Common use of Deductibles; Self-insurance Clause in Contracts

Deductibles; Self-insurance. The Owner may self-insure by way of deductible, premium adjustment or franchise provisions or otherwise (including, with respect to insurance maintained pursuant to Section B, insuring for a maximum amount which is less than the Debt Balance) in the insurance covering the risks required to be insured against pursuant to Section 4.06 and this Annex B under a program applicable to all aircraft in the Owner’s fleet, but in no case shall the aggregate amount of self-insurance in regard to Section 11 and this Annex B exceed during any policy year, with respect to all of the aircraft in the Owner’s fleet (including, without limitation, the Aircraft), the lesser of (a) 50% of the largest replacement value of any single aircraft in the Owner’s fleet and (b) 1-1/2% of the average aggregate insurable value (during the preceding policy year) of all aircraft (including, without limitation, the Aircraft) on which the Owner carries insurance, unless an insurance broker of national standing shall certify that the standard among all other major U.S. airlines is a higher level of self-insurance, in which case the Owner may self-insure to such higher level. In addition, the Owner (and any Permitted Lessee) may self-insure to the extent of any applicable deductible per aircraft that does not exceed industry standards for major U.S. airlines. EXHIBIT A TO TRUST INDENTURE AND SECURITY AGREEMENT TRUST INDENTURE AND SECURITY AGREEMENT SUPPLEMENT This TRUST INDENTURE AND SECURITY AGREEMENT SUPPLEMENT NO. , dated [ , ] (herein called this “Trust Indenture Supplement”) of US AIRWAYS, INC., as Owner (the “Owner”).

Deductibles; Self-insurance. The Owner may self-insure by way of deductible, premium adjustment or franchise provisions or otherwise (including, with respect to insurance maintained pursuant to Section B, insuring for a maximum amount which is less than the Debt Balance) in the insurance covering the risks required to be insured against pursuant to Section 4.06 and this Annex B under a program applicable to all aircraft in the Owner’s fleet, but in no case shall the aggregate amount of self-insurance in regard to Section 11 and this Annex B exceed during any policy year, with respect to all of the aircraft in the Owner’s fleet (including, without limitation, the Aircraft), the lesser of (a) 50% of the largest replacement value of any single aircraft in the Owner’s fleet and (b) 1-1/2% of the average aggregate insurable value (during the preceding policy year) of all aircraft (including, without limitation, the Aircraft) on which the Owner carries insurance, unless an insurance broker of national standing shall certify that the standard among all other major U.S. airlines is a higher level of self-insurance, in which case the Owner may self-insure to such higher level. In addition, the Owner (and any Permitted Lessee) may self-insure to the extent of any applicable deductible per aircraft that does not exceed industry standards for major U.S. airlines. BACK EXHIBIT A TO TRUST INDENTURE AND SECURITY AGREEMENT MORTGAGE TRUST INDENTURE AND SECURITY AGREEMENT MORTGAGE SUPPLEMENT This TRUST INDENTURE AND SECURITY AGREEMENT MORTGAGE SUPPLEMENT NO. __, dated [ [______________ ___, ____] (herein called this “Trust Indenture Supplement”) of US AIRWAYSCONTINENTAL AIRLINES, INC., as Owner (the “Owner”).

Deductibles; Self-insurance. The Owner (or Permitted Lessee) may self-insure by way of deductible, premium adjustment or franchise provisions or otherwise (including, with respect to insurance maintained pursuant to Section B, insuring for a maximum amount which is less than the Debt Balanceapplicable Minimum Insurance Amount) in the insurance covering the risks required to be insured against pursuant to Section 4.06 2.05 of the Agreement and this Annex B A under a program applicable to all aircraft (including engines) in the Owner’s (or Permitted Lessee’s) fleet, but in no case shall the aggregate amount of self-insurance in regard to Section 11 2.05 of the Agreement and this Annex B A exceed during any policy year, with respect to all of the aircraft (including engines) in the Owner’s (or Permitted Lessee’s) fleet (including, without limitation, the AircraftSpare Engines), the lesser of (a) 50100% of the largest replacement value of any single aircraft (including engines) in the Owner’s fleet and (b) 1-1/2% of the average aggregate insurable value (during the preceding policy year) of all aircraft aircraft, airframes and engines (including, without limitation, the AircraftSpare Engines) (including, without limitation, the Spare Engines) on which the Owner carries insurance, unless an insurance broker of national standing shall certify that the standard among all other major U.S. airlines is a higher level of self-insurance, in which case the Owner may self-insure to such higher level. In addition, the Owner (and any Permitted Lessee) may self-insure to the extent of any applicable deductible per aircraft aircraft, airframe or engine that does not exceed industry standards for major U.S. airlines. EXHIBIT A TO TRUST INDENTURE AND SECURITY AGREEMENT TRUST INDENTURE AND SECURITY AGREEMENT SUPPLEMENT This TRUST INDENTURE AND SECURITY AGREEMENT SUPPLEMENT NO. , dated [ , ] (herein called this “Trust Indenture Supplement”) of US AIRWAYS, INC., as Owner (the “Owner”).

