Waiver Under Amended and Restated Credit Agreement Among Breeze-Eastern Corporation, Lenders, and Wells Fargo Foothill, Inc.
This agreement is a waiver under an existing credit agreement between Breeze-Eastern Corporation (the borrower), several lenders, and Wells Fargo Foothill, Inc. (the administrative agent). The waiver allows Breeze-Eastern to provide certain guarantees and bonds related to a contract with the United Arab Emirates Armed Forces, which would otherwise trigger a default under the credit agreement. The waiver is effective as of October 17, 2007, provided specific conditions are met, and does not otherwise alter the terms of the original credit agreement.
CREDIT AGREEMENT
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BREEZE-EASTERN CORPORATION, as Borrower | ||||
By: | /s/ JOSEPH F. SPANIER | |||
Name: | JOSEPH F. SPANIER | |||
Title: | EXEC. VP, CFO + TREASURER | |||
WELLS FARGO FOOTHILL, INC., as Administrative Agent and Lender | ||||
By: | /s/ Peter Schuebler | |||
Name: | Peter Schuebler | |||
Title: | Vice President | |||
MAPS CLO FUND I, LLC, as Lender By: Callidus Capital Management, LLC, its Collateral Manager | ||||
By: | /s/ PETER R. BENNITT | |||
Name: | PETER R. BENNITT | |||
Title: | PRINCIPAL | |||
MAPS CLO FUND II, LTD., as Lender By: Callidus Capital Management, LLC, its Collateral Manager | ||||
By: | /s/ PETER R. BENNITT | |||
Name: | PETER R. BENNITT | |||
Title: | PRINCIPAL | |||
AC FINANCE LLC, as Co-Lead Arranger | ||||
By: | /s/ Joseph Taylor | |||
Name: | Joseph Taylor | |||
Title: | Managing Director | |||
ALLIED CAPITAL SENIOR DEBT FUNDING 2007-1, as Lender By: A.C. Corporation, Its Collateral Manager | ||||
By: | /s/ Eric Groberg | |||
Name: | Eric Groberg | |||
Title: | Managing Director | |||
UNITED ARAB EMIRATES ARMED FORCES
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TITLE | PAGE | |||
TABLE OF CONTENTS | 2 | |||
ARTICLE 1 GENERAL | 6 | |||
ARTICLE 2 ORIGIN | 6 | |||
ARTICLE 3 DEFINITIONS | 6 | |||
ARTICLE 4 SCOPE | 7 | |||
ARTICLE 5 PRICES | 7 | |||
ARTICLE 6 TERMS AND MEANS OF PAYMENT | 8 | |||
ARTICLE 7 OPTION TO PURCHASE | 10 | |||
ARTICLE 8 DELIVERY | 11 | |||
ARTICLE 9 TITLE & RISK OF LOSS | 11 | |||
ARTICLE 10 PENALTIES FOR LATE DELIVERY | 11 | |||
ARTICLE 11 REJECTED LINE ITEMS | 12 | |||
ARTICLE 12 FORCE MAJEURE | 12 | |||
ARTICLE 13 OBLIGATIONS & RIGHTS | 12 | |||
ARTICLE 14 WARRANTY | 13 | |||
ARTICLE 15 MARKING & PACKING | 13 | |||
ARTICLE 16 INSURANCE | 14 | |||
ARTICLE 17 CHANGES | 14 | |||
ARTICLE 18 PERFORMANCE/WARRANTY BONDS | 14 | |||
ARTICLE 19 TERMINATION OF CONTRACT | 15 | |||
ARTICLE 20 TAXES & DUTIES | 15 | |||
ARTICLE 21 SPARES | 16 | |||
ARTICLE 22 MANUALS & CATALOGUES | 16 | |||
ARTICLE 23 TRAINING | 16 | |||
ARTICLE 24 ASSIGNMENT & BENEFIT | 16 | |||
ARTICLE 25 INSPECTION | 17 | |||
ARTICLE 26 ACCEPTANCE | 17 | |||
ARTICLE 27 INDEMNITY | 17 | |||
ARTICLE 28 POLITICS | 18 |
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TITLE | PAGE | |||
ARTICLE 29 ENVIRONMENTAL CONDITIONS | 18 | |||
ARTICLE 30 MISCELLANEOUS | 18 | |||
ARTICLE 31 MODIFICATION | 19 | |||
ARTICLE 32 PRIOR AGREEMENT | 19 | |||
ARTICLE 33 MAINTENANCE | 19 | |||
ARTICLE 34 TECHNICAL ASSISTANCE | 19 | |||
ARTICLE 35 OBSERVATION OF RULES & REGULATIONS | 19 | |||
ARTICLE 36 EXPORT/IMPORT LAWS | 20 | |||
ARTICLE 37 ARBITRATION | 20 | |||
ARTICLE 38 ADDRESSES AND NOTICES | 20 | |||
ARTICLE 39 OFFSETS AGREEMENT | 21 | |||
ARTICLE 40 ENTIRE CONTRACT | 22 | |||
ARTICLE 41 COMING INTO FORCE | 22 |
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Page | ||||
ANNEX 1 | TECHNICAL ASSISTANCE | 24 | ||
ANNEX 2 | PRICE BREAKDOWN | 25 | ||
ANNEX 3 | DELIVERY SCHEDULE | 26 | ||
ANNEX 4 | SPECIMEN OF DOWN PAYMENT GUARANTEE | 27 | ||
ANNEX 5 | SPECIMEN OF PERFORMANCE/WARRANTY BOND | 28 | ||
ANNEX 6 | SPECIMEN FOR FACTORY ACCEPTANCE CERTIFICATE | 29 | ||
ANNEX 7 | SPECIMEN DELIVERY ACCEPTANCE CERTIFICATE | 30 | ||
ANNEX 8 | SPECIMEN FOR FINAL ACCEPTANCE CERIFICATE | 31 | ||
ANNEX 9 | WARRANTY | 32 | ||
ANNEX 10 | TRAINING | 34 | ||
ANNEX 11 | PRODUCT SPECIFICATION | 36 | ||
ANNEX 12 | SPECIMEN OF CERTIFICATE OF ORIGIN | 37 | ||
ANNEX 13 | Conditions of Storage and Conditioning Requirements Sheet | 38 |
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700 Liberty Ave
Union, NJ 07083
U.S.A.
