FLYHT, SNC settle legal action
June 18, 2014, Calgary - FLYHT Aerospace Solutions Ltd. has announced that FLYHT and Sierra Nevada Corporation (SNC) have signed a settlement agreement to renew sales activities and fully settle all outstanding claims between the two parties under the following material terms:
June 18, 2014 By Carey Fredericks
The parties signed a license and manufacturing agreement, a value-added reseller agreement and other related ancillary agreements, which are for a period of five years with renewal provisions and which govern the parties activities in military and civilian markets, including but not limited to:
- FLYHT granted exclusive and non-exclusive licenses to SNC for the manufacture of certain AFIRS units, and for the sale of the AFIRS units and related products into specified military and civilian markets;
- FLYHT will cooperate with SNC to provide UpTime Services to certain commercial end users, as agreed on a case-by-case basis; and
- Upon SNC realizing revenue in the amount of US$2,5 million from the sale of certain AFIRS units, FLYHT will receive license fees from SNC for any subsequent sales of AFIRS 228B units by SNC ($5,000 per unit) to any end user and for the use of UpTime services by military end users.
All FLYHT’s indebtedness to SNC (being approximately CDN$1.98 million is terminated and released subject to the terms of the Agreements; and
All legal action between FLYHT and SNC is discontinued.
FLYHT will continue to lead sales and service activities in all civil aviation markets, and SNC will lead sales in the United States and NATO military and government manned and unmanned aircraft markets.