Common use of Engines Clause in Contracts

Engines. Each Engine will be installed on the Aircraft and will comply with the following: (a) Each Engine (i) shall have been maintained in accordance with the Lessee's Maintenance Program; (ii) shall be in compliance with all mandatory service bulletins and ADs affecting such Engine and having a final compliance or termination date during the Term (without regard to any deferrals that may be granted); (iii) shall be free and clear of all Liens arising by act or omission of, or suffered to exist by, Lessee; and (iv) shall contain the same Parts (or substitutes or replacements therefor, as provided in the Aircraft Lease Agree ment) as initially delivered to Lessee. (b) If, at the end of the Term, the Engines are subject to an "Engine Maintenance Agreement" (as defined by the Aircraft Lease Agree ment), and such Engine Maintenance Agreement has been effectively assigned to Lessor, Lessee shall return each Engine in such condition as shall make such Engine eligible for continued maintenance under the Engine Maintenance Agreement. If, at the end of the Term, the Engines are not subject to an Engine Maintenance Agreement (or such Agreement has not been effectively assigned to Lessor): (i) each of the Engines (pursuant to Lessee's Maintenance Program) shall have a minimum of half-time until the next scheduled overhaul, based on the Engine Manufacturer's published data over the immediately prior 12 months; (ii) any mandatory service bulletins or ADs that have been deferred shall be incorporated before the Return, (iii) no Engine shall be "on watch;" and each Engine shall perform within the Engine Manufacturer's recommended operating limitations. To the extent that, at the end of the Term, any of the life limited parts of the Engines are not covered by an Engine Maintenance Agreement (which has been assigned to Lessor), such life limited parts shall have a remaining life of at least 2,500 Cycles. (c) Prior to the Return Date (unless an Engine Maintenance Agreement is in effect), a borescope of each Engine shall be conducted by a qualified technician acceptable to Lessor, at Lessor's expense and in the presence of Lessor's designated technical representative. Any defects discovered in each such inspection which exceed the Engine Manufacturer's in-service limits shall be corrected by Lessee, prior to Return of the Aircraft, at no cost to Lessor.

Engines. (a) Each Engine will be is installed on the Aircraft and will comply with has not less than Minimum Engine Flight Hours and Minimum Engine Cycles expected life remaining to the followingnext expected removal. The expected life remaining is to be determined by inspection and checks accomplished before Delivery taking account, where available, of: (a) Each Engine (i) shall have been maintained full borescope inspection; (ii) analysis of trend data; (iii) SLOATL assessment or minimum last [***] qualifying flights (excluding the first flight of the day); (iv) maximum power assurance ground runs; (v) technical log analysis for a minimum of the previous [***] months of operation; (vi) previous shop visit assessment (if applicable); and (vii) in accordance with the Lessee's Maintenance Program; (ii) shall be in compliance with all mandatory service bulletins and ADs affecting such Engine and having a final compliance or termination date during the Term (without regard to any deferrals that may be granted); (iii) shall be free and clear of all Liens arising by act or omission of, or suffered to exist by, Lessee; and (iv) shall contain the same Parts (or substitutes or replacements therefor, as provided in the Aircraft Lease Agree ment) as initially delivered to Lesseemanufacturer’s maintenance manual. (b) IfFollowing the demonstration flight provided for by Section 2 of this Appendix G, each Engine has just completed at the end Delivery Location a complete video borescope inspection of all Engine gas path modules (that inspection performed at Sublessor’s expense) and a power assurance run (performed at Sublessor’s expense) in accordance with Manufacturer’s maintenance manual, in each case Sublessor shall use commercially reasonable efforts to ensure that Sublessee may have one representative present to witness the inspections. Any Discrepancies discovered exceeding the Engine manufacturer’s in-service limits have been corrected at Sublessor’s expense. Sublessor shall have provided a DVD (or other electronic media) of the Term, borescope inspections it had performed to Sublessee. No Engine is on “watch” for any reason requiring any special or out of sequence inspection. Each Engine complies with the Engines are subject to an "Engine Maintenance Agreement" (as defined by operations specification of the Aircraft Lease Agree ment), previous operator without waiver or exceptions and such Engine Maintenance Agreement has been effectively assigned to Lessor, Lessee shall return each Engine in such condition as shall make