Original Equipment Engines

CFE Co. warrants to the Owner that each Engine sold for installation as original equipment on new aircraft will at time of delivery be free from defects in material, workmanship and title. Warranty shall run to the original purchaser, its successor, assigns and transferees when they are the Owner. This warranty shall expire seventy-eight (78) months from the date of shipment by CFE Co. or sixty (60) months from the date aircraft is put into Commercial Use or two thousand (2,000) Engine Operating Hours after Initial Operation, whichever first occurs.

New Spare Engines

CFE Co. warrants to the Owner that each new spare Engine sold for installation on aircraft will at time of delivery be free from defects in material, workmanship and title. Warranty shall run to the original purchaser, its successors, assigns and transferees when they are the Owner. This warranty shall expire seventy-eight (78) months from the date of shipment by CFE Co. or sixty (60) months from the date of Initial Operation of the new Engine or two thousand (2,000) Engine Operating Hours after Initial Operation, whichever first occurs.

New Spare Parts for Engines

CFE Co. warrants to the Owner that new spare Parts sold for installation in Engines will at time of delivery be free from defect in material, workmanship and title. Warranty, shall run to the original purchaser, its successors, assigns and transferees when they are the Owner. This warranty shall expire thirty-six (36) months from the date of shipment by CFE Co. or twelve (12) months from date of installation of the new spare part in an Engine or 1,000 Part Operating Hours, whichever first occurs.

Cyclic Life

CFE Co. provides to the Owner a warranty on those rotating Parts listed in applicable Service Bulletins or Maintenance Manuals which delineate cyclic life limits on major rotating Parts. The definition of "cycle" for Engines and Parts is contained in applicable Service Bulletins or Maintenance Manuals. Should those listed rotating Parts cyclic life limits be less that 10,000 cycles or subsequently have their cyclic life limits permanently reduced, then CFE Co. will grant an adjustment towards the purchase of a replacement Part. This adjustment will be pro rata at the time of permanent retirement, imposed by cyclic life limitations based on the Service Bulletin published Parts life compared to the 10,000 cycles. Repair work to restore fair wear and tear and modification to extend the service lives of the Parts to attain 10,000 cycles do not constitute grounds for claims.

As used herein, the following words and phrases have the following meanings:

1. "CFE Co." means the partnership formed by Honeywell Inc. acting through its Honeywell Propulsion Engines and CFE Core Corporation, a wholly owned subsidiary of General Electric Company.
2. "Commercial Use" means the operation of the Engines in aircraft licensed by the FAA or its equivalent for general civilian and commercial use excluding aerial dusting and spraying and any other type of flying requiring special authorization of dispensation by FAA or its equivalent.
3. "Engine" means a new CFE738 Engines delivered for Commercial Use.
4. "Engine Operating Hours" or "Part Operating Hours" means the total number of flight hours on an Engine or a Part.
5. "Failure" is the breakage of a Part, failure to function of a Part, or injury to a Part rendering it unserviceable, if such breakage, failure or injury has been determined to the reasonable satisfaction of the CFE Co. to be due to a defect in material or workmanship.
6. "Initial Operation" means the first running of the Engine after obtaining a certificate of airworthiness on the aircraft, or, in the case of a new space Engine, means the first running of the spare Engine after installation on the aircraft.
7. "Normal Wear and Tear" means the gradual and expected deterioration of an Engine or Part proportionate with the time spent in normal service, use or operation.
8. "Owner" means the owner of the aircraft registered with the Federal Aviation Agency (FAA)or its equivalent in which the Engine is installed at time of warranty claim, or the legal Owner of the Engine.
9. "Part means only those Parts that are manufactured or supplied by the CFE Co. for Commercial Use as components of a new Engine or sold by CFE Co. for Commercial Use as replacement Parts.

1. If an Engine or Part is returned to CFE Co. or a CFE Co. Authorized Service Center and found by CFE Co. in its sole discretion to have Failed as a result of a defect in material or workmanship covered by this warranty ("Non-Conforming Item," "Non-Conforming Engine" or "Non-Conforming Part" as applicable), CFE Co. shall at no cost to the Owner:
   
   

   a.	Repair or replace, at CFE Co.'s option, the Non-Conforming Item;
   b.	Provide at CFE Co. facility or reimburse CFE Co. Authorized Service Centers for providing with respect to a Non-Conforming Engine: (1) Trouble Shooting Labor (2) Engine Access Labor, and/or (3) Line Replaceable Unit and/or Engine Removal/Reinstallation Labor necessarily related to the Non-Conforming Item.

