Maintenance Rent. 5.5.1 In addition to Base Rent, and subject to escalation and adjustment as provided in this Article 5.5.1, LESSEE will pay to LESSOR the following categories of Maintenance Rent (each as defined on Schedule I) based on the utilization of the Aircraft during the applicable Maintenance Rent Period: Airframe 6Y Maintenance Rent, Airframe 12Y Maintenance Rent, Performance Restoration Maintenance Rent, Engine LLP Maintenance Rent, Landing Gear Maintenance Rent and APU Maintenance Rent, (collectively "Maintenance Rent" and each of the rates listed in Schedule I, a "Maintenance Rent Rate"). (a) Except for the Engine LLP Maintenance Rent Rate, all of the Maintenance Rent Rates listed in Schedule I are based on [REDACTED: Item 2] cost estimates and, without requirement for any notice, will escalate by the percentages specified in Schedule I on the [REDACTED: Item 2] of each Maintenance Rent Adjustment Period. For avoidance of doubt, such escalation calculation will be made on the [REDACTED: Item 2] of the Maintenance Rent Adjustment Period to the then- existing Maintenance Rent Rates and the resulting escalated Maintenance Rent Rates will be payable for all operation and lapse of calendar time in respect of the Aircraft in that same Maintenance Rent Adjustment Period. In addition to the foregoing, each Maintenance Rent Rate is subject to further increase based on (a) any material change in the maintenance recommendations (work content or interval) of Manufacturer or Engine Manufacturer, as applicable, and (b) the actual cost experience of Lessee in respect of the corresponding MRA (as evidenced by prior MRA Claims). (b) The Engine LLP Maintenance Rent Rate will be adjusted as of the [REDACTED: Item 2] of each Maintenance Rent Adjustment Period to be equal to the then current Engine LLP Cost per Cycle. The "Engine LLP Cost per Cycle" for an Engine for any given calendar year will be calculated by [REDACTED: Item 2]. (c) In respect of Performance Restoration Maintenance Rent payable during the period from [REDACTED: Item 2] through [REDACTED: Item 2] of the calendar year in which Delivery occurs, LESSEE will pay LESSOR Performance Restoration Maintenance Rent in the amount set out in Schedule I, Section D.3 (as such rates are escalated as described in Article 5.5.1(a)) for each Engine (payable when the Engine is utilized on the Aircraft or another aircraft). On [REDACTED: Item 2] of the calendar year immediately following the year in which Delivery occurs and thereafter on the [REDACTED: Item 2] of each subsequent Maintenance Rent Adjustment Period during the Lease Term, the Performance Restoration Maintenance Rent Rate applicable to each Engine will be adjusted based upon [REDACTED: Item 2]. The adjusted Performance Restoration Maintenance Rent Rate for each Engine will be payable for all utilization of such Engine in the Maintenance Rent Adjustment Period in respect of which the adjustment is made. 5.5.2 LESSEE acknowledges and agrees that (a) Maintenance Rent constitutes additional rent to LESSOR for the lease, possession and operation of the Aircraft, will be fully earned when received by LESSOR and is and will remain the sole and exclusive property of LESSOR upon payment thereof by LESSEE, (b) LESSEE has no right, title or interest therein and (c) LESSOR will be entitled to retain absolutely any Maintenance Rent paid without any obligation to pay interest thereon to LESSEE. LESSOR may commingle the Maintenance Rent with its general or other funds or transfer any such amounts to any other Person, and LESSOR will not hold such amounts as agent or in trust for LESSEE or in any similar capacity.
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Maintenance Rent. 5.5.1 In addition to Base Rent, and subject to escalation and adjustment as provided in this Article 5.5.1, LESSEE will pay to LESSOR the following categories of Maintenance Rent (each as defined on Schedule I) based on the utilization of the Aircraft during the applicable Maintenance Rent Period: Airframe 6Y Maintenance Rent, Airframe 12Y Maintenance Rent, Performance Restoration Maintenance Rent, Engine LLP Maintenance Rent, Landing Gear Maintenance Rent and APU Maintenance Rent, (collectively "Maintenance Rent" and each of the rates listed in Schedule I, a "Maintenance Rent Rate").
