A350 PURCHASE AGREEMENT BETWEEN AIRBUS S.A.S as Seller AND CHINA SOUTHERN AIRLINES COMPANY LIMITED as Buyer AND CHINA SOUTHERN AIRLINES GROUP IMPORT AND EXPORT TRADING CORP., LTD. as Consenting Party Buyer’s reference: 17SIES2003FR Seller’s reference:...
Exhibit 4.43
A350
BETWEEN
AIRBUS S.A.S
as Seller
AND
CHINA SOUTHERN AIRLINES COMPANY LIMITED
as Buyer
AND
CHINA SOUTHERN AIRLINES GROUP
IMPORT AND EXPORT TRADING CORP., LTD.
as Consenting Party
Buyer’s reference: 17SIES2003FR
Seller’s reference: CT1600622
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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CONTENTS
CLAUSES | TITLES | |
0 | DEFINITIONS AND INTERPRETATION | |
1 | SALE AND PURCHASE | |
2 | SPECIFICATION | |
3 | PRICES | |
4 | PRICE REVISION | |
5 | PAYMENTS | |
6 | MANUFACTURE PROCEDURE—INSPECTION | |
7 | CERTIFICATION | |
8 | TECHNICAL ACCEPTANCE | |
9 | DELIVERY | |
10 | EXCUSABLE DELAY | |
11 | NON-EXCUSABLE DELAY | |
12 | WARRANTIES AND SERVICE LIFE POLICY | |
13 | PATENT AND COPYRIGHT INDEMNITY | |
14 | TECHNICAL DATA AND SOFTWARE SERVICES | |
15 | SELLER REPRESENTATIVES SERVICES | |
16 | TRAINING SUPPORT AND SERVICES | |
17 | SUPPLIER AND ACS SUPPLIER PRODUCT SUPPORT | |
18 | BUYER FURNISHED EQUIPMENT AND AIRBUS CONTRACTED SUPPLIER EQUIPMENT | |
19 | INDEMNIFICATION AND INSURANCE | |
20 | TERMINATION | |
21 | ASSIGNMENTS AND TRANSFERS | |
22 | MISCELLANEOUS PROVISIONS |
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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CONTENTS
EXHIBITS | TITLES | |
Exhibit A | SPECIFICATION | |
Exhibit B | B-1: FORM OF A SPECIFICATION CHANGE NOTICE | |
B-2: FORM OF A MANUFACTURER’S SPECIFICATION CHANGE NOTICE | ||
Exhibit C | AIRCRAFT PRICE REVISION FORMULA | |
Exhibit D | FORM OF CERTIFICATE OF ACCEPTANCE | |
Exhibit E | FORM OF XXXX OF SALE | |
Exhibit F | SERVICE LIFE POLICY – LIST OF ITEMS | |
Exhibit G | TECHNICAL DATA INDEX | |
Exhibit H | MATERIAL SUPPLY AND SERVICES | |
Exhibit I | LICENSES AND ON LINE SERVICES |
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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A350 PURCHASE AGREEMENT
This A350 Purchase Agreement (the “Agreement”) is made 2017
BETWEEN:
AIRBUS S.A.S., a société par actions simplifiée, created and existing under French law having its registered office at 0 Xxxx-Xxxxx Xxxxxxx Xxxxxxxx, 00000 Xxxxxxx-Xxxxx, Xxxxxx and registered with the Toulouse Registre du Commerce under number RCS Toulouse 383 474 814 (the “Seller”),
and
CHINA SOUTHERN AIRLINES COMPANY LIMITED, a company organised under the laws of the People’s Republic of China having its principal place of business at Xx000, Xxxxxxx Xxxx Xxxxxx Xxxxxxxx, Xxxxxxxxx 000000, People’s Republic of China, (the “Buyer”),
and
CHINA SOUTHERN AIRLINES GROUP IMPORT AND EXPORT TRADING CORP., LTD., having its principal office at Nº 000, Xxxxxxx Xxxx Xxxxxx Xxxxxxxx, Xxxxxxxxx 000000, People’s Republic of China (the “Consenting Party”).
WHEREAS subject to the terms and conditions of this Agreement, the Seller desires to sell the Aircraft to the Buyer and the Buyer desires to purchase the Aircraft from the Seller.
NOW THEREFORE IT IS AGREED AS FOLLOWS:
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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0 | DEFINITIONS AND INTERPRETATION |
0.1 | In addition to words and terms elsewhere defined in this Agreement, the initially capitalised words and terms used in this Agreement shall have the meaning set out below. |
Affiliate means with respect to any person or entity, any other person or entity directly or indirectly controlling, controlled by or under common control with such person or entity.
Airbus Contracted Suppliers (ACS) Equipment has the meaning set out in Clause 12.3.2.1.2.
Airbus Contracted Suppliers Support Agreements has the meaning set out in Clause 12.3.2.1.3.
ACS Suppliers has the meaning set out in Clause 12.3.2.1.1.
ACS Supplier Base Price has the meaning set forth in Clause 2.1.4.1
AirbusWorld corresponds to the Seller’s customer portal as further defined in Part 2 of Exhibit I.
Aircraft means [***].
[***].
[***] means, as the context requires, [***] or any subsequent issue thereof applicable at the time of equipment selection.
[***] means the [***], a copy of which has been annexed hereto as Exhibit A.
Aircraft Training Services means any flight support services including but not limited to any and all training courses, flight training, flight assistance, line training, line assistance and more generally all flights of any kind performed by the Seller, its agents, employees or subcontractors, and maintenance support, maintenance training (including Practical Training), training support of any kind performed on aircraft and provided to the Buyer pursuant to this Agreement.
Airframe means the Aircraft excluding the Propulsion Systems.
[***] has the meaning set out in Clause 3.1.
[***] is set out in Exhibit C.
Aviation Authority means when used in respect of any jurisdiction the government entity, which under the laws of such jurisdiction has control over civil aviation or the registration, airworthiness or operation of aircraft in such jurisdiction.
Balance of Final Price has the meaning set out in Clause 5.4.1.
BFE Engineering Definition has the meaning set out in Clause 18.1.2.1.
BFE Seats has the meaning set out in Clause 2.1.4.2.
BFE Supplier means a supplier of Buyer Furnished Equipment.
Xxxx of Sale has the meaning set out in Clause 9.2.2.
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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Business Day means a day, other than a Saturday or a Sunday (or a bank holiday where the obligation takes place), on which business of the kind contemplated by this Agreement is carried on in France, in Germany, and in the People’s Republic of China or, where used in relation to a payment, which is a day on which banks are open for business in France, in Germany, in the People’s Republic of China, and in New York, USA as appropriate.
Buyer Furnished Equipment or BFE has the meaning set out in Clause 18.1.1.1.
Cabin Definition Closure Meeting or CDCM means the final cabin definition meeting relative to SFE and ACS Equipment that takes place at the A350XWB Customer Definition Centre in Hamburg, Germany.
Certificate of Acceptance has the meaning set out in Clause 8.3.
Contractual Definition Freeze or CDF has the meaning set out in Clause 2.4.1.
Customer Specific Price has the meaning set out in Clause 2.1.4.1.
Customisation Milestone Chart has the meaning set out in Clause 2.4.2.
Declaration of Design and Performance or DDP means the documentation provided by an equipment manufacturer guaranteeing that the corresponding equipment meets the requirements of the Specification, the interface documentation as well as all the relevant certification requirements.
Delivery means the transfer of title to the Aircraft from the Seller to the Buyer in accordance with Clause 9.
Delivery Date means the date on which Delivery shall occur.
Delivery Location means the facilities of the Seller at the location of final assembly of the Aircraft currently in Toulouse, France.
Excusable Delay has the meaning set out in Clause 10.1.
Export Airworthiness Certificate and Statement of Conformity means an export certificate of airworthiness and a statement of conformity issued by the Aviation Authority of the Delivery Location.
Final Price has the meaning set out in Clause 3.3.
General Terms and Conditions or GTC means the General Terms and Conditions of Access to and Use of AirbusWorld set forth in Part 2 to Exhibit I.
Goods and Services means any goods and services that may be purchased by the Buyer from the Seller, or, if applicable, its subsidiaries, as listed in the Seller’s relevant customer services catalogue, excluding Aircraft.
Gross Negligence means any act or omission done with intent to cause damage or recklessly and with knowledge that damage would probably result.
Ground Training Services means all training courses performed in classrooms, full flight simulator sessions, fixed base simulator sessions, field trips and any other services provided to the Buyer on the ground pursuant to this Agreement and which are not Aircraft Training Services.
[***]
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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Initial Technical Coordination Meeting or ITCM means the initial meeting relative to BFE Seats and associated IFE, during which the Buyer’s requirements and the technical constraints are captured, in order to launch the development of the corresponding BFE.
Manufacture Facilities means the various manufacture facilities of the Seller, its Affiliates or any sub-contractor, where the Airframe or its parts are manufactured or assembled.
Manufacturer Specification Change Notice or MSCN has the meaning set out in Clause 2.2.2.1.
Material has the meaning set out in Clause 1.2 of Exhibit H.
Non-Excusable Delay has the meaning set out in Clause 11.1.
Other Agreement means any agreement relating to the sale, purchase, financing, leasing, of any aircraft, of any such aircraft entered into between (a) the Seller or any of its Affiliates and (b) the Buyer.
Predelivery Payment means the payment(s) determined in accordance with Clause 5.3.
Propulsion Systems has the meaning set out in Clause 2.3.
Propulsion Systems Manufacturer means the manufacturer of the Propulsion Systems as set out in Clause 2.3.
Ready for Delivery means the time when the Technical Acceptance Process has been completed in accordance with Clause 8 and all technical conditions required for the issuance of the Export Airworthiness Certificate and the Statement of Conformity have been satisfied.
Scheduled Delivery Month has the meaning set out in Clause 9.1.
Scheduled Delivery Period has the meaning set out in Clause 9.1.
Scheduled Delivery Quarter has the meaning set out in Clause 9.1.
Seller Furnished Equipment or SFE corresponds to items of equipment that are identified in the Specification as being furnished by the Seller.
Seller Representatives means the representatives of the Seller referred to in Clause 15.
Seller Representatives Services means the services provided by the Seller to the Buyer and from the Buyer to the Seller pursuant to Clause 15.
Seller Service Life Policy has the meaning set out in Clause 12.2.
Spare Parts means the items of equipment and material that may be provided pursuant to Exhibit H.
Specification Change Notice or SCN means an agreement in writing between the parties to amend the Specification pursuant to Clause 2.
Specification means either (a) the Standard Specification if no SCNs are applicable or (b) if SCNs are issued, the Standard Specification as amended by all applicable SCNs.
Standard Specification means the [***].
Subsidiary means [***].
Supplier has the meaning set out in Clause 12.3.1.1.1.
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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Supplier Part has the meaning set out in Clause 12.3.1.1.2.
Supplier Product Support Agreement has the meaning set out in Clause 12.3.1.1.3.
SPSA Application means the application on AirbusWorld, which provides the Buyer with access to the Supplier Product Support Agreements and the Airbus Contracted Suppliers Support Agreements.
Technical Data has the meaning set out in Clause 14.1.
Total Loss has the meaning set out in Clause 10.4.
Type Certificate has the meaning set out in Clause 7.1.
Warranted Part has the meaning set out in Clause 12.1.1.
0.2 | Clause headings and the Index are inserted for convenience of reference only and shall be ignored in the interpretation of this Agreement. |
0.3 | In this Agreement unless the context otherwise requires: |
(a) | references to Clauses, Appendices and Exhibits are to be construed as references to the Clauses of, and Appendices, and Exhibits to this Agreement and references to this Agreement include its Schedules, Exhibits and Appendices; |
(b) | words importing the plural shall include the singular and vice versa; and |
(c) | references to a person shall be construed as including, without limitation, references to an individual, firm, company, corporation, unincorporated body of persons and any state or agency of a state. |
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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1 | SALE AND PURCHASE |
The Seller shall sell and deliver and the Buyer shall buy and take delivery of twenty (20) [***] Aircraft on the Delivery Date at the Delivery Location upon the terms and conditions contained in this Agreement.
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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2 | SPECIFICATION |
2.1 | Aircraft Specification |
2.1.1 | The Aircraft shall be manufactured in accordance with the corresponding Standard Specification, as may already have been modified or varied at the date of this Agreement by the Specification Change Notices listed in Appendix 1 to Exhibit A. |
2.1.2 | [***] |
2.1.3 | Comprehensive Offer |
In addition to the [***] , for the purpose of offering a comprehensive view of the available standard and optional features for both models, the Seller has also issued an [***]
This document encompasses the basic aircraft features and functionalities set forth in the respective Standard Specifications, as well as—under sections marked “Customisation”—the options available at the date hereof and constituting the Seller’s customisation offer.
2.1.4 | A350XWB Cabin Customisation |
Subject to Clause 2.4, the Buyer is offered the option to define the Aircraft through the selection of:
• | SFE or ACS catalogue cabin solutions and options developed by the Seller (“Catalogue Items”) out of the A350XWB Family ADD applicable at the time of customisation, and |
• | as an alternative, solely for seats and associated integrated in-flight entertainment equipment, Buyer Furnished Equipment. |
It is a prerequisite to the selection of ACS or BFE equipment, that:
• | any in-flight entertainment (IFE) equipment to be incorporated into the BFE Seats be exclusively BFE items, and |
• | any in-flight entertainment (IFE) equipment to be incorporated into ACS seats selected from the Catalogue Items be exclusively ACS items. |
2.1.4.1 | ACS Equipment |
The A350XWB Family ADD lists the pre-developed catalogue ACS Equipment available for selection by the Buyer. It is agreed and understood that such ACS Equipment shall be supplied exclusively by manufacturers qualified by the Seller as ACS Suppliers.
The Buyer shall choose the ACS Equipment and its features from the A350XWB Family ADD applicable at the time of the corresponding customisation and shall formally notify the Seller thereof in writing, by the date set in the Customisation Milestone Chart. Such selection shall be formally notified in writing at the date set forth to this effect in the Customisation Milestone Chart and shall subsequently be formalised through the SCN process described in Clause 2.2.1.
The Seller shall purchase and take title to the ACS Equipment. The Seller shall place the purchase order for the ACS Equipment either:
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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a) | at the price and associated price revision conditions jointly notified to the Seller by the Buyer and the ACS Supplier (the “Customer Specific Price”), or |
b) | at the corresponding ACS Supplier’s base price applicable to such equipment at the time of the order (the “ACS Supplier Base Price”). |
Should the Buyer and the corresponding ACS Supplier fail to jointly notify the Seller as per a) above at the latest ten (10) calendar days prior to the CDF date of the corresponding Aircraft, the Seller shall order the ACS Equipment at the then applicable ACS Supplier Base Price.
The format and recipient of the above notification shall be indicated to the Buyer during the customisation process.
2.1.4.2 | Alternative BFE Equipment |
In addition to the Catalogue Items chosen in the A350XWB Family ADD as set forth above, the Buyer may submit to the Seller for consideration specific alternative BFE seats (the “BFE Seats”) and associated in-flight entertainment (IFE) equipment to be incorporated into such BFE Seats, subject to the provisions of Clause 18.
2.2 | Specification Amendment |
The parties understand and agree that the Specification may be further amended following signature of this Agreement in accordance with the terms of this Clause 2.
2.2.1 | Specification Change Notice |
The Specification may be amended by written agreement between the parties in a Specification Change Notice (SCN). Each SCN shall be substantially in the form set out in Exhibit B1 and shall set out the SCN’s Aircraft embodiment rank and shall also set forth, in detail, the particular change to be made to the Specification and the effect, if any, of such change on design, performance, weight, Delivery Date of the Aircraft affected thereby and on the text of the Specification. An SCN may result in an adjustment of the Aircraft Base Price, which adjustment, if any, shall be specified in the SCN.
2.2.2 | Development Changes |
The Specification may also be amended to incorporate changes deemed necessary by the Seller to improve the Aircraft, prevent delay or ensure compliance with this Agreement (“Development Changes”), as set forth in this Clause 2.
2.2.2.1 | Manufacturer Specification Changes Notices |
The Specification may be amended by the Seller through a Manufacturer Specification Change Notice (“MSCN”), which shall be substantially in the form set out in Exhibit B2 hereto and shall set out the MSCN’s Aircraft embodiment rank as well as, in detail, the particular change to be made to the Specification and the effect, if any, of such change on performance, weight, Aircraft Base Price, Delivery Date of the Aircraft affected thereby and interchangeability or replaceability requirements under the Specification.
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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Except when the MSCN is necessitated by an Aviation Authority directive or by equipment obsolescence, in which case the MSCN shall be accomplished without requiring the Buyer’s consent, if the MSCN adversely affects the performance, weight, Base Price, Delivery Date of the Aircraft affected thereby or the interchangeability or replaceability requirements under the Specification, the Seller shall notify the Buyer of a reasonable period of time during which the Buyer must accept or reject such MSCN. If the Buyer does not notify the Seller of the rejection of the MSCN within such period, the MSCN shall be deemed accepted by the Buyer and the corresponding modification shall be accomplished.
2.2.2.2 | In the event of the Seller revising the Specification to incorporate Development Changes, which have no adverse effect on any of the elements as set forth in 2.2.2.1 above, such revision shall be performed by the Seller without the Buyer’s consent and the Seller shall as soon as practicable notify the Buyer in writing of any such change. |
In such cases, the Buyer shall have access to the details of such changes through the relevant application in AirbusWorld.
2.2.3 | [***] |
[***]
2.3 | Propulsion Systems |
2.3.1 | The Airframe shall be equipped with a set of [***] engines (the “Propulsion Systems”). |
2.3.2 | The above Propulsion Systems designation is received from the Propulsions Systems Manufacturer and is subject to amendment by the Propulsion Systems Manufacturer at any time prior to the Delivery Date. If the Propulsion Systems Manufacturer makes any such amendment, the amendment shall be automatically incorporated into this Agreement and the Propulsion Systems designation shall be adjusted accordingly. The Seller agrees to notify the Buyer as soon as it receives notice of any such amendment from the Propulsion Systems Manufacturer. It is understood by the parties that warranties for the Propulsion Systems will be provided directly to the Buyer by the Propulsion Systems Manufacturer. |
2.4 | Milestones |
2.4.1 | Contractual Definition Freeze |
The Customisation Milestone Chart defined in Clause 2.4.2 hereunder shall define the date(s) by which the contractual definition of the Aircraft must be finalised and all SCNs need to have been executed by the Buyer (the “Contractual Definition Freeze” or “CDF”) in order to enable their incorporation into the manufacturing of the Aircraft and Delivery of the Aircraft in the Scheduled Delivery Month.
2.4.2 | Customisation Milestone Chart |
Within a reasonable period following signature of the Agreement, the Seller shall provide the Buyer with a customisation milestones chart (the “Customisation Milestone Chart”), setting out how far in advance of the Scheduled Delivery Month of the Aircraft:
• | the Buyer needs to take certain decisions and actions; and |
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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• | the Buyer needs to provide certain information and documentation; and |
• | the Buyer needs to notify the selection of BFE Seats, together with the selected BFE in-flight-entertainment (IFE) equipment, and associated BFE Suppliers to the Seller; such notification shall be made in advance of the ITCM; and |
• | the Buyer needs to notify the selection of ACS seats, together with the selected ACS in-flight-entertainment (IFE) equipment, and associated ACS Suppliers to the Seller; such notification shall be made in advance of the CDCM; and |
• | the CDCM for ACS Equipment and the ITCM for BFE Seats, as applicable, shall be held; and |
• | SCNs must be executed in order to integrate into the Specification any items requested by the Buyer from the options set forth in the Seller’s A350XWB Family ADD applicable at the time of customisation or any other items that the Buyer wishes to have installed in the Aircraft as per Clauses 2.1.4 and 18. |
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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3 | PRICES |
3.1 | [***] Base Price |
3.1.1 | The Aircraft Base Price is the sum of: |
[***]
3.1.2 | The [***] Base Price has been established in accordance with the average economic conditions prevailing in [***] and corresponding to a theoretical delivery in [***] - (the “Base Period”). |
3.2 | Airbus Contracted Supplier (ACS) Equipment Price |
The conditions of purchasing of ACS Equipment for the Aircraft shall be the subject of a separate agreement between the Buyer and the respective ACS Suppliers. The Buyer and each ACS Supplier shall jointly communicate to the Seller the Customer Specific Price as per Clause 2.1.4.1, at which the Seller is to place the purchase order for each ACS Equipment selected by the Buyer.
Notwithstanding the foregoing, it is understood that ACS Equipment for the Aircraft shall be purchased by the Seller, in accordance with the agreed terms as set forth in Clause 2.1.4.1, and invoiced to the Buyer in accordance with Clause 3.3.
The following reference amounts (the “ACS Reference Price”) may be used as a budgetary guide for the ACS Equipment for the Buyer’s Aircraft:
[***]
at economic conditions prevailing for a theoretical delivery in [***]
3.3 | Final Price |
The Final Price of each Aircraft shall be the sum of:
(i) | the Aircraft Base Price as revised as of the Delivery Date in accordance with Clause 4; plus |
(ii) | the aggregate of all increases or decreases to the Aircraft Base Price as agreed in any Specification Change Notice or part thereof applicable to the Aircraft subsequent to the date of this Agreement as revised as of the Delivery Date in accordance with Clause 4; plus |
(iii) | the price of any and all ACS Equipment selected by the Buyer in the applicable Seller’s A350XWB Family Aircraft Description Document and purchased by the Seller, either at the corresponding ACS Supplier Base Price applicable at the time of the order (including any catalogue price revision applicable at the time of the purchase order), or at the Customer Specific Price(s) (including the associated price revision conditions) jointly communicated to the Seller by the Buyer and the respective ACS Suppliers as per Clause 2.1.4.1; plus |
(iv) | any other amount due by the Buyer to the Seller pursuant to this Agreement and/or any other written agreement between the Buyer and the Seller with respect to the Aircraft. |
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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4 | PRICE REVISION |
The [***] Base Price is subject to revision in accordance with the [***] Price Revision Formula up to and including the Delivery Date as set forth in Exhibit C.
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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5 | PAYMENTS |
5.1 | Seller’s Account |
The Buyer shall pay the Predelivery Payments, the Balance of Final Price and/or any other amount due by the Buyer to the Seller, to the Seller’s account:
[***]
5.2 | [***] |
[***]
5.3 | Predelivery Payments |
[***].
