Global Policy Information and Procedures Manual

Textron Aviation and will be given the same force and effect as though it were attached to and made part of your specific agreement. This document is the property of Textron Aviation headquartered in Wichita, Kansas. It is designed for and restricted to the use of Beechcraft ASC’s and Cessna Authorized Service Facilities (“ASF”) For purposes of convenience this manual will use ASF to refer to ASC’s and ASF’s. The use of the Textron Aviation name in this document does not authorize you to service any aircraft, or to serve as an authorized service center for any Textron Aviation brand that is not named in your existing Agreement. Textron Aviation expressly reserves the right to supersede, cancel and / or declare obsolete any part, part number, kit or publication that may be referenced in this manual without prior notice. All prices and other terms listed in this publication are subject to change by Textron Aviation without prior notice and without the approval or consent by the ASF. In the event there is a conflict between the terms and requirements established by the PIPM and the Agreement, the Agreement will supersede the PIPM. ______________________________________________________________________________________________________________________ Global Policy Information & Procedures Manual May 2015 Section 0, v The PIPM is made available to ASF’s to specify the minimum service requirements and policies to be employed within the ASF network. Adherence to these policies and procedures are intended to provide a consistent level of high quality customer service and support to Cessna, Hawker and Beechcraft owners and operators. Unless otherwise noted herein, the PIPM applies to all ASF’s regardless of ownership or location. When necessary, specific reference may be made to a particular type of ASF. This PIPM is available to ASF’s electronically at CPDexpress and Beechcraft website. Revisions to the PIPM may be made at any time and are effective on the issue date, unless otherwise specified. New ASF’s will be issued a User Name and Password that will allow them to access the site. ASF’s will secure their password and logon information to prevent unauthorized access. The ASF program has been established to qualify strategically located aircraft service companies that have a proven reputation of excellence in aircraft maintenance to provide essential support to the owners and operators of Textron Aviation manufactured aircraft. These companies will have invested in the technical information, tools, training for personnel and have obtained the necessary regulatory approvals required to provide safe, proficient and high quality service to aircraft. Authorization is granted on a location basis and only applies to the ASF locations named in the Agreement. Textron Aviation offers no exclusive authorizations or territories under this program and reserves the right to authorize other competing ASF’s or establish its own facilities without regard to geographical location. The network of ASF’s is an important element of Textron Aviation’s commitment to Customer Service. While it is not the intention of Textron Aviation to provide guidance on the day to day operation of the ASF, the policies, instructions and procedures set forth in the PIPM establish the minimum standards that all ASF’s are expected to meet for the purposes of maintaining the high level of quality and customer service necessary to serve as a Textron Aviation authorized ASF. ASF’s may only perform support services for operators of the aircraft models for which they are authorized by their Agreement and for which they have the appropriate certifications. ASF’s may sell parts for aircraft that they are authorized to service under their Agreement. Thus, an ASF authorized to provide service to a Beechcraft King Air, for example, can sell King Air parts over the counter, but is not authorized to sell spare or replacement parts for a Cessna Citation. ASF’s will perform maintenance and inspection activities as directed by the appropriate aircraft maintenance publications including, but not limited to the maintenance and service manuals, inspection schedules, service bulletins and as otherwise required by any applicable aircraft certification authority. In addition, ASF’s will perform service in support of the Textron Aviation warranty program. During the term of the Agreement the ASF will maintain a sufficient inventory of spare parts for the aircraft being serviced by the facility. Minimum spares provisioning lists for our products are may be located at CPDexpress and Beechcraft website, which will be considered to be part of this PIPM and part of Your Agreement with Textron Aviation. ______________________________________________________________________________________________________________________ Global Policy Information & Procedures Manual May 2015 Section 0, vi As part of the ASF program, Textron Aviation will monitor the levels of customer satisfaction with the services performed. Customer satisfaction is considered to be a significant factor in the decision making process in the review conducted as part of the renewal or reappointment of an ASF at the expiration of Your Agreement. Textron Aviation also performs periodic reviews of its ASF’s. These reviews may include, but are not limited to auditing the availability of spare parts, availability of technical publications, calibration of tools, training of staff and availability of Ground Support Equipment and Warranty Controls. Textron Aviation may withhold, delay or deny the appointment of ASF Status, or withdraw ASF status in the event that a periodic inspection or audit reveals that the ASF is not in compliance with the requirements of the Agreement or the PIPM. Any questions or comments relating to the Authorized Service Facility program and / or the Policy Information and Procedure Manual should be directed to: . Manager Global Authorized Service Facilities 2121 South Hoover Road Wichita, Kansas 67209 USA ______________________________________________________________________________________________________________________ Global Policy Information & Procedures Manual May 2015 Section 1. 1 Section 1: PRODUCT SUPPORT Overview ......................................................................................................................................... 2 Administration and Customer Support Services ........................................................................ 3 Product Support ............................................................................................................................. 3 Spares Support .............................................................................................................................. 3 Technical Services ......................................................................................................................... 3 Beechcraft Corporation Mailing / Shipping Information ............................................................. 4 Beechcraft Corporation Internet Addresses ................................................................................ 4 Cessna Aircraft Mailing / Shipping Information .......................................................................... 4 Cessna Aircraft Internet Addresses ............................................................................................. 5 Textron Aviation E-mail Protocol .................................................................................................. 5 ______________________________________________________________________________________________________________________ Global Policy Information & Procedures Manual May 2015 Section 1. 2 Overview The companies of Textron Aviation offer a complete network of services for owners and operators of Beechcraft, Cessna, and Hawker aircraft through its Global Customer Service and Support businesses. Global Customer Support performs four distinct functions: administration and customer support services, customer relations, spares support and technical services. ______________________________________________________________________________________________________________________ Global Policy Information & Procedures Manual May 2015 Section 1. 3 Administration and Customer Support Services This function administers all aspects of warranty, exchange, special programs and repair service order claims settlements with aircraft owners and operators and Authorized Service Facilities (ASF). They also provide an interface for all electronic data communications with the ASF and others. Customer Support Services also coordinates and distributes customer surveys to ensure continuing customer satisfaction with Textron Aviation products and services. Product Support This function is responsible for communications with our external customers. This is accomplished through customer newsletters, online training, etc. Spares Support This function provides worldwide spare parts support to the ASF through Textron Aviation Parts and Distribution (TAPD), whose spare parts warehouses are strategically located around the world. Spare parts support is available to aircraft operators through ASFs and / or by purchasing directly from TAPD. Technical Services This function provides factory and field service assistance to aircraft operators and ASF personnel concerning maintenance procedures, repair and service techniques. Contact Information For questions and customer issues, find the appropriate contact at www.cessnasupport.com or https://www.beechcraft.com/customer_support/. ______________________________________________________________________________________________________________________ Global Policy Information & Procedures Manual May 2015 Section 1. 4 Beechcraft Corporation Mailing / Shipping Information Mailing Address: Beechcraft Corporation P.O. Box 85 Wichita, Kansas 67201-0085 USA Shipping / Courier Address: Beechcraft Corporation (Main address) 9709 E. Central Wichita, Kansas 67206 USA Shipping / Courier Address: Beechcraft Corporation (Customer Support & HBP&D) 10511 E. Central Wichita, Kansas 67206 USA Beechcraft Corporation Internet Addresses www.hawkerbeechcraft.com .............................................................Hawker Beechcraft Corporation hawkerbeechcraft.com/service_support......................................................Global Customer Support parts.hawkerbeechcraft.com .................................Hawker Beechcraft Parts & Distribution (HBP&D) hawkerbeechcraftservices.com...............................................................Hawker Beechcraft Services Cessna Aircraft Mailing / Shipping Information Mailing Address: Cessna Aircraft Company P.O. Box 7704 Wichita, Kansas 67277 Shipping / Courier Address: Cessna Aircraft Company (Main address) 2617 S. Hoover Road Wichita, Kansas 67215 USA Shipping / Courier Address: Cessna Aircraft Company (Customer Support & HBP&D) 7121 SW Boulevard Wichita, Kansas 67215 ______________________________________________________________________________________________________________________ Global Policy Information & Procedures Manual May 2015 Section 1. 