Main Business Points
Pursuant to Federal Aviation Regulations, the program is governed by certain operative agreements. The OPERATIVE AGREEMENTS are the Purchase Agreement, Owner’s Agreement, Management Agreement and Master Interchange Agreement.
PURCHASE AGREEMENT SUMMARY
- The Purchase Agreement provides for Operative Agreements to be tied together. Ownership must be kept subject to the Operative Agreements, including the Management Agreement and the Master Interchange Agreement. EXECUTIVE HELISHARES will ensure that the aircraft is in perfect working order, provide and maintain a valid Certificate of Airworthiness, provide adequate hull and liability insurance and inspect and maintain the aircraft in compliance with all regulations and manufacturer's requirements; and will convey title to the owner clear of all encumbrances.
- Ownership is held as Tenants in Common. The Ownership Agreement establishes that all owners represent an undivided interest and are subject to the terms and conditions of the Operative Agreements. Each owner is entitled to their proportionate shares of depreciation, expenses, tax benefits, etc. All owners agree that they will limit their usage to the number of hours they are entitled to and that that their management agreements will govern the usage of the aircraft. Owners agree that they will not use the Aircraft for air commerce nor for any use prohibited by the insurance coverage nor for any illegal purpose.
- Management term is for 3 years (unless Owner sells or transfers their interest prior to this).
- EHS will be responsible for inspecting, maintaining, servicing, repairing, flight testing the aircraft, all associated records and logbooks, in compliance with FAA, Manufacturer and other approved maintenance and preventative program guidelines.
- EHS will be responsible for providing professionally trained and qualified pilots for each flight.
- EHS is responsible for purchasing adequate Hull insurance and liability.
- Owner is responsible for their proportionate share of any taxes including property taxes, charges, or similar assessments.
- Owners shall be responsible for paying for the cost of complying with any new airworthiness directives, manufacture alert/mandatory service bulletins or new FAA requirements issued after the date of this agreement. Manager will make all reasonable efforts to pursue reimbursement.
- Owner is entitled to use the aircraft for the number of Owner Occupied Hours + Excess Hours Available + any unused Owner Occupied hours from prior years. These hours will be charged the current hourly rate. Any hours used beyond these hours will be charged at the Supplemental Hourly Rate.
- Excess Hours Available is defined as hours borrowed against the next year’s allocated hours. This feature is designed to give Owner the flexibility to manage their hours without triggering the Supplemental Hourly Charge. Any unused hours from prior years can be used in the current period.
- Owner is responsible for paying the hourly rate per hour, a monthly management fee per share, and any applicable taxes, landing fees, ramp fees, ground handling. The monthly management fee will be assessed in advance and the usage fees will be billed in arrears.
- Use of the aircraft will begin at the time when the aircraft takes off on and end when the aircraft lands. Flight time will be measured and rounded to the nearest .25 of an hour and will be subject to a one hour minimum per calendar day for usage, flight time begins at the owner's designated base. All flight time necessary to accomplish the owner's trip is owner's responsibility.
- EHS retains the right to use the aircraft for up to 25 hours per year for training, demo flights and promoting EHS Shares program.
- When available, the helicopter may be used for on demand charter. These proceeds will be distributed quarterly and credited to each owners account based on the proportionate interest.
- When scheduling flights, Owner will provide EHS with proposed departure point, destination, dates and times of flights (arrivals and departures), number and names of anticipated passengers, anticipated luggage, and any other pertinent information.
MASTER INTERCHANGE AGREEMENT
- Interchange Aircraft (from EHS fleet) is available on a first come and first serve basis.
- Master Interchange Agreement is in effect for 3 years subject to Owner’s simultaneous participation in the Management Agreement and Purchase Agreement with EHS.
- Owner may be provided the use of other comparable aircraft in lieu of their own.
- Simultaneous use of up to 2 aircraft from the EHS fleet is subject to approval by EHS.