5.3.3 | Any Predelivery Payment received by the Seller shall constitute an instalment in respect of the Final Price of the Aircraft. The Seller shall be entitled to hold and use any Predelivery Payment as absolute owner thereof, subject only to (i) the obligation to deduct any such Predelivery Payment from the Final Price when calculating the Balance of Final Price or (ii) the obligation to pay to the Buyer an amount equal to the Predelivery Payments pursuant to any other provision of this Agreement. |
5.3.4 | If any Predelivery Payment is not received [***] |
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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5.3.5 | [***] |
5.4 | Balance of Final Price |
5.4.1 | The Balance of Final Price payable by the Buyer to the Seller on the Delivery Date shall be the Final Price less the amount of Predelivery Payments received by the Seller on or before the Delivery Date. |
5.4.2 | Upon receipt of the Seller’s invoice, and immediately prior to Delivery, the Buyer shall pay to the Seller the Balance of Final Price. |
5.5 | [***] |
5.6 | Method of Payment |
5.6.1 | All payments provided for in this Agreement shall be made in United States Dollars (USD) in immediately available funds. |
5.6.2 | [***] |
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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5.7 | [***] |
5.8 | Taxes |
5.8.1 | The amounts stated in this Agreement to be payable by the Buyer are exclusive of value added tax (“VAT”) chargeable under the laws of the Delivery Location and accordingly the Buyer shall pay any VAT chargeable in respect of supplies to the Buyer as contemplated by this Agreement. |
5.8.2 | The Seller shall pay all other taxes, duties or similar charges of any nature whatsoever levied, assessed, charged or collected for or in connection with the manufacture, assembly, sale and delivery under this Agreement of any of the Aircraft, services, instructions and data delivered or furnished hereunder provided such charges have been promulgated and are enforceable under the laws of the Delivery Location. |
5.8.3 | The Buyer shall bear the costs of and pay any and all taxes, duties or similar charges of any nature whatsoever not assumed by the Seller under Clause 5.8.2 including but not limited to any duties or taxes due upon or in relation to the importation or registration of the Aircraft in the Buyer’s country and/or any withholdings or deductions levied or required in the Buyer’s country in respect of the payment to the Seller of any amount due by the Buyer hereunder. |
5.9 | Proprietary Interest |
The Buyer shall not, by virtue of anything contained in this Agreement (including, without limitation, any Predelivery Payments hereunder, or any designation or identification by the Seller of a particular aircraft as an Aircraft to which any of the provisions of this Agreement refers) acquire any proprietary, insurable or other interest whatsoever in any Aircraft before Delivery of and payment for such Aircraft, as provided in this Agreement.
5.10 | Set-Off |
The Seller may set-off any matured obligation owed by the Buyer to the Seller and/or its Affiliates against any obligation (whether or not matured) owed by the Seller to the Buyer, regardless of the place of payment or currency (it being understood that if this obligation is unascertainable it may be estimated and the set-off made in respect of such estimate).
5.11 | Cross-Collateralisation |
5.11.1 | The Buyer hereby agrees that, notwithstanding any provision to the contrary in this Agreement, in the event that the Buyer should fail to make any material payment owing under this Agreement or under any other agreement between the Buyer and the Seller and/or any of their respective Affiliates (the “Other Agreement”), the Seller may: |
(i) | withhold payment to the Buyer or its Affiliates of any sums that may be due to or claimed by the Buyer or its Affiliates from the Seller or its Affiliates pursuant to this Agreement or any Other Agreement, including Predelivery Payments, unless or until the default under this Agreement or the Other Agreement is cured or remedied; and |
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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(ii) | apply any amount of any Predelivery Payment it then holds under this Agreement in respect of any of the Aircraft as well as any other monies held pursuant to any Other Agreement (collectively the “Relevant Amounts”) in such order as the Seller deems appropriate in satisfaction of any amounts due and unpaid by the Buyer or its Affiliates and to compensate for any losses and/or damages the Seller or its Affiliates may suffer as a result of the Buyer’s or its Affiliates’ failure to make payments in a timely manner under this Agreement or any Other Agreement. The Buyer acknowledges that the application of any of the Relevant Amounts as aforesaid may result in the Buyer or its Affiliates being in default (unless such default is otherwise cured or remedied) in relation to the agreement in respect of which such Relevant Amounts were originally granted or required to be paid, as the case may be. |
The rights granted to the Seller in the preceding paragraphs (i) and (ii) are without prejudice and are in addition to and shall not be deemed a waiver of any other rights and remedies the Seller or its Affiliates may have at law or under this Agreement or any Other Agreement, including the right of set-off.
5.11.2 | [***] |
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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6 | MANUFACTURE PROCEDURE – INSPECTION |
6.1 | Manufacture Procedure |
The Airframe shall be manufactured in accordance with the relevant requirements of the laws of the jurisdiction of incorporation of the Seller or of its relevant Affiliate as enforced by the Aviation Authority of such jurisdiction.
6.2 | Inspection |
6.2.1 | Subject to providing the Seller with certificates evidencing compliance with the insurance requirements set forth in Clause 19, the Buyer or its duly authorised representatives (the “Buyer’s Inspector(s)”) shall be entitled to inspect the manufacture of the Airframe and all materials and parts obtained by the Seller for the manufacture of the Airframe on the following terms and conditions; |
(i) | any inspection shall be made according to a procedure to be agreed upon with the Buyer but shall be conducted pursuant to the Seller’s own system of inspection as developed under the supervision of the relevant Aviation Authority; |
(ii) | the Buyer’s Inspector(s) shall have access to such relevant technical data as is reasonably necessary for the purpose of the inspection; |
(iii) | any inspection and any related discussions with the Seller and other relevant personnel by the Buyer’s Inspector(s) shall be at reasonable times during business hours and shall take place in the presence of relevant inspection department personnel of the Seller; |
(iv) | the inspections shall be performed in a manner not to unduly delay or hinder the manufacture or assembly of the Aircraft or the performance of this Agreement by the Seller or any other work in progress at the Manufacture Facilities. |
6.2.2 | Location of Inspections |
The Buyer’s Inspector(s) shall be entitled to conduct any such inspection at the relevant Manufacture Facility of the Seller or the Affiliates and where possible at the Manufacture Facilities of the sub-contractors provided that if access to any part of the Manufacture Facilities where the Airframe manufacture is in progress or materials or parts are stored are restricted for security or confidentiality reasons, the Seller shall be allowed reasonable time to make the relevant items available elsewhere.
6.3 | Seller’s Service for Buyer’s Inspector(s) |
For the purpose of the inspections, and commencing with the date of this Agreement until the Delivery Date, the Seller shall furnish without additional charge suitable space and office equipment in or conveniently located with respect to the Delivery Location for the use of a reasonable number of Buyer’s Inspector(s).
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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7 | CERTIFICATION |
7.1 | Type Certification |
The Aircraft has been type certificated under European Aviation Safety Agency (EASA) procedures for certification in the transport category. The Seller has obtained the relevant type certificate (the “Type Certificate”) to allow the issuance of the Export Airworthiness Certificate and/or the Statement of Conformity, as applicable.
7.2 | Export Airworthiness Certificate and/or Statement of Conformity |
7.2.1 | The Aircraft shall be delivered to the Buyer with an Export Airworthiness Certificate and/or with a Statement of Conformity, as applicable. |
7.2.2 | If, any time before the date on which the Aircraft is Ready for Delivery, any law or regulation is enacted, promulgated, becomes effective and/or an interpretation of any law or regulation is issued which requires any change to the Specification for the purposes of obtaining the Export Airworthiness Certificate or issuing the Statement of Conformity, as applicable, (a “Change in Law”), the Seller shall make the required variation or modification and the parties hereto shall sign a Specification Change Notice which specifies the effects, if any, upon the guaranteed performances, weights, interchangeability, time of Delivery, price of the Aircraft and text of the Specification. |
7.2.3 | The Seller shall as far as practicable (but at its sole discretion and without prejudice to Clause 7.3.1 (ii) take into account the information available to it concerning any proposed law, regulation or interpretation which could become a Change in Law in order to minimise the costs of changes to the Specification as a result of such proposed law, regulation or interpretation becoming effective prior to the Aircraft being Ready for Delivery. |
7.3 | Costs of SCNs for Certification |
7.3.1 | The costs of implementing the variation or modification referred to in Clause 7.2.2 above shall be |
(i) | for the account of the Seller if the Change in Law became effective prior to the date of this Agreement; |
(ii) | shared equally between the Seller and the Buyer if the Change in Law became effective after the date of this Agreement. |
7.3.2 | Notwithstanding the provisions of sub-Clauses 7.3.1 (i) and (ii), if the Change in Law relates to the Propulsion Systems, the costs shall be borne in accordance with such arrangements as may be made separately between the Buyer and the Propulsion Systems Manufacturer. |
7.4 | Validation of Export Airworthiness Certificate or Statement of Conformity |
7.4.1 | The Seller shall endeavour to obtain the validation of the Export Airworthiness Certificate or the Statement of Conformity, as applicable, by the Buyer’s Aviation Authority. |
7.4.2 | Where the Buyer’s Aviation Authority requires a modification to comply with additional import aviation requirements and/or supply of additional data prior to the issuance of the Export Airworthiness Certificate or the Statement of Conformity, as applicable, the Seller shall incorporate such modification and/or provide such data at costs to be borne by the Buyer. The parties shall sign a Specification Change Notice which specifies the effects, if any, upon the guaranteed performances, weights, interchangeability, time of Delivery and price of the Aircraft. |
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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8 | TECHNICAL ACCEPTANCE |
8.1 | Technical Acceptance Process |
8.1.1 | Prior to Delivery the Aircraft shall undergo a technical acceptance process, proposed by the Seller (the “Technical Acceptance Process”). Completion of the Technical Acceptance Process shall demonstrate the satisfactory functioning of the Aircraft and shall be deemed to demonstrate compliance with the Specification. Should it be established that the Aircraft does not comply with the Technical Acceptance Process requirements, the Seller shall without hindrance from the Buyer be entitled to carry out any necessary changes and, as soon as practicable thereafter, resubmit the Aircraft to such further Technical Acceptance Process as is necessary to demonstrate the elimination of the non-compliance. |
8.1.2 | The Technical Acceptance Process shall: |
(i) | commence on a date notified by the Seller to the Buyer by no less than [***] days notice; |
(ii) | take place at the Delivery Location; |
(iii) | be carried out by the personnel of the Seller; |
(iv) | include a technical acceptance flight which shall not exceed a period of three (3) hours. |
8.2 | Buyer’s Attendance |
8.2.1 | The Buyer shall be entitled to attend the Technical Acceptance Process and notification of the start of such Technical Acceptance Process shall be done in accordance with Clause 9.1.2. |
8.2.2 | If the Buyer elects to attend the Technical Acceptance Process, the Buyer: |
(i) | shall co-operate in complying with the reasonable requirements of the Seller with the intention of completing the Technical Acceptance Process within [***] after its commencement; |
(ii) | may have a maximum of [***] of the Buyer’s representatives (with no more than [***] such representatives having access to the cockpit at any one time) accompany the Seller’s representatives on a technical acceptance flight and during such flight the Buyer’s representatives shall comply with the instructions of the Seller’s representatives. |
8.2.3 | If the Buyer does not attend or fails to co-operate in the Technical Acceptance Process, the Seller shall be entitled to complete the Technical Acceptance Process and the Buyer shall be deemed to have accepted the Technical Acceptance Process as satisfactory in all respects. |
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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8.3 | Certificate of Acceptance |
Following completion of the Technical Acceptance Process, the Buyer shall sign and deliver to the Seller, in accordance with Clause 9.2.1, a certificate of acceptance in respect of the Aircraft in the form of Exhibit D (the “Certificate of Acceptance”).
8.4 | Aircraft Utilisation |
The Seller shall, without payment or other liability, be entitled to use the Aircraft prior to Delivery as may be necessary to obtain the certificates required under Clause 7, and such use shall not prejudice the Buyer’s obligation to accept Delivery of the Aircraft hereunder.
However the Seller shall not be authorised to use the Aircraft during more than [***] for any other purpose without the specific agreement of the Buyer.
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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9 | DELIVERY |
9.1 | Delivery Schedule |
9.1.1 | Subject to Clauses 2, 7, 8, 10 and 18, the Seller shall have the Aircraft Ready for Delivery at the Delivery Location within the following months or quarters: |
Aircraft Type |
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Each such month being, with respect to each Aircraft, the “Scheduled Delivery Month”.
Each such quarter being, with respect to each Aircraft, the “Scheduled Delivery Quarter”.
(Scheduled Delivery Month and Scheduled Delivery Quarter are collectively defined as “Scheduled Delivery Period”).
The Scheduled Delivery Month that have not been indicated at the time of signature of the Agreement of each Aircraft shall be notified in writing to the Buyer by the Seller no later than [***] prior to the first day of the Scheduled Delivery Quarter of such Aircraft.
9.1.2 | The Seller shall give the Buyer at least [***] prior written notice of the anticipated date on which the Aircraft shall be Ready for Delivery. [***]. |
9.1.3 | Until the Scheduled Delivery Month has been notified to the Buyer in accordance with Clause 9.1.1 above, the Scheduled Delivery Month of a certain Aircraft shall be deemed the [***] of the Scheduled Delivery Quarter for the purposes of Predelivery Payments. |
9.2 | Delivery |
9.2.1 | The Buyer shall, [***] after the date on which the Aircraft is Ready for Delivery, sign the Certificate of Acceptance, pay the Balance of the Final Price and send its representatives to the Delivery Location to take Delivery of, and collect, the Aircraft. |
9.2.2 | The Seller shall deliver and transfer title to the Aircraft free and clear of all encumbrances to the Buyer provided that the Balance of the Final Price has been paid by the Buyer pursuant to Clause 5.4 and that the Certificate of Acceptance has been signed and delivered to the Seller pursuant to Clause 8.3. The Seller shall provide the Buyer with a xxxx of sale in the form of Exhibit E (the “Xxxx of Sale”) and/or such other documentation confirming transfer of title and receipt of the Final Price as may reasonably be requested by the Buyer. Title to, property in and risk of loss of or damage to the Aircraft shall be transferred to the Buyer on Delivery. |
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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9.2.3.1 | Should the Buyer fail, within the period specified in Clause 9.2.1, to: |
(i) | deliver the signed Certificate of Acceptance to the Seller ; or |
(ii) | pay the Balance of the Final Price for the Aircraft to the Seller and take Delivery of the Aircraft; |
then the Buyer shall be deemed to have rejected delivery of the Aircraft without warrant when duly tendered to it hereunder. Without prejudice to Clause 5.7 and the Seller’s other rights under this Agreement or at law (a) the Seller shall retain title to the Aircraft and (b) the Buyer shall bear all risk of loss of or damage to the Aircraft and shall indemnify and hold the Seller harmless against any and all costs (including but not limited to any parking, storage, and insurance costs) and consequences resulting from such failure, it being understood that the Seller shall be under no duty towards the Buyer to store, park, insure, or otherwise protect the Aircraft.
9.2.3.2 | Should the Buyer fail to collect the Aircraft as mentioned in Clause 9.2.1 above and without prejudice to the Seller’s other rights under this Agreement or at law, the provisions of Clause 9.2.3.1 (b) shall apply. |
9.3 | Fly Away |
9.3.1 | The Buyer and the Seller shall co-operate to obtain any licenses, which may be required by the Aviation Authority of the Delivery Location for the purpose of exporting the Aircraft. |
9.3.2 | All expenses of, or connected with, flying the Aircraft from the Delivery Location after Delivery shall be borne by the Buyer. The Buyer shall make direct arrangements with the supplying companies for the fuel and oil required for all post-Delivery flights. |
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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10 | EXCUSABLE DELAY |
10.1 | The Buyer acknowledges that the Aircraft are to be manufactured by Seller in performance of this Agreement and that the Scheduled Delivery Months are based on the assumption that there shall be no delay due to causes beyond the control of the Seller. Accordingly, Seller shall not be responsible for any delay in the Delivery of the Aircraft or delay or interruption in the performance of the other obligations of the Seller hereunder due to causes beyond its control, and not occasioned by its fault or negligence including (but without limitation) acts of God or the public enemy, war, civil war, warlike operations, terrorism, insurrections or riots, fires, explosions, natural disasters, compliance with any applicable foreign or domestic governmental regulation or order, labour disputes causing cessation, slowdown or interruption of work, inability after due and timely diligence to procure materials, equipment or parts, general hindrance in transportation or failure of a sub-contractor or supplier to furnish materials, equipment or parts. Any delay or interruption resulting from any of the foregoing causes is referred to as an “Excusable Delay”. |
10.2 | If an Excusable Delay occurs: |
(i) | the Seller shall notify the Buyer of such Excusable Delay as soon as practicable after becoming aware of the same; |
(ii) | the Seller shall not be responsible for any damages arising from or in connection with such Excusable Delay suffered or incurred by the Buyer; |
(iii) | the Seller shall not be deemed to be in default in the performance of its obligations hereunder as a result of such Excusable Delay; and |
(iv) | the Seller shall as soon as practicable after the removal of the cause of the delay resume performance of its obligations under this Agreement and in particular shall notify to the Buyer the revised Scheduled Delivery Month. |
10.3 | Termination on Excusable Delay |
10.3.1 | If the Delivery of any Aircraft is delayed as a result of an Excusable Delay for a period of more than [***] after the last day of the Scheduled Delivery Month then either party may terminate this Agreement with respect to the Aircraft so affected by giving written notice to the other party within [***] after the expiry of such [***] period provided that the Buyer shall not be entitled to terminate this Agreement pursuant to this Clause if the Excusable Delay results from a cause within its control. |
10.3.2 | If the Seller concludes that the Delivery of any Aircraft shall be delayed for more than [***] after the last day of the Scheduled Delivery Month due to an Excusable Delay and as a result thereof reschedules Delivery of such Aircraft to a date or month reflecting such delay then the Seller shall promptly notify the Buyer in writing to this effect and shall include in such notification the new Scheduled Delivery Month. Either party may thereupon terminate this Agreement with respect to such Aircraft by giving written notice to the other party [***] after receipt by the Buyer of the notice of anticipated delay. |
10.3.3 | If this Agreement shall not have been terminated with respect to the delayed Aircraft during the [***] referred to in either Clause 10.3.1 or 10.3.2 above, then the Seller shall be entitled to reschedule Delivery and the new Scheduled Delivery Month shall be notified to the Buyer and shall be binding on the parties. |
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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10.4 | Total Loss, Destruction or Damage |
If prior to Delivery, any Aircraft is lost, destroyed or in the reasonable opinion of the Seller is damaged beyond repair (“Total Loss”), the Seller shall notify the Buyer to this effect within [***] of such occurrence. The Seller shall include in said notification (or as soon after the issue of the notice as such information becomes available to the Seller) the earliest date consistent with the Seller’s other commitments and production capabilities that an aircraft to replace the Aircraft may be delivered to the Buyer and the Scheduled Delivery Month shall be extended as specified in the Seller’s notice to accommodate the delivery of the replacement aircraft; provided, however, that in the event the specified extension of the Scheduled Delivery Month to a month is exceeding [***] after the last day of the original Scheduled Delivery Month then this Agreement shall terminate with respect to said Aircraft unless:
(i) | the Buyer notifies the Seller [***] of the date of receipt of the Seller’s notice that it desires the Seller to provide a replacement aircraft during the month quoted in the Seller’s notice; and |
(ii) | the parties execute an amendment to this Agreement recording the variation in the Scheduled Delivery Month; |
provided, however, that nothing herein shall require the Seller to manufacture and deliver a replacement aircraft if such manufacture would require the reactivation of its production line for the model or series of aircraft which includes the Aircraft purchased hereunder.
10.5 | Termination Rights Exclusive |
In the event that this Agreement shall be terminated as provided for under the terms of Clauses 10.3 or 10.4, such termination shall discharge all obligations and liabilities of the parties hereunder with respect to such affected Aircraft and undelivered material, services, data or other items applicable thereto and to be furnished hereunder and neither party shall have any claim against the other for any loss resulting from such non-delivery. The Seller shall in no circumstances have any liability whatsoever for Excusable Delay other than as set forth in this Clause 10.
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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11 | NON-EXCUSABLE DELAY |
11.1 | Liquidated Damages |
Should any of the Aircraft not be Ready for Delivery to the Buyer [***] after the last day of the Scheduled Delivery Month (as varied by virtue of Clauses 2, 7 and 10) (the “Delivery Period”) and such delay is not as a result of an Excusable Delay or Total Loss (a “Non-Excusable Delay”), then the Buyer shall have the right to claim, and the Seller shall pay by way of liquidated damages to the Buyer [***].
The amount of such liquidated damages shall in no event [***] in respect of any one Aircraft.
The Buyer’s right to be paid damages in respect of the Aircraft is conditional upon the Buyer submitting a claim in respect of such liquidated damages in writing to the Seller [***]
11.2 | Re-negotiation |
If, as a result of Non-Excusable Delay, Delivery does not occur in the period falling [***]after the Delivery Period, the Buyer shall have the right exercisable by written notice to the Seller given [***] to require from the Seller a re-negotiation of the Scheduled Delivery Month for the affected Aircraft. Unless otherwise agreed between the Seller and the Buyer during such re-negotiation, the said re-negotiation shall not prejudice the Buyer’s right to receive liquidated damages in accordance with Clause 11.1 during the period of Non-Excusable Delay.
11.3 | Termination |
If, as a result of Non-Excusable Delay, Delivery does not occur in the period falling [***] after the Delivery Period and the parties have not renegotiated the Scheduled Delivery Month pursuant to Clause 11.2, either party shall have the right exercisable by written notice to the other party, given not [***] to terminate this Agreement in respect of the affected Aircraft and neither party shall have any claim against the other in respect of such non-delivery except that the Seller shall pay to the Buyer an amount equal to the Predelivery Payments received from the Buyer hereunder in respect of such affected Aircraft and shall pay to the Buyer any amounts due pursuant to Clause 11.1.
11.4 | Limitation of Damages |
The Buyer and the Seller agree that payment by the Seller of the amounts due pursuant to Clause 11.1 shall be considered to be liquidated damages and have been calculated to compensate the Buyer for its entire damages for all losses of any kind due to Non-Excusable Delay. The Seller shall not in any circumstances have any liability whatsoever for Non-Excusable Delay other than as set forth in this Clause 11.
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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12 | WARRANTIES AND SERVICE LIFE POLICY |
This Clause covers the terms and conditions of the warranty and service life policy.
