DG-1000 Use Agreement – 2014/15 Member Agreement Certification I have read, understood, and agree with the terms of this agreement and by signing this document request SGC to consider my application to join the DG-1000 Group for the 2014/2015 year:

Print: _______________________________Sign:_______________________ Date:____________

DG-1000 Glider Group Member Purpose

This document sets out the terms and conditions of use for the DG-1000 sailplane (N767SS) and related equipment owned by the SGC Soaring Foundation (SGCSF), leased to the SGC, and operated by the DG-1000 group (the Group). Other documents that may take precedence over this document pertaining to the ownership, and operation by the Group are defined in Appendix A, Reference Documents of this document. Membership to the Group will be on an annual basis with no rights of continuance although existing members will normally be given first refusal to join for the following year before consideration of other nominations. All members of the Group agree that they have no rights of ownership or operation of the airplane and related equipment other than the terms of the agreement laid out in this document.

1. Group Membership Members of the Group must meet the following conditions to be a member in good standing.  Be a full member of a soaring club in the Pacific Northwest.  Be approved by SGC to be a member in the Group  Have paid the annual non-refundable premium to SGC for membership in the Group.  Have provided a refundable damage deposit surety in an approved manner to SGC  Be a member of SSA and SGC. (required to ensure insurance coverage)  Hold at least a private pilot glider license The number of approved group members will be limited to not less than 10 and not more than 13 for the 12month period starting April 1, 2013

2. Costs a. Annual Member Premium An annual non refundable premium is payable by each member at the initial formation of the Group for that year. This fee will be based on the estimated costs of operating the glider (see estimated yearly operating costs, Appendix B) and divided equally between the number of people admitted into the group for that year. The Group shall promptly pay all taxes, fees and assessments due, imposed, assessed or levied against the Aircraft, this Agreement (or any rents or receipts hereunder), by any domestic or foreign governmental entity or taxing authority during or related to the term of this Agreement, including, without limitation, all license and registration fees, and all sales, use, personal property, excise, gross receipts, franchise, stamp, value added, -------------------------------------------------------------DG-1000 Use Agreement Page 1 of 9

custom duties, landing fees, airport charges, navigation service charges, route navigation charges or other taxes, imposts, duties and charges, together with any penalties, fines or interest thereon (collectively “Taxes”). The Group shall promptly reimburse (on an after tax basis) the SGCSF for any Taxes charged to or assessed against the Aircraft, or this Agreement. Neither the SGC nor the SGCSF shall have any liability for Taxes imposed by the United States of America or any state or political subdivision thereof which are on or measured by the net income of the Group. The Group shall show the SGCSF as the owner of the Aircraft on all tax reports or returns (including but not limited to those relating to federal and state income tax, state and local sales and use tax and all personal property tax), and send the SGCSF a copy of each report or return and evidence of Lessees payment of Taxes upon request. b. Flight Fees The Group Member is responsible to pay a fixed flight fee for each flight. This flight fee will be reviewed on an annual basis and set at the beginning of the 12 month period (Appendix B). c. Tie Down and Airport Fees Tie down fees and costs for hauling the glider to and from Ephrata will be a shared expense and borne equally by all Group Members. d. Annual Condition Inspection The Group Members (neither SGC nor SGCSF) will be responsible for paying for all expenses associated with the annual inspection Maintenance and Inspection Requirements 1. The Group agrees that the Aircraft will be maintained in compliance with any and all statutes, laws, ordinances, regulations and standards or directives issued by any governmental agency applicable to the maintenance thereof, in compliance with any airworthiness certificate, license or registration relating to the Aircraft issued by any agency and in a manner that does not modify or impair any existing warranties on the Aircraft or any part thereof. 2. The Group shall maintain, inspect, service, repair, overhaul and test the Aircraft in accordance with (i) all maintenance manuals initially furnished with the Aircraft, including any subsequent amendments or supplements to such manuals issued by the manufacturer from time to time, (ii) all mandatory or otherwise required “Service Bulletins (SB)” issued, supplied, or available by or through the manufacturer and/or the manufacturer of any part with respect to the Aircraft which incurs a cost of less than $4000. The cost in excess of $4000 shall be the responsibility of the SGCSF. (iii) all Airworthiness Directives (AD) applicable to the Aircraft issued by the FAA or similar regulatory agency having jurisdictional authority, which occurs during the lease period that incurs a cost of less than $4000. The cost in excess of $4000 shall be the responsibility of the SGCSF. Compliance to such directives to be completed through corrective modification in lieu of operating manual restrictions. (iv) all maintenance requirements set forth in Attachment A hereto. The Group shall maintain all records, logs and other materials required by the manufacturer for enforcement of any warranties or by the FAA. All maintenance procedures required hereby shall be undertaken and completed in accordance with the manufacturer’s recommended procedures, and by properly trained, licensed, and certificated maintenance sources and maintenance personnel, so as to keep the Aircraft in as good an operating condition as it was at the start of the Use Period, ordinary wear and tear excepted, and so as to keep the Aircraft in such operating condition as may be necessary to enable the airworthiness certification of such Aircraft to be maintained in good standing at all times under the FAA. 3. Any alteration or modification (each an “Alteration”) with respect to the Aircraft that may at any time during the Term of this Use Agreement be required to comply with any applicable law or any -------------------------------------------------------------DG-1000 Use Agreement Page 2 of 9

