EXHIBIT 10.16 TO ALASKA AIR GROUP, INC. 1998 FORM 10-K
BOMBARDIER AEROSPACE REGIONAL AIRCRAFT
MASTER PURCHASE AGREEMENT*
BETWEEN
BOMBARDIER INC.
AND
HORIZON AIR INDUSTRIES, INC.
CONFIDENTIAL TREATMENT HAS BEEN SOUGHT FOR CERTAIN PORTIONS OF THIS
EXHIBIT. SUCH PROTIONS HAVE BEEN FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION
* The following marking indicates that material has been omitted because it
is confidential:
[CONFIDENTIAL TREATMENT REQUESTED]
TABLE OF CONTENTS
SECTION I - TERMS AND CONDITIONS, AND EXHIBITS
ARTICLE
1 INTERPRETATION
2 SUBJECT MATTER OF SALE
3 AIRLINE SUPPORT SERVICES AND WARRANTY
4 PRICE
5 PAYMENT
6 DELIVERY PROGRAM
7 BUYER INFORMATION
8 CERTIFICATION FOR EXPORT
9 ACCEPTANCE PROCEDURE
10 TITLE AND RISK
11 CHANGES
12 BUYER'S REPRESENTATIVES AT MANUFACTURE SITE
13 EXCUSABLE DELAY
14 NON-EXCUSABLE DELAY
15 LOSS OR DAMAGE
16 TERMINATION
17 NOTICES
18 INDEMNITY AGAINST PATENT INFRINGEMENT
19 LIMITATION OF LIABILITY
20 ASSIGNMENT
21 SUCCESSORS
22 APPLICABLE LAWS
23 CONFIDENTIAL NATURE OF AGREEMENT
24 AGREEMENT
EXHIBITS
I CERTIFICATE OF ACCEPTANCE
II BILL OF SALE
III CERTIFICATE OF RECEIPT OF AIRCRAFT
IV CHANGE ORDER
SECTION II - AIRLINE SERVICES AND WARRANTY AND SERVICE LIFE POLICY
ANNEXES
A AIRLINE SERVICES
B WARRANTY AND SERVICE LIFE POLICY
SECTION III - SUPPLEMENTS
SUPPLEMENTS
PA-436-1 TWENTY (20) CANADAIR REGIONAL JETS SERIES 700 AIRCRAFT.
SCHEDULES TO PA-436-1
1 SPECIFICATION
2 BUYER SELECTED OPTIONAL FEATURES
3 ECONOMIC ADJUSTMENT FORMULA
4 CREDIT MEMORANDUM
5 PERFORMANCE GUARANTEE
6 DISPATCH RELIABILITY GUARANTEE
7 FINANCING ASSISTANCE
8 DELAY, DAMAGE AND TERMINATION
9 AIRFRAME DIRECT MAINTENANCE COST GUARANTEE
10 CONVERSION RIGHTS
11 CONVERSION AIRCRAFT
12 CHANGES TO BUYER SELECTED OPTIONAL FEATURES
13 SPARE PARTS CREDIT MEMORANDUM
This Master Purchase Agreement is made on the 21st day of December, 1998
BY AND BETWEEN: BOMBARDIER INC., a Canadian corporation represented by
BOMBARDIER AEROSPACE, REGIONAL AIRCRAFT having an office
at ▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇, ▇▇▇▇▇▇
("Bombardier"),
AND: HORIZON AIR INDUSTRIES, INC., a Washington Corporation
having its head office at ▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇,
▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇, ("Buyer").
WHEREAS Buyer may in future desire to purchase new Aircraft (as
defined in Article 1.4 of this Master Purchase Agreement)
and related data, documents, and services under this
Agreement (as defined in Article 1.4 of this Master
Purchase Agreement) from Bombardier, and the parties
desire to agree in advance on the terms that will govern
such purchase; and
WHEREAS This Master Purchase Agreement and any subsequent
amendments thereto, together with the Supplement(s) that
may be executed from time to time, will be the governing
document for any future transactions between Bombardier
and Buyer relating to the purchase and sale of new
Bombardier products, currently being offered for sale by
Bombardier Aerospace, Regional Aircraft.
NOW THEREFORE, in consideration of the mutual covenants herein contained,
Buyer and Bombardier agree as follows:
SECTION I
OF
MASTER PURCHASE AGREEMENT NO. PA-436
TERMS AND CONDITIONS
ARTICLE 1 - INTERPRETATION
1.1 The recitals above have been inserted for convenience only and do not
form part of the Agreement.
1.2 The headings in this Agreement are included for convenience only and
shall not be used in the construction and interpretation of this
Agreement.
1.3 In this Agreement, unless otherwise expressly provided, the singular
includes the plural and vice-versa.
1.4 In this Agreement the following expressions shall, unless otherwise
expressly provided, mean:
(a) "Acceptance Period" shall have the meaning attributed to it in
Article 9.3;
(b) "Acceptance Date" shall have the meaning attributed to it in
Article 9.7(a);
(c) "Agreement" means this Master Purchase Agreement, Supplements and
Letter Agreements, if any, including their Exhibits, Annexes,
Schedules and Appendices, if any, either attached hereto (each of
which is incorporated in the Agreement by this reference) or
subsequently agreed by the parties, hereto, pursuant to the
provisions of this Agreement;
(d) "Aircraft" shall have the meaning attributed to it in the
applicable Supplement;
(e) "Aircraft Purchase Price" shall have the meaning attributed to it
in the applicable Supplement;
(f) "Base Price" shall have the meaning attributed to it in the
applicable Supplement;
(g) "Bill of Sale" shall have the meaning attributed to it in Article
9.7(c);
(h) "BFE" shall have the meaning attributed to it in Article 11.1;
(i) "Buyer Selected Optional Features" shall have the meaning
attributed to it in the applicable Supplement;
(j) "Delivery Date" shall have the meaning attributed to it in
Article 9.7(c);
(k) "Economic Adjustment Formula", if applicable, shall have the
meaning attributed to it in the applicable Supplement;
(l) "Excusable Delay" shall have the meaning attributed to it in
Article 13.1;
(m) "FAA" shall have the meaning attributed to it in Article 8.1;
(n) "Non-Excusable Delay" shall have the meaning attributed to it in
Article 14.1;
(o) "Notice" shall have the meaning attributed to it in Article 17.1;
(p) "Other Patents" shall have the meaning attributed to it in
Article 18.1;
(q) "Permitted Change" shall have the meaning attributed to it in
Article 11.2;
(r "Readiness Date" shall have the meaning attributed to it in
Article 9.1;
(s "Regulatory Change" shall have the meaning attributed to it in
Article 8.4;
(t) "Scheduled Delivery Date" shall have the meaning attributed to it
in the applicable Supplement;
(u) "Specification" shall have the meaning attributed to it in the
applicable Supplement;
(v) "Supplement" means a supplementary agreement to this Agreement
entered into by the parties for the purchase of specific products
currently offered for sale by Bombardier Aerospace, Regional
Aircraft;
(w) "Taxes" shall have the meaning attributed to it in Article 4.2;
and
(x) "TC" shall have the meaning attributed to it in Article 8.1.
1.5 All dollar amounts in this Agreement are in United States Dollars.
ARTICLE 2 - SUBJECT MATTER OF SALE
2.1 A description of the Aircraft being purchased and sold under the
terms of this Agreement and the related Bombardier specification
document number(s) will be set out in the applicable Supplement.
Until a Supplement, in the form of Exhibit V hereto, is executed
between the parties hereto, neither party shall have any obligation
under the terms of this Agreement.
2.2 This Agreement shall be applicable to the purchase of Aircraft
completed during a period of three (3) years from the date hereof as
evidenced by the execution of a Supplement.
ARTICLE 3 - CUSTOMER SUPPORT SERVICES AND WARRANTY
3.1 Bombardier shall provide to Buyer the customer support services
pursuant to the provisions of Annex A attached hereto and the
applicable Supplement.
3.2 Bombardier shall provide to Buyer the warranty and the service life
policy described in Annex B attached hereto and the applicable
Supplement which shall be the exclusive warranty applicable to the
Aircraft.
3.3 Unless expressly stated otherwise, the services referred to in 3.1 and
3.2 above and the applicable Supplement are incidental to the sale of
the Aircraft and are included in the Aircraft Purchase Price.
ARTICLE 4 - PRICE
4.1 (a) The base price for each of the Aircraft is set out in the
applicable Supplement;
(b) The base price of the Buyer Selected Optional Features is set out
in the applicable Supplement; and
(c) The Aircraft base price shall be the base price for the Aircraft
as stated in paragraph (a), plus the base price of the Buyer
Selected Optional Features as stated in paragraph (b) (the
"Base Price").
4.2 [CONFIDENTIAL TREATMENT REQUESTED]
4.3 [CONFIDENTIAL TREATMENT REQUESTED]
4.4 [CONFIDENTIAL TREATMENT REQUESTED]
4.5 [CONFIDENTIAL TREATMENT REQUESTED]
ARTICLE 5 - PAYMENT
5.1 The terms of payment for the Aircraft purchased and sold under the
terms of this Agreement shall be set out in the applicable Supplement.
5.2 Intentionally left blank.
5.3 [CONFIDENTIAL TREATMENT REQUESTED]
5.4 Buyer shall make all payments due under this Agreement and/or any
applicable Supplement in immediately available United States Dollars
by deposit on or before the due date, to Bombardier's account, in the
manner set out in the applicable Supplement.
5.5 All amounts due with respect to each Aircraft shall be paid on or
prior to the Delivery Date of the respective Aircraft.
5.6 Bombardier shall remain the exclusive owner of the Aircraft, free and
clear of all rights, liens, charges or encumbrances created by or
through Buyer, until such time as all payments referred to in this
Article 5 have been received in full by Bombardier.
ARTICLE 6 - DELIVERY PROGRAM
6.1 The Aircraft shall be offered for inspection and acceptance to Buyer
at Bombardier's facility and during the Schedule Delivery Dates set
forth in the applicable Supplement.
ARTICLE 7 - BUYER INFORMATION
7.1 During the manufacture of the Aircraft, Buyer shall provide to
Bombardier on or before the date required by Bombardier, all
information as Bombardier may reasonably request (with timely notice)
to manufacture the Aircraft including, without limitation, the
selection of furnishings, internal and external colour schemes.
Buyer will, not less than the number of months set forth in the
applicable Supplement, prior to the delivery of the first Aircraft
governed by such Supplement:
(a) provide Bombardier with an external paint scheme agreed on by the
parties; and
(b) select interior colours (from Bombardier's standard colours).
Failure of Buyer to comply with these requirements may result in an
increase in price, a delay in delivery of the Aircraft, or both.
7.2 [CONFIDENTIAL TREATMENT REQUESTED] prior to the delivery of the first
Aircraft
under a Supplement, where the Supplement includes the purchase of a de
Havilland Dash 8 Series 100, 200, 300 or Canadair Regional Jet Series
200 aircraft, and [CONFIDENTIAL TREATMENT REQUESTED] prior to the delivery of
the first Aircraft under a Supplement, where the Supplement includes
the purchase of a de Havilland Dash 8 Series 400 or Canadair Regional
Jet Series 700 aircraft, Buyer shall notify Bombardier, in writing, of
the BFE (if any) that Buyer wishes to have incorporated on each
Aircraft. Buyer shall also provide details of:
(a) weights and dimensions of the BFE;
(b) test equipment or special tools required to incorporate the BFE;
and
(c) any other information Bombardier may reasonably require.
Within [CONFIDENTIAL TREATMENT REQUESTED] thereafter, Bombardier shall advise
Buyer of its acceptance or rejection of the BFE, acceptance of which
is not to be unreasonably refused, and of the dates by which each
item of BFE is required by Bombardier. If required the parties hereto
shall execute a Change Order in accordance with Article 11.1 to cover
those BFE accepted by Bombardier.
7.3 The BFE accepted by Bombardier pursuant to this Article shall be
incorporated in the manufacturing process of the Aircraft subject to
the following conditions:
(a) Title to the BFE shall remain at all times with Buyer and risk of
loss of the BFE shall remain at all times with Buyer except for
damages caused by Bombardier's gross negligence.
(b) The BFE must be received Carriage Paid To (Incoterms 1990)
Bombardier's plant or such other place as Bombardier may
designate, no later than the date notified pursuant to Article
7.2, free and clear of any taxes, duties, licenses, charges,
liens or other similar claims;
(c) The BFE shall meet:
1) the standards of quality of Bombardier, and
2) the requirements of the applicable airworthiness
certification agency;
(d) The BFE shall be delivered to Bombardier in good condition and
ready for immediate incorporation into the Aircraft. Bombardier
shall, upon receipt, inspect the BFE as to quantity and apparent
defects and inform ▇▇▇▇▇ of any discrepancies and the required
corrective actions to be taken;
(e) [CONFIDENTIAL TREATMENT REQUESTED]
(f) [CONFIDENTIAL TREATMENT REQUESTED]
7.4 If at any time between receipt of the BFE by Bombardier and the
Delivery Date, it is determined by Bombardier that an item of BFE
supplied does not meet the standards and requirements described above
(provided that same are correct) or [CONFIDENTIAL TREATMENT REQUESTED] the
Aircraft or Aircraft systems create delays in the manufacturing or
certification process, then such BFE may be removed and replaced by
other BFE or by Bombardier's equipment. [CONFIDENTIAL TREATMENT REQUESTED].
7.5 In the event that the delivery of an Aircraft is delayed due to any
delay caused by ▇▇▇▇▇'s failure to:
(a) deliver or have BFE delivered by the date required;
(b) ensure satisfactory design, suitability, use or operation of the
BFE;
(c) furnish or obtain applicable BFE data;
(d) perform any adjusting, calibrating, retesting or updating of BFE;
(e) furnish or obtain any approvals in compliance with the provisions
of this Article; or
(f) comply with the conditions of this Article.
then Bombardier agrees to discuss with ▇▇▇▇▇ the steps to be taken to
minimize, cure, eliminate or work around the delay, [CONFIDENTIAL TREATMENT
REQUESTED].
