Common use of Limitations of Warranty Clause in Contracts

Limitations of Warranty. 12.1.4.1 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 any Warranted Part which is defective (or to the supply of modification kits rectifying the defect), together with a credit to the Buyer’s account with the Seller of an amount equal to the mutually agreed direct labor costs expended in performing the removal and the reinstallation thereof on the Aircraft at the labor rate defined in Clause 12.1.7.5. The Seller may alternatively furnish to the Buyer’s account with the Seller a credit equal to the price at which the Buyer is entitled to purchase a replacement for the defective Warranted Part. 12.1.4.2 In the event of a defect covered by Clauses 12.1.1 (iii), 12.1.1 (iv) or 12.1.2 (ii) becoming apparent within the Warranty Period, the Seller shall also, if so requested by the Buyer in writing, correct such defect in any Aircraft which has not yet been delivered to the Buyer, provided, however, (i) that the Seller shall not be responsible, nor be deemed to be in default on account of any delay in Delivery of any Aircraft or otherwise in respect of the performance of this Agreement, due to the Seller’s undertaking to make such correction and provided further (ii) that, rather than accept a delay in the Delivery of any such Aircraft, 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.

Limitations of Warranty. 12.1.4.1 The BuyerWarranty Beneficiary’s remedy and the Seller’s obligation and liability under Clauses 12.1.1 and 12.1.2 are limited toare, at the Seller’s expense and optionexpense, (a) the repair, replacement or correction of any Warranted Part which that is defective (or to the supply of modification kits rectifying the defect), together with ) (a credit “Correction”) or (b) the reimbursement of the cost to the Buyer’s account with the Seller of an amount equal to the mutually agreed direct labor costs expended in performing the removal and the reinstallation thereof on the Aircraft at the labor rate defined in Clause 12.1.7.5. The Seller may alternatively furnish to the Buyer’s account with the Seller a credit equal to the price at which the Buyer is entitled to purchase Warranty Beneficiary for a replacement for the defective Warranted PartPart and any other materials installed, incorporated, consumed or expended by the Warranty Beneficiary in performing the Correction. [*CTR*]. 12.1.4.2 In the event of a defect covered by Clauses 12.1.1 (iii), 12.1.1 (iv) or and 12.1.2 (ii) becoming apparent within the Warranty Period, the Seller shall will also, if so requested by the Buyer in writing, correct such defect in any Aircraft which that has not yet been delivered to the Buyer, provided, however, (i) that the Seller shall will not be responsible, nor be deemed to be in default on account of any reasonable delay in Delivery of any Aircraft or otherwise in respect of the performance of this Agreement, due to the Seller’s undertaking to make such correction and provided further (ii) that, rather than accept a delay in the Delivery of any such Aircraft, 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.

Limitations of Warranty. 12.1.4.1 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 (to include, in the case of software, supply of a comparable product with equivalent function) of any defective Warranted Part which is defective (Part. The Seller may elect to effect such repair, replacement or to the supply of correction by supplying modification kits rectifying designed to rectify the defect), together with defect or by furnishing a credit to the Buyer’s account with Buyer for the Seller future purchase of an amount equal to the mutually agreed direct labor costs expended in performing the removal goods and the reinstallation thereof on the Aircraft at the labor rate defined in Clause 12.1.7.5. The Seller may alternatively furnish to the Buyer’s account with the Seller a credit services (not including Aircraft) equal to the price at which the Buyer is then entitled to purchase acquire a replacement for the defective Warranted Part. Unless otherwise agreed, any replacement part shall have no fewer cycles, hours or less calendar time remaining or be of a lesser modification status than the replaced Warranted Part would have in the absence of the relevant defect. 12.1.4.2 In If the event of Seller corrects a defect covered by Clauses 12.1.1 (iii), 12.1.1 (ivClause 12.1.1(iii) or 12.1.2 (ii) becoming that becomes apparent within the Warranty Period, on the Buyer’s written request the Seller shall also, if so requested by the Buyer in writing, will correct any such defect of the same type in any Aircraft which that has not yet already been delivered to the Buyer, provided, however, (i) that the . The Seller shall will not be responsibleresponsible for, nor be deemed to be in default on account of any delay in Delivery of any Aircraft or otherwise otherwise, in respect of the performance of this Agreement, due to the Seller’s undertaking to make such correction and provided further (ii) that, rather than accept a delay in the Delivery of any such Aircraftcorrection. Alternatively, 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. The parties shall use all reasonable efforts to minimize any delays.

