COMPANY POLICY MANUAL
Revised: 1 June, 2004

LABOR RATES

Standard Labor rate is: $70.00 per hour on Lake Aircraft; $60.00 per hour on all others.

ANNUAL INSPECTIONS, ALL LAKE AIRCRAFT

The cost of an annual inspection on all Lake aircraft is $895.00, Flat rated. Certain surcharges may apply. See below.

ANNUAL INSPECTIONS, OTHER AIRCRAFT

Annual inspections are quoted on an individual basis. Most single engine retractable aircraft are flat rated at the same rate as the Lake. Simple single engine aircraft (C-150, PA-28, C-172, etc) are flat rated at $595. Fixed gear aircraft with C/S prop and 200+ HP are generally $695. Certain surcharges may apply. See below

DISCOUNTS

Discount 1: A 15% labor discount applies for any customer who has spent over $4,000 in labor, either in the past calender year or current year, including the current job. Additionally a 15% parts discount will apply for any customer who has purchased over $4,000 in new parts in the past calender year. The parts and labor discounts are NOT cumulative. Vendor or outside labor, or used parts are NOT included.

This same labor discount also applies if the customer has had his last (Previous) annual done at AIRS, and has spent $2,500 in other labor in the past or present calender year.

Additionally this discount applies also, if the customer has had his last three consecutive annuals done at AIRS, and has NOT visited another repair facility except for emergencies, regardless of the amount spent on labor.

To qualify for this discount the customer must provide funds for 50 % of the estimated work and parts in advance (up to an estimated $5,000), or never be more than $2,500 in arrears, whichever is greater.

Discount 2: A 40% discount applies when the customer is a "project" aircraft without a guaranteed completion date or time, and work can be done on an as available basis. The volume of this work MUST BE AT LEAST 400 man hours total. To qualify for this discount the customer must provide 100% of the funds (or equivalent), in advance, for all work and parts up to $12,500, and thereafter in increments of not less than $1,000 so as NEVER to be in arrears.

Annual rates quoted ALREADY HAVE APPROPRIATE DISCOUNTS and will not be subject to any further discounts.

Flat rated labor items are NOT subject to further discounts, except as may be negotiated in advance, or as an advertised "special".

SURCHARGES:

1. ALL jobs will incur a $15 administrative fee, regardless of the scope of the job.

2. ALL jobs, with the exception of NET advertised jobs (Specials), will incur a 5% add on fee on the total of all parts and labor for insurance. This is a taxable fee.

3. All jobs with labor billings over $1,500 (others discretionary) will incur a 3% (of labor) supplies charge for miscellaneous supplies including, but not limited to, hardware, cleaning materials, rags etc.

4. Any job which can be considered Unscheduled Maintenance will be subject to a 25% surcharge on labor (after applying the above discounts, if any). A job will be considered unscheduled if any of the conditions listed below apply:

a. No appointment for the maintenance was made at least 48 hours in advance.
b. The customer is waiting on the premises for the aircraft.
c. A guaranteed delivery time or date was quoted.

5. Annual inspections on aircraft where the previous annual(s) was(were) accomplished elsewhere will be subject to a $200 surcharge. This may be mitigated under certain circumstances by discretion, IF only one annual was done between annual inspections by AIRS. This applies to ALL aircraft types and covers the cost of research and paperwork.

6. Owner participation with work in the shop is strongly discouraged, but may be approved on an individual basis. However, any customer who performs work in our facility either for himself or as an assistant to our personnel, will incur a charge of $38.50 per hour per person for utilization of the facility. This charge covers the cost of overhead, insurance, and rent. This charge will apply to any "owner assisted annual" or similar work, that might be approved.