US Airways 2007 Annual Report Download - page 384

10.2.4 **
10.3 Except as otherwise set forth herein, all transportation costs for the return of surplus Material under this Paragraph 10, including any applicable
insurance and customs duties or other related expenditures, will be borne by the Seller.
10.4 The Seller's obligation to repurchase surplus and obsolete Material depends upon the Buyer's demonstration, by the Buyer's compliance with the
requirements set forth in Paragraph 9 of this Letter Agreement, that such Material exceeds the Initial Provisioning requirements.
11 WARRANTIES
11.1 WARRANTIES ON SELLER PARTS
11.1.1 Nature of Warranty
Subject to the limitations and conditions hereinafter provided, and except as provided in Paragraph 11.1.2, the Seller warrants to the Buyer that each
Seller Part will at the time of Delivery to the Buyer be free from defects:
(i) in material,
(ii) in workmanship, including, without limitation, processes of manufacture,
(iii) in design (including, without limitation, selection of materials) having regard to the state of the art at the date of such design, and
(iv) arising from failure to conform to the Specification, except as to those portions of the Specification that are expressly stated in the Specification
to be estimates or approximations or design aims.
11.1.2 **
11.1.3 Exceptions
The warranties set forth in Paragraph 11.1.1 will not apply to Buyer Furnished Equipment, Propulsion Systems, or to any component, accessory,
equipment or part purchased by the Buyer that is not a Seller Part, provided, however, that any defect inherent in the Seller's design of the installation,
considering the state of the art at the
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USA — Amended and Restated Airbus A320 Family Purchase Agreement
EXECUTION PRIVILEGED AND CONFIDENTIAL
**Confidential Treatment Requested.