Limitations of Warranty. 12.1.4.1 The Buyer’s remedy and the Seller’s obligation and liability under Clauses 12.1.1 and 12.1.2 are limited to6.1.4.1 THE BUYER'S REMEDY AND THE SELLER'S OBLIGATION AND LIABILITY UNDER SUB-CONDITIONS 6.1.1 AND 6.1.2 HEREINABOVE ARE LIMITED TO, at the Seller’s expense and optionAT THE SELLER'S EXPENSE AND OPTION, the repairTHE REPAIR, replacement or correction of any Warranted Part which is defective REPLACEMENT OR CORRECTION OF ANY DEFECTIVE WARRANTED PART. ALTERNATIVELY, THE SELLER MAY, WITH THE BUYER'S APPROVAL, FURNISH A CREDIT TO THE BUYER FOR THE FUTURE PURCHASE OF GOODS AND SERVICES (or to the supply of modification kits rectifying the defect), together with a credit to the Buyer’s account with the Seller of an amount equal to the mutually agreed direct labor costs expended in performing the removal and the reinstallation thereof on the Aircraft at the labor rate defined in Clause 12.1.7.5. The Seller may alternatively furnish to the Buyer’s account with the Seller a credit equal to the price at which the Buyer is entitled to purchase a replacement for the defective Warranted PartNOT INCLUDING AIRCRAFT) EQUAL TO THE PRICE AT WHICH THE BUYER IS THEN ENTITLED TO ACQUIRE A REPLACEMENT FOR THE DEFECTIVE WARRANTED PART. 12.1.4.2 6.1.4.2 In the event of that the Seller corrects a defect covered by Clauses 12.1.1 Sub-condition 6.1.1 (iii), 12.1.1 (iv) or 12.1.2 (ii) becoming that becomes apparent within the Warranty Periodapplicable period set forth in Sub-condition 6.1.3 and the Seller is obligated to correct such defect, the Seller shall will also, if so requested by the Buyer in writing, correct such defect in any Aircraft which has not yet been delivered to the Buyer[ * ] However, provided, however, (i) that the Seller shall will not be responsible, nor be deemed to be in default default, on account of any delay in Delivery of any Aircraft under the Agreement or otherwise otherwise, in respect of the performance of this Letter Agreement, due to the Seller’s 's undertaking to make such correction and provided further (ii) thatand, rather than accept a delay in the Delivery of any such Aircraft, the Buyer and the Seller may agree to deliver 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 the Seller will offer a Warranty Claim pre-approved warranty remedy at Delivery. 6.1.4.3 [ * ] * Blank spaces contained confidential information which has been filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as though the defect had become apparent immediately after Delivery of such Aircraftamended.

