Common use of Return Conditions Clause in Contracts

Return Conditions. At the time of such return to the Obligee, each of the following provisions shall have been satisfied: (i) the Assets (and each part or component thereof) shall be in good operating order, repair and condition, ordinary wear and tear excepted, and not in need of any further repair or reconditioning to permit the Assets to be fully operational and fit for use as an Asset of the type specified in the Asset Use Supplement (the condition specified in this clause (i) being referred to herein as the "Redelivery Condition"); (ii) the Assets (and each part or component thereof) shall be in full compliance with Section 10(b), Section 10(d) and Section 11 without any Permitted Noncompliance thereunder; (iii) the Assets (and each part or component thereof) shall conform to and comply with all Applicable Laws; (iv) the Assets shall have attached or affixed thereto (x) all Required Alterations and (y) all Optional Alterations to the extent such Optional Alterations are subject to the terms of this Agreement as provided in Section 12; (v) each Asset (and each part or component thereof) shall be free and clear of all Liens, other than Liens of the type described in clause (a) or (b) of the definition of Permitted Liens; (vi) the Assets shall be free of all advertising, insignia and distinctive markings placed thereon by the Obligor or any sub-obligor except as expressly provided herein; (vii) each Asset shall be free of sub-use agreements; (viii) all (x) Required Alterations and (y) to the extent commenced prior to the Termination Date, Optional Alterations and other modifications, restorations and rebuilding with respect to the Assets, shall have been completed in a good and workmanlike manner and in compliance with all Applicable Laws and Insurance Requirements, and the Obligor shall have paid the cost of all such Required Alterations, Optional Alterations and other modifications, restorations and rebuilding prior to the redelivery of the Assets under this Section 6; and

Return Conditions. At the time In addition to any other requirements of such this Lease, upon return to the Obligee, each of the following provisions shall have been satisfiedEngine to Lessor, Lessee will ensure that: (i) a. the Assets (and each part or component thereof) shall be in good operating order, repair and condition, ordinary wear and tear excepted, and not in need of any further repair or reconditioning to permit the Assets to be fully operational and fit for use as an Asset of the type specified in the Asset Use Supplement (the condition specified in this clause (i) being referred to herein as the "Redelivery Condition"); (ii) the Assets (and each part or component thereof) shall be in full compliance with Section 10(b), Section 10(d) and Section 11 without any Permitted Noncompliance thereunder; (iii) the Assets (and each part or component thereof) shall conform to and comply with all Applicable Laws; (iv) the Assets shall have attached or affixed thereto (x) all Required Alterations and (y) all Optional Alterations to the extent such Optional Alterations are subject to the terms of this Agreement as provided in Section 12; (v) each Asset (and each part or component thereof) shall be Engine is free and clear of all Liens (except Permitted Liens) and shall have installed thereon the Parts installed at Delivery or replacements thereof installed in accordance with the provisions of this Lease, provided that the title thereto is vested in Lessor; b. the Engine is either (i) serviceable or (ii) unserviceable based on (x) being fully time expired or (y) borescope findings beyond maintenance manual limits due to normal wear and tear, * * it is specifically recorded that any reduced inspection interval * per CFM or maintenance manual shall not be considered a cause to deem the Engine to be unserviceable; c. in the event the Engine cannot sustain * pounds of thrust without exceeding the limits in the normal operating conditions (not related to FOD, misuse or abuse or Lessee induced or other than Liens Operator Exceedance damage), the Lessor shall accept the Engine and repair or dispose of it as Lessor deems fit (in this case the Engine shall be deemed unserviceable and all clauses relating to a serviceable engine shall not apply, however, Lessee shall comply with the MPA (only if it is safe to do so) and EOL inspections referred to in Section 18.2) if not otherwise agreed; d. the Engine shall have installed thereon all Parts installed thereon on the Delivery Date or permitted replacements thereof in accordance with the Lease and the Engine is in the same configuration and in an as good condition as at Delivery, normal wear and tear and normal rate of performance deterioration excepted; e. the Engine, except for the parts/components listed in ATA chapter 71 or 72, is free of all deferred or carry-over maintenance items, including pilot log book reports and defects requiring repetitive