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| A quantity of ten (10) dual rescue hoist systems (HS-29900) with spares, training and warranty according to this contract. |
1.1 | The Preamble aforementioned and all Annexes attached shall form an integral part of this Contract. |
2.1 | All Products under this contract shall be of North America and EU Origin Only. |
3.1 | Definitions and interpretation of the words used in this Contract are as follows and part of this Contract:- | |
3.1.1 | BUYER shall mean:- The General Headquarters, UAE Armed Forces, Abu Dhabi. | |
3.1.2 | SELLER shall mean:- Breeze-Eastern Corporation | |
3.1.3 | CONTRACT shall mean:- The conditions of this Contract and its annexes incorporated hereto. | |
3.1.4 | Products shall mean:- Dual rescue hoist systems, and spares as per Annex 2. | |
3.1.5 | Service shall mean:- Support to the BUYER, Technical Assistance, training and warranty as detailed within Annexes 1, 9 and 10. | |
3.1.6 | Month shall mean:- Calendar month. |
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5.1 | The Seller agrees to sell and deliver new and latest year manufactured Products and supply in accordance with specifications, design, quality and material as stipulated in the CONTRACT. | |
5.2 | Total CONTRACT value is: $2,359,292 (US Dollars Two Million, Three Hundred Fifty Nine Thousand, Two Hundred and Ninety Two). | |
5.3 | Currency of the CONTRACT is: United States Dollars (USD) | |
5.4 | The prices of the Products to be delivered to the BUYER are DDU Abu Dhabi International Airport (Incoterms 2000) as specified under Annex 3. | |
5.5 | The prices quoted in this CONTRACT are fixed, final and not subject to escalation. | |
5.6 | Price breakdown of the Products and Services is specified under Annex (2). These prices includes the cost of: |
5.6.1 | Airworthy packing of goods. | ||
5.6.2 | Sellers costs for factory acceptance and inspection. | ||
5.6.3 | Sellers costs for final acceptance. | ||
5.6.4 | Export duties/license levied by other than the Buyers country. | ||
5.6.5 | Any charges or other duties / fees to be levied in the country manufacturing the Goods. | ||
5.6.6 | Sellers reasonable support in accordance with the requirements of this Contract to Buyer to assist a 3rd party in the integration of the products. |
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6.1 | PAYMENTS | |
The schedule of payments will be the following: | ||
6.1.1 | DOWN PAYMENT | |
A down payment of USD $471,858 (US Dollars Four hundred Seventy One Thousand, Eight hundred and Fifty Eight) representing Twenty percent (20%) of the total value of this CONTRACT, will be paid by the BUYER to the SELLER, according to article 6.2.2 of the CONTRACT. | ||
6.1.2 | DELIVERY PAYMENTS | |
Delivery payment of USD $1,179,646 (US Dollars One Million, One Hundred Seventy Nine Thousand, Six Hundred and Forty Six) representing Fifty percent (50%) of the total value of the Products and Services specified in Annex 2 of this CONTRACT, will be paid by the BUYER to the SELLER according to article 6.2.4.1 of the CONTRACT. | ||
6.1.3 | FINAL PAYMENTS | |
Final payments of USD $707,788 (US Dollars Seven Hundred Seven Thousand, Seven Hundred and Eighty Eight) representing Thirty percent (30%) of the total value of the Products and Services specified in Annex 2 of this CONTRACT, will be paid by the BUYER to the SELLER according to article 6.2.4.2 of the CONTRACT. | ||
6.2 | PROCEDURE OF PAYMENTS | |
6.2.1 | BANK ACCOUNT |
2000 Morris Avenue, Union, NJ 07083 U.S.A.
Account No.  ###-###-####
ABA Routing No. 021000021
SWIFT Code: CHASU533
6.2.2 | DOWN PAYMENT: TRANSFER OF FUNDS | |
6.2.2.1 | Within thirty (30) days after receipt by the SELLER of notification of signature of the original CONTRACT by the BUYER, the SELLER will present to the BUYER the following documents for payment: |
| One (1) original invoice together with seven (7) complete copies bearing CONTRACT number, of an amount of USD $471,858 (US Dollars Four hundred Seventy One Thousand, Eight hundred and Fifty Eight) corresponding to the Down Payment of the Contract value, as specified in Annex 2 of the CONTRACT. |
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| Down Payment Guarantee Certificate, as per specimen in Annex 4. |
6.2.2.2 | The BUYER, shall within 30 days after receipt of the above mentioned documents, pay, by telegraphic transfer of funds, the said Down payment to the account of the SELLER as per Article 6.2.1 of the CONTRACT | |
6.2.3 | DELIVERY AND FINAL PAYMENTS | |
6.2.3.1 | The BUYER shall, within Sixty (60) days after receipt of the Performance Guarantee Certificate, open in favor of the SELLER, an irrevocable, transferable and allowing partial deliveries, Documentary Credit at SELLERS bank stipulated in article 6.2.1 of the CONTRACT. | |
6.2.3.2 | The amount of the documentary credit will be USD $1,887,434 (US Dollar One Million, Eighty Hundred Eighty Seven, Four Hundred and Thirty Four) representing eighty percent (80%) of the value of the CONTRACT as specified in Annex 2. | |
6.2.3.3 | This documentary credit shall remain valid until the whole amount of the CONTRACT has been paid. | |
6.2.3.4 | Should the documentary credit expire before completion of the payments of the Contract, the BUYER shall in due time extend the documentary credit at the request of the SELLER. All the related costs of the extension of the documentary credit shall be borne by the SELLER if he is in default to deliver as per the CONTRACT. | |
6.2.3.5 | All fees, taxes, bank and other charges related to the documentary credit required to be paid in the BUYERS country shall be borne by the BUYER. | |
6.2.3.6 | All fees, taxes, bank and other charges related to the documentary credit required to be paid outside the BUYERS country shall be borne by the SELLER | |
6.2.4 | DOCUMENTS REQUIRED FOR PAYMENT | |
6.2.4.1 | DOCUMENTS REQUIRED FOR PAYMENT OF DELIVERY PAYMENTS | |
6.2.4.1.1 | Fifty percent (50%) of the value of each Products and Services as specified under Annex 2 for each delivery against the following documents: | |
a) | One original and seven (7) copies of commercial invoice, each bearing CONTRACT number, and documentary credit number. | |
