Common use of Airworthiness Directives Clause in Contracts

Airworthiness Directives. Service Bulletins. If the FAA, the Manufacturer or the Engine Manufacturer, or the manufacturer of any Parts, publishes an airworthiness directive or mandatory service bulletin after the Effective Date of this Lease, which has a useful life beyond the Term, requiring completion or termination during the Term (a "Post-Effective Mandatory Modification"), LESSEE shall as required in Section 7(D)(i) above take all such action as is necessary to comply with such Post-Effective Mandatory Modification prior to the return of the Aircraft by LESSEE to LESSOR. To the extent the cost of completing or terminating any such Post-Effective Mandatory Modification exceeds $50,000.00, LESSOR shall pay to LESSEE a portion of such excess equal to the following: (LESSEE's Cost - $50,000) x A/240 Where: A = 240 minus the number of months (rounded upward or downward, as the case may be, to the nearest month) from the date the relevant Post-Effective Mandatory Modification was completed or terminated by LESSEE to the Expiration Date. Any amounts payable by LESSOR to LESSEE pursuant to this Section 7(E) shall not be payable to the LESSEE until the later of (i) the Expiration Date, or (ii) the date on which the LESSEE has complied with all the terms of this Lease.