5 Cessna Aircraft Internet Addresses www.cessna.com ......................................................................................Cessna Aircraft Company Cessna.txtav.com/en/citation-service..............................Citation Service, Citation Parts & Programs Textron Aviation E-mail Protocol The majority of employee email addresses at Textron Aviation are formatted as such: EmployeeFirstInitialEmployeeLastName@txtav.com. There are some exceptions to this standard protocol. ______________________________________________________________________________________________________________________ Global Policy Information and Procedures Manual May 2015 Section 2. 1 Section 2: Facility Administration Overview ......................................................................................................................................... 1 ASF Appointment Process………………………………………………………………………………..3 Signage and Advertisement………………………………………………..……………………………..5 Hangar Requirements.…………….……………………………………………………………………….5 Appearance…………………………………………………………………………………………………..7 Lounge and Flight Services………………………………………………………………………………8 Spares and Tools Storage………………………………………………………………………………...9 Taxiways and Ramps………………………………………………………………………………………9 ______________________________________________________________________________________________________________________ Global Policy Information and Procedures Manual May 2015 Section 2. 2 Overview Textron Aviation expects each Authorized Service Facility (ASF) to properly serve the segment of the market targeted by their business. This will include maintaining minimum inventory levels, customer facilities and high quality repair capabilities consistent with the authorization granted. During the term of the Agreement, Textron Aviation expects the ASF to meet specific requirements regarding hanger size, facility appearance, customer facilities and services. This section of the PIPM will provide details on these ASF requirements. Facility Audits will be performed to ensure that the ASF is capable of meeting the minimum requirements and to ensure that these standards will continue to be met during the term of the ASF’s appointment. A detailed discussion of the Audit process can be found in Section 3 of this PIPM. ______________________________________________________________________________________________________________________ Global Policy Information and Procedures Manual May 2015 Section 2. 3 Authorized Service Facility (ASF) Appointment Process Onboarding a new International (non-US) ASF: Textron Aviation requires that its ASF business partners meet the highest ethical standards. In order to qualify as an ASF, all international candidates are required to complete a Global Anti- Corruption Compliance due diligence process. A summary of this process is as follows: 1. Application Form. - The ASF must complete the Covered Business Partner Application online through our web-based application, TeamConnect. Textron Aviation will request contact information from the person who will be primarily responsible for completing the Covered Business Partner Application and will provide a password that will allow the ASF to complete the online application. 2. Required Documents. - The ASF due diligence process requires the following documents to be uploaded into the TeamConnect system. All documents will need to be translated into English by the ASF prior to upload. a. Financial Statement –The most recent financial statement for the ASF. Textron Aviation prefers that the ASF’s financial statement be prepared and audited by an outside independent accounting firm and that it include relevant notes. b. Independent Ownership Verification – Textron requires that all Covered Business Partners disclose the individual ownership. Ownership verification is required to be less than one (1) year old and be provided by an outside law firm, accounting firm, or government agency on their professional stationary. In the event the ASF is owned by a corporation, partnership or trust the ownership verification will need to look through the entity to the individual owners and list the names of the individual shareholders or beneficial owners along with the percentage of shares owned by each shareholder. c. Resumes or CVs of all key personnel including management. d. Copy of company charter, incorporating documents or other evidence of the establishment of the entity. e. Copy of any required registrations or certifications authorizing the ASF to transact business. f. A Signed Global Anti-Corruption Compliance Letter. *All documents must be translated into English.* 3. Business References. – Once Textron Aviation receives a completed application package from the ASF, it will request the names and the contact information for three (3) business references. Textron Aviation prefers to receive business references from managers of other U.S. or European businesses that have worked with the ASF in the past in a similar capacity to the role that the ASF will fill for Textron Aviation. 4. Additional Information. - Textron Aviation will then conduct a thorough investigation as to the ethical qualifications of the candidate including its owners, directors, managers and key employees, identified during the due diligence process. Textron Aviation may seek additional information from the ASF and conduct in-person or telephonic interviews of key ______________________________________________________________________________________________________________________ Global Policy Information and Procedures Manual May 2015 Section 2. 4 personnel for purposes of resolving any questions about the ASF and its prior business conduct. 5. Credit Application - Once an ASF successfully completes the due diligence process and is approved for appointment, Channel Operations will require the ASF to provide a credit application from the ASF. Refer to Section 11 of this PIPM for details. 6. Security Deposit - Textron Aviation will work with Customer Accounting to obtain a completed Credit Application and account security (Single Engine rating $15,000, Cessna 208 rating $75,000). The amount of the deposit depends upon the type of the appointment. See Section 11 of this PPM for details. 7. Insurance Requirement. – Textron Aviation will also request evidence of insurance coverage in amounts listed in the Representative Agreement. The Certificate of Insurance is required to meet Textron Aviation requirements. See Section 10 of this PIPM for details. 8. Contract Signature. - Textron Aviation will then send the ASF the proposed Representative Agreement for review and signature by the ASF. In general, Textron Aviation is not willing to individually negotiate the terms of the Agreement with the ASF. The ASF due diligence review takes time and will delay the appointment of the ASF. The ASF is encouraged to monitor the process and to complete the Covered Business Partner Application and upload the required documents as quickly as possible so as to not unnecessarily delay the process. Renewal of an International (non-US) ASF Appointment. Textron Aviation is only able to appoint an ASF for a defined period of time that will not exceed three (3) years. Prior to the expiration of the ASF’s Agreement with Textron Aviation, the ASF will be contacted and advised as to whether the Agreement will be renewed. In the event, Textron Aviation decides in its sole discretion to renew the ASF’s appointment, it will request that the ASF assist in renewing the due diligence information collected as part of the original appointment. Steps will include: 1. Update Application. – The ASF will review and update the response to each question as necessary. 2. Updated Financial Statement. - Most current outside prepared Financial Statements for the company, preferably audited, and to include accounting notes. 3. Renewal of Ownership Verification - This document must be less than one (1) year old and come from an outside legal or accounting firm on their stationary or from the Department of Registration/Commerce. It must also list the names of all shareholders, to the individual level, and the percentage of shares owned by each shareholder. 4. New Resumes. - Resumes or Curriculum Vitae of all key personnel including management. ______________________________________________________________________________________________________________________ Global Policy Information and Procedures Manual May 2015 Section 2. 5 5. Updated registrations. - A copy of any updated required registrations or certifications authorizing the ASF to transact business. 6. Anti-Corruption Certification. - A newly signed Global Anti-Corruption Compliance letter. *All documents must be translated into English. Contract Signature - Once Textron Aviation Legal approves the renewed due diligence packet a new Representative Agreement is prepared and sent to the candidate for their review and signature. Onboarding a new US ASF: ASF candidates based in the United States that will not be providing any services outside of the United States will need to complete a streamlined due diligence that will include providing the following: 1. A fully completed Business Partner Application. 2. Completed and approved Credit Application. 3. May request financial statements. 4. May request ownership verification information. 5. May request resumes of key personnel 6. May request a copy of all registrations or certifications authorizing the ASF to transact business. Once Textron Aviation has completed its due diligence on the U.S. ASF, it will then send the ASF the proposed Representative Agreement for review and signature by the ASF. In general, Textron Aviation is not willing to individually negotiate the terms of the Agreement with the ASF. Signage and Advertisement The Textron Aviation brand name included in the ASF’s appointment must be displayed prominently at the ASF’s facility to identify the facility as an Authorized Service Facility. The ASF may only display the Textron Aviation brand(s) that are specifically included in the ASF’s appointment. For, example, an ASF who is appointed as a Beechcraft ASF is not allowed to display or use the Cessna brand name. Likewise, an ASF appointed by its Agreement to service Cessna products is not allowed to display or advertise that they are authorized to work on Beechcraft products. Display of the Cessna Aircraft Company and/or Beechcraft logo by the ASF should be separate from any displays of the facility name, or the name of the ASF to preserve the independent corporate identity of the facility. Advertising and other promotional material produced and distributed by the ASF may include only Beechcraft or Cessna Aircraft Company logos that are included in the ASF appointment. ASF’s are reminded that it is never appropriate to use the "Cessna," "Beechcraft", “McCauley” or any other Textron Aviation trademark in the ASF’s corporate name, business name or internet domain name. Any use of the brand logo in advertising must be pre-approved by Global Advertising and Brand Management Manager at Textron Aviation. ______________________________________________________________________________________________________________________ Global Policy Information and Procedures Manual May 2015 Section 2. 