(a) Except for On or before the Engine LLP 15th day of each calendar month during the Term, and on the Expiry Date (each such date, a “Maintenance Rent RatePayment Date”), all of Lessee shall pay to the Lessor the Maintenance Rent Rates listed in Schedule I are based on [REDACTED: Item 2] cost estimates andfor the Flight Hours/Cycles flown during the preceding calendar month (or, without requirement for any notice, will escalate by the percentages specified in Schedule I on the [REDACTED: Item 2] of each Maintenance Rent Adjustment Period. For avoidance of doubtExpiry Date, such escalation calculation will be made on for the [REDACTED: Item 2] of Flight Hours/Cycles flown during the Maintenance Rent Adjustment Period to the then- existing Maintenance Rent Rates and the resulting escalated Maintenance Rent Rates will be payable for all operation and lapse of current calendar time in respect of the Aircraft in that same Maintenance Rent Adjustment Period. In addition to the foregoing, each Maintenance Rent Rate is subject to further increase based on (amonth) any material change in the maintenance recommendations (work content or interval) amounts and as set forth in Part 1 of Manufacturer or Engine Manufacturer, as applicable, and (b) the actual cost experience of Lessee in respect of the corresponding MRA (as evidenced by prior MRA Claims)Schedule 3.
(b) The Engine LLP Lessor will release and pay the Maintenance Rent Rate will be adjusted as to Lessee in accordance with the provisions of the [REDACTED: Item 2] Part 2 of each Maintenance Rent Adjustment Period to be equal to the then current Engine LLP Cost per CycleSchedule 3. The "Engine LLP Cost per Cycle" for an Engine for any given calendar year will be calculated by [REDACTED: Item 2].ALA MSN 2830 – Global Crossing Airlines
(c) In respect of Performance Restoration All Maintenance Rent payable during paid to Lessor shall become the period from [REDACTED: Item 2] through [REDACTED: Item 2] unencumbered property of the calendar year Lessor immediately upon its receipt thereof and Lessee shall have no right or claim to such funds except as expressly set out in which Delivery occursthis Agreement. Upon the expiration or earlier termination of this Lease for any reason whatsoever (including upon the occurrence and continuation of an Event of Default), LESSEE all Maintenance Rent shall remain the property of Lessor free and clear of any claim by Lessee
(d) On each Maintenance Rent Payment Date, Lessee will pay LESSOR Performance Restoration to Lessor or its order Maintenance Rent in the amount set out specified in Part 1 of Schedule I, Section D.3 (as such rates are escalated as described 3. Lessor will invoice Lessee in Article 5.5.1(a)) for each Engine (payable when advance of the Engine is utilized Maintenance Rent Payment Date based on the Aircraft or another aircraftMonthly Disclosure Report. If Lessee fails to provide the Monthly Disclosure Report, Lessor will be entitled to invoice Lessee for Maintenance Rent based on the most recently provided Monthly Disclosure report (the “Assumed Utilization”). On [REDACTED: Item 2] If the actual utilization when reported is less than the Assumed Utilization, Lessor may apply such over payment to any amounts due and owing from Lessee, including the next installment of Maintenance Rent. If the calendar year immediately following actual utilization when reported is greater than the year in which Delivery occurs and thereafter on Assumed Utilization, Lessee shall pay the [REDACTED: Item 2] of each subsequent Maintenance Rent Adjustment Period during the Lease Term, the Performance Restoration Maintenance Rent Rate applicable to each Engine will be adjusted based upon [REDACTED: Item 2]. The adjusted Performance Restoration Maintenance Rent Rate for each Engine will be payable for all utilization of such Engine shortfall in the Maintenance Rent Adjustment Period in respect of which the adjustment is madeimmediately on demand.
5.5.2 LESSEE acknowledges and agrees that (ae) If a Maintenance Rent constitutes additional rent to LESSOR for the leasePayment Date falls on a non-Business Day, possession and operation of the Aircraft, will be fully earned when received by LESSOR and is and will remain the sole and exclusive property of LESSOR upon payment thereof by LESSEE, (b) LESSEE has no right, title or interest therein and (c) LESSOR will be entitled to retain absolutely any Maintenance Rent paid without any obligation to pay interest thereon to LESSEE. LESSOR may commingle the Maintenance Rent with its general or other funds or transfer any such amounts to any other Person, and LESSOR will not hold such amounts as agent or in trust for LESSEE or in any similar capacitypayable shall be paid on the Business Day immediately preceding the Maintenance Rent Payment Date.
