EXHIBIT 10.39
TOWER CONTRACT
FINISHED DRAFT
COMPLETED: 1ST OCTOBER 1996
[LOGO OF AIRCRAFT ENGINES]
GE Aircraft Engines Proprietary Information
AGREEMENT NUMBER GEAES-TOW-201-001
BETWEEN
GE AIRCRAFT ENGINE SERVICES LIMITED
AND
TOWER AIR INC.
INDEX
MAIN AGREEMENT
CLAUSE 1 SCOPE AND DEFINED TERMS
CLAUSE 2 PERIOD OF THE AGREEMENT
CLAUSE 3 SERVICES AND CHARGES
CLAUSE 4 OTHER CONDITIONS
CLAUSE 5 NOTICES
ANNEXES TO THE MAIN AGREEMENT:
A. CHECKING LISTS
B. LIST OF UNITS WITH PRICES AND TURNROUND, TIMES COVERED BY THIS AGREEMENT
C. MODIFICATION CATEGORIES
D. BASIC MINIMUM MODIFICATION STANDARD
E. STATUS OF WORK IN PROGRESS
F. NOTIFICATION OF HIGH COST WORK
G. CONCESSIONS
H. ENGINE HEALTH CHECK LIST
I. MUTUALLY AGREED WORKSCOPE FOR REFURBISHMENT AND CONVERSION TO -7J
SPECIFICATION
COPIES AND SIGNATURES
SCHEDULE OF STANDARD CONDITIONS
CLAUSE 1 CONFIDENTIALITY AND ASSIGNMENT
CLAUSE 2 DEFINITIONS
CLAUSE 3 DOCUMENTS AND PROCEDURES
CLAUSE 4 MODIFICATIONS
CLAUSE 5 TECHNICAL LIAISON
CLAUSE 6 STANDARDS
CLAUSE 7 TRANSPORTATION REQUIREMENTS
CLAUSE 8 TURNROUND TIMES
CLAUSE 9 POOLING
CLAUSE 10 CUSTODY CONTROL AND TITLE TRANSFER
CLAUSE 11 SELLER AND BUYER WARRANTIES
CLAUSE 12 SELLER'S INTELLECTUAL PROPERTY WARRANTY
CLAUSE 13 MANUFACTURER'S WARRANTY
CLAUSE 14 TERMS OF PAYMENT
CLAUSE 15 CHARGE VARIATION
CLAUSE 16 INDEMNITY AND LIABILITY
CLAUSE 17 FORCE MAJEURE
CLAUSE 18 TERMINATION
CLAUSE 19 NON WAIVER
CLAUSE 20 ALTERATIONS AND AMENDMENTS TO AGREEMENT
CLAUSE 21 APPLICABLE LAW, INVALIDITY AND RESTRICTIVE TRADE PRACTICES ACT
CLAUSE 22 ENTIRE AGREEMENT
DATED: September, 1996
AGREEMENT NUMBER GEAES-TOW-201-001
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MAIN AGREEMENT
This Agreement is made this 30th day of September one thousand nine hundred and
ninety-six.
between
GE Aircraft Engine Services Limited, (a wholly owned subsidiary of International
General Electric (U.S.A.) Limited) whose registered office is situated at
Caerphilly Road, Nantgarw, Cardiff, Xxxxx Xxxxxxxxx, XX0 0XX, Xxxxxx Xxxxxxx
(hereinafter referred to as "the Seller") of the one part.
and
Tower Air, Inc., whose registered office is situated at Xxxxxx 00, XXX
International Airport, Xxxxxxx, Xxx Xxxx 00000, X.X.X. (hereinafter referred to
as "the Buyer" of the other part.)
Whereas
The Buyer wishes to contract and the Seller agrees to perform, in accordance
with the terms and conditions of this Agreement, engineering maintenance
Services in relation to Xxxxx & Xxxxxxx JT9D -7A and -7J Engines for
refurbishment and where required conversion to -7J specification removes as
defective or time expires from Boeing 747 aircraft, or used as spare engines for
such aircraft, owned or operated by the Buyer, (hereinafter referred to as
"Units")
Now it is hereby agreed as follows
CLAUSE 1 - SCOPE AND DEFINED TERMS
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The Seller shall provide the Buyer with the Services and the Buyer shall accept
and pay for the Services as set out and subject to the terms and conditions of
the Main Agreement and the Standard Conditions more particularly referred to in
the Schedule hereto. Any defined terms used in the Agreement shall be
interpreted as defined in the Schedule.
CLAUSE 2 - PERIOD OF THE AGREEMENT
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Buyer agrees to use Seller as its exclusive provider of all engineering
maintenance Services in relation to the Units. This exclusive Agreement shall
become effective from the date of execution by both parties hereto and shall,
notwithstanding Clause 18.2 of the Schedule of Conditions, remain in full force
for a period of 5 years from the date of this agreement. For clarification,
during such 5-year period, Buyer shall not have the right to terminate this
Agreement pursuant to Clause 18.2 of the Schedule of Conditions. Seller retains
its rights of termination under Clause 18.2.
CLAUSE 3 - SERVICES AND CHARGES
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The Seller shall carry out, or cause to be carried out by an approved
organisation, the Services defined in Column A below, and the Buyer shall pay
the charges defined in Column B in respect of the Services defined in Column A.
The seller shall maintain FAA repair station approval for the duration of this
agreement.
COLUMN A COLUMN B
3.1 The arrangements for the collection Charges inclusive in Firm Fixed
and transportation of each Unit from prices set forth in Annex B of this
Buyer at JFK Airport at New York U.S.A. to Agreement.
the Seller's facilities.
3.2 The provision of labour at the Seller's Charges inclusive in Firm Fixed prices
facilities, for the unpacking, deblanking, set forth in Annex B of this Agreement.
receipt inspection and completion of the
Checking List, a copy of which is at
Annex A for each Unit.
3.3 To the extent that it is reasonably available, Charges inclusive in Firm Fixed prices
the provision of loan Accessories or Parts. set forth in Annex B of this Agreement.
to replace such items found missing or
damaged on receipt to enable each Unit to be
tested. The Seller will, prior to returning
each Unit to the Buyer, remove and re-inspect
such loan Accessories or Parts, and endorse
any relevant documents accordingly.
3.4 The provision of labour at the Seller's Charges inclusive in Firm Fixed prices
facilities to complete the engine health set forth in Annex B of this Agreement.
checks identified at Annex H.
3.5 To the extent that it is reasonably available, Charges inclusive in Firm Fixed prices
the provision of test bed availability at the set forth in Annex B of this agreement.
Seller's facilities, to complete a preinduction
test bed run of each Unit following its receipt
at the Seller's facilities.
3.6 The provision of fuel and oil for all test Charges inclusive in Firm Fixed prices
bed runs. set forth in Annex B of this Agreement.
3.7 The provision of labour at the Seller's Charges inclusive in Firm Fixed prices
facilities, for the strip, overhaul, set forth in Annex B of this Agreement.
Refurbishment, Repair, modification,
calibration, inspection, reassembly and
other work, as required and as necessary
to restore any of the Units, listed in
Annex B, to a serviceable condition in
conformity with the approved data and or
standards, as laid down from time to time
by the FAA and/or other applicable
regulatory agency and the Buyer, and in
the turnaround time defined in Annex B.
3.8 Sub-contracted work in support of the Charges inclusive in Firm Fixed prices
Services defined in Main Agreement set forth in Annex B of this Agreement.
Clause 3.7.
3.9 The provision of Pooled Parts to facilitate Charges inclusive in Firm Fixed prices
the Services. set forth in Annex B of this Agreement.
3.10 The provision of test bed availability at Charges inclusive in Firm Fixed prices
the Seller's facilities, to complete a test set forth in Annex B of this Agreement.
bed run, of each Unit, on completion of the
Services defined in Main Agreement Clause 3.7.
3.11 The handling where practicable and where the
Buyer and the manufacturer allow
of manufacturer's warranties on behalf of the
Buyer, as follows:
3.11.1 The taking of action with the Charges inclusive in
manufacturer in respect of any Firm Fixed prices
warranties, to which the Buyer set forth in Annex B
is entitled within the limitations of this Agreement.
expressed in such warranties and in
accordance with their governing
conditions.
3.11.2 The preparation of such warranty Charges inclusive in
claims in the required form and, Firm Fixed prices
where applicable, on the set forth in Annex B
appropriate documentation. of this Agreement.
3.11.3 The assignment to the Buyer Charges inclusive in
of the benefit of any warranties Firm Fixed prices
or indemnities obtained by the set forth in Annex B
Seller from manufacturers of this Agreement.
(where permitted) in respect of
Parts and materials purchased by
the Seller and used in the
performance of the Services.
3.12 The provision of labour at the Seller's Charges inclusive in
facilities, for the blanking, packing and Firm Fixed prices
despatch inspection of each Unit, and set forth in Annex B
the completion of the Checking List of this Agreement.
for each Unit, a copy of which is at
Annex A.
3.13 The transportation and Redelivery Charges inclusive in
of each Unit from the Seller's Firm Fixed prices
facilities to Buyer at JFK International set forth in Annex B
Airport at New York. U.S.A. in of this Agreement.
accordance with the provisions of Clause
4.9 below.
3.14 Despatch to the Buyer of the following Charges inclusive in
documents after collection of the Unit by Firm Fixed prices
the Buyer. set forth in Annex B
of this Agreement.
3.14.1 Preliminary and final invoices
including sub-contractors
charges for the Services.
3.14.2 Authorised FAA Release Certificate.
3.14.3 Serviceable Label.
3.14.4 Engineering Report.
3.14.5 Accessory Log Sheet.
3.14.6 Engine Inspection and Test Certificate.
3.14.7 Modification statement.
3.14.8 Life Limited Parts List, including a list of those
individual Life Limited Parts replaced.
3.14.9 Log Book.
Items 3.14.2, 3.14.3, 3.14.6 and 3.14.9 shall be despatched
with the engine and/or within 72 hours of despatch of the
Unit as appropriate, and the remainder within 30 days.
Seller shall additionally forward microfilm copy and
originals of "dirty finger print" shop documentation within
90 days of despatch of engine.
3.15 The provision of advice about modifications. Charges inclusive in Firm Fixed prices
set forth in Annex B of this Agreement.
3.16 At the request of the Buyer, the provision of Charges inclusive in Firm Fixed prices
qualified specialist support to resolve set forth in Annex B of this Agreement.
technical problems associated with the
provision of the Services.
3.17 The presentation to the Local Charges inclusive in Firm Fixed prices
Representative. of invoices, prior set forth in Annex B of this Agreement
to submission to the Buyer, to
enable the local Representative
to validate such invoices.
3.18 The provision on both a regular Charges inclusive in Firm Fixed prices
and an ad hoc basis, to the Buyer, set forth in Annex B of this Agreement.
of reports about the status of work
in progress. Such advice will be
forwarded to the Buyer in a standard
form a copy of which is at Annex E.
3.19 The provision to the Buyer, in the Charges inclusive in Firm Fixed prices
event of termination of this Agreement, set forth in Annex B of this Agreement.
of all relevant technical records and
data relating to the Units at the date
of termination, and upon the reasonable
demand of the Buyer for additional
information related to work carried out
an any Units by the Seller during the
period such Units were under its control.
3.20 With the exception of those excluded At the manufacturer's catalogue price,
items listed in Clause 3.21 below, the current at the time of issue to the Unit,
provision of materials, Parts and or at 75 percent of the manufacturer's
modification kits, by the Seller to complete catalogue price in the case of Used
the Services defined in Main Agreement Serviceable Parts, consistent with the
Clause 3.7. agreed technical specification. In
addition, where the Seller purchases a
new - 7J modification kit and where
the Buyer submits the removed -7A
Parts to the manufacturer in order to
generate a price discount on that Kit
and where a discount results, then
such discount shall be passed on to
the Buyer. In addition. Used
Serviceable Life Limited Parts shall be
charged at the cost incurred by the
Seller.
3.21 The provison of the following At the manufacturer's catalogue
materials and Parts by the price current at the time of
Seller to complete the Services issue to the Unit or in the
defined in Main Agreement case of Used Serviceable Parts,
Clause 3.7: then at the percentage of the
manufacturers catalogue price
set forth below:
3.21.1 Diffuser Case. 35 percent
3.21.2 Exhaust Case. 35 percent
3.21.3 Low Pressure Turbine Case. 35 percent
3.21.4 Intermediate Case. 35 percent
3.21.5 1 Degree Fixed Stator. 60 percent
3.21.6 Fan Exit Case. 35 percent
3.21.7 Exhaust Plug. 35 percent
3.22 The handling of the inclusive list A fee of 9 percent of the
of Parts defined in Main Agreement manufacturer's catalogue price
Clause 3.21 provided F.O.C. by the current at the time of issue
Buyer to the Seller for the sole to the Unit. The maximum fee
reason of inability of the Seller per Part shall be $4500 US.
to match the substantiated purchase
price obtainable by the Buyer.
3.23 The provision of labour at the Seller's As set forth in the Seller's
facilities, to Repair Parts which current JT9D component repair
are subsequently returned to the catalogue. Work not listed in
Buyers Stock Holding. the Sellers current JT9D
component repair catalogue
shall be charged at $46.50 US
per booked manhour.
3.24 The storage, to a reasonable level,
of the Buyers property in a Buyer's
Stock Holding.
3.25 The provision of office accommodation, All costs incurred by the
including the use of telephone, telex Seller (except fixed overhead
and facsimile services necessary for costs).
the performance of the Agreement, for
the Local Representative.
