EFTA00797409.pdf

nek SOARING HIGHER AerSale Highly responsive. Exceptional service. VIOF Commercial Proposal for AerSafeTM Supplemental Type Certificate (STC) and Installation on One (1) Boeing 737- 700, MSN 32774 Prepared For: Joseph Figler By: AerSale, Inc. 121Alhambra Plaza, Suite 1700 Coral Gables, FL 33134 United States Date October 10, 2018 EFTA00797409  AerSafe Commercial Proposal —One (1) B737-700, MSN 32774 October 10, 2018 AerSale, Inc. (AerSale) is an industry leading commercial aviation corporation that offers many services in the aviation industry, including the supply of mid-life large transport category aircraft, aftermarket part sales, asset management, maintenance, repair, and overhaul (MRO) services, and aircraft modifications. AerSale provides high quality 14 CFR Part 145 Federal Aviation Administration (FM) certified Maintenance, Repair, and Overhaul (MRO) services to a broad range of commercial and governmental organizations. Our customers include world-class passenger and cargo airlines, aircraft and engine lessors, government organizations, MROs, and Original Equipment Manufacturers (OEMs). AerSale owns and operates three (3) 14 CFR Part 145 FAA/EASA approved MRO Facilities located throughout the Southwest region of the United States. AerSale's Goodyear, AZ (GYR) Repair Station (#A8ZR580Y) and Roswell, NM (ROW) Repair Station (#4AER685B) provide comprehensive transport category maintenance and modification services. The GYR facility features a full paint bay, storage for up to 150 aircraft, and is an FM Class 4 maintenance facility, allowing unlimited maintenance and overhaul on large transport category aircraft. Our ROW facility has sufficient outdoor space capable of storing over 650 large transport category aircraft AerSale's Rio Rancho Repair Station (#087R142Y), AerSale Component Solutions, Inc. (formerly AMI) is a component level facility, specializing in thrust reversers, flight control component overhaul and recertification of various aircraft type requiring composite material repair, NDT, welding, and repair. Proposal AerSale is pleased to submit the following commercial proposal for the installation of the AerSafe System in compliance with FM Fuel Tank Flammability Reduction (FTFR) Rule on One (1) Boeing 737-700, MSN 32774, Reg. P4-SRN (the "Customer's" aircraft). AerSafe is one of the few FAA approved ignition mitigation means currently available that complies with the FTFR rule. The FTFR rule requires reduction to ignition sources and flammability exposure in fuel tanks that are most at risk. 2. Modification Services AerSale will provide all material and installation labor to accomplish installation of AerSafe on one (1) Boeing 737-700 aircraft in accordance with STC ST02980NY (STC). 2.1_ Deviations to STC The presence of a PM AUX fuel tank system materially affects the AerSafe system as designed. AerSale will therefore be required to develop an FAA approved major alteration to the STC in order to accommodate the PM AUX fuel tank system. The Customer will be responsible for reimbursing AerSale for developing a major alteration to the STC for this installation. Certification Plan for Deviation: a. Perform a test fit of the AerSafe kit b. Establish and record necessary deviations to the kit to accommodate previously installed modification(s) c. Refabricate and ship altered parts d. AerSafe parts and or installation requiring alteration will be approved via FM 8110-3. FM DER/Engineer Aptirinnterl a. Installer hourly rate for test fit and modifications Page 1 of 4 AerSale. Inc. EFTA00797410  AerSafe Commercial Proposal — One (1) 8737-700, MSN 32774 October 10, 2018 b. Travel arrangements for FM DER/Engineer c. Refabricating and shipment altered parts d. Engineering/Certification Statement Regarding Compatibility with PATS AUX Tank: AerSale will provide and install the FAA STC ST02980NY AerSafe Kit with an FM Approved major alteration. AerSale will have a FAA DER/Engineer present during the test fit of the system; AerSafe parts and or installation requiring alteration will be approved via FAA 8110-3. FM STC ST02980NY does not change any configuration with the PATS AUX tank installation. PATS AUX tank components that are installed in the Center Wing Tank will not be affected by the installation of the system. 2.2. Location An AerSale's FM Approved Repair Station, located in Roswell, NM or Goodyear, AZ, depending on availability and Customer preference. If Customer chooses to provide alternate hangar space and related facilities, Customer will be responsible for all associated costs, including the cost of shipping the AerSafe kit, as well as travel expenses for AerSale's installation team and other personnel as required. 2.3. Schedule Modification services complete within five (5) days of commencement of work. 2.4. Assumptions • The current aircraft is Boeing approved via FM Type Certificate or Supplemental Type Certificate • Full aircraft fueling and defueling capabilities are available at modification location • Work performed by AerSale to evaluate our STC's compatibility with any previously installed modification that affects the center fuel tank billed as 3. Pricing The current list price is $195,000.00 per modification. All pricing is in USD and prices are exclusive of any applicable sales taxes and duties. Pricing includes: • STC Rights to Use issued to aircraft operator, effective to aircraft MSN • AerSafe Kit • AerSafe Installation Labor Pricing does not include: • Labor or expenses related to deviations to the STC to accommodate previous) modification(s), billed at the conclusion of the installation in accordance with rates 3.1. Payment Terms A non-refundable deposit of $97,500.00 will be due upon execution of Service Agreement. Payments will be due in accordance with the following schedule: • Payment of $48,750 will be due prior commencing modification services or prior to shipment of AerSafe Kit if modification services performed at Customer facility; and Page 2 of 4 AerSale, Inc. EFTA00797411 AerSafe Commercial Proposal —One (1) B737-700, MSN 32774 October 10, 2018 • Payment of $48,750, plus any due expenses and over and above charges, due concurrent with the completion of the aircraft modification 3.2. Warranty AerSale will provide a four (4) year warranty on parts and installation from the date of AerSafe installation. 3.3. Validity This proposal is valid for 30 days. 3.4. Out of Scope Work Support, work, or certification effort required to complete the installation on Customer aircraft, but not foreseen in this proposal must be specifically authorized by Customer prior to commencement by AerSale. Detailed accounting of hours and task completion percentage will be provided separately to Customer on a mutually agreed upon periodic basis. Out of scope work performed by AerSale will be billed on a MI basis at a rate of: Rate Category Rate Mechanic and Sheetmetal USD $85/hr. Avionics USD $100/hr. Fuel Access USD $95/hr. Engineering Services USD $150/hr. + Expenses Certification Services USD $180/hr. + Expenses Travel Per Diem (Meals, Incidentals, Ground USD $150/day Transportation) 3.5. Travel If AerSale is required to send an engineer to gather the technical data, the daily travel cost is USD $1,000 per day - door to door, plus expenses and per diem. Travel expenses (Business Class Flight, Hotel Accommodations, etc.) shall be billed to Customer at cost plus 15%. Should there be any questions, please contact me via phone at 305-764-3227 or via email at [Signature page to follow) Page 3 of 4 AerSale. Inc. EFTA00797412 AerSafe Commercial Proposal — One (1) B737-700, MSN 32774 October 10, 2018 Agreed and entered into on this day of 2018. AerSale, Inc. Customer: By: By: Name: Name: Title: Title: Page 4 of 4 AerSale, Inc. EFTA00797413