such Engine eligible for continued maintenance under there being no items beyond the Engine Maintenance Agreement. If, at the end of the Term, the Engines are not subject to an Engine Maintenance Agreement (or such Agreement has not been effectively assigned to Lessor): (i) each of the Engines (pursuant to Lessee's Maintenance Program) shall have a minimum of halfmanufacturer’s in-time until the next scheduled overhaul, based on the Engine Manufacturer's published data over the immediately prior 12 months; (ii) any mandatory service bulletins or ADs that have been deferred shall be incorporated before the Return, (iii) no Engine shall be "on watchlimits;" and each Engine shall perform within the Engine Manufacturer's recommended operating limitations. To the extent that, at the end of the Term, any of the life limited parts of the Engines are not covered by an Engine Maintenance Agreement (which has been assigned to Lessor), such life limited parts shall have a remaining life of at least 2,500 Cycles. (c) Prior Each Engine Life-Limited Part has not less than the Minimum Engine LLP Cycles remaining in accordance with the manufacturer’s then current limitations for the part number in question, and is supported by certification documentation necessary to demonstrate Back-To-Birth Traceability; for this purpose, “Life Limited Part” means a component with an ultimate life which cannot be restored through appropriate maintenance approved by the Return Date (unless an Engine Maintenance Agreement is in effect), a borescope State of each Engine shall be conducted by a qualified technician acceptable to Lessor, at Lessor's expense and in the presence of Lessor's designated technical representative. Any defects discovered in each such inspection which exceed the Engine Manufacturer's in-service limits shall be corrected by Lessee, prior to Return Design of the Aircraft, at no cost to Lessor.manufacturer;

Engines. Each Engine (or a Replacement Engine as and to the extent permitted by Section 1.2(b)) will be installed on the Aircraft and will comply with the following: (a) If the Aircraft Lease Agreement specifies a Minimum Engine Flight Hours and/or Minimum Engine Cycles, each Engine will have not less than the Minimum Engine Flight Hours and Minimum Engine Cycles expected life remaining to the next scheduled removal. The expected life remaining will be determined by third party mutually acceptable to both Lessor and Lessee (at Lessor's cost) or by the Engine Manufacturer, in each case based on the inspection and checks to be performed at the Return Occasion in accordance with the Lease; (b) Each Engine (i) shall have been maintained just completed at the location for Lessor's acceptance on the Return Occasion a hot (including combustion chamber) and cold section video borescope inspection, which inspection shall be performed at Lessor's expense, and a power assurance run performed at Lessee's expense in accordance with the Lessee's Maintenance Program; (ii) shall be in compliance with all mandatory service bulletins and ADs affecting such Engine and having a final compliance Program or termination date during the Term (without regard to any deferrals that may be granted); (iii) shall be free and clear of all Liens arising by act or omission of, or suffered to exist by, Lessee; and (iv) shall contain the same Parts (or substitutes or replacements therefor, as provided in the Aircraft Lease Agree ment) as initially delivered to Lessee. (b) If, at the end of the Term, the Engines are subject to an "Engine Maintenance Agreement" (as defined by the Aircraft Lease Agree ment), and such Engine Maintenance Agreement has been effectively assigned to Lessor, Lessee shall return each Engine in such condition as shall make such Engine eligible for continued maintenance under the Engine Maintenance Agreement. If, at the end of the Term, the Engines are not subject to an Engine Maintenance Agreement (or such Agreement has not been effectively assigned to Lessor): (i) each of the Engines (pursuant to LesseeManufacturer's Maintenance Program) shall have a minimum of half-time until the next scheduled overhaul, based on the Engine Manufacturer's published data over the immediately prior 12 months; (ii) Planning Document and any mandatory service bulletins or ADs that have been deferred shall be incorporated before the Return, (iii) no Engine shall be "on watch;" and each Engine shall perform within the Engine Manufacturer's recommended operating limitations. To the extent that, at the end of the Term, any of the life limited parts of the Engines are not covered by an Engine Maintenance Agreement (which has been assigned to Lessor), such life limited parts shall have a remaining life of at least 2,500 Cycles. (c) Prior to the Return Date (unless an Engine Maintenance Agreement is in effect), a borescope of each Engine shall be conducted by a qualified technician acceptable to Lessor, at Lessor's expense and in the