SERVICE AGREEMENTS
General Structures & Fees
SERVICE AGREEMENT
DISCLAIMER
TERMS & CONDITIONS
Effective: 01-MAR-2023
DISCLAIMER
TERMS & CONDITIONS,
effective since 01-MAR-2023
1. SERVICE: The Contractor shall provide aviation consulting services in accordance with the terms of this Agreement and the detailed items specified above.
2. CONSULTANTS: The Contractor shall select and engage one or more consultants, auditors, aviators, pilots, Part-145, Part-66, CAMO, operational, FBO, aviation authority personnel, inspectors, or other expert personnel, all of whom shall be referred to as 'Consultants' hereafter. All Consultants, employees, and service providers of the Contractor shall be subject to professional discretion.
3. REPORTING: If specified in this Agreement, the Contractor shall provide the Client with a written statement as a result of the aviation consulting services rendered.
4. CLIENT OBLIGATIONS: The Client shall ensure that, if applicable, the Contractor is granted access to the operations and maintenance, Continuing Airworthiness Organizations (Part-145/CAMO), aircraft, hangars, offices, shops, and/or operational premises, as well as the aircraft engines and APU, records, logs, documents, and manuals, and/or personnel for the purpose of conducting the consulting services. The Operator shall organize and ensure access to the aircraft located in fenced and guarded facilities. The Operator shall also permit audio, video, or photo-shooting on the tarmac, in the hangar facilities, offices, aircraft, its engines and interiors, and the scanning, photocopying, or photographing of records, manuals, and other logs, records, or documentation, as applicable and selected by the Consultant to fulfill their task.
5. CONFIDENTIALITY: The distribution of aircraft expertise and appraisals, in whole or in part, is strictly prohibited without explicit consent and may result in additional fees. Refer to and review the explicitly contained, highlighted paragraph enclosed below this Agreement for more details.
6. AVIATION CONSULTING COSTS & FEES
6.1. HOURLY COSTS: The Contractor shall invoice a time unit of one working hour, which equates to 60 minutes, at a rate of CHF 350.- per hour, unless otherwise specified in this Agreement for working hour(s)/day(s) or a lump-sum fee. The parties shall agree upon remuneration based on the consultants' expenditure of time, rounded up to the nearest 15-minute interval, at a rate of CHF 350.- per hour, not exceeding CHF 2,800.- per working day per consultant, except in the case of Expert Witness Services, which may vary. For activities conducted outside the consultant's office, the working time shall begin upon leaving the office and end upon returning to the office (portal-to-portal).
6.2. COST OF DESKTOP APPRAISAL: The cost of a 1st Valuation is a flat fee of CHF 2,800.-. For subsequent valuations of the same aircraft, model, and serial number, the flat fee shall be CHF 2,100.- per valuation, at the Client's request. Desktop fees may include current or past Fair Market Value (FMV), Orderly Liquidation Value (OLV), based on current component time use, and, if requested, a depreciation forecast or another premise upon client requirements.
6.3. COST OF ON-SITE ASSET AIRCRAFT PHYSICAL & RECORD SURVEY: The cost of an on-site survey is a flat fee of CHF 2,800.- per aircraft unit.
6.4. COST OF AIRCRAFT APPRAISAL AFTER PHYSICAL EXAMINATION: The cost of an aircraft appraisal after a physical examination is a flat fee of CHF 2,800.-.
6.5. COST OF RUSH FEE: Valuations requiring completion in less than 7 calendar days for a single Desktop Appraisal, or less than 14 calendar days for a single Onsite Survey may be subject to a 25% surcharge, depending on current workload and availability.
6.6. COST OF EXPERT WITNESS SERVICES: The cost of out-of-office litigation support is CHF 660.- per hour, capped at CHF 3,960.- per day. The cost of in-office litigation support is CHF 480.- per hour, capped at CHF 2,880.- per day. The minimum retainer fee is CHF 2,880.-, or as defined and agreed upon with the court regarding advances and fees, covered by defined and official restricted legal cost and fees. Expert Witness Services may include on-site examination of the aircraft, photography, review of related records, depositions, literature searches, research, analysis, consultation time, preparation for deposition and trial testimony, oral or written reports, preparation of exhibits and demonstrative evidence, all travel time (billed portal-to-portal), deposition and trial testimony, waiting time for deposition and trial testimony, watching or assisting during the testimony of others, and other related tasks requested by the Client. Any time related to the case or project that is beyond the scope of an initial telephone interview of the consultant may be considered billable time at the Contractor's published rates. All fees for out-of-office work shall be billed portal-to-portal.
