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HomeMy WebLinkAbout287461 2 AGREEMENT 3 THIS AGREEMENT is made and entered into this 15th day of November, 2016, by 4 and between the COUNTY OF FRESNO, a Political Subdivision of the State of California, 5 hereinafter referred to as "COUNTY", and Helicopter Engine Repair & Overhaul Services, Inc. 6 · (H.E.R.O.S. Inc.), a California corporation, whose address is 24834 Avenue Rockefeller, Valencia, 7 CA 91355, hereinafter referred to as "CONTRACTOR". 8 WIT N ES SETH: 9 WHEREAS, COUNTY, through its Sheriff-Coroner's Office, needs a contractor to provide 10 specialty overhaul and repair services for turbine engines, engine gear boxes and related 11 components for its aircraft support unit that consist of two (2) McDonnell Douglas (MD) 500 12 helicopters; 13 WHEREAS, CONTRACTOR has been providing an exceptional quality of work to 14 COUNTY's aircraft since 2013 and COUNTY wishes to continue to contract with CONTRACTOR 15 for such services. 16 NOW, THEREFORE, in consideration of the mutual covenants, terms and conditions herein 17 contained, the parties hereto agree as follows: 18 1.OBLIGATIONS OF THE CONTRACTOR 19 A.CONTRACTOR shall provide specialty overhaul and repair services for the 20 turbine engines, engine gear boxes and related components for COUNTY'S aircraft support unit, 21 currently consisting of two (2) McDonnell Douglas (MD) 500 helicopters and will undertake only 22 the work described in the Work Order Estimate. Removal and/or reinstallation of any engine 23 module or component is the responsibility of the aircraft/engine owner/operator. HER OS, Inc. 24 does not undertake any work, which is not within the limitations imposed by its Repair Station 25 Certificate and reserves the right to substitute any part quoted herein with another FAA approved 26 part. 27 B.CONTRACTOR warrants that all services, parts and components it 28 provides under this Agreement shall comply with all applicable laws, regulations and professional -1- 1 standards. CONTRACTOR warrants all services, parts and components it provides under this 2 Agreement as set forth in the Warranty Policy, attached hereto as Exhibit "E" and incorporated 3 herein by this reference. 4 C.CONTRACTOR will provide COUNTY a quarterly status report to include 5 total sales, scheduled and unscheduled maintenance event summaries and recommendations to 6 reduce maintenance costs. 7 D.CONTRACTOR will provide two days of field service and maintenance 8 training per year at no charge to the COUNTY. Training aids and manuals to be provided by 9 CONTRACTOR. The subject training will take place at the CONTRACTOR facility in Valencia 10 California. Lodging is not included. 11 2.TERM 12 The term of this Agreement shall be for a period of three (3) years, 13 commencing on November 15, 2016 through and including November 15, 2019. This Agreement 14 may be extended for two (2) additional consecutive twelve (12) month periods upon written 15 approval of both parties no later than thirty (30) days prior to the first day of the next twelve (12) 16 month extension period. The Sheriff or his or her designee is authorized to execute such written 17 approval on behalf of COUNTY based on CONTRACTOR'S satisfactory performance. 18 3.TERMINATION 19 A.Non-Allocation of Funds -The terms of this Agreement, and the services to 20 be provided hereunder, are contingent on the approval of funds by the appropriating government 21 agency. Should sufficient funds not be allocated, the services provided may be modified, or this 22 Agreement terminated, at any time by giving the CONTRACTOR thirty (30) days advance written 23 notice. 