Deductibles; Self-insurance. The Owner may self-insure by way of deductible, premium adjustment or franchise provisions or otherwise (including, with respect to insurance maintained pursuant to Section B, insuring for a maximum amount which is less than the Debt Balance) in the insurance covering the risks required to be insured against pursuant to Section 4.06 and this Annex B under a program applicable to all aircraft in the Owner’s fleet, but in no case shall the aggregate amount of self-insurance in regard to Section 11 and this Annex B exceed during any policy year, with respect to all of the aircraft in the Owner’s fleet (including, without limitation, the Aircraft), the lesser of (a) 50% of the largest replacement value of any single aircraft in the Owner’s fleet and (b) 1-1/2% of the average aggregate insurable value (during the preceding policy year) of all aircraft (including, without limitation, the Aircraft) on which the Owner carries insurance, unless an insurance broker of national standing shall certify that the standard among all other major U.S. airlines is a higher level of self-insurance, in which case the Owner may self-insure to such higher level. In addition, the Owner (and any Permitted Lessee) may self-insure to the extent of any applicable deductible per aircraft that does not exceed industry standards for major U.S. airlines. EXHIBIT A TO TRUST INDENTURE AND SECURITY AGREEMENT TRUST INDENTURE AND SECURITY AGREEMENT SUPPLEMENT This TRUST INDENTURE AND SECURITY AGREEMENT SUPPLEMENT NO. __, dated [ [______________ ___, ____] (herein called this “Trust Indenture Supplement”) of US AIRWAYS, INC., as Owner (the “Owner”).

Deductibles; Self-insurance. The Owner (or Permitted Lessee) may self-insure by way of deductible, premium adjustment or franchise provisions or otherwise (including, with respect to insurance maintained pursuant to Section B, insuring for a maximum amount which is less than the Debt Balance) in the insurance covering the risks required to be insured against pursuant to Section 4.06 and this Annex B under a program applicable to all aircraft in the Owner’s (or Permitted Lessee’s) fleet, but in no case shall the aggregate amount of self-insurance in regard to Section 11 and this Annex B exceed during any policy year, with respect to all of the aircraft in the Owner’s (or Permitted Lessee’s) fleet (including, without limitation, the Aircraft), the lesser of (a) 50100% of the largest replacement value of any single aircraft in the Owner’s fleet and (b) 1-1/2% of the average aggregate insurable value (during the preceding policy year) of all aircraft (including, without limitation, the Aircraft) on which the Owner carries insurance, unless an insurance broker of national standing shall certify that the standard among all other major U.S. airlines is a higher level of self-insurance, in which case the Owner may self-insure to such higher level. In addition, the Owner (and any Permitted Lessee) may self-insure to the extent of any applicable deductible per aircraft that does not exceed industry standards for major U.S. airlines. EXHIBIT A TO TRUST INDENTURE AND SECURITY AGREEMENT MORTGAGE TRUST INDENTURE AND SECURITY AGREEMENT MORTGAGE SUPPLEMENT This TRUST INDENTURE AND SECURITY AGREEMENT MORTGAGE SUPPLEMENT NO. , dated [ , ] (herein called this “Trust Indenture Supplement”) of US AIRWAYSUNITED AIRLINES, INC., as Owner (the “Owner”).

Deductibles; Self-insurance. The Owner may self-insure by way of deductible, premium adjustment or franchise provisions or otherwise (including, with respect to insurance maintained pursuant to Section B, insuring for a maximum amount which is less than the Debt Balance) in the insurance covering the risks required to be insured against pursuant to Section 4.06 and this Annex B under a program applicable to all aircraft in the Owner’s fleet, but in no case shall the aggregate amount of self-insurance in regard to Section 11 and this Annex B exceed during any policy year, with respect to all of the aircraft in the Owner’s fleet (including, without limitation, the Aircraft), the lesser of (a) 50100% of the largest replacement value of any single aircraft in the Owner’s fleet and (b) 1-1/2% of the average aggregate insurable value (during the preceding policy year) of all aircraft (including, without limitation, the Aircraft) on which the Owner carries insurance, unless an insurance broker of national standing shall certify that the standard among all other major U.S. airlines is a higher level of self-insurance, in which case the Owner may self-insure to such higher TRUST INDENTURE 12-2 BACK level. In addition, the Owner (and any Permitted Lessee) may self-insure to the extent of any applicable deductible per aircraft that does not exceed industry standards for major U.S. airlines. TRUST INDENTURE 12-2 BACK EXHIBIT A TO TRUST INDENTURE AND SECURITY AGREEMENT MORTGAGE TRUST INDENTURE AND SECURITY AGREEMENT MORTGAGE SUPPLEMENT This TRUST INDENTURE AND SECURITY AGREEMENT MORTGAGE SUPPLEMENT NO. __, dated [ [______________ ___, ____] (herein called this “Trust Indenture Supplement”) of US AIRWAYSCONTINENTAL AIRLINES, INC., as Owner (the “Owner”).