inspections and will not be “on watch” or have any reduced interval inspections; f. the Engine has affixed a current, valid and effective EASA Form 1 with full return-to-service statement, if serviceable, at * pounds of thrust; g. with reference to the MPA and EOL inspection referred to in Section 18.2 and together with the Engine’s historical and technical data and condition trend monitoring data for the Engine, Lessor is satisfied: i. with the Engine’s status and that there is no indication of an adverse deterioration in the performance of the Engine which is higher than normal based upon Lessee’s maintenance experience in operating engines of the same type described and; * The confidential portion has been omitted pursuant to a request for confidential treatment filed by Air T, Inc. with the Securities Exchange Commission and filed separately with the Commission. h. prior to returning the Engine to Lessor, Lessee will prepare the Engine for shipment by: i. capping and plugging all openings of the Engine; ii. preserving the Engine for three hundred sixty-five (365) days storage, according to the engine preservation procedure of the AMM or the relevant EMM; iii. completely covering the Engine with heat shrink wrap and the tarpaulin cover or bag (if provided) at Delivery; and iv. otherwise preparing the Engine for shipment in clause accordance with the manufacturer’s specifications/recommendations. Any trucks used for shipment of the Engine will be equipped with air ride or air cushion suspension system. Lessee shall provide Lessor with photos of the Engine that show that it is loaded on a truck with air ride or air cushion suspension or other appropriate equipment and provide evidence that the Engine is properly loaded and secured thereon. On any given shipment, such truck will be dedicated to the Engine belonging solely to Lessor; except that additional items may be transported on such truck, provided that (a) or the Engine can and will be off-loaded by Lessor at the Redelivery Location without disturbing any of the additional items and (b) Lessee or its shipper will not handle or reposition any of the definition of Permitted Liens; (vi) additional items on such truck either while the Assets shall be free of all advertising, insignia and distinctive markings placed thereon by Engine is in transit or when it arrives at the Obligor or any sub-obligor except as expressly provided herein; (vii) each Asset shall be free of sub-use agreements; (viii) all (x) Required Alterations and (y) to the extent commenced prior to the Termination Date, Optional Alterations and other modifications, restorations and rebuilding with respect to the Assets, shall have been completed in a good and workmanlike manner and in compliance with all Applicable Laws and Insurance Requirements, and the Obligor shall have paid the cost of all such Required Alterations, Optional Alterations and other modifications, restorations and rebuilding prior to the redelivery of the Assets under this Section 6; andRedelivery Location.

Return Conditions. At Upon receipt by Lessor of US$ [ ] in cleared funds, on an after-tax basis, (the “Buyout Amount”) on or before the Return, the Lease shall be amended as follows: 2.2.1 Section 12.8(d)(ii) shall be deleted in its entirely and replaced as follows: “with respect to Time Controlled Parts, have not accumulated more time since new (and time since Overhaul if such replaced Part has previously been overhauled) more than one hundred and ten per cent (110%) of the time since new (or time since Overhaul as the case may be) of that of the replaced Part, except for the Time Controlled Parts listed in Exhibit A of the Third Aircraft Lease Amendment Agreement, including other Time Controlled Parts which are replaced after the date of the Third Aircraft Lease Amendment Agreement, due to subsequent, (i)AMM requirements, (ii) MPD requirements, or (iii) to support AOG operations as demonstrated by Lessee.” 2.2.2 Section 1.2 of Appendix 2E (Return Conditions) shall be deleted in its entirely and replaced as follows: “Exterior washing and interior cleaning of the Aircraft shall not be required.” 2.2.3 The following wording shall be added at the end of Section 1.5 of Appendix 2E (Return Conditions): “In the event that the Scheduled Termination Date is not extended to March 2020, the Lessee shall not be required to make the modification to the Controller-Pilot Data Link Communications and ADS B-Out which becomes effective so as to comply with the relevant EASA requirements in force at the relevant time.” 2.2.4 Section 2 (Paint) of Appendix 2E (Return Conditions) shall be deleted in its entirely and replaced as follows: “The Aircraft fuselage, engine cowls and outboard main wheel covers shall be accepted by Lessor in an “as-is” condition. All required placards and markings shall be in the English language and shall be replaced if not in English, or if deteriorated from the condition at Delivery.” 