3.26 The provision of labour at the Seller's $46.50 US per booked manhour.
facilities, to rectify damaged Unit
transportation equipment.
3.27 The provision of materials and Parts At the manufacturer's
by the Seller to complete the Repairs catalogue price, current at
defined in Main Agreement Clause 3.26. the time of issue to the
equipment, plus 9 percent of
that price. The maximum fee
per Part or set of Parts
shall be $1500 US.
3.28 Upon the Buyer's request, and to the $720 US per 8 hour man day
extent that it is reasonably available, or part thereof plus the cost
the provision of technical assistance to the Seller of
in the form of working parties at any transportation, accommodation,
location requested by the Buyer. meals, laundry and allowances
paid to the working party
members in accordance with
the Seller's Staff
regulations.
3.29 Subject to Buyer's prior approval and $93.00 US per booked manhour.
where Seller is reasonable able to do so,
the design and development of approved
repair schemes and modifications for the
Units.
3.30 At the Buyer's request only, overtime At an additional charge of
working as follows: $46.50 US per booked manhour.
3.31 The handling of the Buyer's scrap
material in the following manner:
3.31.1 The storage, for up to 30 days Charges inclusive in Firm
after the return of the Unit Fixed prices set forth in
to the Buyer, of all scrapped Annex B of this Agreement.
Parts or sets of Parts whose
latest catalogue replacement
price exceeds $10.000 US
Dollars. The Seller may, upon
expiry of this period, dispose
of such Parts or sets of Parts
without further reference to the
Buyer. The Buyer's account will
be credited with any proceeds
forthcoming from any disposal.
3.31.2 At the Buyer's request, the All costs incurred by the
return of any scrapped Parts or Seller.
sets of Parts to OWS for onward
shipment to a destination of the
Buyer's choice. All necessary
export documentation will be
prepared by a handling agent
appointed by the Buyer.
3.31.3 The packing, and preparation for All costs incurred by the
shipment, of all scrapped Parts or Seller.
sets of Parts for return to the
Buyer in accordance with Main
Agreement Clause 3.31.2
3.32 The arrangements, in the event of All costs incurred by the
termination of this Agreement, for the Seller.
return to the Buyer of all material held
in the Buyer's Stock Holding.
3.33 The handling of the following inclusive Charges inclusive in Firm
list of Parts provided FOC by the Buyer, Fixed prices set forth in
to the Seller to complete the Services Annex B of this Agreement.
defined in Main Agreement Clause 3.7:
3.33.1 Fan hub.
3.33.2 1 Degree Fixed Stator.
3.34 The provision of labour at the Seller's As set forth in the Seller's
facilities to Repair Parts, pursuant to then current JT9D component
repair catalogue.
CLAUSE 4 - OTHER CONDITIONS
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4.1 The labour charges detailed in Main Agreement Clause 3 shall apply to Units
inducted by the Seller before 1st January 1997.
Any increases in charges for work on Units inducted after this date shall
be notified in the manner specified in Schedule Caluse 15. Such increases
shall be effective on 1st January each year and shall only apply to Units
inducted after that date.
The then current Firm Fixed price as set forth in Annex B will be increased
by the effective escalation to actual labour costs incurred by the Seller.
Such escalaton shall apply to all Firm Fixed Prices.
Any increases in then current labour charges quoted in Main Agreement
Clause 3 and 4.4 will be increased by the effective escalation to actual
labour costs incurred by the Seller.
Any increases in then current maximum material handling fees quoted in Main
Agreement Clause 3 will be increased by the effective escalation in the
manufacturer's catalogue price.
4.2 Clause 8.2 of the Schedule of Standard Conditions shall be replaced by:
The Turnround Time referred to in Annex B will commence at the mutually
agreed Unit induction date of the date when all the doucumetation defined
in Schedule Clause 3.2 except 3.2.3.3 has been received by the Seller or
the date when the Unit is received at the Seller's facility in Wales,
whichever is the latest. The Turnround Time shall be deemed to end when the
same Unit is available for despatch from the Seller's facility in Wales.
4.3 If the Seller fails to meet, for a Unit the turnround time defined at Annex
B, for reasons other than those caused by the Buyer and/or its Affiliates
or for reasons beyond the control of the Seller, and, as a result, one of
the Buyer's aircraft is AOG, the Buyer shall use its best endeavors to
maintain the aircraft in operation by the use of any other available
Buyer's Unit. If the Buyer concludes that it requires to lease, or continue
to lease a replacement Unit, the Seller will lease such replacement Unit at
the Seller's expense, or at its option, reimburse the lump sum or periodic
charge for a period ending no later than the date of Redelivery of the
subject Buyer's Unit to Seller's designated carrier at JFK International
Airport, New York, U.S.A. Where the terms of such lease provide, in
addition to a lump sum and or periodic charge, for a flying hour or cyclic
charge such flying hour or cyclic charge shall be invoiced to the Buyer by
the Seller. The Seller will use best endeavours to provide lease Units to
Seller's designated carrier at JFK International Airport, New York, U.S.A
within 72 hours of request by the Buyer. In the event that the actual
turnround time is less than that defined at Annex B, the Buyer will pay the
Seller $500 US per day for each day that the actual Turnround plus
transportation time is less than the turnround time defined at Annex B.
4.4 All Units input for Repair hereunder shall be processed in accordance with
requirements as specified in
Buyer's Purchase Order or amendment thereto. Should Seller determine
that Buyer's requirements are inadequate to comply with the
maintenance specification and Repair of Buyer's Units to those
requirements is likely to result in a test bed reject. Seller will
provide Buyer with a recommended workscope amendment. Should Buyer
reject Seller's recommendation, Buyer will be invoiced following a
test bed reject, an additional charge of $20,000 US per module removed
and/or reworked for the subsequent rework and retest of the affected
Units.
4.5 The Firm Fixed prices set forth in Annex B of this Agreement are based
upon the mutually agreed workscope detailed in Annex 1 of this
Agreement. These Firm Fixed prices exclude charges for the Repair or
replacement of those Parts where it has been determined to Seller's
reasonable satisfaction that such Parts require repair or replacement
for, or as a result of:
4.5.1 An accident.
4.5.2 Foreign Object Damage which is the primary cause of an
engine removal.
4.5.3 The incorporation of Service Bulletins not recommended by
the Seller.
4.5.4 Airworthiness Directives or other Mandatory Requirements
issued subsequent to the date of execution of this
Agreement.
4.5.5 Damage from a Military or Terrorist action.
4.5.6 An act of God.
4.5.7 Improper or negligent installation, operation or maintenance
of Buyer's Units.
4.5.8 Experimental test applied to the Units, unless performed by
the Seller.
4.5.9 Use of Parts, components or modules which have previously
had repairs applied which do not conform with the
Manufacturer's Overhaul Manual.
4.6 The Firm Fixed prices quoted in Annex B are based upon receipt by
Seller of a full Powerplant excluding the following items:
4.6.1 Nosecowl and its associated components.
4.6.2 Constant Speed Drive.
4.6.3 A.C. Generator.
4.6.4 Hydraulic Pump.
4.6.5 Thrust Reverser Pneumatic Drive Unit.
4.7 Security
4.7.1 Possessory Lien Under UK Law
In the event that (i) the Buyer fails to pay any sum due to
the Seller including interest on past duet amount, under
this Agreement on the due date (the "Indebtedness") or any
sum due to FINOVA Capital Corporation under any financing
arrangement including interest thereunder on the due date or
any sum due to any lien or security interest holder on the
Units or (ii) shall become insolvent or generally fail to
pay, or admit in writing its inability to pay debts as they
become due or (iii) the Buyer shall apply for, consent to,
or acquiesce in the appointment of a
trustee, receiver, sequestrator or other custodian for Buyer of
any property or Buyer or make a general assignment for the
benefit of creditors; or (iv) in the absence of such application
consent or acquiescence, a trustee, receiver, sequestrator or
other custodian shall be appointed for Buyer or for a substantial
part of the property of Buyer and not be discharged within 30
days; or (v) any bankruptcy, reorganization, debt arrangement, or
other cause or proceeding under any bankruptcy or insolvency law,
or any dissolution, winding up or liquidation proceeding, shall
be commenced in respect of Buyer and, if not commenced by Buyer,
shall result in the entry of an order for relief or shall remain
for 30 days undismissed; or (vi) the Buyer shall take any action
to authorize, or in furtherance of, any of the foregoing; any or
all of the foregoing an "Event of Default," then the Seller shall
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have a lien on all Units in the possession of the Seller for all
monies and liabilities due, owing or incurred by the Buyer to the
Seller under this agreement. The Seller may at any time after
such lien has arisen give notice to the Buyer of its intention to
sell all or any of the Units and if all the monies and
liabilities due, owing or incurred by the Buyer to the Seller are
not paid or discharged in full within 28 days of the date of such
notice, the Seller shall be entitled without further notice to
the Buyer to sell or otherwise dispose of all or any of the
Units. The Seller shall be entitled to deduct from the proceeds
of sale all costs and expenses relating to the storage of the
Units and the sale or disposal thereof and the net proceeds of
sale shall be applied by the Seller in or towards satisfaction
and discharge of the monies and liabilities due, owing or
incurred by the Buyer to the Seller.
4.7.2 CONSENSUAL LIEN/SECURITY INTEREST UNDER US LAW
(a) In order to secure the full and punctual payment of the
Indebtedness. Buyer hereby pledges, assigns and grants to
Seller or its assignees a first priority security interest
in the Units inducted into Seller's facilities under this
Agreement and the proceeds and products thereof (the
"Collateral"). The security interests to and in favor of
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Seller herein created are called the "Security Interest".
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This Security Interest shall continue in full force and
effect until the Indebtedness has been fully paid. After
the, occurrence and during the continuance of an Event of
Default, if the proceeds from the sale of the Collateral are
not sufficient to satisfy all amounts due and owing to
Seller by Buyer, Buyer acknowledges and agrees that Buyer
shall continue to be liable for any amounts which remain
outstanding. Until the Indebtedness is satisfied in full,
Buyer shall not permit any lien, claim or encumbrance to
remain against any of the Collateral, except any lien
existing as of the date hereof to and in favor of FINOVA
Capital Corporation, a Delaware corporation, or any Lien for
taxes due but not yet payable. Buyer shall perform at Buyers
expense and prior to any work performed on the Units by
Seller, any and all steps required to perfect, maintain and
protect the Seller's Security Interest in the Collateral,
including without limitation executing and filing financing
and continuation statements and documents with FAA in the
form and substance satisfactory to the Seller. If any Event
of Default shall occur, the Seller shall have, in addition
to all
other rights and remedies available at law and in
equity, the rights and remedies of a secured party
under the Uniform Commercial Code as codified in the
State of New York, U.S.A. Further, the Seller may,
without notice, demand or legal process of any due and
owing under this agreement and take physical possession
of the Collateral and the Seller may sell and deliver
any or all Collateral at public or private sales. In a
manner that the Seller deems reasonable. The Seller
shall be entitled to deduct from the proceeds of such
sales all costs and expenses relating to the storage of
the Units and the sale or disposal thereof and the net
proceeds of the sale shall be applied by the Seller
toward the satisfaction and discharge of the
Indebtedness. Because the Collateral could be difficult
to preserve and dispose of and is subject to complex
maintenance and management, the Seller shall have the
widest possible latitude to preserve and protect such
Collateral and the Seller's Security Interest therein,
including the appointment of a receiver to preserve,
possess and protect the Collateral. The Buyer will
provide evidence of Seller's first priority security
interest in such Units at the time of delivery of each
Unit as more fully described 4.8.3(a)
4.7.3 Attorney - In - Fact
Buyer hereby irrevocably constitutes and appoints
Seller or its assignees and any fact for the purpose of
carrying out, from time to time, in Seller or its
assignees' discretion, the terms of this Article, to
take any and all appropriate action and to execute any
and all documents and instruments which may be
necessary or desirable to accomplish the purposes of
this Article, and, without limiting the generality of
the foregoing, Buyer hereby gives Seller or its
assignees the power and right, on behalf of Buyer and
at Buyers expense, to do, at any time, or from time to
time, all acts and things which Seller or its assignees
deems necessary to protect its security interest and
rights herein including, but not limited to, the
execution on behalf of Buyer and the filing of this
Agreement or any other agreement, lien, financing
statement or notice required by applicable law in order
to perfect its security interest all as fully and
effectively as Buyer might do.
4.8 Clause 14.1 of the Schedule of Standard Conditions shall be replaced
with:
Payment Terms
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4.8.1 For the first eight Units inducted into the Seller's facilities
for conversion to - 7J specification under this Agreement, the
Buyer will pay the Seller or its assignees the principal amount
of one twenty-fourth (1/24) of the conversion cost for each
such Unit and interest thereon, on the penultimate working day
of the month by wire transfer of immediately available funds
beginning in the month that the subject Unit is despatched by
the Seller. Interest on the principal amount owing for each
shop visit will begin accruing when such Unit is despatched by
the Seller and will accrue at the rate of US Prime as
established by Citicorp from time to time, plus two percent
until full payment is made for each Unit. In any event, for
such
Units shop visit, all amounts, including principal and interest owed
by the Buyer shall be paid in full no later than 24 months after
such Unit was despatched by Seller.
4.8.2 For Units (other than the eight Units described in Clauses 4.8.1.)
inducted into Seller's facilities for refurbishment under this
agreement, the Seller will submit its charges to the Buyer for
payment, and Buyer shall pay such charges, within 60 days of the
date of despatching of the Unit to the Buyer.