   
   The foregoing labor shall be provided or reimbursed in accordance with CFE Co.'s then current Warranty Labor Allowance Schedule and Warranty Procedures, copies of which are available for inspection at CFE Co. facilities and Authorized Service Centers.
   
   

   c.	Waive CFE Co.'s normal Engine rental charge under its standard Engine Rental Agreement while Unscheduled Heavy Maintenance (as defined in CFE Co. service literature) covered under this warranty is being accomplished, subject to availability of a rental engine.
   d.	Assume commercially reasonable round trip common carrier freight charges of the Non-Conforming Item from the location of the Owner's aircraft in the case of a Non-Conforming Engine,or from the location of the Owner's Engine in the case of a Non-Conforming Part, to the nearest CFE Co. Authorized Service Center.

   
   A part covered by the terms of this warranty shall be considered a Non-Conforming Item when damaged as a result of the Failure of a Non-Conforming Item covered by the terms of this warranty. Both of the Parts mentioned in the preceding sentence must be within the warranty period applicable to such Parts. Except as provided above, CFE Co. shall have no further obligation under this warranty.
   
   
2. The correction of any failure hereunder shall in no way extend the period of this warranty.
   
   
3. Any Engine or Part which is replaced shall become the property of CFE Co.
   
   
4. CFE Co. reserves the right to make changes in the design, and to add improvements without incurring any obligation to incorporate the same on other engines or parts sold by CFE Co.
   
   

The following conditions govern the application of this warranty.

1. Owner shall assure that records are maintained which will accurately reflect Engine and applicable Part Operating Hours and cycles and when maintenance was performed. At CFE Co.'s request, such records shall be provided to substantiate a warranty claim.
   
   
2. The provisions of this warranty will not apply to any Engine or Part if it has been determined to the reasonable satisfaction of CFE Co. that the Engine or any Part thereof has failed because it:
   
   

   a.	Has not been properly installed, stored or maintained; or
   b.	Has been operated contrary to applicable CFE Co. recommendations as contained in its Manuals, Bulletins, or other written instruction current at the time; or
   c.	Has been repaired or altered outside of CFE Co.'s facilities, or those of a CFE Co. Authorized Service Center, in such a way as to impair its safety of operation, reliability, or efficiency; or
   d.	Has been subject to misuse, neglect, negligence, operation in an abnormal environment, or accident; or
   e.	Has been subject to foreign object damage; or
   f.	Has not incorporated al Service Bulletins related to the cause of failure; or
   g.	Has been subjected to any other defect of cause not within the control of CFE Co.; or
   h.	Failed or suffered damage caused by any Part not purchased originally, directly or indirectly (e.g., authorized service center), from CFE Co.

   
   
3. Scheduled routine maintenance and inspection, including, but not limited to: disassembly; assembly; cleaning; inspection; replacement of consumable hardware such as gaskets, filters, packings, igniter plugs, nuts, bolts, etc.; minor repairs for cracks, nicks and dents; and all repair effort required as a result of Normal Wear and Tear are the responsibility of the Owner and specifically excluded from the Warranty.
   
   
4. Owner must submit a CFE Co. warranty form within thirty (30) days after discovery of the defect or failure, and return Engine or Part for repair or replacement within thirty (30) days after discovery.
5. All owners must provide a completed warranty registration form to CFE Co. within thirty (30) days of becoming an Owner. Warranty registration forms are in the Engine Log book or may be obtained from CFE Co. by writing to CFE at:

1. This warranty is for the benefit of the Owner and not for the benefit of any other person.
   
   
2. The liability of CFE Co. on any claim for loss, damage or liability arising out of, or connected with, this warranty program or the supply or servicing of Engines or Parts (including replacement Parts and Parts supplied under this program) or their use, whether on warranty, contract or tort (including negligence), shall in no case exceed the aggregate of the unit price of such Parts which give rise to the claim.
   
   
3. The foregoing shall constitute the sole remedy of the Buyer and Owner and the sole liability of CFE Co. , whether in contract, warranty, tort (including negligence of any degree or strict liability) or otherwise. THE WARRANTIES CONTAINED HEREIN ARE IN LIEU OF ALL OTHER WARRANTIES, WHETHER ORAL, WRITTEN, EXPRESS, IMPLIED OR STATUTORY. NO IMPLIED OR STATUTORY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE SHALL APPLY. In no event shall CFE Co. be liable for special, consequential, incidental, indirect or exemplary damages, including, without limitation, any loss of or damage to any aircraft in which any Engine or Part is installed.
   
   
4. NO AGREEMENT EXTENDING THIS WARRANTY SHALL BE BINDING UPON CFE CO. UNLESS IN WRITING AND SIGNED BY A DULY AUTHORIZED OFFICER OR REPRESENTATIVE.