Deductibles; Self-insurance. The Owner may self-insure by way of deductible, premium adjustment or franchise provisions or otherwise (including, with respect to insurance maintained pursuant to Section B, insuring for a maximum amount which is less than the Debt Balance) in the insurance covering the risks required to be insured against pursuant to Section 4.06 and this Annex B under a program applicable to all aircraft in the Owner’s fleet, but in no case shall the aggregate amount of self-insurance in regard to Section 11 and this Annex B exceed during any policy year, with respect to all of the aircraft in the Owner’s fleet (including, without limitation, the Aircraft), the lesser of (a) 50100% of the largest replacement value of any single aircraft in the Owner’s fleet and (b) 1-1/2% of the average aggregate insurable value (during the preceding policy year) of all aircraft (including, without limitation, the Aircraft) on which the Owner carries insurance, unless an insurance broker of national standing shall certify that the standard among all other major U.S. airlines is a higher level of self-insurance, in which case the Owner may self-insure to such higher TRUST INDENTURE 12-1 BACK level. In addition, the Owner (and any Permitted Lessee) may self-insure to the extent of any applicable deductible per aircraft that does not exceed industry standards for major U.S. airlines. TRUST INDENTURE 12-1 BACK EXHIBIT A TO TRUST INDENTURE AND SECURITY AGREEMENT MORTGAGE TRUST INDENTURE AND SECURITY AGREEMENT MORTGAGE SUPPLEMENT This TRUST INDENTURE AND SECURITY AGREEMENT MORTGAGE SUPPLEMENT NO. __, dated [ [______________ ___, ____] (herein called this “Trust Indenture Supplement”) of US AIRWAYSCONTINENTAL AIRLINES, INC., as Owner (the “Owner”).

Deductibles; Self-insurance. The Owner may self-insure by way of deductible, premium adjustment or franchise provisions or otherwise (including, with respect to insurance maintained pursuant to Section B, insuring for a maximum amount which is less than the Debt Balance) in the insurance covering the risks required to be insured against pursuant to Section 4.06 and this Annex B under a program applicable to all aircraft in the Owner’s fleet, but in no case shall the aggregate amount of self-insurance in regard to Section 11 and this Annex B exceed during any policy year, with respect to all of the aircraft in the Owner’s fleet (including, without limitation, the Aircraft), the lesser of (a) 50100% of the largest replacement value of any single aircraft in the Owner’s fleet and (b) 1-1/2% of the average aggregate insurable value (during the preceding policy year) of all aircraft (including, without limitation, the Aircraft) on which the Owner carries insurance, unless an insurance broker of national standing shall certify that the standard among all other major U.S. airlines is a higher level of self-insurance, in which case the Owner may self-insure to such higher TRUST INDENTURE 13-1 BACK level. In addition, the Owner (and any Permitted Lessee) may self-insure to the extent of any applicable deductible per aircraft that does not exceed industry standards for major U.S. airlines. TRUST INDENTURE 13-1 BACK EXHIBIT A TO TRUST INDENTURE AND SECURITY AGREEMENT MORTGAGE TRUST INDENTURE AND SECURITY AGREEMENT MORTGAGE SUPPLEMENT This TRUST INDENTURE AND SECURITY AGREEMENT MORTGAGE SUPPLEMENT NO. __, dated [ [______________ ___, ____] (herein called this “Trust Indenture Supplement”) of US AIRWAYSUNITED AIRLINES, INC., as Owner (the “Owner”).