b) | One (1) original and two (2) copies of Certificate of Conformity, countersigned by the SELLERS Quality Assurance. |
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c) | One (1) original and two (2) copies of Factory Acceptance Certificate as per specimen in Annex 6, signed by the SELLERS representative. | |
d) | Bill of lading or Airway bill signifying delivery as per Article 8. | |
e) | One (1) original and two (2) copies of the packing list | |
f) | Delivery Acceptance Certificate as per specimen in Annex 7, countersigned by BUYERS authorized representative. | |
6.2.4.2 | DOCUMENTS REQUIRED FOR PAYMENT OF FINAL PAYMENTS | |
6.2.4.2.1 | The final thirty percent (30%) of the value of each Products and Services as specified in Annex 2 against the following documents: | |
a) | One original and seven (7) copies of commercial invoice, each bearing CONTRACT number, and documentary credit number. | |
b) | One (1) original and two (2) copies of Final Acceptance Certificate as per specimen in Annex 8, signed by the Commander/Deputy Commander, Special Operations Command. | |
6.2.5 | BANK GUARANTEES | |
6.2.5.1 | In order to guarantee the repayment of the Down Payment in case of failure in the delivery obligations of the SELLER as has been stated, a Down Payment Guarantee of the same amount as stipulated under Article 6.1.1 shall be issued in favour of the BUYER. A specimen of this bank guarantee is shown under Annex 4. | |
6.2.5.2 | In order to guarantee the fulfillment of the CONTRACT, a Performance/Warranty guarantee of USD $235,929.20, (US Dollar Two Hundred Thirty Five Thousand, Nine Hundred Twenty Nine and twenty Cents) representing 10 % of the value of the CONTRACT, shall be issued in favour of the BUYER, as stipulated in Article 18 of the CONTRACT. | |
6.2.5.3 | The Performance/Warranty Guarantee shall become valid from the date of issuance, and shall be reduced to the amount of USD $117,965 (US Dollar One Hundred Seventeen Thousand, Nine Hundred and Sixty Five) representing 5% of the value of the delivered Products, upon final acceptance of the last deliverable Products and Services and shall then continue in force as a Warranty Guarantee until expiration of the warranty period as stipulated under article 14. |
7.1 | In addition to the purchase of the firm quantity subject of this CONTRACT, the BUYER can purchase additional Products according to the price breakdown in Annex 2 and the delivery schedule in Annex 3. |
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8.1 | The SELLER undertakes to deliver the Products and Services on DDU Abu Dhabi (International Airport), basis as per Incoterms 2000. | |
8.2 | Delivery schedule is attached hereto as Annex 3. CONTRACT effective date (T0) will be at notification of signature of CONTRACT, Article 40. Any delay of more than 30 days beyond the period stated in Article 6.2.2, by the BUYER in paying the Down Payments as stipulated under Article 6.2.2, will extend T0 with a corresponding period, provided the delay is not due to SELLERS default. | |
8.3 | Earlier and partial deliveries of Products will be allowed, provided the BUYER agrees with the revised delivery schedule. |
9.1 | Risk, Title and Ownership of the Products shall be transferred to the BUYER at the time the delivery is made by the SELLER as per Article 8 above. |
10.1 | PENALTIES FOR LATE DELIVERY | |
In case the SELLER fails to supply the Products contracted for in whole or in part at a time later than that stated in the CONTRACT, including the replacement of the rejected items, the BUYER reserves the right to apply a penalty of one percent (1%) per week of the value of items so delayed for the first week or a part thereof. Thereafter the penalty will be increased to two percent (2%) per week for each subsequent week or part thereof, up to a maximum penalty of 10% of the value of the items so delayed. | ||
10.2 | RISK PURCHASE | |
In case the SELLER fails to supply the items contracted for in whole or in part (including the rejected items) at the time of delivery as provided for in the CONTRACT, the BUYER shall have the right to take one of the two following measures, without entering into litigation, provided a 30 day notice is given to the SELLER by a registered letter: |
1) | Make a risk purchase of the items that the SELLER has failed to supply from a third party at the expense of the SELLER (through direct negotiations or inquiries, subject to the same conditions and specifications previously agreed to and contracted for with the SELLER). Any excess values in price shall be deducted from the guarantee provided by the SELLER or from his dues held with the BUYER or any Government authority, plus overhead expenses at the rate of 5% of the |
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value of items so purchased plus whatever penalty is due for the delayed period in supply. | |||
2) | Cancel the contracted items and encash the entire amount of the guarantee in case of failure to supply totally or encash an amount equivalent to 10% of the value of the items so cancelled |
10.3 | The BUYER may waive the penalty in full or in part, should the SELLER submit documents to prove to the satisfaction of the BUYER that the causes of delay were beyond his reasonable control as per article 12. |
11.1 | On receipt of the Products at Abu Dhabi, if any item/items are rejected by the BUYER for non-conformity with specifications and modifications agreed upon, as per conditions of CONTRACT, then the SELLER must arrange for replacement of rejected items free of charge (including the freight and insurance charges) as per the agreed specifications and modifications, along with the payment of consequent penalty charges for late delivery imposed with effect from the contractual delivery date and until the date of replacement. The rejected items are to be collected by the SELLER at his own cost and risk. | |
11.2 | If the rejected items are sent back to the SELLER on his request, then all the expenses thus incurred by the BUYER plus administrative charges of 10% value of the rejected goods shall be borne by the SELLER |
