Common use of Engines Clause in Contracts

Engines. Each Engine will be installed on the Aircraft and will comply with the following: (a) Each Engine (i) shall have been maintained in accordance with the Lessee's Maintenance Program; (ii) shall be in compliance with all mandatory service bulletins and ADs affecting such Engine and having a final compliance or termination date during the Term (without regard to any deferrals that may be granted); (iii) shall be free and clear of all Liens arising by act or omission of, or suffered to exist by, Lessee; and (iv) shall contain the same Parts (or substitutes or replacements therefor, as provided in the Aircraft Lease Agree ment) as initially delivered to Lessee. (b) If, at the end of the Term, the Engines are subject to an "Engine Maintenance Agreement" (as defined by the Aircraft Lease Agree ment), and such Engine Maintenance Agreement has been effectively assigned to Lessor, Lessee shall return each Engine in such condition as shall make such Engine eligible for continued maintenance under the Engine Maintenance Agreement. If, at the end of the Term, the Engines are not subject to an Engine Maintenance Agreement (or such Agreement has not been effectively assigned to Lessor): (i) each of the Engines (pursuant to Lessee's Maintenance Program) shall have a minimum of half-time until the next scheduled overhaul, based on the Engine Manufacturer's published data over the immediately prior 12 months; (ii) any mandatory service bulletins or ADs that have been deferred shall be incorporated before the Return, (iii) no Engine shall be "on watch;" and each Engine shall perform within the Engine Manufacturer's recommended operating limitations. To the extent that, at the end of the Term, any of the life limited parts of the Engines are not covered by an Engine Maintenance Agreement (which has been assigned to Lessor), such life limited parts shall have a remaining life of at least 2,500 Cycles. (c) Prior to the Return Date (unless an Engine Maintenance Agreement is in effect), a borescope of each Engine shall be conducted by a qualified technician acceptable to Lessor, at Lessor's expense and in the presence of Lessor's designated technical representative. Any defects discovered in each such inspection which exceed the Engine Manufacturer's in-service limits shall be corrected by Lessee, prior to Return of the Aircraft, at no cost to Lessor.

Engines. (a) Each Engine (or a Replacement Engine as and to the extent permitted by Section 1.2(b)) will be installed on the Aircraft and will comply with the following: If the Aircraft Lease Agreement specifies Minimum Engine Flight Hours and/or Minimum Engine Cycles and/or Minimum Engine LLP Cycles, each Engine will have not less than the Minimum Engine Flight Hours and Minimum Engine Cycles expected life remaining to the next expected removal and the life limited Parts shall have not less than the Minimum Engine LLP Cycles release life remaining. The expected life remaining will be determined by the inspection and checks accomplished by Lessor in accordance with the Lease which shall include the following: (a) Each Engine (i) full borescope inspection; (ii) analysis of trend data; (iii) sea level outside air temperature limit assessment if recommended by the Manufacturer as an appropriate means to determine engine condition (e.g., CFM 56 test CESM 15); (iv) maximum power assurance ground runs; (v) technical log analysis for a minimum of the previous three (3) months' of operation; (vi) previous shop visit assessment (if applicable); and (vii) reference to the manufacturer's maintenance manual; (b) Following the demonstration flight provided for by Section 1.1(d) of this Schedule 6 each Engine shall have been maintained just accomplished at the Redelivery Location a complete video borescope inspection of all Engine gas path modules, which inspection shall be performed at Lessor's expense, and a power assurance run performed at Lessee's expense in accordance with the Lessee's Maintenance Program; (ii) shall be in compliance with all mandatory service bulletins and ADs affecting such Engine and having a final compliance Program or termination date during the Term (without regard to any deferrals that may be granted); (iii) shall be free and clear of all Liens arising by act or omission of, or suffered to exist by, Lessee; and (iv) shall contain the same Parts (or substitutes or replacements therefor, as provided in the Aircraft Lease Agree ment) as initially delivered to Lessee. (b) If, at the end of the Term, the Engines are subject to an "Engine Maintenance Agreement" (as defined by the Aircraft Lease Agree ment), and such Engine Maintenance Agreement has been effectively assigned to Lessor, Lessee shall return each Engine in such condition as shall make such Engine eligible for continued maintenance under the Engine Maintenance Agreement. If, at the end of the Term, the Engines are not subject to an Engine Maintenance Agreement (or such Agreement has not been effectively assigned to Lessor): (i) each of the Engines (pursuant to Lessee's Maintenance Program) shall have a minimum of half-time until the next scheduled overhaul, based on the Engine Manufacturer's published data over the immediately prior 12 months; (ii) maintenance manual and any mandatory service bulletins or ADs that have been deferred shall be incorporated before the Return, (iii) no Engine shall be "on watch;" and each Engine shall perform within the Engine Manufacturer's recommended operating limitations. To the extent that, at the end of the Term, any of the life limited parts of the Engines are not covered by an Engine Maintenance Agreement (which has been assigned to Lessor), such life limited parts shall have a remaining life of at