6 Once approved, ASFs are encouraged to fully utilize the logo on the items below as long as their Service Facility Agreement remains in effect. • Stationary • Administrative Forms • Advertising • Facilities • Vehicles • Apparel The ASF, once the Agreement is in place, is authorized to purchase, install, display and maintain approved signage relating to the Textron Aviation brand appointment. Textron Aviation does not sell signs or specify a specific vendor of signs that the ASF is required to use. The ASF’s sign may be mounted on either a building or a pole and the size may be adjusted appropriately in accordance to the local facility size and local requirements. The signage will include the ASF name and the Textron Aviation brand logo and will be illuminated so that it will be visible at night. The signage formats include provision for wall mounting (single face) and side mounting (double face), in addition to the traditional freestanding center pole format. Custom interior signage may be used in customer reception areas. It is the responsibility of the ASF to obtain any necessary permits or approvals that may be required to erect and display signage at the ASF’s facility. Each ASF is responsible for purchase, installation, maintenance and repairs necessary for the signage. In the event the ASF Agreement is allowed to expire, or is terminated the ASF will remove all signage that identifies an affiliation with the Textron Aviation brand immediately. Textron Aviation has very strict rules relating to the use of the Textron brands, logos, signs, images, and marketing materials. The ASF may be scored on the appropriate use of the brands and trademarks. Textron Aviation’s brand standards help shape brand advocacy and maintain consistency between the various ASFs. For more details and specifics please consult the Textron Aviation Global Branding and Advertising Manager at Textron Aviation. ASF Certificate to NEW SERVICE FACILTY With the appointment of a new ASF, a Certificate will be supplied to the facility. This Certificate is designed for hanging inside the ASF such as in a flight lounge or aircraft display room, and should be prominently displayed. NAME CHANGES In the event that a Service Facility changes its firm or company name, Textron Aviation will supply a new plaque for the facility. Please notify your local Field Service Engineer TERMINATIONS Upon termination or expiration of the ASF’s Agreement with Textron Aviation, the ASF is required to remove the plaque as governed by the Agreement. ______________________________________________________________________________________________________________________ Global Policy Information and Procedures Manual May 2015 Section 2. 7 Hangar Requirements This section lists the minimum functional and quality standards expected to be provided and maintained by the ASF. The hangar size is at the discretion of the ASF, but must be well maintained, clean, organized and presentable to Textron Aviation customers. Dirty, cluttered and poorly maintained facilities erode customer confidence in the ASF’s ability to perform quality maintenance and reflect poorly on both the ASF and Textron Aviation. Hangar space needs to be sufficient to house the authorized model aircrafts during service. Sufficient work areas need to be maintained around each aircraft to facilitate movement of maintenance equipment and other aircraft so as to avoid compromising the safety and integrity the ASF’s employees and the aircraft being serviced. Specialized support shops such as engine, avionics and sheet metal need to be provided or be available as required to support the hangar operation. Fire protection, access and egress must conform to the local regulations and must be appropriate for the area and the type operation being performed. In the event the local requirements are deemed to be inadequate, Textron Aviation may require the ASF to meet U.S. or European requirements relating to fire, health, safety and environmental issues. Appearance: The need for proper facility appearance is obvious. It is, however, included in this Manual to emphasize the importance of satisfying the standards of an ASF. The facility should meet the following criteria: a) Hangar • Exterior and interior paint in good condition. • Floor clean and paint (if applied) in good condition. • Doors in good operating condition. • Windows clean. • Fire extinguisher locations well marked and accessible. Service records relating fire extinguishers will be available for inspection. • Well lighted. b) Parts, Tools, and Equipment • Parts bins clean and orderly. • No empty cartons or paper in bin area. • Bins properly identified. • Equipment/tools clean, with specific storage locations identified. • Certification and calibration records of equipment and tool records. c) Lounge, flight planning, restrooms and food dispensing areas should be kept clean, orderly, attractive, and customer ready at all times. d) Ramp areas shall be kept well lighted, clean and free from debris, particularly those items which could cause damage to aircraft, tires, or engines. ______________________________________________________________________________________________________________________ Global Policy Information and Procedures Manual May 2015 Section 2. 8 c) Exterior areas around the buildings shall be well lighted, neat, and clear of debris. Lounge and Flight Services A suitable area should be provided, separate from the lounge, for service discussions between the customer and ASF personnel. The customer must have convenient access to facility location to obtain weather information and flight planning tools. All ASF facilities must comply with the local Federal, State and Local regulations, including any regulations applicable to providing access for the handicapped. ______________________________________________________________________________________________________________________ Global Policy Information and Procedures Manual May 2015 Section 2. 9 Spares and Tool Storage The ASF’s inventories of spare parts need to be stored in lockable secured area that is not openly accessible from the open areas of the hangar. Inventory storage will be appropriate for purposes of preserving the condition of the spare parts. Spare parts will not be exposed to rain, dust, sand or environmental conditions that may degrade the quality of the parts. Spare Parts need to be protected from dust, excess humidity, excess heat, and deterioration by exposure to direct sun. All parts will be stored on shelving units that are rated to support the weight of the parts. Small parts will be stored in suitably constructed and labeled bins. Serviceable stock and non- serviceable items including any used parts, damaged items, items whose service life has expired will be stored separately. Unserviceable or non-serviceable items will be suitably secured in a locked area until disposed of in such a way that the non-serviceable items cannot be accessed by unauthorized personnel. Special tools need to be suitably stored or board mounted, calibrated as required, identified with correct tool/part number and their use controlled to ensure availability when needed. All other servicing equipment including jacks, ladders, tugs, power carts, and all similar equipment should be properly maintained, serviced as required and stored in a neat and functional manner. Taxiway and Ramps Hangar access should be provided by taxiways and ramps in suitable size, length and strength, and maintained in accordance with the appropriate local regulations. Ramp space should be readily available to service transient aircraft and for parking of aircraft. The ramp should permit reasonable ground maneuvering of aircraft without undue danger of damage. Hard surface ramp space, with suitable tie down provisions, and weight capacity must be provided for overnight parking. ______________________________________________________________________________________________________________________ Global Policy Information and Procedures Manual May 2015 Section 3. 1 SECTION 3: Authorized Service Center Audit Authorized Service Facility Audit Each Textron Aviation Authorized Service Facility (ASF) must meet a minimum standard of technical competency, which is essential in providing owners and operators of Textron Aviation products with the very best in maintenance, engineering and support. Participants in the ASF Program will be subject to an initial evaluation prior to appointment, and subsequent periodic reviews by Textron Aviation to ensure initial and continuing compliance with the requirements of the Authorized Service Facility Program. This is to ensure full compliance with the conditions of appointment, and to promote continuous quality improvements to maintain the high level of integrity and quality that Textron Aviation expects of the Authorized Service Facility Program. The major points of these reviews will include status of technical publications, personnel training, ground support equipment, spares inventories, facility condition, regulatory approval, and consistent customer satisfaction. In order to ensure that a minimum criterion is met, Textron Aviation has established the On-site Service Facility Audit procedure for the purpose of evaluating Service Facilities. The audit procedures are outlined below, and the ASF requirements are detailed in the audit forms. On-site Service Facility Audit All current ASFs and prospective maintenance facilities are required to participate in On-site Service Facility audits. These processes determine if the facility has the necessary trained personnel, regulatory approvals, tools and equipment to carry out the specified work referenced in the Customer Support Agreement and detailed in this Textron Aviation Global Service Policy Information and Procedures Manual. Additionally, an ASF may be subject to an On-site Service Facility Audit Update by Textron Aviation during routine facility visits. These Audit Updates will review sections of any prior Onsite Service Facility Audit and may review new areas for purposes of documenting the ASF’s continued compliance in meeting Textron Aviation’s Authorized Service Facility Program requirements. The audits may include “self-audits” completed by the Authorized Service Facility, but will still be subject to the review and audit by Textron Aviation personnel. Of particular importance will be any information about improvements undertaken by the ASF to enhance its service and support for aircraft owners and operators. The results of any audit will be made available to the ASF. Any deficiencies and areas that require improvement will be identified by the Auditor for corrective action. ASFs are expected to take the necessary actions needed to bring their facility into full compliance with the requirements of the Authorized Service Facility Program within a reasonable period of time following the Audit. The ASF is required to issue a written response identifying the root cause and corrective action to be implemented on resolution of any deficiency findings. ______________________________________________________________________________________________________________________ Global Policy Information and Procedures Manual May 2015 Section 3. 2 Given the importance of providing consistent, best quality maintenance, service and product support, Textron Aviation may withhold or deny appointment of an ASF as a result of an Onsite Service Facility Audit that uncovers deficiencies in the ASF’s facility, personnel, tools or documentation. At Textron Aviation’s discretion, the service facility may be granted further consideration for appointment once the ASF can demonstrate that any deficiencies have been adequately corrected. The On-site Service Facility audit will focus on key elements that embody the requirements for an ASF to provide excellent customer service. The audit may review the ASF in connection with the following categories: 1. General information related to facilities, services, and location a. Availability of contact information. b. Hours of operation. c. Facilities and amenities for guests. d. Cleanliness and attractiveness of the facilities available to Textron Aircraft owners and operators. e. Affiliations and certifications that may enhance the services that ASF is able to provide (for example: additional model authorizations, limited line service to full service authorizations, etc.). 