Common use of Substitute Engine Clause in Contracts

Substitute Engine. (a) Notwithstanding anything to the contrary in this Lease, Lessor will provide Lessee with a serviceable replacement engine (the “Substitute Engine”) in lieu of Lessee performing any Major Maintenance Event for an Engine hereunder, as follows: (i) during the Term, Lessee agrees to provide Lessor with ninety (90) days’ advance written notice (the “Removal Notice”) of any upcoming scheduled removal of any Engine due to such Engine requiring Engine Refurbishment, for reasons other than (A) faulty or improper maintenance or installation, (B) Lessee not adhering to Manufacturer’s recommendations, (C) operational mishandling, accident or other accidental cause, (D) an Event of Default, or (E) FOD (an “Unserviceability Issue”). (b) If Lessor provides a Substitute Engine in lieu of the affected original Engine (the “Original Engine”), Lessor shall within thirty (30) days of the Removal Notice notify the Lessee in writing of the same and provide all available information in respect of the proposed Substitute Engine to evidence the technical condition of such Substitute Engine (the “Substitute Engine Notice”). (c) Each Substitute Engine will: (i) be serviceable with no adverse trend and no on-watch items; (ii) have enough anticipated life remaining to be expected to remain on-wing until the earlier of (a) two (2) years from installation or (b) the Expiry Date (based on the average utilization for the prior 12 month period); (iii) have a remaining hot day takeoff EGT margin sufficient to permit the operation of such Engine on-wing until the earlier of (a) two (2) years from installation or (b) the Expiry Date (based on the average utilization for the prior 12-month period); (iv) not have suffered a stepped deterioration in performance since its last Engine Refurbishment such that such replacement engine would be expected to remain on-wing until the earlier of (a) two (2) years from installation or (b) the Expiry Date (based on the average utilization for the prior 12-month period); and ALA MSN 2851 – Global Crossing Airlines (v) otherwise meet the Engine related delivery requirements set forth in Schedule 1. (d) Provided the Substitute Engine meets the criteria set forth in subclause (c) (which may be verified by Lessee by reviewing the results of a completed up-to-date full video borescope and power assurance run of such engine), Lessee shall confirm to the same to Lessor in writing within fifteen (15) days of receipt of the Substitute Engine Notice and Lessor shall then, within thirty (30) days from the Substitute Engine Notice, make such Substitute Engine together with all available records available for final inspection by Lessee at the location where the Substitute Engine is to be installed on the Aircraft as notified by Lessee (the “Installation Location”). Lessee will complete its inspection (if any) of the Substitute Engine within five (5) days of the Substitute Engine’s arrival at the Installation Location. In the event the Substitute Engine meets the conditions set forth in subclause (c), Lessee shall sign a Delivery Certificate in respect of the Substitute Engine and it will therefrom become an “Engine” for all purposes of this Lease, and shall be subject to this Lease, any Mortgage and any Security Agreement. In the event the Substitute Engine does not meet the conditions in subclause (c) on Lessee’s inspection, then Lessee will return the Substitute Engine to a location designated by Lessor. All transportation costs for the Substitute Engine to and from (if the Substitute Engine is not accepted) the Installation Location will be borne by Lessor, and all installation costs for the Substitute Engine will be borne by Lessee. Lessee will have executed and delivered the Delivery Certificate for the Substitute Engine prior to installation. Upon removal of the Original Engine from the Aircraft, Lessee will transport the Original Engine to a location advised by Lessor, at Lessee’s risk, cost and expense. Upon arrival of the Engine at such location, and Lessor’s confirmation that no (A) faulty or improper maintenance or installation, (B) non-adherence to Manufacturer’s recommendations, (C) operational mishandling, accident or other accidental cause, or (E) FOD has occurred in respect of the Original Engine, Lessor will execute and deliver a Redelivery Certificate for such Original Engine and such Original Engine will cease being an “Engine”.

Substitute Engine. (a) Notwithstanding anything to the contrary in this Lease, Lessor will provide Lessee with a serviceable replacement engine (the “Substitute Engine”) in lieu of Lessee performing any Major Maintenance Event for an Engine hereunder, as follows: (i) during the Term, Lessee agrees to provide Lessor with ninety (90) days’ advance written notice (the “Removal Notice”) of any upcoming scheduled removal of any Engine due to such Engine requiring Engine Refurbishment, for reasons other than (A) faulty or improper maintenance or installation, (B) Lessee not adhering to Manufacturer’s recommendations, (C) operational mishandling, accident or other accidental cause, (D) an Event of Default, or (E) FOD (an “Unserviceability Issue”). (b) If Lessor provides a Substitute Engine in lieu of the affected original Engine (the “Original Engine”), Lessor shall within thirty (30) days of the Removal Notice notify the Lessee in writing of the same and provide all available information in respect of the proposed Substitute Engine to evidence the technical condition of such Substitute Engine (the “Substitute Engine Notice”). (c) Each Substitute Engine will: (i) be serviceable with no adverse trend and no on-watch items; (ii) have enough anticipated life remaining to be expected to remain on-wing until the earlier of (a) two (2) years from installation or (b) the Expiry Date (based on the average utilization for the prior 12 month period); (iii) have a remaining hot day takeoff EGT margin sufficient to permit the operation of such Engine on-wing until the earlier of (a) two (2) years from installation or (b) the Expiry Date (based on the average utilization for the prior 12-month period); (iv) not have suffered a stepped deterioration in performance since its last Engine Refurbishment such that such replacement engine would be expected to remain on-wing until the earlier of (a) two (2) years from installation or (b) the Expiry Date (based on the average utilization for the prior 12-month period); and ALA MSN 2851 2830 – Global Crossing Airlines (v) otherwise meet the Engine related delivery requirements set forth in Schedule 1. (d) Provided the Substitute Engine meets the criteria set forth in subclause (c) (which may be verified by Lessee by reviewing the results of a completed up-to-date full video borescope and power assurance run of such engine), Lessee shall confirm to the same to Lessor in writing within fifteen (15) days of receipt of the Substitute Engine Notice and Lessor shall then, within thirty (30) days from the Substitute Engine Notice, make such Substitute Engine together with all available records available for final inspection by Lessee at the location where the Substitute Engine is to be installed on the Aircraft as notified by Lessee (the “Installation Location”). Lessee will complete its inspection (if any) of the Substitute Engine within five (5) days of the Substitute Engine’s arrival at the Installation Location. In the event the Substitute Engine meets the conditions set forth in subclause (c), Lessee shall sign a Delivery Certificate in respect of the Substitute Engine and it will therefrom become an “Engine” for all purposes of this Lease, and shall be subject to this Lease, any Mortgage and any Security Agreement. In the event the Substitute Engine does not meet the conditions in subclause (c) on Lessee’s inspection, then Lessee will return the Substitute Engine to a location designated by Lessor. All transportation costs for the Substitute Engine to and from (if the Substitute Engine is not accepted) the Installation Location will be borne by Lessor, and all installation costs for the Substitute Engine will be borne by Lessee. Lessee will have executed and delivered the Delivery Certificate for the Substitute Engine prior to installation. Upon removal of the Original Engine from the Aircraft, Lessee will transport the Original Engine to a location advised by Lessor, at Lessee’s risk, cost and expense. Upon arrival of the Engine at such location, and Lessor’s confirmation that no (A) faulty or improper maintenance or installation, (B) non-adherence to Manufacturer’s recommendations, (C) operational mishandling, accident or other accidental cause, or (E) FOD has occurred in respect of the Original Engine, Lessor will execute and deliver a Redelivery Certificate for such Original Engine and such Original Engine will cease being an “Engine”.