7.6 Should there be a delay in delivery caused either by a failure of
Buyer described in Article 7.5, or by an event to which reference is
made in Article 13.0 in connection with the BFE, and if such delay
cannot reasonably be minimized, cured, eliminated or worked around by
agreement of the parties, [CONFIDENTIAL TREATMENT REQUESTED].
7.7 If this Agreement is terminated in whole or in part in accordance with
the provisions hereof Bombardier may elect to, by written notice to
Buyer, either:
(a) if concurrence is received from Buyer, purchase the BFE ordered
by ▇▇▇▇▇ and/or received by Bombardier at the invoice price paid
by Buyer; or
(b) return the BFE to Buyer Free Carrier (Incoterms 1990)
Bombardier's plant, or such other place that Bombardier may
designate.
ARTICLE 8 - CERTIFICATION FOR EXPORT
8.1 Bombardier has obtained or will obtain from Transport Canada,
Airworthiness ("TC"), a TC Type Approval (Transport Category) and from
the Federal Aviation Administration of the United States ("FAA") an
FAA Type Certificate for the type of aircraft purchased under this
Agreement and any applicable Supplement.
8.2 Bombardier will provide to Buyer a TC Certificate of Airworthiness
(Transport Category) for Export, on or before the Delivery Date. This
Certificate shall bear a statement of compliance enabling Buyer to
obtain an FAA Certificate of Airworthiness.
8.3 Bombardier shall not be obligated to obtain any other certificates or
approvals as part of this Agreement. The obtaining of any import
license or authority required to import or operate the Aircraft into
any country outside of Canada shall be the responsibility of Buyer.
Bombardier shall, to the extent permitted by law, and with ▇▇▇▇▇'s
assistance, seek the issuance of a Canadian export license to enable
Buyer to export the Aircraft from Canada subject to prevailing export
control regulations in effect on the Delivery Date.
8.4 If any addition or change to, or modification or testing of the
Aircraft is required by any law or governmental regulation or
requirement or interpretation thereof by any governmental agency
having jurisdiction in order to meet the requirements of Article 8.2
(a "Regulatory Change"), [CONFIDENTIAL TREATMENT REQUESTED].
8.5 [CONFIDENTIAL TREATMENT REQUESTED]
8.6 If delivery of the Aircraft is delayed by the incorporation of any
Regulatory Change, such delay shall be an Excusable Delay within the
meaning of Article 13.
8.7 Bombardier shall issue a Change Order, reflecting any Regulatory
Change required to be made under this Article 8, which shall set forth
in detail the particular changes to be made and the effect, if any, of
such changes on design, performance, weight, balance, time of
delivery, Base Price and Aircraft Purchase Price. Any Change Orders
issued pursuant to this Article shall be effective and binding upon
the date of Bombardier's transmittal of such Change Order.
8.8 If the use of any of the certificates identified in this Article 8 are
discontinued during the performance of this Agreement, reference to
such discontinued certificate shall be deemed a reference to any other
certificate or instrument which corresponds to such certificate.
8.9 Reference to a regulatory authority shall include any succeeding
department or agency then responsible for the duties of said
regulatory authority.
8.10 [CONFIDENTIAL TREATMENT REQUESTED]
ARTICLE 9 - ACCEPTANCE PROCEDURE
9.1 Bombardier shall give Buyer [CONFIDENTIAL TREATMENT REQUESTED]
advance notice,
by facsimile or telegraphic communication or other expeditious means,
of the projected date of readiness of each Aircraft for inspection and
delivery.
Bombardier shall give Buyer [CONFIDENTIAL TREATMENT REQUESTED] advance notice,
by facsimile or telegraphic communication or other expeditious means,
of the date on which an Aircraft will be ready for Buyer's inspection,
flight test and acceptance (the "Readiness Date"). If, after the
giving of such notice (which has not been withdrawn in a timely
manner), an Aircraft is not ready on the Readiness Date for Buyer's
inspection, flight test and acceptance, Bombardier shall reimburse
Buyer for the reasonable out of pocket living expenses, including but
not limited to air travel expenses (regular coach fare) to return the
Buyer's acceptance team for additional delivery attempts, which are
incremental to the Acceptance Period of Buyer's representatives.
9.2 Within [CONFIDENTIAL TREATMENT REQUESTED] following receipt by Buyer of the
notice of Readiness Date Buyer shall:
(a) provide notice to Bombardier as to the source and method of
payment of the balance of the Aircraft Purchase Price;
(b) identify to Bombardier the names of ▇▇▇▇▇'s representatives who
will participate in the inspection, flight test and acceptance;
and
(c) provide evidence of the authority of the designated persons to
execute the Certificate of Acceptance and other delivery
documents on behalf of ▇▇▇▇▇.
9.3 Buyer shall have [CONFIDENTIAL TREATMENT REQUESTED] commencing on the
Readiness Date in which to complete the inspection and flight test
(such [CONFIDENTIAL TREATMENT REQUESTED] period being the "Acceptance
Period").
9.4 Up to [CONFIDENTIAL TREATMENT REQUESTED] may participate in Buyer's ground
inspection of the Aircraft and [CONFIDENTIAL TREATMENT REQUESTED] may
participate in the flight test. Bombardier shall, if requested by
▇▇▇▇▇, perform an acceptance flight of not less than one (1) and not
more than three (3) hours duration. Ground inspection and flight test
shall be conducted in accordance with Bombardier's acceptance
procedures (a copy of which shall be provided to Buyer at [CONFIDENTIAL
TREATMENT REQUESTED] to the Scheduled Delivery Date of the first Aircraft
governed by the applicable Supplement hereunder) and at Bombardier's
expense. At all times during ground inspection and flight test,
Bombardier shall retain control over the Aircraft.
9.5 If no Aircraft defect or discrepancy is revealed during the ground
inspection or flight test, Buyer shall accept the Aircraft on or
before the last day of the Acceptance Period in accordance with the
provisions of Article 9.7.
9.6.1 [CONFIDENTIAL TREATMENT REQUESTED]. Should the inspection reveal a defect
or discrepancy which from ▇▇▇▇▇'s standpoint is not a material defect
the cost correction of which would be disproportionate to the impact
of such defect or discrepancy or Buyer's operation the parties agree
to discuss to resolve the issue in a manner satisfactory to both
parties. [CONFIDENTIAL TREATMENT REQUESTED]
9.6.2 If any material defect or discrepancy in the Aircraft is revealed
by ▇▇▇▇▇'s ground inspection or flight test, and Bombardier is not
able to promptly correct such defect or discrepancy then Bombardier
and Buyer will cooperate to effect acceptance and delivery of such
Aircraft following correction of such defect in a timely manner
satisfactory to both parties.
9.7 [CONFIDENTIAL TREATMENT REQUESTED]:
(a) Buyer will sign a Certificate of Acceptance (in the form of
Exhibit I hereto ) for the Aircraft. Execution of the
Certificate of Acceptance by or on behalf of Buyer shall be
evidence of Buyer having examined the Aircraft and found it in
accordance with the provisions of this Agreement. The date of
signature of the Certificate of Acceptance shall be the
"Acceptance Date";
(b) Bombardier will supply a TC Certificate of Airworthiness for
Export; and
(c) Buyer shall pay Bombardier the balance of the Aircraft Purchase
Price and any other amounts due, at which time Bombardier shall
issue an FAA form Bill of Sale and a bill of sale (in the form
of Exhibit II hereto) passing to Buyer good title to the Aircraft
free and clear of all liens, claims, charges and encumbrances
except for those liens, charges or encumbrances created by or
claimed through Buyer (collectively the "Bill of Sale"). The
date on which Bombardier delivers the Bill of Sale and Buyer
takes delivery of the Aircraft shall be the "Delivery Date".
Delivery of the Aircraft shall be evidenced by the execution and
delivery of the Bill of Sale and of the Certificate of Receipt of
Aircraft (in the form of Exhibit III hereto ).
9.8 Provided that Bombardier has met all of its obligations under this
Article 9, [CONFIDENTIAL TREATMENT REQUESTED].
9.9 Provided that Bombardier has met all material obligations under this
Article 9, [CONFIDENTIAL TREATMENT REQUESTED].
ARTICLE 10 - TITLE AND RISK
10.1 Title to the Aircraft and risk of loss of or damage to the Aircraft
passes to Buyer when Bombardier presents the Bill of Sale to Buyer on
the Delivery Date.
10.2 If, after transfer of title on the Delivery Date, the Aircraft remains
in or is returned to the care, custody or control of Bombardier, Buyer
shall retain risk of loss of, or damage to the Aircraft and for itself
and on behalf of its insurer(s) hereby waives and renounces to, and
releases Bombardier and any of Bombardier's affiliates from any claim,
whether direct, indirect or by way of subrogation, for damages to or
loss of the Aircraft arising out of, or related to, or by reason of
such care, custody or control.
ARTICLE 11 - CHANGES
11.1 Any change made in accordance with the provisions of this [CONFIDENTIAL
TREATMENT REQUESTED] and the cost thereof shall be borne by Bombardier.
Other than [CONFIDENTIAL TREATMENT REQUESTED], or a Regulatory Change as
described in Article 8.4, any change to this Agreement (including
without limitation the Specification) or any features or Buyer
Furnished Equipment BFE, if any, changing the Aircraft from that
described in the Specification, requested by Buyer, and as may be
mutually agreed upon by the parties hereto, shall be made using a
change order ("Change Order") substantially in the format of Exhibit
IV hereto. Should Buyer request a change, Bombardier shall advise
Buyer, to the extent reasonably practical, of the effect, if any, of
such change request on:
(a) the Scheduled Delivery Date;
(b) the price and payment terms applicable to the Change Order; and
(c) any other material provisions of this Agreement which will be
affected by the Change Order.
Such Change Order shall become effective and binding on the parties
hereto when signed by a duly authorized representative of each party.
11.2 [CONFIDENTIAL TREATMENT REQUESTED].
ARTICLE 12 - BUYER'S REPRESENTATIVES AT MANUFACTURE SITE
12.1 From time to time, commencing [CONFIDENTIAL TREATMENT REQUESTED] prior
to the Scheduled Delivery Date of the first Aircraft governed by the
applicable Supplement, and ending with the Delivery Date of the last
Aircraft purchased thereunder, Bombardier shall furnish, without
charge, office space at Bombardier's facility for [CONFIDENTIAL TREATMENT
REQUESTED] of Buyer. Buyer shall be responsible for all expenses of its
representative and shall notify Bombardier at [CONFIDENTIAL TREATMENT
REQUESTED] prior to the first scheduled visit of such representative and
[CONFIDENTIAL TREATMENT REQUESTED] for each subsequent visit.
12.2 Bombardier's and Bombardier's affiliates' facilities shall be
accessible to Buyer's representative [CONFIDENTIAL TREATMENT REQUESTED].
12.3 Bombardier shall advise Buyer's representative of Bombardier's or
Bombardier's affiliates' rules and regulations applicable at the
facilities being visited and Buyer's representative shall conform to
such rules and regulations.
12.4 At any time prior to delivery of the Aircraft, [CONFIDENTIAL TREATMENT
REQUESTED]. Bombardier shall provide a written response to any such
request including the corrective action to be taken if applicable or
otherwise which explains why the part or material in question are in
accordance with the Specification. Communication between Buyer's
representative and Bombardier shall be solely through Bombardier's
Contracts Department or its designate.
12.5 [CONFIDENTIAL TREATMENT REQUESTED].
ARTICLE 13 - EXCUSABLE DELAY
13.1 [CONFIDENTIAL TREATMENT REQUESTED].
13.2 [CONFIDENTIAL TREATMENT REQUESTED].
13.3 [CONFIDENTIAL TREATMENT REQUESTED].
13.4 [CONFIDENTIAL TREATMENT REQUESTED].
13.5 [CONFIDENTIAL TREATMENT REQUESTED].
ARTICLE 14 - NON-EXCUSABLE DELAY
14.1 If delivery of the Aircraft is delayed by causes not excused under
Article 13.1 (a "Non-Excusable Delay"), [CONFIDENTIAL TREATMENT REQUESTED].
14.2 [CONFIDENTIAL TREATMENT REQUESTED].
14.3 [CONFIDENTIAL TREATMENT REQUESTED].
14.4 [CONFIDENTIAL TREATMENT REQUESTED].
ARTICLE 15 - LOSS OR DAMAGE
15.1 In the event that prior to the Delivery Date of any Aircraft, the
Aircraft is lost, destroyed or damaged beyond repair due to any cause,
Bombardier shall promptly notify Buyer in writing. Such notice shall
specify the earliest date reasonably possible, consistent with
Bombardier's other contractual commitments and production schedule, by
which Bombardier estimates it would be able to deliver a replacement
for the lost, destroyed or damaged Aircraft. The applicable
Supplement and this Agreement as it relates thereto shall
automatically terminate as to such Aircraft unless Buyer gives
Bombardier written notice, within [CONFIDENTIAL TREATMENT REQUESTED] of
Bombardier's notice, that Buyer desires a replacement for such
Aircraft. If Buyer gives such notice to Bombardier, the parties shall
execute an amendment to the applicable Supplement which shall set
forth the Delivery Date for such replacement aircraft and
corresponding new replacement Aircraft Purchase Price; provided,
however, that nothing herein shall obligate Bombardier to manufacture
and deliver such replacement aircraft if it would require the
reactivation or acceleration of its production line for the model of
aircraft purchased hereunder. The terms and conditions of this
Agreement and the applicable Supplement applicable to the replaced
Aircraft shall apply to the replacement aircraft.
ARTICLE 16 - TERMINATION
16.1 [CONFIDENTIAL TREATMENT REQUESTED].