4.8.3 As a condition precedent of Seller's extending the payment terms set
forth in Clauses 4.8.1 and 4.8.2, the following conditions must be
satisfied:
(a) The Buyer shall, at its sole cost and expense and prior to any
work performed by Seller on any Unit, deliver to Seller a
report of an independent title search company, reasonably
acceptable to Seller, showing that the Units inducted into the
Seller's facilities are free and clear of all liens, security
interests, encumbrances or claims or, in the alternative, if a
creditor has a lien, security interest, encumbrance or claim
against such Units. Buyer shall cause such creditor to
subordinate its rights pursuant to an intercreditor Agreement
in form and substance reasonably satisfactory to Seller.
(b) The Seller shall be satisfied in its sole and absolute
discretion that the fair market value of such Units is at
least equal to 150% times the amount expected to be due and
owing to Seller by Buyer under this agreement with respect to
the services performed on such Units.
(c) Buyer shall, at its sole cost and expense and prior to any
work performed by Seller on any Unit execute and file
documents reasonably requested by Seller containing sufficient
legal descriptions of such Units and otherwise in form and
substance necessary to perfect Seller's Security Interest in
such Units.
4.8.4 At Buyer's option, Buyer may request Seller to submit its charges to
the Buyer for payment and the Buyer shall pay such charges, within
30 days of the date of despatching of the Unit to the Buyer. In such
case, the conditions precedent set forth in clause 4.8.3 above are
not required to be met by Buyer if Buyer pays within 30 days of
despatch.
4.9 Clauses 7.1, 7.2, 10.1 and 16.1 of the Schedule of Standard Conditions
shall be replaced by the following:
4.9.1 Buyer shall Deliver Unit(s) to Seller for Repair pursuant to
this Agreement Free Carrier (FCA) JFK International Airport,
Jamaica, New York, U.S.A (as defined by Incoterms 1990). In
conformance with Incoterms 1990, for purposes of this Clause
4.9 GEAES Ltd. is defined as the Seller and Tower is defined
as the Buyer. Title and risk of loss or damage shall pass to
Seller at time and place of Delivery.
4.9.2 Seller shall Redeliver said Unit(s) to Buyer, Delivered
Duties Unpaid ("DDU") JFK International Airport, Jamaica,
New York, U.S.A. (as defined by Incoterms 1990) utilising
the freight forwarder/carrier of its choice. For purposes of
this definition, GEAES Ltd. shall fulfill the obligations of
Seller; Tower shall fulfill the obligations of Buyer. Title
and risk of loss or damage shall pass to Buyer at time and
place of Redelivery.
4.9.3 Seller shall act as both Importer and Exporter of record for
the United Kingdom: Buyer shall act as both Importer and
Exporter of record for the U.S.A.
4.10 Clause 10.2 of the Schedule of Standard Conditions shall be replaced
by the following:
Parts, Material, labor and associated overhead incorporated into
Buyer's Units, as required in performing Services on Buyer's Units
hereunder, shall be deemed to have been sold to Buyer, and title to
such Parts and Services thereon shall pass to Buyer upon assignment
of such parts, materials, labor and associated overhead to Buyer's
Units. Risk of loss or damage to such parts and work thereon shall
pass to Buyer upon Redelivery to Buyer. Title to and risk of loss of
or damage to any Pooled Parts removed from Buyer's Units, which are
replaced by other Pooled Parts, shall pass to Seller upon removal of
such parts from Buyer's Units. Final acceptance of Repaired Units
shall take place upon Redelivery in accordance with the provisions of
Main Agreement Clause 4.9.2 above.
4.11 Seller shall provide Buyer with a list of vendors providing sub
contract services under this Agreement. Buyer shall grant prior
approval of the vendors, such approval shall not be unreasonably
withheld and shall be based solely on technical requirements. Should
Buyer decline to grant approval for one of Seller's vendors, then
Seller shall compensated for any additional costs incurred.
4.12 Clause 11.1 of the Schedule of Standard Conditions shall be replaced
by the following:
The Seller warrants that if, for any Unit, any defect, failure or
malfunction occurs which is proven to be due to faulty workmanship as
a result of the provision of the Services within 12 months of
Redelivery, or within 5 calendar months or within 2000 flying hours of
installation whichever occurs last, then the Seller shall Repair such
defect, failure or malfunction of that Unit without further charge.
If, during the Repair of that defect, failure or malfunction, any
betterment is included, then the Seller shall invoice the Buyer in
accordance with the terms of Main Agreement Clause 3.
4.13 Buyer and Seller shall agree an input schedule for the Units covered
by the Agreement. In the event
that Seller is initially unable to meet such requirement, then Seller at
its option may either sub contract the Unit with prior approval by the
Buyer to a vendor to perform the Services under this Agreement or advise
Buyer to seek an alternative vendor for that particular Unit under a
separate agreement between Buyer and the alternative vendor.
4.14 Clause 3.2.3.3 of the Schedule of Standard Conditions shall be replaced by
the following:
Hours and cycles since new or last overhauled as applicable.
CLAUSE 5 - NOTICES
------------------
5.1 All notices to be given hereunder by either party to the other shall
be by telex or facsimile, and confirmed in writing by registered or
recorded mail at the following locations:
GE AIRCRAFT ENGINE SERVICES LIMITED
-----------------------------------
Marketing Director
GE Aircraft Engine Services Limited
Caerphilly Road
Nantgarw
Cardiff
Xxxxx Xxxxxxxxx
XX0 0XX
Xxxxxx Xxxxxxx
Telex: 498319
SITA: QUKBVBA
FAX: 00(0) 0000 000000
THE BUYER
---------
Chairman
Tower Air, Inc.
Hangar 00
XXX Xxxxxxxxxxxxx Xxxxxxx
Xxxxxxx
Xxx Xxxx 00000
X.X.X.
FAX: 000 000 0000
The effective date of any notice given in connection with this
Agreement shall be the date on which it is telexed or sent by
facsimile to the addressee.
ANNEX A TO
----------
THE MAIN AGREEMENT
------------------
GEAES.TOW-201.001
-----------------
CHECKING LISTS
--------------
The Checking Lists, referred to at Main Agreement Clauses 3.2 and 3.12 are
attached as Appendices to this Annex.
Appendices:
1. Checking list for JT9D engine
GE AIRCRAFT ENGINE SERVICES LIMITED
------------------------------------
OPERATOR ENGINE & P/P BOOKING IN LIST
------------------------------------
W.O.O No. N/R = NOT REQUIRED ENGINE & P/P BOOKING OUT LIST
------------------------------------
ENGINE No. N/R = NOT APPLICABLE
------------------------------------
DATE RECEIVED P & W JT9 ENGINES PAGE 1 OF 6
-----------------------------------------------------------------------------------------------------------------------------
IPC REF. TYP PART. NO ALT PT No. DESCRIPTION IN REMARKS STAMP OUT REMARKS STAMP
-----------------------------------------------------------------------------------------------------------------------------
24-09-09 AV11A11-41 XX00X0000 0 XXX XXXXXXXX VALVE
-----------------------------------------------------------------------------------------------------------------------------
71-20-01 65B90355-3 FRONT CONE BOLTS
-----------------------------------------------------------------------------------------------------------------------------
71-20-01 65B90355-5 REAR CONE BOLT & SUPPORT
-----------------------------------------------------------------------------------------------------------------------------
72-31/1-200 676758 INLET CONE (SPINNER)
-----------------------------------------------------------------------------------------------------------------------------
72-33/1-20 657350 VIB PICK UP & BRKT (FAN CASE)
-----------------------------------------------------------------------------------------------------------------------------
72-41/10-3 657352 VIB PICK UP & BRKT (DIFFUSER CASE)
-----------------------------------------------------------------------------------------------------------------------------
72-41/3-10 591317 HP AIR BLEED VALVE
-----------------------------------------------------------------------------------------------------------------------------
72-53/1-1A 672282 FIRESEAL (4 PARTS)
-----------------------------------------------------------------------------------------------------------------------------
72-53/1-17 657353 VIB PICK UP BRKT (EX CASE)
-----------------------------------------------------------------------------------------------------------------------------
ENGINE DATA PLATE
-----------------------------------------------------------------------------------------------------------------------------
72-61/4-1A 613769 PUMP, SCAVENGE, ANGLE GEARBOX
-----------------------------------------------------------------------------------------------------------------------------
72-61/13-1A 755190 PUMP, MAIN OIL SCAVENGE
-----------------------------------------------------------------------------------------------------------------------------
72-61/15-17 755217 PUMP, SCAVENGE No. 3 & 4 BRNG
-----------------------------------------------------------------------------------------------------------------------------
72-61/12-1A 755184 PUMP, MAIN OIL PRESSURE
-----------------------------------------------------------------------------------------------------------------------------
73-11/1-11B 589400 PUMP ASSY FUEL ENGINE DRIVEN
-----------------------------------------------------------------------------------------------------------------------------
73-12/1-1A 743963 FUEL PRESSURE & DUMP VALVE
-----------------------------------------------------------------------------------------------------------------------------
73-13/1-12 729455 FUEL NOZZLE & SUPPT ASSY (20)
-----------------------------------------------------------------------------------------------------------------------------
73-14/1-2B 711659 646526 FUEL HEATER
-----------------------------------------------------------------------------------------------------------------------------
73-14/1-2B A60302B FUEL FILTER DIFF PRES SWITCH
-----------------------------------------------------------------------------------------------------------------------------
73-14/1-24 A76602K VALVE SOL, AIR S/O FUEL HEATER
-----------------------------------------------------------------------------------------------------------------------------
73-21/1-6E 759100-1 744800-1 FUEL CONTROL UNIT
-----------------------------------------------------------------------------------------------------------------------------
75-11/1/1A 2700100D VALVE ANTI-ICING, STATOR VANE
-----------------------------------------------------------------------------------------------------------------------------
75-21/1-2D 769770 663189 VALVE BREATHER PRESSURIZING
-----------------------------------------------------------------------------------------------------------------------------
75-31/4-6 747955-2 747955-2 EVC, REAR COMP STATOR
-----------------------------------------------------------------------------------------------------------------------------
75-31/1-1 720001-4-6 ACTUATOR INT & COMP VANE (3.0 BLEED)
-----------------------------------------------------------------------------------------------------------------------------
75-31/4-1 719999-1/-3 ACTUATOR REAR COMP VANE (EVC ACT)
-----------------------------------------------------------------------------------------------------------------------------
75-31/2-3A 677415 VALVE, CYLINDER, BLEED ACT
-----------------------------------------------------------------------------------------------------------------------------
75-31/15-1 711483 694927 CONTROL ASSY BLEED VALVE UPPER
-----------------------------------------------------------------------------------------------------------------------------
ISSUE________________ DATE________________ CHECK "IN" SIG_________________ DATE_____________
CHECK "OUT" SIG________________ DATE_____________
GE AIRCRAFT ENGINE SERVICES LIMITED
-------------------------------------
OPERATOR ENGINE & P/P BOOKING IN LIST
------------------------------------- ENGINE & P/P BOOKING OUT LIST
W.O.O. No N/R = NOT REQUIRED
-------------------------------------
ENGINE No. N/A = NOT APPLICABLE
-------------------------------------
DATE RECEIVED P & W JT9 ENGINES PAGE 2 OF 6
------------------------------------------------------------------------------------------------------------------------------------
IPC REF. TYP PART NO. ALT PT No. DESCRIPTION IN REMARKS STAMP OUT REMARKS STAMP
------------------------------------------------------------------------------------------------------------------------------------
75-31/15-9 711.1S.1 691927 CONTROL ASSY BLEED VALVE LOWER
------------------------------------------------------------------------------------------------------------------------------------
75-31/6-1 718702 FUEL FILTER/EVC
------------------------------------------------------------------------------------------------------------------------------------
75-31/17-7A A39710K A39709 PRESSURE RATIO BLEED CONTROL VALVE
------------------------------------------------------------------------------------------------------------------------------------
75-31/8-1 705942 BLEED CONVERTOR
------------------------------------------------------------------------------------------------------------------------------------
75-31/1-9 A55201D SURGE DETECTOR CONTROL
------------------------------------------------------------------------------------------------------------------------------------
75-31/11-1G 771169 RESTRICTOR PS4 TUBE
------------------------------------------------------------------------------------------------------------------------------------
75-31/16-9 426V600B OVERIDE BLEED VALVE
------------------------------------------------------------------------------------------------------------------------------------
75-31/16-14 449V450-1B 3 WAY VALVE
------------------------------------------------------------------------------------------------------------------------------------
75-31/17-1 710070 AIR BLEED ACCUMULATOR
------------------------------------------------------------------------------------------------------------------------------------
75-31/24-1A A2724133711 BLEED AIR SHUT OFF VALVE (2)
------------------------------------------------------------------------------------------------------------------------------------
75-31/24-17 21SN01-89 PRESSURE SWITCH ASSY (2)
------------------------------------------------------------------------------------------------------------------------------------
77-21/1-10 THERMOCOUPLE (TT6)
------------------------------------------------------------------------------------------------------------------------------------
77-22/1-1 771442 THERMOCOUPLE BOX & CABLE TT6
------------------------------------------------------------------------------------------------------------------------------------
77-11/1-1 710.125 PT7 PROBES
------------------------------------------------------------------------------------------------------------------------------------
79-11/1-1F 733350 OIL TANK
------------------------------------------------------------------------------------------------------------------------------------