12.1 | Standard Warranty |
12.1.1 | Nature of Warranty |
For the purpose of this Agreement the term “Warranted Part” shall mean any Seller proprietary component, equipment, accessory or part, which is installed on an Aircraft at Delivery thereof and
(a) | which is manufactured to the detailed design of the Seller or a subcontractor of the Seller and |
(b) | which bears a part number of the Seller at the time of such Delivery. |
Subject to the conditions and limitations as hereinafter provided for and except as provided for in Clause 12.1.2, the Seller warrants to the Buyer that each Aircraft and each Warranted Part shall at Delivery to the Buyer be free from defects:
(i) | in material; |
(ii) | in workmanship, including without limitation processes of manufacture; |
(iii) | in design (including without limitation the selection of materials) having regard to the state of the art at the date of such design; and |
(iv) | arising from failure to conform to the Specification, except to those portions of the Specification relating to performance or where it is expressly stated that they are estimates, approximations or design aims. |
12.1.2 | Exclusions |
The warranties set forth in Clause 12.1.1 shall not apply to Buyer Furnished Equipment, nor to the Propulsion Systems, nor to any component, equipment, accessory or part installed on the Aircraft at Delivery that is not a Warranted Part except that:
(i) | any defect in the Seller’s workmanship in respect of the installation of such items in the Aircraft, including any failure by the Seller to conform to the installation instructions of the manufacturers of such items, that invalidates any applicable warranty from such manufacturers, shall constitute a defect in workmanship for the purpose of this Clause 12.1 and be covered by the warranty set forth in Clause 12.1.1 (ii); and |
(ii) | any defect inherent in the Seller’s design of the installation, in consideration of the state of the art at the date of such design, which impairs the use of such items, shall constitute a defect in design for the purpose of this Clause 12.1 and be covered by the warranty set forth in Clause 12.1.1 (iii). |
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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12.1.3 | Warranty Period |
The warranties set forth in Clauses 12.1.1 and 12.1.2 shall be limited to those defects that [***] after Delivery of the affected Aircraft (the “Warranty Period”).
12.1.4 | Buyer’s Remedy and Seller’s Obligation |
12.1.4.1 | The Buyer’s remedy and the Seller’s obligation and liability under Clauses 12.1.1 and 12.1.2 are limited to, at the Seller’s expense and option, the repair, replacement or correction of any Warranted Part which is defective (or to the supply of modification kits rectifying the defect), together with a credit to the Buyer’s account with the Seller of an amount equal to the mutually agreed direct labor costs expended in performing the removal and the reinstallation thereof on the Aircraft at the labor rate defined in Clause 12.1.7.5. |
The Seller may alternatively furnish to the Buyer’s account with the Seller a credit equal to the price at which the Buyer is entitled to purchase a replacement for the defective Warranted Part.
12.1.4.2 | In the event of a defect covered by Clauses 12.1.1 (iii), 12.1.1 (iv) and 12.1.2 (ii) becoming apparent within the Warranty Period, the Seller shall also, if so requested by the Buyer in writing, correct such defect in any Aircraft which has not yet been delivered to the Buyer, provided, however, |
(i) | that the Seller shall not be responsible, nor deemed to be in default on account of any delay in Delivery of any Aircraft or otherwise in respect of the performance of this Agreement, due to the Seller’s undertaking to make such correction and provided further |
(ii) | that, rather than accept a delay in the Delivery of any such Aircraft, the Buyer and the Seller may agree to deliver such Aircraft with subsequent correction of the defect by the Buyer at the Seller’s expense, or the Buyer may elect to accept Delivery and thereafter file a Warranty Claim as though the defect had become apparent immediately after Delivery of such Aircraft. |
12.1.4.3 | Cost of inspection |
In addition to the remedies set forth in Clauses 12.1.4.1 and 12.1.4.2, the Seller shall reimburse the direct labor costs incurred by the Buyer in performing inspections of the Aircraft to determine whether or not a defect exists in any Warranted Part within the Warranty Period subject to the following conditions:
(i) | such inspections are recommended by a Seller Service Bulletin to be performed within the Warranty Period; |
(ii) | the reimbursement shall not apply for any inspections performed as an alternative to accomplishing corrective action as recommended by the Seller when such corrective action has been made available to the Buyer and such corrective action could have reasonably been accomplished by the Buyer at the time such inspections are performed or earlier, |
(iii) | the labor rate for the reimbursement shall be the labor rate defined in Clause 12.1.7.5, and |
(iv) | the manhours used to determine such reimbursement shall not exceed the Seller’s estimate of the manhours required for such inspections. |
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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12.1.5 | Warranty Claim Requirements |
The Buyer’s remedy and the Seller’s obligation and liability under this Clause 12.1, with respect to any warranty claim submitted by the Buyer (each a “Warranty Claim”) are subject to the following conditions:
(i) | the defect having become apparent within the Warranty Period; |
(ii) | the Buyer having filed a warranty claim [***] of discovering the defect; |
(iii) | the Buyer having submitted to the Seller evidence reasonably satisfactory to the Seller that the claimed defect is due to a matter embraced within this Clause 12.1 and that such defect has not resulted from any act or omission of the Buyer, including but not limited to, any failure to operate and maintain the affected Aircraft or part thereof in accordance with the standards set forth in Clause 12.1.10 or from any act or omission of any third party; |
(iv) | the Seller having received a Warranty Claim complying with the provisions of Clause 12.1.6 below. |
12.1.6 | Warranty Administration |
The warranties set forth in Clause 12.1 shall be administered as hereinafter provided for:
12.1.6.1 | Claim Determination |
Determination as to whether any claimed defect in any Warranted Part is a valid Warranty Claim shall be made by the Seller and shall be based upon the claim details, reports from the Seller’s Representatives, historical data logs, inspections, tests, findings during repair, defect analysis and other relevant documents.
12.1.6.2 | Transportation Costs |
The cost of transporting a Warranted Part claimed to be defective to the facilities designated by the Seller and for the return therefrom of a repaired or replaced Warranted Part shall be borne by the Buyer.
12.1.6.3 | Return of an Aircraft |
If the Buyer and the Seller mutually agree, prior to such return, that it is necessary to return an Aircraft to the Seller for consideration of a Warranty Claim, the Seller shall bear the direct costs of fuel and landing fees to and from the Seller’s facilities for such return of the Aircraft. The Buyer shall make its reasonable efforts to minimize the duration of the corresponding flights.
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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12.1.6.4 | On Aircraft Work by the Seller |
If the Seller determines that a defect subject to this Clause 12.1 justifies the dispatch by the Seller of a working team to repair or correct such defect through the embodiment of one or several Seller’s Service Bulletins at the Buyer’s facilities, or if the Seller accepts the return of an Aircraft to perform or have performed such repair or correction, then the labor costs for such on-Aircraft work shall be borne by the Seller.
The condition which has to be fulfilled for on-Aircraft work by the Seller is that, in the opinion of the Seller, the work necessitates the technical expertise of the Seller as manufacturer of the Aircraft.
If said condition is fulfilled and if the Seller is requested to perform the work, the Seller and the Buyer shall agree on a schedule and place for the work to be performed.
12.1.6.5 | Warranty Claim Substantiation |
Each Warranty Claim filed by the Buyer under this Clause 12.1 shall contain at least the following data:
(a) | description of defect and action taken, if any, |
(b) | date of incident and/or removal date, |
(c) | description of Warranted Part claimed to be defective, |
(d) | part number, |
(e) | serial number (if applicable), |
(f) | position on Aircraft, |
(g) | total flying hours or calendar time, as applicable, at the date of defect appearance, |
(h) | time since last shop visit at the date of defect appearance, |
(i) | Manufacturer Serial Number of the Aircraft and/or its registration, |
(j) | Aircraft total flying hours and/or number of landings at the date of defect appearance, |
(k) | Warranty Claim number, |
(l) | date of Warranty Claim, |
(m) | Delivery Date of Aircraft or Warranted Part to the Buyer, |
Warranty Claims are to be addressed as follows:
AIRBUS
CUSTOMER SERVICES DIRECTORATE
WARRANTY ADMINISTRATION
ROND POINT XXXXXXX XXXXXXXX
X.X. 00
X 00000 XXXXXXX XXXXX
XXXXXX
12.1.6.6 | Replacements |
Title to and risk of loss of any Aircraft, component, accessory, equipment or part returned by the Buyer to the Seller shall at all times remain with the Buyer, except that:
(i) | risk of loss (limited to cost of replacement and excluding in particular loss of use) shall be with the Seller for as long as such Aircraft, component, accessory, equipment or part shall be under the care, custody and control of the Seller and; |
(ii) | title to and risk of loss of a returned component, accessory, equipment or part shall pass to the Seller upon shipment by the Seller to the Buyer of any item furnished by the Seller to the Buyer as a replacement therefor. |
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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Upon the Seller’s shipment to the Buyer of any replacement component, accessory, equipment or part provided by the Seller pursuant to this Clause 12.1, title to and risk of loss of such replacement component, accessory, equipment or part shall pass to the Buyer.
12.1.6.7 | Rejection |
The Seller shall provide reasonable written substantiation in case of rejection of a Warranty Claim. In such event the Buyer shall refund to the Seller reasonable inspection and test charges incurred in connection therewith.
12.1.6.8 | Inspection |
The Seller shall have the right to inspect the affected Aircraft, documents and other records relating thereto in the event of any Warranty Claim under this Clause 12.1.
12.1.7 | Inhouse Warranty |
12.1.7.1 | Seller’s Authorization |
The Seller hereby authorizes the Buyer to repair Warranted Parts (“Inhouse Warranty”) subject to the terms of this Clause 12.1.7.
12.1.7.2 | Conditions for Seller’s Authorization |
The Buyer shall be entitled to repair such Warranted Parts:
• | provided the Buyer notifies the Seller Representative of its intention to perform Inhouse Warranty repairs before any such repairs are started where the estimated cost of such repair is [***]. The Buyer’s notification shall include sufficient detail regarding the defect, estimated labor hours and material to allow the Seller to ascertain the reasonableness of the estimate. The Seller agrees to use all reasonable efforts to ensure a prompt response and shall not unreasonably withhold authorization; |
• | provided adequate facilities and qualified personnel are available to the Buyer; |
• | provided repairs are performed in accordance with the Seller’s Technical Data or written instructions; and |
• | only to the extent specified by the Seller, or, in the absence of such specification, to the extent reasonably necessary to correct the defect, in accordance with the standards set forth in Clause 12.1.10. |
12.1.7.3 | Seller’s Rights |
The Seller shall have the right to require the return of any Warranted Part, or any part removed therefrom, which is claimed to be defective if, in the judgment of the Seller, the nature of the claimed defect requires technical investigation. Such return shall be subject to the provisions of Clause 12.1.6.2. Furthermore, the Seller shall have the right to have a Seller Representative present during the disassembly, inspection and testing of any Warranted Part claimed to be defective, subject to such presence being practical and not unduly delaying the repair.
12.1.7.4 | Inhouse Warranty Claim Substantiation |
Claims for Inhouse Warranty credit shall be filed within the time period set forth in 12.1.5 (ii) and shall contain the same information as that required for Warranty Claims under Clause 12.1.6.5 and in addition shall include:
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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(a) | a report of technical findings with respect to the defect, |
(b) | for parts required to remedy the defect: |
• | part numbers, |
• | serial numbers (if applicable), |
• | parts description, |
• | quantity of parts, |
• | unit price of parts, |
• | related Seller’s or third party’s invoices (if applicable), |
• | total price of parts, |
(c) | detailed number of labor hours, |
(d) | Inhouse Warranty Labor Rate, |
(e) | total claim value. |
12.1.7.5 | Credit |
The Buyer’s sole remedy and the Seller’s sole obligation and liability with respect to Inhouse Warranty Claims shall be the credit to the Buyer’s account of an amount equal to the mutually agreed direct labor costs expended in performing the repair of a Warranted Part and to the direct costs of materials incorporated in said repair, determined as set forth below:
(a) | to determine direct labor costs, only manhours spent on removal from the Aircraft, disassembly, inspection, repair, reassembly, final inspection and test of the Warranted Part and reinstallation thereof on the Aircraft shall be counted. Any manhours required for maintenance work concurrently being carried out on the Aircraft or the Warranted Part shall not be included. |
(b) | The manhours counted as set forth above shall be multiplied by an agreed labor rate of [***] (“Inhouse Warranty Labour Rate”), which is deemed to represent the Buyer’s composite labor rate meaning the average hourly rate (excluding all fringe benefits, premium time allowances, social security charges, business taxes and the like) paid to the Buyer’s employees whose jobs are directly related to the performance of the repair. |
[***]
(c) | Direct material costs are determined by the prices at which the Buyer acquired such material, excluding any parts and materials used for overhaul and as may be furnished by the Seller at no charge. |
12.1.7.6 | Limitation |
The Buyer shall in no event be credited for repair costs (including labor and material) for any Warranted Part in excess [***] of the Seller’s current catalogue price for a replacement of such defective Warranted Part.
12.1.7.7 | Scrapped Material |
The Buyer shall retain any defective Warranted Part beyond economic repair and any defective part removed from a Warranted Part during repair for a period of [***] after submission of a claim for Inhouse Warranty credit relating thereto, whichever is longer. Such parts shall be returned to the Seller [***] of the Seller’s request to that effect.
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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Notwithstanding the foregoing, the Buyer may scrap any such defective parts, which are beyond economic repair and not required for technical evaluation locally, with the agreement of the Seller Representative(s).
Scrapped Warranted Parts shall be evidenced by a record of scrapped material certified by an authorized representative of the Buyer and shall be kept in the Buyer’s file for a least the duration of the applicable Warranty Period.
12.1.8 | Standard Warranty in case of Pooling or Leasing Arrangements |
Without prejudice to Clause 21.1, the warranties provided for in this Clause 12.1 for any Warranted Part shall accrue to the benefit of any airline in revenue service, other than the Buyer, if the Warranted Part enters into the possession of any such airline as a result of a pooling or leasing agreement between such airline and the Buyer, in accordance with the terms and subject to the limitations and exclusions of the foregoing warranties and to the extent permitted by any applicable law or regulations.
12.1.9 | Warranty for Corrected, Replaced or Repaired Warranted Parts |
Whenever any Warranted Part, which contains a defect for which the Seller is liable under Clause 12.1, has been corrected, replaced or repaired pursuant to the terms of this Clause 12.1, the period of the Seller’s warranty with respect to such corrected, repaired or replacement Warranted Part, whichever the case may be, shall be the remaining portion of the original warranty or twelve (12) months, whichever is longer.
If a defect is attributable to a defective repair or replacement by the Buyer, a Warranty Claim with respect to such defect shall be rejected, notwithstanding any subsequent correction or repair, and shall immediately terminate the remaining warranties under this Clause 12.1 in respect of the affected Warranted Part.
12.1.10 | Accepted Industry Standard Practices Normal Wear and Tear |
The Buyer’s rights under this Clause 12.1 are subject to the Aircraft and each component, equipment, accessory and part thereof being maintained, overhauled, repaired and operated in accordance with accepted industry standard practices, all Technical Data and any other instructions issued by the Seller, the Suppliers and the Propulsion Systems Manufacturer and all applicable rules, regulations and directives of the relevant Aviation Authorities.
The Seller’s liability under this Clause 12.1 shall not extend to normal wear and tear nor to:
(i) | any Aircraft or component, equipment, accessory or part thereof, which has been repaired, altered or modified after Delivery, except by the Seller or in a manner approved by the Seller; |
(ii) | any Aircraft or component, equipment, accessory or part thereof, which has been operated in a damaged state; |
(iii) | any component, equipment, accessory and part from which the trademark, name, part or serial number or other identification marks have been removed. |
12.1.11 | Limitation of liability |
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[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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12.2 | Seller Service Life Policy |
12.2.1 | In addition to the warranties set forth in Clause 12.1, the Seller further agrees that should a Failure occur in any Item (as these terms are defined herebelow) that has not suffered from an extrinsic force, then, subject to the general conditions and limitations set forth in Clause 12.2.4, the provisions of this Clause 12.2 shall apply. |
For the purposes of this Clause 12.2:
(i) | “Item” means any item listed in Exhibit “F”; |
(ii) | “Failure” means a breakage or defect that can reasonably be expected to occur on a fleetwide basis and which materially impairs the utility of the Item. |
12.2.2 | Periods and Seller’s Undertakings |
The Seller agrees that if a Failure occurs in an Item [***] after the Delivery of the Aircraft in which such Item was originally installed, the Seller shall, at its discretion and as promptly as practicable and with the Seller’s financial participation as hereinafter provided, either:
• | design and furnish to the Buyer a correction for such Item with a Failure and provide any parts required for such correction (including Seller designed standard parts but excluding industry standard parts), or |
• | replace such Item. |
12.2.3 | Seller’s Participation in the Costs |
Subject to the general conditions and limitations set forth in Clause 12.2.4, any part or Item that the Seller is required to furnish to the Buyer under this Service Life Policy in connection with the correction or replacement of an Item shall be furnished to the Buyer at the Seller’s then current sales price therefore, less the Seller’s financial participation determined in accordance with the following formula:
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[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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12.2.4 | General Conditions and Limitations |
12.2.4.1 | The undertakings set forth in this Clause 12.2 shall be valid after the period of the Seller’s warranty applicable to an Item under Clause 12.1. |
12.2.4.2 | The Buyer’s remedies and the Seller’s obligations and liabilities under this Service Life Policy are subject to the prior compliance by the Buyer with the following conditions: |
(i) | the Buyer shall maintain log books and other historical records with respect to each Item, adequate to enable the Seller to determine whether the alleged Failure is covered by this Service Life Policy and, if so, to define the portion of the costs to be borne by the Seller in accordance with Clause 12.2.3; |
(ii) | the Buyer shall keep the Seller informed of any significant incidents relating to an Aircraft, howsoever occurring or recorded; |
(iii) | the Buyer shall comply with the conditions of Clause 12.1.10; |
(iv) | the Buyer shall implement specific structural inspection programs for monitoring purposes as may be established from time to time by the Seller. Such programs shall be as compatible as possible with the Buyer’s operational requirements and shall be carried out at the Buyer’s expense. Reports relating thereto shall be regularly furnished to the Seller; |
(v) | the Buyer shall report any breakage or defect in a Item in writing to the Seller within [***] whether or not said breakage or defect can reasonably be expected to occur in any other aircraft, and the Buyer shall have provided to the Seller sufficient detail on the breakage or defect to enable the Seller to determine whether said breakage or defect is subject to this Service Life Policy. |
12.2.4.3 | Except as otherwise provided for in this Clause 12.2, any claim under this Service Life Policy shall be administered as provided for in, and shall be subject to the terms and conditions of, Clause 12.1.6. |
12.2.4.4 | In the event of the Seller having issued a modification applicable to an Aircraft, the purpose of which is to avoid a Failure, the Seller may elect to supply the necessary modification kit free of charge or under a pro rata formula. If such a kit is so offered to the Buyer, then, to the extent of such Failure and any Failures that could ensue therefrom, the validity of the Seller’s commitment under this Clause 12.2 shall be subject to the Buyer incorporating such modification in the relevant Aircraft, as promulgated by the Seller and in accordance with the Seller’s instructions, within a reasonable time. |
12.2.4.5 | This Service Life Policy is neither a warranty, performance guarantee, nor an agreement to modify any Aircraft or Airframe components to conform to new developments occurring in the state of airframe design and manufacturing art. |
The Seller’s obligation hereunder is to furnish only those corrections to the Items or provide replacements therefor as provided for in this Clause 12.2.
The Buyer’s sole remedy and relief for the non-performance of any obligation or liability of the Seller arising under or by virtue of this Service Life Policy shall be in the form of a credit, limited to the amount the Buyer reasonably expends in procuring a correction or replacement for any Item that is the subject of a Failure covered by this Service Life Policy and to which such non-performance is related.
The Buyer hereby waives, releases and renounces all claims to any further damages, direct, incidental or consequential, including loss of profits and all other rights, claims and remedies, arising under or by virtue of this Service Life Policy.
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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12.3 | Supplier and ACS Supplier Warranties and Service Life Policies |
Prior to/at Delivery of the first Aircraft, the Seller shall provide the Buyer, in accordance with the provisions of Clause 17, with:
a) | the warranties and, where applicable, service life policies that the Seller has obtained for Supplier Parts pursuant to the Supplier Product Support Agreements, and |
b) | the warranties that the Seller has obtained for ACS Equipment pursuant to the Airbus Contracted Suppliers Support Agreements. |
12.3.1 | Supplier Warranties and Service Life Policies |
12.3.1.1 | Definitions |
12.3.1.1.1 | “Supplier” means any supplier of Supplier Parts. |
12.3.1.1.2 | “Supplier Part” means any component, equipment, accessory or part installed in an Aircraft at the time of Delivery thereof and for which there exists a Supplier Product Support Agreement. For the sake of clarity, Propulsion Systems, ACS Equipment, Buyer Furnished Equipment and other equipment selected by the Buyer to be supplied by suppliers with whom the Seller has no existing enforceable warranty agreements are not Supplier Parts. |
12.3.1.1.3 | “Supplier Product Support Agreements” means agreements between the Seller and Suppliers, as described in Clause 17.1.2, containing enforceable and transferable warranties and, in the case of landing gear suppliers, service life policies for selected structural landing gear elements. |
12.3.1.2 | Supplier’s Default |
12.3.1.2.1 | In the event of any Supplier, under any standard warranty obtained by the Seller pursuant to Clause 12.3.1, defaulting in the performance of any material obligation with respect thereto and the Buyer submitting in reasonable time to the Seller reasonable proof that such default has occurred, then Clause 12.1 shall apply to the extent the same would have been applicable had such Supplier Part been a Warranted Part, except that the Supplier’s warranty period as indicated in the Supplier Product Support Agreement shall apply. |
12.3.1.2.2 | In the event of any Supplier, under any Supplier Service Life Policy obtained by the Seller pursuant to Clause 12.3.1, defaulting in the performance of any material obligation with respect thereto and the Buyer submitting in reasonable time to the Seller reasonable proof that such default has occurred, then Clause 12.2 shall apply to the extent the same would have been applicable had such Supplier Item been listed in Exhibit F, Seller Service Life Policy, except that the Supplier’s Service Life Policy period as indicated in the Supplier Product Support Agreement shall apply. |
12.3.1.2.3 | At the Seller’s request, the Buyer shall assign to the Seller, and the Seller shall be subrogated to, all of the Buyer’s rights against the relevant Supplier with respect to and arising by reason of such default and shall provide reasonable assistance to enable the Seller to enforce the rights so assigned. |
12.3.2 | ACS Supplier Warranties |
12.3.2.1 | Definitions |
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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12.3.2.1.1 | “ACS Supplier” means any supplier of ACS Equipment. |
12.3.2.1.2 | “ACS Equipment” means any component, equipment, accessory or part installed in an Aircraft at the time of Delivery thereof and for which there exists an Airbus Contracted Suppliers Support Agreement. For the sake of clarity, Propulsion Systems, Supplier Parts, Buyer Furnished Equipment and other equipment selected by the Buyer to be supplied by suppliers with whom the Seller has no existing enforceable warranty agreements are not ACS Equipment. |
12.3.2.1.3 | “Airbus Contracted Suppliers Support Agreements” means agreements between the Seller and ACS Suppliers, as described in Clause 17.2.2, containing enforceable and transferable warranties. |
12.3.2.2 | ACS Supplier’s Default |
The Buyer hereby:
a) | agrees and acknowledges that it shall have no right of recourse against the Seller with respect to any default by an ACS Supplier; and |
b) | waives to the fullest extent permitted by applicable law any right of recourse against the Seller (in contract and/or at law) with respect to any default by an ACS Supplier, |
in each case, following transfer by the Seller to the Buyer of warranties that the Seller has obtained for ACS Equipment pursuant to Airbus Contracted Suppliers Support Agreements.
