Lessee’s Covenants Regarding Use of the Aircraft Sample Clauses

Lessee’s Covenants Regarding Use of the Aircraft. Lessee covenants to Lessor that it will procure that (x) in each calendar year that begins and ends during the Lease Term and (y) in the case of the calendar year that includes the Delivery Date, during the part of such calendar year that begins on the Delivery Date and (z) in the case of the calendar year that includes the Termination Date, during the part of such calendar year that ends on the Termination Date: (a) either: (i) the Aircraft will be located outside the U.S.A. and outside Puerto Rico (in each case including the territorial sea extending two hundred (200) nautical miles from the coast thereof) more than fifty percent (50%) of the time, or (ii) more than fifty percent (50%) of the miles traversed in the use of the Aircraft will be outside the U.S.A. and outside Puerto Rico (in each case including the territorial sea extending two hundred (200) nautical miles from the coast thereof), provided that the Aircraft will be deemed to be in the U.S.A. at all times during which it is engaged in transport between the U.S.A. and Puerto Rico or between two points in the U.S.A. or between two points in Puerto Rico; and (b) either: (i) the Aircraft will be located outside Canada (including the territorial sea extending two hundred (200) nautical miles from the coast thereof) more than fifty per cent (50%) of the time, or (ii) more than fifty per cent (50%) of the miles traversed in the use of the Aircraft will be traversed outside Canada (including the territorial sea extending two hundred (200) nautical miles from the coast thereof); and (c) the Aircraft will not be used, pursuant to any sublease, wet lease, charter, or otherwise, by any Person that: (i) has a State of Organisation in or whose State of Organisation is (A) Canada or (B) Puerto Rico or the U.S.A., or (ii) is resident or principally based in (A) Canada or (B) Puerto Rico or the U.S.A., or (iii) has any right under any sublease, wet lease, charter or other agreement to use (or to permit or suffer any other Person to use) the Aircraft or any part thereof in a manner which is reasonably likely to result in a breach of any covenant of Lessee in this Section 11.6, except that the Aircraft may be wet leased to a Person described in subclause (i)(B) or (ii)(B) provided that such Person will not have the right to use the Aircraft for more than a total of ninety (90) days in any calendar year, and Lessee provides Lessor written notice of such wet lease within ten (10) days after the date on which suc...

Lessee’s Covenants Regarding Use of the Aircraft. The following is added as Section 11.6 to the Lease: (a) Capitalized terms defined in Section 11.6(g) are used in this Section 11.6 as so defined. (b) Lessee covenants to Lessor that during the term of this Lease (i) the Aircraft will be operated “to and from the United States” (within the meaning of Section 168(g)(4)(A) of the Internal Revenue Code of 1986, as amended (the “Code”)) or within the United States, (ii) neither the Aircraft nor any Engine will be “leased to a tax-exempt entity” (within the meaning of Section 168(h) of the Code), and (iii) no Engine will be “used predominantly outside the United States” within the meaning of Section 168(g)(1)(A) of the Code while it is not attached to the Airframe. (c) Lessee further agrees to indemnify Lessor on an After-Tax Basis for any and all losses, reductions or deferrals of the Assumed MACRS Deductions arising from a breach of Lessee’s covenant in Section 11.6(b) or any of Lessee’s agreements in Section 21.2(b) (each, an “MACRS Loss”). (d) If Lessee pays an indemnity to Lessor on an After-Tax Basis pursuant to this Sections 11.6 with respect to any MACRS Loss and if Lessor determines that it has received a net cash benefit exceeding one Dollar ($1.00) due to any Tax Saving, then Lessor shall pay to Lessee an amount equal to such net cash benefit, provided that Lessor shall have no obligation to pay any amount to Lessee under this Section 11.6(d) while an Event of Default is continuing or to the extent that the cumulative amount payable by Lessor pursuant to this Section 11.6 would exceed the cumulative amount paid by Lessee to Lessor pursuant to Section 11.6(c). Lessee shall indemnify Lessor on an After-Tax Basis for any additional Taxes imposed on Lessor as a result of any disallowance, loss, unavailability, recapture, or reduction of all or any part of any Tax Saving for which Lessor makes a payment to Lessee pursuant to this Section 11.6(d). *** Material has been omitted pursuant to a request for confidential treatment and filed separately with the SEC (e) Any indemnity payable by Lessee pursuant to Section 11.6(c) shall be calculated based on the applicable combined state and federal tax rate of Lessor multiplied by the dollar amount of the MACRS Loss. (f) Lessor agrees to use good faith in preparing its income tax returns for any taxable year to claim any Additional MACRS Deduction or Increased Basis which Lessor has actual knowledge of and is entitled to claim. Subject to the preceding sentence, L...