Common use of Separate Books and Records Clause in Contracts

Separate Books and Records. Contractor shall maintain separate books and records for the provision of Regional Airlines Services, on the one hand, and Contractor's other operations (if any) on the other, in each case in the aggregate, and shall include a reasonable allocation of expenses, including overhead, among such aircraft such that aircraft-specific costs are assigned among Covered Aircraft and Uncovered Aircraft based on the specific aircraft type that generated such cost and all other costs are allocated proportionately based on block hours flown; provided that in the event that engine maintenance or other costs arising under the Flight Hour Agreement change pursuant to the terms thereof as a result of the inclusion of Uncovered Aircraft under such agreement (including because of the stage length or other utilization characteristics of the Uncovered Aircraft), then the engine maintenance and other costs arising under the Flight Hour Agreement shall be allocated to the Covered Aircraft as if such Uncovered Aircraft had not been included under such agreement, regardless of whether such allocation results in higher or lower costs being allocated to the Covered Aircraft. Contractor's books and records that relate to the provision of Regional Airlines Services shall be maintained in accordance with generally accepted accounting principles consistently applied, and such books and records and all calculations made pursuant to this Agreement shall be kept and made in accordance with the accounting policies and procedures used by Continental and Contractor to develop Block Hour Rates, unless otherwise agreed in writing by Continental. Without limiting the foregoing in any respect, Contractor agrees that it shall not depreciate Turboprop Aircraft or Excess Inventory from and after the date hereof more slowly than it has historically depreciated such items, unless otherwise agreed in writing by Continental.