79-21/1-8 662492 OIL TANK DRAIN VALVE
------------------------------------------------------------------------------------------------------------------------------------
79-21/1-41 684100E FLOW CONTROL THERMOSTAT OIL COOLER
------------------------------------------------------------------------------------------------------------------------------------
79-22/1-1 728973 729202 OIL COOLER
------------------------------------------------------------------------------------------------------------------------------------
82-21/1-8 715537 WATER INJECTION REGULATOR
------------------------------------------------------------------------------------------------------------------------------------
82-22/1-1B 696V300A WATER SIGNAL CHECK VALVE
------------------------------------------------------------------------------------------------------------------------------------
705677 CSD QUAD CLAMP
------------------------------------------------------------------------------------------------------------------------------------
1584718-1 GEN QUAD CLAMP
------------------------------------------------------------------------------------------------------------------------------------
75-31/5-2A 666V100B 656468 BLEED VALVE (ALTAIR) 3.5 VALVE (x3)
------------------------------------------------------------------------------------------------------------------------------------
No. 4 BRNG CHIP DETECTOR
------------------------------------------------------------------------------------------------------------------------------------
No. 3 BRNG CHIP DETECTOR
------------------------------------------------------------------------------------------------------------------------------------
OIL & SCAVENGE PUMP CHIP DETECTORS
------------------------------------------------------------------------------------------------------------------------------------
INTAKE BLANK
------------------------------------------------------------------------------------------------------------------------------------
EXHAUST UNIT BLANK
------------------------------------------------------------------------------------------------------------------------------------
ISSUE________ DATE_______ CHECK "IN" SIG_________ DATE___________
CHECK "OUT" SIG________ DATE___________
GE AIRCRAFT ENGINE SERVICES LIMITED
----------------------------------------------------
OPERATOR ENGINE & P/P BOOKING IN LIST
----------------------------------------------------
W.O.O. No. N/R = NOT REQUIRED ENGINE & P/P BOOKING OUT LIST
----------------------------------------------------
ENGINE No. N/A = NOT APPLICABLE
----------------------------------------------------
DATE RECEIVED P & W JT9 ENGINES PAGE 3 OF 6
-------------------------------------------------------------------------------------------------------------------------------
IPC REF. TYP PART NO. ALT PT No. DESCRIPTION IN REMARKS STAMP OUT REMARKS STAMP
-------------------------------------------------------------------------------------------------------------------------------
STARTER ERECTION BLANK
-------------------------------------------------------------------------------------------------------------------------------
HYDRAULIC BLANK
-------------------------------------------------------------------------------------------------------------------------------
C.D.S. BLANK
-------------------------------------------------------------------------------------------------------------------------------
GENERATOR BLANK
-------------------------------------------------------------------------------------------------------------------------------
THRUST REVERSER ACTUATOR BLANK
-------------------------------------------------------------------------------------------------------------------------------
FUEL MODULE BLANK
-------------------------------------------------------------------------------------------------------------------------------
MODULES
-------------------------------------------------------------------------------------------------------------------------------
G 72-31 FAN ROTOR
-------------------------------------------------------------------------------------------------------------------------------
A 72-32 FRONT COMP ROTOR & STATOR ASSY
-------------------------------------------------------------------------------------------------------------------------------
H 72-33 FAN CASE
-------------------------------------------------------------------------------------------------------------------------------
J 72-34 INTERMEDIATE CASE
-------------------------------------------------------------------------------------------------------------------------------
B 72-35 REAR COMP ROTOR & STATOR ASSY
-------------------------------------------------------------------------------------------------------------------------------
K 71-11/1-11 DIFFUSER
-------------------------------------------------------------------------------------------------------------------------------
V 72-11/12 COMBUSTION & 1ST STAGE N.G.V.'S
-------------------------------------------------------------------------------------------------------------------------------
C 00-00 XXXX XXXX XXXXX XXXXXXX ASSY
-------------------------------------------------------------------------------------------------------------------------------
D 00-00 XXXXX XXXX XXXXX TURBINE ASSY
-------------------------------------------------------------------------------------------------------------------------------
L 72-56 TURBINE EXHAUST CASE
-------------------------------------------------------------------------------------------------------------------------------
E 72-61/1-1 ANGLE GEARBOX
-------------------------------------------------------------------------------------------------------------------------------
F 72-61/5-18 MAIN GEARBOX
-------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------------
AMS SPEC PART No. P/P DESCRIPTION
-------------------------------------------------------------------------------------------------------------------------------
71.11.030C 65B00722-1 NOSE COWL
-------------------------------------------------------------------------------------------------------------------------------
78.32010C 65B00731-2 TURBINE T/R SLEEVE
-------------------------------------------------------------------------------------------------------------------------------
65B97921-54 SWORD FAIRING
-------------------------------------------------------------------------------------------------------------------------------
78.32040C 65B97800-37 EXHAUST PLUG/TAIL PLUG
-------------------------------------------------------------------------------------------------------------------------------
SET OF ENGINE MOUNT BOLTS/NUTS
-------------------------------------------------------------------------------------------------------------------------------
24.11.010C 7051170 CSD
-------------------------------------------------------------------------------------------------------------------------------
24.21.010C 28B263-13A GENERATOR
-------------------------------------------------------------------------------------------------------------------------------
ISSUE________ DATE_________ CHECK "IN" SIG__________ DATE_________
CHECK "OUT" SIG_________ DATE_________
GE AIRCRAFT ENGINE SERVICES LIMITED
_____________________________________________
OPERATOR ENGINE & P/P BOOKING IN LIST
---------------------------------------------
W.O.O. No. N/R = NOT REQUIRED ENGINE & P/P BOOKING OUT LIST
---------------------------------------------
ENGINE No. N/R = NOT APPLICABLE
---------------------------------------------
DATE RECEIVED P & W JT9 ENGINES PAGE 4 OF 6
------------------------------------------------------------------------------------------------------------------------------------
IPC REF. TYP PART. NO. ALT PT No. DESCRIPTION IN REMARKS STAMP OUT REMARKS STAMP
------------------------------------------------------------------------------------------------------------------------------------
29.11.010C 350880 65066-06 HYDRAULIC PUMP
------------------------------------------------------------------------------------------------------------------------------------
80.11.010C 740179-2 STARTER
------------------------------------------------------------------------------------------------------------------------------------
80.11.020C 726574 STARTER SOV
------------------------------------------------------------------------------------------------------------------------------------
21SN.11-1B STARTER SOV SWITCH
------------------------------------------------------------------------------------------------------------------------------------
78.31.010C 126136-3-2 AIR MOTOR/ACT. PNEU. DRIVE UNIT
------------------------------------------------------------------------------------------------------------------------------------
1572T100-3 TALLY VALVE
------------------------------------------------------------------------------------------------------------------------------------
77-11-00 3567909-0001 CDX TRANSMITTER (EPR BIAS)
------------------------------------------------------------------------------------------------------------------------------------
78.31.020C 898108-2-1 BLOCKER VALVE/REG. SHUT OFF VALVE
------------------------------------------------------------------------------------------------------------------------------------
3BA-025-03 RAB SWITCH
------------------------------------------------------------------------------------------------------------------------------------
00-000-00 00-000-000 DIRECTIONAL CONTROL VALVE
------------------------------------------------------------------------------------------------------------------------------------
78.034.020C R1409M9-1 LOCKOUT ACT/SEQ. MECHANISM
------------------------------------------------------------------------------------------------------------------------------------
65B96268-5/9 MIXING BOX
------------------------------------------------------------------------------------------------------------------------------------
71-04-25/75 3567403-3001 30A22-1 OIL PRESSURE T/X T422
------------------------------------------------------------------------------------------------------------------------------------
71-04-25/75 21SN04-19A/123 OIL PRESSURE SWITCH S142
------------------------------------------------------------------------------------------------------------------------------------
71-04-25/78 21SN04-20A OIL DIFF PRESS SWITCH S046
------------------------------------------------------------------------------------------------------------------------------------
71-04-25/75 3567407-0101 BREATHER PRESS T/X T426
------------------------------------------------------------------------------------------------------------------------------------
370600-4 H.S.V.B
------------------------------------------------------------------------------------------------------------------------------------
36.11.050C 73173-6 H.S.B. AIR CONTROL
------------------------------------------------------------------------------------------------------------------------------------
129296-1-1 PRESSURE ANTICIPATOR
------------------------------------------------------------------------------------------------------------------------------------
71-01-25/88 34402-2A22-1 FUEL PRESSURE SWITCH T494
------------------------------------------------------------------------------------------------------------------------------------
73.31.010C 9-112-03 649160 FUEL FLOW TRANSMITTER
------------------------------------------------------------------------------------------------------------------------------------
71-04-25/87 34402-123A22-1 FUEL PRESSURE TRANSMITTER T495
------------------------------------------------------------------------------------------------------------------------------------
43925 IGNITOR BOX (X2)
------------------------------------------------------------------------------------------------------------------------------------
189100 PRE COOLER
------------------------------------------------------------------------------------------------------------------------------------
36.12.040C 65B91278-2 (1) UPPER/LOWER OUTFLOW VALVE
------------------------------------------------------------------------------------------------------------------------------------
36.11.010C 1BA11215 100670A1 CHECK VALVE/VALVE INTER BLEED
------------------------------------------------------------------------------------------------------------------------------------
36.11.020C 224685 PRESSURE RELIEF VALVE
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
ISSUE____________________ DATE__________________ CHECK "IN" SIG_____________ DATE_____________
CHECK "OUT" SIG____________ DATE_____________
GE AIRCRAFT ENGINE SERVICES LIMITED
_____________________________________________
OPERATOR ENGINE & P/P BOOKING IN LIST
---------------------------------------------
W.O.O. No. N/R = NOT REQUIRED ENGINE & P/P BOOKING OUT LIST
---------------------------------------------
ENGINE No. N/R = NOT APPLICABLE
---------------------------------------------
DATE RECEIVED P & W JT9 ENGINES PAGE 5 OF 6
------------------------------------------------------------------------------------------------------------------------------------
IPC REF. TYP PART. NO. ALT PT No. DESCRIPTION IN REMARKS STAMP OUT REMARKS STAMP
------------------------------------------------------------------------------------------------------------------------------------
65B96264-2 THROTTLE QUADRENT
------------------------------------------------------------------------------------------------------------------------------------
77.12.010C 7.12.137-2 N1 TACHO TRANSMITTER
------------------------------------------------------------------------------------------------------------------------------------
2CA19ADB9 472404 N2 TACHO TRANSMITTER
------------------------------------------------------------------------------------------------------------------------------------
78.31.050C 121421-1/3 SCREW XXXX (X4)
------------------------------------------------------------------------------------------------------------------------------------
P??4??-2 OIL QTY PROBE/OIL QTY INDICATOR
------------------------------------------------------------------------------------------------------------------------------------
6303 630300-06 CONDITION MOTOR CONTROL MOTOR
------------------------------------------------------------------------------------------------------------------------------------
71.04.25 157460-4 CSD OIL COOLER
------------------------------------------------------------------------------------------------------------------------------------
26.11.77 51291-005 FIREWIRE ELEMENT-U.A.
------------------------------------------------------------------------------------------------------------------------------------
51291-003 FIREWIRE ELEMENT-U.F.
------------------------------------------------------------------------------------------------------------------------------------
51291-002 FIREWIRE ELEMENT-L.F.
------------------------------------------------------------------------------------------------------------------------------------
51291-006 FIREWIRE ELEMENT-L.A.