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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12.4 | Interface Commitment |
12.4.1 | Interface Problem |
If the Buyer experiences any technical problem in the operation of an Aircraft or its systems due to a malfunction, the cause of which, after due and reasonable investigation, is not readily identifiable by the Buyer but which the Buyer reasonably believes to be attributable to the design characteristics of one or more components of the Aircraft (“Interface Problem”), the Seller shall, if so requested by the Buyer, and without additional charge to the Buyer except for transportation of the Seller’s personnel to the Buyer’s facilities, promptly conduct or have conducted an investigation and analysis of such problem to determine, if possible, the cause or causes of the problem and to recommend such corrective action as may be feasible. The Buyer shall furnish to the Seller all data and information in the Buyer’s possession relevant to the Interface Problem and shall cooperate with the Seller in the conduct of the Seller’s investigations and such tests as may be required.
At the conclusion of such investigation, the Seller shall promptly advise the Buyer in writing of the Seller’s opinion as to the cause or causes of the Interface Problem and the Seller’s recommendations as to corrective action.
12.4.2 | Seller’s Responsibility |
If the Seller determines that the Interface Problem is primarily attributable to the design of a Warranted Part, the Seller shall, if so requested by the Buyer and pursuant to the terms and conditions of Clause 12.1, correct the design of such Warranted Part to the extent of the Seller’s obligation as defined in Clause 12.1.
12.4.3 | Supplier’s Responsibility |
If the Seller determines that the Interface Problem is primarily attributable to the design of any Supplier Part, the Seller shall, if so requested by the Buyer, reasonably assist the Buyer in processing any warranty claim the Buyer may have against the Supplier.
12.4.4 | Joint Responsibility |
If the Seller determines that the Interface Problem is attributable partially to the design of a Warranted Part and partially to the design of any Supplier Part, the Seller shall, if so requested by the Buyer, seek a solution to the Interface Problem through cooperative efforts of the Seller and any Supplier involved.
The Seller shall promptly advise the Buyer of such corrective action as may be proposed by the Seller and any such Supplier. Such proposal shall be consistent with any then existing obligations of the Seller hereunder and of any such Supplier towards the Buyer. Such corrective action, when accepted by the Buyer, shall constitute full satisfaction of any claim the Buyer may have against either the Seller or any such Supplier with respect to such Interface Problem.
12.4.5 | General |
12.4.5.1 | All requests under this Clause 12.4 shall be directed to both the Seller and the Supplier. |
12.4.5.2 | Except as specifically set forth in this Clause 12.4, this Clause shall not be deemed to impose on the Seller any obligations not expressly set forth elsewhere in this Clause 12. |
12.4.5.3 | All reports, recommendations, data and other documents furnished by the Seller to the Buyer pursuant to this Clause 12.4 shall be deemed to be delivered under this Agreement and shall be subject to the terms, covenants and conditions set forth in this Clause 12. |
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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12.5 | Waiver, Release and Renunciation |
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[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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12.6 | Duplicate Remedies |
The Seller shall not be obliged to provide any remedy that duplicates any other remedy available to the Buyer in respect of the same defect under Clauses 12.1 and 12.2 as such Clauses may be amended, complemented or supplemented by other contractual agreements or by other Clauses of this Agreement.
12.7 | Negotiated Agreement |
The Buyer specifically recognizes that:
(i) | the Specification has been agreed upon after careful consideration by the Buyer using its judgment as a professional operator of aircraft; |
(ii) | this Agreement, and in particular this Clause 12, has been the subject of discussion and negotiation and is fully understood by the Buyer; and |
(iii) | the price of the Aircraft and the other mutual agreements of the Buyer set forth in this Agreement were arrived at in consideration of, inter alia, the provisions of this Clause 12, specifically including the waiver, release and renunciation by the Buyer set forth in Clause 12.5. |
12.8 | Disclosure to Third party Entity |
In the event of the Buyer intending to designate a third party entity (a “Third party Entity”) to administrate this Clause 12, the Buyer shall notify the Seller of such intention prior to any disclosure of this Clause to the selected Third party Entity and shall cause such Third party Entity to enter into a confidentiality agreement and or any other relevant documentation with the Seller solely for the purpose of administrating this Clause 12.
12.9 | Transferability |
Without prejudice to Clause 21.1, the Buyer’s rights under this Clause 12 may not be assigned, sold, transferred, novated or otherwise alienated by operation of law or otherwise, without the Seller’s prior written consent, which shall not be unreasonably withheld.
Any transfer in violation of this Clause 12.9 shall, as to the particular Aircraft involved, void the rights and warranties of the Buyer under this Clause 12 and any and all other warranties that might arise under or be implied in law.
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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13 | PATENT AND COPYRIGHT INDEMNITY |
13.1 | Indemnity |
13.1.1 | Subject to the provisions of Clause 13.2.3, the Seller shall indemnify the Buyer from and against any damages, costs or expenses including legal costs (excluding damages, costs, expenses, loss of profits and other liabilities in respect of or resulting from loss of use of the Aircraft) resulting from any infringement or claim of infringement by the Airframe (or any part or software installed therein at Delivery) of: |
(i) | any British, French, German, Spanish or U.S. patent; |
and |
(ii) | any patent issued under the laws of any other country in which the Buyer may lawfully operate the Aircraft, provided that : |
(1) | from the time of design of such Airframe, accessory, equipment or part and until infringement claims are resolved, such country and the flag country of the Aircraft are each a party to the Chicago Convention on International Civil Aviation of December 7, 1944, and are each fully entitled to all benefits of Article 27 thereof, |
or | in the alternative, |
(2) | from such time of design and until infringement claims are resolved, such country and the flag country of the Aircraft are each a party to the International Convention for the Protection of Industrial Property of March 20, 1883 (“Paris Convention”); |
and |
(iii) | in respect of computer software installed on the Aircraft, any copyright, provided that the Seller’s obligation to indemnify shall be limited to infringements in countries which, at the time of infringement, are members of The Berne Union and recognise computer software as a “work” under the Berne Convention. |
13.1.2 | Clause 13.1.1 shall not apply to: |
(i) | Buyer Furnished Equipment, nor |
(ii) | Propulsion Systems, nor |
(iii) | software not created by the Seller. |
13.1.3 | In the event that the Buyer is prevented from using the Aircraft (whether by a valid judgement of a court of competent jurisdiction or by a settlement arrived at between claimant, Seller and Buyer), the Seller shall at its expense either: |
(i) | procure for the Buyer the right to use the same free of charge to the Buyer; or |
(ii) | replace the infringing part of the Aircraft as soon as possible with a non-infringing substitute complying in all other respects with the requirements of this Agreement. |
13.2 | Administration of Patent and Copyright Indemnity Claims |
13.2.1 | If the Buyer receives a written claim or a suit is threatened or commenced against the Buyer for infringement of a patent or copyright referred to in Clause 13.1, the Buyer shall: |
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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(i) | forthwith notify the Seller giving particulars thereof; |
(ii) | furnish to the Seller all data, papers and records within the Buyer’s control or possession relating to such patent or claim; |
(iii) | refrain from admitting any liability or making any payment or assuming any expenses, damages, costs or royalties or otherwise acting in a manner prejudicial to the defense or denial of such suit or claim provided always that nothing in this sub-Clause (iii) shall prevent the Buyer from paying such sums as may be required in order to obtain the release of the Aircraft, provided such payment is accompanied by a denial of liability and is made without prejudice; |
(iv) | fully co-operate with, and render all such assistance to, the Seller as may be pertinent to the defense or denial of the suit or claim; |
(v) | act in such a way as to mitigate damages and / or to reduce the amount of royalties which may be payable as well as to minimise costs and expenses. |
13.2.2 | The Seller shall be entitled either in its own name or on behalf of the Buyer to conduct negotiations with the party or parties alleging infringement and may assume and conduct the defense or settlement of any suit or claim in the manner which, in the Seller’s opinion, it deems proper. |
13.2.3 | The Seller’s liability hereunder shall be conditional upon the strict and timely compliance by the Buyer with the terms of this Clause and is in lieu of any other liability to the Buyer express or implied which the Seller might incur at law as a result of any infringement or claim of infringement of any patent or copyright. |
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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14 | TECHNICAL DATA AND SOFTWARE SERVICES |
14.1 | Scope |
This Clause 14 covers the terms and conditions for the supply of technical data (hereinafter “Technical Data”) and software services described hereunder (hereinafter “Software Services”) to support the Aircraft operation.
14.1.1 | The Technical Data shall be supplied in the English language using the aeronautical terminology in common use. |
14.1.2 | All Technical Data shall be available on-line as set forth in Clause 14.4. Range, type, format and delivery schedule of the on-line Technical Data to be provided under this Agreement are outlined in Exhibit G hereto. |
14.2 | Aircraft Identification for Technical Data |
14.2.1 | [***] |
14.2.2 | The sequence shall not be interrupted unless two (2) different Propulsion Systems or two (2) different Aircraft models are selected. |
14.2.3 | The Buyer shall indicate to the Seller the Fleet Serial Number allocated to each Aircraft corresponding to the delivery schedule set forth in Clause 9.1.1 no later than twelve (12) months before the Scheduled Delivery Month of the first Aircraft. Neither the designation of such Fleet Serial Numbers nor the subsequent allocation of the Fleet Serial Numbers to Manufacturer Serial Numbers for the purpose of producing certain customized Technical Data shall constitute any property, insurable or other interest of the Buyer in any Aircraft prior to the Delivery of such Aircraft as provided for in this Agreement. |
The customized Technical Data that are affected thereby are the following:
[***]
14.3 | Integration of Equipment Data |
14.3.1 | Supplier Equipment |
Information, including revisions, relating to Supplier equipment that is installed on the Aircraft at Delivery or through Airbus Service Bulletins thereafter shall be introduced into the customized Technical Data to the extent necessary for the comprehension of the affected systems, at no additional charge to the Buyer.
14.3.2 | Airbus Contracted Supplier Equipment |
The Seller shall introduce Airbus Contracted Supplier Equipment data, for ACS Equipment that is installed on the Aircraft by the Seller, into the customized Technical Data, at no additional charge to the Buyer for the initial issue of the Technical Data provided at or before Delivery of the first Aircraft.
14.3.3 | Buyer Furnished Equipment |
14.3.3.1 The Seller shall introduce Buyer Furnished Equipment data for Buyer Furnished Equipment that is installed on the Aircraft by the Seller (hereinafter “BFE Data”) into the customized Technical Data, at no additional charge to the Buyer solely for the initial issue of the Technical Data provided at or before Delivery of the first Aircraft, provided such BFE Data is provided in accordance with the conditions set forth in Clauses 14.3.3.2 through 14.3.3.5.
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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14.3.3.2 | The Buyer shall supply, or shall cause the BFE Supplier(s) to supply on its behalf, BFE Data to the Seller [***] to the Scheduled Delivery Month of the first Aircraft. |
14.3.3.3 | The BFE Data shall be supplied in English and shall be established in compliance with the then applicable revision of ATA iSpecification 2200 and/or S1000D Specification jointly defined by the ASD (Aerospace and Defense Industries Association of Europe), AIA (Aerospace Industries Association) and ATA (Air Transport Association of America), as applicable. |
14.3.3.4 | The BFE Data shall be delivered in digital format and/or in Portable Document Format (PDF), as agreed between the Buyer and the Seller. |
14.3.3.5 | All costs related to the delivery to the Seller of the applicable BFE Data shall be borne by the Buyer. |
14.4 | Supply |
14.4.1 | Except as specifically otherwise set forth in Exhibit G, all Technical Data shall be made available on-line through the relevant services on the Seller’s customer portal AirbusWorld (“AirbusWorld”), as further described in Part 2 of Exhibit I to the Agreement. |
14.4.2 | The Technical Data shall be delivered according to a mutually agreed schedule to correspond with the Deliveries of Aircraft. The Buyer shall provide [***] when requesting a change to such delivery schedule. |
14.4.3 | It shall be the responsibility of the Buyer to coordinate and satisfy local Aviation Authorities’ requirements with respect to Technical Data. Upon request from the Buyer’s Aviation Authorities, such Aviation Authorities shall be given on-line access to the Buyer’s Technical Data. |
14.5 | Revision Service |
For each firmly ordered Aircraft covered under this Agreement, revision service for the Technical Data shall be provided on a free of charge basis for a period [***].
Thereafter revision service shall be provided in accordance with the terms and conditions set forth in the Seller’s then current Customer Services Catalog.
14.6 | Service Bulletins (SB) Incorporation |
During any Revision Service Period and upon the Buyer’s request, Seller Service Bulletin information shall be incorporated into the Technical Data, provided that the Buyer notifies the Seller through the AirbusWorld “Service Bulletin Reporting” service that it intends to accomplish such Service Bulletin, after which post Service Bulletin status shall be shown.
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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14.7 | Technical Data Familiarization |
Upon request by the Buyer, the Seller shall provide [***] of Technical Data familiarization training at the Seller’s or the Buyer’s facilities. The basic familiarization course is tailored for maintenance and engineering personnel.
14.8 | Customer Originated Changes (COC) |
In the event of the Buyer wishing to introduce Buyer originated data, including BFE Data after the initial issue of the Technical Data, (hereinafter “COC Data”) into any of the customized Technical Data that are identified as eligible for such incorporation in the Seller’s then current Customer Services Catalog, the Buyer shall notify the Seller of such intention.
The incorporation of any COC Data shall be performed under the methods and tools for achieving such introduction and the conditions specified in the Seller’s then current Customer Services Catalog.
14.9 | Advanced Consultation Tool |
14.9.1 | Some Technical Data shall be made available through several domains listed herebelow and shall be provided on-line through an Advanced Consultation Tool, which shall include the necessary navigation software and viewer to browse the Technical Data (hereinafter together referred to as “Advanced Consultation Tool”). |
14.9.2 | The Advanced Consultation Tool encompasses the following domains: |
[***]
14.9.3 | Further details on the Technical Data included in such Advanced Consultation Tool are set forth in Exhibit “G”. |
14.9.4 | The licensing conditions for the use of the Advanced Consultation Tool software shall be as set forth in Part 1 of Exhibit I to the Agreement, “End-User License Agreement for Airbus Software”. |
14.9.5 | The revision service and the license to use Advanced Consultation Tool shall be granted free of charge for the duration of the corresponding Revision Service Period. At the end of such Revision Service Period, the yearly revision service for the Advanced Consultation Tool and the associated license fee shall be provided to the Buyer under the commercial conditions set forth in the Seller’s then current Customer Services Catalog. |
14.10 | On-Line Access to Technical Data |
14.10.1 | Access to AirbusWorld shall be subject to the “General Terms and Conditions of Access to and Use of AirbusWorld” (hereinafter the “GTC”), as set forth in Part 2 of Exhibit I to this Agreement. |
14.10.2 | Access to AirbusWorld shall be granted free of charge for an unlimited number of the Buyer’s users (including two (2) Buyer’s Administrators) for the Technical Data related to the Aircraft which shall be operated by the Buyer. |
14.10.3 | Should AirbusWorld provide access to Technical Data in software format, the use of such software shall be further subject to the conditions of Part 1 of Exhibit I to the Agreement. |
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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14.11 | Waiver, Release and Renunciation |
The Seller warrants that the Technical Data are prepared in accordance with the state of art at the date of their conception. Should any Technical Data prepared by the Seller contain non-conformity or defect, the sole and exclusive liability of the Seller shall be to take all reasonable and proper steps to correct such Technical Data. Notwithstanding the above, no warranties of any kind shall be given for the Customer Originated Changes, as set forth in Clause 14.8.
[***]
14.12 | Proprietary Rights |
14.12.1 | All proprietary rights, including but not limited to patent, design and copyrights, relating to Technical Data shall remain with the Seller and/or its Affiliates as the case may be. |
These proprietary rights shall also apply to any translation into a language or languages or media that may have been performed or caused to be performed by the Buyer.
14.12.2 | Whenever this Agreement and/or any Technical Data provides for manufacturing by the Buyer, the consent given by the Seller shall not be construed as express or implicit approval howsoever neither of the Buyer nor of the manufactured products. The supply of the Technical Data shall not be construed as any further right for the Buyer to design or manufacture any aircraft or part thereof or spare part. |
14.13 | Performance Engineer’s Program |
14.13.1 | In addition to the Technical Data provided under Clause 14, the Seller shall provide to the Buyer Software Services, which shall consist of the Performance Engineer’s Programs (“PEP”) for the Aircraft type covered under this Agreement. Such PEP is composed of software components and databases and its use is subject to the license conditions set forth in Part 1 of Exhibit I to the Agreement “End-User License Agreement for Airbus Software”. |
14.13.2 | Use of the PEP shall be limited to [***] to be used on the Buyer’s computers for the purpose of computing performance engineering data. The PEP is intended for use on ground only and shall not be embarked on board the Aircraft. |
14.13.3 | The license to use the PEP and the revision service shall be provided [***]. |
14.13.4 | At the end of such PEP Revision Service Period, the PEP shall be provided to the Buyer at the standard commercial conditions set forth in the Seller’s then current Customer Services Catalog. |
14.14 | Future Developments |
The Seller continuously monitors technological developments and applies them to Technical Data, document and information systems’ functionalities, production and methods of transmission.
The Seller shall implement and the Buyer shall accept such new developments, it being understood that the Buyer shall be informed in due time by the Seller of such new developments and their application and of the date by which the same shall be implemented by the Seller.
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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14.15 | Confidentiality |
14.15.1 | This Clause, the Technical Data, the Software Services and their content are designated as confidential. All such Technical Data and Software Services are provided to the Buyer for the sole use of the Buyer who undertakes not to disclose the contents thereof to any third party without the prior written consent of the Seller save as permitted therein or pursuant to any government or legal requirement imposed upon the Buyer. |
14.15.2 | In the event of the Seller authorizing the disclosure of this Clause or any Technical Data or Software Services to third parties either under this Agreement or by an express prior written authorization and specifically, in the event of the Buyer intending to designate a maintenance and repair organization or a third party to perform the maintenance of the Aircraft or to perform data processing on its behalf (each a “Third party”), the Buyer shall notify the Seller of such intention prior to any disclosure of this Clause and/or the Technical Data and/or the Software Services to such Third party. |
The Buyer hereby undertakes to cause such Third party to agree to be bound by the conditions and restrictions set forth in this Clause 14 with respect to the disclosed Clause, Technical Data or Software Services and shall in particular cause such Third party to enter into a confidentiality agreement with the Seller and appropriate licensing conditions, and to commit to use the Technical Data solely for the purpose of maintaining the Buyer’s Aircraft and the Software Services exclusively for processing the Buyer’s data.
14.16 | Transferability |
Without prejudice to Clause 21.1, the Buyer’s rights under this Clause 14 may not be assigned, sold, transferred, novated or otherwise alienated by operation of law or otherwise, without the Seller’s prior written consent.
Any transfer in violation of this Clause 14.16 shall, as to the particular Aircraft involved, void the rights and warranties of the Buyer under this Clause 14 and any and all other warranties that might arise under or be implied in law.
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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15 | SELLER REPRESENTATIVE SERVICES |
The Seller shall provide at no charge to the Buyer the services described in this Clause 15, at the Buyer’s main base or at other locations to be mutually agreed.
15.1 | Customer Support Representative(s) |
15.1.1 | The Seller shall provide free of charge to the Buyer the services of Seller customer support representative(s), as defined in Appendix A to this Clause 15 (each a “Seller Representative”), at the Buyer’s main base or such other locations as the parties may agree. |
15.1.2 | In providing the services as described hereabove, any Seller Representatives, or any Seller employee(s) providing services to the Buyer hereunder, are deemed to be acting in an advisory capacity only and at no time shall they be deemed to be acting as Buyer’s employees or agents, either directly or indirectly. |
15.1.3 | The Seller shall provide to the Buyer an annual written accounting of the consumed man-months and any remaining man-month balance from the allowance defined in Appendix A. Such accounting shall be deemed final and accepted by the Buyer unless the Seller receives written objection from the Buyer within thirty (30) calendar days of receipt of such accounting. |
15.1.4 | In the event of a need for Aircraft On Ground (“AOG”) technical assistance after the end of the assignment referred to in Appendix A to this Clause 15, the Buyer shall have non-exclusive access to: |
(a) | AIRTAC (Airbus Technical AOG Center); |
(b) | The Seller Representative network closest to the Buyer’s main base. A list of contacts of the Seller Representatives closest to the Buyer’s main base shall be provided to the Buyer. |
As a matter of reciprocity, the Buyer shall authorize the Seller Representative(s), during his/their assignment at the Buyer’s, to provide similar assistance to another airline.