least 2,500 Cycles. (c) Prior to the Return Date (unless an Engine Maintenance Agreement is in effect), a borescope of each Engine shall be conducted by a qualified technician acceptable to Lessor, at Lessor's expense and in the presence of Lessor's designated technical representative. Any defects discovered in each such inspection inspections which exceed the Engine Manufacturermanufacturer's in-service limits shall be corrected at Lessee's expense. Lessee shall cause such borescope inspections to be performed and to be recorded on videotape by Lesseean agency selected by Lessor and shall provide Lessor with a copy of such videotape on the Return Occasion. No Engine shall be on "watch" for any reason requiring any special or out of sequence inspection. Each such Engine shall comply with the operations specification of Lessee without waiver or exceptions. All items beyond the Engine manufacturer's in-service limits shall be repaired; (c) If the Aircraft Lease Agreement specifies Minimum Engine LLP Cycles, prior each Engine Life-Limited Part will have not less than the Minimum Engine LLP Cycles remaining in accordance with the manufacturer's then current limitations for the part number in question, and will be supported by certification documentation necessary to Return demonstrate Back-to-Birth Traceability; for this purpose "Life Limited Part" means a component with an ultimate life which cannot be restored through appropriate maintenance approved by the State of Design of the Aircraftmanufacturer and "Back-to-Birth Traceability" means certified documentation necessary to identify precisely where, at no cost when and with which aircraft operator the expired life and previous maintenance in relation to Lessor.the Life Limited Part occurred since such Engine Life-Limited Part was new;

Engines. Each In the event that any Engine will be installed on does not meet the Aircraft and will comply with the following: conditions set forth in Section II (ab) Each Engine (i) above, for each such Engine Lessee shall have been maintained pay Lessor an amount equal to the sum of (i) the current estimated cost of the next scheduled "hot section" inspection (including in accordance with such estimated cost, all required replacements of life limited parts) multiplied by the Lessee's Maintenance Program; fraction wherein the numerator shall be the greater of (A) zero and (B) the remainder of (x) the actual number of operating hours since the previous hot section inspection, minus (y) 50% of the total operating hours allowable between hot section inspections, and the denominator shall be the total operating hours allowable between hot section inspections, plus (ii) for each such Engine, the product of the current estimated cost of the next scheduled major overhaul (including in such estimated cost, all required replacements of life limited parts) multiplied by the fraction wherein the numerator shall be in compliance the greater of (A) zero and (B) the remainder of (x) the actual number of hours of operation since the previous major overhaul minus (y) 50% of the total operating hours allowable between major overhauls, and the denominator shall be the total operating hours allowable between major overhauls. Notwithstanding the foregoing, the requirements of Section II (b)(i) above and the final sentence of Section II (b) above (but solely with all mandatory service bulletins and ADs affecting such Engine and having a final compliance or termination date during respect to the Term (without regard to any deferrals that may be granted); (iiiEngines) shall be free and clear of all Liens arising by act or omission of, or suffered deemed to exist by, Lessee; and (iv) shall contain the same Parts (or substitutes or replacements therefor, as provided in the Aircraft Lease Agree ment) as initially delivered to Lessee. (b) If, have been satisfied if at the end time of the Term, the Engines are subject to an "Engine Maintenance Agreement" (as defined by the Aircraft Lease Agree ment), and such Engine Maintenance Agreement has been effectively assigned to Lessor, Lessee shall return each Engine in such condition as shall make such Engine eligible for continued maintenance under the Engine Maintenance Agreement. If, at the end of the Term, the Engines are not subject to an Engine Maintenance Agreement (or such Agreement has not been effectively assigned to Lessor): (i) each of the Engines (x) the Engines being returned to Lessor shall be covered by a service and maintenance contract in form and substance satisfactory to Lessor which provides for the maintenance and/or overhaul of the Engines ("Maintenance Contract"), (y) either (i) adequate reserves for future required maintenance and/or overhaul shall have been provided for pursuant to Lessee's such Maintenance Program) shall have a minimum of half-time until the next scheduled overhaul, based on the Engine Manufacturer's published data over the immediately prior 12 months; Contract or (ii) any mandatory service bulletins or ADs that all amounts due and payable pursuant to such Maintenance Contract shall have been deferred paid in full through the date of return and (z) the entity which provides the maintenance and/or overhaul services under such Maintenance shall be incorporated before either (i) recognize the Return, (iii) no Engine shall be "on watch;" and each Engine shall perform within the Engine Manufacturer's recommended operating limitations. To the extent that, at the end transfer by Lessee to Lessor of the Term, any rights and interests of Lessor (or its designee) under such Maintenance Contract or (ii) acknowledge the life limited parts rights and interests of the Engines are not covered by an Engine Lessor (or its designee) under such Maintenance Agreement (which has been assigned to Lessor), such life limited parts shall have a remaining life of at least 2,500 CyclesContract. (c) Prior to the Return Date (unless an Engine Maintenance Agreement is in effect), a borescope of each Engine shall be conducted by a qualified technician acceptable to Lessor, at Lessor's expense and in the presence of Lessor's designated technical representative. Any defects discovered in each such inspection which exceed the Engine Manufacturer's in-service limits shall be corrected by Lessee, prior to Return of the Aircraft, at no cost to Lessor.