governmental rule or regulation shall be made at the expense of the Group. Any repair made by the Group of or upon the Aircraft or replacement parts installed thereon in the course of repairing or maintaining the Aircraft, or any Alteration required by law or any governmental rule or regulation, shall be deemed an accession, and title thereto shall be immediately vested in the SGCSF without cost or expense to the SGCSF. 4. Except as permitted under this Section, The Group will not modify the Aircraft or affix or remove any accessory to this Aircraft. e. AD Risk and Assessment Each Group Member is responsible for a share of the cost of any mandatory AD or required Service Bulletin that may be issued during the 12 month period of the group commitment. This share will be assessed on a prorata basis for the cost of the AD or Service bulletin up to $4000.00. Each member is required to post a refundable surety for their share of the cost to the satisfaction of SGCSF. (Appendix B) f. Insurance Damage Deductible The Group Member (member flying, moving or hauling the glider) is responsible for paying the deductible for any insurance claim arising from any damage to the equipment during the time it is in their care – regardless if that use involved flight, transportation, or ground handling. If damage is too small to warrant an insurance claim, then the Group Member is responsible for paying the full amount for repairs. The damage deductible will be set to not exceed $1000.00 for each occurrence. g. Unknown Damage Cause In the event that the airplane is damaged but the person (persons) responsible cannot be determined or the damage occurred through misadventure with no Group Member assigned responsibility then all Group Members will share the cost of repairs up to the limit of the damage deductible. h. Assignment of Damage Responsibility SGC at their sole discretion shall determine the party responsibility for payment of the damage deductible or portion thereof and when the damage is too small to warrant an insurance claim. i. Extended Glider Down-Time The following conditions will apply if the glider is damaged or requires an AD and is deemed to be in a non flyable condition for an extended period of time.  The annual premium (or a portion thereof) will not be refunded unless by agreement with SGC.  The person (or persons) responsible for the damage will not have any liability to the other group members for lost use of the airplane or the non returned portion of the annual premium. j. Insurance Coverage SGC will purchase hull coverage and liability coverage for both the glider and the trailer for the term of this Use Agreement. The damage deductible will be limited at $1000.00 unless agreed by SGC, and the membership of the Group. Any approved member of the Group that attracts a special premium will be individually responsible for the excess cost. The aircraft will be taken off flight-insurance for the winter quarter. k. Funds Remaining At the end of the 12 month Use Agreement period all remaining funds will be “rolled over” into the operating funds for the following period’s Use Agreement. The next year’s budget will use this to reduce costs for the next operating year. In the event that the decision is made to no longer use the glider under this Use Agreement, the remaining funds will go into an SGCSF fund.

3. Glider Operations Members in good standing may operate the Glider and related equipment as PIC under the following conditions: -------------------------------------------------------------DG-1000 Use Agreement Page 3 of 9

1. Checkout and sign off (Members) a. All members will be checked out and signed off in assembly and ground operation procedures by persons approved by SGC to provide that instruction and checkout. b. All members will be checked out and signed off to fly the Glider by a CFIG approved by SGC to provide that instruction and checkout. A logbook signature will be required for both ground and flight signoff. Sign-off must be obtained for flying as PIC  from the front seat only, or  from either seat This sign-off will be reviewed on an annual basis for those members continuing their membership. 2. Requirement to pilot the DG-1000 as PIC (Member & Others) Pilots must meet the following conditions (a-d, or e) for sign-off for un-restricted flight operations as PIC a. Minimum of Private pilot (glider) license and b. Have completed and applied for the Silver distance badge leg for the FAI Silver C Badge, and c. Have made at least one solo off-airport field landing in a sailplane (during a cross country flight or an approved field landing training exercise), and d. Have been signed off to fly as PIC per Sub-sect. 3.1. above , or e. Be a CFIG or a Cross-Country Expert (Mentor, not part of the group} that has been approved by SGC to conduct DG-1000 flight training operations, and is flying with a Group Member. 3. Requirement to pilot the DG-1000 with Limitations (Members) Pilots not meeting conditions 2. b. and /or 2. c. above:  may fly as PIC only on local flights (i.e. defined as within 12 statute miles of the takeoff airport and with sufficient altitude to reach that airport at 1500’ AGL with performance of 6 miles per 1000’ of altitude.) from AWO or EPH.  may fly as PIC on a Cross country Training-flight only with an approved group Mentor or CFIG. The Group member will be fully responsibility for flight logging, airplane damage and for returning the airplane to the departure airport at the completion of the flight. 4. Non-Member approved CFIGs and Mentors The SGC will nominate several CFIG and Mentors. Those CFIG and Mentors will be identified in appendix C. The CFIG and Mentors  may fly the DG-1000 with a Group Member in good standing who does not meet the conditions for solo sign–off (Sub-sect. 3. 2. B. & 3. 2. C. above) with the intended purpose of preparing the member for sign off. This may include off-airport landing practice and cross country flight. The Mentor/CFIG will be PIC.  may, when flying with a member meeting all of the conditions for DG-1000 PIC, fly as PIC or as Mentor depending on the member’s desire. {The member may not fly as PIC in the rear seat under those conditions unless he/she has been signed off to do so (Sub-sect. 3. 2.d).} In any case, the Group Member will retain responsibility for flight logging, airplane damage and for returning the airplane to the departure airport at the completion of the flight.