presence of Lessor's designated technical representative. Any defects discovered in each such inspection inspections which exceed the Engine Manufacturermanufacturer's in-service limits shall be corrected at Lessee's expense. Lessee shall cause such borescope inspections to be performed and to be recorded on videotape by Lesseean agency selected by Lessor and shall provide Lessor with a copy of such videotape on the Return Occasion. No Engine shall be on "watch" for any reason, prior requiring any special or out of sequence inspection. Each Engine shall comply with the operations specification of Lessee without waiver or exceptions. All items beyond the Engine manufacturer's in-service limits shall be repaired; (c) If the Aircraft Lease Agreement specifies Minimum Component Cycles, each Engine Life-Limited Component will have not less than the Minimum Component Cycles remaining per the manufacturer's then current limitations for the part number in question, and will be supported by certification documentation necessary to Return of the Aircraft, at no cost to Lessor.demonstrate back-to-birth traceability; for this purpose "Engine Life-Limited Component" means a component with an ultimate life which cannot be restored through appropriate maintenance; and

Engines. Each In the event that any Engine will be installed on does not meet the Aircraft and will comply with the following: conditions set forth in Section II (ab) Each Engine (i) above, for each such Engine Lessee shall have been maintained pay Lessor an amount equal to the sum of (i) the current estimated cost of the next scheduled "hot section" inspection (including in accordance with such estimated cost, all required replacements of life limited parts) multiplied by the Lessee's Maintenance Program; fraction wherein the numerator shall be the greater of (A) zero and (B) the remainder of (x) the actual number of operating hours since the previous hot section inspection, minus (y) 50% of the total operating hours allowable between hot section inspections, and the denominator shall be the total operating hours allowable between hot section inspections, plus (ii) for each such Engine, the product of the current estimated cost of the next scheduled major overhaul (including in such estimated cost, all required replacements of life limited parts) multiplied by the fraction wherein the numerator shall be in compliance the greater of (A) zero and (B) the remainder of (x) the actual number of hours of operation since the previous major overhaul minus (y) 50% of the total operating hours allowable between major overhauls, and the denominator shall be the total operating hours allowable between major overhauls. Notwithstanding the foregoing, the requirements of Section II (b)(i) above and the final sentence of Section II (b) above (but solely with all mandatory service bulletins and ADs affecting such Engine and having a final compliance or termination date during respect to the Term (without regard to any deferrals that may be granted); (iiiEngines) shall be free and clear of all Liens arising by act or omission of, or suffered deemed to exist by, Lessee; and (iv) shall contain the same Parts (or substitutes or replacements therefor, as provided in the Aircraft Lease Agree ment) as initially delivered to Lessee. (b) If, have been satisfied if at the end time of the Term, the Engines are subject to an "Engine Maintenance Agreement" (as defined by the Aircraft Lease Agree ment), and such Engine Maintenance Agreement has been effectively assigned to Lessor, Lessee shall return each Engine in such condition as shall make such Engine eligible for continued maintenance under the Engine Maintenance Agreement. If, at the end of the Term, the Engines are not subject to an Engine Maintenance Agreement (or such Agreement has not been effectively assigned to Lessor): (i) each of the Engines (x) the Engines being returned to Lessor shall be covered by a service and maintenance contract in form and substance satisfactory to Lessor which provides for the maintenance and/or overhaul of the Engines ("Maintenance Contract"), (y) either (i) adequate reserves for future required maintenance and/or overhaul shall have been provided for pursuant to Lessee's such Maintenance Program) shall have a minimum of half-time until the next scheduled overhaul, based on the Engine Manufacturer's published data over the immediately prior 12 months; Contract or (ii) any mandatory service bulletins or ADs that all amounts due and payable pursuant to such Maintenance Contract shall have been deferred paid in full through the date of return and (z) the entity which provides the maintenance and/or overhaul services under such Maintenance shall be incorporated before either (i) recognize the Return, (iii) no Engine shall be "on watch;" and each Engine shall perform within the Engine Manufacturer's recommended operating limitations. To the extent that, at the end transfer by Lessee to Lessor of the Term, any rights and interests of Lessor (or its designee) under such Maintenance Contract or (ii) acknowledge the life limited parts rights and interests of the Engines are not covered by an Engine Lessor (or its designee) under such Maintenance Agreement (which has been assigned to Lessor), such life limited parts shall have a remaining life of at least 2,500 CyclesContract. (c) Prior to the Return Date (unless an Engine Maintenance Agreement is in effect), a borescope of each Engine shall be conducted by a qualified technician acceptable to Lessor, at Lessor's expense and in the presence of Lessor's designated technical representative. Any defects discovered in each such inspection which exceed the Engine Manufacturer's in-service limits shall be corrected by Lessee, prior to Return of the Aircraft, at no cost to Lessor.

Engines. Each Engine will In the event any engine not owned by Lessor shall be installed on the Aircraft and will comply returned with the following: (a) Each Engine an Airframe in lieu of an Engine: (i) if the reason therefor is other than that an Event of Loss has occurred to such Engine, such engine shall be satisfactory to Lessor, in its reasonable discretion, free and clear of Liens, suitable for use on such Airframe and shall have a value and utility at least equal to, be in as good operating condition, and meet the return conditions provided herein (including the incorporation of all airworthiness directives and alert service bulletins which Lessee is required to effect under this Lease, and equivalent modification status, service bulletins status, and overall condition, and no greater number of accumulated flight hours, cycles, and time since last complete engine refurbishment, as the Engine that should have been maintained returned, assuming such Engine which should have been returned was in accordance with the Lessee's Maintenance Programcondition and repair as required by the terms hereof immediately prior to such required return); and (ii) shall be in compliance with all mandatory service bulletins and ADs affecting if the reason therefor is that an Event of Loss has occurred to such Engine and having a final compliance or termination date during the Term (without regard to any deferrals that may be granted); (iii) Engine, such engine shall be free and clear of Liens, suitable for use on such Airframe and shall have a value and utility at least equal to, be in as good operating condition, and meet the return conditions provided herein (including the incorporation of all Liens arising by act or omission ofairworthiness directives and alert service bulletins which Lessee is required to effect under this Lease, or suffered to exist byand equivalent modification status, Lessee; service bulletins status, and (iv) shall contain the same Parts (or substitutes or replacements thereforoverall condition, and no greater number of accumulated flight hours, cycles, and time since last complete engine refurbishment, as provided the Engine that should have been returned, assuming such Engine which should have been returned was in the Aircraft Lease Agree ment) condition and repair as initially delivered required by terms hereof immediately prior to Lessee. (b) Ifsuch required return); and, in either case, Lessee shall, at the end its own expense and concurrently with such delivery, furnish Lessor with a ▇▇▇▇ of the Termsale, the Engines are subject to an "Engine Maintenance Agreement" (as defined by the Aircraft Lease Agree ment), in form and such Engine Maintenance Agreement has been effectively assigned substance reasonably satisfactory to Lessor, Lessee shall return for each Engine such engine and with evidence of Lessee’s title to such engine (including, if requested, an opinion of Lessee’s counsel) and take such other action as Lessor may reasonably request in order that title to such condition as shall make such Engine eligible for continued maintenance under the Engine Maintenance Agreement. If, at the end of the Term, the Engines are not subject to an Engine Maintenance Agreement (or such Agreement has not been effectively assigned to Lessor): (i) each of the Engines (pursuant to Lessee's Maintenance Program) shall have a minimum of half-time until the next scheduled overhaul, based on the Engine Manufacturer's published data over the immediately prior 12 months; (ii) any mandatory service bulletins or ADs that have been deferred engine shall be incorporated before the Return, (iii) no Engine shall be "on watch;" duly and each Engine shall perform within the Engine Manufacturer's recommended operating limitationsproperly vested in Lessor. To the extent that, at the end Upon full compliance with this Section 5 and passage of the Term, any of the life limited parts of the Engines are not covered by an Engine Maintenance Agreement (which has been assigned title to Lessor), such life limited parts shall have a remaining life of at least 2,500 Cycles. (c) Prior