Common use of Initial Inspection Clause in Contracts

Initial Inspection. Seller has provided or shall provide or has caused or shall cause the Previous Operator to provide the Buyer with access to all logs, manuals, certificates and data and inspection, modification, overhaul and repair records for each of the Airframes and Engines to confirm that such records are in compliance with applicable rules and regulations of the FAA governing the Previous Operator (the “Records”) for the Aircraft. After receiving access to the Records, Buyer shall use its reasonable efforts to complete its inspection of the Records promptly (the “Initial Inspection”). Within five days of completion of the Initial Inspection for each Aircraft, Buyer shall send to Seller a written notice (the “Initial Inspection Notice”) of Buyer’s rejection or preliminary acceptance of such Aircraft. Buyer may reject an Aircraft, if Buyer, in its sole discretion, determines that the Records for any of the Engines, the APU or the landing gear are not acceptable to Buyer; provided, however, that if the Records for the Engines, the APU and the landing gear are acceptable to the Buyer (in its sole discretion), Buyer may not reject such Aircraft if the Records relating to any other parts or components are in compliance with the rules and regulations of the FAA governing the Previous Operator. The Buyer has waived its right to inspect the Spares Package and the records relating to the Spares Package. If Buyer rejects one or more of the Aircraft pursuant to the Initial Inspection Notice, neither Buyer nor Seller shall have any further obligation to the other under this Agreement with respect to such Aircraft, provided, that, in the case of a rejection by Buyer of an Aircraft, Seller shall return the applicable Aircraft Deposit to Seller in accordance with Article 2 hereof. For the avoidance of doubt, Buyer’s rejection of one or more Aircraft shall not affect the rights of Buyer and Seller hereunder with respect to the other Aircraft which the Buyer accepts pursuant to the Initial Inspection Notice. Notwithstanding the immediately preceding sentence, in the event that Buyer does not execute Certificates of Technical Acceptance (defined below) on two or more Aircraft, Buyer shall have no further obligation to acquire the Spares Package from Seller. Notwithstanding the foregoing, as of the date hereof, Buyer has completed the Initial Inspection of Airframe 49165, Airframe 49183, A▇▇▇▇▇▇▇ ▇▇▇▇▇, Engine 709710, Engine 717900, Engine 708582 and Engine 708556 and will deliver the Initial Inspection Notice for Aircraft 49183 and Aircraft 49165 simultaneously herewith.