Limitations of Warranty. 12.1.4.1 (i) The Buyer’s Buyers' remedy and the Seller’s 's obligation and liability under Clauses 12.1.1 and 12.1.2 are limited to, at the Seller’s 's expense and option, the repair, replacement or correction of any Warranted Part which is defective (of, or to the supply of modification kits rectifying the defect)defect to any defective Warranted Part, together with [AS AGREED BY THE PARTIES] However, the Seller may furnish a credit to the Buyer’s account with Buyers, jointly, for the Seller future purchase of an amount equal to the mutually agreed direct labor costs expended in performing the removal goods and the reinstallation thereof on the Aircraft at the labor rate defined in Clause 12.1.7.5. The Seller may alternatively furnish to the Buyer’s account with the Seller a credit services (not including Aircraft) equal to the price at which the Buyer is Buyers are then entitled to purchase acquire a replacement for the defective Warranted Part. 12.1.4.2 In (ii) If the event of Seller corrects a defect covered by Clauses 12.1.1 (iii), 12.1.1 (ivClause 12.1.1(iii) or 12.1.2 (ii) becoming that becomes apparent within the Warranty Period, on the written request of the Buyers the Seller shall also, if so requested by the Buyer in writing, will correct any such defect in any Aircraft which that has not yet already been delivered to the Buyer, provided, however, (i) that the Buyers. The Seller shall will not be responsibleresponsible for, nor be deemed to be in default on account of of, any delay in Delivery of any Aircraft or otherwise otherwise, in respect of the performance of this Agreement, due to the Seller’s 's undertaking to make such correction and provided further (ii) that, rather than accept a delay in correction. In the Delivery of any such Aircraftalternative, the Buyer Buyers and the Seller may agree to deliver such Aircraft with subsequent correction of the defect by the a Buyer at the Seller’s 's expense, or the Buyer Buyers may elect to accept Delivery and thereafter file a Warranty Claim as though the defect had become apparent immediately after Delivery of such Aircraft.

Limitations of Warranty. 12.1.4.1 The Buyer’s 's remedy and the Seller’s 's obligation and liability under Clauses 12.1.1 and 12.1.2 hereinabove are limited to, at the Seller’s 's expense and option, the repair, replacement or correction of any Warranted Part which is defective (of, or to the supply of modification kits rectifying the defect)defect to any defective Warranted Part. However, together with the Seller may furnish a credit to the Buyer’s account with Buyer for the Seller future purchase of an amount equal to the mutually agreed direct labor costs expended in performing the removal goods and the reinstallation thereof on the Aircraft at the labor rate defined in Clause 12.1.7.5. The Seller may alternatively furnish to the Buyer’s account with the Seller a credit services (not including Aircraft) equal to the price at which the Buyer is then entitled to purchase acquire a replacement for the defective Warranted Part.. Unless otherwise agreed, any replacement part shall have no fewer cycles, hours, or less calendar time remaining or be of a lesser modification status than the replaced Warranted Part would have had in the absence of the relevant defect. Spirit Airlines - A320 FAMILY - PA 32 12.1.4.2 In If the event of Seller corrects a defect covered by Clauses 12.1.1 (iii), 12.1.1 (ivClause 12.1.1(iii) or 12.1.2 (ii) becoming that becomes apparent within the Warranty PeriodPeriod set forth in Clause 12.1.3, on the Buyer's written request the Seller shall also, if so requested by the Buyer in writing, will correct any such defect in any Aircraft which that has not yet already been delivered to the Buyer, provided, however, (i) that the . The Seller shall will not be responsible, responsible nor be deemed to be in default on account of any reasonable delay in Delivery of any Aircraft or otherwise otherwise, in respect of the performance of this Agreement, due to the Seller’s 's undertaking to make such correction and provided further (ii) thatand, rather than accept a delay in the Delivery of any such Aircraft, the Buyer and the Seller may agree to deliver such Aircraft with subsequent correction of the defect by the Buyer at the Seller’s '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. The parties shall use all reasonable efforts to minimize any delays.

