Maintenance Status. The maintenance status of individual components on the Aircraft may vary from delivery condition but the overall maintenance status of the Aircraft at the time of the Aircraft's return to Lessor shall be subject to the following minimum standards: (i) All parts, systems and components (other than Engines and their associated line replaceable units) that are considered under the Lessee's FAA maintenance program and the Manufacturer recommended maintenance program to be "on- condition" shall be functioning and serviceable. (ii) All Components (as hereinafter defined) that are listed in Exhibit B as having a defined life between service, inspections, overhaul or replacement by way of hours, cycles or calendar time shall have one-half time remaining of the then defined life in hours, cycles or calendar time between service, inspections, overhaul or replacement; provided that if subsequent to the date hereof any Component is considered under the Lessee's FAA maintenance program and the Manufacturer's recommended maintenance program to be "on- condition", such Component shall be deleted from the list of Components in Exhibit B and shall be returned to Lessor in the condition required by Subsection (c)(i) hereof and; provided Aircraft shall be deemed to have satisfied return conditions for Components if all Components on average meet the half-life standard set forth in subsection (c)(ii). Average half-life shall be measured by application of the formula set forth below. In the event the Half-Life Variance is greater than zero, there shall be deemed to be a deficiency in the overall maintenance status of the Aircraft, and Lessee shall make a payment to Lessor in the amount of the Half-Life Variance. In the event the Half-Life Variance is less than zero, there shall be deemed to be a betterment in the overall maintenance status of the Aircraft, and Lessor shall make a payment to Lessee in the amount of the Half-Life Variance. The formula to calculate the Half-Life Variance is as follows: Half-Life Variance = S (TBO/2 - TRr) x (Vo/TBO) Where:
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Sources: Purchase Agreement (Atlantic Coast Airlines Inc), Purchase Agreement (Atlantic Coast Airlines Inc)
Maintenance Status. The maintenance status of individual components on the Aircraft may vary from delivery condition but the overall maintenance status of the Aircraft at the time of the Aircraft's return to Lessor shall be subject to the following minimum standards:
(i) All parts, systems and components (other than Engines and their associated line replaceable units) that are considered under the Lessee's FAA maintenance program and the Manufacturer recommended maintenance program to be "on- on-condition" shall be functioning and serviceable.
(ii) All Components (as hereinafter defined) that are listed in Exhibit B as having a defined life between service, inspections, overhaul or replacement by way of hours, cycles or calendar time shall have one-half time remaining of the then defined life in hours, cycles or calendar time between service, inspections, overhaul or replacement; provided that if subsequent to the date hereof any Component is considered under the Lessee's FAA maintenance program and the Manufacturer's recommended maintenance program to be "on- condition", such Component shall be deleted from the list of Components in Exhibit B and shall be returned to Lessor in the condition required by Subsection (c)(i) hereof and; provided Aircraft shall be deemed to have satisfied return conditions for Components if all Components on average meet the half-life standard set forth in subsection (c)(ii). Average half-life shall be measured by application of the formula set forth below. In the event the Half-Life Variance is greater than zero, there shall be deemed to be a deficiency in the overall maintenance status of the Aircraft, and Lessee shall make a payment to Lessor in the amount of the Half-Life Variance. In the event the Half-Life Variance is less than zero, there shall be deemed to be a betterment in the overall maintenance status of the Aircraft, and Lessor shall make a payment to Lessee in the amount of the Half-Life Variance. The formula to calculate the Half-Life Variance is as follows: Half-Life Variance = S (TBO/2 - TRr) x (Vo/TBO) Where:
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