THIS AGREEMENT, madeh day ofy and bet veer.
China Airompany organized under the laws of the
Republic of China (hereinafter referred to asnd Air
America,elaware corporation vith offices
Connecticuthereinafter
referred to as
9
Airamontract with the United States Government
provide flying services and desires in the Fulfillment ofto secure flying services from an additional source; and
WHEREAS, CAL is villing to provide such flying services under
subcontract to Airam; 16
NOW, THEREFORE, in consideration of the stated premises, the
mutual covenants, and the conditions herein contained the parties
hereto agree as follows:
I. SERVICES TOERFORMED
22
CAL shall, during the period set forth in Article III. hereof,
the
1. Flying services with one basically6
and two basicallyircraft,
and when requested by Airam the services of one
6 type aircraft subject to call orders
as provided in paragraph c. of this Article I.
including all necessary aircraft fuel, engine lubri-
eating oil and aircraft lubricantsupplies,
services, personnel, and ground support equipment
for the operation thereof, unless otherwise provided
hereinafter, subject only to necessary absence of
such aircraft for proper maintenance. CAL shall base
such aircraftlace or places agreed to betweenand Airam, hereinafter referred to as the "Base
. Such Base Point(s) may be changed from
time to time by agreement between CAL and Airam
expressed ir. writing. Daily maintenance inspections
are to be performed at the Base Point of such aircraft.
Aircraft repairs, maintenance, and services beyond
CAL's capability to perform at the Base Point may be
performed at other locations. The aircraft shall be
operated between points agreed to between CAL and
Airam. For the foregoing services, CAL shall be
paid pursuant to the rates set forth in Appendix
attached hereto and herebyart hereof, and
the provisions of Article IV. hereof. 6
2. Modifications to its aircraft, requested by Airam
approved by CAL, to suit then for use by Airam;
provided, that if requested by CAL, CAL shall be
reimbursed for such modification, and for restoringaircraft to prior configuration upon release of
the aircraft. However, such modified aircraft shall
not be withdrawn during the period of assignment or
call by CAL without prior approval of Airam. For
the foregoing services, CAL shall be reimbursed
pursuant to paragraph "g" of Article IV. hereof. 17
3. Parts and materials to the extent required in the
performance off this Article I. CAL shall
be reimbursed for such parts and materials as
provided in paragraph "g" of Article IV. hereof. 22
4. Upon request of Airam, CAL may, if available, provide
additional flight crew personnel for which CAL shall
be paid pursuant to the normal rates set forth in
Appendix "D* and the provisions of Article IV. hereof.
Requests by Airam for additional flight crew personnel
shall be ir. writing, requesting personnel by classifi-
cation and category, desired location of services and
period for which services are being requested. 31
CAL shall have complete authority and discretion to decide all
matters of maintenance, the adequacy of clearances, permissions
obtained, and operations insofar as the safety of the aircraft
and its personnel are concerned, in accordance with establishedand industry standards.
37
In calling for aircraft which may be furnished "on call"
pursuant to Itemf Article I. hereof, Airam, which term
shall include its authorized representative, shall issue a
call order in accordance with Appendixttached hereto
andart hereof, which shall notify CAL of the place
at which the aircraft is required and the period of time for
which such aircraft is desired. CAL shall respond by agreeing
to furnish the aircraft in accordance with the terms requested,
or will advise of non-availability of the aircraft, or advise the portions of the requested period during which the aircraft can be made available. Except in the event of non-availability CAL's response shall state the place at which the aircraft shall be made available, and such response shall be deemed an offer which offer may be accepted by Airam at any time before it is withdrawn. Acceptance in writing of such offer by Airam shall beall order for CAL to furnish the aircraft at the place of availability as stated by CAL, and for the agreed period whereupon the aircraft shall be deemed to be called hereunder; such place of availability shall be the "Point of Origin" for such aircraft.