15.1.5 | Should the Buyer request Seller Representative services exceeding the allocation specified in Appendix A to this Clause 15, the Seller may provide such additional services subject to terms and conditions to be mutually agreed. |
15.1.6 | The Seller shall cause similar services to be provided by representatives of the Propulsion Systems Manufacturer and Suppliers, when necessary and applicable. |
15.2 | Buyer’s Support |
15.2.1 | From the date of arrival of the first Seller Representative and for the duration of the assignment, the Buyer shall provide free of charge a suitable lockable office, conveniently located with respect to the Buyer’s maintenance facilities, with complete office furniture and equipment including telephone, internet, email and facsimile connections for the sole use of the Seller Representative(s). All related communication costs shall be borne by the Seller upon receipt by the Seller of all relevant justifications, however the Buyer shall not impose on the Seller any charges other than the direct cost of such communications. |
15.2.2 | The Buyer shall reimburse the Seller the costs for the initial and termination assignment travel of the Seller Representatives of [***]. |
15.2.3 | [***]. |
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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15.2.4 | Should the Buyer request any Seller Representative referred to in Clause 15.1 above to travel on business to a city other than his usual place of assignment, the Buyer shall be responsible for all related transportation costs and expenses. |
15.2.5 | Absence of an assigned Seller Representative during normal statutory vacation periods are covered by the Seller Representatives as defined in Clause 15.1.4 and as such are accounted against the total allocation provided in Appendix A hereto. |
15.2.6 | The Buyer shall assist the Seller in obtaining from the civil authorities of the Buyer’s country those documents that are necessary to permit the Seller Representative to live and work in the Buyer’s country. Failure of the Seller to obtain the necessary documents shall relieve the Seller of any obligation to the Buyer under the provisions of Clause 15.1. |
15.2.7 | The Buyer shall reimburse to the Seller charges, taxes, duties, imposts or levies of any kind whatsoever, imposed by the authorities of the Buyer’s country upon: |
• | the entry into or exit from the Buyer’s country of the Seller Representatives and their families, |
• | the entry into or the exit from the Buyer’s country of the Seller Representatives and their families’ personal property, |
• | the entry into or the exit from the Buyer’s country of the Seller’s property, for the purpose of providing the Seller Representatives services. |
15.3 | Withdrawal of the Seller Representative |
The Seller shall have the right to withdraw its assigned Seller Representatives as it sees fit if conditions arise, which are in the Seller’s opinion dangerous to their safety or health or prevent them from fulfilling their contractual tasks.
15.4 | Indemnities |
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[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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APPENDIX A TO CLAUSE 15
SELLER REPRESENTATIVE ALLOCATION
The Seller Representative allocation provided to the Buyer pursuant to Clause 15.1 is defined hereunder.
1 | The Seller shall provide to the Buyer Seller Representative services at the Buyer’s main base or at other locations to be mutually agreed for a total [***]. |
2 | For the sake of clarification, such Seller Representatives’ services shall include initial Aircraft Entry Into Service (EIS) assistance and sustaining support services. |
3 | The number of the Seller Representatives assigned to the Buyer at any one time shall be mutually agreed, [***]. |
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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16 | TRAINING SUPPORT AND SERVICES |
16.1 | General |
16.1.1 | This Clause 16 sets forth the terms and conditions for the supply of training support and services for the Buyer’s personnel to support the Aircraft operation. |
16.1.2 | The range, quantity and validity of training to be provided free of charge under this Agreement are covered in Appendix A to this Clause 16. |
16.1.3 | Scheduling of training courses covered in Appendix A shall be mutually agreed during a training conference (the “Training Conference”) that shall be held no later [***]. |
16.2 | Training Location |
16.2.1 | The Seller shall provide training at its training center in Blagnac, France, and/or in Hamburg, Germany, or shall designate an affiliated training center in Miami, U.S.A., or Beijing, China (individually a “Seller’s Training Center” and collectively the “Seller’s Training Centers”). |
16.2.2 | If the unavailability of facilities or scheduling difficulties make training by the Seller at any Seller’s Training Center impractical, the Seller shall ensure that the Buyer is provided with such training at another location designated by the Seller. |
16.2.3.1 | Upon the Buyer’s request, the Seller may also provide certain training at a location other than the Seller’s Training Centers, including one of the Buyer’s bases, if and when practicable for the Seller, under terms and conditions to be mutually agreed upon. In such event, all additional charges listed in Clauses 16.5.2 and 16.5.3 shall be borne by the Buyer. |
16.2.3.2 | If the Buyer requests training at a location as indicated in Clause 16.2.3.1 and requires such training to be an Airbus approved course, the Buyer undertakes that the training facilities shall be approved prior to the performance of such training. The Buyer shall, as necessary and in due time prior to the performance of such training, provide access to the training facilities set forth in Clause 16.2.3.1 to the Seller’s and the competent Aviation Authority’s representatives for approval of such facilities. |
16.3 | Training Courses |
16.3.1 | Training courses shall be as described in the Seller’s customer services catalog (the “Seller’s Customer Services Catalog”). The Seller’s Customer Services Catalog also sets forth the minimum and maximum number of trainees per course. |
All training requests or training course changes made outside of the frame of the Training Conference shall be submitted by the Buyer with a minimum of three (3) months prior notice.
16.3.2 | The following terms and conditions shall apply to training performed by the Seller: |
(i) | Training courses shall be the Seller’s standard courses as described in the Seller’s Customer Services Catalog valid at the time of execution of the course. The Seller shall be responsible for all training course syllabi, training aids and training equipment necessary for the organization of the training courses; for the avoidance of doubt, for the purpose of performing training, such training equipment does not include aircraft. |
(ii) | The training equipment and the training curricula used for the training of flight, cabin and maintenance personnel shall not be fully customized but shall be configured in order to obtain the relevant Aviation Authority’s approval and to support the Seller’s training programs. |
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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(iii) | Training data and documentation for trainees receiving the training at the Seller’s Training Centers shall be provided free of charge. Training data and documentation shall be marked “FOR TRAINING ONLY” and as such are supplied for the sole and express purpose of training; training data and documentation shall not be revised. |
16.3.3 | When the Seller’s training courses are provided by the Seller’s instructors (individually an “Instructor” and collectively “Instructors”) the Seller shall deliver a Certificate of Recognition or a Certificate of Course Completion (each a “Certificate”) or an attestation (an “Attestation”), as applicable, at the end of any such training course. Any such Certificate or Attestation shall not represent authority or qualification by any Aviation Authority but may be presented to such Aviation Authority in order to obtain relevant formal qualification. |
In the event of training courses being provided by a training provider selected by the Seller as set forth in Clause 16.2.2, the Seller shall cause such training provider to deliver a Certificate or Attestation, which shall not represent authority or qualification by any Aviation Authority, but may be presented to such Aviation Authority in order to obtain relevant formal qualification.
16.3.4.1 | Should the Buyer wish to exchange any of the training courses provided under Appendix A hereto, the Buyer shall place a request for exchange to this effect with the Seller. The Buyer may exchange, subject to the Seller’s confirmation, the training allowances granted under Appendix A of the present Agreement as follows: |
(i) | flight operations training courses as listed under Article 1 of Appendix A against any flight operations training courses described in the Seller’s Customer Services Catalog current at the time of the Buyer’s request; |
(ii) | maintenance training courses as listed under Article 3 of Appendix A against any maintenance training courses described in the Seller’s Customer Services Catalog current at the time of the Buyer’s request; |
(iii) | should any one of the allowances granted thereunder (flight operations or maintenance) have been fully drawn upon, the Buyer shall be entitled to exchange flight operations or maintenance training courses as needed against the remaining allowances. |
The exchange value shall be based on the Seller’s ”Training Course Exchange Matrix” applicable at the time of the request for exchange and which shall be provided to the Buyer at such time.
It is understood that the above shall apply to the extent that training allowances granted under Appendix A remain in credit to the full extent necessary to perform the exchange.
All requests to exchange training courses shall be submitted by the Buyer with a minimum [***] prior notice. The requested training shall be subject to the Seller’s then existing planning constraints.
16.3.4.2 | Should the Buyer use none or only part of the training to be provided pursuant to this Clause 16, no compensation or credit of any nature shall be provided. |
16.3.5.1 | Should the Buyer decide to cancel or reschedule, fully or partially, and irrespective of the location of the training, a training course, a minimum advance notification of at least [***] prior to the relevant training course start date is required. |
16.3.5.2 | If the notification occurs less [***] prior to such training, a cancellation fee corresponding to [***] of such training shall be, as applicable, either deducted from the training allowance defined in Appendix A or invoiced at the Seller’s then applicable price. |
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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16.3.5.3 | If the notification occurs less [***] prior to such training, a cancellation fee [***] of such training shall be, as applicable, either deducted from the training allowance defined in Appendix A or invoiced at the Seller’s then applicable price. |
16.3.5.4 | All courses exchanged under Clause 16.3.4.1 shall remain subject to the provisions of this Clause 16.3.5. |
16.4 | Prerequisites and Conditions |
16.4.1 | Training shall be conducted in English and all training aids used during such training shall be written in English using common aeronautical terminology. |
16.4.2 | The Buyer hereby acknowledges that all training courses conducted pursuant to this Clause 16 are “Standard Transition Training Courses” and not “Ab Initio Training Courses”. |
16.4.3 | Trainees shall have the prerequisite knowledge and experience specified for each course in the Seller’s Customer Services Catalog. |
16.4.4.1 | The Buyer shall be responsible for the selection of the trainees and for any liability with respect to the entry knowledge level of the trainees. |
16.4.4.2 | The Seller reserves the right to verify the trainees’ proficiency and previous professional experience. |
16.4.4.3 | The Seller shall provide to the Buyer during the Training Conference an “Airbus Pre-Training Survey” for completion by the Buyer for each trainee. |
The Buyer shall provide the Seller with an attendance list of the trainees for each course, with the validated qualification of each trainee, at the time of reservation of the training course [***] calendar days before the start of the training course. The Buyer shall return concurrently thereto the completed Airbus Pre-Training Survey, detailing the trainees’ associated background. If the Seller determines through the Airbus Pre-Training Survey that a trainee does not match the prerequisites set forth in the Seller’s Customer Services Catalog, following consultation with the Buyer, such trainee shall be withdrawn from the program or directed through a relevant entry level training (ELT) program, which shall be at the Buyer’s expense.
16.4.4.4 | If the Seller determines at any time during the training that a trainee lacks the required level, following consultation with the Buyer, such trainee shall be withdrawn from the program or, upon the Buyer’s request, the Seller may be consulted to direct the above mentioned trainee(s), if possible, through any other required additional training, which shall be at the Buyer’s expense. |
16.4.5 | The Seller shall in no case warrant or otherwise be held liable for any trainee’s performance as a result of any training provided. |
16.5 | Logistics |
16.5.1 | Trainees |
16.5.1.1 | Living and travel expenses for the Buyer’s trainees shall be borne by the Buyer. |
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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16.5.1.2 | It shall be the responsibility of the Buyer to make all necessary arrangements relative to authorizations, permits and/or visas necessary for the Buyer’s trainees to attend the training courses to be provided hereunder. Rescheduling or cancellation of courses due to the Buyer’s failure to obtain any such authorizations, permits and/or visas shall be subject to the provisions of Clauses 16.3.5.1 thru 16.3.5.3. |
16.5.2 | Training at External Location—Seller’s Instructors |
16.5.2.1.1 | In the event of training being provided at the Seller’s request at any location other than the Seller’s Training Centers, as provided for in Clause 16.2.2, the expenses of the Seller’s Instructors shall be borne directly by the Seller. |
16.5.2.1.2 | In the event of training being provided by the Seller’s Instructor(s) at any location other than the Seller’s Training Centers at the Buyer’s request, the Buyer shall reimburse the Seller for all the expenses related to the assignment of such Seller Instructors and the performance of their duties as aforesaid. |
16.5.2.2 | Living Expenses |
Except as provided for in Clause 16.5.2.1.1 above, the Buyer shall reimburse the Seller the living expenses for each Seller Instructor and/or other Seller’s personnel providing support under this Clause 16, covering the entire period from his day of departure from his main base to day of return to such base at the perdiem rate set forth in the Seller’s Customer Services Catalog current at the time of the corresponding training or support.
Such perdiem shall include, but shall not be limited to, lodging, food and local transportation to and from the place of lodging and the training course location.
16.5.2.3 | Air Travel |
Except as provided for in Clause 16.5.2.1.1 above, the Buyer shall reimburse the Seller the airfares for each Seller Instructor and/or other Seller’s personnel providing support under this Clause 16, in confirmed business class to and from the Buyer’s designated training site and the Seller’s Training Centers, as such airfares are set forth in the Seller’s Customer Services Catalog current at the time of the corresponding training or support.
16.5.2.4 | Buyer’s Indemnity |
Except in case of Gross Negligence of the Seller, the Seller shall not be held liable to the Buyer for any delay or cancellation in the performance of any training outside of the Seller’s Training Centers associated with any transportation described in this Clause 16.5.2 and the Buyer shall indemnify and hold harmless the Seller from any such delay and/or cancellation and any consequences arising therefrom.
16.5.3 | Training Material and Equipment Availability—Training at External Location |
Training material and equipment necessary for course performance at any location other than the Seller’s Training Centers or the facilities of a training provider selected by the Seller shall be provided by the Buyer at its own cost in accordance with the Seller’s specifications.
Notwithstanding the foregoing, should the Buyer request the performance of a course at another location as per Clause 16.2.3.1, the Seller may, upon the Buyer’s request, provide the training material and equipment necessary for such course’s performance. Such provision shall be at the Buyer’s expense.
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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16.6 | Flight Operations Training |
The Seller shall provide training for the Buyer’s flight operations personnel as further detailed in Appendix A to this Clause 16, including the courses described in this Clause 16.6.
16.6.1 | Flight Crew Training Course |
The Seller shall perform a flight crew training course program for the Buyer’s flight crews, each of which shall consist of [***] who shall be either captain(s) or first officer(s).
16.6.2 | Base Flight Training |
16.6.2.1 | The Buyer shall provide at its own cost its delivered Aircraft, or any other aircraft it operates, for any base flight training, which shall consist of [***], performed in accordance with the related Airbus training course definition (the “Base Flight Training”). |
16.6.2.2 | Should it be necessary to ferry the Buyer’s delivered Aircraft to the location where the Base Flight Training shall take place, the additional flight time required for the ferry flight to and/or from the Base Flight Training field shall not be deducted from the Base Flight Training time. |
16.6.2.3 | If the Base Flight Training is performed outside of the zone where the Seller usually performs such training, the ferry flight to the location where the Base Flight Training shall take place shall be performed by a crew composed of the Seller’s and/or the Buyer’s qualified pilots, in accordance with the relevant Aviation Authority’s regulations related to the place of performance of the Base Flight Training. |
16.6.3 | Flight Crew Line Initial Operating Experience |
In order to assist the Buyer with initial operating experience after Delivery of the first Aircraft, the Seller shall provide to the Buyer pilot Instructor(s) as set forth in Appendix A to this Clause 16.
Should the Buyer request, subject to the Seller’s consent, such Seller pilot Instructors to perform any other flight support during the flight crew line initial operating period, such as but not limited to line assistance, demonstration flight(s), ferry flight(s) or any flight(s) required by the Buyer during the period of entry into service of the Aircraft, it is understood that such flight(s) shall be deducted from the flight crew line initial operating experience allowance set forth in Appendix A hereto.
It is hereby understood by the parties that the Seller’s pilot Instructors shall only perform the above flight support services to the extent they bear the relevant qualifications to do so.
16.6.4 | Type Specific Cabin Crew Training Course |
The Seller shall provide type specific training for cabin crews, at one of the locations defined in Clause 16.2.1.
If the Buyer’s Aircraft is to incorporate special features, the type specific cabin crew training course shall be performed [***] the scheduled Delivery Date of the Buyer’s first Aircraft.
16.6.5 | Training on Aircraft |
During any and all flights performed in accordance with this Clause 16.6, the Buyer shall bear full responsibility for the aircraft upon which the flight is performed, including but not limited to any required maintenance, all expenses such as fuel, oil or landing fees and the provision of insurance in line with Clause 16.13.
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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The Buyer shall assist the Seller, if necessary, in obtaining the validation of the licenses of the Seller’s pilots performing Base Flight Training or initial operating experience by the Aviation Authority of the place of registration of the Aircraft.
16.7 | Performance / Operations Courses |
The Seller shall provide performance/operations training for the Buyer’s personnel as defined in Appendix A to this Clause 16.
The available courses shall be listed in the Seller’s Customer Services Catalog current at the time of the course.
16.8 | Maintenance Training |
16.8.1 | The Seller shall provide maintenance training for the Buyer’s ground personnel as further set forth in Appendix A to this Clause 16. |
The available courses shall be as listed in the Seller’s Customer Services Catalog current at the time of the course.
The practical training provided in the frame of maintenance training shall be performed on the training devices in use in the Seller’s Training Centers.
16.8.2 | Practical Training on Aircraft |
Notwithstanding Clause 16.8.1 above, upon the Buyer’s request, the Seller may provide Instructors for the performance of practical training on aircraft (“Practical Training”).
Irrespective of the location at which the training takes place, the Buyer shall provide at its own cost an aircraft for the performance of the Practical Training.
Should the Buyer require the Seller’s Instructors to provide Practical Training at facilities selected by the Buyer, such training shall be subject to prior approval of the facilities by the Seller. All costs related to such Practical Training, including but not limited to the Seller’s approval of the facilities, shall be borne by the Buyer.
The provision of a Seller Instructor for the Practical Training shall be deducted from the trainee days allowance defined in Appendix A to this Clause 16, subject to the conditions detailed in Paragraph 4.4 thereof.
16.9 | Supplier and Propulsion Systems Manufacturer Training |
Upon the Buyer’s request, the Seller shall provide to the Buyer the list of the maintenance and overhaul training courses provided by major Suppliers and ACS Suppliers and the applicable Propulsion Systems Manufacturer on their respective products.
16.10 | Proprietary Rights |
All proprietary rights, including but not limited to patent, design and copyrights, relating to the Seller’s training data and documentation shall remain with the Seller and/or its Affiliates and/or its Suppliers and/or ACS Suppliers, as the case may be.
These proprietary rights shall also apply to any translation into a language or languages or media that may have been performed or caused to be performed by the Buyer.
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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16.11 | Confidentiality |
The Seller’s training data and documentation are designated as confidential and as such are provided to the Buyer for the sole use of the Buyer, for training of its own personnel, who undertakes not to disclose the content thereof in whole or in part, to any third party without the prior written consent of the Seller, save as permitted herein or otherwise pursuant to any government or legal requirement imposed upon the Buyer.
In the event of the Seller having authorized the disclosure of any training data and documentation to third parties either under this Agreement or by an express prior written authorization, the Buyer shall cause such third party to agree to be bound by the same conditions and restrictions as the Buyer with respect to the disclosed training data and documentation and to use such training data and documentation solely for the purpose for which they are provided.
16.12 | Transferability |
Without prejudice to Clause 21.1, the Buyer’s rights under this Clause 16 may not be assigned, sold, transferred, novated or otherwise alienated by operation of law or otherwise, without the Seller’s prior written consent.
16.13 | Indemnities and Insurance |
[***]
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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APPENDIX “A” TO CLAUSE 16
TRAINING ALLOWANCE
[***]
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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17 | SUPPLIER AND ACS SUPPLIER PRODUCT SUPPORT |
17.1 | Supplier Product Support Agreements |
17.1.1 | The Seller has obtained enforceable and transferable product support agreements from Suppliers of Supplier Parts, the benefit of which is hereby accepted by the Buyer. Said agreements become enforceable as soon as and for as long as an operator is identified as an Airbus aircraft operator. |
17.1.2 | These agreements are based on the “World Airlines Suppliers Guide”, are made available to the Buyer through the SPSA Application, and include Supplier commitments contained in the “Supplier Product Support Agreements”, as defined in Clause 12.3.1.1.3, which include the following provisions: |
17.1.2.1 | Technical data and manuals required to operate, maintain, service and overhaul the Supplier Parts. Such technical data and manuals shall be prepared in accordance with the applicable provisions of ATA Specification including revision service and be published in the English language. The Seller shall recommend that a software user guide, where applicable, be supplied in the form of an appendix to the Component Maintenance Manual, such data shall be provided in compliance with the applicable ATA Specification; |
17.1.2.2 | Warranties and guarantees, including standard warranties. In addition, landing gear Suppliers shall provide service life policies for selected structural landing gear elements; |
17.1.2.3 | Training to ensure efficient operation, maintenance and overhaul of the Supplier Parts for the Buyer’s instructors, shop and line service personnel; |
17.1.2.4 | Spares data in compliance with ATA iSpecification 2200, initial provisioning recommendations, spare parts and logistics service including routine and expedite deliveries; |
17.1.2.5 | Technical service to assist the Buyer with maintenance, overhaul, repair, operation and inspection of Supplier Parts as well as required tooling and spares provisioning. |
17.1.3 | Supplier Compliance |
The Seller shall monitor Suppliers’ compliance with the support commitments defined in the Supplier Product Support Agreements and shall, if necessary, jointly take remedial action with the Buyer.
17.2 | ACS Suppliers Support Agreements |
17.2.1 | The Seller has obtained enforceable and transferable product support agreements from ACS Suppliers of ACS Equipment, the benefit of which is hereby accepted by the Buyer. Said agreements become enforceable as soon as and for as long as an operator is identified as an Airbus aircraft operator. |
17.2.2 | These agreements are based on the “World Airlines Suppliers Guide”, are made available to the Buyer through the SPSA Application, and include ACS Supplier commitments contained in the “Airbus Contracted Suppliers Support Agreements”, as defined in Clause 12.3.2.1.3. Such commitments shall be substantially the same as those included in the Supplier Product Support Agreements, and detailed in Clause 17.1.2, except that guarantees, if any, shall be negotiated and agreed directly between the Buyer and the corresponding ACS Supplier. |
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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17.2.3 | ACS Supplier Compliance |
The Seller shall monitor ACS Suppliers’ compliance with support commitments defined in the Airbus Contracted Suppliers Support Agreements and shall provide assistance to the Buyer as may reasonably be required.
17.3 | Nothing in this Clause 17 shall be construed to prevent or limit the Buyer from entering into direct negotiations with a Supplier or an ACS Supplier with respect to different or additional terms and conditions applicable to Suppliers Parts or ACS Equipment selected by the Buyer to be installed on the Aircraft. |
17.4 | Familiarization Training |
Upon the Buyer’s request, the Seller shall provide the Buyer with Supplier Product Support Agreements and Airbus Contracted Suppliers Support Agreements familiarization training at the Seller’s facilities in Blagnac, France.
An on-line training module shall be further available through AirbusWorld, access to which shall be subject to the “General Terms and Conditions of Access to and Use of AirbusWorld” (hereinafter the “GTC”), as set forth in Part 2 of Exhibit I to this Agreement.
Both the Supplier Product Support Agreements and the Airbus Contracted Suppliers Support Agreements may be accessed through the SPSA Application.
For the avoidance of doubt, the use of the term “SPSA” with respect to ACS Suppliers or ACS Equipment shall solely be a reference to such SPSA Application and shall not be construed to imply that such ACS Suppliers or ACS Equipment are the subject of the Supplier Product Support Agreements for the purposes of Clause 17.1 above.