Limitations of Warranty. 12.1.4.1 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 (to include, in the case of software, supply of a comparable product with equivalent function) of any defective Warranted Part which is defective (Part. The Seller may elect to effect such repair, replacement or to the supply of correction by supplying modification kits rectifying designed to rectify the defect), together with defect or by furnishing a credit to the Buyer’s account with Buyer for the Seller future purchase of an amount equal to the mutually agreed direct labor costs expended in performing the removal goods and the reinstallation thereof on the Aircraft at the labor rate defined in Clause 12.1.7.5. The Seller may alternatively furnish to the Buyer’s account with the Seller a credit services (not including Aircraft) equal to the price at which the Buyer is then entitled to purchase acquire a replacement for the defective Warranted Part. 12.1.4.2 In If the event of Seller corrects a defect covered by Clauses 12.1.1 (iii), 12.1.1 (ivClause 12.1.1(iii) or 12.1.2 (ii) becoming that becomes apparent within the Warranty Period, on the Buyer’s written request the Seller shall also, if so requested by the Buyer in writing, will correct any such defect of the same type in any Aircraft which that has not yet already been delivered to the Buyer, provided, however, (i) that the . The Seller shall will not be responsibleresponsible for, nor be deemed to be in default on account of any delay in Delivery of any Aircraft or otherwise otherwise, in respect of the performance of this Agreement, due to the Seller’s undertaking to make such correction and provided further (ii) that, rather than accept a delay in the Delivery of any such Aircraftcorrection. Alternatively, 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.

Limitations of Warranty. 12.1.4.1 The Buyer’s 's remedy and the Seller’s 's obligation and liability under Clauses Sub-clauses 12.1.1 and 12.1.2 hereinabove are limited to, at the Seller’s 's expense and option, the repair, replacement or correction of any Warranted Part which is defective (of, or to the supply of modification kits rectifying the defect)defect to any defective Warranted Part. Alternatively, together with the Seller may, at its option, furnish a credit to the Buyer’s account with Buyer for the Seller future purchase of an amount equal to the mutually agreed direct labor costs expended in performing the removal goods and the reinstallation thereof on the Aircraft at the labor rate defined in Clause 12.1.7.5. The Seller may alternatively furnish to the Buyer’s account with the Seller a credit services (not including Aircraft) equal to the price at which the Buyer is then entitled to purchase acquire a replacement for the defective Warranted Part. * Blank spaces contained confidential information which has been filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended. 12.1.4.2 In the event of that the Seller corrects a defect covered by Clauses 12.1.1 (iii), 12.1.1 (ivSub-clause 12.1.1(iii) or 12.1.2 (ii) becoming that becomes apparent within the Warranty Periodapplicable period set forth in Sub-clause 12.1.3 and the Seller is obligated to correct such defect, the Seller shall will also, if so requested by the Buyer in writing, correct make such defect correction in any Aircraft which that has not yet already been delivered to the Buyer. However, provided, however, (i) that the Seller shall will not be responsible, responsible nor be deemed to be in default on account of any delay in Delivery of any Aircraft or otherwise otherwise, in respect of the performance of this Agreement, due to the Seller’s 's undertaking to make such correction and provided further (ii) thatand, rather than accept a delay in the Delivery of any such Aircraft, the Buyer and the Seller may agree to deliver such Aircraft with subsequent correction of the defect by the Buyer at the Seller’s '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. 12.1.4.3 In addition to the remedies set forth in Sub-clauses 12.1.4.1 and 12.1.4.2, the Seller will reimburse the direct labor costs spent by the Buyer in performing the first of the following: (i) inspections of the Aircraft to determine whether a defect exists in any Warranted Part within the Warranty Period; or (ii) inspections of the Aircraft continued until the corrective technical solution removing the need for the inspection is provided by the Seller. The above commitment is subject to the following conditions: (i) such inspections are recommended by a Seller Service Bulletin to be performed within the Warranty Period; (ii) the inspection is performed outside of a scheduled maintenance check as recommended by the Seller's Maintenance Planning Document; (iii) the Buyer will not be reimbursed for any inspections performed as an alternative to accomplishing corrective action when such corrective action is available to the Buyer and such corrective action could have reasonably been accomplished by the Buyer at the time such inspections are performed, (iv) the labor rate for the reimbursements will be the labor rate defined in Sub-clause 12.1.7, and (v) the hours used to determine such reimbursement shall not exceed the Seller's estimate of the hours required by the Buyer for such inspections.

