Frontier Airlines 2011 Annual Report Download - page 194

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Specification, the BFE Engineering Definition or the certification requirements.
18.3 Buyer’s Obligation and Seller’s Remedies
18.3.1 Any delay or failure by the Buyer or the BFE Suppliers in:
(i) complying with the foregoing warranty or in providing the BFE Engineering Definition or field service mentioned in Clause
18.1.4, or
(ii) furnishing the BFE in a serviceable condition at the requested delivery date, or
(iii) obtaining any required approval for such BFE equipment under the above mentioned Aviation Authorities’ regulations,
may delay the performance of any act to be performed by the Seller, including Delivery of the Aircraft. The Seller will not be
responsible for such delay which will cause the Final Price of the affected Aircraft to be adjusted in accordance with the updated
delivery schedule and to include in particular the amount of the Seller’s additional costs attributable to such delay or failure by the Buyer
or the BFE Suppliers, such as storage, taxes, insurance and costs of out-of sequence installation.
18.3.2 In addition, in the event of any delay or failure mentioned in 18.3.1 above, the Seller may:
(i) select, purchase and install equipment similar to the BFE at issue, in which event the Final Price of the affected Aircraft will also be
increased by the purchase price of such equipment plus reasonable costs and expenses incurred by the Seller for handling charges,
transportation, insurance, packaging and, if so required and not already provided for in the Final Price of the Aircraft, for
adjustment and calibration; or
(ii) if the BFE is delayed by more than ten (10) days beyond, or is not approved within ten (10) days of the dates specified in Clause
18.1.4, deliver the Aircraft without the installation of such BFE, notwithstanding applicable terms of Clauses 7 and 8, and the
Seller will thereupon be relieved of all obligations to install such equipment.
18.4 Title and Risk of Loss
Title to and risk of loss of any BFE will at all times remain with the Buyer except that risk of loss (limited to cost of replacement of said
BFE) will be with the Seller for as long as such BFE is under the care, custody and control of the Seller.
18.5 Disposition of BFE Following Termination
18.5.1 []
18.5.2 The Buyer will cooperate with the Seller in facilitating the sale of BFE pursuant to Clause 18.5.1 and will be responsible for all
costs incurred by the Seller in removing and facilitating
* Confidential