Frontier Airlines 2011 Annual Report Download - page 158

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(v) total claim value.
12.1.7.5 []
The Buyer’s sole remedy and the Seller’s sole obligation and liability with respect to Inhouse Warranty Claims will be [*], determined as
set forth below:
[*]The Inhouse Warranty Labor Rate is [*], defined in the Seller’s Price Revision Formula set forth in Exhibit C to the Agreement.
12.1.7.6 [*] Limitation
The Buyer will in [*]
12.1.7.7 Scrapped Material
The Buyer will retain any defective Warranted Part beyond economic repair and any defective part removed from a Warranted Part during
repair for a period of either [*] of the Seller’s request to that effect.
Notwithstanding the foregoing, the Buyer may scrap any such defective parts, which are beyond economic repair and not required for
technical evaluation locally, with the agreement of the Seller Representative(s).
Scrapped Warranted Parts will be evidenced by a record of scrapped material certified by an authorized representative of the Buyer and
will be kept in the Buyer’s file for a least the duration of the applicable Warranty Period.
12.1.8 Standard Warranty in case of Pooling or Leasing Arrangements
Without prejudice to Clause 21.1, the warranties provided for in this Clause 12.1 for any Warranted Part will accrue to the benefit of any
airline in revenue service, other than the Buyer, if the Warranted Part enters into the possession of any such airline as a result of a pooling
or leasing agreement between such airline and the Buyer, in accordance with the terms and subject to the limitations and exclusions of the
foregoing warranties and to the extent permitted by any applicable law or regulations.
12.1.9 Warranty for Corrected, Replaced or Repaired Warranted Parts
Whenever any Warranted Part, which contains a defect for which the Seller is liable under Clause 12.1, has been corrected, replaced or
repaired pursuant to the terms of this Clause 12.1, []
If a defect is attributable to a defective repair or replacement by the Buyer, a Warranty Claim with respect to such defect will be rejected,
notwithstanding any subsequent correction or repair, and will immediately terminate the remaining warranties under this Clause 12.1 in
respect of the affected Warranted Part.
* Confidential