24 B.Breach of Contract -The COUNTY may immediately suspend or terminate 25 this Agreement in whole or in part, where in the determination of the COUNTY there is: 26 1)An illegal or improper use of funds; 27 28 2)A failure to comply with any term of this Agreement; 3)A substantially incorrect or incomplete report submitted to the -2- 1 COUNTY; 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 4)Improperly performed service. In no event shall any payment by the COUNTY constitute a waiver by the COUNTY of any breach of this Agreement or any default which may then exist on the part of the CONTRACTOR. Neither shall such payment impair or prejudice any remedy available to the COUNTY with respect to the breach or default. The COUNTY shall have the right to demand of the CONTRACTOR the repayment to the COUNTY of any funds disbursed to the CONTRACTOR under this Agreement, which in the judgment of the COUNTY were not expended in accordance with the terms of this Agreement. The CONTRACTOR shall promptly refund any such funds upon demand. C.Without Cause -Under circumstances other than those set forth above, this Agreement may be terminated by COUNTY upon the giving of thirty (30) days advance written notice of an intention to terminate to CONTRACTOR. 4.COMPENSATION/INVOICING: COUNTY agrees to pay CONTRACTOR and CONTRACTOR agrees to receive compensation in accordance with the fees and rates set forth in Exhibits "B", "C" and "D", attached hereto and incorporated herein by this reference. CONTRACTOR shall submit monthly invoices in triplicate to the County of Fresno Sheriff­ Coroner's Business Office, 2200 Fresno Street, PO Box 1788, Fresno, CA 93717, as applicable, not later than fifteen (15) days after the end of the month in which services are rendered. Payments by COUNTY shall be in arrears, for services provided during the preceding month, a minimum of forty-five (45) days after receipt and verification of CONTRACTOR'S invoices by COUNTY. In no event shall services performed under this Agreement be in excess of Nine Hundred Thousand and No/1 ODs Dollars ($900,000) during the term of this Agreement, including the potential two (2) year extensions. It is understood that all expenses incidental to CONTRACTOR'S performance of services under this Agreement shall be borne by CONTRACTOR. 5.INDEPENDENT CONTRACTOR: In performance of the work, duties and -3- 1 obligations assumed by CONTRACTOR under this Agreement, it is mutually understood and 2 agreed that CONTRACTOR, including any and all of the CONTRACTOR'S officers, agents, and 3 employees will at all times be acting and performing as an independent contractor, and shall act in 4 an independent capacity and not as an officer, agent, servant, employee, joint venturer, partner, or 5 associate of the COUNTY. Furthermore, COUNTY shall have no right to control or supervise or 6 direct the manner or method by which CONTRACTOR shall perform its work and function. 7 However, COUNTY shall retain the right to administer this Agreement so as to verify that 8 CONTRACTOR is performing its obligations in accordance with the terms and conditions thereof. 9 CONTRACTOR and COUNTY shall comply with all applicable provisions of 10 law and the rules and regulations, if any, of governmental authorities having jurisdiction over 11 matters the subject thereof. 12 Because of its status as an independent contractor, CONTRACTOR shall have 13 absolutely no right to employment rights and benefits available to COUNTY employees. 14 CONTRACTOR shall be solely liable and responsible for providing to, or on behalf of, its 15 employees all legally-required employee benefits. In addition, CONTRACTOR shall be solely 16 responsible and save COUNTY harmless from all matters relating to payment of 17 CONTRACTOR'S employees, including compliance with Social Security withholding and all other 18 regulations governing such matters. It is acknowledged that during the term of this Agreement, 19 CONTRACTOR may be providing services to others unrelated to the COUNTY or to this 20 Agreement. 