to the Return Date (unless an Engine Maintenance Agreement is in effect), a borescope of each Engine shall be conducted by a qualified technician acceptable engine to Lessor, at Lessor's expense and in the presence of Lessor's designated technical representative. Any defects discovered in each such inspection which exceed the Engine Manufacturer's in-service limits engine shall be corrected by Lesseean Engine for all purposes of this Lease and Lessor shall transfer, prior or cause to Return be transferred, to Lessee all Lessor’s right, title and interest in an Engine constituting part of the AircraftAircraft so returned but not installed on such Aircraft at the time of such return, at no cost without any representation, warranty or recourse of any kind whatsoever, express or implied, except a warranty that such Engine is free and clear of Liens which result from the Lessor’s own acts or omissions or from claims against the Lessor not to Lessorbe paid or indemnified against by the Lessee hereunder or not related to the transaction contemplated by this Lease.

Engines. Each Engine (or a Replacement Engine as and to the extent permitted by Section 1.2(b)) will be installed on the Aircraft and will comply with the following: (a) If the Aircraft Lease Agreement specifies a Minimum Engine Flight Hours and/or Minimum Engine Cycles, each Engine will have not less than the Minimum Engine Flight Hours and Minimum Engine Cycles expected life remaining to the next scheduled removal. The expected life remaining will be determined by third party mutually acceptable to both Lessor and Lessee (at Lessor's cost) or by the Engine Manufacturer, in each case based on the inspection and checks to be performed at the Return Occasion in accordance with the Lease; (b) Each Engine (i) shall have been maintained just completed at the location for Lessor's acceptance on the Return Occasion a hot (including combustion chamber) and cold section video borescope inspection, which inspection shall be performed at Lessor's expense, and a power assurance run performed at Lessee's expense in accordance with the Lessee's Maintenance Program; (ii) shall be in compliance with all mandatory service bulletins and ADs affecting such Engine and having a final compliance Program or termination date during the Term (without regard to any deferrals that may be granted); (iii) shall be free and clear of all Liens arising by act or omission of, or suffered to exist by, Lessee; and (iv) shall contain the same Parts (or substitutes or replacements therefor, as provided in the Aircraft Lease Agree ment) as initially delivered to Lessee. (b) If, at the end of the Term, the Engines are subject to an "Engine Maintenance Agreement" (as defined by the Aircraft Lease Agree ment), and such Engine Maintenance Agreement has been effectively assigned to Lessor, Lessee shall return each Engine in such condition as shall make such Engine eligible for continued maintenance under the Engine Maintenance Agreement. If, at the end of the Term, the Engines are not subject to an Engine Maintenance Agreement (or such Agreement has not been effectively assigned to Lessor): (i) each of the Engines (pursuant to LesseeManufacturer's Maintenance Program) shall have a minimum of half-time until the next scheduled overhaul, based on the Engine Manufacturer's published data over the immediately prior 12 months; (ii) Planning Document and any mandatory service bulletins or ADs that have been deferred shall be incorporated before the Return, (iii) no Engine shall be "on watch;" and each Engine shall perform within the Engine Manufacturer's recommended operating limitations. To the extent that, at the end of the Term, any of the life limited parts of the Engines are not covered by an Engine Maintenance Agreement (which has been assigned to Lessor), such life limited parts shall have a remaining life of at least 2,500 Cycles. (c) Prior to the Return Date (unless an Engine Maintenance Agreement is in effect), a borescope of each Engine shall be conducted by a qualified technician acceptable to Lessor, at Lessor's expense and in the presence of Lessor's designated technical representative. Any defects discovered in each such inspection inspections which exceed the Engine Manufacturermanufacturer's in-service limits shall be corrected at Lessee's expense. Lessee shall cause such borescope inspections to be performed and to be recorded on videotape by Lesseean agency selected by Lessor and shall provide Lessor with a copy of such videotape on the Return Occasion. No Engine shall be on "watch" for any reason requiring any special or out of sequence inspection. Each Engine shall comply with the operations specification of Lessee without waiver or exceptions. All items beyond the Engine manufacturer's in-service limits shall be repaired; (c) If the Aircraft Lease Agreement specifies Minimum Component Cycles, prior each Engine Life-Limited Component will have not less than the Minimum Component Cycles remaining per the manufacturer's then current limitations for the part number in question, and will be supported by certification documentation necessary to Return of the Aircraft, at no cost to Lessor.demonstrate back-to-birth traceability; for this purpose "Engine Life-Limited Component" means a component with an ultimate life which cannot be restored through appropriate maintenance; and