------------------------------------------------------------------------------------------------------------------------------------
78.32.51 651198206-2 CASCADE VANES
------------------------------------------------------------------------------------------------------------------------------------
1238T100-1 2330-1 3-WAY MANUAL VALVE
------------------------------------------------------------------------------------------------------------------------------------
00-00-00-00 65393075-4 11.S.8. AIR CHECK VALVE
------------------------------------------------------------------------------------------------------------------------------------
STARTER MOUNTING PAD
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
ISSUE____________________ DATE__________________ CHECK "IN" SIG_____________ DATE_____________
CHECK "OUT" SIG____________ DATE_____________
GE AIRCRAFT ENGINE SERVICES LIMITED
--------------------------
OPERATOR
--------------------------
W.O.O. No. N/R = NOT REQUIRED ENGINE & P/P BOOKING IN LIST
--------------------------
ENGINE No. N/A = NOT APPLICABLE ENGINE & P/P BOOKING OUT LIST
--------------------------
DATE RECEIVED P & W JT9 ENGINES PAGE 6 OF 6
-------------------------------------------------------------------------------------------------------------------------------
REMARKS - ITEMS NOT RECEIVED (NOT LISTED ON PREVIOUS SHEETS)
-------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------------
ISSUE--------------- DATE--------------- CHECK "IN" SIG----------- DATE-----------
CHECK "OUT" SIG---------- DATE-----------
GE AIRCRAFT ENGINE SERVICES LIMITED
---------------------------------------------
OPERATOR POWER PLANT ELECTRICAL BOOKING IN LIST
---------------------------------------------
W.O.O. No. N/R = NOT REQUIRED POWER PLANT ELECTRICAL BOOKING OUT LIST
---------------------------------------------
ENGINE: No. N/A = NOT APPLICABLE
---------------------------------------------
DATE RECEIVED P & W JT9 ENGINES PAGE 1 OF 2
------------------------------------------------------------------------------------------------------------------------------------
IPC REF TYP PART NO. ALT PT No. DESCRIPTION IN REMARKS STAMP OUT REMARKS STAMP
------------------------------------------------------------------------------------------------------------------------------------
71-04-25 60- 65B90-1225-16 PRESSURE RELIEF VALVE CONDUIT
------------------------------------------------------------------------------------------------------------------------------------
65B93043-3 LOWER RACEWAY (EARTHING BKT)
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
-115A 51291-116 LOWER AFT FIRE ELEMENT - GRAV
------------------------------------------------------------------------------------------------------------------------------------
AND ASSOCIATED BRACKETS
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
-115A 60B00023-89 LOWER AFT FIRE ELEMENT - W. KIDDE
------------------------------------------------------------------------------------------------------------------------------------
AND ASSOCIATED BRACKETS
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
-60C-10 65B90506-4 THERMOCOUPLE RACEWAY
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
-60C-7 69B93132-1 69B93132-2 LOWER RACEWAY
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
-69 65B93010-4 THERMOCOUPLE HEATSHEILD
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
SILICON RUBBER CLAMPS
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
-18 6233 RIGHT HAND VIBRO
------------------------------------------------------------------------------------------------------------------------------------
-10 65B90187-4 CONDUIT
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
69B91251-2 FUEL DE-ICING VALVE COVER (TOP)
------------------------------------------------------------------------------------------------------------------------------------
69B43158-3 FUEL DE-ICING VALVE COVER (BOT)
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
6233 LEFT HAND VIBRO
------------------------------------------------------------------------------------------------------------------------------------
65B90442-1 HEATSHIELD
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
ISSUE_________________ DATE___________________ CHECK "IN" SIG________________ DATE_______________
CHECK "OUT" SIG______________ DATE_______________
GE AIRCRAFT ENGINE SERVICES LIMITED
---------------------------------------------
OPERATOR POWER PLANT ELECTRICAL BOOKING IN LIST
---------------------------------------------
W.O.O. No. N/R = NOT REQUIRED POWER PLANT ELECTRICAL BOOKING OUT LIST
---------------------------------------------
ENGINE: No. N/A = NOT APPLICABLE
---------------------------------------------
DATE RECEIVED P & W JT9 ENGINES PAGE 2 OF 2
------------------------------------------------------------------------------------------------------------------------------------
IPC REF TYP PART NO. ALT PT No. DESCRIPTION IN REMARKS STAMP OUT REMARKS STAMP
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
-50-25 65B93154-2 OIL CONTENTS TRANSMITTER COVER
------------------------------------------------------------------------------------------------------------------------------------
-115 51291-003 UPPER FWD FIRE ELEMENT GRAV
------------------------------------------------------------------------------------------------------------------------------------
AND ASSOCIATED BRACKETS
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
-116 60B00023-85 UPPER FWD FIRE ELEMENT - W. KIDDE
------------------------------------------------------------------------------------------------------------------------------------
AND ASSOCIATED BRACKETS
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
-115A 51291-002 LOWER FWD FIRE ELEMENT GRAV
------------------------------------------------------------------------------------------------------------------------------------
AND ASSOCIATED BRACKETS
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
-115A 60B00025-83 472925 LOWER FWD FIRE ELEMENT - W. KIDDE
------------------------------------------------------------------------------------------------------------------------------------
AND ASSOCIATED BRACKETS
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
-60C 765860 EPR TRANSFORMER
------------------------------------------------------------------------------------------------------------------------------------
765861 AND BRACKET
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
-47 6233 FRONT VIBRO TRANSDUCER
------------------------------------------------------------------------------------------------------------------------------------
657454 AND BRACKET
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
71-04-25-40L FRONT FAN SWITCH ASSEMBLY
------------------------------------------------------------------------------------------------------------------------------------
6224-5 REAR FAN SWITCH ASSEMBLY
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
65B90297-625 REAR FAN SWITCH RACEWAY
------------------------------------------------------------------------------------------------------------------------------------
65B90297-71 BRKT-D15 LOOM TO ?? BIE TRACK
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
-60D 61B41826-D01 FUEL CONTROL UNIT LOOM
------------------------------------------------------------------------------------------------------------------------------------
ISSUE_________________ DATE___________________ CHECK "IN" SIG________________ DATE_______________
CHECK "OUT" SIG_______________ DATE_______________
ANNEX B TO
----------
THE MAIN AGREEMENT
------------------
GEAS-TOW-201-001
----------------
LIST OF UNITS, WITH TURNROUND TIMES. COVERED BY THIS AGREEMENT
--------------------------------------------------------------
1. The following units are covered by this Agreement.
2. This list is not exhaustive and can be amended as required and agreed
between both parties.
Description of Unit Price Turnround Time
------------------- --------------- --------------
a) XX00-0 xxxx -0X for $1,025,000 90 days (plus 10 days for
conversion to -7J round trip transportation)
b) JTOD-7A for $ 906,000 90 days ( plus 10 days for
refurbishment round trip transportation)
Engine Component Turnround times will be as set forth in the Component
Repair Catalogue.
34
ANNEX C TO
----------
THE MAIN AGREEMENT
------------------
GEAES-TOW-201-001
------------------
MODIFICATION CATEGORIES
-----------------------
Each modification is classified into a category, which relates its priority of
embodiment to its effect on flight safety, and to the degree of Unit disassembly
required for embodiment.
The Appendices to this Annex define these categories for each Unit covered by
this Agreement.
Appendices:
1. Modification categories for JT9D Engine
APPENDIX 1 TO
-------------
ANNEX C TO
----------
THE MAIN AGREEMENT
------------------
GEAES-TOW-201-001
-----------------
MODIFICATION CLASSIFICATIONS
(ENGINE)
DESCRIPTION GEAES CLASS P & W CLASS
----------- ----------- -----------
MANDATORY - per FAA aircraft legislature M
requirements.
To be embodied at the next hangar or shop visit 5R 4
To be embodied at the next exposure of the affected sub assembly
and/or module. 6R 5
To be embodied at the next exposure of the affected part. 7R 6
To be embodied on replacement when the part requires renewal
because of its condition. 8R N/A
To be embodied when the Seller's stocks of pre-mod parts have
been used up or are no longer available. 9R 7
Also, if the Mod.../
Has been embodied by the manufacturer already on some
aircraft or components. Also described as `Formal' fit. FR
Is a trial fit or evaluation TR
ANNEX D TO
----------
THE MAIN AGREEMENT
------------------
GEAES-TOW-201-001
-----------------
BASIC MINIMUM MODIFICATION STANDARD
-----------------------------------
The basic minimum modification standard, for each Unit covered by this
Agreement, is defined in the Appendices to this Annex.
Appendices:
1. Basic minimum modification standard for JT9D Engine
APPENDIX 1 TO
-------------
ANNEX D TO
----------
THE MAIN AGREEMENT
------------------
GEAES-TOW-201-001
-----------------
BASIC MINIMUM MODIFICATION STANDARD FOR ...
-------------------------------------------
In accordance with Schedule Clause 4.1, the following modifications represent
the minimum standard to which the Buyer requires the Unit to be built, subject
to the embodiment priorities defined under the category column.
Modification Category
------------ --------
ANNEX E TO
----------
THE MAIN AGREEMENT
------------------
GEAES-TOW-201-001
-----------------
STATUS OF WORK IN PROGRESS DATA CURRENT AT ...
-------------------------- -------------------
In accordance with Main Agreement Clause 3.18 here is the status of your work in
progress.
Repair The Seller Part Serial Description Quantity Target
order budget No No despatch
No Ref date
(a) (b) (c) (d) (e) (f) (g)
--------------------------------------------------------------------------------
1.
2.
3.
4.
5.
ANNEX F TO
----------
THE MAIN AGREEMENT
------------------
GEAES-TOW-201-001
-----------------
NOTIFICATION OF HIGH COST WORK
------------------------------
1. In accordance with Schedule Clause 3.5, the Seller estimates that
Refurbishment or Repair of the following Unit(s) or Part(s) will exceed 70%
of the cost of replacing such Unit(s) or Part(s).
2. Please authorise the Seller to carry out, and charge for, in accordance
with Main Agreement Clause 3, such Refurbishment or Repair.
Part Description Quantity Removed Estimated Buyer's
No from Refurbishment instruction
or Repair
cost
(a) (b) (c) (d) (e) (f)
--------------------------------------------------------------------------------
1.
2.
3.
4.
5.
ANNEX G TO
----------
THE MAIN AGREEMENT
------------------
GEAES-TOW-201-001
-----------------
CONCESSIONS
-----------
The Engineering Concession Form referred to at Schedule Clause 6.2 is attached
as an Appendix to this Annex. Use of this form will only apply where approved by
an applicable FAA DER.
G. E. AIRCRAFT ENGINE SERVICES LIMITED ANNEX G TO THE
MAIN AGREEMENT
ENGINEERING CONCESSION NUMBER
CONCESSION REGISTRY NUMBER
------------------------------------------------------------------------------------------------------------------------
OPERATOR ENGINE TYPE ENG/MODULE/UNIT S.N. CATEGORY HOURS CYCLES
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
REASON FOR CONCESSION
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
DESCRIPTION OF CONCESSION
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
ORIGINATOR'S NAME ORIGINATOR'S SIGNATURE SECTION DATE
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
PROPULSION ENGINEER'S COMMENTS: SIGNATURE DATE
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
AUTHORISATION SIGNATURE DATE
------------------------------------------------------------------------------------------------------------------------
1. ENGINEERING SIGNATORY
------------------------------------------------------------------------------------------------------------------------
2. CUSTOMER REPRESENTATIVE
------------------------------------------------------------------------------------------------------------------------
3. QUALITY ENGINEERING SIGNATORY
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
NOTE: LINES 1 TO 3 MUST BE COMPLETED
FOR MOD ENGINES LINES 2 TO 4 MUST BE COMPLETED
------------------------------------------------------------------------------------------------------------------------
LOCAL CONCESSION ISSUED UNDER CAA APPROVAL REFERENCE DA/9341/91
------------------------------------------------------------------------------------------------------------------------
IF PART FITTED TO ENGINE/MODULE DIFFERENT FROM ABOVE ENTER DETAILS BELOW
------------------------------------------------------------------------------------------------------------------------
ENGINE TYPE FITTED TO ENGINE/MODULE UNIT S. N. DATE
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
ANNEX H TO
----------
THE MAIN AGREEMENT
------------------
GEAES-TOW-201-001
-----------------
ENGINE HEALTH CHECKS
--------------------
The engine health checks referred to in Main Agreement Clause 3.4 will be
carried out in accordance with the requirements of the Appendix to this
Annex.
[LOGO]
GE AIRCRAFT ENGINE SERVICES LIMITED
(ISSUE 1)
SHEET 1 OF 2
HEALTH CHECK SHEET
------------------------------------------------------------------------------
OPERATOR ENGINE/MODULE TYPE JT9D
------------------------------------------------------------------------------
HOURS SINCE ENGINE/MODULE NUMBER
------------------------------------------------------------------------------
CYCLES SINCE W.O.O. NUMBER
------------------------------------------------------------------------------
Borescope Inspected Only DATE
------------------
Health Checked Only
-------------------------------------------------------------------------------------------------------------------------
REF ITEM COMMENTS QTY STATUS ND APPR AUTHN
STAMP STAMP
-------------------------------------------------------------------------------------------------------------------------
1 FAN 48 ACCEPT ND
REJECT
-------------------------------------------------------------------------------------------------------------------------
2 "A" MODULE CARRY OUT FRONT END ACCEPT ND
VISUAL INSPECTION WITH REJECT
PARTICULAR ATTENTION TO
RUB STRIPS
-------------------------------------------------------------------------------------------------------------------------
3 HPC5 80 ACCEPT ND
REJECT
-------------------------------------------------------------------------------------------------------------------------
4 HPC8 REAR 100 ACCEPT ND
REJECT
-------------------------------------------------------------------------------------------------------------------------
5 HPC9 FRONT 110 ACCEPT ND
REJECT
-------------------------------------------------------------------------------------------------------------------------
6 HPC11 REAR 104 ACCEPT ND
REJECT
-------------------------------------------------------------------------------------------------------------------------
7 HPC12 FRONT 94 ACCEPT ND
REJECT
-------------------------------------------------------------------------------------------------------------------------
8 HPC14 REAR 102 ACCEPT ND
REJECT
-------------------------------------------------------------------------------------------------------------------------
9 HPC15 FRONT 90 ACCEPT ND
REJECT
-------------------------------------------------------------------------------------------------------------------------
10 COMBUSTION ACCEPT ND
CHAMBER REJECT
-------------------------------------------------------------------------------------------------------------------------
11 NGV ACCEPT ND
REJECT
-------------------------------------------------------------------------------------------------------------------------
12 HPT 1 118 ACCEPT ND
REJECT
-------------------------------------------------------------------------------------------------------------------------
13 HPT 2 138 ACCEPT ND
REJECT
-------------------------------------------------------------------------------------------------------------------------
14 LPT 3 FRONT 122 ACCEPT ND
REJECT
-------------------------------------------------------------------------------------------------------------------------
15 LPT 8 REAR 102 ACCEPT ND
REJECT
-------------------------------------------------------------------------------------------------------------------------
16 IF MOD STATUS PERMITS, INSPECT INTERMEDIATE "DOG ACCEPT ND
BOX" AT 12 O'CLOCK POSITION FOR EVIDENCE OF OIL REJECT
WETTING. BORESCOPE THROUGH ANTI-ICE HOLE AT 1
O'CLOCK
--------------------------------------------------------------------------------------------------------------------------
1st Copy (WHITE) ORIGINATOR 3rd Copy (BLUE)INSPECTION RECORDS
2nd Copy (PINK) ENGINEERING
LOGO
GE AIRCRAFT ENGINE SERVICES LIMITED
(ISSUE 1)
SHEET 2 OF 2
HEALTH CHECK SHEET
------------------------------------------------------------------------------
OPERATOR ENGINE/MODULE TYPE JT9D
------------------------------------------------------------------------------
HOURS SINCE ENGINE/MODULE NUMBER
------------------------------------------------------------------------------
CYCLES SINCE W.O.O. NUMBER
------------------------------------------------------------------------------
Borescope Inspected Only DATE
----------------------------
Health Checked Only
-----------------------------------------------------------------------------------------------------------------------------
REF ITEM COMMENTS QTY STATUS ND APPR AUTHN
STAMP STAMP
-----------------------------------------------------------------------------------------------------------------------------
17 BORESCOPE INSPECTION OF STAGE 13 ND
STATOR FOR CIRCUMFERENTIAL CRACKING
ADVISE D.E. IF ANY FOUND
-----------------------------------------------------------------------------------------------------------------------------
18 REMOVE ALL BORESCOPE PLUGS
-----------------------------------------------------------------------------------------------------------------------------
19 VISUALLY INSPECT ENGINE LOOM FOR VISUAL
INITIAL P.I.C. INFO ONLY OK
REPLACE
-----------------------------------------------------------------------------------------------------------------------------
20 DIFFUSER CASE - SB.5591
-----------------------------------------------------------------------------------------------------------------------------
21 INSPECT ALL MAGNETIC PLUGS ACCEPT
REJECT
-----------------------------------------------------------------------------------------------------------------------------
22 INSPECT FILTERS. ADVISE D.E. OF ALL ACCEPT
DEFECTS REJECT
-----------------------------------------------------------------------------------------------------------------------------
23 REMOVE EXHAUST PLUG AND CHECK IF
DETUNER WEIGHT IS MISSING OR LOOSE
SERIAL NO ......................