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14.1 | The SELLER warrants that the Products, (including software), and the Services (including validation, qualification, modification and retrofit, performed and delivered under this contract) shall be in full conformance with the specifications and shall be free from defect in material, workmanship, design and manufacture for a period of 24 months after final acceptance, as specified under Article 26, and further warrants that any item/items or part/parts found defective through faulty design, workmanship, manufacture, size, dimensions and material will be replaced or repaired free of cost, within the said period of 24months. | |
14.2 | The SELLER shall guarantee a storage warranty of 3 years for the stored spare arts provided under Annex 2 of the CONTRACT, provided proper storage and packing is maintained during that period in accordance with Annex 14 of the Contract. No warranty is given with respect to those parts and components of the deliverables which are normally Time-Limited such as, but not limited to, rubber parts, ball bearings, electronic and non-metallic parts. | |
14.3 | It is understood that if a defect(s) of a part or parts of the Products is/are due to a failure by a part subject of this warranty, the warranty will apply to said defective part or parts. | |
14.4 | If necessary to return any item accepted under this clause to the SELLER to affect the necessary repair or replacement, all associated cost shall be born by the SELLER, including the cost of transportation, insurance and handling charges. | |
14.5 | The warranties stated herein are in lieu of all other warranties. SELLER shall not be liable or responsible for consequential damages with respect to the contract items delivered hereunder except to the extent identified above, and the BUYER agrees to indemnify and hold harmless the SELLER against such damages |
15.1 | The spares/items, required to be kept in the Warehouse should be suitably preserved and packed for long-term storage keeping in view the climatic conditions of the UAE. | |
15.2 | Marking and packing of the Products will be done in accordance with the approved standard of the factory. Each package will be marked and consigned to: |
15.2.1 | FOR DELIVERY TO UAE | ||
CONTRACT No. UAE ARMED FORCES SPECIAL OPERATIONS COMMAND POST BOX No. 309/39 |
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ABU DHABI UAE | |||
15.2.2 | FOR DELIVERY TO Breeze-Eastern Corporation 700 Liberty Avenue Union, NJ 07083 U.S.A. |
15.3 | The O-level spares will be delivered in suitable containers. | |
15.4 | Any loss or damage to the goods due to faulty packing will be the responsibility of the SELLER |
16.1 | During transportation from SELLERS facilities to Abu Dhabi, the SELLER will arrange insurance. |
17.1 | Should at any time during the life of the CONTRACT, either party desire to make a change to this CONTRACT, the party desiring the change shall submit to the other party a written request specifying the details of the desired change. The party receiving the change request shall reply within thirty (30) days, or such other time as the parties agree upon by a written notice of its desire to perform or not to perform the requested change. If it is agreed to proceed with the change, SELLER shall submit a written priced (if any) proposal for the change. Upon mutual agreement as to the terms of the change, it shall be incorporated into this CONTRACT via formal amendment signed by an authorized representative of each party. Unless otherwise agreed to in writing by the change request and reply, neither party shall be obligated to start work on the requested change until the formal amendment has been made a part of this CONTRACT through execution. | |
17.2 | Amendments which do not affect the total value of this CONTRACT or the quantities to be delivered, can be signed by the Commander/Deputy Commander, Special Operations Command and the SELLERS representative |
18.1 | The SELLER undertakes to submit within thirty (30) days from notification of signature of the CONTRACT, an unconditional Performance/Warranty Bank Guarantee for 10% of the value of the CONTRACT as per specimen given in Annex 5. | |
18.2 | The Performance/Warranty Guarantee shall be unconditional and valid for ninety days after the final acceptance date of Products, and thereafter shall be |
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reduced to cover the value of the Products for the warranty period, and shall automatically be renewed by the guarantor until all obligations have been fulfilled. | ||
18.3 | The amount of the Performance Guarantee shall be unconditionally payable to the BUYER upon first written demand by him without reference to the SELLER. | |
18.4 | If the Performance Guarantee amount decreases due to any deduction from the SELLERS account or if the value of supplies or works exceed the amount stipulated in the CONTRACT as a result of extra requirements or subsequent to variation orders, the SELLER shall upon demand from the BUYER raises the Performance Guarantee, to an amount equivalent to 10% of the total amount of the CONTRACT after the increase, within twenty days from the date of the claim. If the SELLER fails to do so the BUYER reserves the right to withhold the amount required to replenish the Performance Guarantee from SELLERS payment held with him. |
19.1 | Notwithstanding anything contained in the provision of Articles 10 Penalties For Late Deliveries & 13 Obligations and Rights hereof should the SELLER hereto fail to perform or observe any of the obligations or conditions on his part to be performed or observed under this CONTRACT or fail to meet the delivery schedule and fail to remedy the breach within 30 days after written notice from the BUYER to remedy the same, the BUYER shall be entitled, in addition to and without prejudice to any other remedy available, forthwith to terminate this CONTRACT | |
19.2 | The BUYER is entitled to call on the Bank Guarantees of Down payments (if any) and Performance Guarantee. The BUYER reserves the right to terminate the Supply CONTRACT and forfeit the Performance Guarantee without prejudice to the claim for compensation upon occurrence of the following cases: |
| If the SELLER employs fraud and manipulation in his dealings. | ||
| If the SELLER involves himself directly or indirectly in bribing any of the BUYER Staff and employees or if he participates in activities to cause damage to the interest of the BUYER. | ||
