Corrective Action Conditions and Limitations Sample Clauses

Corrective Action Conditions and Limitations. 5.1 If, with the intent of reducing Covered Maintenance Costs, Boeing or any supplier issues service bulletins, service letters or other written instructions or offers no-charge retrofit kits ("Correction"), Customer will comply with such instructions or install such kits within a period of 240 days after issuance of such instructions or receipt of such kits, at Customer's facility, or such longer period as may be mutually agreed by the parties. If Customer is otherwise required to complete the Correction and does not do so in accordance with requirements of this paragraph, all airframe maintenance costs which Boeing reasonably determines would have been eliminated if such Correction had been incorporated, will be subtracted from the Actual Maintenance Costs reported after expiration of such requirements. 5.2 Customer will promptly notify Boeing in writing of any variations in its maintenance cost accounting system or procedures which would have a materiel affect on Customer's reported Actual Maintenance Costs. Boeing will have the right to make adjustments to the Cumulative Average Target Maintenance Cost to reflect the effect of any such variations. 5.3 Upon reasonable notice to Customer, Boeing will have the right to audit all Actual Maintenance Costs reported by Customer, as well as the maintenance practices and procedures related thereto during the Program Term. Boeing will also have the right to disapprove costs it deems improperly reported. Boeing will provide Customer written notification of its disapproval of any such costs, and if Customer does not provide proof that such costs are properly chargeable within 60 days after such notification, Boeing's disapproval will be deemed final and conclusive and Boeing may deduct such costs from the computation of Actual Maintenance Costs.