TERMS & CONDITIONS OF SALE

• Unless otherwise stated on an attachment hereto or specifically agreed to in writing by the (buyer of the products) purchased (the parts) and an authorized officer of Falcon Repair Services, Inc. the (seller) the sale of the parts will be made under the following terms and conditions.
• Delivery of parts shall be F.O.B. Falcon Repair Services, Inc. facility. Risk of loss shall pass to buyer upon delivery of the parts to buyer or a representative thereof. In case where no written instruction of shipping from buyer exist, but carrier shall not be the agent of seller, seller shall not be responsible for delay or damage incurred in shipment to buyer.
• The full payment of the invoice amount is due and payable to seller in US dollars within 30 Days from the date of the invoice. Unless otherwise stated on reverse side. If payment is not received within the 30 day period, (buyer) agrees to pay seller additional fee of 1 1/2% equal to the interest per month. IT IS UNDERSTOOD THAT TITLE TO ALL PARTS AND MATERIALS LISTED ON THIS INVOICE REMAINS WITH AHS UNTILPAYMENT OF SAME HAS BEEN RECEIVED. PURCHASER AGREES TO PAY ALL COSTS OF COLLECTION, INCLUDING ATTORNEY FEES, IF IT BECOMES NECESSARY TO ENFORCE PAYMENT THEREOF.
• Unless otherwise stated, prices listed do not include duties or sales, use excise, and value added or similar taxes payable as a result of Buyer's purchase or use of the parts. Buyer shall, in addition to paying specified prices, pay or reimburse Seller for any such duties or taxes.
• Delivery shall be deemed to be complete upon receipt and inspection of goods by Purchaser, such inspection shall be made within 48 hours of receipt of goods. Goods may not be returned without Seller's prior authorization. Request for authorization must be made by Purchaser within 96 hours of receipt of goods. Goods authorized for return must be returned to Seller within 10 days of Seller's shipping date. Upon the return of goods pursuant to authorization Seller may at its option repair or replace the goods, refund the purchase price or issue credit. Seller shall in no way be liable or responsible for incidental or consequential damages arising out of the shipment of non-conforming, defective and/or damaged goods.
• Goods may not be returned without prior consent of Falcon Repair Services, Inc. Returned goods will be subject to 25%of the sales price with a minimum fee of $150.00.
• Subject to Section 8, Seller warrants to Buyer that each part delivered to Buyer hereunder will conform to its general description (excluding its condition code) set forth on the reverse side hereof or in the attachment hereto and that to the best of Seller's knowledge based on the documentation for the part available to Seller, each such part (a) is U.S. type certified by a manufacturer holding a U.S. production certificate or license agreement with the prime manufacturer, (b) if used, was removed from a serviceable unit that had not been subject to severe stress of heat (as in, a major engine failure, accident or fire) and (c) at the time of its delivery or shipment will conform to the condition code indicated on the reverse side hereof or an attachment hereto. A Returned Material Authorization (RMA) number must be issued by Seller and accompany any returned part. Any replaced part shall become the property of seller. EXCEPT AS SET FOR IN THIS SECTION 7, THE PARTS ARE SOLD TO BUYER "AS IS". SELLER MAKES NO WARRANTY, AGREEMENT OR REPRESENTATION, EXPRESS OR IMPLIED, AS TO THE QUALITY, CONDITION, VALUE OR UTILITY OF THE PARTS,INCLUDING BUT NOT LIMITED TO ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, AND SELLER AND ITS DIRECTORS, EMPLOYEES, AGENTS AND AFFILIATED ENTITIES (COLLECTIVELY, "RELATED PARTIES") SHALL HAVE NO LIABILITY IN CONTRACT, TORT (INCLUDING FOR NEGLIGENCE OR LIABILITY OF SELLER OR ANY RELATED PARTY) OR OTHERWISE FOR ANY LOSS, DAMAGE, EXPENSE OF INJURY RESULTING FROM OR ARISING OUT OF ANY DEFECT IN OR NONCONFORMITY OF THE PARTS PURCHASED HEREUNDER.