Airam and/or its duly authorized representative, usav issue Fljght Service Operational_Qr_de.rs.in accordance with App.end.ix "C" attached, hereto and herebyart hereof, for all flights, except maintenance flights to and from Taiwan, and may issue changes Thereto at any time and from "time to tine during the life of this contract. Such orders and changes thereto, shall be in writing and signed by the authorized representative; provided that such orders may be issued orally or by other means when the exigency of any situation precludes written operational orders or changes in which event such oral orders may be confirmed in writingeasonable time after performance of the services ordered. Such orders shall authorize CAL to perform flights specified therein and may designate the routes to be flown and the points from which and to which the flight shall be made.
Upon request ofember of the aircraft crew shall sign, when requested, for all specified cargo listed oh the manifest andeceipt therefor at destination; provided, that CAL's personnel shall not be responsible for cargo content or identification.
Airam shall be responsible for the management, supervision and the provision of peculiar parts, components, equipment and supplies for onlyircraft. This shall be done at no additional cost to CAL. Airam shall furnish all such items, upon request from CAL, to the extent that such are available. It is understood the source of such items is United States Government Stores.
t
g. CAL shall have no obligation to replace any aircraft furnished
hereunder vhich are lost or destroyed or undergoing repairs
while engaged ir. performance of this contract. 4
II. PERSONNEL TO BE FURSISHED
6
CAL shall provide, within the rates per flying hour provided
forecessary maintenance and operations personnel
ormal complement of flight crew members for the
aircraft furnished
Airam shall arrange for all personnel required to load, handle
and unload cargo. CAL shall be responsible, within the rates
per flying hour provided herein, for providing qualified
personnel to supervise the placement and securing of cargo
as well as the seating of passengers. Except as otherwise
provided for herein, CAL shall determine its own requirements
for personnel to be assigned to the performance of this
contract commensurate with operational and maintenance
requirements hereunder. 21
CAL shall engage such of its facilities and equipment as
shall be necessary for the performance of this contract
except as otherwise specifically provided for in this
contract; provided, however, that Airam may loan or furnish
CAL such supplies or equipment as, in the opinion of Airam,
are required by CAL for the performance of the contract and
which are not reasonably available to CAL from other sources. 29
III. PERIOD OF PERFORMANCE
3i
The services called for under this contract shall commence on
the day first above written and continue until midnight,
5
Airam shall have the right to renew this contract for two
additional one year periods and such renewal shall be automatic
unless CAL is notified in writing) days prior to
the effective date of such renewal. However, Airam shall
have tho right to terminate this contract at any time it
shall determine the services provided for therein are no
longer required by giving notice in writing)
days prior to the effective date of such termination. 44
45
IV. CONSIDERATION AND PAYMENT
2
a. Airam shall pay CAL in accordance vith the provisions of
this Article IV. at the appropriate rates set forth in
Appendix "A" hereof for the services performed by CAL
hereunder. 7
1. As pertains to Itemf Article I. hereof, CAL shall
paid, upon submission of proper invoices orapplicable rates stipulated in Appendix "A" for
rendered and accepted, less deductions, ifprovided.
