Compensation for Lower Block Hours Scheduled per Covered Aircraft. If, for any calendar quarter, (A) the product of (x) the number of days in such calendar quarter, multiplied by (y) *** per day, multiplied by (z) the weighted average number of Covered Aircraft, available each day for such calendar quarter (determined as provided below) exceeds (B) the number of scheduled block hours for all Scheduled Flights during such calendar quarter, then within 60 days after the end of such calendar quarter Continental shall pay to Contractor an amount equal to the product of such excess number of hours multiplied by the appropriate rate, determined as set forth in the immediately succeeding sentence; provided, that no payment shall be made for any calendar quarter in which (x) a Labor Strike shall have occurred or (y) Continental reduced the number of scheduled block hours in connection with or in response to Contractor’s failure to remain in material compliance with its obligations arising under this Agreement or any Ancillary Agreement, or otherwise as a result of a material event outside of Continental’s reasonable control (including without limitation grounding of Covered Aircraft, the imposition of flight caps or other material regulatory action involving Covered Aircraft and/or airports serviced or to be serviced by Covered Aircraft). The appropriate rate to be used for purposes of payment calculation as set forth above shall be determined by using the rate set forth on Appendix 6 to Schedule 3 for the applicable quarter (I) under the column corresponding to the number of consecutive quarters in which the amount described in clause (A) above exceeds the amount described in clause (B) above, and (II) in the row corresponding to the “Scheduled Utilization”, which shall be calculated by taking the block hours referenced in clause (B) above divided by the product of (x) the weighted average number of Covered Aircraft available each day for such calendar quarter (determined as provided below) multiplied by (y) the number of days during such quarter. For example, if the amount described in clause (A) above exceeds the amount described in clause (B) above for three consecutive quarters and the Scheduled Utilization was *** for the third such quarter, then the rate for such third quarter pursuant to this Paragraph B(4) would be $*** for each block hour that the amount described in clause (A) above exceeds the amount described in clause (B) above. The weighted average number of Covered Aircraft available each day for such calendar qua...