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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18 | BUYER FURNISHED EQUIPMENT AND AIRBUS CONTRACTED SUPPLIER EQUIPMENT |
18.1 | Buyer Furnished Equipment |
18.1.1 | In accordance with the Specification, the Seller shall install those items of equipment that are identified in the Specification as being furnished by the Buyer (“Buyer Furnished Equipment” or “BFE”), provided that the BFE and the supplier of such BFE (the “BFE Supplier”) [***]. |
Without prejudice to the foregoing, it is hereby expressly agreed between the parties that, in the exceptional case of the Buyer wishing to select and install a BFE item that is still under the approval process of the Seller, such selection shall be subject to an executed SCN between the parties, its installation shall be subject to the approval being obtained, and the conditions of this Clause 18, including specifically Clauses 18.1.6 and 18.1.7, shall apply to such BFE.
18.1.2.1 | The Seller shall advise the Buyer, when relevant, of the dates by which, in the planned release of engineering for the Aircraft, the Seller requires the written detailed engineering definition, encompassing a Declaration of Design and Performance (the “BFE Engineering Definition”). The BFE Engineering Definition shall include the description of the dimensions and weight of BFE, the information related to its certification and the information necessary for the installation and operation thereof, including 3D models compatible with the Seller’s systems. |
The Buyer shall furnish, or cause the BFE Suppliers to furnish the BFE Engineering Definition by the dates specified through the Customisation Milestone Chart as set forth in Clause 2.4.2.
The BFE Engineering Definition shall not be revised, except through an SCN executed in accordance with Clause 2.
18.1.2.2 | The Seller shall provide in due time to the Buyer a schedule of dates and the shipping addresses for delivery of the BFE and, where requested by the Seller, additional spare BFE to permit installation in the Aircraft and Delivery of the Aircraft in accordance with the Aircraft delivery schedule. The Buyer shall provide, or cause the BFE Suppliers to provide, the BFE by such dates in a serviceable condition, in order to allow performance of any assembly, installation, test, or acceptance process in accordance with the Seller’s industrial schedule. |
[***]. |
The Buyer shall also provide, when requested by the Seller, at Airbus Operations S.A.S. works in Toulouse (France) and/or at Airbus Operations GmbH works in Hamburg (Germany) adequate field service including support from BFE Suppliers to act in a technical advisory capacity to the Seller in the installation, calibration and possible repair of any BFE.
18.1.3 | At a suitable time prior to CDF, and without prejudice to the Buyer’s obligations hereabove, the Seller shall organise, when relevant, an Initial Technical Coordination Meeting (ITCM) between the Seller, the Buyer and BFE Suppliers. During such ITCM, the Seller’s employees shall be acting in an advisory capacity only and at no time shall they be deemed to be acting as Buyer’s employees or agents, either directly or indirectly |
18.1.3.1 | Thereafter, the Buyer shall ensure that the necessary development review meetings are organised between the Buyer and the BFE Suppliers and shall provide adequate technical and engineering expertise to reach decisions within the defined timeframe. |
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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In addition to the foregoing meetings, throughout the development phase and up to Delivery of the Aircraft to the Buyer, the Buyer agrees:
• | to monitor the BFE Suppliers and ensure that they shall enable the Buyer to fulfil its obligations, including but not limited to those set forth in the Customisation Milestone Chart; |
• | to place BFE purchase orders in a timely manner in order to ensure delivery of the corresponding BFE in accordance with the dates provided as per Clause 18.1.2.2. |
• | that, should a timeframe, quality or other type of risk be identified at a given BFE Supplier, the Buyer shall allocate resources to such BFE Supplier so as not to jeopardise the industrial schedule of the Aircraft. |
18.1.3.2 | Without prejudice to the Buyer’s obligations hereunder, in order to facilitate the follow-up of the timely receipt of BFE, the Seller reserves the right to request from the Buyer the dates and references of any relevant BFE purchase order placed by the Buyer and/or a copy of such purchase orders (excluding any commercial or confidential data). |
18.1.4 | The Buyer hereby agrees: |
• | to attend the First Article Inspection (“FAI”) for the first shipset of all BFE Seats and BFE IFE. Should the Buyer not attend such FAI, the Buyer shall delegate the FAI to the BFE Supplier and confirmation thereof shall be supplied to the Seller in writing. Should the Buyer not attend the FAI, the Buyer shall be deemed to have accepted the conclusions of the BFE Supplier with respect to such FAI. |
• | to attend the Source Inspection (“SI”) that takes place at the BFE Supplier’s premises prior to shipping, for each shipset of all BFE Seats and, when applicable, BFE IFE. Should the Buyer not attend such SI, the Buyer shall delegate the SI to the BFE Supplier and confirmation thereof shall be brought to the Seller in writing. Should the Buyer not attend the SI, the Buyer shall be deemed to have accepted the conclusions of the BFE Supplier with respect to such SI. |
18.1.5 | The BFE shall be imported into France or into Germany by the Buyer under a suspensive customs system (“Régime de l’entrepôt douanier ou régime de perfectionnement actif “ or “Zollverschluss”) without application of any French or German tax or customs duty, and shall be Delivered At Place (DAP)) according to the Incoterms, to the following shipping addresses: |
AIRBUS OPERATIONS S.A.S.
000 Xxxxx xx Xxxxxxx
00000 XXXXXXXX
XXXXXX
or
AIRBUS OPERATIONS GmbH
Xxxxxxxxx 00
00000 XXXXXXX
XXXXXXX
or such other location as may be specified by the Seller.
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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18.1.6 | Applicable Requirements |
The Buyer is responsible for ensuring, at its expense, and warrants that the BFE shall:
• | be supplied by a Seller approved BFE Supplier, as per Clause 18.1.1, and |
• | meet the requirements of the applicable Specification of the Aircraft, and |
• | be delivered with the relevant certification documentation, including but not limited to the DDP, and |
• | comply with the BFE Engineering Definition, and |
• | comply with applicable requirements incorporated by reference to the Type Certificate and listed in the Type Certificate Data Sheet, and |
• | be approved by the Aviation Authority issuing the Export Airworthiness Certificate and by the Buyer’s Aviation Authority for installation and use on the Aircraft at the time of Delivery of the Aircraft, and |
• | not infringe any patent, copyright or other intellectual property right of the Seller or any third party, and |
• | not be subject to any legal obligation or other encumbrance that may prevent, hinder or delay the installation of the BFE in the Aircraft and/or the Delivery of the Aircraft. |
The Seller shall be entitled to refuse any item of BFE that it considers incompatible with the Specification, the BFE Engineering Definition or the certification requirements.
18.1.7 | Buyer’s Obligation and Seller’s Remedies |
18.1.7.1 | Any delay or failure by the Buyer or the BFE Suppliers in: |
• | complying with the foregoing warranty or in providing the BFE Engineering Definition or field service mentioned in Clause 18.1.2.2, or |
• | furnishing the BFE in a serviceable condition at the requested delivery date, or |
• | obtaining any required approval for such BFE equipment under the above mentioned Aviation Authorities’ regulations, |
may delay the performance of any act to be performed by the Seller, including Delivery of the Aircraft. The Seller shall not be responsible for such delay which shall cause the Final Price of the Aircraft to be adjusted in accordance with the updated delivery schedule and to include in particular the amount of the Seller’s additional costs attributable to such delay or failure by the Buyer or the BFE Suppliers, such as storage, taxes, insurance and costs of out-of-sequence installation.
18.1.7.2 | In addition, in the event of any delay or failure mentioned in 18.1.7.1 above, the Seller may: |
(i) | select, purchase and install equipment similar to the BFE at issue, in which event the Final Price of the affected Aircraft shall also be increased by the purchase price of such equipment plus reasonable costs and expenses incurred by the Seller for handling charges, transportation, insurance, packaging and, if so required and not already provided for in the Final Price of the Aircraft, for adjustment and calibration; or |
(ii) | [***]. |
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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18.1.8 | Title and Risk of Loss |
Title to and risk of loss of any BFE shall at all times remain with the Buyer except that risk of loss (limited to cost of replacement of said BFE) shall be with the Seller for as long as such BFE is under the care, custody and control of the Seller.
18.1.9 | Disposition of BFE Following Termination |
18.1.9.1 | If a termination of this Agreement pursuant to the provisions of Clause 20 occurs with respect to an Aircraft in which all or any part of the BFE has been installed prior to the date of such termination, the Seller shall be entitled, but not required, to remove all items of BFE that can be removed without damage to the Aircraft and to undertake commercially reasonable efforts to facilitate the sale of such items of BFE to other customers, retaining and applying the proceeds of such sales to reduce the Seller’s damages resulting from the termination. |
18.1.9.2 | The Buyer shall cooperate with the Seller in facilitating the sale of BFE pursuant to Clause 18.1.9.1 and shall be responsible for all costs incurred by the Seller in removing and facilitating the sale of such BFE. [***]. |
18.1.9.3 | The Seller shall notify the Buyer as to those items of BFE not sold by the Seller pursuant to Clause 18.1.9.1 above and, at the Seller’s request, the Buyer shall undertake to remove such items from the Seller’s facility within thirty (30) days of the date of such notice. The Buyer shall have no claim against the Seller for damage, loss or destruction of any item of BFE removed from the Aircraft and not removed from Seller’s facility within such period. |
18.1.9.4 | The Buyer shall have no claim against the Seller for damage to or destruction of any item of BFE damaged or destroyed in the process of being removed from the Aircraft, provided that the Seller shall use reasonable care in such removal. |
18.1.9.5 | The Buyer shall grant the Seller title to any BFE items that cannot be removed from the Aircraft without causing damage to the Aircraft or rendering any system in the Aircraft unusable. |
18.2 | Airbus Contracted Supplier Equipment |
18.2.1 | Administration |
In accordance with the Specification, the Seller shall install those items of equipment that are identified in the Specification as being ACS Equipment, provided that the ACS Equipment and the corresponding ACS Supplier of such ACS are referred to in the then applicable A350XWB Family Aircraft Description Document.
18.2.2 | ACS Selection |
18.2.2.1 | The Buyer shall select ACS Equipment and all associated features out of the options proposed by the Seller [***]. |
18.2.2.2 | [***] |
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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18.2.3 | Meetings with ACS Suppliers |
The Seller shall be entitled to request the participation of the Buyer in meetings with ACS Suppliers, subject to reasonable prior notice.
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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19 | INDEMNIFICATION AND INSURANCE |
19.1 | Indemnities Relating to Inspection, Technical Acceptance Process and Ground Training |
19.1.1 | The Seller shall, except in case of Gross Negligence of the Buyer, its directors, officers, agents or employees, be solely liable for and shall indemnify and hold harmless the Buyer, its Affiliates and each of their respective directors, officers, agents, employees and insurers from and against all liabilities, claims, damages, costs and expenses (including legal expenses and attorney fees) in respect of: |
(i) | loss of, or damage to, the Seller’s property; |
(ii) | injury to, or death of, the directors, officers, agents or employees of the Seller; |
(iii) | any damage caused by the Seller to third parties arising out of, or in any way connected with, any ground check, check or controls under Clause 6 or Clause 8 of this Agreement and/or Ground Training Services ; and |
(iv) | any damage caused by the Buyer and/or the Seller to third parties arising out of, or in any way connected with, technical acceptance flights under Clause 8 of this Agreement. |
19.1.2 | The Buyer shall, except in case of Gross Negligence of the Seller, its directors, officers, agents or employees, be solely liable for and shall indemnify and hold harmless the Seller, its Affiliates and each of their respective directors, officers, agents, employees, sub-contractors and insurers from and against all liabilities, claims, damages, costs and expenses (including legal expenses and attorney fees) in respect of: |
(i) | loss of, or damage to, the Buyer’s property; |
(ii) | injury to, or death of, the directors, officers, agents or employees of the Buyer; and |
(iii) | any damage caused by the Buyer to third parties arising out of, or in any way connected with, any ground check, check or controls under Clause 6 or Clause 8 of this Agreement and/or Ground Training Services. |
19.2 | Indemnities Relating to Training on Aircraft after Delivery |
19.2.1 | The Buyer shall, except in the case of Gross Negligence of the Seller, its directors, officers, agents and employees, be solely liable for and shall indemnify and hold harmless the Seller, its Affiliates and each of their respective directors, officers, agents, employees, sub-contractors and insurers from and against all liabilities, claims, damages, costs and expenses (including legal expenses and attorney fees) incident thereto or incident to successfully establishing the right to indemnification in respect of: |
(i) | injury to, or death of, any person (including any of the Buyer’s directors, officers, agents and employees, but not directors, officers, agents and employees of the Seller); and |
(ii) | loss of, or damage to, any property and for loss of use thereof (including the aircraft on which the Aircraft Training Services are performed), |
arising out of, or in any way connected with, the performance of any Aircraft Training Services.
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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19.2.2 | The foregoing indemnity shall not apply with respect to the Seller’s legal liability towards any person other than the Buyer, its directors, officers, agents or employees arising out of an accident caused solely by a product defect in the Aircraft delivered to and accepted by the Buyer hereunder. |
19.3 | Indemnities relating to Seller Representatives Services |
19.3.1 | The Buyer shall, except in case of Gross Negligence of the Seller, its directors, officers, agents or employees, be solely liable for and shall indemnify and hold harmless the Seller, its Affiliates and each of their respective directors, officers, agents, employees, sub-contractors and insurers from and against all liabilities, claims, damages, costs and expenses (including legal expenses and attorney fees) in respect of: |
(i) | injury to, or death of, any person (except Seller’s Representatives); and |
(ii) | loss of, or damage to, any property and for loss of use thereof; arising out of, or in any way connected with the Seller’s Representatives Services. |
19.3.2 | The Seller shall, except in case of Gross Negligence of the Buyer, its directors, officers, agents or employees, be solely liable for and shall indemnify and hold harmless the Buyer, its Affiliates and each of their respective directors, officers, agents, employees and insurers from and against all liabilities, claims, damages, costs and expenses (including legal expenses and attorney fees) in respect of all injuries to, or death of, the Seller’s Representatives arising out of, or in any way connected with the Seller’s Representatives Services. |
19.4 | Insurances |
To the extent of the Buyer’s undertaking set forth in Clause 19.2.1, for all training periods on aircraft, the Buyer shall:
(i) | cause the Seller, its directors, officers, agents, employees, Affiliates and sub-contractors, and their respective insurers, to be named as additional insureds under the Buyer’s Comprehensive Aviation Legal Liability insurance policies, including War Risks and Allied Perils such insurance shall include the AVN 52E Extended Coverage Endorsement Aviation Liabilities as well as additional coverage in respect of War and Allied Perils Third parties Legal Liabilities Insurance; and |
(ii) | with respect to the Buyer’s Hull All Risks and Hull War Risks insurances and Allied Perils, cause the insurers of the Buyer’s hull insurance policies to waive all rights of subrogation against the Seller, its directors, officers, agents, employees, Affiliates and sub-contractors, and their respective insurers. |
Any applicable deductible shall be borne by the Buyer.
With respect to the above policies, the Buyer shall furnish to the Seller, [***] to the start of any such training period, certificates of insurance from the Buyer’s insurance broker(s), in English, evidencing the limit of liability cover and period of insurance in a form acceptable to the Seller certifying that such policies have been endorsed as follows:
(i) | under the Comprehensive Aviation Legal Liability Insurances, the Buyer’s policies are primary and non-contributory to any insurance maintained by the Seller; |
(ii) | such insurance can only be cancelled or materially altered by the giving of [***] prior written notice thereof to the Seller; and |
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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(iii) | under any such cover, all rights of subrogation against the Seller, its directors, officers, agents, employees, Affiliates and sub-contractors, and their respective insurers, have been waived to the extent of the Buyer’s undertaking and specifically referring to Clause 19.2.1 and to this Clause 19.4. |
19.5 | Notice of Claims |
If any claim is made or suit is brought against either party (or its respective directors, officers, agents, employees, Affiliates and sub-contractors) for damages for which liability has been assumed by the other party in accordance with the provisions of this Agreement, the party against which a claim is so made or suit is so brought shall promptly give notice to the other party, and the latter shall (unless otherwise requested by the party against which a claim is so made or suit is so brought, in which case the other party nevertheless shall have the right to) assume and conduct the defence thereof, or effect any settlement which it, in its opinion, deems proper.
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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20 | TERMINATION |
20.1 | Termination for Insolvency |
In the event that either the Seller or the Buyer:
(a) | makes a general assignment for the benefit of creditors or becomes insolvent; |
(b) | files a voluntary petition in bankruptcy; |
(c) | petitions for or acquiesces in the appointment of any receiver, trustee or similar officer to liquidate or conserve its business or any substantial part of its assets; |
(d) | commences under the laws of any competent jurisdiction any proceeding involving its insolvency, bankruptcy, readjustment of debt, liquidation or any other similar proceeding for the relief of financially distressed debtors; |
(e) | becomes the object of any proceeding or action of the type described in (c) or (d) above and such proceeding or action remains undismissed or unstayed for a period of [***]; or |
(f) | [***], |
then the other party may, to the full extent permitted by law, by written notice, terminate all or part of this Agreement.
20.2 | Termination for Non-Payment of Predelivery Payments |
[***] |
20.3 | Termination for Failure to Take Delivery |
If the Buyer fails to comply with its obligations as set forth under Clause 8 and/or Clause 9, or fails to pay the Final Price of the Aircraft, the Seller shall have the right to put the Buyer on notice to do so within a period of [***] after the date of such notification.
If the Buyer has not cured such default within such period, the Seller may, by written notice, terminate all or part of this Agreement with respect to undelivered Aircraft.
[***]
20.4 | Termination for Default under other Agreements |
If the Buyer or any of its Affiliates fails to perform or comply with any material obligation expressed to be assumed by it in any other agreement between the Buyer or any of its Affiliates and the Seller or any of its Affiliates and such failure is not remedied [***] after the Seller has given notice thereof to the Buyer, then the Seller may, by written notice, terminate all or part of this Agreement.
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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20.5 | General |
20.5.1 | To the full extent permitted by law, the termination of all or part of this Agreement pursuant to Clauses 20.1, 20.2, 20.3 and 20.4 shall become effective immediately upon receipt by the relevant party of the notice of termination sent by the other party without it being necessary for either party to take any further action or to seek any consent from the other party or any court or arbitral panel having jurisdiction. |
20.5.2 | The right for either party under Clause 20.1 and for the Seller under Clauses 20.2, 20.3, and 20.4 to terminate all or part of this Agreement shall be without prejudice to any other rights and remedies available to such party to seek termination of all or part of this Agreement before any court or arbitral panel having jurisdiction pursuant to any failure by the other party to perform its obligations under this Agreement. |
20.5.3 | If the party taking the initiative of terminating this Agreement decides to terminate part of it only, the notice sent to the other party shall specify those provisions of this Agreement which shall be terminated. |
20.5.4 | [***] |
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
CSN - A350XWB - Clause 20 | Privileged and Confidential | |||
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21 | ASSIGNMENTS AND TRANSFERS |
21.1 | Assignments by Buyer |
Except as hereinafter provided, the Buyer may not sell, assign, novate or transfer its rights and obligations under this Agreement to any person without the prior written consent of the Seller.
21.1.1 | Assignments for Predelivery Financing |
The Buyer shall be entitled to assign its rights under this Agreement at any time in order to provide security for the financing of any Predelivery Payments subject to such assignment being in form and substance acceptable to the Seller.
21.1.2 | Assignments for Delivery Financing |
The Buyer shall be entitled to assign its rights under this Agreement at any time in connection with the financing of its obligation to pay the Final Price subject to such assignment being in form and substance acceptable to the Seller.
21.2 | Assignments by Seller |
The Seller may at any time sell, assign, novate or transfer its rights and obligations under this Agreement to any person, provided such sale, assignment or transfer be notified to Buyer and shall not have a material adverse effect on any of Buyer’s rights and obligations under this Agreement.
21.2.1 | Transfer of Rights and Obligations upon Restructuring |
In the event that the Seller is subject to a corporate restructuring having as its object the transfer of, or succession by operation of law in, all or a substantial part of its assets and liabilities, rights and obligations, including those existing under this Agreement, to a person (“the Successor”) under the control of the ultimate controlling shareholders of the Seller at the time of that restructuring, for the purpose of the Successor carrying on the business carried on by the Seller at the time of the restructuring, such restructuring shall be completed without consent of the Buyer following notification by the Seller to the Buyer in writing. The Buyer recognises that succession of the Successor to the Agreement by operation of law, which is valid under the law pursuant to which that succession occurs, shall be binding upon the Buyer.
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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22 | MISCELLANEOUS PROVISIONS |
22.1 | Data Retrieval |
On the Seller’s reasonable request, the Buyer shall provide the Seller with all the necessary data, as customarily compiled by the Buyer and pertaining to the operation of the Aircraft, to assist the Seller in making an efficient and coordinated survey of all reliability, maintenance, operational and cost data with a view to monitoring the efficient and cost effective operations of the Airbus fleet worldwide.
22.2 | Notices |
All notices and requests required or authorized hereunder shall be given in writing either by personal delivery to an authorized representative of the party to whom the same is given or by registered mail (return receipt requested), express mail (tracking receipt requested) or by facsimile, to be confirmed by subsequent registered mail, and the date upon which any such notice or request is so personally delivered or if such notice or request is given by registered mail, the date upon which it is received by the addressee or, if given by facsimile, the date upon which it is sent with a correct confirmation printout, provided that if such date of receipt is not a Business Day notice shall be deemed to have been received on the first following Business Day, shall be deemed to be the effective date of such notice or request.
Seller’s address for notices is:
[***]
Buyer’s address for notices is:
[***]
or such other address or such other person as the party receiving the notice or request may reasonably designate from time to time.
22.3 | Waiver |
The failure of either party to enforce at any time any of the provisions of this Agreement, or to exercise any right herein provided, or to require at any time performance by the other party of any of the provisions hereof, shall in no way be construed to be a present or future waiver of such provisions nor in any way to affect the validity of this Agreement or any part thereof or the right of the other party thereafter to enforce each and every such provision. The express waiver (whether made one (1) or several times) by either party of any provision, condition or requirement of this Agreement shall not constitute a waiver of any future obligation to comply with such provision, condition or requirement.
22.4 | Law and Jurisdiction |
22.4.1 | This Agreement shall be governed by and construed in accordance with the laws of England. |
22.4.2 | Any dispute arising out of or in connection with this Agreement shall be finally settled under the Rules of Arbitration of the International Chamber of Commerce by three (3) arbitrators appointed in accordance with such rules. |
[***].
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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22.5 | Contracts (Rights of Third Parties) Xxx 0000 |
The parties do not intend that any term of this Agreement shall be enforceable solely by virtue of the Contracts (Rights of Third Parties) Xxx 0000 by any person who is not a party to this Agreement.