16.2 [CONFIDENTIAL TREATMENT REQUESTED].
16.3 [CONFIDENTIAL TREATMENT REQUESTED].
16.4 [CONFIDENTIAL TREATMENT REQUESTED].
ARTICLE 17 - NOTICES
17.1 Any notice, request, approval, permission, consent or other
communication ("Notice"), to be given or required under this Agreement
or a Supplement shall be provided in writing, by registered mail,
facsimile, courier, telegraphic or other electronic communication
providing reasonable proof of transmission, except that no notice
shall be sent by mail if disruption of postal service exists or is
threatened either in the country of origin or of destination, by the
party giving the Notice and shall be addressed as follows:
(a) Notices to Bombardier shall be addressed to:
Bombardier Inc.
Bombardier Aerospace, Regional Aircraft
▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇
▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇
▇▇▇▇▇▇
▇▇▇ ▇▇▇
Attention: Director of Contracts
Facsimile: (▇▇▇) ▇▇▇-▇▇▇▇
(b) Notices to Buyer shall be addressed to:
Horizon Air Industries, Inc.
▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇.
Seattle, Washington 98188
U.S.A.
Attention: President
▇▇▇▇▇▇▇▇▇: (▇▇▇) ▇▇▇-▇▇▇▇
17.2 Notice given in accordance with Article 17.1 shall be deemed
sufficiently given to and received by the addressees:
(a) if delivered by hand, on the day when the same shall have been so
delivered; or
(b) if mailed or sent by courier on the day indicated on the
corresponding acknowledgment of receipt; or
(c) if sent by telex or facsimile on the day indicated by the
acknowledgment or the answer back of the receiver in provable
form.
ARTICLE 18 - INDEMNITY AGAINST PATENT INFRINGEMENT
18.1 In the case of any actual or alleged infringement of any Canadian or
United States patent or, subject to the conditions and exceptions set
forth below, any patent issued under the laws of any other country in
which Buyer from time to time may lawfully operate the Aircraft
("Other Patents"), by the Aircraft, or by any system, accessory,
equipment or part installed in such Aircraft at the time title to such
Aircraft passes to Buyer, Bombardier shall defend, indemnify, protect
and hold harmless Buyer from and against all claims, suits, actions,
liabilities, damages and costs resulting from the infringement,
excluding any incidental or consequential damages (which include
without limitation loss of revenue or loss of profit) and Bombardier
shall, at its option and expense:
(a) procure for Buyer the right under such patent to use such
system, accessory, equipment or part; or
(b) replace such system, accessory, equipment or part with one of the
similar functionality and quality that is non-infringing; or
(c) modify such system, accessory, equipment or part to make same
non-infringing in a manner such as to keep it otherwise in
compliance with the requirements of this Agreement.
Bombardier's obligation hereunder shall extend to Other Patents only
if from the time of design of the Aircraft, system, accessory,
equipment or part until the alleged infringement claims are resolved:
(d) such other country and the country in which the Aircraft is
permanently registered have ratified and adhered to and are at
the time of the actual or alleged infringement contracting
parties to the Chicago Convention on International Civil Aviation
of December 7, 1944 and are fully entitled to all benefits of
Article 27 thereof; and
(e) such other country and the country of registration shall each
have been a party to the International Convention for the
Protection of Industrial Property (Paris Convention) or have
enacted patent laws which recognize and give adequate protection
to inventions made by the nationals of other countries which have
ratified, adhered to and are contracting parties to both of the
forgoing conventions.
18.2 The foregoing indemnity does not apply to BFE, or to avionics, engines
or any system, accessory, equipment or part that was not manufactured
to Bombardier's detailed design or to any system, accessory, equipment
or part manufactured by a third party to Bombardier's detailed design
without Bombardier's authorization.
18.3 Buyer's remedy and Bombardier's obligation and liability under this
Article are conditional upon (i) Buyer giving Bombardier written
notice within [CONFIDENTIAL TREATMENT REQUESTED] after ▇▇▇▇▇ receives notice
of a suit or action against Buyer alleging infringement or within
[CONFIDENTIAL TREATMENT REQUESTED] after ▇▇▇▇▇ receives any other written
claim of infringement (ii) Buyer uses reasonable efforts in full
cooperation with Bombardier to reduce or mitigate any such expenses,
damages, costs or royalties involved, and (iii) Buyer furnishes
promptly to Bombardier all data, papers and records in its possession
or control necessary or useful to resist and defend against such claim
or suit. Bombardier may at its option conduct negotiations with any
party claiming infringement and may intervene in any suit or action.
Whether or not Bombardier intervenes, Bombardier shall be entitled at
any stage of the proceedings to assume or control the defense.
Bombardier shall have no obligation under this Article 18 if Buyer
pays or assumes any liabilities, expenses, damages, royalties or costs
without Bombardier's prior approval.
18.4 [CONFIDENTIAL TREATMENT REQUESTED].
ARTICLE 19 - LIMITATION OF LIABILITY AND INDEMNIFICATION
19.1 [CONFIDENTIAL TREATMENT REQUESTED].
19.2 [CONFIDENTIAL TREATMENT REQUESTED].
19.3 [CONFIDENTIAL TREATMENT REQUESTED].
19.4 INTENTIONALLY DELETED
ARTICLE 20 - ASSIGNMENT
20.1 Either party may assign, sell, transfer or dispose of (in whole or in
part) any of its rights and obligations hereunder or a Supplement to
an affiliate or a wholly owned subsidiary provided that there is no
increase to the liability and/or responsibility of the non-assigning
party and that the assigning party remains jointly and severally
liable with any assignee for the performance of its obligation under
this Agreement. In addition, either party may assign its interest to
a corporation (i) that results from any merger, consolidation, or a
reorganization of such party; or (ii) into which such party may be
merged or with which it maybe consolidated.
20.2 Except as provided in Article 20.1, Buyer shall not assign, sell,
transfer or dispose of (in whole or in part) any of its rights or
obligations hereunder or a Supplement without Bombardier's prior
written consent. In the event of such assignment, sale, transfer or
disposition Buyer shall remain jointly and severally liable with any
assignee for the performance of all and any of Buyer's obligations
under this Agreement and Bombardier reserves the right as a condition
of its consent to amend one or more of the terms and conditions of
this Agreement and (including for more certainty) the applicable
Supplement.
20.3 Notwithstanding Article 20.2 above, Buyer may assign, after transfer
of title of the Aircraft, its rights under this Agreement, save and
except for any rights of Buyer which are expressly stated to be
personal to Buyer, to a third party purchaser of any one of the
Aircraft, upon obtaining from said third party an acknowledgment in
writing to be bound by the applicable terms and conditions of this
Agreement, including but not limited to the provisions and limitations
as detailed Annex A, Customer Support Services, Annex B, Warranty and
Service Life Policy and of the provisions and limitations in
Limitation of Liability as defined in Article 19 hereof and Indemnity
Against Patent Infringement as defined in Article 18 hereof and any
other on-going obligations of Buyer, which shall apply to it to the
same extent as if said third party was Buyer hereunder and, provided
that there is no increase to the liability and/or responsibility of
Bombardier.
20.4 Bombardier may assign any of its rights to receive money hereunder
without the prior consent of ▇▇▇▇▇.
20.5 Notwithstanding the other provisions of this Article 20, Bombardier
shall, at Buyer's cost and expense, if so requested in writing by
Buyer, take any action reasonably required for the purpose of causing
any of the Aircraft to be subjected (i) to, after the Delivery Date,
an equipment trust, conditional sale or lien, or (ii) to another
arrangement for the financing of the Aircraft by Buyer, providing,
however, there shall be no increase to the liability and/or
responsibility of Bombardier arising through such financing, and no
transfer of title of an Aircraft shall occur until payment therefore
as provided in this Agreement.
ARTICLE 21 - SUCCESSORS
21.1 This Agreement shall inure to the benefit of and be binding upon each
of Bombardier and Buyer and their respective successors and permitted
assignees.
ARTICLE 22 - APPLICABLE LAWS
22.1 THIS AGREEMENT AND (INCLUDING FOR MORE CERTAINTY) SUPPLEMENTS PURSUANT
HERETO SHALL BE SUBJECT TO AND CONSTRUED IN ACCORDANCE WITH AND THE
RIGHTS OF THE PARTIES SHALL BE GOVERNED BY THE DOMESTIC LAWS OF THE
PROVINCE OF ONTARIO, CANADA, EXCLUDING THE CHOICE OF LAW RULES, AND
THE PARTIES HAVE AGREED THAT THE APPLICATION OF THE UNITED NATIONS
CONVENTION ON CONTRACTS FOR THE INTERNATIONAL SALE OF GOODS IS HEREBY
EXCLUDED.
22.2 Bombardier's obligations under this Agreement shall be subject to and
apply only to the extent permitted by applicable laws, regulations,
directives and/or orders regarding export controls.
ARTICLE 23 - CONFIDENTIAL NATURE OF AGREEMENT
23.1 Except as required by law, this Agreement including any Supplements
hereto are confidential between the parties and shall not, without the
prior written consent of the other party, be disclosed by either party
in whole or in part to any other person or body except as may be
necessary for either party to carry out its obligations under this
Agreement. Nevertheless the parties agree to cooperate to keep this
Agreement confidential.
23.2 Except as may be reasonably required for the normal operation,
maintenance, overhaul and repair of the Aircraft, each party shall
hold confidential all technical data and information supplied by or on
behalf of the other party. Buyer shall not reproduce any technical
data or information or divulge the same to any third party without
obtaining a confidentiality agreement in favor of and acceptable to
Bombardier.
23.3 Either party may announce the signing of this Agreement by means of a
notice to the press provided that the content and date of the notice
has been agreed to by the other party.
23.4 It is understood by the parties that this Agreement is required to be
filed as an exhibit to a registration statement under the Securities
Act of 1933, as amended (the "Securities Act"), or a periodic report
under the Securities Exchange Act of 1934, as amended ("Exchange
Act"). Buyer shall notify Bombardier, by written notice, at
[CONFIDENTIAL TREATMENT REQUESTED] prior to the date of such anticipated
filing of such determination and the reasons therefor, and shall use
its best efforts to work with Bombardier to prepare and file with the
Securities and Exchange Commission (the "Commission") a request for
confidential treatment pursuant to Rule 24b-2 under the Exchange Act
or Rule 406 under the Securities Act, as the case may be, with respect
to information in this Agreement, and such other information as
Bombardier may reasonably request.
Subject to compliance with the foregoing, and notwithstanding the
other provisions of this Article, portions of this Agreement or a
Supplement hereto may be filed as exhibits to such registration
statement or periodic report to the extent required by the Commission
and such filing shall not constitute a breach hereof by Buyer. This
provision shall survive until the latter of (i) the complete
performance by ▇▇▇▇▇ of its obligation hereunder or (ii) [CONFIDENTIAL
TREATMENT REQUESTED] from the date hereof.
ARTICLE 24 - AGREEMENT
24.1 This Agreement including any Supplements pursuant hereto, as same may
be amended from time to time, and the matters referred to herein
constitute the entire Agreement between Bombardier and Buyer with
respect to the Bombardier products governed by the applicable
Supplements and supersede and cancel all prior representations,
brochures, alleged warranties, statements, negotiations, undertakings,
letters, memoranda of agreement, proposals, acceptances, agreements,
understandings, contracts and communications, whether oral or written,
between Bombardier and Buyer or their respective agents, with respect
to or in connection with the subject matter of this Agreement and the
applicable Supplement and no agreement or understanding varying the
terms and conditions hereof shall be binding on either Bombardier or
Buyer hereto unless an amendment to this Agreement or the applicable
Supplement is issued and duly signed by their respective authorized
representatives pursuant to the provisions of this Article hereof. In
the event of any inconsistencies between this Agreement and a
Supplement or the Appendices, Exhibits and Annexes or other documents
referred to herein, the provisions of the Supplement shall prevail.
24.2 If any of the provisions of this Agreement or a Supplement are for any
reason declared by judgment of a court of competent jurisdiction to be
unenforceable or ineffective, those provisions shall be deemed
severable from the other provisions of this Agreement/the Supplement
and the remainder of this Agreement/the Supplement shall remain in
full force and effect.
24.3 [CONFIDENTIAL TREATMENT REQUESTED].
24.4 Bombardier and Buyer confirm to each other they have each obtained the
required authorizations and fulfilled any conditions applicable to
enable each of them to enter into this Agreement and any Supplement.
24.5 Buyer and Bombardier agree that this Agreement has been the subject of
discussion and negotiation and is fully understood by the parties
hereto and that the other mutual agreements of the parties set forth
herein were arrived at in consideration of the provisions contained in
this Agreement, taken as a whole, [CONFIDENTIAL TREATMENT REQUESTED].
In witness whereof this Agreement was signed on the date written hereof:
For and on behalf of For an on behalf of
HORIZON AIR INDUSTRIES, INC. BOMBARDIER INC.
Bombardier Aerospace
Original signed by ▇. ▇▇▇▇▇▇▇ Original signed by ▇. ▇▇▇▇▇▇▇▇▇
___________________________ _______________________________
▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇
Vice President and Treasurer. President
Regional Aircraft
Original signed by ▇. ▇▇▇▇▇▇▇▇▇
_______________________________
▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇
Vice President, Contracts
Regional Aircraft
SECTION II
OF
MASTER PURCHASE AGREEMENT NO. PA-436
AIRLINE SERVICES
ANNEX A
TECHNICAL SUPPORT, SPARE PARTS TRAINING AND TECHNICAL DATA
ANNEX B
WARRANTY AND SERVICE LIFE POLICY
ANNEX A
TECHNICAL SUPPORT, SPARE PARTS, TRAINING AND TECHNICAL DATA
The following Airline Services are those services to which reference is
made in Article 3 of the Agreement.