-----------------------------------------------------------------------------------------------------------------------------
24 REMOVE EXHAUST SLEEVE, SERIAL NO.......................
-----------------------------------------------------------------------------------------------------------------------------
25 CARRY OUT REAR AND VISUAL INSPECTION
INCLUDING EX SPARS INNER BOWL.FRONT AND
REAR RAIL
-----------------------------------------------------------------------------------------------------------------------------
26 LP TURBINE SPIN CHECK ACCEPT
REJECT
-----------------------------------------------------------------------------------------------------------------------------
27 ENGINE BOOKED IN. SER NO.........................
-----------------------------------------------------------------------------------------------------------------------------
28 MEASURE AND RECORD FAN CASE RUB STRIP SEGMENT
WEAR
5 O'CLOCK...... 3 O'CLOCK...... 12 O'CLOCK......
-----------------------------------------------------------------------------------------------------------------------------
29 BOOKED IN BY..............................
-----------------------------------------------------------------------------------------------------------------------------
30 ALL THE ABOVE HAVE BEEN CERTIFIED, ENDORSED BY ND
APPROPRIATELY AUTHORISED PERSONS AND MEET THE
REQUIREMENTS OF THE ORIGINAL EQUIPMENT
MANUFACTURER (OEM) AND GEAESL
-----------------------------------------------------------------------------------------------------------------------------
1st Copy (WHITE) ORIGINATOR 3rd Copy (BLUE) INSPECTION RECORDS
2nd Copy (PINK) ENGINEERING
ANNEX I TO
----------
THE MAIN AGREEMENT
------------------
GEAES-TOW-201-001
-----------------
GENERAL
-------
All modifications mandated by Xxxxx and Xxxxxxx Service Bulletins 4525 & 4990
for -7J conversion shall be embodied where applicable. The outline workscope
detailed below further defines the work content agreed between Buyer and Seller
for the purpose of conversion and/or refurbishment of the Units as defined in
the Main Agreement.
For clarification, there follows a definition of the specific terms used in this
Annex I:-
. Refurbishment shall mean the inspection and Repair of the Units in
accordance with the technical workshop specification mutually agreed between
Buyer and Seller.
. C/O/H shall the mean inspection and Repair of the Units in accordance with
the relevant Original Equipment Manufacturer's Overhaul Manual.
. IRAN shall mean on condition inspection and Repair as deemed necessary by the
Seller.
FAN
---
. Deblade
. Refurbishment and conversion where necessary of Fan Blades.
. C/O/H of Fan Hub.
. IRAN remainder of module.
FANCASE
-------
. Re-line Fan rotor path
. IRAN remainder of module
LPC
---
. Refurbishment of module
. Conversion to -7J where necessary
INTERMEDIATE CASE
-----------------
. Refurbishment of intermediate case & sump
. C/O/H of all bearings
. IRAN remainder of module
HPC
---
. Refurbishment of module
. New compressor blades to be fitted to all stages
DIFFUSER
--------
. Full dimensional inspection of diffuser case to Seller's criteria
. Refurbishment of No. 3 bearing area
. IRAN remainder of module
COMBUSTER
---------
. Refurbishment of module
. Conversion to -7J where necessary
. Stage 1 NGV's fitted shall have no more than 1 previous overhaul
HPT
---
. Refurbishment of module
. Conversion to-7J where necessary
. New T1 and T2 blades to be fitted in the case of conversion engines
. 10 off new stage 2 NGV's to be fitted at 6 o' clock position
LPT
---
. Refurbishment of module
. Conversion to-7J where necessary
EXHAUST CASE
------------
. Refurbishment of module including the following:-
- Rejuvenation of exhaust case
- Embody SB 5907 containment xxxxxxx
GEARBOXES
---------
. Refurbishment of modules
. New N2 Tacho bearing to be fitted in main gearbox
QEC
---
. IRAN
FUEL SYSTEM ACCESSORIES
-----------------------
. Refurbishment of each Unit in accordance with agreed Accessory technical
specification
. Conversion to-7J where necessary
OTHER ITEMS
-----------
. Fitment of 'Xxxxxx Kiddie Lug Type' fire detection system
Notes:
(i) Following pass off test engine preservation will be carried out in
accordance with the JT9D Engine manual to cover a 90 day period.
(ii) Material termed 'Used Servicable Material' shall be defined as material
which has been declared servicable per the JT9D Engine Manual & meets the
requirements of the Tower Air Technical Specification.
(iii) This Annex I is intended to provide an overview of the intent of the
workscope agreed between the Buyer and Seller and does not contain the
full technical specification.
COPIES AND SIGNATURES
---------------------
The Agreement is signed in duplicate-and one copy shall be held by each party.
For and on behalf of For and on behalf of
Tower Air, Inc. GE Aircraft Engine Services Ltd.
Signed /s/ XXXXXX XXXXXXXX Signed /s/ Xxxxxx X. Xxxxxxxxx
---------------------------- ------------------------------
Name XXXXXX XXXXXXXX Name Xxxxxx X. Xxxxxxxxx
------------------------------ --------------------------------
Title CHAIRMAN OF THE BOARD Title MANAGING DIRECTOR.
----------------------------- -------------------------------
Witnessed XXXXXX XXXXXXX Witnessed /s/ P. H. Xxxxx
------------------------- ---------------------------
Name XXXXXX XXXXXXX Name P.H. Xxxxx
------------------------------ --------------------------------
Date 30th September 1996 Date 27th September 1996
------------------------------ --------------------------------
CONTRACT
--------
SCHEDULE OF STANDARD CONDITIONS
-------------------------------
CLAUSE 1 - CONFIDENTIALITY AND ASSIGNMENT
-----------------------------------------
1.1 Unless otherwise agreed, this Agreement and all information including
proprietary information becoming available or coming into the possession or
knowledge of either party by virtue of this Agreement or its performance
shall at all times be treated by the parties hereto as confidential and
shall not be published, disclosed or circulated except (i) in connection
with the performance by the parties hereto of their obligations under this
Agreement or (ii) if such information is at the time of disclosure in the
public domain or (iii) if such information becomes generally available to
third parties by publication or otherwise, through no breach of this
Agreement by the disclosing party or (iv) if such information is or was
lawfully in the possession of the person disclosing the same prior to such
disclosure without legal or contractual restriction on such disclosure or
(v) as required by law.
In the event that a party becomes legally compelled to disclose any
information treated as confidential hereunder, prompt notice of such fact
shall be given to the other party, so such other party may seek an
appropriate remedy to prevent such disclosure and the party compelled to
disclose such information which is in the nature of intellectual property
will not confer any right or licence on the recipient to use the same
otherwise than for the purpose for which it was disclosed.
1.2 Both parties shall ensure that the obligation of confidentiality contained
in this Clause shall be brought to the notice of all employees, servants
and agents engaged upon work in connection with this Agreement.
1.3 The obligations of the parties under this Clause shall survive and continue
after the discontinuance, termination or cancellation of this Agreement or
any part thereof and shall be binding on authorised assignees and
successors in title of the parties hereto.
CLAUSE 2 - DEFINITIONS
----------------------
The following words and expressions shall have the meaning hereby assigned to
them. Any other technical words not defined under this Agreement shall have the
same meaning as defined in the world Airline Technical Operations Glossary
published by IATA from time to time.
2.1 Affiliate means, in relation to a party, a company which is its Subsidiary
---------
or holding company, or which is a Subsidiary of any company of which such
party is a Subsidiary, Subsidiary and holding company bearing for the
purpose of this definition the respective meanings accorded to them in
Section 736 of the Companies Xxx 0000 as amended.
2.2 Accessories means those line replaceable units, which are reworked by the
-----------
Seller, and which are fitted to the Buyer's Powerplant, Engines or Modules.
2.3 AD means Airworthiness Directive.
--
2.4 Agreement means the agreement, between the Seller and the Buyer for the
---------
provision of the Services including the Main Agreement and this Schedule.
2.5 Approved Life means the number of Flying Hours or Flight Cycles as
-------------
appropriate, which a Unit may operate for, as approved by the Buyer or the
appropriate airworthiness regulatory authority, following Refurbishment or
Repair.
2.6 Buyer's Stock Holding means that dedicated area, which is used by the
---------------------
Seller for the storage of the Buyer's serviceable property, or that
property, as the context may require.
2.7 CAA means the Civil Aviation Authority of the United Kingdom of Great
---
Britain and Northern Ireland.
2.8 Checking List means the list referred to in respect of individual Units and
-------------
attached as Annex A to the Main Agreement. The Checking List is used to
record those significant parts and/or Accessories fitted to a Unit on
receipt at, or despatch from the facilities of the Seller or the Buyer.
2.9 DGCA means the Director General of Civil Aviation under whose authority the
----
aircraft operated by the Buyer are registered.
2.10 Engine means the complete bare Engine but without a QEC.
------
2.11 FAA means the Federal Aviation Administration of the United States of
---
America.
2.12 Flight Cycle means the unit of Unit utilisation which occurs if a Unit is
------------
fitted to an aircraft which completes 1 landing.
2.13 Flying Hours means the time recorded, for each of the Units, from take off
------------
to landing.
2.14 Group A Parts means those major rotating Parts of a Unit which are
-------------
subjected to strict life limitations which must not be exceeded in service.
2.15 Local Representative means that person, appointed by the Buyer, whose
--------------------
responsibilities are defined in Schedule Clause 5.
2.16 Module means a combination of Parts which are replaceable sub-assemblies
------
of the Engine, and which are subject to Repair, modification and
Refurbishment in their own right.
2.17 OWS means the Seller's On Wing Support facilities at Xxxxxx Xxxx, Xxxxxx
---
Xxxxxxxx Xxxxxxx, Xxxxxx Xxxxxxx.
2.18 Parts means those items listed in a manufacturer's illustrated parts
-----
catalogues.
2.19 Pooling means the exchange of Parts in the custody of the Seller with
-------
Parts removed from the Buyers Units. A Pooled Part means a Part capable of
such exchange.
2.20 Powerplant means a Unit which includes the Engine and a QEC, which is
----------
suitable for installation on aircraft operated by the Buyer.
2.21 QEC means Quick Engine Change unit and comprises all the Parts, as
---
supplied by the airframe and Engine manufacturer, used to build up a
Powerplant, to the point where that Powerplant is ready to be installed on
an aircraft operated by the Buyer
2.22 Refurbishment means the strip, inspection, Repair or replacement of Parts,
-------------
and the re-assembly and testing, as set out in the appropriate manuals and
Refurbishment schedules for the Unit, as amended from time to time, to
restore the Unit to a serviceable condition.
2.23 Repair means all remedial work necessary to render a Unit serviceable.
------
2.24 Services means all or part of the services, Work, Materials and Parts to
--------
be supplied and managed by or on behalf of the Seller under this Agreement
and generally described in Main Agreement Clause 3.
2.25 Unit means an Engine, Powerplant or Module.
----
CLAUSE 3 - DOCUMENTATION & PROCEDURES
-------------------------------------
3.1 The Buyer shall give the Seller at least 28 days notice of its intention to
submit a Unit, following a planned removal, to the Seller for the Services
to be provided and shall give as much notice as is possible in respect of
any unplanned removals.
3 2 The Buyer must provide the Seller with the following prior to each Unit
input:
3.2.1 A uniquely numbered Buyer's Repair Order. Such a document will
include, but not be limited to, the following:
3.2.1.1 Description of Unit.
3.2.1.2 Unit part number and serial number.
3.2.1.3 Unit hours and cycles run since new and since last shop
visit.