6.7. COST OF WRITING: The cost of writing shall be a flat fee of CHF 2,100.- per report ('expertise').
6.8. COST OF TRAVEL: The cost of travel shall be assessed on a per-person, per-travel-day basis, and shall include a lump sum equivalent to two working hours, as applicable to the particular circumstances. Weekend days shall include Swiss public holidays or Swiss national holidays, and work or travel on these days shall be charged with a factor of 1.6 on the daily working-day cost or the travel-day cost, as appropriate. All fees for out-of-office work shall be billed portal-to-portal. Other expenses, such as postage, paper, printing, telecommunication, accommodation, rental cars, ferry tickets, business-class air tickets, first-class train travel costs, expenses for visas, and other travel costs, shall be charged after provision of a receipt, plus the out-of-pocket expenses, as a per-diem charge of CHF 120.- per day per consultant. For each kilometer driven by a company car, CHF 1.20 shall be charged, or the cost of rental car shall be invoiced, as applicable. Travel costs shall be estimated in the agreement, if indicated. The actual cost shall be charged on a one-to-one basis, providing actual receipts to the Client.
7. EXCLUSIONS AND COSTS NOT COVERED BY THIS AGREEMENT:This agreement does not cover external work or services such as maintenance, labor, or spare parts for airworthiness. It also doesn't cover costs associated with aircraft record documentation or continuing aircraft maintenance organizations. Other exclusions include flight crew or cabin crew costs, navigation charts, on-flight-crew supplies, aircraft tickets, leases or finance fees, aircraft maintenance personnel, fuel tests, insurance, FBO or hangar fees, landing fees, travel expenses, and contracted work. These costs may be supplied and charged separately by other parties. Invoicing will be performed on a 'one-to-one-basis' with collected supplier invoices. An administration cost surcharge of up to 5% may apply based on individual quotation.
8. INVOICE: The invoice is deemed accepted if the client does not object within 7 (seven) calendar days after the date of the invoice. All amounts stated in this agreement are exclusive of value-added tax (VAT) if applicable. The amount stated in the invoice is due on the due date of the invoice.
9. TERMINATION: This agreement is valid for an indefinite period, and either the client or contractor may terminate this agreement at any time. In such a case, the client shall pay only for the services agreed upon or the flat fee.
10. SEVERABILITY: If a provision of this agreement is or becomes legally invalid, or if there is any gap that needs to be filled, the validity of the remainder of the agreement shall not be affected. Invalid provisions shall be replaced by mutual consent with provisions that come as close as possible to the intended result of the invalid provision. In the event of gaps, such provisions shall come into force by mutual consent, which comes as close as possible to the intended result of the agreement, if the matter had been considered in advance. Any changes or amendments to this agreement must be in writing to become effective. This agreement shall not be modified or amended except by instrument in writing signed by authorized representatives of the parties. All notices and requests hereunder shall be in writing and shall be sent to the addresses set forth above or to such other address as may be designated in writing.
11. FORCE MAJEURE: If performance by either party is prevented, restricted, or delayed due to any cause beyond the reasonable control of the party due to perform, including acts of God, compliance in good faith with any applicable foreign or domestic governmental regulation or order (even if later proved to be invalid), fires, war, riots, labor disputes such as strikes or lockouts, sabotage, unusually severe weather, or any other cause beyond the reasonable control of such party, the party so affected shall be excused from performance to the extent of such prevention, restriction, or delay. No party shall have any liability to any other party for delay or non-delivery in the performance of its obligations under this agreement due to force majeure.
12. JURISDICTION: Any legal disputes arising from or in connection with this agreement shall be subject to the exclusive jurisdiction of the courts of Hanover, Germany. This agreement shall be governed by and construed in accordance with the laws of Germany, without regard to its conflict of law provisions.
CONFIDENTIALITY
VERTRAULICHKEIT Die Weitergabe von Luftfahrt-Expertisen und Bewertungen, ganz oder teilweise, ist ohne ausdrückliche Zustimmung untersagt und kann Gebühren verursachen. Lesen Sie für weitere Informationen den explizit enthaltenen, hervorgehobenen Absatz, der dieser Vereinbarung beiliegt.
CONFIDENTIALITY: The distribution, whether in whole or in part, of any aircraft expertise or appraisal is strictly prohibited without explicit consent and may result in fees being incurred. Please refer to and review the explicitly highlighted paragraph included below this agreement for additional information.
DISSEMINATION OF AIRCRAFT KNOWLEDGE
VERTEILUNG VON FACHWISSEN ÜBER LUFTFAHRZEUGE – VERTRAULICHKEIT
EINE LUFTFAHRTEXPERTISE- UND -GUTACHTEN WIRD AUSSCHLIESSLICH FÜR DEN INTERNEN GEBRAUCH INNERHALB DES KUNDEN UND SEINER VERBUNDENEN UNTERNEHMEN ERSTELLT.