Engines. Each Engine will In the event any engine not owned by Lessor shall be installed on the Aircraft and will comply returned with the following: (a) Each Engine an Airframe in lieu of an Engine: (i) if the reason therefor is other than that an Event of Loss has occurred to such Engine, such engine shall be satisfactory to Lessor, in its reasonable discretion, free and clear of Liens, suitable for use on such Airframe and shall have a value and utility at least equal to, be in as good operating condition, and meet the return conditions provided herein (including the incorporation of all airworthiness directives and alert service bulletins which Lessee is required to effect under this Lease, and equivalent modification status, service bulletins status, and overall condition, and no greater number of accumulated flight hours, cycles, and time since last complete engine refurbishment, as the Engine that should have been maintained returned, assuming such Engine which should have been returned was in accordance with the Lessee's Maintenance Programcondition and repair as required by the terms hereof immediately prior to such required return); and (ii) shall be in compliance with all mandatory service bulletins and ADs affecting if the reason therefor is that an Event of Loss has occurred to such Engine and having a final compliance or termination date during the Term (without regard to any deferrals that may be granted); (iii) Engine, such engine shall be free and clear of Liens, suitable for use on such Airframe and shall have a value and utility at least equal to, be in as good operating condition, and meet the return conditions provided herein (including the incorporation of all Liens arising by act or omission ofairworthiness directives and alert service bulletins which Lessee is required to effect under this Lease, or suffered to exist byand equivalent modification status, Lessee; service bulletins status, and (iv) shall contain the same Parts (or substitutes or replacements thereforoverall condition, and no greater number of accumulated flight hours, cycles, and time since last complete engine refurbishment, as provided the Engine that should have been returned, assuming such Engine which should have been returned was in the Aircraft Lease Agree ment) condition and repair as initially delivered required by terms hereof immediately prior to Lessee. (b) Ifsuch required return); and, in either case, Lessee shall, at the end its own expense and concurrently with such delivery, furnish Lessor with a xxxx of the Termsale, the Engines are subject to an "Engine Maintenance Agreement" (as defined by the Aircraft Lease Agree ment), in form and such Engine Maintenance Agreement has been effectively assigned substance reasonably satisfactory to Lessor, Lessee shall return for each Engine such engine and with evidence of Lessee’s title to such engine (including, if requested, an opinion of Lessee’s counsel) and take such other action as Lessor may reasonably request in order that title to such condition as shall make such Engine eligible for continued maintenance under the Engine Maintenance Agreement. If, at the end of the Term, the Engines are not subject to an Engine Maintenance Agreement (or such Agreement has not been effectively assigned to Lessor): (i) each of the Engines (pursuant to Lessee's Maintenance Program) shall have a minimum of half-time until the next scheduled overhaul, based on the Engine Manufacturer's published data over the immediately prior 12 months; (ii) any mandatory service bulletins or ADs that have been deferred engine shall be incorporated before the Return, (iii) no Engine shall be "on watch;" duly and each Engine shall perform within the Engine Manufacturer's recommended operating limitationsproperly vested in Lessor. To the extent that, at the end Upon full compliance with this Section 5 and passage of the Term, any of the life limited parts of the Engines are not covered by an Engine Maintenance Agreement (which has been assigned title to Lessor), such life limited parts shall have a remaining life of at least 2,500 Cycles. (c) Prior to the Return Date (unless an Engine Maintenance Agreement is in effect), a borescope of each Engine shall be conducted by a qualified technician acceptable engine to Lessor, at Lessor's expense and in the presence of Lessor's designated technical representative. Any defects discovered in each such inspection which exceed the Engine Manufacturer's in-service limits engine shall be corrected by Lesseean Engine for all purposes of this Lease and Lessor shall transfer, prior or cause to Return be transferred, to Lessee all Lessor’s right, title and interest in an Engine constituting part of the AircraftAircraft so returned but not installed on such Aircraft at the time of such return, at no cost without any representation, warranty or recourse of any kind whatsoever, express or implied, except a warranty that such Engine is free and clear of Liens which result from the Lessor’s own acts or omissions or from claims against the Lessor not to Lessorbe paid or indemnified against by the Lessee hereunder or not related to the transaction contemplated by this Lease.

