 13-5 Filed 07/10/2009 Page 7 of 9
r'~
e:.;r-:- ~u,~
Purch~~~l~;c~,;,
A.. 6th Invoice of $"130,,000 upon A~CS' commencenlent and two months after
airframe production begins.
B.. Jth Invoice of S130" ()()() three fnonths after airframe production begi ns.
c. 8th Invoice of S~130,,0<)() four rnonths after airframe production begins.
Df. 9th Involce of S"130 J,(X)0 fiv42 nllonths after airframe production begins
E.. '10th Invoice of S130,OOO six nl0nths after airframe production begins.
Invoices will. see additional a.mounts as options are slelected. "The attached
cash flow modE~l indicates how options will be includ~d in th€~ monthly
invoices.
*-nllS nrlonthly lXkyment schE~ute does not indicate aircraft delivery date.
Payrnents for additiional airframe andl avionics options as required by ACS may be invoiced at any time
upon selection and approval. AU payments are to be pajd prior to first flight or receipt of amateur
aiinN'orthiness. Payrnents are due promptly upon receipt of each Invoice Date pE~r section 12, subsection
(f) and (g) of this agreetTlent.
Fiinal payment of any renlaining a,nounts due ul)<)n acceptance of AB's flying EPIC.
All taxes, duties, fees and imposts will be due upon invoice by AC5.
NOt:E~: ··This completion process does not include construction requirennents covered by the FAR's, which
are the responsibility of AB.
/~
Customer Initials Page 7 of8 AIR Initials
C~YJright: (0 2006 AIR .LLC_ An rights reserved.
Revised 04/04/08
Case 3:09-cv-00628-AC Document 13-5 Filed 07/10/2009 Page 8 of 9
(='
C~j~7/;~/
IJ'-" ..•' 9~_,..::..,..
Cornpl,etion List
Note: EA may change, add or delete any parts or conlponents from this list as specifications or
requirernents Cha~.
~}e.
~
~ Confiderltial: ACS LLC
Customer Initials _ Page 8 of 8 AIR Initials
1. Tble following is hereb:y added at the end of the first paragraph of Section 11:
"In the event that and EA Affiliate to ~fl)j_ch .EPl has assigned its rights in this Agreement
shall def:ault 'under this Agree~m,ent alld SlLCh default shall not be cured, Ej\ shall
nevertheless be liable for such EA. Affiliate's obligations und-er this AgreeJment."
2. TIle following is h.ereb:V added at the end of the seconci paragraph of Section
11: "Such consent shall not be unreas~nablyv.;ithheld or delayed." $)
Utk' Mhc.e$ ~
3. I~i\ agrees to send alll~~~s UIJlder this Agreemt~nt to Purchaser by Certified
Mail.
4-. III. the event that either pa~{ shall irlstitute arbitration or litigation against the
other, any penalties assessed ~lnder this A~greenlent, including, without linJitatioll, those
assessed under subsections 00 and (g) of Section 12, will be tolled until true termination of
the arbitration or litigation.
5. Section 12(g) shall apply 0111:y to failure to make paYInents be)fOnd ninety (90)
days.
f'/ 4/
By: B:v: #4"v~=L1~ ~~
T'itle: /"
v