21 6.MODIFICATION: Any matters of this Agreement may be modified from time 22 to time by the written consent of all the parties without, in any way, affecting the remainder. 23 7.NON-ASSIGNMENT: Neither party shall assign, transfer or sub-contract this 24 Agreement nor their rights or duties under this Agreement without the prior written consent of the 25 other party. 26 8.HOLD HARMLESS: CONTRACTOR agrees to indemnify, save, hold 27 harmless, and at COUNTY'S request, defend the COUNTY, its officers, agents, and employees 28 from any and all costs and expenses, damages, liabilities, claims, and losses occurring or -4- 1 resulting to COUNTY in connection with the performance, or failure to perform, by 2 CONTRACTOR, its officers, agents, or employees under this Agreement, and from any and all 3 costs and expenses, damages, liabilities, claims, and losses occurring or resulting to any person, 4 firm, or corporation who may be injured or damaged by the performance, or failure to perform, 5 of CONTRACTOR, its officers, agents, or employees under this Agreement. 6 9.INSURANCE 7 Without limiting the COUNTY's right to obtain indemnification from 8 CONTRACTOR or any third parties, CONTRACTOR, at its sole expense, shall maintain in full 9 force and effect, the following insurance policies or a program of self-insurance, including but not 10 limited to, an insurance pooling arrangement or Joint Powers Agreement (JPA) throughout the 11 term of the Agreement: 12 A.Commercial General Liability 13 Commercial General Liability Insurance with limits of not less than Two 14 Million Dollars ($2,000,000) per occurrence and an annual aggregate of Three Million Dollars 15 ($3,000,000). This policy shall be issued on a per occurrence basis. COUNTY may require 16 specific coverages including completed operations, products liability, contractual liability, 17 Explosion-Collapse-Underground, fire legal liability or any other liability insurance deemed 18 necessary because of the nature of this contract. 19 B.Automobile Liability 20 Comprehensive Automobile Liability Insurance with limits for bodily injury of 21 not less than Two Hundred Fifty Thousand Dollars ($250,000.00) per person, Five Hundred 22 Thousand Dollars ($500,000.00) per accident and for property damages of not less than Fifty 23 Thousand Dollars ($50,000.00), or such coverage with a combined single limit of Five Hundred 24 Thousand Dollars ($500,000.00). Coverage should include owned and non-owned vehicles used 25 in connection with this Agreement. 26 C.Professional Liability 27 If CONTRACTOR employs licensed professional staff, (e.g., Ph.D., R.N., 28 L.C.S.W., M.F.C.C.) in providing services, Professional Liability Insurance with limits of not less -5- 1 than One Million Dollars ($1,000,000.00) per occurrence, Three Million Dollars ($3,000,000.00) 2 annual aggregate. 3 D.Worker's Compensation 4 A policy of Worker's Compensation insurance as may be required by the 5 California Labor Code. 6 CONTRACTOR shall obtain endorsements to the Commercial General Liability 7 insurance naming the County of Fresno, its officers, agents, and employees, individually and 8 collectively, as additional insured, but only insofar as the operations under this Agreement are 9 concerned. Such coverage for additional insured shall apply as primary insurance and any other 10 insurance, or self-insurance, maintained by COUNTY, its officers, agents and employees shall be 11 excess only and not contributing with insurance provided under CONTRACTOR's policies herein. 12 This insurance shall not be cancelled or changed without a minimum of thirty (30) days advance 13 written notice given to COUNTY. 