THEIR
DUTIES; ACHIEVING SCHEDULING OF FLIGHTS AND FLIGHT PERSONNEL, FLIGHT FOLLOWING
AND COMMUNICATION; PERFORMING ROUTINE SCHEDULED AND UNSCHEDULED MAINTENANCE TO
THE AIRCRAFT; AND ASSISTING KRAFT IN THE PLANNING AND SUPPORT OF KRAFT'S FLIGHT
OPERATION;
(D)
ADVISE, ASSIST AND COOPERATE WITH KRAFT IN
ESTABLISHING THE ANNUAL BUDGET ("ORIGINAL BUDGET" OR "OB") AND SEMI-ANNUAL
BUDGET UPDATE ("SECOND REVISED FORECAST" OR "SRF") FOR EACH YEAR DURING THE TERM
FOR FIXED AND VARIABLE EXPENSES RESPECTING THE AIRCRAFT, THE HANGAR FACILITY AND
THE AIRPORT LEASED PREMISES (INCLUDING THE PERFORMANCE OF MANAGER'S
RESPONSIBILITIES HEREUNDER).
MANAGER SHALL ALSO ASSIST KRAFT IN THE PROCESS OF
TRANSITIONING TO KRAFT THE DIRECT PAYMENT BY KRAFT OF ALL SUCH FIXED AND
VARIABLE EXPENSES (EXCEPT FOR EMPLOYEE COSTS AND INSURANCE EXPENSES WHICH SHALL
CONTINUE TO BE PAID BY MANAGER AND SUBSEQUENTLY BILLED TO KRAFT, AS PROVIDED IN
ARTICLES 3 AND 5 OF THIS AGREEMENT);
(E)
AT KRAFT'S REQUEST, ARRANGE FOR BACKUP
AIRCRAFT COVERAGE WITH A COMMERCIAL CERTIFICATED AIR CARRIER OR OTHER PROVIDER
OPERATING IN ACCORDANCE WITH FARS AND ACCEPTABLE TO MANAGER AND KRAFT WHEN THE
AIRCRAFT IS UNAVAILABLE FOR KRAFT'S USE DUE TO SCHEDULED OR UNSCHEDULED
MAINTENANCE.
MANAGER SHALL PROVIDE KRAFT WITH A COPY OF ITS LIST OF ACCEPTABLE
PROVIDERS UPON REQUEST;
(F)
ASSIST KRAFT IN OBTAINING AND MAINTAINING
SUCH INSURANCE COVERING THE AIRCRAFT AND ITS OPERATION AS FURTHER DESCRIBED IN
ARTICLE 5.1 BELOW;
(G)
PROVIDE SUCH PROOF OF INSURANCE AS REQUIRED
OF MANAGER PURSUANT TO ARTICLE 5.1(G) BELOW; AND
4
(H)
ARRANGE FOR INITIAL AND RECURRENT TRAINING
FOR EACH FLIGHT CREW MEMBER, MAINTENANCE TECHNICIAN AND DISPATCHER.
ARTICLE THREE
KRAFT'S OBLIGATIONS
3.1
OPERATIONAL CONTROL AND POSSESSION, COMMAND
AND CONTROL.
IT IS HEREBY AGREED AND ACKNOWLEDGED BETWEEN KRAFT AND MANAGER
THAT DURING ALL PHASES OF FLIGHTS CONDUCTED UNDER THIS AGREEMENT, KRAFT SHALL
RETAIN AND HAVE (I) OPERATIONAL CONTROL OF THE AIRCRAFT, AND (II) POSSESSION,
COMMAND AND CONTROL OF THE AIRCRAFT.
IN ADDITION, KRAFT FURTHER ACKNOWLEDGES
OPERATIONAL CONTROL BY EXERCISING KRAFT'S AUTHORITY OVER INITIATING, CONDUCTING
AND TERMINATING EACH FLIGHT.
KRAFT CHOOSES NOT TO HIRE ITS OWN PILOTS BUT
CONTRACT FOR THE PILOT SERVICES OF MANAGER. ALTHOUGH THE FLIGHT CREW IS SUPPLIED
BY MANAGER FOR KRAFT'S FLIGHTS, THE FLIGHT CREW IS UNDER THE EXCLUSIVE COMMAND
AND CONTROL OF KRAFT IN ALL PHASES OF THOSE FLIGHTS AND AT ALL TIMES. KRAFT
ACKNOWLEDGES THAT ALL OF KRAFT'S FLIGHTS ARE CLASSIFIED AS "NONCOMMERCIAL" FOR
FEDERAL AVIATION REGULATORY PURPOSES AND, FOR FEDERAL EXCISE TAX PURPOSES, ARE
SUBJECT TO THE APPROPRIATE FEDERAL TAX ON AVIATION FUELS. IN EXERCISING
OPERATIONAL CONTROL, KRAFT SHALL COMPLY WITH THE FARS, INSURANCE REQUIREMENTS
AND ANY PERTINENT REGULATIONS OF THE UNITED STATES OR ANY COUNTRY WHERE THE
AIRCRAFT MAY BE OPERATED FROM TIME TO TIME.
KRAFT SHALL OPERATE THE AIRCRAFT IN
ACCORDANCE WITH FAR PART 91.
3.2
ADVANCE NOTIFICATION. KRAFT SHALL PROVIDE
MANAGER WITH INFORMATION REGARDING PROPOSED FLIGHT SCHEDULES AS FAR IN ADVANCE
OF ANY GIVEN FLIGHT AS POSSIBLE.
INFORMATION THAT MUST BE PROVIDED TO MANAGER
SHALL BE IN A FORMAT MUTUALLY ACCEPTABLE TO THE PARTIES AND SHALL INCLUDE THE
FOLLOWING INFORMATION FOR EACH PROPOSED