22.6 | International Supply Contract |
The Buyer and the Seller recognise that this Agreement is an international supply contract which has been the subject of discussion and negotiation, that all its terms and conditions are fully understood by the parties, and that the Specification and price of the Aircraft and the other mutual agreements of the parties set forth herein were arrived at in consideration of, inter alia, all the provisions hereof specifically including all waivers, releases and renunciations by the Buyer set out herein.
The Buyer and the Seller hereby also agree that the United Nations Convention on Contracts for the International Sale of Goods shall not apply to this transaction.
22.7 | Severability |
In the event that any provision of this Agreement should for any reason be held ineffective, the remainder of this Agreement shall remain in full force and effect. To the extent permitted by applicable law, each party hereto hereby waives any provision of law, which renders any provision of this Agreement prohibited or unenforceable in any respect.
22.8 | Alterations to Contract |
This Agreement contains the entire agreement between the parties with respect to the subject matter hereof and supersedes any previous understandings, commitments or representations whatsoever oral or written in respect thereto. This Agreement shall not be varied except by an instrument in writing of date even herewith or subsequent hereto executed by the parties or by their duly authorised representatives.
22.9 | Language |
All correspondence, documents and any other written matters in connection with this Agreement shall be in English.
22.10 | Counterparts |
This Agreement has been executed in three (3) original copies.
Notwithstanding the above, this Agreement may be executed by the parties in separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute one and the same Agreement.
22.11 | Inconsistencies |
In the event of any inconsistency between the terms of this Agreement and the terms contained in either (i) the Specification, or (ii) any other Exhibit, in each such case the terms of this Agreement shall prevail over the terms of the Specification or any other Exhibit. For the purpose of this Clause 22.11, the term Agreement shall not include the Specification or any other Exhibit hereto.
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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22.12 | Confidentiality |
For the purpose of this Clause 22.12, the term “Buyer” shall, throughout this clause 22.12, be deemed to include the Consenting Party.
This Agreement including any Exhibits, other documents or data exchanged between the Seller and the Buyer for the fulfilment of their respective obligations under the Agreement shall be treated by both parties as confidential and shall not be released in whole or in part to any third party except as may be required by law, or to professional advisors for the purpose of implementation hereof or, in the case of the Seller, to the Propulsion Systems Manufacturer.
In particular, both parties agree:
• | not to make any press release concerning the whole or any part of the contents and/or subject matter hereof or of any future addendum hereto without the prior written consent of the other party hereto. |
• | that any and all terms and conditions of the transaction contemplated in this Agreement are strictly personal and exclusive to the Buyer, including in particular, but not limited to, the Aircraft pricing (the “Personal Information”). The Buyer therefore agrees to enter into consultations with the Seller reasonably in advance of any required disclosure of Personal Information to financial institutions, including operating lessors, investment banks and their agents or other relevant institutions for aircraft sale and leaseback or any other Aircraft or Predelivery Payment financing purposes (the “Receiving party”). |
Without limiting the generality of the foregoing, the Buyer will use its best efforts to limit the disclosure of the contents of this Agreement to the extent legally permissible in (i) any filing required to be made by the Buyer with any governmental agency and will make such applications as will be necessary to implement the foregoing, and (ii) any press release concerning the whole or any part of the contents and/or subject matter hereof or of any future addendum hereto. With respect to any public disclosure or filing (notably to the New York, Shanghai and Hong-Kong Stock Exchange), the Buyer agrees to request the Seller to provide a redacted version of this Agreement to be filed or disclosed and give the Seller a period of not less than 30 days to prepare such document. The Buyer and the Seller will consult with each other prior to the making of any public disclosure or filing, permitted hereunder, of this Agreement or the terms and conditions thereof.
The provisions of this Clause 22.12 shall survive any termination of this Agreement for a period of five (5) years.
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
CSN - A350XWB - Clause 22 | Privileged and Confidential | |||
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IN WITNESS WHEREOF this Agreement was entered into the day and year first above written.
For and on behalf of | For and on behalf of | |||||||||
CHINA SOUTHERN AIRLINES | AIRBUS S.A.S. | |||||||||
COMPANY LIMITED | ||||||||||
Name: |
|
Name: |
| |||||||
Title: |
|
Title: |
| |||||||
Witnessed and acknowledged by: | ||||||||||
CHINA SOUTHERN AIRLINES GROUP | ||||||||||
IMPORT AND EXPORT TRADING CORP., LTD. | ||||||||||
Name: |
|
|||||||||
Title: |
|
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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EXHIBIT A
E X H I B I T A
S P E C I F I C A T I O N
[***].
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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EXHIBIT A
Appendix 1
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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EXHIBIT B
E X H I B I T B
Exhibit B-1: Form of a Specification Change Notice
Exhibit B-2: Form of a Manufacturer’s Specification Change Notice
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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DRAFT WITHOUT PREJUDICE | EXHIBIT B-1 |
SPECIFICATION CHANGE NOTICE
(SCN) |
For
SCN Number Issue Dated Page |
Title :
Description :
Effect on weight :
• | Manufacturer’s Weight Empty change : |
• | Operational Weight Empty change : |
• | Allowable Payload change : |
Remarks / References
Specification changed by this SCN
This SCN requires prior or concurrent acceptance of the following SCN (s):
Price per aircraft
US DOLLARS:
AT DELIVERY CONDITIONS:
This change will be effective on AIRCRAFT N° and subsequent.
Provided approval is received by
Buyer approval | Seller approval | |||
By : | By : | |||
Date : | Date : |
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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DRAFT WITHOUT PREJUDICE | EXHIBIT B-1 |
SPECIFICATION CHANGE NOTICE
(SCN) |
For
SCN Number Issue Dated Page |
Specification repercussion:
After contractual agreement with respect to weight, performance, delivery, etc, the indicated part of the specification wording will read as follows:
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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DRAFT WITHOUT PREJUDICE | EXHIBIT B-1 |
SPECIFICATION CHANGE NOTICE
(SCN) |
For
SCN Number Issue Dated Page |
Scope of change (FOR INFORMATION ONLY)
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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DRAFT WITHOUT PREJUDICE | EXHIBIT B-2 |
MANUFACTURER’S SPECIFICATION CHANGE NOTICE
(MSCN) |
For
MSCN Number Issue Dated Page |
Title :
Description :
Effect on weight :
• | Manufacturer’s Weight Empty change : |
• | Operational Weight Empty change : |
• | Allowable Payload change : |
Remarks / References
Specification changed by this MSCN
Price per aircraft
US DOLLARS:
AT DELIVERY CONDITIONS:
This change will be effective on AIRCRAFT N° and subsequent.
Provided MSCN is not rejected by
Buyer approval | Seller approval | |||
By : | By : | |||
Date : | Date : |
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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DRAFT WITHOUT PREJUDICE | EXHIBIT B-2 |
MANUFACTURER’S SPECIFICATION CHANGE NOTICE
(MSCN) |
For
MSCN Number Issue Dated Page |
Specification repercussion:
After contractual agreement with respect to weight, performance, delivery, etc, the indicated part of the specification wording will read as follows:
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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DRAFT WITHOUT PREJUDICE |
EXHIBIT B-2 |
MANUFACTURER’S SPECIFICATION CHANGE NOTICE
(MSCN) |
For
MSCN Number Issue Dated Page |
Scope of change (FOR INFORMATION ONLY)
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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EXHIBIT C
[***] PRICE REVISION FORMULA
[***]
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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EXHIBIT D
CERTIFICATE OF ACCEPTANCE
In accordance with the terms of clause of the purchase agreement dated and made between [name of the party to the Purchase Agreement] (the “Customer”) and Airbus S.A.S., as amended and supplemented from time to time (the “Purchase Agreement”), the technical acceptance tests relating to one Airbus [***] bearing manufacturer’s serial number and registration xxxx (the “Aircraft”) have taken place in Blagnac, France.
In view of said tests having been carried out with satisfactory results, the Customer, [as agent of [Name of party purchasing the Aircraft] (the “Owner”) pursuant to the purchase agreement assignment dated and made between the Customer and the Owner]1, hereby approves the Aircraft as being in conformity with the provisions of the Purchase Agreement and accepts the Aircraft for delivery in accordance with the provisions of the Purchase Agreement.
Such acceptance shall not impair the rights that may be derived from the warranties relating to the Aircraft set forth in the Purchase Agreement.
Any right at law or otherwise to revoke this acceptance of the Aircraft is hereby irrevocably waived.
IN WITNESS WHEREOF, the Customer, [as agent of the Owner], has caused this instrument to be executed by its duly authorised representative this day of in Blagnac, France.
[CUSTOMER] [as agent of the OWNER]
Name:
Title:
Signature:
1 | The wording underlined in yellow shall be added in case of assignment of the PA (e.g. Lessors, SPC) |
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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EXHIBIT E
AIRCRAFT XXXX OF SALE
(the “Xxxx of Sale”)
Know all men by these presents that Airbus S.A.S., a Société par Actions Simplifiée existing under French law and having its principal office at 0, xxxx-xxxxx Xxxxxxx Xxxxxxxx, 00000 Xxxxxxx Xxxxx, XXXXXX (the “Seller”), was, this day of , the owner of the title to the following airframe (the “Airframe”), the [engines/propulsion systems] as specified (the “[Engines/Propulsion Systems]”) and all appliances, components, parts, instruments, accessories, furnishings, modules and other equipment of any nature, excluding buyer furnished equipment (“BFE”), incorporated therein, installed thereon or attached thereto on the date hereof (the “Parts”):
AIRFRAME: | [ENGINES/PROPULSION SYSTEMS]: | |
AIRBUS Model A3 - | [engine or p/s manufacturer] Model | |
MANUFACTURER’S SERIAL NUMBER: | ENGINE SERIAL NUMBERS: | |
LH: | ||
RH: |
REGISTRATION XXXX:
and had such title to the BFE as was acquired by it from [insert name of vendor of the BFE] pursuant to a xxxx of sale dated (the “BFE Xxxx of Sale”).
The Airframe, [Engines/Propulsion Systems] and Parts are hereafter together referred to as the “Aircraft”.
The Seller did, this day of , sell, transfer and deliver all of its above described rights, title and interest in and to the Aircraft and the BFE to the following entity and to its successors and assigns forever, said Aircraft and the BFE to be the property thereof:
[Insert Name and Address of Buyer]
(the “Buyer”)
The Seller hereby warrants to the Buyer, its successors and assigns that it had (i) good and lawful right to sell, deliver and transfer title to the Aircraft to the Buyer and that there was conveyed to the Buyer good, legal and valid title to the Aircraft, free and clear of all liens, claims, charges, encumbrances and rights of others and that the Seller will warrant and defend such title forever against all claims and demands whatsoever and (ii) such title to the BFE as Seller has acquired from [insert name of vendor of the BFE] pursuant to the BFE Xxxx of Sale.
This Xxxx of Sale is governed by and shall be construed in accordance with the laws of [same governing law as in the Purchase Agreement].
IN WITNESS WHEREOF, the Seller has caused this instrument to be executed by its duly authorised representative this day of in Blagnac, France.
AIRBUS S.A.S.
Name:
Title:
Signature:
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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EXHIBIT F
EXHIBIT F
S E R V I C E L I F E P O L I C Y
L I S T O F I T E M S
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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EXHIBIT F
SELLER SERVICE LIFE POLICY
[***]
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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EXHIBIT G
TECHNICAL DATA & SOFTWARE
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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EXHIBIT G
TECHNICAL DATA & SOFTWARE
Where applicable, data shall be established in general compliance with the S1000D Specification jointly defined by the ASD (Aerospace and Defense Industries Association of Europe), AIA (Aerospace Industries Association) and ATA (Air Transport Association of America).
The Seller shall provide the Buyer with the following Technical Data (or such other equivalent Technical Data as may be applicable at the time of their provision to the Buyer).
1- | [***] |
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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EXHIBIT H
E X H I B I T H
M A T E R I A L
S U P P L Y AND S E R V I C E S
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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EXHIBIT H
[***]
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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EXHIBIT I
EXHIBIT I
LICENSES AND ON LINE SERVICES
[***]
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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EXHIBIT I
[***]
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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CONTENTS
LETTER AGREEMENT | TITLES | |||
Letter Agreement N°1 | [***] | |||
Letter Agreement N°2 | [***] | |||
Letter Agreement N°3 | [***] | |||
Letter Agreement N°4A | [***] | |||
Letter Agreement N°4B | [***] | |||
Letter Agreement N°5 | [***] | |||
Letter Agreement N°6 | [***] | |||
Letter Agreement N°7 | [***] | |||
Letter Agreement N°8 | [***] | |||
Letter Agreement N°9 | [***] |
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
CSN - A350XWB - INDEX | Privileged and Confidential | |||
CT 1600622 |
LETTER AGREEMENT N°1
CHINA SOUTHERN AIRLINES
COMPANY LIMITED
Bai Yun Airport,
Guangzhou 510405,
People’s Republic of China
Subject : [***]
CHINA SOUTHERN AIRLINES COMPANY LIMITED (the “Buyer”) and AIRBUS S.A.S. (the “Seller”) have entered into a purchase agreement (the “Agreement”) dated as of even date herewith, as witnessed by CHINA SOUTHERN AIRLINES GROUP IMPORT AND EXPORT TRADING CORP., LTD. (the “Consenting Party”) which covers the manufacture and the sale by the Seller and the purchase by the Buyer of the [***] Aircraft as described in the Agreement.
Capitalized terms used herein and not otherwise defined in this Letter Agreement shall have the meanings assigned thereto in the Agreement.
The parties agree that this Letter Agreement, upon execution thereof, shall constitute an integral, non-severable part of said Agreement and shall be governed by all its provisions, as such provisions have been specifically amended pursuant to this Letter Agreement.
If there is any inconsistency between the Agreement and this Letter Agreement, the latter shall prevail to the extent of such inconsistency.
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
CSN - A350XWB - Letter Agreement N°1 | Privileged and Confidential | |||
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LETTER AGREEMENT N°1
[***]
[***] | Assignment |
Notwithstanding any other provision of this Letter Agreement or of the Agreement, this Letter Agreement and the rights and obligations of the Buyer herein shall not be assigned or transferred in any manner, and any attempted assignment or transfer in contravention of the provisions of this Clause shall be void and of no force or effect.
[***] | Confidentiality |
For the purpose of this Clause 9, the term “Buyer” shall be deemed to include a reference to the Consenting Party.
This Letter Agreement (and its existence) shall be treated by the Seller and the Buyer as confidential and shall not be released (or revealed) in whole or in part to any third party without the prior consent of the other party. In particular, each party agrees not to make any press release concerning the whole or any part of the contents and/or subject matter hereof or of any future addendum hereto without the prior consent of the other party.
[***] | Law and Jurisdiction |
This Letter Agreement shall be governed by, and construed in accordance with the laws of England and the provisions of Clause 22.4 of the Agreement shall apply to this Letter Agreement.
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
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LETTER AGREEMENT N°1
If the foregoing correctly sets forth our understanding, please execute three (3) originals in the space provided below and return one (1) original of this Letter Agreement to the Seller.
Agreed and Accepted | Agreed and Accepted | |||||
For and on behalf of | For and on behalf of | |||||
CHINA SOUTHERN AIRLINES | AIRBUS S.A.S. | |||||
COMPANY LIMITED |
Signature: |
|
Signature: |
| |||
Name: |
|
Name: |
| |||
Title: |
|
Title: |
|
Witnessed and acknowledged by: | ||||||
CHINA SOUTHERN AIRLINES GROUP | ||||||
IMPORT AND EXPORT TRADING CORP., LTD. |
Signature: |
|
|||||
Name: |
|
|||||
Title: |
|
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
CSN - A350XWB - Letter Agreement N°1 | Privileged and Confidential | |||
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LETTER AGREEMENT N°2
CHINA SOUTHERN AIRLINES
COMPANY LIMITED
Bai Yun Airport,
Guangzhou 510405,
People’s Republic of China
Subject : [***]
CHINA SOUTHERN AIRLINES COMPANY LIMITED (the “Buyer”) and AIRBUS S.A.S. (the “Seller”) have entered into a purchase agreement (the “Agreement”) dated as of even date herewith, as witnessed by CHINA SOUTHERN AIRLINES GROUP IMPORT AND EXPORT TRADING CORP., LTD. (the “Consenting Party”) which covers the manufacture and the sale by the Seller and the purchase by the Buyer of the [***] Aircraft as described in the Agreement.
Capitalized terms used herein and not otherwise defined in this Letter Agreement shall have the meanings assigned thereto in the Agreement.
The parties agree that this Letter Agreement, upon execution thereof, shall constitute an integral, non-severable part of said Agreement and shall be governed by all its provisions; as such provisions have been specifically amended pursuant to this Letter Agreement.
If there is any inconsistency between the Agreement and this Letter Agreement, the latter shall prevail to the extent of such inconsistency.
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
CSN - A350XWB - Letter Agreement N°2 | Privileged and Confidential | |||
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LETTER AGREEMENT N°2
1 | [***] |
[***] | Assignment |
Notwithstanding any other provision of this Letter Agreement or of the Agreement, this Letter Agreement and the rights and obligations of the Buyer herein shall not be assigned or transferred in any manner, and any attempted assignment or transfer in contravention of the provisions of this Clause shall be void and of no force or effect.
[***] | Confidentiality |
For the purpose of this Clause 13 the term “Buyer” shall be deemed to include a reference to the Consenting Party.
This Letter Agreement (and its existence) shall be treated by the Seller and the Buyer as confidential and shall not be released (or revealed) in whole or in part to any third party without the prior consent of the other party. In particular, each party agrees not to make any press release concerning the whole or any part of the contents and/or subject matter hereof or of any future addendum hereto without the prior consent of the other party.
[***] | Law and Jurisdiction |
This Letter Agreement shall be governed by, and construed in accordance with, the laws of England and the provisions of Clause 22.4 of the Agreement shall apply to this Letter Agreement.
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
CSN - A350XWB - Letter Agreement N°2 | Privileged and Confidential | |||
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LETTER AGREEMENT N°2
If the foregoing correctly sets forth our understanding, please execute three (3) originals in the space provided below and return one (1) original of this Letter Agreement to the Seller.
Agreed and Accepted | Agreed and Accepted | |||||
For and on behalf of | For and on behalf of | |||||
CHINA SOUTHERN AIRLINES | AIRBUS S.A.S. | |||||
COMPANY LIMITED | ||||||
Signature: | Signature: | |||||
Name: | Name: | |||||
Title: | Title: | |||||
Witnessed and acknowledged by: | ||||||
CHINA SOUTHERN AIRLINES GROUP | ||||||
IMPORT AND EXPORT TRADING CORP., LTD. | ||||||
Signature: | ||||||
Name: | ||||||
Title: |
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
CSN - A350XWB - Letter Agreement N°2 | Privileged and Confidential | |||
CT 1600622 |
Page 3/3 |
LETTER AGREEMENT N°3
CHINA SOUTHERN AIRLINES
COMPANY LIMITED
Bai Yun Airport,
Guangzhou 510405,
People’s Republic of China
Subject : [***]
CHINA SOUTHERN AIRLINES COMPANY LIMITED (the “Buyer”) and AIRBUS S.A.S. (the “Seller”) have entered into a purchase agreement (the “Agreement”) dated as of even date herewith, as witnessed by CHINA SOUTHERN AIRLINES GROUP IMPORT AND EXPORT TRADING CORP., LTD. (the “Consenting Party”) which covers the manufacture and the sale by the Seller and the purchase by the Buyer of the [***] Aircraft as described in the Agreement.
Capitalized terms used herein and not otherwise defined in this Letter Agreement shall have the meanings assigned thereto in the Agreement.
The parties agree that this Letter Agreement, upon execution thereof, shall constitute an integral, non-severable part of said Agreement and shall be governed by all its provisions, as such provisions have been specifically amended pursuant to this Letter Agreement.
If there is any inconsistency between the Agreement and this Letter Agreement, the latter shall prevail to the extent of such inconsistency.
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
CSN - A350XWB - Letter Agreement N°3 | Privileged and Confidential | |||
CT 1600622 |
Page 1/3 |
LETTER AGREEMENT N°3
1 | [***] |
[***] | Assignment |
Notwithstanding any other provision of this Letter Agreement or of the Agreement, this Letter Agreement and the rights and obligations of the Buyer herein shall not be assigned or transferred in any manner, and any attempted assignment or transfer in contravention of the provisions of this Clause shall be void and of no force or effect.
[***] | Confidentiality |
For the purpose of this Clause 3, the term “Buyer” shall be deemed to include a reference to the Consenting Party.
This Letter Agreement (and its existence) shall be treated by the Seller and the Buyer as confidential and shall not be released (or revealed) in whole or in part to any third party without the prior consent of the other party. In particular, each party agrees not to make any press release concerning the whole or any part of the contents and/or subject matter hereof or of any future addendum hereto without the prior consent of the other party.
[***] | Law and Jurisdiction |
This Letter Agreement shall be governed by, and construed in accordance with, the laws of England and the provisions of Clause 22.4 of the Agreement shall apply to this Letter Agreement.
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
CSN - A350XWB - Letter Agreement N°3 | Privileged and Confidential | |||
CT 1600622 |
Page 2/3 |
LETTER AGREEMENT N°3
If the foregoing correctly sets forth our understanding, please execute three (3) originals in the space provided below and return one (1) original of this Letter Agreement to the Seller.
Agreed and Accepted | Agreed and Accepted | |||||
For and on behalf of | For and on behalf of | |||||
CHINA SOUTHERN AIRLINES | AIRBUS S.A.S. | |||||
COMPANY LIMITED | ||||||
Signature: | Signature: | |||||
Name: | Name: | |||||
Title: | Title: | |||||
Witnessed and acknowledged by: | ||||||
CHINA SOUTHERN AIRLINES GROUP | ||||||
IMPORT AND EXPORT TRADING CORP., LTD. | ||||||
Signature: | ||||||
Name: | ||||||
Title: |
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
CSN - A350XWB - Letter Agreement N°3 | Privileged and Confidential | |||
CT 1600622 |
Page 3/3 |
LETTER AGREEMENT N°4A
CHINA SOUTHERN AIRLINES
COMPANY LIMITED
Bai Yun Airport,
Guangzhou 510405,
People’s Republic of China
Subject : [***]
CHINA SOUTHERN AIRLINES COMPANY LIMITED (the “Buyer”) and AIRBUS S.A.S. (the “Seller”) have entered into a purchase agreement (the “Agreement”) dated as of even date herewith, as witnessed by CHINA SOUTHERN AIRLINES GROUP IMPORT AND EXPORT TRADING CORP., LTD. (the “Consenting party”) which covers the manufacture and the sale by the Seller and the purchase by the Buyer of [***] Aircraft as described in the Agreement.