Engines. Each In the event that any Engine will be installed on does not meet the Aircraft and will comply with the following: conditions set forth in Section II (ab) Each Engine (i) above, for each such Engine Lessee shall have been maintained pay Lessor an amount equal to the sum of (i) the current estimated cost of the next scheduled “hot section” inspection (including in accordance with such estimated cost, all required replacements of life limited parts) multiplied by the Lessee's Maintenance Program; fraction wherein the numerator shall be the greater of (A) zero and (B) the remainder of (x) the actual number of operating hours since the previous hot section inspection, minus (y) 50% of the total operating hours allowable between hot section inspections, and the denominator shall be the total operating hours allowable between hot section inspections, plus (ii) for each such Engine, the product of the current estimated cost of the next scheduled major overhaul (including in such estimated cost, all required replacements of life limited parts) multiplied by the fraction wherein the numerator shall be in compliance the greater of (A) zero and (B) the remainder of (x) the actual number of hours of operation since the previous major overhaul minus (y) 50% of the total operating hours allowable between major overhauls, and the denominator shall be the total operating hours allowable between major overhauls. Notwithstanding the foregoing, the requirements of Section II (b)(i) above and the final sentence of Section II (b) above (but solely with all mandatory service bulletins and ADs affecting such Engine and having a final compliance or termination date during respect to the Term (without regard to any deferrals that may be granted); (iiiEngines) shall be free and clear of all Liens arising by act or omission of, or suffered deemed to exist by, Lessee; and (iv) shall contain the same Parts (or substitutes or replacements therefor, as provided in the Aircraft Lease Agree ment) as initially delivered to Lessee. (b) If, have been satisfied if at the end time of the Term, the Engines are subject to an "Engine Maintenance Agreement" (as defined by the Aircraft Lease Agree ment), and such Engine Maintenance Agreement has been effectively assigned to Lessor, Lessee shall return each Engine in such condition as shall make such Engine eligible for continued maintenance under the Engine Maintenance Agreement. If, at the end of the Term, the Engines are not subject to an Engine Maintenance Agreement (or such Agreement has not been effectively assigned to Lessor): (i) each of the Engines (x) the Engines being returned to Lessor shall be covered by a service and maintenance contract in form and substance satisfactory to Lessor which provides for the maintenance and/or overhaul of the Engines (“Maintenance Contract”), (y) either (i) adequate reserves for future required maintenance and/or overhaul shall have been provided for pursuant to Lessee's such Maintenance Program) shall have a minimum of half-time until the next scheduled overhaul, based on the Engine Manufacturer's published data over the immediately prior 12 months; Contract or (ii) any mandatory service bulletins or ADs that all amounts due and payable pursuant to such Maintenance Contract shall have been deferred paid in full through the date of return and (z) the entity which provides the maintenance and/or overhaul services under such Maintenance shall be incorporated before either (i) recognize the Return, (iii) no Engine shall be "on watch;" and each Engine shall perform within the Engine Manufacturer's recommended operating limitations. To the extent that, at the end transfer by Lessee to Lessor of the Term, any rights and interests of Lessor (or its designee) under such Maintenance Contract or (ii) acknowledge the life limited parts rights and interests of the Engines are not covered by an Engine Lessor (or its designee) under such Maintenance Agreement (which has been assigned to Lessor), such life limited parts shall have a remaining life of at least 2,500 CyclesContract. (c) Prior to the Return Date (unless an Engine Maintenance Agreement is in effect), a borescope of each Engine shall be conducted by a qualified technician acceptable to Lessor, at Lessor's expense and in the presence of Lessor's designated technical representative. Any defects discovered in each such inspection which exceed the Engine Manufacturer's in-service limits shall be corrected by Lessee, prior to Return of the Aircraft, at no cost to Lessor.