14 Within Thirty (30) days from the date CONTRACTOR signs and executes this 15 Agreement, CONTRACTOR shall provide certificates of insurance and endorsement as stated 16 above for all of the foregoing policies, as required herein, to the County of Fresno, (Name and 17 Address of the official who will administer this contract), stating that such insurance coverage have 18 been obtained and are in full force; that the County of Fresno, its officers, agents and employees 19 will not be responsible for any premiums on the policies; that such Commercial General Liability 20 insurance names the County of Fresno, its officers, agents and employees, individually and 21 collectively, as additional insured, but only insofar as the operations under this Agreement are 22 concerned; that such coverage for additional insured shall apply as primary insurance and any 23 other insurance, or self-insurance, maintained by COUNTY, its officers, agents and employees, 24 shall be excess only and not contributing with insurance provided under CONTRACTOR's policies 25 herein; and that this insurance shall not be cancelled or changed without a minimum of thirty (30) 26 days advance, written notice given to COUNTY. 27 In the event CONTRACTOR fails to keep in effect at all times insurance 28 coverage as herein provided, the COUNTY may, in addition to other remedies it may have, -6- 1 suspend or terminate this Agreement upon the occurrence of such event. 2 All policies shall be issued by admitted insurers licensed to do business in the 3 State of California, and such insurance shall be purchased from companies possessing a current 4 A.M. Best, Inc. rating of A FSC VII or better. 5 10.AUDITS AND INSPECTIONS: The CONTRACTOR shall at any time during 6 business hours, and as often as the COUNTY may deem necessary, make available to the 7 COUNTY for examination all of its records and data with respect to the matters covered by this 8 Agreement. The CONTRACTOR shall, upon request by the COUNTY, permit the COUNTY to 9 audit and inspect all of such records and data necessary to ensure CONTRACTOR'S compliance 10 with the terms of this Agreement. 11 If this Agreement exceeds ten thousand dollars ($10,000.00), CONTRACTOR 12 shall be subject to the examination and audit of the Auditor General for a period of three (3) years 13 after final payment under contract (Government Code Section 8546.7). 14 11.NOTICES: The persons and their addresses having authority to give and 15 receive notices under this Agreement include the following: 16 17 18 COUNTY COUNTY OF FRESNO Sheriff-Coroner Air Support Unit 2200 Fresno Street Fresno, CA 93721 CONTRACTOR Helicopter Enoine Repair & Overhaul Services. Inc. 24834 Avenue Rockefeller Valencia, CA 91355 19 All notices between the COUNTY and CONTRACTOR provided for or 20 permitted under this Agreement must be in writing and delivered either by personal service, by 21 first-class United States mail, by an overnight commercial courier service, or by telephonic 22 facsimile transmission. A notice delivered by personal service is effective upon service to the 23 recipient. A notice delivered by first-class United States mail is effective three COUNTY business 24 days after deposit in the United States mail, postage prepaid, addressed to the recipient. A notice 25 delivered by an overnight commercial courier service is effective one COUNTY business day after 26 deposit with the overnight commercial courier service, delivery fees prepaid, with delivery 27 instructions given for next day delivery, addressed to the recipient. A notice delivered by 28 telephonic facsimile is effective when transmission to the recipient is completed (but, if such -7- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 transmission is completed outside of COUNTY business hours, then such delivery shall be deemed to be effective at the next beginning of a COUNTY business day), provided that the sender maintains a machine record of the completed transmission. For all claims arising out of or related to this Agreement, nothing in this section establishes, waives, or modifies any claims presentation requirements or procedures provided by law, including but not limited to the Government Claims Act (Division 3.6 of Title 1 of the Government Code, beginning with section 810). 