Common use of Return Condition Clause in Contracts

Return Condition. Upon return (other than a return upon a Casualty Occurrence where provisions of Section 8 shall apply) and at Lessee's expense (or at Lessor's expense as specified in Section 6(a)), the Aircraft must satisfy all of the following conditions: (i) The Aircraft must be in an airworthy and serviceable condition, meet all of the applicable regulations of the FAA, and have a valid and continuing FAA certificate of airworthiness; (ii) The Aircraft must be returned with all equipment, parts, components, passenger service items and other accessories that were on or in the Aircraft when delivered to Lessee in a serviceable condition (ordinary wear and tear excepted) or with an equivalent or better replacement thereof; (iii) All exterior paint and interior components (including, without limitation, paint, carpet, fabric and wood paneling) must be in the same good appearance as when the Aircraft was delivered to Lessee (ordinary wear and tear excepted), and any Lessee identification or logo in or on the Aircraft shall have been removed by Lessee; (iv) The Aircraft must be returned with all and complete originals of the logs, manuals, certificates, data, inspection, modification and overhaul records that were on or in the Aircraft when delivered to Lessee or are required to be obtained and maintained by Lessee hereunder (or if originals are not available, then any consequences of or conditions to use of new logs and new maintenance records under FAA rules and regulations shall be observed or complied with), and all entries therein must be complete, correct and current, and in the case of any modifications made to, or supplemental type certificates incorporated in, the Aircraft, all engineering documents and drawings therefor must also be returned; (v) The Aircraft shall undergo a reasonable inspection or inspections or a flight test or tests, as required in Lessor's discretion, resulting in Lessor's determination that the Aircraft and all parts, components, systems and records comply with FAA standards at that date and meet all of the above conditions. If Lessee does not return the Aircraft in accordance with the above condition, (A) Lessor may make (or cause to be made) any repairs reasonably necessary to restore the Aircraft to the required condition, (B) Lessee shall reimburse Lessor, upon demand, for any costs, expenses and fees related to such restoration (including, without limitation, costs and expenses incurred as a result of actions pursuant to the parenthetical in clause (iv) above) and/or (C) Lessee shall compensate Lessor for the diminished value of the Aircraft resulting from Lessee's failure to return the Aircraft in such condition to Lessor's satisfaction. If the parties hereto cannot agree on the diminished value of the Aircraft mentioned in the preceding clause (C) above, said value shall be established by using the average of the diminished value determined by two appraisals (each party appointing one appraiser) if these are within five percent (5%) of each other; if not, a third appraisal shall be done (the appraiser being appointed by the two preceding appraisers) and the average of the two closest appraisals shall be used.

Return Condition. Upon return (other than a return upon a Casualty Occurrence where provisions of Section 8 shall apply) and at Lessee's expense (or at Lessor's expense as specified in Section 6(a))expense, the Aircraft must satisfy all of the following conditions: (i) The the Aircraft must be in an airworthy and serviceable condition, with all systems functional and operational, meet all of the applicable regulations of the FAA, and have a valid and continuing standard FAA certificate of airworthinessairworthiness and be current on the manufacturer's approved maintenance program with no outstanding or deferred items; (ii) The the Aircraft must be in compliance with all modifications, repairs and inspections required by all applicable Airworthiness Alerts, Airworthiness Directives, and recommended and mandatory Service Bulletins issued during the term of the Lease that are required to be performed according to Section 8 hereof. All such modifications, repairs and inspections shall have been performed by a factory service center or a service entity acceptable to Lessor; (iii) the Lessee acknowledges and agrees that upon return of the Aircraft, Lessor has the option of having the engines split, tested and/or borescoped by a Pratt & Whitney Canada authorized ▇▇▇▇▇ce ▇▇▇▇▇▇ in accordance with accepted practices to determine if any overtemping or other exceedence has occurred. Lessor agrees to pay for all such engine testing expenses. In the event any negligent overtemping or exceedence of tolerances is detected, the cost of any parts or components requiring replacement, including labor costs, shall be the responsibility of the Lessee; (iv) the Aircraft must be returned with all equipment, parts, components, passenger service items and other accessories that were on or in the Aircraft when delivered to Lessee in a serviceable condition (ordinary wear and tear excepted) or with an equivalent or better replacement thereof; (iiiv) All exterior paint and interior components (including, without limitation, paint, carpet, fabric and wood paneling) must be in the same good appearance as when the Aircraft was delivered to Lessee (ordinary wear and tear excepted), and any Lessee identification or logo in or on the Aircraft shall have been removed by Lessee; (iv) The Aircraft must be returned with all records and documents, including complete originals of the logs, manuals, certificates, data, inspection, modification and overhaul records that were on or in the Aircraft when delivered to Lessee or are required to be obtained and maintained by Lessee hereunder (or if logbooks. If originals are not available, then any consequences of or conditions to use of new logs and new maintenance records under FAA rules and regulations shall be observed or complied with), and all entries therein must be complete, correct and current, and in the case of any modifications made to, or supplemental type certificates certificate incorporated in, in the Aircraft, all engineering documents and drawings therefor must also be returned; (vvi) the Aircraft must be returned in the same condition as received, except for normal wear. For cosmetic purposes, the following shall not be considered normal wear: (a) stains in the interior that cannot be completely removed, (b) chipped wood or laminate, (c) torn seats, carpet, headliner or sidewalls, (d) scratched polarizers and (e) dents in the Aircraft fuselage, wing, tail or horizontal stabilizer; (vii) the Aircraft must be returned with the same quantity of fuel as when delivered. (viii) the Aircraft must be returned with a fresh 12 month inspection completed by an authorized Lear Jet service facility or by a ▇▇▇▇ice entity acceptable to Lessor within the last ten flight hours and within seven days of Lessee's last use of the Aircraft. Such inspection will include compliance with all discrepancies, squawks and malfunctions, or other irregularities repaired and the Aircraft returned to service by the maintenance facility. Lessee shall provide to Lessor a list of all discrepancies discovered in the 12 month inspection. (ix) Prior to return of the Aircraft, Lessor shall be entitled to an acceptance flight of not more than two hours duration at Lessor's expense. Lessor shall be entitled to have two (2) representatives on such flight in the capacity of observers. Any further airworthiness discrepancies discovered during such flight shall be promptly repaired or replaced at Lessee's sole expense prior to re-delivery to Lessor. (x) The Aircraft shall undergo a reasonable inspection or inspections or a flight test or tests, as required in Lessor's discretion, resulting in Lessor's determination that the Aircraft and be clean by corporate operating standards with all parts, components, systems and records comply with FAA standards at that date and meet all of the above conditions. If Lessee does not return the Aircraft in accordance with the above condition, (A) Lessor may make (or cause to be made) any repairs reasonably necessary to restore the Aircraft to the required condition, (B) Lessee shall reimburse Lessor, upon demand, for any costs, expenses and fees related to such restoration (including, without limitation, costs and expenses incurred as a result of actions pursuant to the parenthetical in clause (iv) above) and/or (C) Lessee shall compensate Lessor for the diminished value of the Aircraft resulting from Lessee's failure to return the Aircraft in such condition to Lessor's satisfaction. If the parties hereto cannot agree on the diminished value of the Aircraft mentioned in the preceding clause (C) above, said value shall be established by using the average of the diminished value determined by two appraisals (each party appointing one appraiser) if these are within five percent (5%) of each other; if not, a third appraisal shall be done (the appraiser being appointed by the two preceding appraisers) and the average of the two closest appraisals shall be usedLessees' markings removed.