| If the SELLER goes bankrupt or insolvent. |
20.1 | All taxes, duties, stamps and other fees imposed by any authority outside UAE in connection with the execution of this CONTRACT will be for SELLERS account. All taxes, duties, stamps and fees imposed inside UAE to be for BUYERS account. |
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21.1 | The SELLER guarantees to make available at prevailing prices the spare parts of the Products purchased under this CONTRACT for a period of 20 years from the date of Final acceptance. If the SELLER continues to support the Products after 20 years, the SELLER shall make the spare parts available for the same period. | |
21.2 | The SELLER shall also submit to the BUYER prior to the first delivery, his quotation for recommended spare parts to cover two years maintenance of the Products purchased under this CONTRACT | |
21.3 | In case of an AOG, the SELLER shall supply the ordered spares within the best lead-time from the receipt of a purchase order from the BUYER. | |
21.4 | The SELLER undertakes to provide the spares ordered by the BUYER within a 4 month lead-time, from the receipt of a purchase order from the BUYER. | |
21.5 | A separate Order/CONTRACT for approved spare parts will be made between the parties if so required by the BUYER. |
22.1 | The manuals and catalogues are stipulated in Annex 2 and 9, and will be in the English language. | |
22.2 | The SELLER undertakes to provide the BUYER with the manuals and catalogues, as described in Annex 2 and 9, as DDU, Abu Dhabi, UAE | |
22.3 | The SELLER undertakes to update these documents, as necessary, for the next 20 years, at the prevailing price to the BUYER. If the SELLER continues to update the documents after 20 years, the SELLER shall make these updates available for the same period |
23.1 | The SELLERS detailed training obligations and program is stipulated in Annex 1 Technical Assistance and Annex 10 Training. |
24.1 | This CONTRACT and the rights and obligations thereof shall inure to the benefit of the parties hereto, their respective successors and assigns but no party can assign this CONTRACT to any third party/person without the written consent and on terms and conditions acceptable to the other party. |
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25.1 | All materials purchased under this CONTRACT will be constructed/manufactured in accordance with the specifications agreed upon between the parties and will be inspected by the SELLERS own system of inspecting and quality control. The BUYER, however, reserves the right to send his representatives, the number of whom shall be agreed with the SELLER, to the manufacturing plant to be present during inspection. | |
25.2 | The SELLER will notify the BUYER of the inspection dates. In the event of the BUYER declining to witness the inspection, or does not respond to the SELLERS notification within 20 days, the SELLER shall proceed to conduct the inspection, and be authorized to sign the certificate of conformance. |
26.1 | Factory Acceptance will be carried out by the SELLER according to the Factory Acceptance Test (FAT) procedure and the Factory Acceptance Certificate shall be completed as per specimen included hereto under Annex 6. The BUYER, however, reserves the right to send his representatives, the number of whom shall be agreed with the SELLER, to the manufacturing plant to be present during acceptance. | |
26.2 | The SELLER will notify the BUYER of the acceptance dates two (2) months in advance. In the event of the BUYER declining to witness the acceptance, or does not respond to the SELLERS notification within 45 days, the SELLER shall proceed to conduct the acceptance, and be authorized to sign the certificate of acceptance. | |
26.3 | A. Final Acceptance Certificate shall be completed by the BUYERS representative upon final acceptance of the Products and the certificate completed as per specimen included hereto under Annex 8 | |
26.4 | The Costs of the BUYERS representatives travel, including lodging, meals, laundry and car, to and from the SELLERS facility for domestic schedule meeting as required by this CONTRACT will be arranged and paid for by the BUYER. | |
26.5 | The SELLER shall assist the BUYER on a best-efforts basis in arranging for visas and permits for the BUYERS representatives, for entry into and exit from the SELLERS country. |
27.1 | The SELLER shall indemnify the BUYER against any liability in respect of damage to property of the BUYER, or a third party or death or injury to the BUYER or to the BUYERS personnel or a third party arising solely from the |
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performance of the CONTRACT task by the SELLERS personnel under the provision of this agreement, except where such damage is attributable to or death or injury results from an act of negligence or omission by the BUYERS personnel in which event BUYER will be liable. |
28.1 | The SELLERS employees will perform their duties in respect of the execution of this CONTRACT with care and diligence. They shall refrain from participating in the politics of the UAE and are forbidden to deal in any private business for profit in the United Arab Emirates. In the event of such an occurrence, the SELLER at his own expense will replace the employee upon request of the BUYER without any loss of time. |
29.1 | The BUYER fully understands the Hoist System HS-29900-59-1 has been qualified to the environments listed in B-E product specification BDC-302-33 which is representative of the environments anticipated for this type of equipment when installed and operated on rotorcraft throughout the world. |
30.1 | It is understood by both parties that the SELLER has not directly or indirectly entered and will not enter into a consultancy deal or any other CONTRACT with any of the Commercial firms or companies operating in the UAE, or any person to act on his behalf as an Agent or Consultant in consideration of certain amount of fees or remuneration in order to facilitate and promote the negotiation and finalization of this CONTRACT. | |
