Cores

“Eligible Return Core” means a Return Core that is able to be overhauled as determined by HET in its reasonable discretion, which excludes any Return Core that has rust, weld repairs, missing parts, or was re-assembled with used parts. An Eligible Return Core is a unit/component “as removed” from the aircraft notwithstanding certain missing parts identified below, and HET may reduce the Core Charge credit applicable by the percentages identified below on a cumulative basis (provided, however, in no event shall the reduction be more than 100%.

 

Starter Core Charge Backs

DescriptionPercentage Core Charge
Hardware (Missing)5%
Gear Missing or Sub-Shaft Damaged10%
Armature Frozen/Binding or Switch Missing20%
Lever (Missing)22%
Armature (Missing)25%
Drive End Housing (Damaged/Missing)35%
End Frames-Elongated Bolt Holes (Missing)35%
Housing or Locating Pins (Damaged)35%
Intermediate Fear Hsg. (Damaged/Missing)35%

Starter Adapter Core Charge Backs

DescriptionPercentage Core Charge
Damaged or Cracked Housing50%
Damaged or Cracked Cover25%
Scrap Shaft25%

HARTZELL ENGINE TECHNOLOGIES LLC CORE POLICY

Hartzell Engine Technologies LLC (HET) has established this Core Policy that governs the handling and disposal of cores for any HET product (“Cores”) that come into the possession of the undersigned distributor of HET (Distributor).  Cores are as defined from time-to-time by HET and communicated to Distributor.

As set forth in the Distributor Agreement between HET and Distributor, HET is to be paid a core charge with respect to the applicable HET Product (the “Core Charge”). The Core Charge is fully due and payable to HET upon invoice for the HET Products to which it relates.

Distributor shall maintain all Cores that come into its possession, and shall store those Cores in a safe, weather-proof, indoor location at one or more of its facilities.

On a calendar quarter basis, or on a more frequent basis as mutually agreed upon by HET and Distributor, HET will provide to Distributor in writing: (i) a list of the types of Cores that HET would seek to have the Distributor return to HET for further handling and use (Return Cores); and (ii) a list of the types of Cores that HET would ask that the Distributor dispose of (Disposal Cores).

Within fifteen (15) days after receipt of written notice from HET per the above, Distributor shall return to HET all Return Cores, with transport as specified by HET (and at Distributor’s cost).  Within fifteen (15) days after receipt of written notice from HET per the above, Distributor shall dispose of all of the Disposal Cores in accordance with all applicable laws, rules, and regulations.  Distributor shall maintain such written records of the Disposal Cores (and/or applicable data tags) as specified from time-to-time by HET, and shall provide those records and tags to HET at any time within 5 days of written request by HET. HET shall be entitled to all rights of title and possession of any Return Cores, regardless of whether they qualify as Eligible Return Cores as noted below.

Upon receipt of Eligible Return Cores, and if applicable receipt of proof of the disposal of Disposal Cores, HET will provide Distributor a credit as against previously paid Core Charges from the same or similar products purchased from HET (similar products being as determined from time-to-time by HET and communicated to Distributor). A credit will be applied to the oldest applicable Core Charge that is not more than twelve (12) months old, measured from the date of invoice for the Core Charge and the date HET receives the Eligible Return Core or proof of disposal of the Disposal Core. Core Charges more than twelve (12) months old, as measured above, are not eligible for a credit.

“Eligible Return Core” means a Return Core: (i) with an identified, corresponding invoice number for a Core Charge, (ii) that is able to be overhauled as determined by HET in its reasonable discretion, which excludes any Return Core that has rust, weld repairs, missing parts, or was re-assembled with used parts, and (iii) that does not cause Distributor to be entitled to credits on Core Charges exceeding the total Core Charges eligible for a credit. A Return Core is an Eligible Return Core notwithstanding certain missing parts identified on Exhibit A to this Core Policy, but HET may reduce the Core Charge credit applicable to that Return Core by the percentages identified on Exhibit A on a cumulative basis (provided, however, in no event shall the reduction be more than 100%).

This Core Policy is an amendment to, and is a part of and incorporated into, that Distributor Agreement between HET and Distributor.