EFTA01105537.pdf

1=3 Rolls-Royce Rolls-Royce Deutschland Ltd. & CO KG Eschenweg 11 Dahlewitz 15827 Blankenfelde-Mahlow Germany July 31s1,2014 Jet Aviation Business Jets AG P.O. Box 232 CH-8058 Zurich-Airport Switzerland Dear Mr. Freund. We are pleased to present Jet Aviation Business Jets AG ("Jet Aviation") an overview of the Rolls-Royce CorporateCare® program for coverage of your Gulfstream G550 aircraft, Aircraft Serial Number 5070, fitted with Rolls-Royce BR710C4-11 engines (Engine Serial Numbers 15239 and 15238). CorporateCare coverage for your aircraft would be contracted with Rolls-Royce Deutschland Ltd. CO KG (Rolls-Royce"). CorporateCare is a comprehensive engine maintenance program that transfers the risk of engine maintenance and care to Rolls-Royce, the manufacturer, as described in this letter. The CorporateCare program is designed to fix the cost of all scheduled maintenance and cover the cost of unscheduled shop visits. The market has recognized the benefits of CorporateCare coverage through enhanced aircraft asset and resale values. The applicable fee for CorporateCare coverage for your engines operated on an Hard-Time maintenance program for 2014 e.c. is: CorporateCare Service Rate per Engine Flying Hour (EFH) US$ 433.35' ('Based on that the Aircraft will be predominantly located in and operated from Europe. Please note, that there is a chargeable minimum of 300 aircraft hours per annum.) Charge for hours on both engines prior to enrollment in CorporateCare Left Hand Engine: 579 EFH per engine since last engine mid-life inspection = US$ 250,909.65 Right Hand Engine: 579 EFH per engine since last engine mid-life inspection = US$ 250,909.65 = US$ 501,819.30 + Post mid-life Buy In amounting to US$ 276,908.00 per Engine = US$ 553,816.00 = Total Payment Due: US$ 1,055,635.30 Discount on Enrolment Fee Upon signature of the CorporateCare agreement for engines of Gulfstream G550 aircraft with Serial Number 5070 and new Gulfstream G650 aircraft with Serial Number 6046 the aircraft owner will receive a discount on the Buy In Fee amount of 12.5%. US$ 1.055.635.30 - 12.5% (US$ 131,954,41) = US$ 923,680.89 Under CorporateCare, Rolls-Royce will provide the following services during the period of cover: 1. Engine Shop Visit Costs All costs associated with scheduled shop visits or unscheduled qualified shop visits will be covered by Rolls-Royce including: • Engine Shop Visit Labor (strip, inspect, rework, rebuild, test, dispatch); • All parts requiring replacement or rework as defined in the shop visit workscope; • All shop visit subcontract charges; and • Incorporation of all ADs and Recommended Service Bulletins (in particular those that enhance durability or reliability) as appropriate for the level of shop visit. However, shop visits caused by Foreign Object Damage (FOE)), accident, misuse, improper maintenance, or operation outside of manual requirements would not be covered. A more specific definition of what would be covered is provided in Rolls-Royce's CorporateCare terms and conditions. EFTA01105537 2. Line Replaceable Parts Coverage The repair or replacement of all qualified Line Replaceable Parts removed from the engines during line maintenance. This coverage extends to parts requiring modification or replacement as identified in Ads and Recommended Service Bulletins per the workscope. 3. Line Maintenance Parts All parts used during engine line maintenance that carry a Rolls-Royce part number at no charge. 4. LRU Exchange Labour Allowance Rolls-Royce will directly cover the labor cost associated with the performance of LRU removal and installation for LRU's experiencing a qualified event in accordance with the CorporateCare contract, which will contain a list of covered LRU's. The labor hour allowance is as defined in the Rolls- Royce Standard Labor Hours Manual. 5. Boroscope Inspection Rolls-Royce will cover the labor cost associated with the performance of a scheduled boroscope inspection on the engine in accordance with the Chapter 5 requirements as defined in the Rolls- Royce Engine Maintenance Manual. 6. Lease Engine Expenses Lease engine expenses for qualified engine removals will be waived. However, Jet Aviation will continue to pay the established CorporateCare rate while the lease engine is installed. 7. Engine Removal and Reinstallation Labour Engine removal and reinstallation labor together with necessary tooling for all qualified engine removals at a Rolls-Royce approved service center. For unscheduled qualified engine removals. Rolls-Royce will also cover associated travel and tooling shipment costs. 8. Engine Freight and Logistics Coverage Shipment Jet Aviation 's engines to and from the Overhaul Base, and the lease engines to and from the required location. 9. Training One training course per year, per aircraft enrolled in CorporateCare. 10. Technical Publications One set of technical publications on compact disc as well as access to technical publications online through Aeromanager, including updates. 11. Engine Health Monitoring Engine health monitoring is provided by a service provider of Rolls-Royce's choosing. This service includes alert notifications of significant performance trend shifts and standard reporting of engine condition via the Rolls-Royce regional customer manager to ensure timely engine maintenance. Customer can access individual engine performance trend charts and interpolations. 12. Transferability If you transfer the aircraft to a new operator at any time, CorporateCare coverage can continue with the new operator of the Aircraft subject to the terms of the CorporateCare agreement. 13. Payment Terms Payments are due on the first day of the month for that month's estimated engine utilization. Monthly payments will be based on the estimated aircraft utilization. This estimate will be compared to actual hours flown annually, and any under-payments or over-payments will be addressed accordingly. 14. Period of Cover The standard period of cover for a CorporateCare agreement is ten (10) years. EFTA01105538 15. General We would be pleased to forward you a CorporateCare agreement form from Rolls-Royce Deutschland Ltd. CO KG. which would constitute their formal offer to you for coverage of your engines, and set forth the detailed terms, conditions and limitations of the program. Coverage under the Rolls-Royce CorporateCare program requires a signed CorporateCare agreement between Rolls-Royce Deutschland Ltd. CO KG and the aircraft owner before such coverage can begin. If you are interested, please let us know so that we may obtain a CorporateCare agreement form from Rolls-Royce Deutschland Ltd. CO KG for you. We look forward to answering any questions you might have, and to welcoming you to the Rolls-Royce CorporateCare family. We will contact you within the next week to plan a mutually agreed way forward. Yours Sincerely, -.---3;7:910!-••••••• s-4 Dominik Schafer Regional Sales Executive - Europe, Russia, CIS EFTA01105539