12.GOVERNING LAW: Venue for any action arising out of or related to this Agreement shall only be in Fresno County, California. The rights and obligations of the parties and all interpretation and performance of this Agreement shall be governed in all respects by the laws of the State of California. 13.DISCLOSURE OF SELF-DEALING TRANSACTIONS This provision is only applicable if the CONTRACTOR is operating as a corporation (a for-profit or non-profit corporation) or if during the term of the agreement, the CONTRACTOR changes its status to operate as a corporation. Members of the CONTRACTOR's Board of Directors shall disclose any self­ dealing transactions that they are a party to while CONTRACTOR is providing goods or performing services under this agreement. A self-dealing transaction shall mean a transaction to which the CONTRACTOR is a party and in which one or more of its directors has a material financial interest. Members of the Board of Directors shall disclose any self-dealing transactions that they are a party to by completing and signing a Self-Dealing Transaction Disclosure Form, attached hereto as Exhibit A and incorporated herein by reference, and submitting it to the COUNTY prior to commencing with the self-dealing transaction or immediately thereafter. 14.ENTIRE AGREEMENT: This Agreement constitutes the entire agreement between the CONTRACTOR and COUNTY with respect to the subject matter hereof and supersedes all previous Agreement negotiations, proposals, commitments, writings, advertisements, publications, and understanding of any nature whatsoever unless expressly -8- 1 included in this Agreement. 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 -9- 1 IN WITNESS WHEREOF , the parties hereto have executed this Agreement as of the day 2 and year first hereinabove written . 3 COUNTY OF FRESNO 4 5 6 7 8 9 10 DATE : 11 12 13 14 15 ~~~~~~~~~~~~~~~~--- Dan iel 16 1 17 18 FOR ACCOUNTING USE ONLY: ORG No .: 31113350 19 Account No.: 7205/7206 20 21 22 23 24 25 26 27 28 Requisition No .: 3111707026 -10- Ernest" uddy Medes, Chairman , Board of Supervisors ATTEST: BERNICE E . SEIDEL , Clerk Board of Supervisors By ~~ DA~op Deputy DATE : ___ N_ov _:_ I 6 1 ~-.<.....L.:\ LD=----- RE;'IEWED &'RE,1 0MMENDED FOR APPROVAL 5 ,.W' M(" \A,.,.o APPROVED AS TO ACCOUNTING FORM V ick i C row CPA, Aud1 r ontroller/Treasurer-Tax Collecto r EXHIBIT A SELF-DEALING TRANSACTION DISCLOSURE FORM In order to conduct business with the County of Fresno (hereinafter referred to as "County"), members of a contractor's board of directors (hereinafter referred to as "County Contractor"), must disclose any self-dealing transactions that they are a party to while providing goods, performing services, or both for the County. A self-dealing transaction is defined below: "A self-dealing transaction means a transaction to which the corporation is a party and in which one or more of its directors has a material financial interest" The definition above will be utilized for purposes of completing this disclosure form. INSTRUCTIONS (1)Enter board member's name, job title (if applicable), and date this disclosure is being made. (2)Enter the board member's company/agency name and address. (3)Describe in detail the nature of the self-dealing transaction that is being disclosed to the County. At a minimum, include a description of the following: a.The name of the agency/company with which the corporation has the transaction; and b.The nature of the material financial interest in the Corporation's transaction that the board member has. (4)Describe in detail why the self-dealing transaction is appropriate based on