Engines. Each Engine will be installed on the Aircraft and will comply with the followingbe accompanied by all documentation Lessor may require to evidence that title thereto is properly vested in Lessor and: (a) Each Engine (i) shall and each life limited part within each Engine will have been maintained in accordance with no less than 50% of the Lessee's Maintenance Program; (ii) shall be in compliance with all mandatory service bulletins and ADs affecting hours or cycles remaining until the next scheduled life limited part replacement as such Engine and having a final compliance or termination date during the Term (without regard to any deferrals that may be granted); (iii) shall be free and clear of all Liens arising by act or omission of, or suffered to exist by, Lessee; and (iv) shall contain the same Parts (or substitutes or replacements therefor, as provided in the Aircraft Lease Agree ment) as initially delivered to Lesseepart had on delivery. (b) IfEach Engine will, at the end of the TermLessor's option and expense, the Engines are subject to an "Engine Maintenance Agreement" have had a complete hot (as defined by the Aircraft Lease Agree ment)including combustion chamber) and cold section video boroscope inspection, and such Engine Maintenance Agreement has been effectively assigned to Lessor, Lessee shall return each Engine a power assurance run in such condition as shall make such Engine eligible for continued maintenance under accordance with the Engine Maintenance Agreement. If, manufacturer's maintenance manual and all items beyond such manufacturer's limits will be repaired at the end of the Term, the Engines are not subject to an Engine Maintenance Agreement (or such Agreement has not been effectively assigned to Lessor): (i) each of the Engines (pursuant to Lessee's Maintenance Program) shall have a minimum of half-time until the next scheduled overhaul, based on the expense. No Engine Manufacturer's published data over the immediately prior 12 months; (ii) any mandatory service bulletins or ADs that have been deferred shall be incorporated before the Return, (iii) no Engine shall will be "on watch;" for any reason requiring any special or out of sequence inspection. (a) above, if Lessee wishes to redeliver an Engine to Lessor with less life so remaining, Lessee shall give written notice to Lessor no later than sixty (60) days prior to the Expiration Date, and: (i) Lessor may, at its sole option, accept or reject such nonconforming delivery by requiring Lessee to perform a premature Hot Section Refurbishment Inspection and each Engine shall perform within shop visit and utilize the Engine ManufacturerMaintenance Reserves (if such work qualifies for contribution by Lessor pursuant to Section 7.2) held by Lessor under the Lease; or (ii) At Lessee's recommended operating limitations. To the extent thatsole option, at the end of the Termif Lessor agrees to accept such nonconforming redelivery, any of the life limited parts Lessor shall accept redelivery of the Engines are not covered by in such condition with an Engine additional payment (in addition to Maintenance Agreement (which has been assigned to LessorReserves otherwise payable per Engine), such life limited parts shall have a remaining life of at least 2,500 Cycles. (c) Prior to the Return Date (unless an Engine Maintenance Agreement is in effect), a borescope of each Engine shall be conducted by a qualified technician acceptable to Lessor, at Lessor's expense and in the presence of Lessor's designated technical representative. Any defects discovered in each such inspection which exceed the Engine Manufacturer's in-service limits shall be corrected by Lessee, prior to Return of the Aircraft, at no cost to Lessor.