4. Operating Rules 1. The Group Member who is flying, is responsible for completing a written log of each flight, including the date flown and duration of the flight, and if a training flight i.a.w. Section 3.3, the name of the Mentor/CFIG. 2. The Group Member who is flying is responsible for getting the glider back to Arlington or Ephrata promptly if the glider is landed somewhere other than the home field. In the event of a land-out (off airport landing), -------------------------------------------------------------DG-1000 Use Agreement Page 4 of 9

that Group Member is responsible for finding/organizing a crew and tow vehicle to promptly get the glider back to the home field, cleaned and ready for the next member’s use. The glider and ground equipment will at all times be operated within the applicable FAR’s and DOT requirements for towed trailers as applicable. Members are responsible for ensuring that the trailer is roadworthy and legal and the glider is properly secure in the trailer before moving the tow vehicle/ trailer combination and that the tow-vehicle being used has sufficient insurance. For any flight where both seats are occupied, the PIC will be determined and agreed-to by both parties before the flight is initiated. Aerobatic maneuvers will not be performed in this airplane unless the Group member (or Mentor) is approved by SGC via a written Document.

5. Scheduling All days of the use period will be assigned to individual Group Members. Use of the glider is at the discretion of the Group Member who “owns” that day. It is expected that Group Members will freely trade days and trade parts of days to maximize use of the glider. It is also expected that members will increase their flying time in the DG-1000 by flying with other members. Scheduling Details 3. For the first part of the use period, Members going through the checkout-process per Section 3.1 above, have first priority to use the glider. Else the DG-1000 will be available on a first-come-first-served basis. During this time checked-out members are limited to flights of one hour when someone else is waiting to fly. This check-out period will end upon agreement of a plurality of the current members. 4. All days of the remaining use period will be assigned sequentially to Group Members as follows: Members names will be put in a sequence list by lottery. First, the names from that list will be evenly distributed over all Saturdays and all Sundays (with the exception of the Weekends of Dustup & Region8 Contest, as noted in Item 5 below) of the remaining season. Second, the names from that list will be evenly distributed over all Weekday days (with the exception of the days for Dustup & Region8 Contest, as noted in Item 5 below) of the remaining season. It is required that the Member not wishing to use the DG-1000 on her/his day will trade with someone else for a different day, or will give up their day to the General Membership so others can fly. 5. During the periods of the DustUp Contest and the Region 8 Contest the glider will be scheduled for a team of Members to fly the contest.  Group members are encouraged to team up with one or more experienced contest pilots and enter the DG-1000 in the contest.  In case there are more than one team, the team entering the contest will be selected by lottery.  The each team must be identified and agreed to by the SGCSF Board prior to any lottery.  When the contest flight has been completed the DG-1000 shall be available for other Group Members.  If no team has formed under Item 5, the DG-1000 is scheduled on a first come , first call basis. 6. During the Winter-quarter (approx November - February) the DG-1000 will be kept in the trailer under rainproof cover, with no flight-insurance cover. 7. The up-to-date schedule will be maintained via notification in the DG-1000 Group Website at <<< http://groups.google.com/group/dg-1000_group?lnk=iggc >>>

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6. Commercial Use 1. The aircraft shall not be used for commercial purposes, except as described in subparagraph 6.2.& 6.3 below. That is, it shall not be used to give rides for profit. 2. The aircraft may be used to provide courtesy rides as part of the Region-8 sponsored Contests or other events approved by the SGC when the glider may be piloted by a Group Member, an Approved Mentor, or an Approved CFIG. 3. Members may apply to the SGCSF Board for special permission to use the aircraft to obtain their commercial or instructor rating.