"3
As pertains to Itemf Articleereof, CAL shall
be paid, upon submission of proper invoices or vouchers,
the normal rates stipulated in Appendix "D" for services
rendered and accepted, less deductions, if any, herein
provided. CAL shall be paid the appropriate hourly rates
for each of such personnel and pro rata amounts thereof for
fractional parts of an hour flown provided that CAL shall
be paid at the rate for each such personnelinimum
ours per day. The minimumlying hours
per day shall apply to all days that each such personnel
are called for hereunder including days required in
positioning the personnel to the point of use and return
of such personnel to their regular assigned CAL station
upon release from services hereunder by Airam. In addition,
CAL shall be reimbursed for all expenses of positioning
and depositioning such personnel including, but not limited
to, transportation costs, incidental expenses, and dead
head pay. 32
Flight time, actual flying time, and flying hour is the logged
of each flight and shall be calculated as follows:
35
lock to Block" Time: From the moment the aircraft first
moves under its own power for the purpose of flight until
the moment it comes to rest at the next point of landing. 39
Airborne Time: Airborne time is the logged tine of each
flight to the nearest minute calculated from the moment
of take-off to the moment of landing. 43
In addition to the flying hour rates provided in Appendix "A"
CAL shall be paid for these personnel covered by
Appendix "D" at the hourly rates for hazardous area flying set forth inor each hour or pro rataortion of an hour of hazardous area flying. Airam shall designate in writing those personnel authorized on its behalf to execute certificates for hazardous area flight time. The hazardous flight hour rates prescribed in Appendix "D" hereto shall apply to all flight time hereunder which isazardous nature, herein defined as flight time over areas in which active combat operations are in progress or over areas controlled or occupied by unfriendly forces; provided, that the determination of whether flights or portions of flights are performed over such hazardous areas shall be by agreement between the local senior representatives cf the parties hereto based upon known conditions priorlight or pilot experienced and reported conditions subsequent to orlight; provided, further, that such determination shall be made in advance of each flight when known or subsequent thereto when unknown. The hazardous area flight time shall be certified by the aircraft commander and Airam, or its authorized representative therefor. The Flight Service Operational Order shall be used as the basis for billing for the hourly rate(s) payable for such hazardous flying.
to subparagraphelow, CAL shall be paid for
all hours flown hereunder by all aircraft furnished pursuant to Itemfxcept for maintenance flight hours, but including return of the aircraft to point of origin during the period(s) of their assignment or calland shall be paid for the minimum flight hours per calendar quarter for each fleet of basically assigned aircraft, whether or not actually flown. Such minimum flight hours shall include all hours flown hereunder except maintenance flight hours and shall be determined in accordance with theof Appendix Minimum hours shall apply from the moment the aircraft is ready to fly and is committed to use under this contract. Minimum hours shall cease to apply upon release of an aircraft from the contract or upon destruction or loss of the aircraft. Minimum hours shall not apply to6 aircraft subject to call.
to payment of minimums specified in paragraphCAL shall be paid for all hours flown asaccordance with the "Block-to-Block" definitionin Article. hereof; provided, however,total hours of "Block-to-Block" time for which CAL shall
be paid shall be linitedaximum of fifteen percent
n excess of airborne time as defined in Article.
hereof.
4
CAL shall be paid in accordance with the provisions of this
contract upon CAL presenting to Airam an original plus four copies
of CAL's invoices certified by an appropriate officer of CAL as
9
certify that the above bill is just and correct and
therefor has not been received."
Reimbursement pursuant to the provisions of Itemsndf
I. shall be subject to the
As pertains to Itemndf Article I. hereof, and
subject to paragraphf this ArticleAL shall,
upon submission of proper invoices and vouchers, be reimbursed
at cost excepting for direct skilled labor utilized tomodification and repairs to CAL aircraft for which CAL
shall beor each hour of direct skilled labor
required and expended by CAL personnel. This rate includes
reimbursement for unskilled labor, overhead and profit. 24
As pertains to Itemf Article I. hereof, CAL shall be
reimbursed for direct materials used in accordance with
the following: 28
The amounts to be reimbursed by Airam under this
paragraphhallax levy by the
Government of the Republic of China on sales (known
in TaiwanBusinesshich is composed of
a businessefense taxtamp tax). In
the absence of agreements providing exemption to the
Government therefrom, such taxes shall be considered
allowable cost and may be included in the fixed
prices for labor utilized in Taiwan and the cost
of direct materials furnished by the Contractor
hereunder. The prices for direct materials furnished
by the Contractor may also include customs duties
paid to the Government of the Republic of China and
such shall be considered as allowable cost.
