Common use of Airworthiness Directives Clause in Contracts

Airworthiness Directives. Except as expressly provided below, Lessee agrees to comply with all Airworthiness Directives which become due during the Term. All Airworthiness Directives shall be accomplished in strict compliance with all issuing agency's specific instructions. Lessee shall comply with all Airworthiness Directives at its sole cost and expense up to a maximum of US$15,000 per any one Airworthiness Directive and up to a maximum of US$100,000 in the aggregate for any twelve-month period during the Term. If the Lessee's cost of complying with any Airworthiness Directive that must be accomplished during the Term exceeds the foregoing maximums, then Lessee may, by written notice to Lessor, elect not to pay any portion of the cost of complying with such Airworthiness Directive costing in excess of the foregoing maximums, in which event Lessor shall have the right to comply with the Airworthiness Directive at its own expense, or by written notice to the Lessee within 15 days following receipt of such notice from Lessee, may advise Lessee that Lessor shall not perform such Airworthiness Directive (the "Excepted AD"), in which case the Lease shall terminate, effective upon the earlier of the end of the Term or the final compliance date for the Excepted AD, whereupon the Lessee shall return the Aircraft to the Lessor in accordance with the provisions of Section 6 hereof, excepting only the Excepted AD and the C Check required by Section 6.5.1.

Airworthiness Directives. Except as expressly provided below, Lessee ------------------------ agrees to comply with all Airworthiness Directives which become due during the Term. All Airworthiness Directives shall be accomplished in strict compliance with all issuing agency's specific instructions. Lessee shall comply with all Airworthiness Directives at its sole cost and expense up to a maximum of US$15,000 25,000 per any one Airworthiness Directive. In the event that the cost of incorporating any terminating Airworthiness Directive (including parts, labor, and up materials, but excluding any profit to a maximum Lessee) exceeds US$25,000 per any one Airworthiness Directive, the amount of US$100,000 the excess to be borne by the Lessor shall be calculated in accordance with the aggregate following formula: 1 - (N-M) x (C-25,000) ----- T where "N" equals the total duration of the Term in months; "M" represents the month of the Term in which the modification is completed; "C" represents the total actual cost of labor, parts, and materials for any twelve-month period during the Termmodification; and "T" equals the actual useful life of the modification in months, not to extend beyond December 31, 1999. If the Lessee's cost of complying with any one Airworthiness Directive that must be accomplished during the Term exceeds the foregoing maximumsOne Hundred Thousand Dollars (US$100,000) in any individual case, then Lessee may, by written notice to Lessor, elect not to pay any portion of the cost of complying with such Airworthiness Directive costing in excess of the foregoing maximumsUS$100,000, in which event Lessor shall have the right to comply with the Airworthiness Directive at its own expense, or by written notice to the Lessee within 15 days following receipt of such notice from Lessee, may advise Lessee that Lessor shall not perform such Airworthiness Directive (the "Excepted AD"), in which case the Lease shall terminate, effective upon the earlier of the end of the Term or the final compliance date for the Excepted AD, whereupon the Lessee shall return the Aircraft to the Lessor in accordance with the provisions of Section 6 hereof, excepting only (i) the Excepted AD AD, and (ii) the C Check required by Section 6.5.1.

Airworthiness Directives. Except as expressly provided below, Lessee agrees to comply with all Airworthiness Directives which become due during the Term. All Airworthiness Directives shall be accomplished in strict compliance with all issuing agency's specific instructions. Lessee shall comply with all Airworthiness Directives at its sole cost and expense up to a maximum of US$15,000 25,000 per any one Airworthiness Directive, In the event that the cost of incorporating any terminating Airworthiness Directive (including parts, labor, and up materials, but excluding any profit to a maximum Lessee) exceeds US$25,000 per any one Airworthiness Directive, the amount of US$100,000 the excess to be borne by the Lessor shall be calculated in accordance with the aggregate following formula: 1 - ((N-M)/T) x (C-25,000) where "N" equals the total duration of the Term in months; "M" represents the month of the Term in which the modification is completed; "C" represents the total actual cost of labor, parts, and materials for any twelve-month period during the Termmodification; and "T" equals the actual useful life of the modification in months, not to extend beyond December 31,1999. If the Lessee's cost of complying with any one Airworthiness Directive that must be accomplished during the Term exceeds the foregoing maximumsOne Hundred Thousand Dollars (US$100,000) in any individual case, then Lessee may, by written notice to Lessor, elect not to pay any portion of the cost of complying with such Airworthiness Directive costing in excess of the foregoing maximumsUS$100,000, in which event Lessor shall have the right to comply with the Airworthiness Directive at its own expense, or by written notice to the Lessee within 15 days following receipt of such notice from Lessee, may advise Lessee that Lessor shall not perform such Airworthiness Directive (the "Excepted AD"), in which case the Lease shall terminate, effective upon the earlier of the end of the Term or the final compliance date for the Excepted AD, whereupon the Lessee shall return the Aircraft to the Lessor in accordance with the provisions of Section 6 hereof, excepting only (i) the Excepted AD AD, and (ii) the C Check required by Section 6.5.1.