Engines. Each In the event that any Engine will be installed on does not meet the Aircraft and will comply with the following: conditions set forth in Section II (ab) Each Engine (i) above, for each such Engine Lessee shall have been maintained pay Lessor an amount equal to the sum of (i) the current estimated cost of the next scheduled “hot section” inspection (including in accordance with such estimated cost, all required replacements of life limited parts) multiplied by the Lessee's Maintenance Program; fraction wherein the numerator shall be the greater of (A) zero and (B) the remainder of (x) the actual number of operating hours since the previous hot section inspection, minus (y) 50% of the total operating hours allowable between hot section inspections, and the denominator shall be the total operating hours allowable between hot section inspections, plus (ii) for each such Engine, the product of the current estimated cost of the next scheduled major overhaul (including in such estimated cost, all required replacements of life limited parts) multiplied by the fraction wherein the numerator shall be in compliance the greater of (A) zero and (B) the remainder of (x) the actual number of hours of operation since the previous major overhaul minus (y) 50% of the total operating hours allowable between major overhauls, and the denominator shall be the total operating hours allowable between major overhauls. Notwithstanding the foregoing, the requirements of Section II (b)(i) above and the final sentence of Section II (b) above (but solely with all mandatory service bulletins and ADs affecting such Engine and having a final compliance or termination date during respect to the Term (without regard to any deferrals that may be granted); (iiiEngines) shall be free and clear of all Liens arising by act or omission of, or suffered deemed to exist by, Lessee; and (iv) shall contain the same Parts (or substitutes or replacements therefor, as provided in the Aircraft Lease Agree ment) as initially delivered to Lessee. (b) If, have been satisfied if at the end time of the Term, the Engines are subject to an "Engine Maintenance Agreement" (as defined by the Aircraft Lease Agree ment), and such Engine Maintenance Agreement has been effectively assigned to Lessor, Lessee shall return each Engine in such condition as shall make such Engine eligible for continued maintenance under the Engine Maintenance Agreement. If, at the end of the Term, the Engines are not subject to an Engine Maintenance Agreement (or such Agreement has not been effectively assigned to Lessor): (i) each of the Engines (x) the Engines being returned to Lessor shall be covered by a service and maintenance contract in form and substance satisfactory to Lessor which provides for the maintenance and/or overhaul of the Engines (“Maintenance Contract”), (y) either (i) adequate reserves for future required maintenance and/or overhaul shall have been provided for pursuant to Lessee's such Maintenance Program) shall have a minimum of half-time until the next scheduled overhaul, based on the Engine Manufacturer's published data over the immediately prior 12 months; Contract or (ii) any mandatory service bulletins or ADs that all amounts due and payable pursuant to such Maintenance Contract shall have been deferred paid in full through the date of return and (z) the entity which provides the maintenance and/or overhaul services under such Maintenance shall be incorporated before either (i) recognize the Return, (iii) no Engine shall be "on watch;" and each Engine shall perform within the Engine Manufacturer's recommended operating limitations. To the extent that, at the end transfer by Lessee to Lessor of the Term, any rights and interests of Lessor (or its designee) under such Maintenance Contract or (ii) acknowledge the life limited parts rights and interests of the Engines are not covered by an Engine Lessor (or its designee) under such Maintenance Agreement (which has been assigned to Lessor), such life limited parts shall have a remaining life of at least 2,500 CyclesContract. (c) Prior to the Return Date (unless an Engine Maintenance Agreement is in effect), a borescope of each Engine shall be conducted by a qualified technician acceptable to Lessor, at Lessor's expense and in the presence of Lessor's designated technical representative. Any defects discovered in each such inspection which exceed the Engine Manufacturer's in-service limits shall be corrected by Lessee, prior to Return of the Aircraft, at no cost to Lessor.