3.2.1.4 Reason for removal of Unit.
3.2.1.5 Unit and Accessory workscope requirements.
3.2.1.6 Type of release certificate required.
3.2.1.7 Minimum release life standards required.
3.2.2 Life limited Parts data including the following:
3.2.2.1 Part number.
3.2.2.2 Serial number.
3.2.2.3 Hours and cycles run since new.
3.2.2.4 Hours and cycles run since last shop visit.
3.2.3 Data on all Accessories fitted, including the following:
3.2.3.1 Part number.
3.2.3.2 Serial number.
3.2.3.3 Hours and cycles run since new.
3.2.3.4 Hours and cycles run since the last shop visit.
3.2.3.5 Modification and AD status.
3.2.4 Unit log book, complete with Unit modification and AD
status.
3.2.5 All documentation required in connection with any necessary
customs and other formalities associated with the Units.
3.2.6 Checking List completed prior to despatch from the Buyer.
3.3 The Buyer shall ensure that Units are complete in accordance with the
appropriate Checking List. In the event that any item is found to be
missing or damaged on receipt of the Unit by the Seller, the Seller
shall immediately forward to the Buyer a completed copy of Annex A.
The Buyer shall then agree with the Seller the remedial action
required.
3.4 Each party shall, when requested in writing by a duly authorised
representative, be allowed access to all relevant information
contained in the technical records of the aircraft operated by the
Buyer and any other relevant documents held by the other party.
3.5 Should it be undesirable, in the opinion of the Seller, to carry out
the Buyer's instruction to Refurbish or Repair any Unit or Part,
because the cost of such Refurbishment of Repair is estimated by the
Seller to exceed 70% of the cost of replacing that Unit or Part, then
the Seller shall complete a copy of Annex F, forward that copy to the
Buyer, and seek the Buyer's consent to carry out and charge for such
Refurbishment or Repair.
If the Buyer vetoes such work being undertaken, or the Buyer's consent
is not received within 48 hours of receipt of the Seller's request,
then the Seller shall instead replace such Parts all in accordance
with Main Agreement Clause 3.
CLAUSE 4 - MODIFICATIONS
------------------------
4.1 The Buyer shall, on or before the date of signature of this Agreement,
provide the Seller with a basic minimum modification standard for each
unit, and the details of that standard will be defined in Annex D to
the main Agreement.
4.2 Following the provision of the basic minimum modification standard for
the units, and provided that the Seller is given reasonable lead time
to ensure the availability of the tools and materials, the Seller
shall embody all modifications required to bring the units up to that
standard. The Seller shall use all reasonable endeavours to provide
the tools and materials required to bring each Unit up to that
standard in the turnround time defined in Annex B to the main
Agreement.
4.3 The Seller shall embody all modifications categorised "Mandatory" or
"Category 1" by the unit manufacturer or the manufacturer's Accessory
vendors, or categorised AD's by the appropriate Airworthiness
Regulatory Authority.
4.4 Should the Buyer require embodiment of modification not defined in
Annex D to the Main Agreement and provided the Buyer requests the
embodiment of such modifications in a timely manner, the Seller shall
endeavour to embody such modifications provided that tools and
materials are available. The Seller shall endeavour to provide such
tools and materials in a timely manner and shall be entitled to a
reasonable extension of time in which to complete the additional work.
CLAUSE 5 - TECHNICAL LIAISON
----------------------------
5.1 The fullest possible direct liaison, including technical services review
meetings, will take place between representatives of the Buyer and the
Seller, to review the operation of this Agreement. The frequency and
venues of such meetings will be arranged between the parties, who shall
bear their own costs.
5.2 In order to facilitate prompt and efficient liaison between both parties,
the Buyer may appoint a Local Representative who may be stationed at the
Seller's facilities from time to time from any date convenient to the Buyer
after the execution of this Agreement.
5.2.1 The Buyer shall inform the Seller in writing of the identity of
the Local Representative.
5.2.2 The Seller shall extend to the Local Representative every access
that is necessary in relation to this Agreement, to its
facilities where the Services are undertaken.
5.2.3 The Buyer shall ensure that the Local Representative, and any
other of the Buyer's staff who may from time to time visit or be
stationed at the Seller's facilities, conform with all the
Seller's regulations and instructions written or otherwise
displayed. In particular such staff are expected to familiarise
themselves with the fire and emergency building evacuation and
any other safety procedures.
5.2.4 The Buyer shall be responsible for all costs incurred by the
Local Representative, and any other of the Buyer's staff, who may
be based at the Seller's facilities.
5.3 The duties of the Local Representative shall include, but not be limited
to, the following:
5.3.1 Acting as the focal point at the Seller's facilities for all
production and contractual matters concerning the Buyer and
relating to this Agreement.
5.3.2 The provision of technical records, and aircraft maintenance and
operational data.
5.3.3 The provision of technical authority where there is a requirement
to defer work.
5.3.4 The authorisation of additional work.
5.3.5 The provision of disposal instructions for any of the Buyer's
property.
5.3.6 The attendance at technical review meetings where the Buyer's
Units are under discussion.
5.3.7 The validation of invoice charges.
5.3.8 The provision, in accordance with Schedule Clause 3.3. of
agreement on remedial action in the event that any item is found
to be missing or damaged on receipt of any Unit by the Seller.
5.3.9 The provision, in accordance with Schedule Clause 3.5. of
agreement to carry out and charge for work on any Unit or Part
where the cost of such work is estimated by the Seller to exceed
70% of the cost of replacing that Unit or Part or to instruct the
replacement of such Parts.
5.3.10 The provision in accordance with Schedule Clause 6.2. of
instructions in the event that after starting work on a Unit, the
Seller is unable to comply with any technical requirement on that
Unit.
CLAUSES 6 - STANDARDS
---------------------
6.1 The Buyer shall ensure that the appropriate Airworthiness Regulatory
Authority shall grant to the Seller approval (equivalent to the terms of
approval already granted to the Seller by the CAA Reference Number
DAI/9341/91) to carry out the Services. This approval is required before
the date of commencement of the Services.
6.2 In the event that, after starting work on a Unit, the Seller is unable to
comply with any technical requirement on that Unit, but is able to offer a
viable alternative proposal, then the Seller shall complete the Engineering
concession form, a copy of which is attached at Annex G, forward that copy
to the Buyer, and await the Buyer's instructions before proceeding.
CLAUSE 7 - TRANSPORTATION AND DELIVERY REQUIREMENTS
---------------------------------------------------
7.1 The Buyer shall deliver each unit, covered by this Agreement, to OWS and,
after redelivery of the Unit to OWS by the Seller shall collect each Unit
from OWS.
7.2 Any costs associated with the transportation and insurance of each Unit
between the Buyer and OWS, and OWS and the Buyer, incurred under this
Agreement, shall be borne by the Buyer who shall also be responsible for
all import charges, duties and any other taxes or other levies imposed on
each Unit at the port of entry and exit or into which the Buyer operates or
intends to operate its aircraft.
7.3 The Buyer shall ensure that each Unit covered by this Agreement is
correctly blanked by approved methods prior to despatch, and satisfactorily
packed in a recognised manner for delivery. In addition, the Buyer shall
ensure that each Unit is mounted in an approved transit stand provided by
the Buyer.
7.4 At the Seller's request, the Buyer shall provide, for the retention by the
Seller, documentation which shall prove, to the satisfaction of HM Customs
and Excise, the import into, or export from, the United Kingdom, of each
unit so that the charges levied by the Seller pursuant to this Agreement
may be relieved of United Kingdom Value Added Tax. Should such
documentation not be provided, the Seller shall invoice and the Buyer shall
pay for any such united Kingdom Value Added Tax incurred by the Seller.
CLAUSE 8 - TURNROUND TIME
-------------------------
8.1 The Buyer shall use its best endeavors to ensure that each Unit is
delivered to the Seller in accordance with a schedule to be agreed between
the parties hereto from time to time. The Buyer shall provide the Seller
with a programme covering its planned maintenance of the units for at least
6 months ahead. The Buyer shall, as soon as possible, advise the Seller of
any significant variation from that programme and acknowledges that a
significant variation to that programme may adversely affect the Seller's
ability to meet the turnround time defined in Annex B to the Main
Agreement.
8.2 The turnround time shall be deemed to start when either all the
documentation defined in Schedule Clause 3.2 has been received by the
Seller, or when that Unit is delivered by the Buyer to OWS, whichever is
the later. The turnround time shall be deemed to end when that same unit is
delivered by the Seller to OWS. UK public holidays will not be included
when calculating turnround time.
8.3 The Seller shall not be liable for any delay in the Repair or Refurbishment
of any Unit if such a delay is outside the reasonable control of the
Seller. Any such delay shall be disregarded in calculating the achieved
turnround time.
8.4 In the event that the Buyer requires a Unit to be subjected to a special
investigation, then the Seller may extend the turnround time, referred to
herein, to cover this additional requirement.
8.5 In the event that the Seller, following the provision of the Services set
out in Main Agreement Clause 3.7 and after a test bed run, has to input a
Unit again, and providing that the reasons for such input are beyond the
direct control of the Seller and through no fault on the part of the
Seller, the Unit will be deemed a new input in respect of turnround time.
8.6 The turnround times defined in Annex B to the main Agreement may be
extended by the period of time lost resulting from any delays incurred
awaiting a response from the Buyer for relevant information requested by
the Seller.
8.7 The Seller shall have a lien over any Unit in its possession for any
payment by the Buyer under this Agreement which is overdue.
In the event that the Seller shall exercise any such lien, it shall give
notice thereof to the Buyer and the turnround times defined in Annex B to
the Main Agreement shall be extended by the period of time from the date of
such notice until the lien is extinguished upon receipt of all overdue
payments.
CLAUSE 9 - POOLING
------------------
9.1 Parts from the Buyer's Units may be pooled, at the Seller's sole
discretion, with similar Parts in the Seller's custody.
CLAUSE 10 - CUSTODY, CONTROL AND TITLE TRANSFER
------------------------------------------------
10.1 The Buyer shall deliver each Unit to OWS free of all charges. Care,
Custody and control shall pass from the Buyer to the Seller an receipt of
each Unit at OWS.
10.2 Within 24 hours from despatch of the Unit from the Seller's facilities,
the Seller shall make each Unit available for collection by the Buyer at
OWS. Parts, Material, labor and associated overhead incorporated into
Buyers Equipment, as required in performing Services an Buyers Equipment
hereunder, shall be deemed to have been sold to Buyer, and title to such
Parts and Services thereon shall pass to Buyer upon assignment of such
parts, materials, labor and associated overhead to Buyer's Equipment Risk
of loss or damage to such parts and work thereon shall pass to Buyer upon
Redelivery to Buyer Title to and risk of loss of or damage to any pans
removed from Buyers Equipment, which are replaced by other parts, shall
pass to Seller upon removal of such parts from Buyer's Equipment Final
acceptance of Redelivered Equipment shall be at Sellers facility.
10.3 Both parties to this Agreement hereby warrant that they each have good
title to each Pooled Part and that each Pooled Part shall pass from the
one party to the other tee from any charge, encumbrance or lien in favour
of any third party.
10.4 Transfer of title of Pooled Parts shall take place simultaneously at the
time of the exchange.
CLAUSE 11 - SELLER AND BUYER WARRANTIES
---------------------------------------
11.1 The Seller warrants that if for any Unit any defect, failure or
malfunction occurs which is proven to be due to faulty workmanship as a
result of the provision of the services, within 12 months of being
declared serviceable by the Seller, or within 6 calendar months of 1000
flying hours of installation whichever occurs first, then the Seller
shall Repair such defect failure or malfunction of the Unit without
further charge. If, during the Repair of that defect, failure or
malfunction, any betterment is included then the Seller shall invoice the
Buyer in accordance with the terms of Main Agreement Clause 3.
11.2 The Seller shall have no liability whatsoever in respect of any Unit which
has been assembled, operated or maintained by any party other than the
Seller, its agents or sub-contractors, otherwise than in accordance with
the manufacturers instructions or flight manual, or which has been subject
to any accident, abuse or misapplication, or use in development or
experimental running.
11.3 This warranty is in substitution for and excludes all otter warranties
express or implied including but not limited to fitness for purpose,
quality, standard of workmanship or otherwise and, save as provided herein,
the Seller shall not be liable in tort, in contract, statute or otherwise
at law to the Buyer at any time for loss of, or damage to, any Units and
Pals, arising out of the installation and subsequent use thereof in any
aircraft or otherwise. The obligation and liability of the Seller under
this warranty shall be in lieu of and shall expressly exclude any other
liability to the Buyer or to any other person for direct, indirect,
incidental or consequential damages (including without limitation loss of
revenue, loss of profits or loss of contracts) regardless of whether any
claim for such damages shall be based upon or in contract, strict
liability, negligence or any other tort and any other such claim is freely
waived by me Buyer.
11.4 The Buyer warrants that if it requires the Seller to undertake a pre-
introduction test run on any Unit, that such Unit shall be in a fit
condition to enable the test run to be undertaken in a safe and proper
manner.
CLAUSE 12 - SELLER'S INTELLECTUAL PROPERTY WARRANTY
---------------------------------------------------
12.1 The Seller warrants that the Units, supplied as part of the Services and
the equipment, methods and processes used by the Seller for or in
connection with this Agreement, do not arid will not infringe the
intellectual property rights of any third party including without
limitation letters patent, registered design, unregistered design rights,
copyright, or trademarks and the Seller shall indemnify, hold harmless and
defend the Buyer from and against all claims, actions, proceedings,
demands, damages, liabilities costs, charges and expenses whatsoever
suffered or incurred by the Buyer in connection with or as a result of any
matter which gives rise to a breach by the Seller of the aforesaid
warranty, provided that:.
