EIGHT BALL FLYING CLUB, INC. OPERATING RULES. As Adopted February 13, Section 1 Purpose

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1 Section 1 Purpose These Operating Rules govern the use of corporation aircraft by the members and establish the members' obligations to the corporation. Section 2 Membership 1. The Standard Membership fee in the corporation shall be two thousand six hundred ($2,600) dollars. 2. The number of members in the club shall be limited to a ratio of 13 persons per corporation aircraft. 3. A Family Membership exists whereby other members of the same household may fly corporation aircraft without paying an additional membership fee. Such a membership must be voted in by a quorum of the members. Section 3 Revenue Revenue of the corporation shall consist of monthly dues and hourly use fees. 1. The following monthly dues shall apply: For a Standard Membership, one hundred thirty ($130) dollars. For a Family Membership, one hundred sixty ($160) dollars. Page 1 of 6

2 2. The following hourly use fees shall be charged for the use of corporation aircraft to cover the cost of fuel, oil, maintenance, repairs, and new equipment: Use of the Cessna 172 (N2257E) aircraft shall cost sixty ($60) dollars per tachometer hour. Use of the Cessna 172 (N5199J) aircraft shall cost seventy ($70) dollars per tachometer hour. Use of the Cessna 182 (N233ME) aircraft shall cost eighty ($80) dollars per tachometer hour. A fuel surcharge will be charged per tachometer hour. The amount will be calculated as: the club s fuel cost per gallon minus $2.50 times the average gallons per hour per aircraft. The average gallons per hour for each aircraft is: o N2257E 9 o N5199J 9 o N233ME 13 Section 4 General 1. Block Time Members may purchase block time by depositing enough funds to have a credit balance of four hundred eighty ($480) dollars with the Treasurer, for which the member s account shall be credited five hundred ($500) dollars. 2. Recording Flight Time At the time of each flight, a member shall record his name, the date and the beginning and ending tachometer readings in the logbook provided in each aircraft. The original shall serve as the member receipt, and the copy shall be left in the glove compartment of each aircraft and is not to be removed except by order of the Treasurer or President. Page 2 of 6

3 3. Refueling of Aircraft at Home Base After each flight ending at the home base the propeller shall be left in a vertical position as an indication to the fuel service that fuel top-off is required. 4. Fuel and Oil Purchases Away From Home Base All fuel and oil purchased away from home base shall be evidenced by sales slips plainly indicating the aircraft number, number of gallons of fuel and quarts of oil, and the amount paid. The member shall be credited at the home base price per gallon for fuel and for the actual amount paid for oil. The corporation shall not be responsible for the cost of tie down away from home base. No gas ticket older than one hundred twenty (120) days shall be honored for credit. 5. Repairs Made Away From Home Base Each member is authorized to purchase repairs not exceeding two hundred ($200.00) dollars for parts and labor when necessary to return an aircraft to airworthy condition, as prescribed by FAA regulations, for the type of flight intended for the return to home base, including a ferry permit, if required. If estimates for the repair are greater than two hundred ($200.00) dollars the member must contact the Aircraft Maintenance Officer or the President for authorization to have the aircraft repaired. The Aircraft Maintenance Officer must endorse invoices for repairs to the aircraft before the Treasurer shall credit the member's account. 6. Maintenance Hours Members are required to perform eight (8) hours of maintenance time on corporation aircraft per calendar year. Maintenance work includes any preventative maintenance, time spent purchasing items for the corporation, washing, waxing, cleaning or otherwise maintaining the corporation aircraft. Any balance of the eight (8) hours not performed during the calendar year shall be charged to the member s account at the rate of ten ($10) dollars per hour. Page 3 of 6

4 Section 5 Operation of Corporation Aircraft 1. Distance Flights If the destination of a particular flight is more than one hundred (100) statute miles from Van Nuys airport, the member shall file a flight plan with the FAA, or attempt to maintain flight following at all times. 2. Pilot Responsibility When corporation aircraft are away from home base, it is the responsibility of the pilot to care for them in such a manner so as not to invalidate the prevailing insurance. Reasonable care should be taken to tie down the aircraft adequately in an area normally used for aircraft. 3. Use of Corporation Aircraft to Give Instruction A member may not use corporation aircraft for their own instruction unless the certified instructor has been approved by the Board. The corporation aircraft may not be used to instruct non-members. 4. Aircraft not to be Used for Hire No one flying corporation aircraft may levy a charge for transportation of a guest. A guest may offer to share direct operating expenses and a member may accept such offer, but in no event shall he accept more than necessary to cover direct operating expenses. 5. Flights Outside the United States No corporation aircraft shall be flown outside the United States until the member has: Secured liability insurance that will be accepted by the country in which the aircraft will be flown. Satisfied all requirements by the country in which the aircraft will be flown. Satisfied all requirements by the aircraft lien holder, if any. Has obtained a notarized letter from one of the Club Directors to take the aircraft out of the country for the dates specified. Page 4 of 6

5 6. Pilot Currency Any member who has not flown an aircraft in 90 days shall spend a minimum of one hour dual time with a Certified Flight Instructor prior to flying corporation aircraft. Section 6 Scheduling 1. Scheduling Priority Corporation aircraft shall be scheduled on a first-come first-served basis. 2. Scheduling the Aircraft The Board of Directors shall approve an automated (online) scheduling system to be used by the members. 3. Scheduling Requests All scheduling shall be done with the online scheduling system approved by the Board. 4. Cancellations All cancellations shall be entered on the approved scheduling system. For aircraft scheduled for more than four hours total, members may (by a vote of the Board of Directors) be charged for time that an aircraft is schedule and not used, if the scheduled usage is not cancelled within one hour after the start of the scheduled time. 5. Charge for Aircraft Scheduled for Extended Periods and Not Used. For aircraft scheduled for more than 48 hours, a minimum of one hour's flying time per day may be charged for each day an aircraft is scheduled and unavailable for the membership, unless there is a valid reason for the lack of usage. 6. Required Action in the Event a Member is Unable to Return to Home Base If a member has an aircraft away from home base and is unable to return it according to schedule, he must notify the scheduling coordinator of the delay. Except in the event of a Page 5 of 6

6 malfunction, each member taking an aircraft away from home base is responsible for returning it to home base. 7. Vacation Flight Each member is entitled to take a corporation aircraft for a day period during each calendar year. Back-to-back scheduling of these periods is not allowed. 8. Grounding of Aircraft If there is a malfunction of an aircraft, which renders it no longer airworthy, it is to be grounded by hanging a grounding tag on the aircraft throttle. The Aircraft Maintenance Officer or the President shall be advised of the grounding. The Aircraft Maintenance Officer and/or grounding member shall indicate on the approved scheduling system that the aircraft has been grounded. All members who have the aircraft scheduled in the subsequent fortyeight (48) hour period shall be notified by or telephone. Section 7 Revisions to the Operating Rules These Operating Rules may be changed by a majority of the members representing a quorum at any meeting, or by the Board of Directors. When the Board of Directors changes these Operating Rules, their decision shall be ratified by a majority of the members representing a quorum at the first regular meeting following adoption of the new Operating Rules. Page 6 of 6