Are you going *in* on a bull partnership? Getting a written bull partnership agreement is a way to help ensure that everyone is on the same page. Here are some thoughts for a bull partnership agreement.
1. Who are the original business partners and ownership shares?
2. Will unanimous or majority consent be required if a partner decides to sell his/her management interest?
3. If management interest is sold, will the original partners retain right to semen?
4. How much can partnership units be sold for?
5. How will expenses be divided among the partners?
6. How will profits from semen sales or any other income be divided among the partners?
7. Who is charged with the duty of accounting for the bull partnership?
8. Will cloning rights be reserved for certain partners?
9. Will each of the partners be given a certain number of semen units?
10. Will the producer of the bull be allowed to sell full siblings to the bull or will the partnership own any full siblings and/or progeny from the same cow?
11. Is the partnership contingent on DNA marker tests or show ring success?
12. How will management decisions be decided?
13. Who will be taking on what responsibilities? For example, will one partner be in charge of advertising and marketing?
14. Where will the bull be kept? On a partner’s farm? At a bull stud?
15. Where will semen be sold? Will a certain farm in another country have exclusive semen rights for X number of years?
The list can go on and on depending on your particular transaction. If you are considering a bull partnership, memorialize as many details in the agreement in writing as possible. Rincker Law, PLLC does bull partnership agreements on a flat fee basis.