2. Key personnel names, contact information, and areas of responsibility are kept up to date. Applicable certifications and training are on file and properly recorded. The ASF is reminded that Textron Aviation needs to be notified of personnel changes that are critical to the ASF’s ability to service the aircraft that are part of the authorization. 3. Facility information: a. Overall facility specifications including but not limited to the size of the facility (sq ft/meters), hangar floor space (sq ft/meters), ramp area (sq ft/meters), hangar door width, and ramp area (sq ft/meters). b. Hangar space is required to house aircraft during service with sufficient work areas around the each aircraft to facilitate the movement of maintenance equipment. c. Facilities need to include suitable areas for passengers, pilots, and office areas. d. Fire protection shall conform to the safety code and the local laws applicable to the area and the type of operations being performed. e. Facility signage must adhere to the rules set forth by Textron Aviation related to the use of Textron brands, logos, signs and product images. Please consult the Textron Aviation Global Branding and Advertising Manager at Textron Aviation for the latest information related to signage and branding. 4. Maintenance approvals are required to be up to date with the audit and should include a list of the following: a. Specifications of the local Airworthiness Authority. b. A listing of all the ratings and certifications held by the ASF as well as any approvals relating to Textron Aviation brand aircraft. c. A listing of other non-Textron Aviation aircraft ratings, certifications and approvals. ______________________________________________________________________________________________________________________ Global Policy Information and Procedures Manual May 2015 Section 3. 3 d. A listing of any engine work approvals. e. A listing of avionics approvals and capabilities. f. Proper display of a current ASF plaque. 5. The ASF will demonstrate the availability of the required tools and ground support equipment to support the models they are rated or authorized to service. The audit related to required tools and shop equipment may include: a. A current inventory of the required tools and ground support equipment. b. Tooling and ground support equipment must be controlled or issued to ensure it is in a repaired and operable condition. c. There must be adequate procedures in place to ensure that the tools and test equipment are within their calibration requirements, and that filters, inventory items and safety equipment are within their expiration date or service life. d. Calibrations must be traceable to a recognized national standard. 6. Appropriate spare parts inventory and controls must be in place. a. A parts inventory control system is in place and there is an area dedicated to parts stock, which includes environmental controls for applicable parts. b. A separate locked or otherwise controlled area for any non-conforming parts or assemblies. 7. Appropriate technical publications are available, current, accessible, and subscriptions are in place. a. Computers and handheld devices and software must meet the requirements established for access to online Textron Aviation publications. 8. The ASF must have a quality manual that is in accordance with an aviation standard recognized by the industry. The quality manual must include the following: a. A system to audit part suppliers and/or external repair stations. b. Quality inspections of goods received, work in progress, and final inspection. c. Controls established for identification and handling of serviceable and unserviceable or non-conforming parts. 9. Technical training requirements must be met for each model included in the ASF’s authorization as described in the technical training section of this manual. Training audits may include the following: a. Identifying the maintenance personnel along with their licenses and approvals. b. Review or proof of training certificates. 10. Any additional element deemed to be important by Textron Aviation. A full On-site Service Facility Audit may be initiated by Textron Aviation at any time to ensure that the ASF is performing to the level expected. The results and conclusions of these audits will be made available to the ASF and will be discussed as necessary. Each ASF is expected to take the necessary actions to bring their facility into full compliance with the requirements of the Authorized Service Facility Program within a reasonable period of time. Failure to do so may result in the termination or non-renewal of the authorization in accordance with the provisions of Textron Aviation’s standard Agreement. ______________________________________________________________________________________________________________________ Global Policy Information & Procedures Manual May 2015 Section 4. 1 SECTION 4: Spare Parts Overview……………………………………………………………………………. 4.2 Responsibilities, Restrictions on Sales…………………………………………. 4.3 Marketing Programs and Public Relations…………………………………….. 4.3 Marketing Coordination…………………………………………………………… 4.4 Pricing and Payments……………………………………………………………. 4.4 Inventory Requirements…………………………………………………………. 4.4 Orders and Deliveries, Order Approval………………………………………… 4.5 Trade Discounts, Pricing and Rebates………………………………………… 4.6 Order Types………………………………………………………………………. 4.6 Drop Ship Orders………………………………………………………………… 4.7 TAPD Overhaul and Repair Service…………………………………………… 4.8 Core Return Requirements……………………………………………………… 4.9 Parts Returns……………………………………………………………………… 4.10 International Customer returns (ARG or Core)……………………………….. 4.11 Inventory Visibility……………………………………………………………….. 4.13 Appendix………………………………………………………………………….. 4.13 TAPD Limited Warranty………………………………………………………….. 4.17 ______________________________________________________________________________________________________________________ Global Policy Information & Procedures Manual May 2015 Section 4. 2 Overview Textron Aviation has appointed the Authorized Service Facility (“ASF”) to provide a convenient location for the owners and operators of Textron Aviation Aircraft to obtain service and support in accordance with the terms and conditions of any applicable Customer Support Agreement. Textron Aviation and the ASF have a mutual interest in maintaining the goodwill of the owners and operators In order to maintain this goodwill. It is desirable that each ASF provide prompt, quality service at a reasonable cost. Textron Aviation relies upon its ASF’s experience, judgment, resources and reputation to maintain the integrity and reliability of Textron Aviation’s products by providing prompt, courteous and efficient service to aircraft owners and operators. Textron Aviation Parts Distribution (TAPD) is the distributor of quality parts, manufactured by Textron Aviation and other suppliers, which are designed to be used or installed in Cessna, Hawker and Beechcraft products. Each ASF will maintain sufficient stock of parts to satisfy reasonable requirements of the aircraft models in the market it services. In exchange for the ASF providing exceptional service to Textron Aviation customers, TAPD provides discounts for spare parts. ______________________________________________________________________________________________________________________ Global Policy Information & Procedures Manual May 2015 Section 4. 3 Responsibilities Each ASF will stock the inventory needed to service the Aircraft models included in the Textron Aviation appointment. See the ASF Representative Agreement for additional obligations and responsibilities relating the ASF appointment. Restrictions on Sales Each ASF is responsible for ensuring that each sale of parts and services is in compliance with the U.S. and international laws and regulations restricting the sale of parts and services to some countries and end-users. For example, each ASF has agreed as part of its appointment not to sell, consign or deliver, nor offer or attempt to sell, consign or deliver, any Textron Aviation parts, or provide technology or assistance in maintaining or repairing any Textron Aviation aircraft to any country or to any customer where the sale, consignment or delivery is prohibited by the laws or regulations of the Government of the United States of America. Likewise, each international ASF is responsible for complying with its local laws and regulations. Textron Aviation through its subsidiary TAPD, has the right to directly provide Spare parts to its customers. In the event Textron Aviation sells spare parts or provides services directly to the customer, Textron Aviation and TAPD will have no obligation or liability to pay any commission, discount, margin or other compensation to the ASF as a result of the sale. Marketing Programs and Public Relations The ASF will actively participate in the promotional, merchandising and advertising programs developed by TAPD for the sale of Textron Aviation Parts. The ASF and its officers, agents, representatives and employees will not utilize, expose or disseminate any performance data or information relative to Textron Aviation spare parts other than the data and information that TAPD will provide to the ASF. ______________________________________________________________________________________________________________________ Global Policy Information & Procedures Manual May 2015 Section 4. 4 Marketing Coordination It is recognized by the ASF and TAPD that coordination and cooperation are necessary in order to accomplish the objectives of improved marketing conditions and the increased sale of Textron Aviation Parts. The ASF will endeavor to fully cooperate with TAPD in order to accomplish these goals. TAPD may audit the ASF to ensure that Textron Aviation Parts are being adequately stocked by the ASF. The ASF will allow representatives of TAPD to inspect and evaluate the ASF’s business facilities, books, records, inventory and personnel during regular business hours. In addition, each ASF will provide Textron Aviation with access to the ASF’s inventory records (whether by computer data link or other means) for purposes of allowing TAPD to timely locate specific Textron Aviation Parts which may be available for purchase in the Service Facility’s inventory. TAPD may circulate marketing surveys or request assistance from the ASF to gather other information that TAPD deems necessary in order to maximize customer satisfaction with Textron Aviation products and services. . Pricing and Payments The terms of pricing and discounts set forth in this PIPM may be changed by TAPD without advance notice and without incurring any liability on the part of TAPD. Failure to maintain an account within stated terms may result in revocation of open account privileges and/or loss of any discount or incentive or adoption of such other measures as are deemed appropriate by Textron Aviation. The purchase price of any part, any and all taxes imposed by any taxing authority arising from the sale, delivery or use of such part and for which TAPD may be held responsible for collection or payment either on its own behalf or that of the ASF, will be paid by the Service Facility to TAPD upon notice from TAPD that such payment is due. Where ever applicable, taxes will be for the account of the ASF and may be added to the invoice. Inventory Requirements ASF in existence for longer than twenty-four months shall maintain inventory in accordance with local usage history. Based on the usage history, the ASF will stock rotable components, single use components, class III hardware, and other items which have been sold three times or more in the prior twelve-month period. Newly appointed Authorized Service Facilities (i.e. those with less than twenty-four months experience with Textron Aviation) will be audited against the Minimum Spares List, listed in the Appendices for each model of aircraft that is part of their appointment. ______________________________________________________________________________________________________________________ Global Policy Information & Procedures Manual May 2015 Section 4. 