7. Operating Locations   

The group will operate the glider on the west side of the Cascades from September through April each year where it will be kept in its trailer or, for less than 3 days, tied down on the flightline. The covers must be stored dry when not on the glider. The group will operate the glider out of the Ephrata Airport during the months of May through September. Exact date of transfer will be by majority vote of the members. While at Ephrata, the glider will be kept in its trailer or tied down with covers. Members of the group may wish to operate the glider for a period of time at an airport other than Arlington or Ephrata. For instance, some people may want to operate the glider out of Darrington Airport for a week. The decision to do this will require approval from SGC and consensus of the Group. The decision will be made based on the experience of the members, safety of the airport and impact on other members of the group.

8. Maintenance Pacific AeroSport, LLC (Chris Klix) are designated as being responsible for all required maintenance. Pacific AeroSport, LLC will be paid out of the glider operating expenses for work performed on the glider – including annual inspections. Members of the group are expected to help with waxing and assisting Pacific AeroSport, LLC with maintenance to help minimize overall maintenance costs.

9. Group Meetings The group will be responsible for arranging meetings to discuss any issues and getting those issues resolved.

10.   

The Group may not cancel this Use Agreement. However, if the group decides to stop flying the glider, they may ask to reduce insurance to ground coverage only for the remaining term of the lease. Under no circumstances is the Group due any refund on the Annual Member Premium payment or flight fees. In the event that the glider is not being used by the group according to the rules or for unintended purposes, the SGC may exercise its option to terminate this Use Agreement, without refund of the remaining operating funds.

11.  

Use Agreement Cancellation

Miscellaneous

The DG-1000 trailer weighs about 2600 pounds with glider, requires a 2” ball and a standard flat 4-wire connector. The DG-1000 Trailer dimensions are as follows:  Body is 31 ft. and 6 inches long -------------------------------------------------------------DG-1000 Use Agreement Page 6 of 9

 



Tongue is 42” long Overall length is 35 feet long

The SGC Soaring Foundation will determine membership in the Group and will be the final authority to resolve all Group disputes.

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Appendices 1. Appendix A Reference Documents This Document is based on the ideas and wishes of the Aircraft Donor, Mr. John Daly. In case of conflict, the following two documents take precedence over this document. 1. The John Daly Soaring Fund Agreement, effective as of February 10, 2007. 2. Transfer of Interest for Cobra Sailplane Trailer, effective as of April 1, 2007 SGC Lease Document 1. Aircraft Lease Agreement, dated as of March 1, 2010 Maintenance Documentation 1. DG-1000S Maintenance Manual 2. DG-1000 Repair Manual 3. DG-1000 Flight Manual

2. Appendix B Approximate Yearly Operating Costs

Projected DG-1000 Budget for 2014-15 Insurance Fuel - Haul Glider to/from EPH etc Lease Payment to SGC Foundation Maintenance, Repairs, Annuals Parachute Repacks Tiedowns at Ephrata Winter Trailer Storage, hangar Trailer Storage at Arlington Lease Payment to SGC

Grand Total

$4,400.00 $200.00 $1,000.00 $2,500.00 $250.00 $220.00 $250.00 $300.00 $1,000.00 $10,120.00

Membership Premium The Membership Premium for 2014/2015 is set at $850. If at the end of the year, the Yearly Operating Costs are bigger than shown above there will be an assessment to all Group Members to make up the difference. The assessment may be taken from the refundable AD Risk & Damage Deposit, if any is left. Flight Fee The 2014/2015 Flight Fee shall be 10.00 per flight. AD Risk & Damage Deposit The refundable Airworthiness Directive (AD)/Service Bulletin Risk and Damage Deposit for the 20014/2015 Season shall be $ 310 -------------------------------------------------------------DG-1000 Use Agreement Page 8 of 9

3. Appendix C Approval and Training Authority This appendix lists the persons who have been approved by the SGC to have the Approval and Training Authority as specified in this document. This Appendix may be updated via the DG-1000 Group Website at <<< http://groups.google.com/group/dg-1000_group?lnk=iggc >>> 1. Operation Requirements of the Glider Jim Simmons, SGCSF Board Chairman 2. CFIGs Ron Bellamy Stan Kasprzyk Keith Turner 3. Mentors Nelson Funston Mike Newgard Steve Northcraft Jim Simmons 4. Assembly and Ground Operations Chris Klix Steve Northcraft Heinz Gehlhaar Kevin Finke Noel Wade

Signatures This document, the DG-1000 Use Agreement and its Appendices are approved by SGC

_____________________________ Mike Newgard, SGC Board Chairman

_______________ Date

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