For those parts and materials furnished by CAL for
in accordance with CAL's established practices,
the costs cannot be determined either by reference to paid vendor's Invoices or other means, the method of pricing shall be by utilisation of the current market price or the price set forth in the most recent available USAF Parts Catalog, whichever price is most advantageous to Airam. CAL shall segregate all ite-ns falling in the above category and so identify in the invoiceeparate line item.
iii. All of CAL's claims for reimbursement of the costs of items purchased directly for this contract must be supported by invoices which shall be subject to approval by Airam. This applies to all authorized cost reimbursable items including direct parts and materials furnished pursuant to Item 2. Claims for reimbursement of costs of items withdrawn from CAL's stock must be supported by CAL's invoices which shall be subject to approval by Airam.
iv. Procurement, delivery, and material handling expense (current landed costs) incurred by CAL to point of use shall be considered as allowable elements of cost for purpose of reimbursement under this contract. As pertains to landed costs, materials, and supplies which are used hereunder, which are transported to or enroute to the point of use on commercial fliqhts, CAL shall be reimbursed at the commercial rates for such transportation in effect at the time theis utilized.
"Direct Skilled Labor" as used herein includes that labor which can be performed only by individuals possessing the professional, specialized and/or technical skills, knowledge, and capability to accomplish inspection, adjustments, repairs, tests, and similar operations; machine shop work, welding, electroplating, and similar operations on or incident tooverhaul, and repair of aircraft or related components, accessories, or parts. "Direct Skilled Labor" includes only those skilled laborers, artisans, craftsmen, and operators together with their leadmer. and foremen, actually and directly employed in the performance of work and services as required under this contract. It does not include that labor which is performed in cleaning and polishing of aircraft, aircraft components and equipment, paint removal, assisting in heavy work, such as moving equipment or heavy components;
this paraqrapht also does not include worn anaperformed by administrative personnel, corporate officers, supply personnel, all supervisory personnel above the foreman
supply pcrauiuici an j
level, office personnel, time-keepers, watenmen, guards and
6 7
91 12
"Direct Materials" as used herein are defined as all items purchased, supplied, manufactured or fabricated with the intention of entering them into, or makingart of
aircraft. For the purposes of this contract, cleaning,
polishing components, packing and packaging
. (petroleum, oil and lubricants) andused or consumed directly on the aircraft orparts thereof, shall be considered directother materials such as office and stationery supplies,
ior?nrnpl washroom SUPPl i
8
compounds and equipment, personnel washroom supplies.
lighting supplies,hich are not (and would not be)
2 23
generally, performing menial tasks and/or miscellaneous work
ature which requires none of the technical skills,
knowledge or professions referred to in the first portion ofoaraaraoh It also does not include work and labor
.
actually used directly on the aircraft or its components, shall be considered indirect materials.
ARTICLE V. SPECIAL PROVISIONS
and/or its duly authorized representative, shallsurveillance, supervision, and operationalto assure that CAL performs the services inthe provisions of the contract, provided thatshall be commensurate with the ratedthe aircraft, reasonable professional standards, andof CAL's personnel. CAL shall haveto decide all matters in connection withinvolving safety of operation.
shall not be responsible for non-completion orany flight from original point or destination due tothe control of CAL. The flying time for flightsnot completed or are diverted due to causes beyondof CAL shall be considered as authorized flyingpayment under the terms of the contract. The Captain
Airam shall make payment hereof in United States dollarsdraft or other instrument and payable as directedin writing.
3 29
i
12
4
79
1 42
44
43
of the aircraft shall be the deciding authority on flight completion or diversion, or any other action deemed necessary in the interest of flight safety.
CAL's employees and officers of CAL, or other persons or organizations employed by CAL in the performance of work or rendition of services under this contract, shall at all times be identified as the employees, officers, or agents of CAL and shall not be considered as the employees, officers or agents of Airam.
Airam may, if it finds it to be in the best interest of the United States Government, direct CAL to remove, and CAL shall remove, any employee from assignment to perform services under this contract.
