1.Integration with Credit Agreement This Work Authorization shall be merged
into and become a part of the Work Order and Agreement of Fly Alliance
Maintenance, LLC (the "Credit Agreement"). In the event the parties hereto
have entered into a Credit Agreement, it is understood that this Work
Authorization is a subsequent agreement of the parties, and that, except as
modified by this Work Authorization, the Credit Agreement shall remain in
full force and effect. No terms, provisions, or conditions stated in any
purchase order of the customer which are additional to, in conflict with, or
inconsistent with the terms, provisions, and conditions contained in this
Work Authorization or in any Credit Agreement shall be binding upon Fly
Alliance Maintenance, LLC (hereinafter referred to as "FAM"), unless
expressly agreed to in writing by FAM.
1.1 Deposit for Customers Not on Credit Terms For customers who are not on
credit terms with FAM, a deposit is required to initiate work under this
Work Authorization. The deposit amount shall be 100% of the parts and known
services costs and 50% of the estimated labor charges. The deposit shall be
paid by the customer prior to the commencement of any work. FAM reserves the
right to withhold the aircraft and postpone work until the required deposit
is received.
1.2 Aircraft Arriving Prior to Work Approval In the event that an aircraft
arrives at FAM's facilities prior to receiving work approval, the Owner
acknowledges that such arrival may trigger the imposition of daily
storage/ramp fees. The imposition and calculation of these fees shall be at
the sole discretion of FAM. The Owner agrees to be bound by FAM's
determination of the applicable storage/ramp fees. The daily storage/ramp
fees shall be as follows:
•Large Cabin aircraft (GIV or similar): $800 per day
•Mid Cabin Aircraft (Citation X or similar): $650 per day
•Small Cabin aircraft (Citation 500 series or similar): $500 per day
•Light Jets and Single engine GA aircraft (Honda Jet, C172, or similar):
$250 per day
2.Supremacy of Work Authorization and Credit Agreement The terms of this Work
Authorization and any Credit Agreement supersede the terms of all other
agreements between the parties hereto and constitute the full agreement of
the parties hereto. If any of the said provisions shall be stricken, the
remaining terms shall remain enforceable.
3.Retention of Aircraft and Remedies for Unpaid Invoice Amounts Until all
invoice amounts due and owing to FAM are paid in full, FAM shall be entitled
to retain possession of the Aircraft and/or pursue all rights and remedies
available to it at law or in equity, including, but not limited to, filing a
lien on the Aircraft and instituting a lien foreclosure suit against the
Aircraft and the Owner. The Owner shall be responsible for all reasonable
storage fees for the aircraft.
3.1 Payment Upon Completion and RTS Payment for all work performed by FAM
under this Work Authorization is due prior to the aircraft's Return to
Service (RTS). The customer shall make the payment within 10 business days
of receipt of the final invoice to avoid delinquency fees and storage fees
as mentioned in this section.
3.2 Delinquency Fees In the event of default on invoice amounts due and owing
to FAM, the customer shall be considered delinquent after the 10th business
day from the receipt of the final invoice. Delinquent accounts will be
subject to hangar/ramp daily storage fees as follows:
•Large Cabin aircraft (GIV or similar): $800 per day
•Mid Cabin Aircraft (Citation X or similar): $650 per day
•Small Cabin aircraft (Citation 500 series or similar): $500 per day
•Light Jets and Single engine GA aircraft (Honda Jet, C172, or similar):
$250 per day
3.3 Possession of Aircraft The Owner may obtain possession of the aircraft by
payment in certified funds of the total of the foregoing amounts into any
interest-bearing escrow account, the escrow agent to be designated by FAM,
or, in the alternative, by posting with FAM a surety bond in such amount.
4.Arbitration The parties agree that all claims and disputes that may arise
between the parties regarding the Aircraft shall be decided by arbitration
in accordance with the rules of the American Arbitration Association, except
as otherwise provided herein or otherwise mutually agreed to by the parties
in writing. This agreement to arbitrate shall be specifically enforceable
under the prevailing arbitration law. The award rendered by the arbitrators
shall be final and binding on the parties, and the judgment upon the award
may be entered in any court of competent jurisdiction.
5.Arbitration Venue and Requirements All arbitration hearings shall be held
at a place designated by the arbitrators in the county of Fly Alliance
Maintenance's maintenance facility, which services the aircraft under this
Work Authorization. The parties agree to submit themselves to the
jurisdiction of the state and/or federal courts of the state of the Fly
Alliance Maintenance facility, which services the aircraft, and the Owner
waives all objections to venue and personal jurisdiction being proper in the
county and state of the Fly Alliance Maintenance facility, which services
the aircraft.