applicable provisions of the Corporations Code. (S)Form must be signed by the board member that is involved in the self-dealing transaction described in Sections (3) and (4). Page 1 (1)Company Board Member Information:Name: Date: Job Title: (Z)Company/Agency Name and Address: (3)Disclosure (Please describe the nature of the self-dealing transaction you are a party to): (4)Explain why this self-dealing transaction is consistent with the requirements of Corporations Code 5233 (a): (5) Authorized SignatureSignature: I I Date: I Page 2 EXHIBIT "B" I DISCOUNTS/ RATES Service Provided Discount Hourly Labor Rate $95.00 per hour Rework Parts Time and Material New RR Parts List less 10% PMA Parts List Less 22 % Serviceable Parts List Less 36% -- Accessorv Flat Rates See attached Platinum pricing Rental Flat Rates See exhibit "C" H.E.R.0.S. Inc. 24834 Avenue Rockefeller Valencia Ca. 91355 Page 3 EXHIBIT "C" Rental Rates Per Flight Houri 2. 5 Cycles per Hour, Rental Rates are as follows: En!!:ine Compressor Gearbox Turbine Accessory Flat Rates Platinum Level Test Cell Fees Engine/ Module Full performance Test Series II 165.00 32.00 28.00 - -65.00 See attached Price List $3,600.00 H.E.R.O.S. Inc. 24834 Avenue Rockefeller Valencia Ca. 91355 Page 4 EXHIBIT "D" H.E.R�(J 1.S. 2013-2015 PLATINUM PRICING PROGRAM HELICOPTER ENGINE REPAIR OVERHAUL SERVICES PART NUMBERS OVERHAUL/EXCHANGE OUTRIGHT Model Eligible Cnr"* -·Out List P . Pl p · List P . 250-C 18 23057341 I 2524527-24 23070600 I 2524527-26 T63-A-700 23057342 I 2524909-6 2307060 I / 2524909-8 $ 17,000.00 16,000.00 Fuel 250-C20B 23057344 I 2524644-29 23070606 I 2524644-31 $ 6,900.00 $6,200.00 $ Controls T63-A-720 23057345 I 2524911-6 23070607 I 2524911-8 250-C20R Various -Call for Eligibl� P/N's 23070609 /2549065-6 CALL FOR QUOTE 250-C30 23059933 I 2549092-3 23087146 / 2549092-8 $ 7,100.00 $6,400.00 OVERHAUL OR EXCHANGE ... IT DOESN'T MATTER ... the ONLY item subject to additional billing is the 2543598 Bellows Assembly. Customers enrolled in the H.E.R.O.S. Inc. Platinum Pricing Program will receive exlusive pricing on units that require Bellows replacement. Call for details. PART NUMBERS OVERHAUL/EXCHANGE OUTRIGHT Model Eligible Core* 0 List P . Pl ·· p · List Price Pia tin 11111 P · - 250-CI 8 23057867 I 2524528-13 23065119 / 2524528-14 T63-A-700 23057868 / 2524910-4 23065120 I 2524910-5 $ 4,900.00 $ 4,100.00 $ 6,250.00 $ 5,625.00 23057870 I 2524769-13 23065121 / 2524769-14 PT 250-C208/R 23057869 I 2524667-14 23065123 / 2524667-15 Governors 23076061 I 2549170-1 23086749 I 2549170-2 $ 5,800.00 $ 5,100.00 $ 7,500.00 $ 6,750.00 T63-A-720 23057871 / 2524912-4 23065122 / 2524912-5 $ 4,900.00 $ 4,100.00 $ 6,250.00 $ 5,625.00 23057873 I 2524692-10 23065125 I 2524692-11 $ 4,900.00 $ 4,100.00 $ 7,250.00 $ 6,525.00 250-C30**23076063 I 2549172-1 23086751 / 2549172-2 $ 5,800.00 $ 5,100.00 CALL FOR QUOTE OVERHAUL OR EXCHANGE ... IT DOESN'T MATTER ... Prices are NOT subject to a1hlitional billing!! Series I & 11 PT Governor cores that do NOT have the new style cover (CEB-1330) can be exchanged for $5,750 ($5,175 after your aliscount). Series IV PT Governor cores that do NOT have the new style cover (CEB 73-3070) can be exchanged for $6,250 ($5,625 after your aliscount). **Covers all models except C30G *Part numbers listed and subsequent are eligible; however, cores exposed to fire & water submersion are su�ject to additional charges.Page 5 H.E.R �i"iS. 2013-2015 PLATINUM PRICING PROGRAM HELICOPTER ENGINE REPAIR OVERHAUL SERVICES PART NUMBERS OVERH AUUEXCHANGE OUTRIGHT Model 250-Cl 8 Fuel Pumps 250-C20B 250-C28/C30 250-C30/S Eligible Core* 0 386500-4 I 6899253 386500-4 I 6899253 23003114 23003114 6896822 I 388100-5 6896822 I 388100-5 6896810 I 394400-1 6896810 I 394400-1 !