ARTICLE 1 - TECHNICAL SUPPORT
1.1 Factory Service
Bombardier agrees to maintain or cause to be maintained the capability
to respond to ▇▇▇▇▇'s technical inquiries, to conduct investigations
concerning repetitive maintenance problems and to issue findings and
recommend action thereon. This service shall be provided for as [CONFIDENTIAL
TREATMENT REQUESTED].
1.2 Field Service Representative
1.2.1 Services
Bombardier shall assign [CONFIDENTIAL TREATMENT REQUESTED] Field Service
Representative ("FSR") to Buyer's main base of operation or other
location and or such period as may be mutually agreed, all as
provided in the applicable Supplement.
1.2.2 Term
The FSR term is as set out in the applicable Supplement.
1.2.3 Responsibility
The FSR's responsibility shall be to provide technical advice to
Buyer for the line maintenance and operation of the Aircraft
systems and troubleshooting during scheduled and unscheduled
maintenance by Buyer's designated personnel ("FSR Services").
1.2.4 Travel
If requested by ▇▇▇▇▇, the FSR may, at ▇▇▇▇▇'s expense, travel to
another location to provide technical advice to Buyer.
1.2.5 Office Facilities
Buyer shall furnish the FSR, at no charge to Bombardier, suitable
and private office facilities and related equipment including
desk, file cabinet, access to two telephone lines, facsimile and
photocopy equipment conveniently located at Buyer's main base of
operation or other location as may be mutually agreed.
1.2.6 Additional Expenses
Buyer shall reimburse Bombardier (net of any additional taxes on
such reimbursement) the amount of any and all taxes (except
Canadian taxes on the income of the FSR) and fees of whatever
nature, including any customs duties, withholding taxes or fees
together with any penalties or interest thereon, except for
penalties or interest resulting from Bombardier's fault or
negligence, paid or incurred by Bombardier or the FSR or other
Bombardier employee as a result of or in connection with the
rendering of the services.
1.2.7 Right to Stop Work
Bombardier shall not be required to commence or continue the FSR
Services when:
(a) there is a labour dispute or work stoppage in progress at
Buyer's main maintenance facilities;
(b) there exist war, risk of war or warlike operations, riots or
insurrections which is likely to affect ▇▇▇▇▇'s facility;
(c) there exist conditions that are dangerous to the safety or
health of the FSR or other Bombardier employee; or
(d) the Government of the country where ▇▇▇▇▇'s facilities are
located or where Buyer desires the FSR to travel refuses the
Bombardier employees permission to enter said country or
Buyer's base of operations.
1.2.8 Work Permits and Clearances
Bombardier and Buyer shall cooperate to arrange for all necessary
work permits and airport security clearances required for the FSR
or other Bombardier employee to permit timely accomplishment of
the FSR services.
1.3 Maintenance Planning Support
1.3.1 Scheduled Maintenance Task Cards
As described in the applicable Supplement, Bombardier shall
provide Buyer Bombardier's standard format scheduled maintenance
task cards that shall conform to the Aircraft at the Delivery
Date. At Buyer's request Bombardier shall provide a proposal for
task cards produced to Buyer's format.
1.3.2 In-Service Maintenance Data
Buyer agrees to provide to Bombardier in-service maintenance data
in order to provide updates to Bombardier's recommended
maintenance program. Buyer and Bombardier shall agree on
standards and frequency for communication of such data.
1.4 Additional Services
At Buyer's request Bombardier shall provide a proposal to provide such
additional support services as the parties may agree upon, which may
include special investigations, maintenance and repair of the
Aircraft.
ARTICLE 2 - SPARE PARTS, GSE, TOOLS AND TEST EQUIPMENT
2.1.1 Definitions
a. "Bombardier Parts":
any spare parts, ground support equipment, tools and test
equipment which bear an in-house Cage Code number in the
Bombardier Provisioning Files (as that expression is defined in
ATA Specification 200).
b. "Power Plant Parts":
any power plant or power plant part or assembly carrying the
power plant manufacturer's part number or any part furnished by
the power plant manufacturer for incorporation on the Aircraft.
c. "Vendor Parts":
any spare parts, ground support equipment, tools and test
equipment for the Aircraft which are not Bombardier Parts or
Power Plant Parts.
d. "Spare Parts":
all materials, spare parts, assemblies, special tools and items
of equipment, including ground support equipment, ordered for the
Aircraft by Buyer from Bombardier. The term Spare Parts includes
Bombardier Parts, Power Plant Part and Vendor Parts.
e. "Order":
any order for Spare Parts issued by Buyer to Bombardier; and
f. "Technical Data":
shall have the meaning attributed to it in the applicable
Supplement.
2.1 Term and Applicability
The term of this Annex A Article 2 shall become effective on the date
hereof and shall remain in full force and effect with respect to the
purchase and sale of Spare Parts for each Aircraft so long as
[CONFIDENTIAL TREATMENT REQUESTED]. The provisions of Annex A Articles 2.2,
2.6.5, 2.24 and Annex B Article 5.0 shall survive expiration or
termination of this Agreement.
2.2 Order Terms
Terms and conditions hereof shall apply to all Orders placed by Buyer
with Bombardier in lieu of any terms and conditions in Buyer's
purchase orders.
2.3 Purchase and Sale of Spare Parts
2.3.1 Agreement to Manufacture and Sell
Bombardier shall manufacture, or procure, and make available for
sale to Buyer suitable Spare Parts in quantities sufficient to
meet the reasonably anticipated needs of Buyer for normal
maintenance and normal spares inventory replacement for each
Aircraft. During the term specified in Annex A Article 2.1
above, Bombardier shall also maintain a shelf stock of certain
Bombardier Parts selected by Bombardier to ensure reasonable re-
order lead times and emergency support. Bombardier shall
maintain a reasonable quantity of Bombardier insurance parts.
Insurance parts as used herein shall include, but not be limited
to, dispatch-essential parts such as major flight control
surfaces.
2.4 Agreement to Purchase Bombardier Parts
2.4.1 Purchase of Bombardier Parts
[CONFIDENTIAL TREATMENT REQUESTED]
.
2.4.2 Purchase of Bombardier Parts from Other Approved Sources
Buyer may obtain Bombardier Parts from any source provided that
such source is approved by Bombardier and provided that such
Bombardier Parts are for Buyer's use only.
2.4.3 Buyer's Right to Purchase, Redesign or Manufacture
Buyer's right to purchase, [CONFIDENTIAL TREATMENT REQUESTED] or to have
manufactured Bombardier Parts under the preceding Article shall not be
construed as a granting of a license by Bombardier and shall not
obligate Bombardier to disclose to anyone Technical Data or other
information nor to the payment of any license fee or royalty or create
any obligation whatsoever to Bombardier and Bombardier shall be
relieved of any obligation or liability with respect to patent
infringement in connection with any such [CONFIDENTIAL TREATMENT REQUESTED].
Buyer shall be responsible for obtaining all regulatory authority
approvals required by Buyer to repair the Aircraft using[CONFIDENTIAL
TREATMENT REQUESTED].
.
2.4.4 Notice to Bombardier of Redesigned Parts
[CONFIDENTIAL TREATMENT REQUESTED].
2.5 Purchase of Vendor Parts & Power Plant Parts
Bombardier shall not be obligated to maintain a stock of Vendor Parts
or Power Plant Parts. Bombardier may elect to maintain a spares stock
of selected Vendor Parts at its own discretion to support provisioning
and replenishment sales. Bombardier agrees to use reasonable efforts
to require its vendors to comply with the terms and conditions of this
Annex A Article 2 as they apply to Vendor Parts. Vendor Parts shall
be delivered in accordance with the vendor's quoted lead time plus
Bombardier's internal processing time.
2.6 Spare Parts Pricing
2.6.1 Spare Parts Price Catalogue
Prices for commonly used Bombardier Parts stocked by Bombardier
shall be published in the spare parts price catalogue ("Spare
Parts Price Catalogue"). [CONFIDENTIAL TREATMENT REQUESTED].
2.6.2 Bombardier Prices for Vendor Parts
If Buyer orders Vendor Parts from Bombardier, the price shall be
as published in the Spare Parts Price Catalogue.
2.6.3 Quotations
Price and delivery quotations for items not included in the Spare
Parts Price Catalogue shall be provided at Buyer's request by
Bombardier. [CONFIDENTIAL TREATMENT REQUESTED]
.
2.6.4 Price Applicability
The purchase price of Bombardier Parts shall be the applicable
price set forth in the Spare Parts Price Catalogue at time of
receipt by Bombardier of Buyer's Order or as quoted by Bombardier
to Buyer upon request. If Buyer requests accelerated delivery or
special handling for Bombardier Parts not included in the Spare
Parts Price Catalogue, Bombardier may increase the price from the
original quotation to cover any additional costs to Bombardier.
2.6.5 Currency and Taxes
All Spare Parts Price Catalogue and quotation prices shall be in
U.S. dollars and exclusive of transportation, taxes, duties and
licenses.
[CONFIDENTIAL TREATMENT REQUESTED]
The parties hereto agree, subject to applicable laws, to work
together to minimize the imposition of taxes and fees herein. In
addition, Buyer shall pay to Bombardier on demand the amount of
any customs duties required to be paid by Bombardier with respect
to the importation by Buyer of any Spare Parts.
2.6.6 Vendor Pricing
Bombardier shall use reasonable efforts to require its major
vendors to maintain any published price for their parts for a
period of at [CONFIDENTIAL TREATMENT REQUESTED]
with a [CONFIDENTIAL TREATMENT REQUESTED] notice period prior to changing
a published price.
2.7 Provisioning
2.7.1 Pre-provisioning/Provisioning Conference
Pre-provisioning and provisioning conferences shall be convened
on dates to be mutually agreed between Buyer and Bombardier in
order to:
(a) discuss the operational parameters to be provided by Buyer
to Bombardier which Bombardier considers necessary for
preparing its quantity recommendations for initial
provisioning of Spare Parts to be purchased from Bombardier
or vendors ("Provisioning Items");
(b) review Buyer's ground support equipment and special tool
requirements for the Aircraft;
(c) discuss the format of the provisioning documentation to be
provided to Buyer from Bombardier for the selection of
Provisioning Items; and
(d) arrive at a schedule of events for the initial provisioning
process, including the establishment of a date for the
initial provisioning conference ("Initial Provisioning
Conference") which shall be scheduled where possible at
least [CONFIDENTIAL TREATMENT REQUESTED] prior to delivery of the
first Aircraft under an applicable Supplement.
The time and location of the pre-provisioning conference shall be
mutually agreed upon between the parties; however, Bombardier and
Buyer shall use their best efforts to convene such meeting within
[CONFIDENTIAL TREATMENT REQUESTED] after execution of the applicable
Supplement.
2.8 Initial Provisioning Documentation
Initial provisioning documentation for Bombardier Parts and Vendor
Parts shall be provided by Bombardier as follows:
(a) Bombardier shall provide, as applicable to Buyer, no later than
[CONFIDENTIAL TREATMENT REQUESTED]prior to the Scheduled Delivery Date of
the first Aircraft under the applicable Supplement or as may be
mutually agreed, the initial issue of provisioning files as
required by ATA Specification 200, Chapter 1 (as may be amended
by Bombardier);
Revisions to this provisioning data shall be issued by Bombardier
[CONFIDENTIAL TREATMENT REQUESTED] following the Delivery Date of the
last Aircraft under the applicable Supplement or as may be
mutually agreed;
(b) Bombardier shall provide, as required by Buyer, all data files
defined in Chapter 1 of ATA Specification 200; and
(c) the Illustrated Parts Catalogue designed to support provisioning
shall be issued concurrently with provisioning data files and
revised at [CONFIDENTIAL TREATMENT REQUESTED].
.
2.8.1 Obligation to Substitute Obsolete Spare Parts
In the event that, prior to delivery of the first Aircraft under
an applicable Supplement, any Spare Part purchased by Buyer from
Bombardier is rendered obsolete or unusable due to the redesign
of the Aircraft or of any accessory, equipment or part thereto
(other than a redesign at Buyer's request), Bombardier shall
deliver to Buyer new and usable Spare Parts in substitution for
such obsolete or unusable Spare Parts upon return of such Spare
Parts to Bombardier by Buyer. Bombardier shall credit Buyer's
account with Bombardier with the price paid by Buyer for any such
obsolete or unusable Spare Part and shall invoice Buyer for the
purchase price of any such substitute Spare Part delivered to
Buyer.
2.8.2 Delivery of Obsolete Spare Parts and Substitutes
Obsolete or unusable Spare Parts returned by Buyer pursuant to
Annex A Article 2.8.1. shall be delivered to Bombardier at its
plant in Ontario or Quebec, or such other destination as
Bombardier may reasonably designate. Spare Parts substituted for
such returned obsolete or unusable Spare Parts shall be delivered
to Buyer from Bombardier's plant in Ontario or Quebec, or such
other Bombardier shipping point as Bombardier may reasonably
designate. Bombardier shall pay the freight charges for the
shipment from Buyer to Bombardier of any such obsolete or
unusable Spare Part and for the shipment from Bombardier to Buyer
of any such substitute Spare Part.
2.8.3 Obligation to Repurchase Surplus Provisioning Items
During a period commencing [CONFIDENTIAL TREATMENT REQUESTED] after the
Delivery Date of the first Aircraft under an applicable
Supplement, and ending [CONFIDENTIAL TREATMENT REQUESTED] after such
Delivery Date, Bombardier shall, upon receipt of Buyer's written
request and subject to the exceptions in Annex A Article 2.8.4,
repurchase unused and undamaged Provisioning Items which: (i)
were recommended by Bombardier as initial provisioning for the
Aircraft, (ii) were purchased by Buyer from Bombardier, and (iii)
are surplus to ▇▇▇▇▇'s needs.
