Common use of Credit Allowance Calculation Clause in Contracts

Credit Allowance Calculation. A credit of [*] U.S. Dollars will be granted by IAE for each Eligible Inflight Shutdown determined as calculated below to be in excess of the Guaranteed Rate during the Period of Guarantee. An annual calculation will be made no later than sixty (60) days after each yearly anniversary of the commencement of the Period of Guarantee provided that the necessary Inflight Shutdown records and Eligible Engine flight hour information have been reported to IAE. Each annual calculation will be made using data that will be cumulative from the start of the Period of Guarantee. An interim credit will be granted, if necessary, following the annual calculations for the second year and each subsequent year of the Period of Guarantee. If subsequent annual calculations show that on a cumulative basis, a previous interim credit (or portion thereof) was excessive, such excess amount shall be subject to repayment which will be effected by IAE issuing a debit against AAH’s account with IAE. Credits and debits will be applied to AAH’s account with IAE not later than thirty (30) days following a calculation for the second year and each subsequent year of the Period of Guarantee, as applicable. The Credit Allowance = (AI - GI) x [*] Where:

Credit Allowance Calculation. A credit of [*] U.S. Dollars will be granted by IAE for each Eligible Inflight Shutdown Engine Shop Visit determined as calculated below to be in excess of the Guaranteed Rate during the Period of Guarantee. An annual calculation will be made no later than sixty (60) days [*] after each yearly anniversary of the commencement of the Period of Guarantee provided that the necessary Inflight Shutdown Engine Shop Visit records and Eligible Engine flight hour information have been reported to IAE. Each annual calculation will be made using data that will be cumulative from the start of the Period of Guarantee. An interim credit will be granted, if necessary, following the annual calculations for the second year and each subsequent year of the Period of Guarantee. If subsequent annual calculations show that on a cumulative basis, a previous interim credit (or portion thereof) was excessive, such excess amount shall be subject to repayment which will be effected by IAE issuing a debit against AAH’s account with IAE. Credits and debits will be applied to AAH’s account with IAE not later than thirty (30) days following a calculation for the second year and each subsequent year of the Period of Guarantee, as applicable. The Credit Allowance = (AI AR - GIGR) x [*] Wherewhere: