Common use of ENGINE ESCALATION Clause in Contracts

ENGINE ESCALATION. The Aircraft Basic Price of each Aircraft set forth in Table 1 of the Purchase Agreement ***. The adjustment in Engine Price applicable to each Aircraft (Engine Price Adjustment) will be determined at the time of Aircraft delivery in accordance with the following formula: *** Where: *** *** *** where *** is the *** (as set forth in Table *** of this Purchase Agreement) *** *** where *** is the *** (as set forth in Table *** of this Purchase Agreement) *** *** per Aircraft (as set forth in Table *** of this Purchase Agreement). *** is a *** determined using the ***, calculated by establishing a *** arithmetic average value (expressed as a decimal and rounded to the nearest tenth) using the values for the *** the month of scheduled delivery of the applicable Aircraft. As the *** values are only released on a *** basis, the value released for the *** will be used for the ***; the value for *** used for ***; the value for *** used for ***; and the value for *** used for ***. *** is a *** determined using the ***, calculated as a *** arithmetic average of the released *** (expressed as a decimal and rounded to the nearest tenth) using the values for the *** the month of scheduled delivery of the applicable Aircraft. As an example, for an Aircraft scheduled to be delivered in the month of ***, the months *** of the preceding year will be utilized in determining the value of *** and ***. P.A. No. 3860 PA_Supp_Ex_EE1_GENX_ECI-MFG_CPI_2004 EE1 - GE - 1 Rev.: 10/19/04 Note: i. In determining the values of *** and ***, all calculations and resulting values will be expressed as a decimal rounded to the nearest ten-thousandth.

ENGINE ESCALATION. The Aircraft Basic Price of each Aircraft set forth in Table 1 of the Purchase Agreement ***. The adjustment in Engine Price applicable to each Aircraft (Engine Price Adjustment) will be determined at the time of Aircraft delivery in accordance with the following formula: *** Where: *** *** per Aircraft (as set forth in Table *** where of this Purchase Agreement). *** Where: *** is the *** (as set forth in Table *** of this Purchase Agreement) *** *** where *** is the *** (as set forth in Table *** of this Purchase Agreement) *** *** per Aircraft (as set forth in Table *** of this Purchase Agreement). ; *** is a *** determined using the ***, calculated by establishing a *** arithmetic average value (expressed as a decimal and rounded to the nearest tenth) using the values for the *** the month of scheduled delivery of the applicable Aircraft. As the *** values are only released on a *** basis, the value released for the *** will be used for the ***; the value released for the *** will be used for the ***; the value released for the *** will be used for the ***; and the value released for the *** will be used for the months of ***. *** *** Where: *** is the *** (as set forth in Table *** of this Purchase Agreement); and *** is a *** determined using the ***, calculated as a *** arithmetic average of the released *** (expressed as a decimal and rounded to the nearest tenth) using the values for the *** the month of scheduled delivery of the applicable Aircraft. As an example, for an Aircraft scheduled to be delivered in the month of ***, the months *** of the preceding year will be utilized in determining the value of *** *and ***. P.A. No. 3860 PA_Supp_Ex_EE1_GENX_ECIEE1-MFG_CPI_2004 EE1 RR - GE - 1 2 Rev.: 10/19/04 07/31/08 United Air Lines, Inc. ▇▇ ▇▇▇▇▇ 1000 Engines Note: i. In determining the values of *** and ***, all calculations and resulting values will be expressed as a decimal rounded to the nearest ten-thousandth.