Delta Airlines 2014 Annual Report Download - page 162

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rate (excluding all fringe benefits, premium time allowances, social security charges, business taxes
and similar items) paid to the Buyer’
s employees whose jobs are directly related to the performance of
the repair (the “ In-house Warranty Labor Rate ”).
The Buyer shall in no event be credited for repair costs (including labor and material) for any Warranted Part
exceeding [***] of the Seller’s then current catalog price for a replacement of such defective Warranted Part.
Such cost shall be substantiated in writing by the Seller upon reasonable request by the Buyer.
The Buyer shall retain any Warranted Part defective beyond economic repair and any defective part removed
from a Warranted Part during repair until the earlier of [***] after submission of a claim for In-
house Warranty
credit relating thereto or the Seller’
s written advice to the Buyer that such Warranted Part should be scrapped.
Such parts shall be returned to the Seller within [***] of receipt of the Seller’s request to that effect.
Notwithstanding the foregoing, the Buyer may, with the agreement of the Seller’
s Field Representative, scrap
any such defective parts that are beyond economic repair and not required for technical evaluation.
[***]
THE SELLER SHALL NOT BE LIABLE FOR ANY RIGHT, CLAIM OR REMEDY, AND THE BUYER
SHALL INDEMNIFY THE SELLER AGAINST THE CLAIMS OF ANY THIRD PARTIES FOR ANY
DEFECT, NONCONFORMANCE OR PROBLEM OF ANY KIND, ARISING OUT OF OR IN
CONNECTION WITH ANY REPAIR OF WARRANTED PARTS OR ANY OTHER ACTIONS
UNDERTAKEN BY THE BUYER UNDER THIS SUBCLAUSE 12.1.7 WHICH WAS NOT IN
COMPLIANCE WITH THE TERMS
[***] CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO
A REQUEST FOR CONFIDENTIAL TREATMENT
(c)
Direct material costs are determined by the prices at which the Buyer acquired such material, excluding any
parts and materials used for overhaul and furnished free of charge by the Seller.
(vi)
Limitation on Credit
(vii)
Scrapped Material
(viii)
LIMITATIONS ON LIABILITY OF SELLER
CT1404840_PA_A330-900neo_A350-900_EXECUTION.Docx
PRIVILEDGED AND CONFIDENTIAL
47