Common use of Engine LLP Reserves Clause in Contracts

Engine LLP Reserves. LESSOR will reimburse LESSEE from the Engine LLP Reserves for an Engine for the actual out-of-pocket materials cost without overhead, markup or profit factor, and reduced by the amount of any “Waste Expense”, associated with the replacement of life-limited Parts in such Engine during completed Engine shop visits (i.e., heavy maintenance visits), with work performed for all other causes excluded, including those causes set forth in Article 13.7. “Waste Expense” means the product of (a) the number of unused cycles on a life-limited Part at the time such life-limited Part is removed for replacement, multiplied by (b) the quotient of the cost of the new replacement life-limited Part divided by the number of cycles which constitutes the approved life of such life-limited Part. Subject to Article 16.1 and excluding exchange, material markup and outside vendor fees, and handling, packaging and shipping charges, reimbursement for replacement of life-limited Parts in an Engine will be made up to the amount in the Engine LLP Reserves applicable to such Engine at the time of removal of such Engine.