$ $ $ $ 2,000.00 $ 1,695.00 $ 6,520.00 $ 5,850.00 2,000.00 $ 1,695.00 $ 5,000.00 $ 4,500.00 2,250.00 $ 2,025.00 $ 8,500.00 $ 7,650.00 2,250.00 $ 2,025.00 $ 8,500.00 $ 7,650.00 Price is exclusive of the Gear Sets ONLY! ($J,SOOJ Main housings, Carbon Seals, Bearings & Drive Shafts are covered. Customers enrolled in the H.E.R.O.S.Inc. Platinum Pricing Program will receive exlusive pricing on units that require Gear Set replacement. Call for details. PART NUMBERS Model Eligible C,w"'* Out OVERHAUUEXCHANGE List P . Plllt. p ·List P . OUTRIGHT Piaf p · - 250-CI 8 6874979 6874979 $ 1,100.00 900.00 $T63-A-700 $ 1,500.00 Bleed 250-C20 Any Part Number 23053176 $ 800.00 $700.00 $1,150.00 T63-A-720 Valves 250-C20R 23038951 23073207 $ 1,100.00 $900.00 $2,200.00 250-C28**Any Part Number 23074227 $ 1,900.00 $1,700.00 $4,975.00 250-C30**Any Part Number 23073353 $ 1,900.00 $1,700.00 Cl8 & C20 Bleed Valves -OVERHAUL OR EXCHANGE ... IT DOESN'T MATTER ... Prices are NOT subject to additional billing!! C20R Bleed Valve price is exclusive ofthe Body & Cover ONLY. C28 & C30 Bleed Valve price is exclusive of the Mid-Body ONLY. $ 1,350.00 $ 1,035.00 $ 2,000.00 $ 4,475.00 PART NUMBERS OVERHAUUEXCHANGE OUTRIGHT Model Eligible Core*- 250-CI 8 6852020 I 23077706 T63-A-700 Fuel Series II 6890917 I 23077068 Nozzles Series IV 6899001 /23077067 Outgoing List Price M250-10605 M250-10603 $ 1,550.00 M250-I 0604 ( 11 Thread) M250-l 0606 (7 Thread) Platinum Price List Price $ 2,500.00 $ 1,350.00 $ 2,850.00 OVERHAUL OR EXCHANGE ... IT DOESN'T MATTER ... Prices are NOT subject to additional billing!! *Part numbers listed and subsequent are eligible; however, cores exposed to fire & water submersion are subject to additional charges. Platinum Price $ 2,250.00 $ 2,565.00 Page 6 EXHIBIT "E" H.E.R.O.S., Inc. FAA CRS HEFR202K 627 Ruberta Ave. Glendale, CA 91201 Tel: 818-265-9730 Fax: 818-265-9731 E-mail: info@herosinc.com WARRANTY POLICY. DISCLAIMER OF IMPLIED WARRANTIES, LIMITED WARRANTY, ACKNOWLEDGMENT AND ACCEPTANCE Sales of parts and overhauled components; overhaul and repair services FOLLOWING EXPLAINS WARRANTIES PROVIDED IN CONJUNCTION WITH WORK ORDER ESTIMATES (WOE) PRESENTED FOR YOUR APPROVAL AND SALE OF ANY NEW OR SERVICEABLE PARTS AS WELL AS EXCHANGE COMPONENTS,ACCESSORIES AND ENGINES (UNIT) l.By approving the WOE, in the form of either signing, or revising your Purchase Order (PO) or by issuing a verbal authorization, YOU (CUSTOMER) ARE ACKNOWLEDGING AND ACCEPTING THE FOLLOWING TERMS REGARDING WARRANTIES ON THE PARTS PURCHASED AND SERVICES PROVIDED BY H.E.R.O.S., INC. (Hereafter HER OS, US, WE) pursuant to your authorization: 2.WE warrant that all services provided and work completed pursuant to the WOE and/ or PO will be accomplished and performed in a skillful manner and in accordance with the applicable Federal Aviation Regulations (FAR). THERE ARE NO WARRANTIES ON THE SERVICES PROVIDED AND PARTS SOLD BY US BEYOND THOSE DESCRIBED ON THE FACE OF THIS WORK ORDER ESTIMATE. 3.PARTS ARE PROVIDED WITH THE WARRANTIES, IF ANY, MADE BY THEIR RESPECTIVE MANUFACTURERS AND WE MAKE NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OF ANY PARTS PROVIDED IN THE COURSE OF ACCOMPLISHING THE WORK CONTEMPLATED BY THE WOE. 4-YOU HA VE THE RIGHT AND THE CHOICE OF CHOOSING CERTAIN VENDORS AS SUPPLIER OF NEW AND SERVICEABLE PARTS. 5-IN THE ABSENCE OF A CLEAR AND WRITTEN VENDOR SELECTION INSTRUCTION, WE WILL USE OEM AND FAA/PMA APPROVED PARTS AND UTILIZE FAA / CANADA APPROVED REPAIR FACILITIES FOR RESTORATION OF PARTS. 