It is the understanding of Airam that CAL shall be relieved of the necessity to pay landing fees, airways communications and parking charges for operations performed under this contract. In the event Airam is unable to obtain such relief, it is agreed that Airam shall pay such charges incurred under this contract.
Except as expressly provided in this contract, Airam shall have no responsibility to or for CAL personnel engaged in the performance of services hereunder.
CAL shall furnish in writing to Airam the name, personal history data, and any other pertinent information available to CAL, if requested by Airam, of all CAL personnel assigned to this contract.
To the extent that Airam is relieved by the United States Government of liability for the loss of, damage to or destruction. Government property made available to CAL. Government cargo, which term shall be deemed to include passengers' baggage and personal belongings, transported in the performance of this contract, Airam does hereby relieve CAL of liability for loss of, damage to or destruction. Government property and cargo transported by CAL in the performance of this contract.
CAL is authorized to transport CAL personnel, parts, equipment and supplies during performance of services hereunder,pace available basis on the aircraft furnished hereunder.
j- Examination of Records: CAL agrees that the Comptroller
General of tne United States or any of his duly authorized
representatives shall, until the expiration of three years
after final payment under this contract, have access to and
the right to examine any directly pertinent books, documents,
papers and records of CAL, involving transactions related to
this contract. 8
Soviet-Controlled Areas: CAL shall not acquire for use in
performance of this contract any supplies orfrom sources within Soviet-controlled areas,
as listed in Article VII. of this contract, or transported
from or through Hong Xong or Macao, without the written
approval of Airam. 15
Price Reduction for Defective Cost or Pricing Data:
1. If Airam determines that any price, including profit or
fee, negotiated in connection with this contract was
increased by any significant sums because CAL, or any
subcontractor in connectionubcontract covered
byelow, furnished incomplete or inaccurate cost or
pricing data or data not current as certified in CAL's
Certificate of Current Cost or Pricing Data, then such
price shall be reduced accordingly and the contract shall
be modified in writing to reflect such adjustment.
CAL agrees to insert the substance of paragraphsnd 2.
of this clause in each of his cost-reimbursement type,
price redeterminable, or incentive subcontracts hereunder,
and in any other subcontract hereunder in excess of
nless the price is based or. adequate price
competition, established catalog or market prices ofitems sold in substantial quantities to the
general public, or prices set by law or regulation. In
each such excepted subcontract hereunder which exceeds
he Contractor shall insert the substance of
the following clause: 39
REDUCTION FOR DEFECTIVE COS" OR PRICING DATA -
This clause shall become operative only with
respect to any change or other modification made pursuant
to one or more provisions of this contract which involves
a price adjustment in excessxceptprice is based on adequate pricecatalog or market prices ofsold in substantial quantities to theor prices set by law or regulation. Theprice reduction under this clause shall be limited
to such price adjustments-
9
3
5
2. If CAL determines that any price,or fee, negotiated in connection with anywithin the purview of paragraphboveby any significant sura because theany of his subcontractors in connection with acovered by paragraphelow,or inaccurate cost or pricing data, orcurrent as of the date of execution of thecertificate of current cost orthan such price shall be reduced accordinglysubcontract shall be modified in writing toadjustment.
21
The subcontractor agrees to insert the substance
of this clause in each subcontract hereunder which exceeds
5
For purposes of verifying that cost or pricing data submitted, in conjunction with the negotiation of this contract or any contract change or other modification involving an amount in excess0 are accurate, complete, and current, Airam, or its authorizedthe expiration of three years from the date of final payment under thisthe right to examine those books, records, documents and other supporting data which will permit adequate evaluation of the cost or pricing data submitted, along with the computations and projections used therein, which were available to CAL as of the date of execution of CAL's Certificate of Current Cost or Pricing Data.