Return Condition. 9.2.1 Upon return (other than a return upon a Casualty Occurrence an Event of Loss where provisions of Section 8 ARTICLE 7 shall apply) and at LesseeN2T's or Oakley’s expense (based on the party ultimately financially responsible for such item or at Lessor's expense as specified in Section 6(a)matter during the Term), the Aircraft must satisfy all of the following conditions: : (i) The Aircraft must be in an airworthy and serviceable condition, meet all of the applicable regulations of FARs, Airworthiness Directives issued after the FAADelivery Date [which require compliance during the Term] and manufacturer’s mandatory, recommended, alert or equivalent service bulletins, and have a valid and continuing FAA certificate of airworthiness; ; (ii) The the Aircraft must be returned with all equipment, parts, components, passenger service items and other accessories that were on or in the Aircraft when delivered to Lessee Oakley in a serviceable condition (ordinary wear and tear excepted) or with an equivalent or better replacement thereof; ; (iii) All all exterior paint and interior components (including, without limitation, paint, carpet, fabric and wood paneling) must be in the same good appearance as when the Aircraft was delivered to Lessee Oakley (ordinary wear and tear excepted), and any Lessee identification or logo in or on the Aircraft shall have been removed by Lessee; ; (iv) The the Aircraft must be returned with all and complete originals of the logs, manuals, certificates, data, inspection, modification and overhaul records that were on or in the Aircraft when delivered to Lessee Oakley or are required to be obtained and maintained by Lessee Oakley hereunder (or if originals are not available, then any consequences of or conditions to use of new logs and new maintenance records under FAA rules and regulations shall be observed or complied with), and all entries therein must be complete, correct correct, and current, and in the case of any modifications made to, or supplemental type certificates incorporated in, the Aircraft, all engineering documents and drawings therefor must also be returned; ; (v) The the Aircraft shall undergo a reasonable inspection or inspections or a flight test or tests, as required in Lessor's discretionN2T’s discretion (which shall not include a borescope inspection of any Engine), resulting in Lessor's N2T’s determination that the Aircraft and all parts, components, systems and records comply with FAA standards at that date and meet all of the above conditions. ; (vi) the Aircraft shall be free and clear of all liens (other than liens created by, or resulting from the actions or inactions of, N2T). 9.2.2 If Lessee Oakley does not return the Aircraft in accordance with the above conditioncondition by reason of a failure to fulfill any obligation required to be fulfilled at Oakley's expense (but counting only expenses for which Oakley does not have a right of reimbursement by N2T), (AX) Lessor N2T may make (or cause to be made) any repairs reasonably reasonable necessary to restore the Aircraft to the required condition, (BY) Lessee Oakley shall reimburse LessorN2T, upon demand, for any costs, expenses and fees related to such restoration (including, without limitation, costs and expenses incurred as a result of actions pursuant to the parenthetical in clause Section 9.2.1 (iv) above) ); and/or (CZ) Lessee Oakley shall compensate Lessor N2T for the diminished value of the Aircraft resulting from Lessee's Oakley’s failure to return the Aircraft in such condition to Lessor's N2T’s satisfaction. Should Oakley fail to immediately reimburse N2T for such costs, then that failure shall be deemed to be an Event of Default under this Lease. 9.2.3 If the parties hereto cannot agree on the diminished value of the Aircraft mentioned in the preceding clause (CSection 9.2.2(Z) above, said value shall be established by using the average of the diminished value determined by two appraisals (each party appointing one appraiser) if these are within five percent Five Percent (5%) of each other; if not, a third appraisal shall be done (the appraiser being appointed by the two preceding appraisers) and the average of the two closest appraisals shall be used.