US Airways 2007 Annual Report Download - page 919

(ii) any defect inherent in the Seller's design of the installation, considering the state of the art at the date of such design, that impairs the use or function
of such items will constitute a defect in design for the purposes of this Clause 12.1 and be covered by the warranty set forth in Clause 12.1.1(iii).
12.1.3 Warranty Periods
The warranties described in Clauses 12.1.1 and 12.1.2 will be limited to those defects that become apparent within ** after Delivery of the affected
Aircraft (the "Warranty Period").
12.1.4 Limitations of Warranty
(i) The Buyer's remedy and the Seller's obligation and liability under Clauses 12.1.1 and 12.1.2 are limited to, at the Seller's expense and option, the
repair, replacement or correction of, or the supply of modification kits rectifying the defect to any defective Warranted Part, as mutually agreed
between and satisfactory to the Buyer and the Seller, ** However, the Seller may furnish a credit to the Buyer for the future purchase of Goods and
Services (not including Aircraft) equal to the price at which the Buyer is then entitled to acquire a replacement for the defective Warranted Part.
(ii) If the Seller corrects a defect covered by Clause 12.1.1(iii) that becomes apparent within the Warranty Period, on the written request of the Buyer the
Seller will correct any such defect in any Aircraft that has not already been delivered to the Buyer. The Seller will not be responsible for, nor deemed
to be in default on account of, any delay in Delivery of any Aircraft or otherwise, in respect of performance of this Agreement, due to the Seller's
undertaking to make such correction. In the alternative, the Buyer and the Seller may agree to deliver such Aircraft with subsequent correction of the
defect by the Buyer at the Seller's expense, or the Buyer may elect to accept Delivery and thereafter file a Warranty Claim as though the defect had
become apparent immediately after Delivery of such Aircraft.
(iii) **
12.1.5 Cost of Inspection
(i) In addition to the remedies set forth in Clauses 12.1.4(i) and 12.1.4(ii), the Seller will reimburse the direct labor costs spent by the Buyer in
performing inspections of the Aircraft that are conducted:
(a) to determine whether a defect exists in any Warranted Part within the Warranty Period; or
** Confidential Treatment Requested.
USA — Amended and Restated Airbus A350 XWB Purchase Agreement PA – 41 of 109
EXECUTION PRIVILEGED AND CONFIDENTIAL