30.2 | Similarly it is understood that no commission, remuneration or fees have been or will be, through gratuities, gifts or personal payments granted either directly or indirectly or in any way conferred by the SELLER in connection with this CONTRACT to any Officer, Personnel or Civilian of UAE Armed Forces, or any UAE Government Employees working in/outside the country, as a bribe or commission for securing their signatures in connection with this CONTRACT negotiations or performance. | |
30.3 | The SELLER also assures that there is no such promise legally binding on him and if any such commitment or obligations is made in ignorance by the SELLER with any of the firms or companies of the UAE in the past the same is hereby considered non binding. | |
30.4 | If the SELLER contravenes in any way the provision of this Clause and the BUYER brings evidence to this effect, the SELLER is liable to pay the BUYER a |
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penalty of 30% of the CONTRACT value and the BUYER is entitled to terminate the CONTRACT without prejudice to his legal rights. | ||
30.5 | The SELLER agrees to update Annex 11 Product Specification with Product specification BDC-302-33 through a proper Amendment once approved from the US government. |
31.1 | If in the judgement of the Seller and before the actual delivery, certain modification/alterations are essential for improvement and safety purposes and such changes do not affect the prices and the delivery schedule, the Seller is obliged to incorporate the said modification/alteration in the product purchased under this Contract. | |
31.2 | Any mandatory modification for safety purposes shall be carried out by the Seller free of cost to the products already delivered to the Buyer. | |
31.3 | The Buyer may ask the Seller to make proposal for studies relating to specific modification for the Buyers own operational needs, all cost related to the study and implementation of such specific need shall be mutually agreed upon. | |
3.4 | The Seller shall inform the Buyer by fax/telex or any other means of communication immediately of any incident or accident involving safety of using a product, including the actions to be taken. |
32.1 | The provisions of this CONTRACT supersede all prior representation or agreements whether oral or written between the parties relating to the subject matter hereof. |
34.1 | Technical assistance shall be as specified in Annex 1 |
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35.1 | During performance of services in the UAE the SELLERS personnel shall abide by all rules and regulations existing in the U.A.E. |
36.1 | The supplies covered by this CONTRACT are subject to the USA government ruling concerning the transfer to, or the use by a third party of the supplies falling under the category described as Military Products under USA government laws and will require an export license. The parties agree to comply with all applicable US Export Control Laws. | |
36.2 | All End User Certificates required will be completed and supplied by the SELLER to the BUYER for signature within 2 months of the CONTRACT coming into force (Article 41). The BUYER will return the signed and completed End User Certificates to the SELLER within 30 days of submission by the SELLER, any delay beyond this 30 day period in returning these End User Certificates, will result in a corresponding delay in delivery of Products or Services under this CONTRACT. | |
36.3 | All export licenses or permissions required by the USA Government shall be obtained and secured by the SELLER as part of the contractual responsibility of the SELLER. | |
36.4 | In the event U.S. Export License is denied or revoked, the Buyer guarantees to take no action against SELLERS Letter of Guarantee for Good Performance and to immediately return the Letter of Guarantee to the appropriate bank for cancellation. |
37.1 | This CONTRACT shall be governed and interpreted in accordance with the laws of Switzerland | |
37.2 | The SELLER and the BUYER base their relations with regard to this CONTRACT on the principles of good will and good faith. All disputes arising in connection with the present CONTRACT, if not amicably resolved between the parties, shall be finally settled under the rules of conciliation and arbitration of the International Chamber of Commerce by one or more arbitrators appointed in accordance with the said rules. The arbitration shall take place in Lausanne/Switzerland and the arbitrators shall have the powers of amiable compositor. The decision of the Arbitration shall be final, binding and enforceable, on the parties. The language of the arbitration shall be English. |
DP3/ | 20 |
38.1 | As to the performance of this CONTRACT, any notice correspondence or communications to be given by one party to the other shall be sent to the following address:- |
38.1.1 | BUYER: |
P.O. Box 2501
Abu Dhabi
UAE
Fax No.+971 2 ###-###-####
Special Operations Command
P.O. Box 128889
Fax No +971 2 ###-###-####
38.1.2 | SELLER:- |
Breeze-Eastern Corporation
700 Liberty Avenue
Union, NJ 07083
U.S.A.
Fax No.  ###-###-####
e-mail: www.breeze-eastern.com
38.2 | In case of change of address by any party immediate notification thereof will be made by registered airmail to the other party. | |
38.3 | All notices and communications so addressed shall be deemed to have been received only on their actual receipt by the other party. |
39.1 | It is agreed by the BUYER and the SELLER that any Contract or aggregate of Contracts entered between the two parties, the total of which amounts to US Ten (10) million Dollars and above, (or the equivalent in other currencies), shall be subject to the UAE Offsets program. | |
39.2 | The SELLER undertakes to sign the Offsets Agreement and/or the Supplemental Agreement with the UAE Offsets Group in respect of such contract(s). It is agreed between the two Parties that in accordance with Article |
DP3/ | 21 |
18 herein the SELLER shall not receive his copy of the CONTRACT unless the SELLER provides a Clearance Letter signed by an authorized representative of the UOG confirming that the necessary Documentation has been signed between the SELLER and UOG |
40.1 | This CONTRACT is executed in the English Language and is comprised of Volume 1, Articles 1 through 41 with Annexes 1 through 13, which constitute the entire CONTRACT between the parties. |