Engines. Each Engine (or a Replacement Engine as and to the extent permitted by Section 1.2(b)) will be installed on the Aircraft and will comply with the following: (a) If the Aircraft Lease Agreement specifies a Minimum Engine Flight Hours and/or Minimum Engine Cycles, each Engine will have not less than the Minimum Engine Flight Hours and Minimum Engine Cycles expected life remaining to the next expected removal. The expected life remaining will be determined by third party mutually acceptable to both Lessor and Lessee (at Lessor's cost) or by the Engine Manufacturer, in each case based on the inspection and checks to be performed at the Return Occasion in accordance with the Lease; (b) Each Engine (i) shall have been maintained just completed at the location for Lessor's acceptance on the Return Occasion a hot (including combustion chamber) and cold section video borescope inspection, which inspection shall be performed at Lessor's expense, and a power assurance run performed at Lessee's expense in accordance with the Lessee's Maintenance Program; (ii) shall be in compliance with all mandatory service bulletins and ADs affecting such Engine and having a final compliance Program or termination date during the Term (without regard to any deferrals that may be granted); (iii) shall be free and clear of all Liens arising by act or omission of, or suffered to exist by, Lessee; and (iv) shall contain the same Parts (or substitutes or replacements therefor, as provided in the Aircraft Lease Agree ment) as initially delivered to Lessee. (b) If, at the end of the Term, the Engines are subject to an "Engine Maintenance Agreement" (as defined by the Aircraft Lease Agree ment), and such Engine Maintenance Agreement has been effectively assigned to Lessor, Lessee shall return each Engine in such condition as shall make such Engine eligible for continued maintenance under the Engine Maintenance Agreement. If, at the end of the Term, the Engines are not subject to an Engine Maintenance Agreement (or such Agreement has not been effectively assigned to Lessor): (i) each of the Engines (pursuant to LesseeManufacturer's Maintenance Program) shall have a minimum of half-time until the next scheduled overhaul, based on the Engine Manufacturer's published data over the immediately prior 12 months; (ii) Planning Document and any mandatory service bulletins or ADs that have been deferred shall be incorporated before the Return, (iii) no Engine shall be "on watch;" and each Engine shall perform within the Engine Manufacturer's recommended operating limitations. To the extent that, at the end of the Term, any of the life limited parts of the Engines are not covered by an Engine Maintenance Agreement (which has been assigned to Lessor), such life limited parts shall have a remaining life of at least 2,500 Cycles. (c) Prior to the Return Date (unless an Engine Maintenance Agreement is in effect), a borescope of each Engine shall be conducted by a qualified technician acceptable to Lessor, at Lessor's expense and in the presence of Lessor's designated technical representative. Any defects discovered in each such inspection inspections which exceed the Engine Manufacturermanufacturer's in-service limits shall be corrected at Lessee's expense. Lessee shall cause such borescope inspections to be performed and to be recorded on videotape by Lesseean agency selected by Lessor and shall provide Lessor with a copy of such videotape on the Return Occasion. No Engine shall be on "watch" for any reason requiring any special or out of sequence inspection. Each Engine shall comply with the operations specification of Lessee without waiver or exceptions. All items beyond the Engine manufacturer's in-service limits shall be repaired; (c) If the Aircraft Lease Agreement specifies Minimum Component Cycles, prior to Return of each Engine Life-Limited Component will have not less than the Aircraft, at no cost to Lessor.Minimum Component Cycles remaining per the manufacturer's then current limitations for the part