5 Newly appointed ASF must comply with the requirements of the Minimum Spares List listed in the Appendices. At the end of each twelve-month period during the first 24 months of operation, any part listed in Minimum Spares List which was purchased by the ASF from TAPD, and which has not been sold at least once since the original purchase date, may be returned to TAPD in exchange for parts of equal value.. Textron Aviation requires the ASF (more than twenty-four months) to stock and maintain an inventory of those parts for which the ASF has had three (3) transactions in the preceding twelve (12) calendar months. If requested, the ASF will provide TAPD with a list of all part numbers the ASF is purchasing from sources other than TAPD. In the interest of assuring the safe and efficient operation of Textron Aviation aircraft as well as the preservation of type certificate integrity, the ASF shall supply or use parts approved by Textron Aviation. The ASF will never supply, sell, offer for sale or use in the repair of a Textron Aviation Aircraft any part represented to be a Textron Aviation approved part when it is not, in fact, a Textron Aviation approved part. No part will be deemed to be fully equivalent in quality and fitness for such use unless Textron Aviation has so certified in writing. Orders and Deliveries It is expected that the ASF rate of usage of the TAPD Service Network (electronic)/e-commerce site be 90 percent or higher. Failure to meet this requirement may result in the loss or reduction of the Service Facility’s discount. On a case-by-case basis, exemptions to this requirement will be granted upon verification of internet infrastructure difficulties which prevent reliable connectivity. All orders placed with TAPD will be subject to TAPD general terms and conditions and the ASF Agreement. Order Approval All orders are subject to credit approval by Textron Aviation and are only considered accepted when confirmed in writing or when shipment is made. An acknowledgment of receipt of an order is not an acceptance. ______________________________________________________________________________________________________________________ Global Policy Information & Procedures Manual May 2015 Section 4. 6 Trade Discounts, Pricing and Rebates Upon the Service Facility providing the highest level of service to our mutual customer, TAPD will provide certain parts discounts and rebate opportunities under this Program. Rebates: Authorized Service Facilities are eligible for two rebate opportunities: A rebate of up to 5 percent is calculated upon completion of each quarter. The Total Net Sale Rebate and Total Aftermarket Rebate is based upon year over year growth. The resulting rebate value is paid against proprietary sales. This percentage is calculated as follows: 2015 Textron Aviation Purchase Incentive Program Paid against proprietary sales Total Net Sales - % YoY Increase Rebate 10% 1% 20% 2% 30% 3% Total Aftermarket Sales - % YoY Increase Rebate 10% 1% 20% 2% * Aftermarket Rebate is not contingent on Total Sale Rebate * Excludes engine sales Any rebate value earned by an ASF will be paid in the form of a non-refundable credit to the ASF. The parts prices will be those that are in effect at the time of shipment. All prices are subject to change without prior notice. Order Types Aircraft-on-ground E-Business ______________________________________________________________________________________________________________________ Global Policy Information & Procedures Manual May 2015 Section 4. 7 Aircraft-on-ground Definition: An AOG order is defined as a part that is prohibiting the aircraft from being returned to service or prohibiting the aircraft from accomplishing its required mission. E-Commerce Definition: orders entered into the Textron Aviation website 1. Orders entered for “next-day” or “two-day” service will be considered Hot orders. 2. Orders entered for “three-day” service will be considered CS Orders (non-rush) 3. Orders entered for “ground” service will be considered Stocking Orders Free ground shipping (inside the U.S.): Domestic orders over $250 in value will be shipped free freight by TAPD via ground transportation (carrier will be determined by TAPD). The order must be entered into the TAPD Service Network by the Service Facility. All Hazmat, items over 108 inches in length, and orders over 150 pounds dimensional weight are not eligible for free freight. Free shipping (outside the U.S.): N/A Drop Ship Orders Definition: An order that is shipped directly to a location other than a facility owned by the sold to party. Domestic customers can drop ship within the U.S. International customers can drop ship if shipping within their own country. International customers can drop ship outside their own country if shipping to another company owned address. A drop ship fee of 10% with a minimum of $50 and a maximum of $500 will be applied. Drop ship fees apply to proprietary parts only. Consumable parts, such as tires, O-rings, filters, etc. will not incur a drop ship fee. Freight expense will be the responsibility of the sold to party. Shipments will be prepared without regard to consolidation requests. ______________________________________________________________________________________________________________________ Global Policy Information & Procedures Manual May 2015 Section 4. 8 TAPD Overhaul and Repair Service The TAPD Overhaul and Repair Services team established rotable parts pools to support Warranty, Support Plus, and ProAdvantage programs. These programs assist customers managing the direct operating costs of their aircraft. Parts supplied in connection with these programs will be accompanied by an Airworthiness Certificate Form 8130 that will identify the part as having been overhauled, repaired, rebuilt or serviceable. The identity and qualifying considerations are used in establishing the condition of the unit as defined below: a. Rebuilt (RBL) The disassembly, cleaning, inspection and repair as necessary, reassemble, and testing to the same tolerances and limits as a new part, using either new or used parts that conform to new parts tolerances and limits, or approved over and under size dimensions as established by the holder of the applicable approval under CFR Title 14, Part 21.305. b. Overhauled (OVH) The disassembly, cleaning, inspection, repair as needed, reassemble and testing in accordance with approved standards and technical data which have been developed and documented by the holder of the applicable approval under CFR Title 14, Part 21.305. c. Repaired (REP) Repairing or replacing parts as necessary to eliminate a specific unserviceable condition, followed by functional testing in accordance with technical data developed by the holder of the applicable approval under CFR Title 14, Part 21.305 sufficient to return the part to service in a condition at least equal in function to its original or properly altered condition with regard to qualities affecting airworthiness. d. Serviceable (SRV) Parts that have been inspected, tested, rectified, or modified, followed by functional testing in accordance with technical data developed by the holder of the applicable approval under CFR Title 14, Part 21.305. TAPD Rental parts may be provided for temporary use to the customer for a one time installation on an aircraft while the customer’s unit has been coordinated for repair through TAPD. All rentals are offered with a minimum one month rental charge plus recertification charges if applicable. Additional Rental charges and/or penalty charges may apply if Rental units are held 15 days past the availability of the customer’s part. A limited number of tools are available for rent and are also subject to additional charges if held for extended period of time. ______________________________________________________________________________________________________________________ Global Policy Information & Procedures Manual May 2015 Section 4. 9 Core Return Requirements (1) A copy of the Textron Aviation completed claim form must be attached to the returned core. (2) Cores must be returned with a completed service data tag documented by a licensed mechanic or authorized repair station. (3) Cores should be carefully repackaged to preclude shipping damage, and the original packing material/methods supplied should be reused when possible. (4) Cores must be returned to Textron Aviation, unless otherwise directed by Textron Aviation, within 30 days for US domestic orders or 45 days for international orders, calculated from the date of shipment. (5) Textron Aviation reserves the right to reject and return cores at customer expense and not issue core credit or reduced core credit for cores that are Beyond Economic Repair (“BER”), have incomplete data tags, have been disassembled, are not like for like part number or if the core returned exceeds normal run out condition and is going to incur charges over and above the standard overhaul. Textron Aviation will notify the ASF customer within 60 days from receipt of the core of any if any over and above back charges relating to core quality. (6) Failure to comply with the core return requirements may delay, reduce or forfeit core credit issuance. ______________________________________________________________________________________________________________________ Global Policy Information & Procedures Manual May 2015 Section 4. 10 Parts Returns Customers authorized to purchase parts direct from Textron Aviation may be eligible to return parts ordered in error. The following criteria must be met to return a mis-ordered part: (1) All returns must have prior approval. (a) For new part returns, requests to return components must be made within 30 days from date of shipment, for Hawker or Beech customers, via the WEB based “Create New Part Return” form found on www.Beechcraft.com, or for Cessna customers, by contacting the Cessna Sales Desk at dirop@txtav.com (Domestic) or iasf@txtav.com (International) (b) For warranty returns, requests to return components must be made within 30 days from discovery of defect: (i) for Hawker or Beech customers via the WEB based “Create Warranty Claim” form found on www.Beechcraft.com, or (ii) for Cessna customers, submit claims through www.CPDXpress.com or call 1.316.517.4658. (c) For more information or if you have any questions regarding return approval: • Beech or Hawker customers should contact a HBP&D Customer Service Representative at 888.727.4344 (US/Domestic) 316.676.3100 (International) or fax to 316.676.3222 (US/Domestic) 316.676.3327 (International) • Cessna customers should contact the Cessna Sales Desk for an ARG at 800.835.4000 (US/Domestic) or 316.517.5606 (International). (2) Parts must be returned with all freight and custom charges prepaid by the ASF. A copy of the Return Authorization form provided by Textron Aviation must be included in the shipment in addition to any other required shipping documents. (3) The Original Airworthiness Certificate (8130) furnished with the part being returned in the original shipment must accompany the part. (4) The parts must not have been installed on an aircraft or damaged, and in the opinion of Textron Aviation must be in the same condition as when they were sold by Textron Aviation. (5) The original packing material/methods should be reused when possible. (6) Returns must be properly cased, plugged or capped as appropriate and be suitably protected for shipment with packing, shock mounts, shipping flanges or other protective measures so that they arrive at Textron Aviation in good condition. Improper packing may be cause for rejection of credit. All rotable returns must have all original supplier paperwork. Statically sealed items must be returned unopened. ______________________________________________________________________________________________________________________ Global Policy Information & Procedures Manual May 2015 Section 4. 11 (7) All returned parts are subject to restocking charges of 20% of the invoiced price of the item ($50.00 minimum/$500.00 maximum). Any required recertification prior to restocking and/or items which must be added to part will be charged to the customer. (8) If the return is the result of a Textron Aviation error, all Textron invoiced costs will be credited including freight. (9) Claims to the freight carrier for carton damage should be submitted upon receipt for carton damage within ten (10) days from invoice date. International Customer Returns (ARG or Core) All return parts shipments from an International Distributor or Service Station (located outside of the United States) are cleared through United States Customs at the time of importation. There are procedural and documentation requirements, which must be accomplished by the Distributor or Service Station prior to the return of each shipment. These requirements are detailed below. When followed closely they aid in prompt entry of shipments into the United States with minimum cost to the Distributor or Service Station. Guidelines are as follows: Commercial Invoice: See Section 12. Export Compliance All correspondence regarding proper methods or returning parts should be directed to the Compliance Supervisor at 316-831-4916 or e-mail PropCustomsCompliance@cessna.textron.com. ______________________________________________________________________________________________________________________ Global Policy Information & Procedures Manual May 2015 Section 4. 12 ______________________________________________________________________________________________________________________ Global Policy Information & Procedures Manual May 2015 Section 4. 13 ______________________________________________________________________________________________________________________ Global Policy Information & Procedures Manual May 2015 Section 4. 14 Inventory Visibility The ASF will provide a daily listing of stock on hand inventory through a TAPD identified process. The communication of this inventory holding will provide: • TAPD with awareness of inventory available to support unrelated customers in the event of an AOG and best potential solution using ASFs inventory. • Inventory long held by the ASF or not qualified to be returned to TAPD could be leveraged to support a Hawker Beechcraft or Cessna operator. • Communication may come direct from another ASF or retail customer. • Reduced time/effort to audit SOH inventory during annual reviews. • Potential for increased communication from TAPD on superseded and/or obsolete inventory. Appendix TAPD General Terms and Conditions The following terms and conditions shall govern purchases of spare parts, ground support equipment, services of repair and overhaul, repair kits, reports, data, specifications, etc. for the Aircraft (collectively, “Aircraft Support Items”) from Cessna, Hawker Beechcraft Parts & Distribution (TAPD) a Kansas Limited Liability Company, and shall be incorporated into any Purchase Order(s) issued to TAPD by CUSTOMER for Aircraft Support Items. The placement of an order by CUSTOMER shall constitute acceptance by CUSTOMER of these terms and conditions. Any terms or conditions proposed by CUSTOMER inconsistent with or in addition to these terms and conditions shall be void and of no effect, unless specifically agreed to by TAPD. Taxes The prices set forth in individual Purchase Orders issued by CUSTOMER for Aircraft Support Items shall include all federal, state and local taxes imposed by the United States Government, any U.S. state or local government, or any agency, authority or department thereof. Such prices do not include any taxes, import duties or similar fees which may be levied or imposed upon the Aircraft Support Items or this Agreement or transaction by any other country, state, local or equivalent government, or any agency, authority or department thereof. Any such taxes, import duties or similar fees levied or imposed by any other government or any agency or department thereof shall be the sole responsibility of CUSTOMER. Therefore, any such taxes, import duties or similar fees ______________________________________________________________________________________________________________________ Global Policy Information & Procedures Manual May 2015 Section 4. 15 will be added to the price of the Aircraft Support Items unless CUSTOMER provides TAPD with an appropriate exemption certificate. CUSTOMER agrees to indemnify and hold TAPD harmless from and against the payment or imposition of any such taxes, import duties or similar fees. Delivery Delivery terms shall be EX Works, TAPD warehouse. Partial and immediate delivery of Aircraft Support Items shall be permitted at TAPD sole discretion. Title and risk of loss with respect to Aircraft Support Items shall pass to CUSTOMER upon delivery at TAPD warehouse, of said Aircraft Support Items to CUSTOMER or upon delivery to the shipping carrier. When an order is for two or more items TAPD may, at its discretion, ship either in lots or in a single shipment. Delivery Delays Delivery and shipping dates are estimates. Under no circumstances will TAPD be liable for any delay or failure in the delivery of Aircraft Support Items, or for any damages suffered by CUSTOMER by reason of such delay or failure, when the delay or failure is directly or indirectly caused by or in any manner arises from acts of God; acts of public enemies, the elements; fires; floods; accidents; riots; wars; actions or inactions of government; acts of terrorism; labor difficulties; inability to secure, delay in securing or shortages of raw materials, labor, fuel, power or transportation, delay or failure of any supplier; breakdown or destruction of plant or equipment arising from any cause whatsoever; or any other cause or causes (whether or not similar in nature to any of those specified) beyond TAPD reasonable control. In no event will TAPD be liable for any consequential damages, incidental damages, damages for loss of use or damages for loss of profits for any delay or failure in delivery regardless of the reason. Prices and Payment Prices are subject to change without notice. All orders are accepted subject to the TAPD price in effect at time of order. Payment is due immediately upon receipt of a Pre-Pay Invoice or by due date shown on the TAPD invoice. In no event shall CUSTOMER set off any payment due with any claim TAPD owes CUSTOMER, whether related to this purchase or any other transaction. CUSTOMER payments shall be made by either check or inter-bank wire transfer directly to the TAPD bank account, as shown of the pro forma billing or the TAPD invoice. If any payment due to TAPD from CUSTOMER is delayed by more than sixty (60) calendar days beyond the date of invoice, then the balance due is subject to interest at a rate 1.25 times the monthly prime interest rate charged by Bank of America of New York, New York, during the period of time such payments remain unpaid. CUSTOMER grants, with respect to the Aircraft Support Items delivered to CUSTOMER, a purchase money security interest and in all accession and proceeds thereof. This purchase money security interest shall be effective until CUSTOMER has made payment in full. ______________________________________________________________________________________________________________________ Global Policy Information & Procedures Manual May 2015 Section 4. 16 Changes TAPD shall have the right, without the consent of CUSTOMER, to make changes in the Aircraft Support Items and to substitute equivalent equipment, accessories or material where such changes or substitutions are deemed necessary by TAPD provided that such changes or substitutions shall not adversely affect the price, time of delivery or performance of the Aircraft Support Items, nor significantly affect its design, performance, weight or balance; and provided further that, in the event such changes or substitutions are for any reason not accepted by CUSTOMER shall be permitted to return the changed or substitution equipment, accessories or material to TAPD and receive a full credit against its purchase of them provided that the changed or substitution equipment, accessories or material has not been installed on any aircraft, in which event any right of repair or return shall be governed by the TAPD Limited Warranty described below. TAPD will advise CUSTOMER of any changes to Aircraft Support Items ordered by CUSTOMER and will provide the reasons for such change. TAPD will notify CUSTOMER of any such changes and the reasons therefore as soon as reasonably possible and will endeavor to do so prior to delivery of the items to CUSTOMER. TAPD notice to CUSTOMER may be provided by U.S. mail, facsimile, telephone or by e-mail. Paperwork Provided TAPD does not supply manufacturer’s certifications for Aircraft Support Items. Lot or batch numbers are not provided unless the Aircraft Support Item is a color or serialized part. ______________________________________________________________________________________________________________________ Global Policy Information & Procedures Manual May 2015 Section 4. 