6.Qualifications of Arbitrators The parties agree that any arbitration
hearings demanded under this Work Authorization will be heard by three (3)
arbitrators having the following qualifications: each arbitrator shall be
between the age of thirty (30) and sixty-five (65) years and have (1) a FAA
Mechanic's License with Airframe and Powerplant ratings, (2) a FAA
Inspection Authorization, (3) no less than seven (7) years' experience in
the General Aviation aircraft service and maintenance industry, and (4)
familiarity with the prevailing hourly rates for the servicing of General
Aviation aircraft in the United States.
7.Discovery Provisions The provisions governing discovery under the Federal
Rules of Civil Procedure, as amended, shall apply to any arbitration
proceeding. The parties agree to cooperate with one another by furnishing,
within fifteen (15) days after receiving a request for production of
documents, subject to limitations on the availability of reproduction
facilities, any business records, correspondence, and other documents
reasonably related to the subject matter of the arbitration which are not
the proper subject of privilege or protection under the Federal Rules of
Civil Procedure. Duplication costs shall be borne by the party requesting
the documents.
8.Statute of Limitations Demand for arbitration must be made in writing to
the other party and promptly filed with the American Arbitration
Association. In no event shall arbitration or other legal recourse be
available to either party based on any claim that would be barred by any
statute of limitations of the state of the Fly Alliance Maintenance
facility, which services the aircraft.
9.DISCLAIMER OF WARRANTIES THERE ARE NO WARRANTIES, EXPRESS OR IMPLIED, WITH
RESPECT TO MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, APPLICABLE
TO LABOR AND PARTS, ACCESSORIES AND EQUIPMENT INSTALLED ON THE AIRCRAFT.
OWNER AGREES THAT THE ONLY WARRANTY, IF ANY, ON PARTS, ACCESSORIES OR
EQUIPMENT IS THAT GIVEN BY THE MANUFACTURER, AND OWNER AGREES THAT FAM SHALL
NOT BE LIABLE TO OWNER FOR ANY DEFECTS IN PARTS, ACCESSORIES OR EQUIPMENT
INSTALLED ON THE AIRCRAFT BY FAM.
10.LIMITATION OF LIABILITY THE PARTIES AGREE THAT THE LIABILITY OF FAM
ARISING OUT OF ANY WORK PERFORMED ON THE AIRCRAFT SHALL BE LIMITED TO THE
COST OF THE WORK PERFORMED BY FAM OR TO THE REPAIR AND REPLACEMENT OF ANY
NON-CONFORMING GOODS AND PARTS. THE PARTIES AGREE THAT FAM SHALL NOT BE
LIABLE FOR ANY LOSS OF USE, CONSEQUENTIAL, INCIDENTAL, OR PUNITIVE DAMAGES
ARISING OUT OF THE WORK PERFORMED ON THE AIRCRAFT.
11.Governing Law The parties agree that this Work Authorization is entered
into in the state in which the Fly Alliance Maintenance facility servicing
the aircraft under this Work Authorization is located and its
interpretation, performance, and all rights and liabilities of the parties
shall be governed under the laws of the state of the Fly Alliance
Maintenance facility, which services the aircraft under this Work
Authorization.
12. Procurement of Parts and Use of Customer Supplied Parts
12.1 Procurement of Parts FAM shall have the sole discretion to procure any
necessary parts required for the performance of work under this Work
Authorization. Before proceeding with the procurement, FAM shall seek
approval from the customer for all parts to be purchased. Pre-payment for
parts may be required by FAM, based on its discretion, to facilitate timely
procurement and completion of the work. FAM shall maintain appropriate
records of parts used in the maintenance or repair of the aircraft and shall
make these records available to the customer upon request.
12.2 Use of Customer Supplied Parts If the customer provides parts for use in
the maintenance or repair of the aircraft, FAM reserves the right to inspect
such parts for quality, authenticity, and suitability for the intended
purpose. FAM shall not be liable for any defects, damages, or issues arising
from the use of customer supplied parts, provided they have been approved by
FAM for use in the aircraft. The customer shall ensure that any customer
supplied parts meet the necessary standards and regulatory requirements for
aviation safety. Customer supplied parts are subject to a fee equivalent to
15% of the market price of the part in comparable condition at the
discretion of Fly Alliance Maintenance.
12.3 Policies Related to Parts By signing this Work Authorization, the
customer acknowledges that they have been made aware of and agree to comply
with FAM's policies regarding the procurement of parts and the use of
customer supplied parts. These policies are designed to ensure the safety
and airworthiness of the aircraft and may be subject to change or update at
FAM's discretion. The customer agrees to abide by these policies and any
relevant industry regulations related to the use of parts in aircraft
maintenance.