Engines. Each Engine (or a Replacement Engine as and to the extent permitted by Section 1.2(b)) will be installed on the Aircraft and will comply with the following: (a) If the Aircraft Lease Agreement specifies a Minimum Engine Flight Hours and/or Minimum Engine Cycles, each Engine will have not less than the Minimum Engine Flight Hours and Minimum Engine Cycles expected life remaining to the next expected removal. The expected life remaining will be determined by third party mutually acceptable to both Lessor and Lessee (at Lessor's cost) or by the Engine Manufacturer, in each case based on the inspection and checks to be performed at the Return Occasion in accordance with the Lease; (b) Each Engine (i) shall have been maintained just completed at the location for Lessor's acceptance on the Return Occasion a hot (including combustion chamber) and cold section video borescope inspection, which inspection shall be performed at Lessor's expense, and a power assurance run performed at Lessee's expense in accordance with the Lessee's Maintenance Program; (ii) shall be in compliance with all mandatory service bulletins and ADs affecting such Engine and having a final compliance Program or termination date during the Term (without regard to any deferrals that may be granted); (iii) shall be free and clear of all Liens arising by act or omission of, or suffered to exist by, Lessee; and (iv) shall contain the same Parts (or substitutes or replacements therefor, as provided in the Aircraft Lease Agree ment) as initially delivered to Lessee. (b) If, at the end of the Term, the Engines are subject to an "Engine Maintenance Agreement" (as defined by the Aircraft Lease Agree ment), and such Engine Maintenance Agreement has been effectively assigned to Lessor, Lessee shall return each Engine in such condition as shall make such Engine eligible for continued maintenance under the Engine Maintenance Agreement. If, at the end of the Term, the Engines are not subject to an Engine Maintenance Agreement (or such Agreement has not been effectively assigned to Lessor): (i) each of the Engines (pursuant to LesseeManufacturer's Maintenance Program) shall have a minimum of half-time until the next scheduled overhaul, based on the Engine Manufacturer's published data over the immediately prior 12 months; (ii) Planning Document and any mandatory service bulletins or ADs that have been deferred shall be incorporated before the Return, (iii) no Engine shall be "on watch;" and each Engine shall perform within the Engine Manufacturer's recommended operating limitations. To the extent that, at the end of the Term, any of the life limited parts of the Engines are not covered by an Engine Maintenance Agreement (which has been assigned to Lessor), such life limited parts shall have a remaining life of at least 2,500 Cycles. (c) Prior to the Return Date (unless an Engine Maintenance Agreement is in effect), a borescope of each Engine shall be conducted by a qualified technician acceptable to Lessor, at Lessor's expense and in the presence of Lessor's designated technical representative. Any defects discovered in each such inspection inspections which exceed the Engine Manufacturermanufacturer's in-service limits shall be corrected at Lessee's expense. Lessee shall cause such borescope inspections to be performed and to be recorded on videotape by Lesseean agency selected by Lessor and shall provide Lessor with a copy of such videotape on the Return Occasion. No Engine shall be on "watch" for any reason requiring any special or out of sequence inspection. Each Engine shall comply with the operations specification of Lessee without waiver or exceptions. All items beyond the Engine manufacturer's in-service limits shall be repaired; (c) If the Aircraft Lease Agreement specifies Minimum Component Cycles, prior each Engine Life-Limited Component will have not less than the Minimum Component Cycles remaining per the manufacturer's then current limitations for the part number in question, and will be supported by certification documentation necessary to Return of the Aircraft, at no cost to Lessor.demonstrate back-to-birth traceability; for this purpose "Engine Life-Limited Component" means a component with an ultimate life which cannot be restored through appropriate maintenance; and