2.2.5 Section 3 (Airframe) of Appendix 2E (Return Conditions) shall be deleted in its entirely and replaced as follows: “Immediately prior to Return, the Aircraft shall have completed an A-Check in accordance with the Airframe Manufacturer’s MPD, without any deferred items. The A-Check shall be performed by an Approved Maintenance Organization approved by Lessor. Lessee shall give Lessor not less than ten (10) Business Days’ prior written notice of the commencement date of such A-Check.” 2.2.6 Section 4.2 of Appendix 2E (Return Conditions) shall be deleted in its entirely and replaced as follows: “Lessee may return the Aircraft to Lessor at Return with visible crazing and delaminations on the Obligee, each cockpit windows. The cockpit windows shall not have any other defects that exceed allowable limits set forth in the Manufacturer’s Repair Manual.” 2.2.7 Section 4.3 of Appendix 2E (Return Conditions) shall be deleted in its entirely and replaced as follows: “Lessee may return the Aircraft to Lessor at Return with visible crazing and delaminations on the passenger compartment windows.” 2.2.8 Section 4.4 of Appendix 2E (Return Conditions) shall be deleted in its entirely and replaced as follows: “All equipment and furnishings in the interior of the following provisions Aircraft that are defective, damaged, or excessively worn shall have been satisfiedbe repaired in accordance with the Manufacturer's recommended repair procedures, or replaced by Lessee, with the exception of the (i) cabin passenger seats, (ii) cushions, (iii) carpets and (iv) curtains, only which shall be returned in “as is” condition.” 2.2.9 Section 5.2 of Appendix 2E (Return Conditions) shall be deleted in its entirely and replaced as follows: (ia) the Assets (and each part or component thereof) shall be in good operating order, repair and condition, ordinary wear and tear excepted, and not in need of any further repair or reconditioning to permit the Assets to be fully operational and fit for use as an Asset In respect of the type specified in the Asset Use Supplement (the condition specified in this clause (i) being referred to herein as the "Redelivery Condition"); (ii) the Assets (and Engine with Engine Serial Number 890420, each part or component thereof) shall be in full compliance with Section 10(b), Section 10(d) and Section 11 without any Permitted Noncompliance thereunder; (iii) the Assets (and each part or component thereof) shall conform to and comply with all Applicable Laws; (iv) the Assets Engine Life Limited Part shall have attached or affixed thereto a minimum of twenty (x20) all Required Alterations and (y) all Optional Alterations Cycles remaining to the extent Engine Manufacturer’s then- published life limit for each such Optional Alterations are subject to the terms Engine Life Limited Part (based on twenty four thousand pounds (24,000 lbs) of this Agreement as provided in Section 12;thrust). (v) each Asset (and each part or component thereof) shall be free and clear of all Liens, other than Liens of the type described in clause (a) or (b) In respect of the definition Engine with Engine Serial Number 890421, each Engine Life Limited Part shall have a minimum of Permitted Liens;four hundred (400) Cycles remaining to the Engine Manufacturer’s then-published life limit for each such Engine Life Limited Part (based on twenty four thousand pounds (24,000 lbs) of thrust).” (vi) the Assets 2.2.10 The following wording shall be free added at the end of the Section 6.1 of Appendix 2E (Return Conditions): “Such redelivery flight check can be performed as part of the Lessee’s ferry flight to the Redelivery Location (the Redelivery Location being Marana, Arizona, unless otherwise notified to the Lessee, in the sole discretion of the Lessor). In such case, all advertising, insignia and distinctive markings placed thereon by discrepancies found during such redelivery check flight which exceed or are outside the Obligor or any sub-obligor except as expressly provided herein; (vii) each Asset Manufacturer’s Repair Manual allowable limits shall be free of sub-use agreements; corrected by Lessee at Lessee’s expense, or, Lessor and Lessee may elect at Redelivery that Lessee pay financial compensation (viii) all (x) Required Alterations in an amount to be reasonably agreed between Lessor and (yLessee) to Lessor in lieu of resolving such discrepancies.” For avoidance of doubt, if the extent commenced prior Buyout Amount is not timely received by Lessor, the amendment referred to the Termination Date, Optional Alterations and other modifications, restorations and rebuilding with respect to the Assets, shall have been completed in a good and workmanlike manner and in compliance with all Applicable Laws and Insurance Requirements, and the Obligor shall have paid the cost of all such Required Alterations, Optional Alterations and other modifications, restorations and rebuilding prior to the redelivery of the Assets under this Section 6; and2 shall be of no force or effect.

