Common use of MAINTENANCE CONTRIBUTION Clause in Contracts

MAINTENANCE CONTRIBUTION. (a) Provided no Default has occurred and is continuing, upon the performance by Lessee of "Qualifying Work" (as hereinafter defined) relating to any airworthiness directive, the Lessor will pay to the Lessee, by way of contribution to the cost of maintenance of the Aircraft, an amount equal to the product of (a) the amount by which the Actual Cost of the Qualifying Work for such airworthiness directive exceeds $225,000, multiplied by (b) a fraction the numerator of which is 60 minus the number of months (rounded to the nearest whole number of months) from the date of the completion of such Qualifying Work until the scheduled Expiry Date and the denominator is 60.

Appears in 2 contracts

Sources: Lease Agreement (Turn Works Acquisition Iii Sub a Inc), Lease Agreement (Turn Works Acquisition Iii Sub a Inc)