17 Entire Agreement These terms and conditions and the purchase order to which they are attached represent the entire agreement between TAPD and CUSTOMER with respect to this subject matter and supersedes all prior oral and written understandings and agreements of the parties. Amendments Any extensions, amendments, modifications or supplements to these terms and conditions and/or the purchase order to which they are attached must be accomplished in writing by TAPD and CUSTOMER. Confidentiality These terms and conditions and the purchase order to which they are attached are strictly confidential between TAPD and CUSTOMER. Except as may be required by law, each party shall use its reasonable commercial efforts to keep these terms and conditions and the purchase order to which they are attached confidential; provided, each party may disclose, without the prior written consent of the other party, to such party’s employees, officers, directors, accountants, lawyers, bankers, investors, insurers, shareholders, financiers, agents and consultants. Damages TAPD SHALL NOT BE LIABLE FOR ANY GENERAL, CONSEQUENTIAL OR INCIDENTAL DAMAGES, INCLUDING, WITHOUT LIMITATION, ANY DAMAGES FOR LOSS OF USE, LOSS OF PROFITS OR DIMINUTION OF MARKET VALUE, AND TAPD SHALL NOT BE LIABLE FOR ANY DAMAGES CLAIMED BY THE CUSTOMER OR ANY OTHER PERSON OR ENTITY UPON THE THEORIES OF NEGLIGENCE OR STRICT LIABILITY IN TORT AS A RESULT OF TAPD PERFORMANCE UNDER THESE TERMS AND CONDITIONS AND THE PURCHASE ORDER TO WHICH THEY ARE ATTACHED. Governing Law The laws of the state of Kansas as effective and in force on the date of the Purchase Order to which these terms and conditions are attached shall apply to the sale of the Aircraft Support Items by TAPD to CUSTOMER. Export Any subsequent export or re-export of the Aircraft Support Items shall be accomplished in accordance with all applicable U.S. export laws and regulations, including the International Traffic in Arms Regulations or Export Administration Regulations. In connection with and without limiting the general applicability of the foregoing, CUSTOMER shall not export or re-export the Aircraft ______________________________________________________________________________________________________________________ Global Policy Information & Procedures Manual May 2015 Section 4. 18 Support Items to nationals of prohibited countries or to any non-U.S. Persons (as defined in Section 120.16 of the International Traffic in Arms Regulations) whether in the United States or abroad unless the necessary export licenses have been obtained. In the event CUSTOMER exports the Aircraft Support Items from the United States, TAPD will not be designated the exporter of record. CUSTOMER indemnifies TAPD from and against the consequences of any failure of CUSTOMER to comply with the above stated U.S. export laws and regulations. Diversion of the Aircraft Support Items contrary to U.S. law is strictly prohibited. Textron Aviation Parts Distribution (TAPD) LIMITED WARRANTY All TAPD parts are covered by the following LIMITED WARRANTY, which gives Buyer specific legal rights. The law of Kansas applies to this warranty. A. Textron Aviation Spare Part Limited Warranty: (1) Subject to the limitations and conditions below, Textron Aviation provides a Spare Part Warranty for each new and exchange spare part sold by Textron Aviation to be free from defects in material and workmanship; provided, however, that the defect must be discovered and reported within a period of six (6) months from date of installation, and the claim must be filed and part returned to Textron Aviation within thirty (30) days of discovery of the defect. (2) The entire extent of Textron Aviation's liability shall be limited to repairing or replacing at Textron Aviation’s sole discretion, any replacement part or assembly within the 6 month warranty period. The flat rate labor established by Textron Aviation necessary to remove the part from the aircraft and reinstall it will also be covered by this Limited Warranty, provided the work is performed at a properly rated Textron Aviation Authorized Service Facility. (3) The part to be repaired or replaced must in all instances be returned, shipping prepaid, to Textron Aviation and with a Textron Aviation issued Return Authorization. All import duties, customs brokerage charges, sales tax, use taxes and misc. fees, if any, on such warranty repairs or replacements assemblies or parts are the warranty recipient’s sole responsibility. This Spare Part Limited Warranty will apply to any part repaired or replaced by a properly rated Textron Aviation Authorized Service Facility pursuant to this Warranty, provided, however that such warranty for the part repaired or replaced shall be limited to the unexpired portion of the Spare Parts Limited Warranty described in paragraph (1) above, as applicable. In other words, the warranty period of the part repaired or replaced does not re-start from the date of reinstallation. ______________________________________________________________________________________________________________________ Global Policy Information & Procedures Manual May 2015 Section 4. 19 B. Limitations Applicable to Textron Aviation’s Spare Part Warranty: (1) This Spare Part Warranty shall be void, and Textron Aviation will be relieved of all obligations and liability under this Warranty if: (a) The alleged defect in the part is caused by misuse, abuse, or negligence on the part of someone other than Textron Aviation, or by corrosion, delamination or accident; or (b) The alleged defect in the part is the result of normal wear, exposure or maintenance service, that in any way that, in the sole judgment of Textron Aviation, adversely affects the performance, stability or reliability, or found to be free of defects; or (c) Any Textron Aviation or manufacturer identification mark or name or serial number has been removed; or (d) The aircraft and/or equipment has not been maintained, operated or stored either in accordance with applicable manuals, communications or other written instructions of Textron Aviation or any manufacturer of the part involved, or in accordance with applicable Federal Aviation Regulations and advisory circulars unless Buyer shows that such maintenance, operation or storage was not a contributory cause of the defect; or (e) The part has been modified or altered after delivery other than by its manufacturer or in accordance with a modification or alteration scheme approved in writing by its manufacturer. In addition, any part or system of the aircraft affected by a modified or altered part will not be covered by this Warranty; or (f) The part is used on the aircraft for purposes other than conventional owner/operator usage. Usage not considered conventional owner/operator usage includes, but is not limited to, scheduled airline, shared ownership fleet, government/military or special mission operations and flight/pilot training operations; or (g) If the alleged defect in or damage to the part was ascertainable by visual inspection upon receipt from Textron Aviation and a claim is not submitted to the Textron Aviation Warranty Department within thirty (30) days from invoice date. This will require end buyer to do a visual inspection of all Textron Aviation parts upon receipt at the ship-to destination. (2) Textron Aviation shall not be in breach of this Spare Part Limited Warranty solely because a part requires, subsequent to its delivery, some modification or alteration for product improvements or in order to meet a change in the requirements of any applicable Federal Aviation Regulation. (3) TEXTRON AVIATION HEREBY DISCLAIMS, AND BUYER WAIVES AS TO SELLER AND TEXTRON AVIATION, ALL OTHER WARRANTIES, WHETHER OF MERCHANTABILITY, FITNESS OR OTHERWISE. THERE ARE NO WARRANTIES WHICH EXTEND BEYOND THE DESCRIPTION ON THE FACE HEREOF. (4) THE OBLIGATIONS OF TEXTRON AVIATION SET FORTH HEREIN SHALL BE THE EXCLUSIVE REMEDIES FOR ANY BREACH OF WARRANTY, AND, TO THE SAME EXTENT, NEITHER TEXTRON AVIATION NOR SELLER SHALL BE LIABLE FOR ANY ______________________________________________________________________________________________________________________ Global Policy Information & Procedures Manual May 2015 Section 4. 20 GENERAL, CONSEQUENTIAL, INCIDENTAL, SUBSEQUENT OR COLLATERAL DAMAGES, INCLUDING, WITHOUT LIMITATION, ANY DAMAGES FOR DIMINUTION OF MARKET VALUE, LOSS OF USE OR LOSS OF PROFITS, OR ANY DAMAGES TO THE AIRPLANE CLAIMED BY THE BUYER OR ANY OTHER PERSON OR ENTITY UPON THE THEORIES OF NEGLIGENCE OR STRICT LIABILITY IN TORT. (5) ANY ACTION BY BUYER FOR BREACH OF THIS WARRANTY BY EITHER TEXTRON AVIATION OR THE PART SELLER MUST BE COMMENCED WITHIN ONE (1) YEAR AFTER THE CAUSE OF ACTION ACCRUES. THE CAUSE OF ACTION ACCRUES WHEN THE BUYER FIRST LEARNS THAT THE WARRANTY HAS BEEN BREACHED. C. Other warranties applicable to certain Cessna Citation aircraft: (1) Honeywell, Collins and Ametek parts have a twelve month warranty, regardless of shelf life; and (2) Select Brake Programs must have reported landings on the respective brake at time of removal for a pro-rated credit consideration to be issued (to be accomplished using the Wear Pin Tool). D. Hawker 4000 and Premier parts: Textron Aviation does not extend a warranty for Hawker 4000 and Premier parts. The warranty, if any, offered by the parts manufacturer will be passed through to the Buyer. Textron Aviation will process a warranty claim for a Hawker 4000 or Premier part with the parts manufacturer on behalf of the Buyer. The defect must be discovered and reported within twelve (12) months of date of purchase for new, overhauled, rebuilt, repaired and serviceable Hawker 4000 or Premier parts, and the claim must be filed within thirty (30) days of discovery of the defect. ______________________________________________________________________________________________________________________ Global Policy Information and Procedures Manual May 2015 Section 5.1 Section 5: TOOLING AND GROUND SUPPORT EQUIPMENT Overview ......................................................................................................................................... 2 Design and Reproduction of Parts, Tooling, Documentation and Drawings ............................ 3 ______________________________________________________________________________________________________________________ Global Policy Information and Procedures Manual May 2015 Section 5.2 Overview To enhance the quality and efficiency of service and support provided to Textron Aviation customers, a high level of Tooling and Ground Support Equipment (GSE) is expected at all Textron Aviation Authorized Service Facilities (ASF). Textron Aviation has established minimum requirements for tooling and GSE necessary for ASF appointment; however, Textron Aviation would encourage all ASFs to exceed these minimum requirements. Tooling and GSE to support Textron Aviation Aircraft is a requirement for appointment as an ASF. Textron Aviation expects the ASF to have basic tools, shop equipment and ground support to meet airworthiness authority certification requirements for Repair Stations and to carry out the support services to be performed. Textron Aviation requires the ASF to obtain and maintain direct control on-site at each facility appointed by Textron Aviation, specific tools and GSE to carry out the support services to be performed on the aircraft for which they have been recognized under the Agreement. The list of required tooling and GSE specific to carrying out the support services can be viewed at the following locations: CPDexpress and Beechcraft website. These lists contain specific tooling and GSE related to the level of support services to be provided under the Support Agreement. A facility that applies to become an ASF or add an Aircraft Model Authorization that does not possess the required tooling and GSE will be expected to purchase the appropriate equipment and provide proof of purchase to Textron Aviation prior to ASF approval. A Candidate for Authorization would not be expected to purchase additional tooling and GSE if existing equipment can be shown to demonstrate, to Textron Aviation’s approval and satisfaction, equivalent capability or specifications to those on our required list. Changes in the tooling and GSE requirements may occur as new equipment is identified or old equipment deleted. An ASF will be expected to purchase additional tooling and GSE as required. Textron Aviation may withhold initial recognition or withdraw continued recognition in accordance with the provisions of its standard Agreement if the tooling and GSE requirements are not met. To order GSE please