Return Conditions. At the time In addition to any other requirements of such this Lease, upon return to the Obligee, each of the following provisions shall have been satisfiedEngine to Lessor, Lessee will ensure that: (i) a. the Assets (and each part or component thereof) shall be in good operating order, repair and condition, ordinary wear and tear excepted, and not in need of any further repair or reconditioning to permit the Assets to be fully operational and fit for use as an Asset of the type specified in the Asset Use Supplement (the condition specified in this clause (i) being referred to herein as the "Redelivery Condition"); (ii) the Assets (and each part or component thereof) shall be in full compliance with Section 10(b), Section 10(d) and Section 11 without any Permitted Noncompliance thereunder; (iii) the Assets (and each part or component thereof) shall conform to and comply with all Applicable Laws; (iv) the Assets shall have attached or affixed thereto (x) all Required Alterations and (y) all Optional Alterations to the extent such Optional Alterations are subject to the terms of this Agreement as provided in Section 12; (v) each Asset (and each part or component thereof) shall be Engine is free and clear of all Liens (except Permitted Liens) and shall have installed thereon the Parts installed at Delivery or replacements thereof installed in accordance with the provisions of this Lease, other than Liens of provided that the type described title thereto is vested in clause Lessor; b. the Engine is either (ai) serviceable or (bii) of unserviceable based on (x) being fully time expired or (y) borescope findings beyond maintenance manual limits due to normal wear and tear, * ;* it is specifically recorded that any reduced inspection interval * * per CFM or maintenance manual shall not be considered a cause to deem the definition of Permitted LiensEngine to be unserviceable; c. in the event the Engine cannot sustain * pounds of thrust without exceeding the limits in the normal operating conditions (vi) not related to FOD, misuse or abuse or Lessee induced or other Operator Exceedance damage), the Assets Lessor shall accept the Engine and repair or dispose of it as Lessor deems fit (in this case the Engine shall be deemed unserviceable and all clauses relating to a serviceable engine shall not apply, however, Lessee shall comply with the MPA (only if it is safe to do so) and EOL inspections referred to in Section 18.2) if not otherwise agreed; d. the Engine shall have installed thereon all Parts installed thereon on the Delivery Date or permitted replacements thereof in accordance with the Lease and the Engine is in the same configuration and in an as good condition as at Delivery, normal wear and tear and normal rate of performance deterioration excepted; e. the Engine, except for the parts/components listed in ATA chapter 71 or 72, is free of all advertisingdeferred or carry-over maintenance items, insignia including pilot log book reports and distinctive markings placed thereon by the Obligor defects requiring repetitive inspections and will not be “on watch” or have any sub-obligor except as expressly provided hereinreduced interval inspections; (vii) each Asset shall be free f. the Engine has affixed a current, valid and effective EASA Form 1 with full return-to-service statement, if serviceable, at * pounds of sub-use agreementsthrust; (viii) all (x) Required Alterations and (y) g. with reference to the extent commenced MPA and EOL inspection referred to in Section 18.2 and together with the Engine’s historical and technical data and condition trend monitoring data for the Engine, Lessor is satisfied: i. with the Engine’s status and that there is no indication of an adverse deterioration in the performance of the Engine which is higher than normal based upon Lessee’s maintenance experience in operating engines of the same type and; * The confidential portion has been omitted pursuant to a request for confidential treatment filed by Air T, Inc. with the Securities Exchange Commission and filed separately with the Commission. h. prior to returning the Termination DateEngine to Lessor, Optional Alterations Lessee will prepare the Engine for shipment by: i. capping and other modificationsplugging all openings of the Engine; ii. preserving the Engine for three hundred sixty-five (365) days storage, restorations and rebuilding with respect according to the Assets, shall have been completed in a good and workmanlike manner and in compliance with all Applicable Laws and Insurance Requirements, and the Obligor shall have paid the cost of all such Required Alterations, Optional Alterations and other modifications, restorations and rebuilding prior to the redelivery engine preservation procedure of the Assets under this Section 6; andAMM or the relevant EMM;