Capitalized terms used herein and not otherwise defined in this Letter Agreement shall have the meanings assigned thereto in the Agreement.
The parties agree that this Letter Agreement, upon execution thereof, shall constitute an integral, non-severable part of said Agreement and shall be governed by all its provisions, as such provisions have been specifically amended pursuant to this Letter Agreement.
If there is any inconsistency between the Agreement and this Letter Agreement, the latter shall prevail to the extent of such inconsistency.
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
CSN - A350XWB - Letter Agreement N°4A | Privileged and Confidential | |||
CT 1600622 |
Page 1/4 |
LETTER AGREEMENT N°4A
1 | [***] |
[***] | ASSIGNMENT |
Notwithstanding any other provision of this Letter Agreement or of the Agreement, this Letter Agreement and the rights and obligations of the Buyer herein shall not be assigned or transferred in any manner, and any attempted assignment or transfer in contravention of the provisions of this Clause shall be void and of no force or effect.
[***] | CONFIDENTIALITY |
For the purpose of this Clause 13, the term “Buyer” shall be deemed to include a reference to the Consenting party.
This Letter Agreement (and its existence) shall be treated by the Seller and the Buyer as confidential and shall not be released (or revealed) in whole or in part to any third party without the prior consent of the other party. In particular, each party agrees not to make any press release concerning the whole or any part of the contents and/or subject matter hereof or of any future addendum hereto without the prior consent of the other party.
[***] | LAW AND JURISDICTION |
This Letter Agreement shall be governed by, and construed in accordance with, the laws of England and the provisions of Clause 22.4 of the Agreement shall apply to this Letter Agreement.
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
CSN - A350XWB - Letter Agreement N°4A | Privileged and Confidential | |||
CT 1600622 |
Page 2/4 |
LETTER AGREEMENT N°4A
If the foregoing correctly sets forth our understanding, please execute three (3) originals in the space provided below and return one (1) original of this Letter Agreement to the Seller.
Agreed and Accepted | Agreed and Accepted | |||||
For and on behalf of | For and on behalf of | |||||
CHINA SOUTHERN AIRLINES | AIRBUS S.A.S. | |||||
COMPANY LIMITED | ||||||
Signature: | Signature: | |||||
Name: | Name: | |||||
Title: | Title: | |||||
Witnessed and acknowledged by: | ||||||
CHINA SOUTHERN AIRLINES GROUP | ||||||
IMPORT AND EXPORT TRADING CORP., LTD. | ||||||
Signature: | ||||||
Name: | ||||||
Title: |
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
CSN - A350XWB - Letter Agreement N°4A | Privileged and Confidential | |||
CT 1600622 |
Page 3/4 |
LETTER AGREEMENT N°4A
[***]
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
CSN - A350XWB - Letter Agreement N°4A | Privileged and Confidential | |||
CT 1600622 |
Page 4/4 |
LETTER AGREEMENT N°4B
CHINA SOUTHERN AIRLINES
COMPANY LIMITED
Bai Yun Airport,
Guangzhou 510405,
People’s Republic of China
Subject : [***]
CHINA SOUTHERN AIRLINES COMPANY LIMITED (the “Buyer”) and AIRBUS S.A.S. (the “Seller”) have entered into a purchase agreement (the “Agreement”) dated as of even date herewith, as witnessed by CHINA SOUTHERN AIRLINES GROUP IMPORT AND EXPORT TRADING CORP., LTD. (the “Consenting party”) which covers the manufacture and the sale by the Seller and the purchase by the Buyer of the [***] Aircraft as described in the Agreement.
Capitalized terms used herein and not otherwise defined in this Letter Agreement shall have the meanings assigned thereto in the Agreement.
The parties agree that this Letter Agreement, upon execution thereof, shall constitute an integral, non-severable part of said Agreement and shall be governed by all its provisions, as such provisions have been specifically amended pursuant to this Letter Agreement.
If there is any inconsistency between the Agreement and this Letter Agreement, the latter shall prevail to the extent of such inconsistency.
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
CSN - A350XWB - Letter Agreement N°4B | Privileged and Confidential | |||
CT 1600622 |
Page 1/4 |
LETTER AGREEMENT N°4B
1 | [***] |
[***] | ASSIGNMENT |
Notwithstanding any other provision of this Letter Agreement or of the Agreement, this Letter Agreement and the rights and obligations of the Buyer herein shall not be assigned or transferred in any manner, and any attempted assignment or transfer in contravention of the provisions of this Clause shall be void and of no force or effect.
[***] | CONFIDENTIALITY |
For the purpose of this Clause 13, the term “Buyer” shall be deemed to include a reference to the Consenting party.
This Letter Agreement (and its existence) shall be treated by the Seller and the Buyer as confidential and shall not be released (or revealed) in whole or in part to any third party without the prior consent of the other party. In particular, each party agrees not to make any press release concerning the whole or any part of the contents and/or subject matter hereof or of any future addendum hereto without the prior consent of the other party.
[***] | LAW AND JURISDICTION |
This Letter Agreement shall be governed by, and construed in accordance with, the laws of England and the provisions of Clause 22.4 of the Agreement shall apply to this Letter Agreement.
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
CSN - A350XWB - Letter Agreement N°4B | Privileged and Confidential | |||
CT 1600622 |
Page 2/4 |
LETTER AGREEMENT N°4B
If the foregoing correctly sets forth our understanding, please execute three (3) originals in the space provided below and return one (1) original of this Letter Agreement to the Seller.
Agreed and Accepted | Agreed and Accepted | |||||
For and on behalf of | For and on behalf of | |||||
CHINA SOUTHERN AIRLINES | AIRBUS S.A.S. | |||||
COMPANY LIMITED | ||||||
Signature: | Signature: | |||||
Name: | Name: | |||||
Title: | Title: | |||||
Witnessed and acknowledged by: | ||||||
CHINA SOUTHERN AIRLINES GROUP | ||||||
IMPORT AND EXPORT TRADING CORP., LTD. | ||||||
Signature: | ||||||
Name: | ||||||
Title: |
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
CSN - A350XWB - Letter Agreement N°4B | Privileged and Confidential | |||
CT 1600622 |
Page 3/4 |
LETTER AGREEMENT N°4B
[***]
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
CSN - A350XWB - Letter Agreement N°4B | Privileged and Confidential | |||
CT 1600622 |
Page 4/4 |
LETTER AGREEMENT N°5
CHINA SOUTHERN AIRLINES
COMPANY LIMITED
Bai Yun Airport,
Guangzhou 510405,
People’s Republic of China
Subject : [***]
CHINA SOUTHERN AIRLINES COMPANY LIMITED (the “Buyer”) and AIRBUS S.A.S. (the “Seller”) have entered into a purchase agreement (the “Agreement”) dated as of even date herewith, as witnessed by CHINA SOUTHERN AIRLINES GROUP IMPORT AND EXPORT TRADING CORP., LTD. (the “Consenting Party”) which covers the manufacture and the sale by the Seller and the purchase by the Buyer of the [***] Aircraft as described in the Agreement.
Capitalized terms used herein and not otherwise defined in this Letter Agreement shall have the meanings assigned thereto in the Agreement.
The parties agree that this Letter Agreement, upon execution thereof, shall constitute an integral, non-severable part of said Agreement and shall be governed by all its provisions; as such provisions have been specifically amended pursuant to this Letter Agreement.
If there is any inconsistency between the Agreement and this Letter Agreement, the latter shall prevail to the extent of such inconsistency.
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
CSN - A350XWB - Letter Agreement N°5 | Privileged and Confidential | |||
CT 1600622 |
Page 1/3 |
LETTER AGREEMENT N°5
1 | [***] |
[***] | Assignment |
Notwithstanding any other provision of this Letter Agreement or of the Agreement, this Letter Agreement and the rights and obligations of the Buyer herein shall not be assigned or transferred in any manner, and any attempted assignment or transfer in contravention of the provisions of this Clause shall be void and of no force or effect.
[***] | Confidentiality |
For the purpose of this Clause 11, the term “Buyer” shall be deemed to include a reference to the Consenting Party.
This Letter Agreement (and its existence) shall be treated by the Seller and the Buyer as confidential and shall not be released (or revealed) in whole or in part to any third party without the prior consent of the other party. In particular, each party agrees not to make any press release concerning the whole or any part of the contents and/or subject matter hereof or of any future addendum hereto without the prior consent of the other party.
[***] | Law and Jurisdiction |
This Letter Agreement shall be governed by, and construed in accordance with, the laws of England and the provisions of Clause 22.4 of the Agreement shall apply to this Letter Agreement.
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
CSN - A350XWB - Letter Agreement N°5 | Privileged and Confidential | |||
CT 1600622 |
Page 2/3 |
LETTER AGREEMENT N°5
If the foregoing correctly sets forth our understanding, please execute three (3) originals in the space provided below and return one (1) original of this Letter Agreement to the Seller.
Agreed and Accepted | Agreed and Accepted | |||||
For and on behalf of | For and on behalf of | |||||
CHINA SOUTHERN AIRLINES | AIRBUS S.A.S. | |||||
COMPANY LIMITED | ||||||
Signature: | Signature: | |||||
Name: | Name: | |||||
Title: | Title: | |||||
Witnessed and acknowledged by: | ||||||
CHINA SOUTHERN AIRLINES GROUP | ||||||
IMPORT AND EXPORT TRADING CORP., LTD. | ||||||
Signature: | ||||||
Name: | ||||||
Title: |
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
CSN - A350XWB - Letter Agreement N°5 | Privileged and Confidential | |||
CT 1600622 |
Page 3/3 |
LETTER AGREEMENT N°6
CHINA SOUTHERN AIRLINES
COMPANY LIMITED
Bai Yun Airport,
Guangzhou 510405,
People’s Republic of China
Subject : [***]
CHINA SOUTHERN AIRLINES COMPANY LIMITED (the “Buyer”) and AIRBUS S.A.S. (the “Seller”) have entered into a purchase agreement (the “Agreement”) dated as of even date herewith, as witnessed by CHINA SOUTHERN AIRLINES GROUP IMPORT AND EXPORT TRADING CORP., LTD. (the “Consenting Party”) which covers the manufacture and the sale by the Seller and the purchase by the Buyer of the [***] Aircraft as described in the Agreement.
Capitalized terms used herein and not otherwise defined in this Letter Agreement shall have the meanings assigned thereto in the Agreement.
Both parties agree that this Letter Agreement, upon execution thereof, shall constitute an integral, non-severable part of said Agreement and shall be governed by all its provisions, as such provisions have been specifically amended pursuant to this Letter Agreement.
If there is any inconsistency between the Agreement and this Letter Agreement, the latter shall prevail to the extent of such inconsistency.
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
CSN - A350XWB - Letter Agreement N°6 | Privileged and Confidential | |||
CT 1600622 |
Page 1/3 |
LETTER AGREEMENT N°6
1 | [***] |
[***] | Assignment |
Notwithstanding any other provision of this Letter Agreement or of the Agreement, this Letter Agreement and the rights and obligations of the Buyer herein shall not be assigned or transferred in any manner, and any attempted assignment or transfer in contravention of the provisions of this Clause shall be void and of no force or effect.
[***] | Confidentiality |
For the purpose of this Clause 10, the term “Buyer” shall be deemed to include a reference to the Consenting Party.
This Letter Agreement (and its existence) shall be treated by the Seller and the Buyer as confidential and shall not be released (or revealed) in whole or in part to any third party without the prior consent of the other party. In particular, each party agrees not to make any press release concerning the whole or any part of the contents and/or subject matter hereof or of any future addendum hereto without the prior consent of the other party.
[***] | Law and Jurisdiction |
This Letter Agreement shall be governed by, and construed in accordance with, the laws of England and the provisions of Clause 22.4 of the Agreement shall apply to this Letter Agreement.
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
CSN - A350XWB - Letter Agreement N°6 | Privileged and Confidential | |||
CT 1600622 |
Page 2/3 |
LETTER AGREEMENT N°6
If the foregoing correctly sets forth our understanding, please execute three (3) originals in the space provided below and return one (1) original of this Letter Agreement to the Seller.
Agreed and Accepted | Agreed and Accepted | |||||
For and on behalf of | For and on behalf of | |||||
CHINA SOUTHERN AIRLINES | AIRBUS S.A.S. | |||||
COMPANY LIMITED | ||||||
Signature: | Signature: | |||||
Name: | Name: | |||||
Title: | Title: | |||||
Witnessed and acknowledged by: | ||||||
CHINA SOUTHERN AIRLINES GROUP | ||||||
IMPORT AND EXPORT TRADING CORP., LTD. | ||||||
Signature: | ||||||
Name: | ||||||
Title: |
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
CSN - A350XWB - Letter Agreement N°6 | Privileged and Confidential | |||
CT 1600622 |
Page 3/3 |
LETTER AGREEMENT N°7
CHINA SOUTHERN AIRLINES
COMPANY LIMITED
Bai Yun Airport,
Guangzhou 510405,
People’s Republic of China
Subject : [***]
CHINA SOUTHERN AIRLINES COMPANY LIMITED (the “Buyer”) and AIRBUS S.A.S. (the “Seller”) have entered into a purchase agreement (the “Agreement”) dated as of even date herewith, as witnessed by CHINA SOUTHERN AIRLINES GROUP IMPORT AND EXPORT TRADING CORP., LTD. (the “Consenting Party”) which covers the manufacture and the sale by the Seller and the purchase by the Buyer of the [***] Aircraft as described in the Agreement.
Capitalized terms used herein and not otherwise defined in this Letter Agreement shall have the meanings assigned thereto in the Agreement.
The parties agree that this Letter Agreement, upon execution thereof, shall constitute an integral, non-severable part of said Agreement and shall be governed by all its provisions, as such provisions have been specifically amended pursuant to this Letter Agreement.
If there is any inconsistency between the Agreement and this Letter Agreement, the latter shall prevail to the extent of such inconsistency.
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
CSN - A350XWB - Letter Agreement N°7 | Privileged and Confidential | |||
CT 1600622 |
Page 1/3 |
LETTER AGREEMENT N°7
1 | [***] |
[***] | Assignment |
Notwithstanding any other provision of this Letter Agreement or of the Agreement, this Letter Agreement and the rights and obligations of the Buyer herein shall not be assigned or transferred in any manner, and any attempted assignment or transfer in contravention of the provisions of this Clause shall be void and of no force or effect.
[***] | Confidentiality |
For the purpose of this Clause 3, the term “Buyer” shall be deemed to include a reference to the Consenting Party.
This Letter Agreement (and its existence) shall be treated by the Seller and the Buyer as confidential and shall not be released (or revealed) in whole or in part to any third party without the prior consent of the other party. In particular, each party agrees not to make any press release concerning the whole or any part of the contents and/or subject matter hereof or of any future addendum hereto without the prior consent of the other party.
[***] | Law and Jurisdiction |
This Letter Agreement shall be governed by, and construed in accordance with, the laws of England and the provisions of Clause 22.4 of the Agreement shall apply to this Letter Agreement.
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
CSN - A350XWB - Letter Agreement N°7 | Privileged and Confidential | |||
CT 1600622 |
Page 2/3 |
LETTER AGREEMENT N°7
If the foregoing correctly sets forth our understanding, please execute three (3) originals in the space provided below and return one (1) original of this Letter Agreement to the Seller.
Agreed and Accepted | Agreed and Accepted | |||||
For and on behalf of | For and on behalf of | |||||
CHINA SOUTHERN AIRLINES | AIRBUS S.A.S. | |||||
COMPANY LIMITED | ||||||
Signature: | Signature: | |||||
Name: | Name: | |||||
Title: | Title: | |||||
Witnessed and acknowledged by: | ||||||
CHINA SOUTHERN AIRLINES GROUP | ||||||
IMPORT AND EXPORT TRADING CORP., LTD. | ||||||
Signature: | ||||||
Name: | ||||||
Title: |
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
CSN - A350XWB - Letter Agreement N°7 | Privileged and Confidential | |||
CT 1600622 |
Page 3/3 |
LETTER AGREEMENT N°8
CHINA SOUTHERN AIRLINES
COMPANY LIMITED
Bai Yun Airport,
Guangzhou 510405,
People’s Republic of China
Subject : [***]
CHINA SOUTHERN AIRLINES COMPANY LIMITED (the “Buyer”) and AIRBUS S.A.S. (the “Seller”) have entered into a purchase agreement (the “Agreement”) dated as of even date herewith, as witnessed by CHINA SOUTHERN AIRLINES GROUP IMPORT AND EXPORT TRADING CORP., LTD. (the “Consenting Party”) which covers the manufacture and the sale by the Seller and the purchase by the Buyer of the [***] Aircraft as described in the Agreement.
Capitalized terms used herein and not otherwise defined in this Letter Agreement shall have the meanings assigned thereto in the Agreement.
The parties agree that this Letter Agreement, upon execution thereof, shall constitute an integral, non-severable part of said Agreement and shall be governed by all its provisions, as such provisions have been specifically amended pursuant to this Letter Agreement.
If there is any inconsistency between the Agreement and this Letter Agreement, the latter shall prevail to the extent of such inconsistency.
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
CSN - A350XWB - Letter Agreement N°8 | Privileged and Confidential | |||
CT 1600622 |
Page 1/3 |
LETTER AGREEMENT N°8
1 | [***]. |
[***] | Assignment |
Notwithstanding any other provision of this Letter Agreement or of the Agreement, this Letter Agreement and the rights and obligations of the Buyer herein shall not be assigned or transferred in any manner, and any attempted assignment or transfer in contravention of the provisions of this Clause shall be void and of no force or effect.
[***] | Confidentiality |
For the purpose of this Clause 4, the term “Buyer” shall be deemed to include a reference to the Consenting Party.
This Letter Agreement (and its existence) shall be treated by the Seller and the Buyer as confidential and shall not be released (or revealed) in whole or in part to any third party without the prior consent of the other party. In particular, each party agrees not to make any press release concerning the whole or any part of the contents and/or subject matter hereof or of any future addendum hereto without the prior consent of the other party.
[***] | Law and Jurisdiction |
This Letter Agreement shall be governed by, and construed in accordance with, the laws of England and the provisions of Clause 22.4 of the Agreement shall apply to this Letter Agreement.
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
CSN - A350XWB - Letter Agreement N°8 | Privileged and Confidential | |||
CT 1600622 |
Page 2/3 |
LETTER AGREEMENT N°8
If the foregoing correctly sets forth our understanding, please execute three (3) originals in the space provided below and return one (1) original of this Letter Agreement to the Seller.
Agreed and Accepted | Agreed and Accepted | |||||
For and on behalf of | For and on behalf of | |||||
CHINA SOUTHERN AIRLINES | AIRBUS S.A.S. | |||||
COMPANY LIMITED | ||||||
Signature: | Signature: | |||||
Name: | Name: | |||||
Title: | Title: | |||||
Witnessed and acknowledged by: | ||||||
CHINA SOUTHERN AIRLINES GROUP | ||||||
IMPORT AND EXPORT TRADING CORP., LTD. | ||||||
Signature: | ||||||
Name: | ||||||
Title: |
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
CSN - A350XWB - Letter Agreement N°8 | Privileged and Confidential | |||
CT 1600622 |
Page 3/3 |
LETTER AGREEMENT N°9
CHINA SOUTHERN AIRLINES
COMPANY LIMITED
Bai Yun Airport,
Guangzhou 510405,
People’s Republic of China
Subject : [***]
CHINA SOUTHERN AIRLINES COMPANY LIMITED (the “Buyer”) and AIRBUS S.A.S. (the “Seller”) have entered into a purchase agreement (the “Agreement”) dated as of even date herewith, as witnessed by CHINA SOUTHERN AIRLINES GROUP IMPORT AND EXPORT TRADING CORP., LTD. (the “Consenting Party”) which covers the manufacture and the sale by the Seller and the purchase by the Buyer of the [***] Aircraft as described in the Agreement.
Capitalized terms used herein and not otherwise defined in this Letter Agreement shall have the meanings assigned thereto in the Agreement.
The parties agree that this Letter Agreement, upon execution thereof, shall constitute an integral, non-severable part of said Agreement and shall be governed by all its provisions, as such provisions have been specifically amended pursuant to this Letter Agreement.
If there is any inconsistency between the Agreement and this Letter Agreement, the latter shall prevail to the extent of such inconsistency.
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
CSN - A350XWB - Letter Agreement N°9 | Privileged and Confidential | |||
CT 1600622 |
Page 1/3 |
LETTER AGREEMENT N°9
1 | [***] |
[***] | Assignment |
Notwithstanding any other provision of this Letter Agreement or of the Agreement, this Letter Agreement and the rights and obligations of the Buyer herein shall not be assigned or transferred in any manner, and any attempted assignment or transfer in contravention of the provisions of this Clause shall be void and of no force or effect.
[***] | Confidentiality |
For the purpose of this Clause 28, the term “Buyer” shall be deemed to include a reference to the Consenting Party.
This Letter Agreement (and its existence) shall be treated by the Seller and the Buyer as confidential and shall not be released (or revealed) in whole or in part to any third party without the prior consent of the other party. In particular, each party agrees not to make any press release concerning the whole or any part of the contents and/or subject matter hereof or of any future addendum hereto without the prior consent of the other party.
[***] | Law and Jurisdiction |
This Letter Agreement shall be governed by, and construed in accordance with the laws of England and the provisions of Clause 22.4 of the Agreement shall apply to this Letter Agreement.
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
CSN - A350XWB - Letter Agreement N°9 | Privileged and Confidential | |||
CT 1600622 |
Page 2/3 |
LETTER AGREEMENT N°9
If the foregoing correctly sets forth our understanding, please execute three (3) originals in the space provided below and return one (1) original of this Letter Agreement to the Seller.
Agreed and Accepted | Agreed and Accepted | |||||
For and on behalf of | For and on behalf of | |||||
CHINA SOUTHERN AIRLINES | AIRBUS S.A.S. | |||||
COMPANY LIMITED | ||||||
Signature: | Signature: | |||||
Name: | Name: | |||||
Title: | Title: | |||||
Witnessed and acknowledged by: | ||||||
CHINA SOUTHERN AIRLINES GROUP | ||||||
IMPORT AND EXPORT TRADING CORP., LTD. | ||||||
Signature: | ||||||
Name: | ||||||
Title: |
[***] | This information is subject to confidential treatment and has been omitted and filled separately with the commission. |
CSN - A350XWB - Letter Agreement N°9 | Privileged and Confidential | |||
CT 1600622 |
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