• IN NO EVENT SHALL SELLER OR ANY OF ITS RELATED PARTIES BE LIABLE IN CONTRACT, TORT (INCLUDING NEGLIGENCE OR STRICT LIABILITY) OR OTHERWISE FOR LOST REVENUES OR PROFITS, LOSS OF USE OF THE PARTS OR ANY OTHER SPECIAL, INDIRECT OR CONSEQUENTIAL DAMAGES RESULTING FROM OR ARISING OUT OF ANY BREACH BY SELLER OR ITS RELATED PARTIES OF THIS AGREEMENT, OTHER OBLIGATIONS OR DUTIES RELATING TO THIS IS TRANSACTION OR BUYER'S ORDERING, USING, OWNING OR DISPOSING OF THE PARTS, EVEN IF SELLER OR ITS RELATED PARTIES HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. THE TOTAL LIABILITY OF SELLER AND ITS RELATED PARTIES TO BUYER AND OTHERS IN CONTRACT TORT (INCLUDING NEGLIGENCE OR STRICT LIABILITY) OR OTHERWISE RESULTING FROM OR ARISING OUT OF ANY CAUSE WHATSOEVER IN CONNECTION WITH 'THIS AGREEMENT OR BUYER'S PURCHASE, USE AND DISPOSITION OF ANY ITEM OF THE PARTS SHALL UNDER NO CIRCUMSTANCE EXCEED THE PURCHASE PRICE PAID FOR THE ITEM BY BUYER, NO ACTION, REGARDLESS OF FORM, ARISING OUT OF THIS AGREEMENT OR BUYER'S PURCHASE OF THE PARTS MAY BE BROUGHT AGAINIST SELLER OR ANY OF ITS RELATED PARTIES MORE THAN 1 YEAR AFTER THE CAUSE OF ACTION ACCRUES.
• To secure full performance of Buyer's obligations hereunder, Seller retains and Buyer grants to Seller a purchase money security interest in the parts, including all accessions to and replacement and proceeds of the parts. If buyer defaults in making payments or in its obligations hereunder,-Seller, in addition to its other rights and remedies provided in the California Commercial Code and otherwise, may enforce its security interest and retake possession of the parts in accordance with applicable law. It is agreed that 15 days shall constitute reasonable Notice to Buyer with respect to the enforcement of such rights and remedies in the event such notice is required by applicable laws. Seller's security interest shall terminate upon full performance of Buyer's obligations hereunder.
• This agreement and performance by the parties hereunder shall be construed in accordance with and governed by the laws of California. Any action or proceeding to take place, any provisions relating to this agreement shall be brought in the courts of the state of California and Buyer and Seller hereby consent to the jurisdiction of such courts for any purposes of any action or proceeding. If any provision of this agreement shall be held by a court of competent jurisdiction to be unenforceable to any extent, that; provision shall be enforced to the fullest extent permitted by law and the remaining provisions shall remain in full force and effect.
• This agreement shall be binding upon the parties and their respective successors and assigns. However, unless otherwise agreed to in writing by Seller, any assignment of this agreement or any rights or duties hereunder by Buyer shall be void. This agreement is not intended to confer rights against Seller to any person other than Buyer and its successors and assignors.
• The express terms and conditions contained on the face and on the reverse side hereof and those set forth on any continuation sheets; contain tie entire understanding of the parties with respect to the sale of the material. Any terms and conditions proposed in Buyer's Purchase Order which add to, vary from or conflict with the terms and conditions herein are hereby expressly objected to and may become effective only if accepted by Falcon Services MRO, Inc., in writing.

• Falcon Repair Services, Inc., (the Company) here by warrants the workmanship of units repaired or overhauled to be free of defects, to be correct per the manufactures overhaul manual specifications, engineering orders, service bulletins, AD notes or FAA service letters.
• (The Company) warrants all new piece parts in that they have been inspected for defects, conformity to specifications, received from an approved supplier, stored in such a wav as to minimize environmental effects, checked for shelf life as applicable, and to the best of our knowledge are approved aircraft parts.
• (The Company) warrants all workmanship and parts replaced, repaired or reworked, on Overhaul for a period of 12 months from the date of shipment. Limited to area of repair and or to parts repaired or replaced only.
• (The Company) warrants its workmanship and parts on Repaired units for a period of 6 months from the date of shipment. Limited to area of repair and or to parts repaired or replaced only.