Limitations of Warranty. 12.1.4.1 (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 any Warranted Part which is defective (of, or to the supply of modification kits rectifying the defect)defect to any defective Warranted Part, together with as mutually agreed between and satisfactory to the Buyer and the Seller, ** However, the Seller may furnish a credit to the Buyer’s account with Buyer for the Seller future purchase of an amount equal to the mutually agreed direct labor costs expended in performing the removal Goods and the reinstallation thereof on the Aircraft at the labor rate defined in Clause 12.1.7.5. The Seller may alternatively furnish to the Buyer’s account with the Seller a credit Services (not including Aircraft) equal to the price at which the Buyer is then entitled to purchase acquire a replacement for the defective Warranted Part. 12.1.4.2 In (ii) If the event of Seller corrects a defect covered by Clauses 12.1.1 (iii), 12.1.1 (ivClause 12.1.1(iii) or 12.1.2 (ii) becoming that becomes apparent within the Warranty Period, on the written request of the Buyer the Seller shall also, if so requested by the Buyer in writing, will correct any such defect in any Aircraft which that has not yet already been delivered to the Buyer, provided, however, (i) that the . The Seller shall will not be responsibleresponsible for, nor be deemed to be in default on account of of, any delay in Delivery of any Aircraft or otherwise otherwise, in respect of the performance of this Agreement, due to the Seller’s undertaking to make such correction and provided further (ii) that, rather than accept a delay in correction. In the Delivery of any such Aircraftalternative, 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.

Limitations of Warranty. 12.1.4.1 The Buyer’s 's remedy and the Seller’s 's obligation and liability under Clauses 12.1.1 and 12.1.2 are limited to, at the Seller’s 's expense and option, the repair, replacement or correction (to include, in the case of software, supply of a comparable product with equivalent function) of any defective Warranted Part which is defective (Part. The Seller may elect to effect such repair, replacement or to the supply of correction by supplying modification kits rectifying designed to rectify the defect), together with defect or by furnishing a credit to the Buyer’s account with Buyer for the Seller future purchase of an amount equal to the mutually agreed direct labor costs expended in performing the removal goods and the reinstallation thereof on the Aircraft at the labor rate defined in Clause 12.1.7.5. The Seller may alternatively furnish to the Buyer’s account with the Seller a credit services (not including Aircraft) or redeemable for cash equal to the price at which the Buyer is then entitled to purchase acquire a replacement for the defective Warranted Part. 12.1.4.2 In If the event of Seller corrects a defect covered by Clauses 12.1.1 (iii), 12.1.1 (ivClause 12.1.1(iii) or 12.1.2 (ii) becoming that becomes apparent within the Warranty Period, on the Buyer's written request the Seller shall also, if so requested by the Buyer in writing, will correct any such defect of the same type in any Aircraft which that has not yet already been delivered to the Buyer, provided, however, (i) that the . The Seller shall will not be responsibleresponsible for, nor be deemed to be in default on account of any delay in Delivery of any Aircraft or otherwise otherwise, in respect of the performance of this Agreement, due to the Seller’s 's undertaking to make such correction and provided further (ii) that, rather than accept a delay in the Delivery of any such Aircraftcorrection. Alternatively, the Buyer and the Seller may agree to deliver such Aircraft with subsequent correction of the defect by the Buyer at the Seller’s '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.