(a) the Buyer shall promptly notify in writing the Seller of such claim;
and
(b) the Seller shall have sole control over the defence of such claim and
over all negotiations in relation to such claim and in particular the
Buyer shall not accept any liability in relation to such claim or make
any admission in respect thereof without the prior written consent of
the Seller: and
(c) the Buyer shall provide all such documents, information and assistance
and do all such acts and things as the Seller may reasonably require
to assist it in relation to such claim.
However the Seller shall not be liable to the Buyer for any indirect
consequential or financial loss (including loss of revenue, loss of
profits or loss of business opportunity by the Buyer) or any loss of
use of Parts or of the Unit or aircraft in which such Parts may be
incorporated arising as a result of any such claim.
12.2 Without prejudice to the rights of the Buyer the Seller shall use
reasonable endeavours to remedy any breach of its warranty under Schedule
Clause 12.1 at the earliest possible moment either by securing at its own
expense the right for the Buyer to continue use or operation of any Unit,
Module, Accessory or Part by procuring a licence in respect of the rights
infringed or by modifying or replacing at its own expense such Part or
Parts of the Unit, Module or Accessory as is necessary to render them non-
infringing and without any change in quality or performance.
12.3 The warranty stated in Schedule Clause 12.1 is in lieu of all other
intellectual property warranties whatsoever, whether oral, written,
expressed, implied or statutory. Schedule Clauses 12.1 and 12.2 set out the
whole of the Buyers right in respect of breach of the warranty in Schedule
Clause 12.1 and in the particular the Buyer will not be entitled to
terminate the Agreement for breach of this warranty unless the Seller has
in addition broached its indemnification and/or remedial obligations in
Schedule Clauses 12.1 and 12.2 and has failed to effect a cure in
accordance with the provisions of Schedule Clause 12.1.8.
CLAUSE 13 - MANUFACTURER'S WARRANTY
-----------------------------------
13.1 The Buyer shall advise the manufacturers and vendors of the Units and Parts
an which the Seller shall be carrying out warranty Repairs on behalf of the
Buyer. In addition, the Buyer shall advise such manufacturers and vendors
that all warranty monies receivable, as a result of the services provided
by the Seller, should be paid directly to the Buyer.
CLAUSE 14 - TERMS OF PAYMENT
----------------------------
14.1 The Seller will submit its charges to the Buyer for payment in
accordance with the following procedure:
14.1.1 45% of the estimated cost of the workpackage prior to the
commencement of the Services defined in Main Agreement
Clause 3, for payment within 48 hours of notification of the
sum required.
14.1.2 45% of the estimated cost of the workpackage upon completion
of the Services (but prior to despatch of the Unit) defined
in Main Agreement Clause 3 for payment within 48 hours of
notification of the sum required. Subsequently, the Seller
shall submit, as soon as complete returns are available, a
final invoice for payment within 30 days of despatch from
the Seller of such final invoice.
14.2 The Buyer shall pay, in US Dollars, all sums due to the account of the
Seller at:
Barclays Bank plc
Cardiff Cathedral Road Business Centre
Cardiff West Group of Branches
XX Xxx 00
Riverside House
00 Xxxxxxxxx Xxxx
Xxxxxxx XX0 0XX
Bank Sort Code: 20-07-91
Account No: 00000000
14.3 The Seller shall charge the Buyer interest on overdue payments. Such
interest will be charged for each month or part of a month that any
payment is overdue. The interest rate per month to be charged on
overdue payments, r, shall be calculated as follows :
r = R + 2
-
12
where R is the annual interest rate published monthly by the United
Kingdom Clearing Banks.
14.4 All charges stated in this Agreement are exclusive of any tax or duty
that may be payable in respect of the Services. The Buyer assumes full
and exclusive liability for the payment of such taxes or duties
properly payable by the Buyer, should these by levied by the national
fiscal authority of the United Kingdom.
CLAUSE 15 - CHARGE VARIATION
----------------------------
15.1 By 1st December of each year, or as soon as possible thereafter, the
Seller shall advise the Buyer of any proposed variation to the
charges. Any such variation shall be based on actual cost increases
incurred by the Seller.
15.2 The parties both agree that any increases or decreases in any taxes
(other than those assessed upon or chargeable by reference to the
income or profit of either party) duties or other levies imposed by
competent Fiscal Authorities upon any charge, matter or thing arising
under this Agreement shall be chargeable to the Buyer from the date
upon which such increases or decreases come into effect.
15.3 The maximum handling charges referred to in Main Agreement Clause 3
will be increased or decreased commensurate with any manufacturer's
percentage price increase or decrease.
CLAUSE 16 - INDEMNITY AND LIABILITY
-----------------------------------
16.1 Units in transit between the Buyer and OWS and between OWS and the
Buyer, shall be at the sole risk of the Buyer.
16.2 Save in respect of any liability of the Seller expressly proviced for in
this Agreement and or any liability mandatorily imposed by law, the
Seller, its Affilliates, its agents and sub-contractors and its and their
respective employees (the "Seller Parties") shall not be responsible to
the Buyer for, any and all claims, demands, damages, loss costs and
proceedings of whatsoever nature made, suffered or incurred under or in
connection with this Agreement or the Services supplied by the Seller
pursuant to this Agreement howsoever arising, and of whatsoever nature,
whether in contract, tort, arising under statute or otherwise.
16.3 If any Unit, Part, Pooled Part or material owned by the Buyer, is in the
custody or control of the Seller and is lost, destroyed or damaged,
between the time when the Seller receives it at and later despatches it
from its premises as a result of wilful misconduct or a negligent act or
omission of the Seller, its agents or sub-contractors, then the Seller
shall at its own discretion, take one of the following actions:
16.3.1 Repair any damage free of charge.
16.3.2 Provide a replacement Unit, Part, Pooled Part, or material of
equivalent standard, free of charge,
16.3.3 Pay to the Buyer a sum which, at the time of such loss,
destruction or damage of the Unit, Part, Pooled Part or material
is equal to the latest catalogue price less, in each case, a
reasonable reduction to take into account the age, usage and
condition of the item concerned.
Performance by the Seller of its obligations under this Clause
shall be in full discharge of any liability to the Buyer in
respect of the loss, destruction or damage covered by this Clause.
16.4 The Seller shall indemnify and hold harmless the Buyer from and against
all claims, costs demands and proceedings, whether in contract, tort,
statute or otherwise at law arising or in any way connected with injury to
or death of any of the Indemnified Parties' personnel or subject to
Schedule Clause 11.3 loss of or damage to the Seller's property which may
result from or arise in any manner out of or in relation to the Services
provided under this Agreement and regardless of negligence unless caused
by the wilful misconduct of the Buyer or its employees.
16.5 The Buyer shall indemnify and hold harmless the Indemnified Parties from
and against any and all claims, costs, demands and proceedings, whether in
contract, tort statute or otherwise at law arising out of the death or
personal injury occurring to the Buyer's personnel and those personnel of
its agents and sub-contractors while at the Seller's premises during the
subsistence of this Agreement and regardless of negligence unless such
death or personal injury is caused by the wilful misconduct of the
Indemnified Parties.
16.6 The Seller will not be liable to the Buyer in any event for any indirect
or consequential damage or loss (including without limitation loss of
revenue, loss of profits or loss of business opportunity) regardless of
whether any claim for such damage shall be based upon or in contract,
strict liability, negligence or any other tort and any other such claim is
hereby waived.
16.7 The total liability of the Seller and the Seller Parties on any claim
whether based upon or in contract, strict liability, negligence or any
other tort, arising out of connected with or related to this Agreement
shall in no event exceed the greater of the costs of repairing or
replacing the particular part or Unit in respect of which the claim is
made.
16.8 None of the provisions of this Agreement excluding or restricting
liability of the Seller shall extend to any liability which cannot under
the terms of the Unfair Xxxxxxxx Xxxxx Xxx 0000 or any other UK statute,
and notwithstanding any agreement between the Buyer and the Seller to the
contrary, be excluded.
CLAUSE 17 - FORCE MAJEURE
-------------------------
17.1 If either party is prevented or impeded from performing its obligations
under this Agreement by Force Majeure, or in the event of any Force
Majeure occurring which materially affects either party's ability to
perform this Agreement in whole or in part by its normal means or which
makes doing the same substantially more difficult or expensive it shall
promptly give notice to the other party stating the circumstances
constituting Force Majeure and the extent thereof and the obligations of
the parties shall thereupon be suspended for so long as the circumstances
of Force Majeure may continue and for any further period that the party
affected may reasonably need to recover from such Force Majeure event.
The party prevented or impeded from performing its obligations under
this Agreement by Force Majeure shall use every reasonable effort to
minimise the effects thereof and shall promptly resume performance of its
obligations under this Agreement at the soonest possible moment.
17.1.1 "Force Majeure" shall mean any event or circumstance which is
outside the reasonable control of the party concerned including,
but not limited by reference to, acts of God, hostilities, acts,
decisions, directives, orders or regulations of governments or the
Commission of the European Communities, embargoes, sabotage, civil
disturbance, labour disputes involving complete or partial
stoppage of work or restrictions to normal working practices,
flood, fire, impact, explosion, non-permitted action of the other
party, or its Affiliates, to this Agreement.
17.2 Notwithstanding the terms of Schedule Clause 17.1, in the event of a
labour dispute arising during the period of this Agreement, the Seller
shall endeavour to take the following action in respect of Units which are
either complete or in an almost complete state;
17.2.1 Release to the Buyer, either in advance of, or during, a labour
dispute, complete units in the Sellers possession either before
commencement or after reassembly of the Units;
17.2.2 Use all reasonable endeavours to expedite work on Units that are
almost completed prior to an imminent dispute.
17.3 The Seller shall not be liable for any delay in obtaining customs
clearance from HM Customs and Excise of any item required by the Seller to
perform the Services if such delay is due to circumstances beyond the
reasonable control of the Seller and is not due to its fault or
negligence. If such a delay occurs, the Seller shall promptly advise the
Buyer of the circumstances which gave rise to the said delay.
CLAUSE 18 - TERMINATION
-----------------------
18.1 Either party may terminate this Agreement forthwith by written notice to
the other at any time if any of the following occur:
18.1.1 The other files a voluntary petition in bankruptcy or insolvency.
18.1.2 Proceedings in bankruptcy or insolvency are instituted against the
other and a's not contested or opposed witnin 30 days thereafter.
18.1.3 A court takes and retains for at least 30 days jurisdiction of the
other or its assets under any reorganisation or insolvency act.
18.1.4 A receiver, administrator, administrative receiver or similar
officer is appointed in respect of the other or of a substantial
proportion of its assets or any event occurs or proceedinos are
taken in respect of such party in any jurisdiction to which it is
subject, which has an effect equivalent to the above events.
18.1.5 The other becomes insolvent or suspends business.
18.1.6 The other makes an assignment for the benefit of its creditors.
18.1.7 The other party commits a substantial breach of this Agreement
which is incapable of remedy.
18.1.8 If, under the terms of this Agreement, the other party commits a
breach which is capable of being remedied and which shall not have
been remedied within 15 days of the receipt of a notice in writing
requiring the remedy of such default, then the party serving the
notice shall have the right to terminate this Agreement forthwith
by giving a further notice to that effect.
The effective date of such termination shall be the date
contained in the said notice.
18.2 Either party may terminate this Agreement other than under Schedule Clause
18.1 by giving three (3) months written notice to the other and the
effective date of such termination notice shall be the date on which such
notice is sent.
18.3 Any work in progress at the date of termination shall be completed and the
provisions of this Agreement shall continue to apply until all matters
arising in respect thereof have been discharged. Any termination arising
under this Clause shall be without prejudice to any matter or thing
arising before the date of termination.
CLAUSE 19 - NON WAIVER
----------------------
19.1 No failure at any time of either party to enforce any provision of this
Agreement shall either constitute a waiver of such provision nor
prejudice the right of such party to enforce such provisions at any
subsequent time.
CLAUSE 20 - ALTERATIONS AND AMENDMENTS TO AGREEMENT
---------------------------------------------------
20.1 No alterations, amendments or variations, to the terms and conditions of
this Agreement will be effective unless contained in a written document
signed by an authorized representative of each party.
CLAUSE 21 - APPLICABLE LAW, INVALIDITY AND RESTRICTIVE TRADE PRACTICES ACT
--------------------------------------------------------------------------
21.1 This Agreement will in all respects be subject to and interpreted in all
respects in accordance with the Laws of England and, in the event of any
dispute, the parties hereto agree to submit to the Jurisdiction of the
High Court of England.
21.2 Invalidity If any term or provision in this Agreement shall be held to
be illegal or unenforceable, in whole or in part, under any enactment or
rule of law, such term or provision or part shall to that extent be deemed
not to form part of this Agreement and the enforceability of the remainder
of this Agreement shall not be affected.
21.3 Restrictive Trade Practices Act If there is any provision of this
Agreement, or of any other agreements to be entered into pursuant hereto
or of any other arrangements of which this Agreement forms part, which
causes or would cause this Agreement or that agreement or arrangement to
be subject to registration under the Restrictive Trade Practices Act 1976
than that provision shall not take effect until the day after particulars
of this Agreement or of that agreement or arrangement (as the case may be)
have been furnished to the Director General of Fair Trading pursuant to
Section 24 of the Act.
CLAUSE 22 - ENTIRE AGREEMENT
----------------------------
22.1 This Agreement represents the entire agreement of the parties hereto and
supersedes all previous negotiations, statements or agreements whether
written or oral.