CAL agrees to insert the substance of this clause including this paragraphn all subcontracts hereunder in excesso as to apply until three years after final payment under the subcontract, unless the price is based
Audit
27
29
30
34
680 41
43
on adequate price competition, established catalog or market prices of commercial items sold in substantial quantities to the general public, cr prices set by lav or regulation. In each such excepted subcontract hereunder in excessAL shall insert the substance of the following clause to apply until three years after final payment under the subcontract:
RICE ADJUSTMENTS
clause shall become operative onlyto any change or other modification madeone or more provisions of this contract whichprice adjustment in excess0 unless theis based on adequate pricecatalog or market prices of commercialin substantial quantities to the general public,
or prices set by law or regulation and further provided that such change or other modification to this contract must resulthange or other modification to Airam prime contract.
purposes of verifying that cost orsubmitted in conjunctionontract changeinvolving an amount in excess0
are accurate, complete and current, Airam or its authorized representativethe expiration of three years from the date of final payment under thisthe right to examine those books, records, documents, and other supporting data which will permit adequate evaluation of the cost or pricing data submitted, along with the computations and projections used therein, which were available to CAL as of the date of execution of CAL's Certificate of Current Cost or Pricing Data.
agrees to insert the substance ofincluding this paragraphn allin excess0 so as to applyyears after final payment of the subcontract."
Subcontractor Cost and Pricing Data
1. CAL shall require subcontractors hereunder to submit cost or pricing data under the following circumstances: (i) prior to award of any cost-reimbursement type, incentive,
or price redeterminable subcontract; (ii) prior to the award of any subcontract the price of which is expected toiii) prior to the pricing of any subcontract change or other modification for which the price adjustment is expected toxcept in the case of (ii) and (iii) where the price is based on adequate price competition, established catalog or market prices of commercial items sold in substantial quantities to the general public, or prices set by law or regulation.
CAL shall require subcontractors to certify, inthe same form as that used in the certificate by Airam to the U. S. Government, that to the best of their knowledge and belief, the cost and pricing data submitted underbove is accurate, complete, and current as of the agreement or. the negotiated price of the subcontract.
CAL shall insert the substance of this clause including this paragraphn each of his cost-reimbursement type, price redeterminable, or incentive subcontracts hereunder, and in any other subcontract hereunder which0 except where the price thereof is based on adequate price competition, established catalog or market prices of commercial items sold in substantial quantities to the general public, or prices set by law or regulation. In each such excepted subcontract hereunder in excessAL shall insert the substance of the following clause:
COST AND PRICINGRICE ADJUSTMENTS
ndf this clause shallonly with respect to any change ormade pursuant to one or more provisions
of this contract whichrice adjustment in excess The requirements of this clause shall be limited to such price adjustments.
shall require subcontractorssubmit cost or pricing data under the(i) prior to award of anytype, incentive or price(ii) prior to award of any subcontract,
1 12
3
4
6
17
19
the price of vhich is expected toiii) prior to the pricing of any subcontract change or other modification for which the price adjustment is expected toxcept in the case of (ii) andhere the price is based on adequate price competition, established catalog or market prices of commercial items sold in substantial quantities to the general public, or prices set by law or regulation.
3. CAL shall require subcontractors to certify, in substantially the same form as that used in the certificate by Airam to the U. S. Government, that to the best of their knowledge and belief the cost and pricing data submitted underbove is accurate, complete, and current as of the date of execution, which date shall be as close as possible to the date of agreement on the negotiated price of the contract
4. CAL shall insert the substance of this clause
including this paragraphn each subcontract hereunder
which" 23
CAL shall not enter into any subcontract, oral or written,
for the performance of any of the work or services provided
for under the terms of this contract without the written
approval of Airam. 23
VI. INDEMNITY AND INSURANCE
for loss, damage or destruction of Airam property and injury to or death of Airam personnel not caused by directly attributable to CAL or its agents, servants,
30
32
any risk for any loss, damage, or destruction of any property or for any injury to or death of any person resulting from or arisina out of this contract regardless of how caused or when occurring and CAL hereby agrees to indemnify and save and hold Airam, including its associated companies and affiliates, and its agents, servants and employees, harmless with regard to any and all claims of any nature, including
or
employees, and except for loss, damage or destruction
to property and injury to or death of persons caused by
or directly attributable to the wilful misconduct of Airan
or its associated or affiliated companies or their employees,
servants and agents, Airam shall not be responsible or accept
024 45
pi267
1
b.