KEIN TEIL EINER LUFTFAHRT-EXPERTISE UND/ODER -GUTACHTEN, WEDER GANZ NOCH TEILWEISE, DARF VERÄNDERT, GESCHWÄRZT, KOPIERT ODER IN PAPIERFORM, ELEKTRONISCH ODER AUF ANDERE WEISE VERBREITET WERDEN. DIESE DARF AUCH NICHT AN ODER DURCH DRITTE, ZUM BEISPIEL FINANZIERENDE BANKEN ODER VERSICHERUNGEN, RECHTS- ODER STEUERBERATER, AOC/NCC-LUFTFAHRZEUGBETREIBER ODER DEREN PILOTEN, MRO-LUFTFAHRZEUGINSTANDHALTUNGSBETRIEBE ODER DEREN TECHNIKER, FLUGZEUGVERKÄUFER ODER FLUGZEUGKÄUFER ODER DEREN MAKLER ODER ANDERE DRITTE VERWENDET ODER WEITERGEGEBEN WERDEN, ES SEI DENN, ES LIEGT EINE VORHERIGE SCHRIFTLICHE GENEHMIGUNG UND BILLIGUNG DURCH DEN AUTOR VOR.
INHALTE, DIE ALS GENEHMIGUNG ODER BILLIGUNG DES AUTORS DES MATERIALS DIESES GUTACHTENS ANGESEHEN ODER AUSGELEGT WERDEN KÖNNEN, ODER JEDE ART UND WEISE DER HANDHABUNG, VERWENDUNG ODER VERBREITUNG VON MATERIAL DIESES FLUGZEUGGUTACHTENS, WERDEN KUNDEN MIT EINER WEITERVERTEILUNGSGEBÜHR VON MINDESTENS 2.800 SCHWEIZER FRANKEN PRO BESTÄTIGTER AUSGABE IN RECHNUNG GESTELLT.
HINWEIS: DIE DOKUMENTE KÖNNEN
SCHUTZRECHTS-WASSERZEICHEN ODER INHALTE ZUM SCHUTZ VOR WEITERVERBREITUNG
ENTHALTEN. AUF WUNSCH DES KUNDEN WIRD EIN ZUSÄTZLICHES
ORIGINAL-FLUGZEUGGUTACHTEN, EINE SCHÄTZUNG ODER EIN UNTERSCHRIEBENES UND
ABGESTEMPELTES FORMULAR ZUR BESCHEINIGUNG DES FLUGZEUGWERTS
("AUTHENTICATED DEED-FORM") AUF EINER EINS-ZU-EINS-KOSTENBASIS PER
LANDPOST ZUR VERFÜGUNG GESTELLT.
DISTRIBUTION OF AIRCRAFT EXPERTISE – CONFIDENTIALITY
The distribution of any aircraft expertise and appraisal, whether in full or partial, is strictly limited to in-house use within the CLIENT and its affiliates.
Altering, redacting, copying or distributing any part of the aircraft expertise and appraisal in any form, including paper, electronic or other means, and disclosing such to third parties, such as financing banks or insurance providers, legal or tax advisers, AOC/NCC aircraft operators or pilots, MRO aircraft maintenance or CAM organizations or technicians, aircraft sellers or buyers or brokers, or any other third party, is strictly prohibited unless prior written approval or endorsement by the author has been obtained.
Any material of this aircraft expertise or any method or manner of handling, using, or distributing in any material of this aircraft expertise that may require approval or endorsement by the author will be charged to the CLIENT with a royalty fee of at least CHF 2,800 per copy.
The documents may contain copyright protection watermarks. Upon request, an additional original aircraft expertise, appraisal, or an authenticated deed-form, signed and stamped certificate of aircraft value form, will be sent to the CLIENT on a one-to-one cost basis by land-mail.
Aircraft Inquiry
General Structures & Fees
Kindly note that you will be required to acknowledge that any aircraft specification, including the Serial-number and Registration, may be disclosed after having signed a finders fee respectively consultancy agreement with me.
Once you have engaged with me, I am in the position to produce full details of all on and off-market options in question.
For orientation, a commission of 2.5% (two-point-five percent) of the sale's or purchase price will be charged generally. Factory new aircraft or long-range aircraft like, for example, a Bombardier Global Express or a Gulfstream aircraft, will also require a substantial retainer on agreement. However, fee coverage conditions are being negotiated individually, considering aircraft provisions, estimated lead time, and client requirements. Therefore, depending on the effective aircraft value and market situation, the following minimum cost is to be considered:
In general, a pre-owned light jet like a Citation will create a standard commission structure with an up-front retainer fee of 10 K-CHF and 140 K-CHF at closing. Whereas a pre-owned midsize business jet like a Challenger would be creating a retainer fee of a minimum of 25 K-CHF, requiring, for example, 225 K-CHF at closing.
If required and in addition to allocating aircraft, surveying, negotiating, and documentation services may be performed. As covered and outlined in the “Expert Service Agreement Conditions” above.
Furthermore, the export, delivery, and closing will be executed in your best interests and will find my paramount priority.
Link to: Company Commercial Register Entries
Address
Schlösslipark 2
Bottighofen (TG)
8598
Switzerland