2.8.4 Exceptions
Bombardier shall not be obligated under Annex A Article 2.8.3 to
repurchase any of the following: (i) quantities of Provisioning
Items in excess of those quantities recommended by Bombardier in
its Recommended Spare Parts List ("RSPL") for the Aircraft, (ii)
Power Plant Parts, QEC Kits, standard hardware, bulk and raw
materials, ground support equipment and special tools, (iii)
Provisioning Items which have become obsolete or have been
replaced by other Provisioning Items as a result of (a) Buyer's
modification of the Aircraft or (b) design improvement by the
Aircraft manufacturer or the vendor (other than Provisioning
Items which have become obsolete because of a defect in design if
such defect has not been remedied by an offer by Bombardier or
the vendor to provide no charge retrofit kits or replacement
parts which correct such defect), and (iv) Provisioning Items
which become surplus as a result of a change in Buyer's operating
parameters provided to Bombardier pursuant to Annex A Article
2.7, which were the basis of Bombardier's initial provisioning
recommendations for the Aircraft.
2.8.5 Notification and Format
Buyer shall notify Bombardier, in writing, when ▇▇▇▇▇ desires to
return Provisioning Items which ▇▇▇▇▇'s review indicates are
eligible for repurchase by Bombardier under the provisions of
Annex A Article 2.8.3. Buyer's notification shall include a
detailed summary, in part number sequence, of the Provisioning
Items Buyer desires to return. Such summary shall be in the form
of listings as may be mutually agreed between Bombardier and
Buyer, and shall include part number, nomenclature, purchase
order number, purchase order date and quantity to be returned.
Within [CONFIDENTIAL TREATMENT REQUESTED] after receipt of Buyer's
notification Bombardier shall advise Buyer, in writing, when
Bombardier's review of such summary from Buyer will be completed.
2.8.6 Review and Acceptance by Bombardier
Upon completion of Bombardier's review of any detailed summary
submitted by Buyer pursuant to Annex A Article 2.8.5., Bombardier
shall issue to Buyer a Material Return Authorization notice
("MRA") for those Provisioning Items Bombardier agrees are
eligible for repurchase in accordance with Annex A Article 2.8.3.
Bombardier will advise Buyer of the reason that any Provisioning
Items included in ▇▇▇▇▇'s detailed summary are not eligible for
return. The MRA notice shall state the date by which
Provisioning Items listed in the MRA notice must be redelivered
to Bombardier and Buyer shall arrange for shipment of such
Provisioning Items accordingly.
2.8.7 Price and Payment
The price of each Provisioning Item repurchased by Bombardier
pursuant to Annex A Article 2.8.6[CONFIDENTIAL TREATMENT REQUESTED].
.
2.8.8 Return of Surplus Provisioning Items
Provisioning Items repurchased by Bombardier pursuant to Annex A
Article 2.8.6 shall be delivered to Bombardier Free Carrier
(Incoterms), at its plant in Ontario or Quebec, or other such
destination as Bombardier may reasonably designate.
2.8.9 Obsolete Spare Parts and Surplus Provisioning Items - Title
and Risk of Loss
Title to and risk of loss of any obsolete or unusable Spare Parts
returned to Bombardier pursuant to Annex A Article 2.8.8 shall
pass to Bombardier upon delivery thereof to Bombardier. Title to
and risk of loss of any Spare Parts substituted for an obsolete
or unusable Spare Part pursuant to Annex A Article 2.8.1 shall
pass to Buyer upon delivery thereof to Buyer. Title to and risk
of loss of any Provisioning Items repurchased by Bombardier
pursuant to Annex A Article 2.8.3 shall pass to Bombardier upon
delivery thereof to Bombardier.
With respect to the obsolete or unusable Spare Parts which may be
returned to Bombardier and the Spare Parts substituted therefor,
pursuant to Annex A Article 2.8.1, and the Provisioning Items
which may be repurchased by Bombardier, pursuant to Annex A
Article 2.8.3, the party which has the risk of loss of any such
Spare Part or Provisioning Item shall have the responsibility of
providing any insurance coverage thereon desired by such party.
2.9 Procedure for Ordering Spare Parts
Orders for Spare Parts may be placed by Buyer to Bombardier by any
method of order placement (including but not limited to SITA, ARINC,
telecopier, letter, telex, facsimile, telephone or hard copy purchase
order).
2.9.1 Requirements
Orders shall include at a minimum order number, part number,
nomenclature, quantity, delivery schedule requested, shipping
instructions and Bombardier's price, if available. ▇▇▇▇▇ agrees
that orders placed with Bombardier shall conform to the
requirements and procedures contained in ATA Specification 200,
as applicable to Buyer.
2.9.2 Processing of Orders
Upon acceptance of any Order, unless otherwise directed by ▇▇▇▇▇,
Bombardier shall, if the Spare Parts are in stock, proceed
immediately to prepare the Spare Parts for shipment to Buyer. If
Bombardier does not have the Spare Parts in stock, Bombardier
shall proceed immediately to acquire or manufacture the Spare
Parts. Purchase order status and actions related to the shipment
of Spare Parts shall be generally consistent with the provisions
of the World Airline Suppliers Guide and the applicable portions
of ATA Specification 200, as applicable to Buyer.
2.9.3 Changes
Bombardier reserves the right, without Buyer's consent, to make
any necessary corrections or changes in the design, part number
and nomenclature of Spare Parts covered by an Order, to
substitute Spare Parts and to adjust prices accordingly, provided
that interchangeability is not affected and the[CONFIDENTIAL TREATMENT
REQUESTED], whichever is less. Bombardier shall promptly give
Buyer written notice of corrections, changes, substitutions and
consequent price adjustments. Corrections, changes,
substitutions and price adjustments which affect
interchangeability or exceed the price limitations set forth
above may be made only with Buyer's consent, which consent shall
conclusively be deemed to have been given unless Buyer gives
Bombardier written notice of objection within [CONFIDENTIAL TREATMENT
REQUESTED]days after receipt of Bombardier's notice. In case of
any objection, the affected Spare Part will be deemed to be
deleted from Buyer's Order and Buyer shall have the right to
manufacture or purchase elsewhere such spare part.
2.9.4 Electronic Data Interchange
2.9.4.1 Use of Electronic Data Interchange (EDI)
Bombardier is not currently using EDI, however, if and
when Bombardier has the capability and equipment to
utilize EDI Bombardier will offer EDI transactions in
accordance to the parameters set forth below.
The SPEC 200 Protocol shall be used for any EDI
transaction. Buyer and Bombardier shall implement security
procedures to ensure proper use of this communication. A
message will be considered received only at the point
where it is in a format which can be accepted by the
receiving computer according to ATA SPEC 200 rules on
transmissions. If garbled transmissions are received, the
receiver shall promptly notify the sender through use of
the S1REJECT command.
2.9.4.2 Acceptance of EDI Transactions
The SIBOOKED transaction creates an obligation on the part
of Buyer to purchase the material and quantities as
specified in the transmission. Bombardier is obliged to
sell the material and quantities as specified except as
may be identified in a subsequent SIORDEXC message. With
respect to a S1QUOTES transaction, Buyer and Bombardier
are bound to respect the prices quoted in the transmission
in any resultant S1BOOKED order transaction based upon
that S1QUOTES message within the validity period of the
S1QUOTES message. An S1NVOICE message will be considered
as the official commercial invoice for the goods shipped.
An S1STOCKS, S1SHIPPD, S1POSTAT or S1PNSTAT message
creates no obligations on either the Buyer or Bombardier.
If an S1BOOKED acknowledgment is not sent within 24 hours
by Bombardier then Buyer shall resend the original
message.
Any document which has been properly received shall not
give rise to any obligation unless and until the party
receiving such document has properly transmitted in return
an acknowledgment document according to SPEC 200 Protocol.
2.9.4.3 Systems Operations
Buyer and Bombardier, at their own expense, shall provide
and maintain the equipment, software, services and testing
necessary to effectively and reliably transmit and receive
documents.
2.9.4.4 Validity of Documents
Annex A Article 2.9.4 has been agreed to by ▇▇▇▇▇ and
Bombardier to evidence their mutual intent to create
binding purchase and sale obligations pursuant to the
electronic transmission and receipt of documents as
described herein.
Such documents properly transmitted pursuant to this Annex
A Article 2.9.4 shall be considered, in connection with
any transaction or any other agreement, to be a "writing"
or "in writing" and shall be deemed for all purposes (a)
to have been "signed" and (b) to constitute an "original"
when printed from electronic files or records established
and maintained in the normal course of business.
Buyer and Bombardier agree not to contest the validity or
enforceability of signed documents under the provisions of
any applicable law relating to whether certain agreements
are to be in writing or signed by either party to be bound
thereby. Signed documents, if introduced as evidence on
paper in any judicial, arbitration, mediation or
administrative proceedings, will be admissible as between
Buyer and Bombardier to the same extent and under the same
conditions as other business records originated and
maintained in documentary form. Neither Buyer nor
Bombardier shall contest the admissibility of copies of
signed documents under either the business records
exception to the hearsay rule or the best evidence rule on
the basis that the signed documents were not originated or
maintained in documentary form.
2.9.4.5 Limitation of Liability
[CONFIDENTIAL TREATMENT REQUESTED].
2.10 Packing
All Spare Parts ordered shall receive standard commercial packing
suitable for export shipment via air freight. Such standard packing
will generally be to ATA 300 standards as amended from time to time.
All AOG orders will be handled, processed, packed and shipped
separately.
2.11 Packing List
Bombardier shall insert in each shipment a packing list/release note
itemized to show:
(a) the contents of the shipment,
(b) the approved signature of Bombardier's TC authority attesting to
the airworthiness of the Spare Parts.
(c) value of the shipment for customs clearance if required.
2.12 Container Marks
Upon Buyer's request each container shall be marked with shipping
marks as specified on the Order. In addition Bombardier shall, upon
request, include in the markings: gross weight and cubic
measurements.
2.13 Delivery, Title and Risk of Loss
2.13.1 Delivery Point
Spare Parts shall be delivered to Buyer in one of the following
manners at Bombardier's sole option:
(a) Free Carrier (Incoterms 1990) Bombardier's plant in either
Ontario or Quebec, Canada; or
(b) Free Carrier (Incoterms 1990) other Bombardier depots or
shipping points; or
(c) Free Carrier (Incoterms 1990) vendor's or subcontractor's
plant.
2.13.2 Delivery Time
Bombardier shall use reasonable efforts so that shipment of
Bombardier Parts to Buyer be as follows:
(a) AOG Orders
[CONFIDENTIAL TREATMENT REQUESTED];
(b) Critical Orders (A1)
[CONFIDENTIAL TREATMENT REQUESTED];
(c) Expedite Orders (A2)
[CONFIDENTIAL TREATMENT REQUESTED];
(d) Initial Provisioning Orders
[CONFIDENTIAL TREATMENT REQUESTED]; and
(e) Other Orders
[CONFIDENTIAL TREATMENT REQUESTED].
2.14 Collect Shipments
Where collect shipments are not deemed practicable by Bombardier,
charges for shipment, insurance, prepaid freight charges and all other
costs paid by Bombardier shall be paid by Buyer promptly upon
presentation to Buyer of invoices covering the same.
2.15 Freight Forwarder
If Buyer elects to use the services of a freight forwarder for the
onward movement of Spare Parts, ▇▇▇▇▇ agrees to release Bombardier
from and indemnify it for any liability for any fines or seizures of
Spare Parts imposed under any governmental Goods in Transit
regulations. Any such fines levied against Bombardier will be
invoiced to Buyer and any Spare Parts seized under such regulations
will be deemed to be received, inspected, and accepted by Buyer at the
time of seizure.
2.16 Reimbursement of Expenses
If Bombardier gives Buyer written notice that an Order is ready for
shipment and shipment is delayed more than [CONFIDENTIAL TREATMENT REQUESTED]
at Buyer's request or without Bombardier's fault or responsibility,
Buyer shall promptly reimburse Bombardier upon demand for all costs
and expenses, including but not limited to reasonable amounts for
storage, handling, insurance and taxes, incurred by Bombardier as a
result of such delay.
2.17 Title and Risk of Loss
Property and title to the Spare Parts will pass to Buyer upon payment
for the Spare Parts in full. Until payment in full for Spare Parts,
(a) title to them will not pass to Buyer, and (b) Bombardier maintains
a purchase money security interest in them. Risk of loss of the Spare
Parts will pass to the Buyer upon delivery by Bombardier. With
respect to Spare Parts rejected by Buyer pursuant to Annex A Article
2.19, risk of loss shall remain with Buyer until such Spare Parts are
re-delivered to Bombardier.
Bombardier agrees to notify Buyer when material is shipped and shall
provide carrier's reference information (i.e., waybill number).
2.18 Inspection and Acceptance
All Spare Parts shall be subject to inspection by Buyer at
destination. Use of Spare Parts or failure of Buyer to give notice of
rejection [CONFIDENTIAL TREATMENT REQUESTED] after receipt shall constitute
acceptance. Acceptance shall be final and Buyer waives the right to
revoke acceptance for any reason, whether or not known to Buyer at the
time of acceptance. ▇▇▇▇▇'s remedies for defects discovered before
acceptance are exclusively provided for in Annex A Article 2.19
herein.
2.19 Rejection
Any notice of rejection referred to in Annex A Article 2.18 shall
specify the reasons for rejection. If Bombardier concurs with a
rejection, Bombardier shall, at its option, correct, repair or replace
the rejected Spare Parts. Buyer shall, upon receipt of Bombardier's
written instructions and Material Return Authorization ("MRA") number,
return the rejected Spare Parts to Bombardier at its specified plant,
or other destination as may be mutually agreeable. The return of the
rejected Spare Parts to Bombardier and the return or delivery of a
corrected or repaired rejected Spare Part or any replacement for any
such Spare Part to Buyer shall be at Bombardier's expense. Any
corrected, repaired or replacement Spare Parts shall be subject to the
provisions of this Agreement including any applicable Supplement.
