(e) at Kraft`s request, an aircraft safety cover with a certified commercial carrier or other supplier operating in accordance with the FARs and is acceptable to the manager and the force when the aircraft is not available for force due to scheduled or unscheduled maintenance. The administrator provides Kraft, upon request, with a copy of its list of acceptable suppliers; (a) Kraft pays the trustee, by intra-company transfer, the monthly administration fee on or before the third Wednesday of each month for the duration of this monthly period. 7.1 Changes. The administrator does not have the right to change, modify or improve the aircraft, with the exception of those necessary to obtain and maintain FAA certification, to maintain the aircraft in accordance with applicable conditions or to ensure that the aircraft complies with the operator`s criteria and guidelines for aircraft operated by the manager and operated by the aircraft, including the aircraft modifications required to ensure that the aircraft is substantially similar to the aircraft piloted by the aircraft crew for the aircraft, without Prior written permission from Kraft. All changes, modifications, additions and improvements are transferred to Kraft`s property and are subject to the provisions of this Agreement. Once selected, the management company will present its standard management agreement (“MA”). In general, the AD will indicate how the aircraft and registrations must be kept, when the owner must authorize maintenance work, service charges, insurance requirements, and whether the owner chooses to authorize the management company to charter the aircraft. I am fortunate to have the opportunity to work with a number of large management companies that have invested time and money in creating good MAs. Occasionally, however, I am asked to check a Mr.M.
for a company I have never worked with, and I am sometimes shocked by what I find. Here is a list of some of the most important points they need to focus on during the REVIEW of the MA: a) Kraft pays the director a monthly administration fee to reimburse the manager a rakeable portion of the annual fixed expenses related to the performance of the executive`s obligations and obligations under this agreement. The first estimate of fixed costs and monthly administration fees are exposed to Schedule C. Fixed expenses described in Figure C include, among other things, overhead, ancillary benefits and other salary costs for aircrew, maintenance and other administrative officers. All fixed expenses related to revenue (costs shown in Figure C) include a 5% increase. c) At the end of each semester during the duration of the agreement, the administrator will verify the fixed costs actually incurred by the administrator in the last six months (cumulative “real costs”). In the event that the manager finds that the actual costs differ by more than 2% from the total fixed cost set in Schedule C for this period, the kraft manager will submit documentation relating to these actual costs and the parties will adjust the monthly administration fees accordingly, retroactively or prospectively.