Engines. Each Engine will be installed on the Aircraft and will comply with the followingwill: (a) Each have not less than the Minimum Engine (i) Flight Hours life remaining to the next expected removal and each of the LLPs shall have been maintained not less than the Minimum Engine Cycles release life remaining. The expected life remaining will be determined by the inspection and checks accomplished by Lessor in accordance with the Lease; (b) be free of all Security Interests, other than Security Interests granted by Lessor; (c) have undergone the inspections as set forth in Section 1.1(b) and (c) herein. If any inspection procedure identifies any Engine defect(s), Lessee will immediately notify Lessor in writing, correct such defect(s) at Lessee's ’s cost and provide evidence satisfactory to Lessor that defects have been corrected in accordance with the EMM and the Maintenance Program; ; (d) be prepared for shipment by (i) capping and plugging all openings, (ii) shall preserving the Engine for 90 days or more storage and (iii) otherwise preparing the Engine for shipment in accordance with Manufacturer’s recommendations; (e) be zero time since the last complete hot and cold section video borescope inspection in accordance with Manufacturer’s and the Related Airframe manufacturer’s maintenance manual and will be in compliance with all mandatory service bulletins requirements of the EMM, Lessee’s operations specifications, and ADs affecting such Engine the requirements and having a final compliance or termination date during recommendations of the Term Air Authority; (without regard f) together with installed components, not be subject to any deferrals reduced frequency inspections in comparison to the Related Airframe manufacturer’s maintenance manual limits; (g) immediately prior to redelivery, will have the required EGT Margin. In addition, the EGT Margin shall be sufficient, and the Engine shall otherwise be in a condition, to permit the operation of the Engine for at least the Minimum Engine Flight Hours and the Minimum Engine Cycles until its next expected Engine Refurbishment. The Engine shall have performance characteristics consistent with engines of a similar manufacturer, made, model, thrust, age and time since performance restoration and, if (i) fresh from an Engine Refurbishment, be zero time since a full parameter test cell run which will demonstrate, including at full take-off power, performance characteristics consistent with Lessee’s approved Related Airframe operating requirements, or (ii) the Engine has been removed from an aircraft immediately prior to redelivery, will have performed a full parameter test cell run or on-wing maximum power assurance run, at Lessor’s election, demonstrating maximum permitted power take-off performance as per Lessee’s Related Airframe operating requirement. In all cases, the engine condition monitoring (ECM) data will be available for Lessor’s review, will cover periods of installation sufficient to have initialized a baseline on the trend plot and will exhibit no abnormal trends or acceleration in the deterioration of the performance of the Engine; (h) Lessee will bear all costs of packaging, including the provision of an engine shipping stand, transportation, including the return of the engine stand to Lessee (if applicable), insurance duties, taxes and other costs associated with the return of the Engine, Delivered Duty Paid (Incoterms 2000) to the Redelivery Location. Any vehicles and trailers used for shipment of the Engine shall be air ride equipped. On a given shipment, such vehicle shall be dedicated to the Engine belonging solely to Lessor; except, that (i) the Engine or other related equipment may be granted); (iii) shall be free and clear off-loaded at the Redelivery Location without disturbing any of all Liens arising by act or omission of, or suffered to exist by, Lesseethe additional items included in such shipment; and (ivii) Lessee shall contain the same Parts (not handle or substitutes or replacements therefor, as provided in the Aircraft Lease Agree ment) as initially delivered to Lessee. (b) If, at the end reposition any of the Term, the Engines are subject to an "Engine Maintenance Agreement" (as defined by the Aircraft Lease Agree ment), and such Engine Maintenance Agreement has been effectively assigned to Lessor, Lessee shall return each Engine additional items included in such condition as shall make shipment on such Engine eligible for continued maintenance under the Engine Maintenance Agreement. If, at the end of the Term, the Engines are not subject to an Engine Maintenance Agreement (or such Agreement has not been effectively assigned to Lessor): vehicle; (i) have no defect which places less than the Engine Flight Hours Restriction and the Engine Cycles Restriction of remaining life, each including in respect of the Engines (LLPs, pursuant to Lessee's Maintenance Program) shall have a minimum of half-time Manufacturer’s or Air Authority’s requirements until the next scheduled overhaul, based on the Engine Manufacturer's published data over the immediately prior 12 months; (ii) any mandatory service bulletins or ADs that have been deferred shall be incorporated before the Return, (iii) no Engine shall be "on watch;" and each Engine shall perform within the Engine Manufacturer's recommended operating limitations. To the extent that, at the end of the Term, any of the life limited parts of the Engines are not covered by an Engine Maintenance Agreement (which has been assigned to Lessor), such life limited parts shall have a remaining life of at least 2,500 Cyclesremoval. (c) Prior to the Return Date (unless an Engine Maintenance Agreement is in effect), a borescope of each Engine shall be conducted by a qualified technician acceptable to Lessor, at Lessor's expense and in the presence of Lessor's designated technical representative. Any defects discovered in each such inspection which exceed the Engine Manufacturer's in-service limits shall be corrected by Lessee, prior to Return of the Aircraft, at no cost to Lessor.