2.20 Payment
Except as provided in Annex A Article 2.22 below, payment terms shall
be net thirty (30) calendar days of invoice date for established open
accounts. [CONFIDENTIAL TREATMENT REQUESTED].
2.21 Payment for Provisioning Items
Payment for Provisioning Items shall be made by Buyer as follows:
(a) [CONFIDENTIAL TREATMENT REQUESTED]; and
(b) [CONFIDENTIAL TREATMENT REQUESTED]
2.22 Modified Terms of Payment
Bombardier reserves the right to alter the terms of a payment without
prior notice if Buyer fails to pay when due a material, undisputed
amount Buyer owes under any agreement with Bombardier.
2.23 Regulations
Buyer shall comply with all applicable monetary and exchange control
regulations and shall obtain any necessary authority from the
governmental agencies administering such regulations to enable Buyer
to make payments at the time and place and in the manner specified
herein.
2.24 Warranty
[CONFIDENTIAL TREATMENT REQUESTED].
2.25 Cancellation of Orders
[CONFIDENTIAL TREATMENT REQUESTED].
2.26 Lease
Bombardier shall select and make available certain parts for lease,
subject to availability Buyer has the option to negotiate a lease
agreement with Bombardier separate from this Agreement and the
applicable Supplement.
2.27 Additional Terms and Conditions
Bombardier's conditions of sale are deemed to incorporate the terms
and conditions stated herein and within an applicable Supplement.
Additional terms and conditions applicable at time of receipt of each
order from Buyer may be added providing such terms and conditions do
not conflict with the terms and conditions provided herein and within
an applicable Supplement. Such additional terms and conditions shall
be provided to Buyer at [CONFIDENTIAL TREATMENT REQUESTED] prior to their
effective date.
ARTICLE 3 - TRAINING
3.1 General Terms
3.1.1 The objective of the training programs (the "Programs")
described in this Agreement and the applicable Supplement is to
familiarize and assist ▇▇▇▇▇'s personnel in the introduction,
operation, and maintenance of the Aircraft.
3.1.2 Bombardier shall offer the Programs to Buyer in the English
language, at a Bombardier designated facility. The Programs
shall be completed prior to the Delivery Date of the last
Aircraft purchased under the applicable Supplement.
3.1.3 Buyer shall be responsible for all travel and living
expenses (including local transportation) of Buyer's personnel
incurred in connection with the Programs.
3.1.4 The Programs shall be designed to reflect the model and/or
configuration of the Aircraft and may include differences
training to identify such configuration or model. Manuals or
other training material which are provided during the Programs
exclude revision service.
3.1.5 The Programs are designed for candidates who meet the
following minimum prerequisites:
(a) Pilots
[CONFIDENTIAL TREATMENT REQUESTED]
(b) Flight Attendants
[CONFIDENTIAL TREATMENT REQUESTED]
(c) Flight Dispatchers
[CONFIDENTIAL TREATMENT REQUESTED]
(d) Maintenance Technicians
[CONFIDENTIAL TREATMENT REQUESTED]
3.1.6 Prior to commencement of the Programs, upgrade training can
be arranged for ▇▇▇▇▇'s personnel who do not meet the above
minimum requirements. Any such upgrade training shall be
provided upon terms and conditions to be mutually agreed.
3.1.7 Should any of Buyer's personnel who do not meet the above
minimum requirements encounter problems during their training,
any additional training or costs (such as costs for interpreters)
shall be borne by Buyer.
3.1.8 A training conference shall be held, if practicable,
[CONFIDENTIAL TREATMENT REQUESTED]prior to the Scheduled Delivery Date of
the first Aircraft under the applicable Supplement to Buyer, or
as may be otherwise agreed, to establish the content and schedule
of the Programs.
3.1.9 Buyer may convert any of the Programs to any other of the
Programs for equivalent value.
3.2 Flight Crew Training
3.2.1 Training Allotments and Course Descriptions
Flight crew training allotments and course descriptions are set
out in the applicable Supplement.
3.2.2 Recurrent Training
At Buyer's request, Bombardier shall assist Buyer to obtain
recurrent training as set forth in the applicable Supplement
3.3 Maintenance Training
3.3.1 Training Allotments and Course Descriptions
Maintenance training allotments and course descriptions are set
out in the applicable Supplement.
3.3.2 Specialist Courses
At Buyer's request, Bombardier shall assist Buyer to obtain
specialist courses as set forth in the applicable Supplement.
3.3.3 Recurrent Training
At Buyer's request, Bombardier shall assist Buyer to obtain
recurrent training as set forth in the applicable Supplement.
3.3.4 Vendor Training
At Buyer's request, Bombardier shall assist Buyer to obtain
vendor maintenance training.
3.4 Insurance
3.4.1 [CONFIDENTIAL TREATMENT REQUESTED]
3.4.2 [CONFIDENTIAL TREATMENT REQUESTED]
ARTICLE 4 - TECHNICAL DATA
4.1 Bombardier shall furnish to Buyer the Technical Data described below
(the "Technical Data"). The Technical Data shall be in the English
language and shall provide information on items manufactured according
to Bombardier's detailed design and in those units of measure used in
the Specification or as may otherwise be required to reflect Aircraft
instrumentation, as may be mutually agreed.
4.2 Shipment
All Technical Data provided hereunder shall be delivered to Buyer Free
Carrier (Incoterms) Bombardier's designated facilities and at the time
indicated above.
4.3 Proprietary Technical Data
It is understood and Buyer acknowledges that the Technical Data
provided herein and under an applicable Supplement and any revisions
thereto is proprietary to Bombardier and all rights to copyright
belong to Bombardier and the Technical Data shall be kept confidential
by Buyer. Buyer agrees to use the Technical Data solely to maintain,
operate, overhaul or repair the Aircraft or to make installation or
alteration thereto allowed by Bombardier. In addition, Buyer may
transfer the Technical Data to any party in connection with the sale
or lease of an Aircraft from Buyer provided Buyer obtains a
confidentiality agreement with such purchaser or lessee in favour of
and acceptable to Bombardier.
4.4 Technical Data shall not be disclosed to third parties or used by
Buyer or furnished by Buyer for the design or manufacture of any
aircraft or Spare Parts including Bombardier Parts or items of
equipment, except when manufacture or redesign is permitted under the
provisions of Annex A Article 2.4 hereof and then only to the extent
and for the purposes expressly permitted therein, and provided further
the recipient shall provide a non-disclosure undertaking acceptable to
Bombardier.
4.5 The Technical Data provisions are set forth in the applicable
Supplement.
ARTICLE 5 - HOLD HARMLESS
5.1 [CONFIDENTIAL TREATMENT REQUESTED].
5.2 [CONFIDENTIAL TREATMENT REQUESTED].
ANNEX B
WARRANTY AND SERVICE LIFE POLICY
ARTICLE 1 - WARRANTY
The following warranty is that to which reference is made in Article 3 of
Section I of the Agreement.
1.1 Warranty
1.1.1 [CONFIDENTIAL TREATMENT REQUESTED]
1.1.2 [CONFIDENTIAL TREATMENT REQUESTED]
1.1.3 [CONFIDENTIAL TREATMENT REQUESTED].
1.2 Warranty Period
1.2.1 The Warranty set forth in Annex B Article 1.1 shall remain
in effect for any defect covered by the Warranty (a "Defect")
becoming apparent during the following periods (individually, the
"Warranty Period"):
[CONFIDENTIAL TREATMENT REQUESTED]
1.3 Repair, Replacement or Rework
[CONFIDENTIAL TREATMENT REQUESTED]
1.4 Claims Information
Bombardier's obligations hereunder are subject to a Warranty claim to
be submitted in writing to Bombardier's warranty administrator, which
claim shall include but not be limited to the following information:
(a) the identity of the part or item involved, including the Part
number, serial number if applicable, nomenclature and the
quantity claimed to be defective;
(b) the manufacturer's serial number of the Aircraft from which the
part was removed;
(c) the date the claimed Defect became apparent to ▇▇▇▇▇;
(d) the total flight hours (and cycles if applicable) accrued on the
part at the time the claimed Defect became apparent to Buyer; and
(e) a description of the claimed Defect and the circumstances
pertaining thereto.
1.5 Bombardier's Approval
[CONFIDENTIAL TREATMENT REQUESTED]
.
1.6 Timely Corrections
1.6.1 Bombardier shall make the repair, replacement or rework,
following receipt of the defective part or item, with reasonable
care and dispatch.
1.6.2 [CONFIDENTIAL TREATMENT REQUESTED]
1.7 Labour Reimbursement
[CONFIDENTIAL TREATMENT REQUESTED]
.
1.8 Approval, Audit, Transportation and Waiver
All Warranty claims shall be subject to audit and approval by
Bombardier. Bombardier will use reasonable efforts to advise in
writing the disposition of ▇▇▇▇▇'s Warranty claim [CONFIDENTIAL TREATMENT
REQUESTED] following the receipt of the claim and (if requested) return
of the defective Bombardier Part to Bombardier's designated facility.
Bombardier shall notify Buyer of Bombardier's disposition of each
claim.
[CONFIDENTIAL TREATMENT REQUESTED].
1.9 Limitations
1.9.1 Bombardier shall be relieved of and shall have no obligation
or liability under this Warranty if:
[CONFIDENTIAL TREATMENT REQUESTED].
1.9.2 The above warranties do not apply to Buyer Furnished
Equipment.
1.10 Normal Usage
Normal wear and tear that does not render the part unserviceable and
the need for regular maintenance and overhaul shall not constitute a
Defect or failure under this Warranty.
1.11 Overhaul of Warranty Parts
Bombardier's liability for a Bombardier Part which has a Defect and is
overhauled by Buyer within the Warranty Period [CONFIDENTIAL TREATMENT
REQUESTED].
1.12 No Fault Found
In the event that a Bombardier Part returned under a Warranty claim is
subsequently established to be serviceable then Bombardier shall be
entitled to charge and recover from Buyer any reasonable costs
incurred by Bombardier in connection with such Warranty claim.
Providing, however, in the event that repetitive in-service failure
occurs on the particular Bombardier Part which is subsequently
identified by Bombardier on a repeated basis to be "no fault found",
then Bombardier and Buyer shall discuss and mutually agree a course of
further action to help identify the problem. In the event the fault
is ultimately confirmed to be a legitimate Warranty claim then the
above mentioned costs incurred by Bombardier and charged to Buyer
shall be waived.
ARTICLE 2 - VENDOR WARRANTIES
2.1 Warranties from Vendors
The Warranty provisions of this Annex B apply to Bombardier Parts
only. [CONFIDENTIAL TREATMENT REQUESTED] Bombardier shall have no liability or
responsibility for any such Vendor Parts and Power Plant Parts and the
warranties for those Vendor Parts and Power Plant Parts shall be the
responsibility of the vendor and a matter as between Buyer and vendor.
2.2 [CONFIDENTIAL TREATMENT REQUESTED].
2.3 [CONFIDENTIAL TREATMENT REQUESTED]
ARTICLE 3 - SERVICE LIFE POLICY
3.1 Applicability
The Service Life Policy ("SLP") described in this Annex B, Article 3
shall apply if repetitive failures occur in any Covered Component
which is defined in Annex B Article 3.7 below.
3.2 Term
[CONFIDENTIAL TREATMENT REQUESTED]
.
3.3 Price
[CONFIDENTIAL TREATMENT REQUESTED]
3.4 Conditions and Limitations
3.4.1 The following general conditions and limitations shall apply
to the SLP:
[CONFIDENTIAL TREATMENT REQUESTED].
3.5 Coverage
This SLP is neither a warranty, performance guarantee nor an agreement
to modify the Aircraft to conform to new developments in design and
manufacturing art. Bombardier's obligation is only to[CONFIDENTIAL
TREATMENT REQUESTED].
3.6 Assignment
Buyer's rights under this SLP shall not be assigned, sold, leased,
transferred or otherwise alienated by contract, operation of law or
otherwise, without Bombardier's prior written consent. Any
unauthorized assignment, sale, lease, transfer, or other alienation of
▇▇▇▇▇'s rights under the SLP shall immediately void all of
Bombardier's obligations under the SLP.
3.7 Covered Component
Only those items or part thereof listed in the applicable Supplement
shall be deemed to be a Covered Component, and subject to the
provisions of this SLP.
ARTICLE 4 - GENERAL
4.1 It is agreed that Bombardier shall not be obligated to provide to
Buyer any remedy which is a duplicate of any other remedy which has
been provided to Buyer under any other part of this Annex B.
ARTICLE 5 - DISCLAIMER
5.1 [CONFIDENTIAL TREATMENT REQUESTED]
EXHIBIT I TO THE AGREEMENT
CERTIFICATE OF ACCEPTANCE
The undersigned hereby acknowledges on behalf of Buyer acceptance of
the Aircraft bearing manufacturer's serial number ____________________
fitted with two (2) /General Electric CF-34-3A1/3B1/8C1 turbofan
[Canadair Regional Jet]/ ▇▇▇▇▇ & ▇▇▇▇▇▇▇ of Canada, Ltd. PWC-
120/121/123/150 turboprop [Dash 8]/ engines bearing serial numbers
_____________________ and __________________ /and two (2) (▇▇▇▇▇▇▇▇
Standard 14SF-/7/15/23/) (▇▇▇▇▇ R408) propellers bearing serial
numbers _____________________ and __________________ / as being in
accordance with the terms and conditions of this Agreement signed on
the day of , 19 between Bombardier Aerospace, Regional
Aircraft and Buyer.
Place: Date:
Signed for and on behalf of
Horizon Air Industries, Inc.