6-CUSTOMER ACKNOWLEDGES THAT WE HA VE MADE NO REPRESENTATIONS AS TO THE MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OF ANY PART SOLD PURSUANT TO THE WOE, UNLESS SPECIFICALLY SO STATED HEREON. H.E.R.O.S., Inc. Warranty Policy; Revised March 08; 2012 Page 7 H.E.R.O.S., Inc._WARRANTY POLICY DISCLAIMER OF IMPLIED WARRANTIES, LIMITED WARRANTY, ACKNOWLEDGMENT AND ACCEPTANCE (Continue ... ) 7.OVERHAULS AND REPAIRS -Units overhauled by us carry a I 000 hours of operation (prorated after 500 hours) or 12 months warranty from the date of shipment, whichever comes first. Units repaired by us carry a 600 hours of operation (prorated after 300 hours) or 6 months warranty from the date of shipment, whichever comes first. These units will be certified and accompanied by an FAA 8130-3 tag 8.NO OTHER WARRANTY, EXPRESS OR IMPLIED, IS (HAS BEEN) MADE WITH RESPECT TO OVERHAULED PARTS, COMPONENTS OR MODULES. This warranty is limited to the cost of labor incurred in: (I) Correcting any work performed by us; (2) Repairing or replacing any part or component overhauled or repaired and installed by us. This warranty does not include the cost of parts installed, parts required to fulfill this warranty, or any consequential damage or loss of revenue caused by work performed by us. 9.Units overhauled or repaired by other agencies and accompanied by their respective release tags may or may not be warranted, by those agencies, according to their terms and conditions AND ARE NOT COVERED BY OUR WARRANTY POLICY. 10.Parts supplied by you are NOT COVERED under our warranty. Any subsequent damages caused by parts supplied by you ARE NOT COVERED by our warranty. 11-ALL WARRANTIES GIVEN BY US ARE NULLIFIED AND VOIDED IF YOU OR YOUR DESIGNATED ENTITY DISASSEMBLES AND RE ASSEMBLES THE UNIT FOR ANY REASON. 12-FUEL NOZZLE WARRANTIES ARE NULLIFIED AND VOIDED IF THE SAFETY WIRE SECURING THE OUTER AIR SHROUD IS REMOVED FOR ANY REASON. 13.NO WARRANTY, GUARANTEE OR APPROVAL FOR RETURN TO SERVICE IS GIVEN TO ANY ACCESSORY, MODULE, ENGINE OR PART, WHICH IS RETURNED TO CUSTOMER ACCOMPANIED BY A PARTIAL REPAIR TAG. 14.ALL WARRANTIES GIVEN BY US ARE NULLIFIED AND VOIDED RETROACTIVELY TO THE DATE OF SHIPMENT OF THE OVERHAULED OR REP AIRED ACCESSORY, MODULE, OR ENGINE. IF OUR INVO!CE(S) ARE NOT PAID IN FULL IN ACCORDANCE WITH THE TERMS INDICATED ON THE INVOICE. IF WE AGREE IN WRITING TO OTHER ARRANGEMENTS FOR PAYMENT, ALL WARRANTIES GIVEN BY US ARE NULLIFIED AND VOIDED RETROACTIVELY TO THE DATE OF SHIPMENT IF PAYMENT IS NOT RECEIVED IN ACCORDANCE WITH THE SUCH TERMS. YOU DO FURTHER AGREE THAT, IN CASE WE HA VE TO TAKE LEGAL H.E.R.O.S., Inc. Warranty Policy; Revised March 08; 2012 Page 8 H.E.R.O.S., Inc._WARRANTY POLICY DISCLAIMER OF IMPLIED WARRANTIES, LIMITED WARRANTY, ACKNOWLEDGMENT AND ACCEPTANCE (Continue ... ) ACTION AGAINST YOU FOR NON-PAYMENT, STOP PAYMENT, OR RETU RNED CHECK, WE ARE ENTITLE TO A REASONABLE COLLECTION, ATTORNEY AND COURT FEE AND ASSOCIATED EXPENSES INCLUDING INTEREST CHARGES AS INDICATED ON OUR INVOICES. 15.We do not perform removal from or installation of engines, accessories or modules from aircraft. Therefore, there is no warranty given with respect to such activities, or any courtesy assistance we may lend to your mechanics/ technicians in performing these services. 16.WE will undertake only the work described in the Work Order Estimate (WOE). Removal and / or re installation of any engine module or component is the responsibility of the aircraft / engine owner / operator. HEROS, Inc. does not undertake any work, which is not within the limitations imposed by its Repair Station Certificate. We reserve the right to substitute any part quoted herein with another FAA approved part. 17.BY SIGNING THIS WARRANTY STATEMENT, I (WE) AGREE THAT THIS POLICY ENTERS INTO EFFECT FOR ALL OUR CURRENT AND FUTURE WORK ORDERS PROCESSED AT (BY) HEROS UNTIL IT IS REVOKED IN WRITING BY EITHER PARTY FOR ANY REASON. IN CASE OF REVOCATION, ALL PAST WORK ORDERS CONTINUE TO HA VE COVERAGE BY THIS POLICY. I MUST BE NOTIFIED IN WRITING OF ANY NEW REVISION TO THIS POLICY AND WILL HA VE THE OPTION OF ACCEPTING OR REVOKING MY (OUR) ACCEPTANCE. EACH FUTURE WORK ORDER ESTIMATES, NEED NOT TO HA VE A COPY OF THIS POLICY ATTACHED TO IT H.E.R.O.S., Inc. Warranty Policy; Revised March 08; 2012 Page 9