40.2 | Both parties agree that the English language shall be the official language governing the conduct of the parties under this CONTRACT and all written or printed material provided by the SELLER and all communications and correspondence between the parties related to this CONTRACT shall be in the English language. |
41.1 | The CONTRACT, five (5) originals and five (5) copies in the English Language, shall become valid and effective upon signature by the duly authorized representatives of the BUYER and the SELLER. | |
41.2 | Four (4) originals and five (5) copies are for the BUYER. | |
41.3 | One (1) original is for the SELLER |
DP3/ | 22 |
OF THE UNITED ARAB EMIRATES
ABU DHABI UAE
DP3/ | 23 |
DP3/ | 24 |
Unit Price | Extended Price | |||||||||||||||||||
1. | Part Number | Description | Quantity | (USD) | (USD) | |||||||||||||||
HS-29900-59-1* | Rescue Hoist System | 10 ea | $229,804.00 | $2,298,040.00 |
* | Consists of: |
2 ea HK-116-3 Hook Assembly
2 ea CP-1700-1 Pendant Assembly
2 ea EC-14170-2 Pendant Cable Assembly
2 ea BL-11140-1 Kit, Pressure Cartridge
1 ea Operation & Maintenance Manual (Hard Copy and CD)
2. | BL-10653-3 | Load Cable | 10 ea | $ | 1,550.00 | $ | 15,500.00 | |||||||||
3. | HK-116-3 | Hook Assembly | 4 ea | $ | 5,191.00 | $ | 20,764.00 | |||||||||
4. | KT-444 | Kit Pressure Cartridge | 6 ea | $ | 1,248.00 | $ | 7,488.00 | |||||||||
4a. | Sub Total | $ | 2,341,792.00 | |||||||||||||
5. | BL-29800-1 | Hoist Assembly, Internal | 1 ea | No charge | No Charge | |||||||||||
6. | N/A | Warranty | No Charge | No Charge | ||||||||||||
7. | N/A | Training | No Charge | No Charge | ||||||||||||
8. | Shipping/Freight | DDU Abu Dhabi Int'l Airport** | $ | 1,750.00 | $ | 17,500.00 | ||||||||||
TOTAL | $ | 2,359,292.00 |
** | Shipping charges are per ship set and based on Inland freight, airfreight from JFK to Abu Dhabi International Airport and insurance coverage. |
Unit Price* | Extended Price | |||||||
Quantity | (USD) | (USD) | ||||||
6 ea | $ | 213,970.00 | $ | 1,283,820.00 | ||||
Shipping Freight | $ | 1,750.00 | 10,500.00 | |||||
TOTAL | $ | 1,294,320.00 |
* | Option Price is valid for order placement within sixty (180) days of the date the Contract becomes valid and effective. |
DP3/ | 25 |
Month | Part Number | Quantity | ||||
September 2007 | HS-29900-59-1 | 1 | ||||
BL-10653-3 | 10 | |||||
HK-116-3 | 4 | |||||
KT-444 | 6 | |||||
October 2007 | BL-29800-1 | 1 | ||||
HS-29900-59-1 | 2 | |||||
November 2007 | HS-29900-59-1 | 2 | ||||
February 2008 | HS-29900-59-1 | 2 | ||||
March 2008 | HS-29900-59-1 | 1 | ||||
April 2008 | HS-29900-59-1 | 2 |
* | Shipment of the first shipset is contingent upon receipt of our Export License. |
DP3/ | 26 |
1) | With reference to the contract no , concluded on between GHQ Armed Forces, General Purchasing Directorate, Abu Dhabi, UAE (hereinafter called the BUYER 1st party) and ( hereinafter called the SELLER-2nd party) for the supply of as stipulated in the contract, stipulating that an amount of USD( Cents, US Dollars), representing twenty percent (20%) of the value of the contract shall be paid in advance to the SELLER, we the undersigned undertake to hold at the disposal of the GHQ Armed Forces, Abu Dhabi the said sum as a guarantee for the advance payment and it will become effective from the date at which the BUYER makes remittance of the amount to the account of the SELLER. | |
2) | This guarantee is unconditionally payable to the BUYER upon first written demand by him without reference to the SELLER stating that the SELLER has failed to fulfil the terms of the contract. | |
3) | This guarantee shall be valid for the entire period of the contract but shall be progressively reduced in proportion to the partial deliveries in accordance with the terms of the contract referred to above by the amount confirmed by the finance department as having been received towards the settlement of the advance and will expire automatically upon completion of full deliveries under this contract without returning the documents to the bank. | |
4) | If deliveries are not finalised within the stipulated period of the contract and the cancellation has also not been notified, the guarantee will progressively and automatically be extended until such time as the confirmation is given by the Director Government Accounts, Abu Dhabi Department that either the delivery of outstanding items is completed or the advance has been fully recovered. |
DP3/ | 27 |
1) | With reference to the contract no , concluded on between GHQ Armed Forces, General Purchasing Directorate, Abu Dhabi, UAE (hereinafter called the BUYER 1st party) and ( hereinafter called the SELLER 2nd party) for the supply of and in accordance with Article 18 of the said contract, we the undersigned undertake to hold at the disposal of the GHQ Armed Forces, Abu Dhabi the sum of USD( Cents, US Dollars), representing ten percent (10%) of the value of the contract as a guarantee for the fulfillment of the terms and conditions of the contract. | |
2) | This guarantee is unconditionally payable to the BUYER upon first written demand by him without reference to the SELLER stating that the SELLER has failed to fulfil the terms of the contract. This guarantee shall become effective from the date indicated below and will remain valid until final acceptance of the last deliverable item under this contract but shall be progressively reduced in proportion to the partial deliveries in accordance with the terms of the contract. This guarantee will then automatically be reduced to an amount of USD ( Cents), representing five percent (5%) of the value of the delivered equipment, and shall then remain valid as a warranty guarantee until expiration of the warranty period as stipulated in Article 14 of the contract. | |
3) | If the obligations of the SELLER are not finalised within the stipulated period of the contract and the cancellation has also not been notified, the guarantee will progressively and automatically be extended until such time as the confirmation is given by the Director General Purchasing Directorate, GHQ Armed Forces that the obligations under the contract are fulfilled. | |
4) | This guarantee will be returned upon the fulfillment of the obligations. | |