Deductibles; Self-insurance. The Owner (or Permitted Lessee) may self-insure by way of deductible, premium adjustment or franchise provisions or otherwise (including, with respect to insurance maintained pursuant to Section B, insuring for a maximum amount which is less than the Debt Balance) in the insurance covering the risks required to be insured against pursuant to Section 4.06 and this Annex B under a program applicable to all aircraft in the Owner’s (or Permitted Lessee’s) fleet, but in no case shall the aggregate amount of self-insurance in regard to Section 11 and this Annex B exceed during TRUST INDENTURE 16-1 BACK any policy year, with respect to all of the aircraft in the Owner’s (or Permitted Lessee’s) fleet (including, without limitation, the Aircraft), the lesser of (a) 50100% of the largest replacement value of any single aircraft in the Owner’s fleet and (b) 1-1/2% of the average aggregate insurable value (during the preceding policy year) of all aircraft (including, without limitation, the Aircraft) on which the Owner carries insurance, unless an insurance broker of national standing shall certify that the standard among all other major U.S. airlines is a higher level of self-insurance, in which case the Owner may self-insure to such higher level. In addition, the Owner (and any Permitted Lessee) may self-insure to the extent of any applicable deductible per aircraft that does not exceed industry standards for major U.S. airlines. TRUST INDENTURE 16-1 BACK EXHIBIT A TO TRUST INDENTURE AND SECURITY AGREEMENT MORTGAGE TRUST INDENTURE AND SECURITY AGREEMENT MORTGAGE SUPPLEMENT This TRUST INDENTURE AND SECURITY AGREEMENT MORTGAGE SUPPLEMENT NO. __, dated [ [______________ ___, ____] (herein called this “Trust Indenture Supplement”) of US AIRWAYSUNITED AIRLINES, INC., as Owner (the “Owner”).

Deductibles; Self-insurance. The Owner may self-insure by way of deductible, premium adjustment or franchise provisions or otherwise (including, with respect to insurance maintained pursuant to Section B, insuring for a maximum amount which is less than the Debt Balance) in the insurance covering the risks required to be insured against pursuant to Section 4.06 and this Annex B under a program applicable to all aircraft in the Owner’s fleet, but in no case shall the aggregate amount of self-insurance in regard to Section 11 and this Annex B exceed during any policy year, with respect to all of the aircraft in the Owner’s fleet (including, without limitation, the Aircraft), the lesser of (a) 50100% of the largest replacement value of any single aircraft in the Owner’s fleet and (b) 1-1/2% of the average aggregate insurable value (during the preceding policy year) of all aircraft (including, without limitation, the Aircraft) on which the Owner carries insurance, unless an insurance broker of national standing shall certify that the standard among all other major U.S. airlines is a higher level of self-insurance, in which case the Owner may self-insure to such higher level. In addition, the Owner (and any Permitted Lessee) may self-insure to the extent of any applicable deductible per aircraft that does not exceed industry standards for major U.S. airlines. TRUST INDENTURE 2013-1 BACK EXHIBIT A TO TRUST INDENTURE AND SECURITY AGREEMENT MORTGAGE TRUST INDENTURE AND SECURITY AGREEMENT MORTGAGE SUPPLEMENT This TRUST INDENTURE AND SECURITY AGREEMENT MORTGAGE SUPPLEMENT NO. __, dated [ [______________, ____] (herein called this “Trust Indenture Supplement”) of US AIRWAYSHAWAIIAN AIRLINES, INC., as Owner (the “Owner”).

Deductibles; Self-insurance. The Owner may self-insure by way of deductible, premium adjustment or franchise provisions or otherwise (including, with respect to insurance maintained pursuant to Section B, insuring for a maximum amount which is less than the Debt Balance) in the insurance covering the risks required to be insured against pursuant to Section 4.06 and this Annex B under a program applicable to all aircraft in the Owner’s fleet, but in no case shall the aggregate amount of self-insurance in regard to Section 11 and this Annex B exceed during any policy year, with respect to all of the aircraft in the Owner’s fleet (including, without limitation, the Aircraft), the lesser of (a) 50% of the largest replacement value of any single aircraft in the Owner’s fleet and (b) 1-1/2% of the average aggregate insurable value (during the preceding policy year) of all aircraft (including, without limitation, the Aircraft) on which the Owner carries insurance, unless an insurance broker of national standing shall certify that the standard among all other major U.S. airlines is a higher level of self-insurance, in which case the Owner may self-insure to such higher level. In addition, the Owner (and any Permitted Lessee) may self-insure to the extent of any applicable deductible per aircraft that does not exceed industry standards for major U.S. airlines. TRUST INDENTURE 10-1 EXHIBIT A TO TRUST INDENTURE AND SECURITY AGREEMENT MORTGAGE TRUST INDENTURE AND SECURITY AGREEMENT MORTGAGE SUPPLEMENT This TRUST INDENTURE AND SECURITY AGREEMENT MORTGAGE SUPPLEMENT NO. __, dated [ [______________ ___, ____] (herein called this “Trust Indenture Supplement”) of US AIRWAYSCONTINENTAL AIRLINES, INC., as Owner (the “Owner”).