Limitations of Warranty. 12.1.4.1 The Buyer’s remedy and the Seller’s obligation and liability under Clauses 12.1.1 and 12.1.2 hereinabove are limited to, as mutually agreed between the Parties, and at the Seller’s expense and optionexpense, the repair, replacement or correction of any Warranted Part which is defective (of, or to the supply of modification kits rectifying the defect)defect to, together with any defective Warranted Part. Upon the [***] the Seller may furnish a credit to the Buyer’s account with Buyer for the Seller future purchase of an amount equal to the mutually agreed direct labor costs expended in performing the removal goods and the reinstallation thereof on the Aircraft at the labor rate defined in Clause 12.1.7.5. The Seller may alternatively furnish to the Buyer’s account with the Seller a credit services (not including Aircraft) equal to the price at which the Buyer is then entitled to purchase acquire a replacement for the defective Warranted Part. 12.1.4.2 In If the event of Seller corrects a defect covered by Clauses 12.1.1 (iii), 12.1.1 (ivClause 12.1.1(iii) or 12.1.2 (ii) becoming that becomes apparent within the Aircraft Warranty PeriodPeriod set forth in Clause 12.1.3, on the Buyer’s written request the Seller shall also, if so requested by the Buyer in writing, will correct any such defect in any Aircraft which that has not yet already been delivered to the Buyer, provided, however, (i) that the Seller shall not be responsible, nor be deemed to be in default on account of any delay in Delivery of any Aircraft or otherwise in respect of the performance of this Agreement, due to the Seller’s undertaking to make such correction and provided further (ii) that. However, rather than accept a delay in the Delivery of any such Aircraft, 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.

Limitations of Warranty. 12.1.4.1 (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 any Warranted Part which is defective ** (or to the supply of modification kits rectifying the defect), together with a credit to the Buyer’s account with ii) If the Seller of an amount equal to the mutually agreed direct labor costs expended in performing the removal and the reinstallation thereof on the Aircraft at the labor rate defined in Clause 12.1.7.5. The Seller may alternatively furnish to the Buyer’s account with the Seller a credit equal to the price at which the Buyer is entitled to purchase a replacement for the defective Warranted Part. 12.1.4.2 In the event of corrects a defect covered by Clauses 12.1.1 (iii), 12.1.1 (ivClause 12.1.1(iii) or 12.1.2 (ii) becoming that becomes apparent within the Warranty Period, on the written request of the Buyer the Seller shall also, if so requested by the Buyer in writing, will correct any such defect in any Aircraft which that has not yet already been delivered to the Buyer. Subject to the provisions of Clause 8 to the Agreement, provided, however, (i) that the Seller shall will not be responsibleresponsible for, nor be deemed to be in default on account of of, any delay in Delivery of any Aircraft or otherwise otherwise, in respect of the performance of this Agreement, due to the Seller’s undertaking to make such correction and provided further (ii) that, rather than accept a delay in correction. In the Delivery of any such Aircraftalternative, 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) If a defect that would otherwise be covered under this Clause 12 becomes apparent and the Buyer has complied with the requirements of Clause 12, and the Seller has no then available correction for the defect and the Seller believes the defect can reasonably be expected to affect all or a substantial portion of the Aircraft, then the Buyer will be deemed to have given notice of such defect for all Aircraft that thereafter experience such defect.

Limitations of Warranty. 12.1.4.1 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 any Warranted Part which is defective (or to the supply of modification kits rectifying the defect), together with a credit to the Buyer’s account with the Seller of an amount equal to the mutually agreed direct labor costs expended in performing the removal and the reinstallation thereof on the Aircraft at the labor rate defined in Clause 12.1.7.5. The Seller may alternatively furnish to the Buyer’s account with the Seller a credit for the future purchase of goods and services (not including Aircraft or aircraft) equal to the price at which the Buyer is entitled to purchase a replacement for the defective Warranted Part. 12.1.4.2 In the event of a defect covered by Clauses 12.1.1 (iii), 12.1.1 (iv) or and 12.1.2 (ii) becoming apparent within the Warranty Period, the Seller shall will also, if so requested by the Buyer in writing, correct such defect in any Aircraft which has not yet been delivered to the Buyer, provided, however, (i) that the Seller shall will not be responsible, nor be deemed to be in default on account of any delay in Delivery of any Aircraft or otherwise in respect of the performance of this Agreement, due to the Seller’s undertaking to make such correction and provided further (ii) that, rather than accept a delay in the Delivery of any such Aircraft, 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.