Per:
Title:
EXHIBIT II TO THE AGREEMENT
BILL OF SALE
1. FOR VALUABLE CONSIDERATION, BOMBARDIER AEROSPACE, REGIONAL AIRCRAFT,
OWNER OF THE FULL LEGAL AND BENEFICIAL TITLE OF THE AIRCRAFT DESCRIBED
AS FOLLOWS:
ONE CANADAIR REGIONAL JET MODEL /CL-600-2B19/CL-600-2C10/
[CANADAIR REGIONAL JET] DE HAVILLAND DHC-8-100/200/300/400/ [DASH
8] AIRCRAFT BEARING:
MANUFACTURER'S SERIAL NO.: _________________________, WITH:
CF34-3A1/3B1/8C1 [CANADAIR REGIONAL JET] / PWC -/120/121/123/150/
[DASH 8] ENGINES SERIAL NOS.:___________AND______________, AND
/▇▇▇▇▇▇▇▇ STANDARD 14SF-/7/15/23] [▇▇▇▇▇ R408 ] PROPELLERS
SERIAL NOS: MFG _____________________AND _______________;/
AUXILIARY POWER UNIT NO.: __________________________
DOES THIS DAY OF 20 HEREBY SELL, ▇▇▇▇▇,
TRANSFER AND DELIVER ALL RIGHT, TITLE AND INTEREST IN AND TO SUCH
AIRCRAFT UNTO: [BUYER'S NAME].
BY VIRTUE OF THE EXECUTION OF THIS BILL OF SALE, BOMBARDIER HEREBY
DIVESTS ITSELF OF ALL ITS RIGHT, TITLE AND INTEREST OF ANY KIND IN THE
AIRCRAFT, IN FAVOUR OF BUYER.
BUYER:
PLACE: TIME:
For and on behalf of
BOMBARDIER INC.
Bombardier Aerospace, Regional Aircraft
Per:
Title:
EXHIBIT III TO THE AGREEMENT
CERTIFICATE OF RECEIPT OF AIRCRAFT
THE UNDERSIGNED HEREBY ACKNOWLEDGES TO HAVE RECEIVED FROM BOMBARDIER
AEROSPACE, REGIONAL AIRCRAFT, AT/ THE DOWNSVIEW AIRPORT, ADJACENT TO
BOMBARDIER'S PLANT IN DOWNSVIEW, PROVINCE OF ONTARIO, CANADA [DASH 8]/
DORVAL AIRPORT, ADJACENT TO BOMBARDIER'S PLANT IN DORVAL, PROVINCE OF
QUEBEC, CANADA, [CANADAIR REGIONAL JET]/ ON THE _____________ DAY OF
______________ , AT THE HOUR OF _____________ O'CLOCK, ONE (1) / CANADAIR
REGIONAL JET MODEL /CL-600-2B19/CL-600-2C10/ SERIES 100/200/700/ de
HAVILLAND DHC-8-/100/200/300/400/ AIRCRAFT, BEARING SERIAL NUMBER
______________, INCLUDING WITH THE AIRCRAFT TWO (2) /CF34-3A1/3B1/8C1
TURBOFAN / PWC-/120/121/123/150 TURBOPROP / ENGINES BEARING MANUFACTURER'S
SERIAL NUMBERS _____________ & __________________ AND TWO (2) [▇▇▇▇▇▇▇▇
STANDARD 14SF-/7/15/23] [▇▇▇▇▇ R408 ] PROPELLERS BEARING MANUFACTURER'S
SERIAL NUMBERS _____________ & __________________ AND OTHER MAJOR
REPLACEABLE ACCESSORIES ATTACHED TO THE AIRCRAFT AND ENGINES.
Signed for and on behalf of
Horizon Air Industries, Inc.
Per:
Title:
EXHIBIT IV TO THE AGREEMENT
CHANGE ORDER
(PRO FORMA)
CONTRACT CHANGE ORDER
PURCHASER:
PURCHASE AGREEMENT NO.: AIRCRAFT TYPE:
C.C.O. NO.: DATED:
PAGE __ of __
REASON FOR CHANGE:
_____________________________________________________________________
DESCRIPTION OF CHANGE:
ALL OTHER TERMS AND CONDITIONS OF THE AGREEMENT WILL REMAIN UNCHANGED
For administrative purposes only, a consolidation of the amendments
contained in this CCO is attached. In the event of inconsistencies between
the consolidation and this CCO, this CCO shall prevail.
_____________________________________________________________________
FOR AND ON BEHALF OF: FOR AND ON BEHALF OF:
Bombardier Aerospace [BUYER]
Regional Aircraft
Signed: _______________________ Signed: __________________________
Date: _______________________ Date: __________________________
SUPPLEMENT NO. PA-436-1
TO
MASTER PURCHASE AGREEMENT NO. PA-436
BETWEEN
BOMBARDIER INC.
AND
HORIZON AIR INDUSTRIES, INC.
This Supplement when accepted and agreed to by Horizon Air Industries, Inc.
(the "Buyer") will become part of the Master Purchase Agreement No. PA-436
entered into between BOMBARDIER INC., a Canadian corporation represented by
Bombardier Aerospace, Regional Aircraft having offices at ▇▇▇ ▇▇▇▇▇▇▇
▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇, ▇▇▇▇▇▇ ("Bombardier") and Buyer dated the
21st day of December, 1998 (the "Agreement") and will evidence our further
agreement with respect to the matters set forth below.
The provisions of the Agreement shall apply to the Bombardier products
purchased and sold in accordance with this Supplement. All capitalized
terms herein, unless defined herein, shall have the same respective
meanings as in the Agreement. This Supplement is subject to the provisions
of the Agreement, all of which are incorporated herein, provided that in
the event of any inconsistency between the provision of the Agreement and
the provisions of this Supplement, the latter shall take precedence.
Article 1 below supplements Article 2 of the Agreement.
ARTICLE 1 SUBJECT MATTER OF SALE
1.1 Subject to the provisions of the Agreement and this Supplement,
Bombardier will sell and Buyer will purchase twenty-five (25) model
CL-600-2C10 Canadair Regional Jet Series 700 aircraft manufactured
pursuant to Type Specification number RAD-670-100 issue B dated
September 1998 attached hereto as Schedule 1 as same may be modified
from time to time in accordance with the Agreement and this
Supplement (the "Specification"), as supplemented to reflect the
incorporation of the Buyer selected optional features ("Buyer Selected
Optional Features") set forth in Schedule 2 hereto (individually or
collectively the "Aircraft").
Article 2 below supplements Article 4 of the Agreement.
ARTICLE 2.0 PRICE
2.1 (a) The base price for each of the Aircraft (excluding the Buyer
Selected Optional Features) [CONFIDENTIAL TREATMENT REQUESTED].
(b) The base price of the Buyer Selected Optional Features (Schedule
2) [CONFIDENTIAL TREATMENT REQUESTED].
(c) The Buyer Selected Optional Features set forth in Appendix IV
represents a preliminary listing of those Buyer Selected Optional
Features that may be required by Buyer. [CONFIDENTIAL TREATMENT
REQUESTED].
[CONFIDENTIAL TREATMENT REQUESTED].
2.2 [CONFIDENTIAL TREATMENT REQUESTED].
Articles 3.1 and 3.2 below supplement Article 5.1 of the Agreement.
Article 3.3 below supplement Article 5.4 of the Agreement.
ARTICLE 3.0 PAYMENT
3.1 Bombardier acknowledges having previously received a deposit in the
amount of [CONFIDENTIAL TREATMENT REQUESTED]. Such amount shall be applied
against the balance of the Aircraft Purchase Price due at the Delivery
Date for each Aircraft in accordance with the provisions of Article
3.2 below.
3.2 Terms of payment for each Aircraft are based on the estimated Aircraft
Purchase Price and are as follows:
[CONFIDENTIAL TREATMENT REQUESTED]; and
(f) the balance of the Aircraft Purchase Price, less the amounts
previously received referred to in Article 3.1 above, on or
before the Delivery Date of such Aircraft to Buyer.
All payments referred to in paragraphs (b) to (e) above are to be made
on the first day of the applicable month.
3.3 [CONFIDENTIAL TREATMENT REQUESTED].
3.4 Buyer shall make all payments due under this Agreement and for any
applicable Supplement in [CONFIDENTIAL TREATMENT REQUESTED] United States
Dollars by deposit on or before the due date, to Bombardier's account
in the following manner:
[CONFIDENTIAL TREATMENT REQUESTED].
Article 4.0 below supplements Article 6.0 of the Agreement.
ARTICLE 4.0 DELIVERY PROGRAM
4.1 The Aircraft shall be offered for inspection and acceptance to Buyer
at Bombardier's facility in Montreal, Quebec during the calendar
quarters for each year set forth below (the "Scheduled Delivery
Dates"). Bombardier shall advise Buyer of the scheduled month of
delivery of each Aircraft (which month Bombardier shall ensure will
fall within the applicable quarter listed below) eighteen (18) months
prior to such delivery such that the Aircraft are scheduled for
delivery evenly throughout the delivery schedule, but in any event no
less than thirty (30) days from the preceding delivery.
DELIVERY SCHEDULE
First Aircraft 2nd quarter 2002
Second Aircraft 2nd quarter 2002
Third Aircraft 3rd quarter 2002
Fourth Aircraft 4th quarter 2002
Fifth Aircraft 1st quarter 2003
Sixth Aircraft 2nd quarter 2003
Seventh Aircraft 2nd quarter 2003
Eighth Aircraft 3rd quarter 2003
Ninth Aircraft 3rd quarter 2003
Tenth Aircraft 4th quarter 2003
Eleventh Aircraft 4th quarter 2003
Twelfth Aircraft 1st quarter 2004
Thirteenth Aircraft 1st quarter 2004
Fourteenth Aircraft 2nd quarter 2004
Fifteenth Aircraft 2nd quarter 2004
Sixteenth Aircraft 3rd quarter 2004
Seventeenth Aircraft 3rd quarter 2004
Eighteenth Aircraft 4th quarter 2004
Nineteenth Aircraft 4th quarter 2004
Twentieth Aircraft 1st quarter 2005
Twenty-First Aircraft 1st quarter 2005
Twenty-Second Aircraft 2nd quarter 2005
Twenty-Third Aircraft 2nd quarter 2005
Twenty-Fourth Aircraft 3rd quarter 2005
Twenty-Fifth Aircraft 3rd quarter 2005
Article 5.0 below supplements Article 7.0 of the Agreement.
ARTICLE 5.0 BUYER INFORMATION
5.1 Pursuant to Article 7.1 of the Agreement, Buyer will, provide the
information set forth in Article 7.1 of the Agreement [CONFIDENTIAL
TREATMENT REQUESTED] .
ARTICLE 6.0 NON-EXCUSABLE DELAY
Article 6.1 below supplements Article 14.1 of the Agreement.
6.1 If delivery of the Aircraft is delayed by causes not excused under
Article 13.1 of the Agreement (a "Non-Excusable Delay"), [CONFIDENTIAL
TREATMENT REQUESTED].
Article 6.2 below supplements Article 14.3 of the Agreement.
6.2 The period of days referred to in Article 14.3 of the Agreement is
[CONFIDENTIAL TREATMENT REQUESTED].
Article 7.0 below supplements Annex A, Article 1.0 of the Agreement.
ARTICLE 7.0 TECHNICAL SUPPORT
7.1 The FSR term referred to in Annex A, Article 1.2.2 is as follows:
Such assignment shall span the Delivery Schedule set forth in Article
4.0 of this Supplement, commencing approximately [CONFIDENTIAL TREATMENT
REQUESTED] prior to the Delivery Date of the first Aircraft and
[CONFIDENTIAL TREATMENT REQUESTED] thereafter or until one month after the
last Aircraft delivery which ever is later. The FSR term will not be
extended if the Scheduled Delivery Dates are amended as a result of
▇▇▇▇▇'s request to postpone deliveries. The FSR assignment may be
extended on terms and conditions to be mutually agreed.
7.2 Start-up Operations Management Team
[CONFIDENTIAL TREATMENT REQUESTED]
Article 8.0 below supplements Annex A, Article 3.2 and 3.3 of the
Agreement.
ARTICLE 8.0 TRAINING
8.1 Flight Crew Training
8.1.1
[CONFIDENTIAL TREATMENT REQUESTED].
8.1.2
[CONFIDENTIAL TREATMENT REQUESTED]
8.1.3
[CONFIDENTIAL TREATMENT REQUESTED] .
8.1.4
[CONFIDENTIAL TREATMENT REQUESTED]
8.2 Maintenance Training
8.2.1
[CONFIDENTIAL TREATMENT REQUESTED].
8.2.2
[CONFIDENTIAL TREATMENT REQUESTED].
8.2.3
[CONFIDENTIAL TREATMENT REQUESTED].
8.2.4
[CONFIDENTIAL TREATMENT REQUESTED]
8.2.3
[CONFIDENTIAL TREATMENT REQUESTED]
8.2.4
[CONFIDENTIAL TREATMENT REQUESTED].
8.2.5
[CONFIDENTIAL TREATMENT REQUESTED]
Article 9.0 below supplements ▇▇▇▇▇ A, Article 4 of the Agreement.
ARTICLE 9.0 - TECHNICAL DATA
COLUMN HEADING EXPLANATION OF CODES
ITEM
1 DOC DOCUMENT
Title of Technical Data provided.
2 CONFIG CONFIGURATION
G = Contains data common to all aircraft of the same
type (Generic).
C = Contains data unique to Buyer's Aircraft
(Customized).
3 MEDIUM Buyer selects one of the following media specified in
the table:
1 = Print two sides
2 = Microfilm
3 = Print one side
4 = Laminated Cardboard
4 REVISION Y = Periodic revision service applies
N = Revision service not applicable
S = Revised as required by Bombardier
5 QUANTITY
(Number) = Quantity per the Agreement
(Number) PER = Quantity per Aircraft
6 DELIVERY
[CONFIDENTIAL TREATMENT REQUESTED]
7 ATA Y = Document is per ATA Specification 100, Revision
26.
N = Document is to Bombardier's existing commercial
practices.