related to any or all such loss, damage, destruction, injury
and death. 5
9
covereu uy
o Airam
11
3
CAL aqrees to maintain in full force and effect during thi contract insurance covering CAL's liability and undertakin set forth in paragraphereinabove in connection with its operations through and its activities in and about the locations covered by this contract, such insurance to be -such amounts and with such insurers as are acceptable to
such amounts ana witn sucns and shall cause Airam to be named as co-insured in connection with such insurance. 14
CAL agrees to furnish to Airam the insurers' certificate(s)
17
i 3
19
20
21
22
4
of insurance which shallhe names of the insuredhe aircraft covered by thehe effective period of suchhe amount and coverage afforded by such the geographical limitations applicable to the aircraft covered by such insuranceertifying that such insurance is in full force andcknowledging acceptance of the indemnification agreement assumed by CAL under thisaiving any and all rights of subrogation against the United States Government
and Airam, its officers, agents, and employees and (g) providing
that the insurers will give Airam at least) dayswritten notice before such insurance or waiver of
subrogation is cancelled or materially changed. In addition,
CAL shall furnishertified copy or duplicate original
of such policy or policies and endorsements thereto and thereonsoon as conveniently possible.
32
In the event CAL shall fail to procure and maintain such
insurance, Airam shall have the right to do so and charge
CAL with the cost thereof, such cost being subject to
deduction from any amounts owed by Airam to CAL under
this contract. 33
VII. IET-CCMT3CLLED AREAS:
40
For the purpose of this contract, Soviet-controlled areas are
China, excluding Taiwanut including Manchurai,
Inner Mongolia, the provinces of Tsinghai and Sikang,
Sinkiang, Tibet, the former Kwangtung Leased Territory,
the present Port Arthur Naval Base Area, and Liaoning
Province. 6
Communist-controlled area of Vietnam and Communist-controlled
of Laos.
Cuba
Czechoslovakia
East Germany (Soviet Zone of Germany and the Soviet Sector of
Estonia
Hungary
Latvia
Lithuania North Korea
Mongolia
Poland and Danzig
Rumania
Union of Soviet Socialist Republics
22
VIII. AIRAM FURNISHED
Airam shall furnish to CALura to be deductible from amounts
to be paid to CAL as provided in Article IV.b. such equipment and
facilities or their approximate equivalent at such prices as shall
be agreed to in writing between the parties hereto from time to
time. 30
IX. YPE
Notwithstanding any other provisions of this contract, it is
understood thatndertakings herein with regard to making
ype aircraft available upon an initial or continuing
basis and the operation thereof shall be subject to the terms
and conditions or other arrangement upon which such aircraft
are so furnished to CAL. 39
X. COHTRACTUAL
This contract consists of Articles I. through X. on pages 1
n Appendix "A" of two pages; andf
one page; an Appendix "C" of two pages and an Appendix "D"
of one page.
Contract
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8
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10
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13
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23
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3"
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WITNESS WHEREOF, the parties hereto have, by their respective officials or representatives thereunto duly authorized, executed this agreement.
CHINA AIR LINES
By
Typed Name: RobertPresident
AIR AMERICA, INC.