5) | Date of guarantee |
DP3/ | 28 |
CERTIFICATE NO | : | |||
CONTRACT NO | : | |||
DOCUMENTARY CREDIT NO | : | |||
BUYER | : | GHQ Armed Forces | ||
General Purchasing Directorate | ||||
Post Box No. 2501 | ||||
Abu Dhabi | ||||
UAE | ||||
SELLER | : | Breeze-Eastern Corporation | ||
700 Liberty Ave. | ||||
Union, NJ 07083 | ||||
U.S.A. |
ITEM NUMBER | DESCRIPTION | DDU PRICE | ||||||
1 | Item Description | |||||||
AUTHORISED SIGNATURE OF THE BUYER | DATE |
DP3/ | 29 |
CERTIFICATE NO | : | |||
DELIVERY NOTE NO | : | |||
CONTRACT NO | : | |||
DOCUMENTARY CREDIT NO | : | |||
BUYER | : | GHQ Armed Forces | ||
General Purchasing Directorate | ||||
Post Box No. 2501 | ||||
Abu Dhabi | ||||
UAE | ||||
SELLER | : | Breeze-Eastern Corporation | ||
700 Liberty Ave. | ||||
Union, NJ 07083 | ||||
U.S.A. |
ITEM NUMBER | DESCRIPTION | DDU PRICE | ||||||
1 | Item Description | |||||||
AUTHORISED SIGNATURE OF THE BUYER | DATE |
DP3/ | 30 |
CERTIFICATE NO | : | |||
CONTRACT NO | : | |||
DOCUMENTARY CREDIT NO | : | |||
BUYER | : | GHQ Armed Forces | ||
General Purchasing Directorate | ||||
Post Box No. 2501 | ||||
Abu Dhabi | ||||
UAE | ||||
SELLER | : | Breeze-Eastern Corporation | ||
700 Liberty Ave. | ||||
Union, NJ 07083 | ||||
U.S.A. |
ITEM NUMBER | DESCRIPTION | DDU PRICE | ||||||
1 | Item Description | |||||||
COMMANDER/DEPUTY COMMANDER SPECIAL OPERATIONS COMMAND | DATE |
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DP3/ | 32 |
700 Liberty Ave.
Union, NJ 07083
DP3/ | 33 |
TRAINING SYLLABUS
FOR HS-29900-XX RESCUE HOIST SYSTEM
1.0 | INTRODUCTION | |
1.1 | This training plan is addresses Cable Management and Line Maintenance Training for the HS-29900-XX Rescue Hoist System. The Rescue Hoist System is comprised of a Hoist Assembly, Pendant Control and Grip Assembly, Crew Control Panel Assembly, and Pilot Control Panel Assembly. | |
2.0 | SCOPE | |
2.1 | The Training Program will provide Breeze-Eastern recommendations for maintenance, removal and replacement of components at the Line Level of Maintenance. | |
2.2 | Training will also include instructions on how to operate, maintain, repair, and test the equipment, and detail the interrelationship between the Hoist, Controller and Pendant Control Assembly. | |
2.3 | Training may be conducted at either Breeze-Easterns Union, NJ facility or at the users facility. However, it is the responsibility of the user to supply a Rescue Hoist System for this training, either shipped to Breeze-Eastern prior to this training, or installed on the aircraft at an users facility. One (1) instructor from Breeze-Eastern are required for this course. | |
3.0 | PURPOSE | |
3.1 | The purpose of the training session is to provide the student(s) with the knowledge and know-how to operate, maintain and repair the equipment in support of line level activities. | |
4.0 | TRAINING COURSE | |
4.1 | The training courses will be conducted and accomplished in two (2) working days. Each day shall consist of 8 hours per day plus one hour lunch break. | |
4.2 | The course content will be based on 10% theory and 90% practical. | |
4.2.1 | Theory will consist of Breeze-Eastern system information and design, theory of operation, detailed information on replacement of LRUs and SRUs, test equipment and testing. |
DP3/ | 34 |
4.2.2 | Practical Training will be a hands-on demonstration. Line level maintenance for the Hoist Assembly, Controller and Pendant will include as a minimum: |
a. | Operation | ||
b. | Flight Line Handling Techniques | ||
c. | Cable Reel-In and Cable Reel-Out | ||
d. | Cable Inspection and Maintenance | ||
e. | Pre-Flight Inspection | ||
f. | Post-Flight Inspection | ||
g. | Periodic Inspection and Criteria | ||
h. | Load Ring/Sling Rollover on Hoist Cable Hooks | ||
i. | Operation of Limit Switches | ||
j. | Adjustment of Limit Switches | ||
k. | Cable Removal and Replacement | ||
l. | Tension Roller Removal and Replacement | ||
m. | Swivel Hook Removal and Replacement | ||
n. | Bumper Assembly Removal and Replacement | ||
o. | Cable Cutter Removal and Replacement | ||
p. | Motor Assembly Removal and Replacement | ||
q. | Controller Assembly Removal and Replacement | ||
r. | Control Pendant Assembly Removal and Replacement | ||
s. | Crew Control Pane Assembly Removal and Replacement | ||
t. | Pilot Control Panel Assembly Removal and Replacement |
5.0 | DOCUMENTATION | |
5.1 | The training documentation will be an Operation and Maintenance Manual for the HS-29900-XX Rescue Hoist System, as well as applicable Breeze-Eastern assembly and subassembly drawings. Quantity one hard copy for each student and one softcopy for the whole training session. | |
6.0 | PERSONNEL | |
6.1 | Breeze-Eastern will provide all necessary personnel required to train the students in line level maintenance for the Rescue Hoist System. |
DP3/ | 35 |
PRODUCT SPECIFICATION

PERFORMANCE (TYPICAL) | DISPLAYS | ||||||||||
Rated load | 600 lb (272 kg) | Digital cable payout | |||||||||
Speed @ 600lb 0-350 ft/min | (01.78m/s) | Motor Hot | |||||||||
Cable length | 295 ft (90 m) | Full In | |||||||||
System weight | 110 lb (50 kg) | Full Out | |||||||||
Cycle counter | |||||||||||
POWER REQUIREMENTS (Aircraft Supply) | SAFETY FEATURES | ||||||||||
Voltage | 115 VAC, 3ph, 400 HZ | Electronic overload protection | |||||||||
Electric current | 24 A/Phase | Safety clutch | |||||||||
Control power | 28 VDC, 5A | Redundant limit switches | |||||||||
Cable cutter | 28 VDC, 5 A pulse | Mechanical reif-safe brake | |||||||||
Cable tension control (bidirectional) | |||||||||||
HOIST CONTROL | Automatic slowdown at travel ends | ||||||||||
Operator | Up/Down variable speed | Redundant cable cut switches | |||||||||
Pilot | Up/Down fixed speed | Cable four sensor | |||||||||
OPTIONAL FEATURES | |||||||||||
Various- control pendant designs | |||||||||||
Various hook designs | |||||||||||
Various control station designs | |||||||||||
Hover trim / search light control | |||||||||||
NVG compatible displays |
DP3/ | 36 |
SPECIMEN OF CERTIFICATE OF ORIGIN
OF
ORIGIN
DESIGNATION | P/N | ||||
Location, Date Stamp of the Company Signature | ||||
Title | ||||
DP3/ | 37 |
Manufacturers Name: | Breeze-Eastern Corporation | Date: 1/22/07 | ||||||
Equipment Designation: | HS-29900-59 | |||||||
Manufacturers P/N: | HS-29900-59 | Yes o No o | ||||||
P/N: Limited calendar operating material | ||||||||
STORAGE | ||||||||
Limited Storage Material: | Yes þ No o | |||||||
Maximum duration (months) | 36 Months | |||||||
Specific actions during storage: | Yes o No þ | |||||||
Specific actions at limit of storage: | ||||||||
To be scrapped: | Yes o No þ | |||||||
To be revalidated: | Yes þ No o | |||||||
Works to be done: | ATP, BQC-284-985 | |||||||
Specific storage conditions (Position, temperature, etc.): | ||||||||
-40° C to+85° C | Yes þ No o | |||||||
Humidity (max): 80% per DO-160D, section 4, section 6, category A | ||||||||
CONDITIONING | ||||||||
Specific conditioning conditions: | ||||||||
- in the short term: | In Breeze-Eastern | Yes þ No o | ||||||
original container. | ||||||||
Description: | ||||||||
See TD-00-018 for specific instructions. | ||||||||
- in the long term: | Inspection, Test | Yes þ No o | ||||||
Description: | ||||||||
See TD-00-018 for specific requirements. | ||||||||
Breeze-Eastern Corporation | UAE | |||||||
Name: T. F. McLoughlin | ||||||||
Date: January 22, 2007 | ||||||||
Signature: | ||||||||
DP3/ | 38 |