With the delivery of the first Aircraft, Bombardier will provide to Buyer
at no additional charge one set of the technical manuals listed below
LIST OF TECHNICAL DATA
[CONFIDENTIAL TREATMENT REQUESTED]
NOTES: See following page.
NOTE 1: REVISION SERVICE
A. Revision services shall only be available for [CONFIDENTIAL
TREATMENT REQUESTED] following the Delivery Date of Buyer's last
Aircraft. Subsequent revision service shall be provided
dependent upon incorporation of Bombardier issued Service
Bulletins.
B. Revisions to the Technical Data to reflect the Aircraft at
Delivery Date shall be provided to Buyer within [CONFIDENTIAL
TREATMENT REQUESTED] following the Delivery Date of each of the
Aircraft, respectively.
C. Provided the revision service is being supplied under the
terms of this Agreement or by subsequent purchase order,
Bombardier shall incorporate in the applicable documents all
applicable Bombardier originated Service Bulletins in a
regular revision following formal notification by Buyer that
such Service Bulletins shall be accomplished on the Buyer's
Aircraft. The manuals shall then contain both original and
revised configuration until Buyer advises Bombardier in
writing that one configuration is no longer required.
NOTE 2: SERVICE BULLETINS
Aperture cards of the service drawing(s) will be provided in lieu
of drawings when practical.
NOTE 3: MAINTENANCE PROGRAM DOCUMENT
This manual provides the basis for Buyer's initial maintenance
program.
NOTE 4: AIRCRAFT CHARACTERISTICS FOR AIRPORT PLANNING
This manual contains data on Aircraft ground manoeuver and
handling.
NOTE 5: ON-BOARD WIRING DIAGRAM BOOK
This book contains wiring diagrams for interim reference until
the Wiring Diagram Manual is revised to reflect the Aircraft at
the Delivery Date.
NOTE 6: PASSENGER INFORMATION CARDS
Bombardier will provide one (1) reproducible master for the
preparation of passenger information cards. [CONFIDENTIAL TREATMENT
REQUESTED].
9.2 Vendor Manuals
[CONFIDENTIAL TREATMENT REQUESTED]
These all will be shipped by the vendors directly to Buyer.
All manuals, revisions or amendments will be in the English language.
Article 10.0 below supplements Annex B, Article 1.0 of the Agreement.
ARTICLE 10.0 WARRANTY
11.1 [CONFIDENTIAL TREATMENT REQUESTED].
11.2 [CONFIDENTIAL TREATMENT REQUESTED].
11.3 [CONFIDENTIAL TREATMENT REQUESTED].
11.4 [CONFIDENTIAL TREATMENT REQUESTED].
Article 11.0 below supplements Article 3.7 of the Agreement.
ARTICLE 11.0 COVERED COMPONENTS
11.1 [CONFIDENTIAL TREATMENT REQUESTED].
11.2 [CONFIDENTIAL TREATMENT REQUESTED].
11.3 [CONFIDENTIAL TREATMENT REQUESTED]
11.4 [CONFIDENTIAL TREATMENT REQUESTED].
In witness whereof this Supplement was signed on the date written hereof:
For and on behalf of For and on behalf of
HORIZON AIR INDUSTRIES, INC. BOMBARDIER INC.
Bombardier Aerospace
Original signed by ▇. ▇▇▇▇▇▇▇ Original signed by ▇. ▇▇▇▇▇▇▇▇▇
___________________________ _______________________________
▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇
Vice President and Treasurer. President
Regional Aircraft
Original signed by ▇. ▇▇▇▇▇▇▇▇▇
_________________________
▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇
Vice President, Contracts
Regional Aircraft
SCHEDULE 1 TO SUPPLEMENT NO. PA-436-1
SPECIFICATION
TYPE SPECIFICATION
Number RAD-670-100 Issue B
September 4 1998
▇▇▇▇▇ acknowledges having received the Specification mentioned above
SCHEDULE 2 TO SUPPLEMENT NO. PA-436-1
BUYER SELECTED OPTIONAL FEATURES
PRICES AND DESCRIPTIONS
[CONFIDENTIAL TREATMENT REQUESTED]
SCHEDULE 3 TO SUPPLEMENT NO. PA-436-1
[CONFIDENTIAL TREATMENT REQUESTED]
SCHEDULE 4 TO SUPPLEMENT NO. PA-436-1
[CONFIDENTIAL TREATMENT REQUESTED].
3.0 In the event of the termination of the Agreement, this Schedule shall
become automatically null and void.
4.0 The provisions of this Schedule are personal to Buyer and shall not be
assigned or otherwise disposed of by Buyer without the prior written
consent of Bombardier.
5.0 This Schedule constitutes an integral part of the Agreement and
subject to the terms and conditions contained therein.
HORIZON AIR INDUSTRIES, INC. BOMBARDIER INC.
Bombardier Aerospace
Original signed by ▇. ▇▇▇▇▇▇▇ Original signed by ▇. ▇▇▇▇▇▇▇▇▇
___________________________ _______________________________
▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇
Vice President and Treasurer. President
Regional Aircraft
Original signed by ▇. ▇▇▇▇▇▇▇▇▇
_________________________
▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇
Vice President, Contracts
Regional Aircraft
SCHEDULE 5 TO SUPPLEMENT NO. PA-436-1
[CONFIDENTIAL TREATMENT REQUESTED]
8.0 In the event of the termination of the Agreement, this Schedule shall
become automatically null and void.
9.0 The provisions of this Schedule are personal to Buyer and shall not be
assigned or otherwise disposed of by Buyer without the prior written
consent of Bombardier.
10.0 This Schedule constitutes an integral part of the Agreement and
subject to the terms and conditions contained therein.
HORIZON AIR INDUSTRIES, INC. BOMBARDIER INC.
Bombardier Aerospace
Original signed by ▇. ▇▇▇▇▇▇▇ Original signed by ▇. ▇▇▇▇▇▇▇▇▇
___________________________ _______________________________
▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇
Vice President and Treasurer. President
Regional Aircraft
Original signed by ▇. ▇▇▇▇▇▇▇▇▇
_________________________
▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇
Vice President, Contracts
Regional Aircraft
SCHEDULE 6 TO SUPPLEMENT NO. PA-436-1
[CONFIDENTIAL TREATMENT REQUESTED]
12.0 In the event of the termination of the Agreement, this Schedule shall
become automatically null and void.
13.0 The provisions of this Schedule are personal to Buyer and shall not be
assigned or otherwise disposed of by Buyer without the prior written
consent of Bombardier.
14.0 This Schedule constitutes an integral part of the Agreement and
subject to the terms and conditions contained therein.
HORIZON AIR INDUSTRIES, INC. BOMBARDIER INC.
Bombardier Aerospace
Original signed by ▇. ▇▇▇▇▇▇▇ Original signed by ▇. ▇▇▇▇▇▇▇▇▇
___________________________ _______________________________
▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇
Vice President and Treasurer. President
Regional Aircraft
Original signed by ▇. ▇▇▇▇▇▇▇▇▇
_________________________
▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇
Vice President, Contracts
Regional Aircraft
SCHEDULE 7 TO SUPPLEMENT NO. PA-436-1
[CONFIDENTIAL TREATMENT REQUESTED]
3.0 In the event of the termination of the Agreement, this Schedule shall
become automatically null and void.
4.0 The provisions of this Schedule are personal to Buyer and shall not be
assigned or otherwise disposed of by Buyer without the prior written
consent of Bombardier.
5.0 This Schedule constitutes an integral part of the Agreement and
subject to the terms and conditions contained therein.
HORIZON AIR INDUSTRIES, INC. BOMBARDIER INC.
Bombardier Aerospace
Original signed by ▇. ▇▇▇▇▇▇▇ Original signed by ▇. ▇▇▇▇▇▇▇▇▇
___________________________ _______________________________
▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇
Vice President and Treasurer. President
Regional Aircraft
Original signed by ▇. ▇▇▇▇▇▇▇▇▇
_________________________
▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇
Vice President, Contracts
Regional Aircraft
SCHEDULE 8 TO SUPPLEMENT NO. PA-436-1
[CONFIDENTIAL TREATMENT REQUESTED]
5.0 In the event of the termination of the Agreement, this Schedule shall
become automatically null and void.
6.0 The provisions of this Schedule are personal to Buyer and shall not be
assigned or otherwise disposed of by Buyer without the prior written
consent of Bombardier.
7.0 This Schedule constitutes an integral part of the Agreement and
subject to the terms and conditions contained therein.
HORIZON AIR INDUSTRIES, INC. BOMBARDIER INC.
Bombardier Aerospace
Original signed by ▇. ▇▇▇▇▇▇▇ Original signed by ▇. ▇▇▇▇▇▇▇▇▇
___________________________ _______________________________
▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇
Vice President and Treasurer. President
Regional Aircraft
Original signed by ▇. ▇▇▇▇▇▇▇▇▇
_________________________
▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇
Vice President, Contracts
Regional Aircraft
SCHEDULE 9 TO SUPPLEMENT NO. PA-436-1
[CONFIDENTIAL TREATMENT REQUESTED]
9.0 In the event of the termination of the Agreement, this Schedule shall
become automatically null and void.
10.0 The provisions of this Schedule are personal to Buyer and shall not be
assigned or otherwise disposed of by Buyer without the prior written
consent of Bombardier.
11.0 This Schedule constitutes an integral part of the Agreement and
subject to the terms and conditions contained therein.
HORIZON AIR INDUSTRIES, INC. BOMBARDIER INC.
Bombardier Aerospace
Original signed by ▇. ▇▇▇▇▇▇▇ Original signed by ▇. ▇▇▇▇▇▇▇▇▇
___________________________ _______________________________
▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇
Vice President and Treasurer. President
Regional Aircraft
Original signed by ▇. ▇▇▇▇▇▇▇▇▇
_________________________
▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇
Vice President, Contracts
Regional Aircraft
ATTACHMENT 1
SCHEDULE 9
[CONFIDENTIAL TREATMENT REQUESTED]
SCHEDULE 10 TO SUPPLEMENT NO. PA-436-1
[CONFIDENTIAL TREATMENT REQUESTED]
5.0 In the event of the termination of the Agreement, this Schedule shall
become automatically null and void.
6.0 The provisions of this Schedule are personal to Buyer and shall not be
assigned or otherwise disposed of by Buyer without the prior written
consent of Bombardier.
7.0 This Schedule constitutes an integral part of the Agreement and
subject to the terms and conditions contained therein.
HORIZON AIR INDUSTRIES, INC. BOMBARDIER INC.
Bombardier Aerospace
Original signed by ▇. ▇▇▇▇▇▇▇ Original signed by ▇. ▇▇▇▇▇▇▇▇▇
___________________________ _______________________________
▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇
Vice President and Treasurer. President
Regional Aircraft
Original signed by ▇. ▇▇▇▇▇▇▇▇▇
_________________________
▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇
Vice President, Contracts
Regional Aircraft
SCHEDULE 11 TO SUPPLEMENT NO. PA-436-1
[CONFIDENTIAL TREATMENT REQUESTED]
.
3.0 In the event of the termination of the Agreement, this Schedule shall
become automatically null and void.
4.0 The provisions of this Schedule are personal to Buyer and shall not be
assigned or otherwise disposed of by Buyer without the prior written
consent of Bombardier.
5.0 This Schedule constitutes an integral part of the Agreement and
subject to the terms and conditions contained therein.
HORIZON AIR INDUSTRIES, INC. BOMBARDIER INC.
Bombardier Aerospace
Original signed by ▇. ▇▇▇▇▇▇▇ Original signed by ▇. ▇▇▇▇▇▇▇▇▇
___________________________ _______________________________
▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇
Vice President and Treasurer. President
Regional Aircraft
Original signed by ▇. ▇▇▇▇▇▇▇▇▇
_________________________
▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇
Vice President, Contracts
Regional Aircraft
SCHEDULE 12 TO SUPPLEMENT NO. PA-436-1
[CONFIDENTIAL TREATMENT REQUESTED]
2.0 In the event of the termination of the Agreement, this Schedule shall
become automatically null and void.
3.0 The provisions of this Schedule are personal to Buyer and shall not be
assigned or otherwise disposed of by Buyer without the prior written
consent of Bombardier.
4.0 This Schedule constitutes an integral part of the Agreement and
subject to the terms and conditions contained therein.
HORIZON AIR INDUSTRIES, INC. BOMBARDIER INC.
Bombardier Aerospace
Original signed by ▇. ▇▇▇▇▇▇▇ Original signed by ▇. ▇▇▇▇▇▇▇▇▇
___________________________ _______________________________
▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇
Vice President and Treasurer. President
Regional Aircraft
Original signed by ▇. ▇▇▇▇▇▇▇▇▇
_________________________
▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇
Vice President, Contracts
Regional Aircraft
ATTACHMENT 1
SCHEDULE 12
[CONFIDENTIAL TREATMENT REQUESTED]
SCHEDULE 13 TO SUPPLEMENT NO. PA-436-1
[CONFIDENTIAL TREATMENT REQUESTED]
3.0 In the event of the termination of the Agreement, this Schedule shall
become automatically null and void.
4.0 The provisions of this Schedule are personal to Buyer and shall not be
assigned or otherwise disposed of by Buyer without the prior written
consent of Bombardier.
5.0 This Schedule constitutes an integral part of the Agreement and
subject to the terms and conditions contained therein.
HORIZON AIR INDUSTRIES, INC. BOMBARDIER INC.
Bombardier Aerospace
Original signed by ▇. ▇▇▇▇▇▇▇ Original signed by ▇. ▇▇▇▇▇▇▇▇▇
___________________________ _______________________________
▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇
Vice President and Treasurer. President
Regional Aircraft
Original signed by ▇. ▇▇▇▇▇▇▇▇▇
_________________________
▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇
Vice President, Contracts
Regional Aircraft
mpa-4361.doc -100- Revision Date: 1/29/99
Initials
Buyer __GJ__ Bombardier _SL_