By
Typed Name: J. W. Walker, Jr.
viceContract Affairs
f 2
AIRCRAFT FLYING HOUR RATES
Part I, The rates set forth in this Part I. are effective7 through
Basic Aircraft
Per Flying Hour Per Calendar Quarter Wine
3
2
1 and over
1 and over
9
Aircraft
lying Hour Per Calendar Quarter
Part II. TY, 1
e rates se October 19
minimums
t forth in this Parthroughune 19
II. are effective
Aircraft
Per Flying Hour Vet Per calendar Quarter wine
2
1 and over
1 and over
0
Aircraft
Per Flying Hour Per Calendar Quarter
minimums
f 2
Note 1, The term "fleet" as used herein is defined as one or moreype of aircraft which are assigned to the contract as basic aircraft pursuant to the terms of. Item I.
Note 2. The total number of aircraft makingleetalendar quarter shall be determined by considering each basic aircraft performing services under the contract during the entire calendar quarternit of one and each basic aircraft performing services under theortion of the calendar quarterercentagenit one obtained by dividing the number of days the aircraft was assigned by the number of days in the calendar quarter. The total sum of units will be the fleet for that calendar quarter.
Notehe minimuras applicable to each fleet of aircraft shall be determined by multiplying applicable minimums set forth onf this Appendix "A" by the fleet as determined in accordance with the procedures set forth in Notebove.
Note 4. If the total hours flown by the entire fleet equals or exceeds the calendar quarter minimums as determined in accordance with Notebove, there will be no unflown minimums.
Note 5. If the total hours flown by the entire fleet is less than the calendar quarter minimums as determined in accordance with Notebove, the billable unflown minimums shall be the difference between the total hours flown by the fleet and said minimums.
CALL ORDER FOR ADDITIONAL AIRCRAFT
APPENDIX "D" Contract
China Air Lines
Order No. Date
to Article I. paragraph c. of subject contract, you are hereby requested to provide, if available, additional aircraft as specified below:
of Aircraft Place Aircraft Required
TJ5aTe)
Through >ate.
return the original and four copies to the undersigned indicating in sp.ace provided belov your agreement to this request and aircraftnumber assigned.
Air America, Ir.c. Authorized Representative
OFFER
Air America, Inc.
China Air Lines hereby agrees to furnish aircraft as indicated:
Identification will be available at of
(Date)
China Air Lines Representative
ACCEPTANCE AND CALL ORDER
China Air Lines
This constitutes acceptance of the Contractor's Offer as stated above and shall, pursuant to Article I. Paragraph c. of the contract, be deemed the Operational Order for CAL to furnish the aircraft described at the place of origin as indicated. The aircraft shall proceed from
date abcve)
Air America, Inc. Authorized Representative
To: Fron:
FLIGHT SERVICE OPERATIONAL ORDER
f 2
) Aircraft
Services to be rendered under Contract
Actual Time
assengers
Cargo
RenarTs
CONTRACT NO.
f 2
INSTRUCTIONS FOR COMPLETION
Form tc be issued to CAL prior to each flight by Airam authorized representative.
Authorized representative vill complete items 1 nd submit the original and two copies to AIR AMERICA Operations.
CAL flight captain or crew members will completehroughndto be same as aircrafts applicable, and signatures by CAL personnel will be affixed as indicated.
If change in original routing occurs while in flight or on mission, such change will be entered by the Captain in itemith notation of source authority of change..
All copies to be completed after flight returned to the Airam reDresen-tative for completion ofertification. Subsequent distribution as follows:
forwarded to CAL attached to Flight Log.
copy to be submitted by CAL when invoicing Airam.
copy to be retained by Airam representative.
vill forward one completed copy to appropriate
Any special instructions or additional remarks to be entered under itemf additional space required, use additional sheets.
Operational Orders are to be assigned numbers showing month and numerical designator and numbered consecutively.
Fl?67
f 1
ADDITIONAL PERSONNEL RATES AND
HAZARDOUS RATES FOR ALL PERSONNEL
Normal Rate Hazardous Rate
Radio
Extra Crew Member
Plight
Parachute Dropping
Original document.
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