contact Textron Aviation Parts and Distribution (TAPD) or equipment suppliers directly as appropriate. ______________________________________________________________________________________________________________________ Global Policy Information and Procedures Manual May 2015 Section 5.3 Design and Reproduction of Parts, Tooling, Documentation and Drawings Textron Aviation typically does not provide drawings to allow the local manufacture of specified tools and GSE required for ASF appointment. However, Textron Aviation may from time to time include simplified drawings, schematics and instructions in applicable aircraft technical publications to allow such items to be fabricated locally. Unless instructions, drawings and/or schematics are available in Textron Aviation’s technical publications to allow local fabrication of an item for the ASF’s own use, the ASF acknowledges that they will not design or reproduce, nor cause or permit the design or reproduction of any identical or similar product, part, tool, document or drawing, sold or furnished by Textron Aviation to its customers and/or the ASF under this Agreement. Likewise, nothing in this Agreement shall be interpreted as conveying to the ASF a right or license with respect to any patent or other legal right owned or controlled by Textron Aviation. The ASF agrees that Textron Aviation assumes no responsibility for any tools and/or GSE required under this Agreement that are not maintained, calibrated to industry standards, and/or repaired in accordance published instructions of the equipment supplier or Textron Aviation as appropriate. Neither does Textron Aviation assume responsibility for any tools and/or GSE fabricated by companies other than Textron Aviation or its recognized suppliers. ______________________________________________________________________________________________________________________ Global Policy Information & Procedures Manual May 2015 Section 6. 1 Section 6: TECHNICAL TRAINING REQUIREMENTS Overview ......................................................................................................................................... 2 Beechcraft Jet, Beechcraft Propeller, and Cessna Jet Authorized Service Facilities .............. 3 Cessna Propeller Authorized Service Facilities .......................................................................... 4 Other Technical Training Options ................................................................................................ 5 Appendix A- Recognized Technical Training Facilities .............................................................. 6 Appendix B- Minimum Training Requirements ........................................................................... 7 ______________________________________________________________________________________________________________________ Global Policy Information & Procedures Manual May 2015 Section 6. 2 Overview To enhance the quality and efficiency of service and support provided to Textron Aviation customers, a high level of technical training is expected of all Textron Aviation Authorized Service Facilities (ASF). Textron Aviation has established minimum requirements for the technical training necessary for an ASF appointment; however, Textron Aviation would encourage all ASF’s to exceed these minimum requirements. Historical records of personnel who are trained to meet the requirements of the ASF Program will be maintained by the ASF, and will be made available to Textron Aviation for inspection during periodic ASF audits, or upon the request of Textron Aviation. The ASF may also propose alternate methods of complying with the training requirements, provided that the ASF submits a training plan to Textron Aviation and receives prior written approval. The ASF will be responsible for all costs and expenses incurred in connection with the required training. Textron Aviation reserves the right to change the minimum technical training requirements, may impose additional training requirements and eliminate training requirements for the ASF at any time without prior notice. ______________________________________________________________________________________________________________________ Global Policy Information & Procedures Manual May 2015 Section 6. 3 Beechcraft Jet, Beechcraft Propeller, and Cessna Jet Authorized Service Facilities The ASF will employ an adequate number of maintenance personnel who are currently trained, licensed, authorized and actually performing inspections and maintenance on a regular basis on the aircraft for which they have been appointed under the Agreement. Ten percent (10%) or more of the ASF’s maintenance personnel, but no fewer than two (2) maintenance technicians, on each work shift must have been trained and rated by an entity listed in Appendix A of this section of the Manual within the last 5 years to work on each of the models of aircraft included in the ASF’s authorization. Training shall include Textron airframe, and major OEM Supplier components and systems listed in Appendix B of this section of the Manual: engines, avionics, and APU. At least one (1) qualified technician per shift must have attended major OEM Supplier component training within the last 5 years and be rated to work on each of the models of aircraft included in the authorization. The ASF will ensure that all required training is performed at a training facility which is recognized by Textron Aviation and approved by the ASF’s local Airworthiness Authority, if such approval is required by the Airworthiness Authority. Training for all OEM Supplier components shall be at the relevant manufacturer's approved training facilities, or a training facility recognized by the manufacturer and Textron Aviation. All trained technicians must be full time employees of the ASF. Appendix A of this section of this manual provides a list of training facilities that are recognized as capable of providing technical training to the standards required under the Agreement. Information on training, including locations, course description, applicable discounts, and duration is available on request from the recognized training suppliers. On-site training may also be available. ______________________________________________________________________________________________________________________ Global Policy Information & Procedures Manual May 2015 Section 6. 4 Cessna Propeller Authorized Service Facilities ASF’s are responsible for implementing and conducting a continuing training program for all personnel in their organization. Please refer to your Service Facility Standards (SFS) Form for all required training and minimum training requirements. SFS Form will be provided by your Textron Aviation Field Service Representative. Textron Aviation Field Service will provide counsel, guidance, and the training availability, which will ensure the effective operation of the training activities as well as monitor the training requirements to ensure the completion of the SFS-required training in a timely manner. Please contact your Textron Aviation Field Service Representative. ______________________________________________________________________________________________________________________ Global Policy Information & Procedures Manual May 2015 Section 6. 5 Other Technical Training Options Many sources are available to enhance the aircraft maintenance technician’s knowledge of the systems and components installed in Textron Aviation’s Aircraft. Textron Aviation encourages the ASF’s to continually invest in technical staff training. This commitment by the ASF yields greater efficiency and maximizes profit potential. ASF’s personnel benefit from increased motivation, and Textron Aviation customers achieve maximum satisfaction. Additional means of meeting the training requirements may involve avionics, system, and major component training. Training courses from other sources may meet the ASF’s training requirements, and may be acceptable provided that the ASF’s submits and receives approval of a training plan from their Textron Aviation Field Service Representative. ______________________________________________________________________________________________________________________ Global Policy Information & Procedures Manual May 2015 Section 6. 6 APPENDIX A Recognized Technical Training Facilities FlightSafety International See website for locations and course listings www.flightsafety.com CAE (SimuFlight) See website for locations and course listings www.cae.com Glennair See website for locations and course listings www.glennair.co.uk Global Jet Services, Inc. See website for locations and course listings www.globaljetservices.com ______________________________________________________________________________________________________________________ Global Policy Information & Procedures Manual May 2015 Section 6. 7 APPENDIX B Minimum Training Requirements ASF Audit Program For purposes of the Textron Aviation ASF Audit Program, airframe / engine / systems training courses listed below will be reviewed. Textron Aviation will not audit “general” avionics equipment training since those shop requirements are monitored by avionics manufacturers individually. See footnotes for recognized training providers and special conditions. Beechcraft Piston Product 1. Beechcraft Baron / Bonanza Combined Maintenance Course 2. Teledyne Continental Motors Advanced Engine Class 3. Air Conditioning Service / Refrigerant Handling Certification (local class compliant with Section 609 of the Clean Air Act Amendments of 1990) 4. Garmin G-1000 Avionics (Garmin factory class at Olathe, Kansas) Beechcraft King Air 1. Beechcraft King Air C90 Initial Maintenance Course 2. Beechcraft King Air 200/B200 Initial Maintenance Course 3. Beechcraft King Air 300/350 Initial Maintenance Course 4. Pratt and Whitney “Small” PT6 Line Maintenance Course 5. Pratt and Whitney “Large” PT6 Line Maintenance Course 6. Air Conditioning Service / Refrigerant Handling Certification (local class compliant with Section 609 of the Clean Air Act Amendments of 1990) 7. Beechcraft Structural Inspection and Repair Course 8. Pro Line Avionics Airframe Interface Beechjet 400A / Hawker 440XP 1. Model 400 Series Initial Maintenance Course 2. Pratt and Whitney JT15D Line Maintenance Course 3. Pro Line Avionics Airframe Interface 4. Air Conditioning Service / Refrigerant Handling Certification (local class compliant with Section 609 of the Clean Air Act Amendments of 1990) Beechcraft Premier 1. Beechcraft Premier Initial Maintenance Course 2. Williams FJ-44-2A Engine Line Maintenance Course 3. Air Conditioning Service / Refrigerant Handling Certification (local class compliant with Section 609 of the Clean Air Act Amendments of 1990) 4. Pro Line Avionics Airframe Interface 5. Composite Material Structural Repair (FSI or equivalent) ______________________________________________________________________________________________________________________ Global Policy Information & Procedures Manual May 2015 Section 6. 8 Hawker 1. Model 700/800 Series Initial Hawker Maintenance Course 2. Model 1000 Initial Hawker Maintenance Course (if ASF supports Hawker 1000s) 3. Honeywell TFE-731 Engine Line Maintenance 4. Pratt and Whitney PW-305 Engine Line Maintenance (if ASF supports Hawker 1000s) 5. Honeywell 36-150 Series APU Maintenance 6. Hamilton Standard / Sunstrand T40 Series APU Maintenance 7. Pro Line Avionics Airframe Interface Cessna 510 Mustang 1. 510 Series Maintenance Course 2. Pratt & Whitney PW615