Appears in 1 contract
Samples: Aircraft Lease Agreement (Global Crossing Airlines Group Inc.)
Maintenance Rent. 5.5.1 In addition to Base Rent, and subject to escalation and adjustment as provided in this Article 5.5.1, LESSEE will pay to LESSOR the following categories of Maintenance Rent (each as defined on Schedule I) based on the utilization of the Aircraft during the applicable Maintenance Rent Period: Airframe 6Y Maintenance Rent, Airframe 12Y Maintenance Rent, Performance Restoration Maintenance Rent, Engine LLP Maintenance Rent, Landing Gear Maintenance Rent and APU Maintenance Rent, (collectively "Maintenance Rent" and each of the rates listed in Schedule I, a "Maintenance Rent Rate").
(a) Except for On or before the Engine LLP 15th day of each calendar month during the Term, and on the Expiry Date (each such date, a “Maintenance Rent RatePayment Date”), all of Lessee shall pay to the Lessor the Maintenance Rent Rates listed in Schedule I are based on [REDACTED: Item 2] cost estimates andfor the Flight Hours/Cycles flown during the preceding calendar month (or, without requirement for any notice, will escalate by the percentages specified in Schedule I on the [REDACTED: Item 2] of each Maintenance Rent Adjustment Period. For avoidance of doubtExpiry Date, such escalation calculation will be made on for the [REDACTED: Item 2] of Flight Hours/Cycles flown during the Maintenance Rent Adjustment Period to the then- existing Maintenance Rent Rates and the resulting escalated Maintenance Rent Rates will be payable for all operation and lapse of current calendar time in respect of the Aircraft in that same Maintenance Rent Adjustment Period. In addition to the foregoing, each Maintenance Rent Rate is subject to further increase based on (amonth) any material change in the maintenance recommendations (work content or interval) amounts and as set forth in Part 1 of Manufacturer or Engine Manufacturer, as applicable, and (b) the actual cost experience of Lessee in respect of the corresponding MRA (as evidenced by prior MRA Claims)Schedule 3.
(b) The Engine LLP Lessor will release and pay the Maintenance Rent Rate will be adjusted as to Lessee in accordance with the provisions of the [REDACTED: Item 2] Part 2 of each Maintenance Rent Adjustment Period to be equal to the then current Engine LLP Cost per CycleSchedule 3. The "Engine LLP Cost per Cycle" for an Engine for any given calendar year will be calculated by [REDACTED: Item 2].ALA MSN 2851 – Global Crossing Airlines
(c) In respect of Performance Restoration All Maintenance Rent payable during paid to Lessor shall become the period from [REDACTED: Item 2] through [REDACTED: Item 2] unencumbered property of the calendar year Lessor immediately upon its receipt thereof and Lessee shall have no right or claim to such funds except as expressly set out in which Delivery occursthis Agreement. Upon the expiration or earlier termination of this Lease for any reason whatsoever (including upon the occurrence and continuation of an Event of Default), LESSEE all Maintenance Rent shall remain the property of Lessor free and clear of any claim by Lessee
(d) On each Maintenance Rent Payment Date, Lessee will pay LESSOR Performance Restoration to Lessor or its order Maintenance Rent in the amount set out specified in Part 1 of Schedule I, Section D.3 (as such rates are escalated as described 3. Lessor will invoice Lessee in Article 5.5.1(a)) for each Engine (payable when advance of the Engine is utilized Maintenance Rent Payment Date based on the Aircraft or another aircraftMonthly Disclosure Report. If Lessee fails to provide the Monthly Disclosure Report, Lessor will be entitled to invoice Lessee for Maintenance Rent based on the most recently provided Monthly Disclosure report (the “Assumed Utilization”). On [REDACTED: Item 2] If the actual utilization when reported is less than the Assumed Utilization, Lessor may apply such over payment to any amounts due and owing from Lessee, including the next installment of Maintenance Rent. If the calendar year immediately following actual utilization when reported is greater than the year in which Delivery occurs and thereafter on Assumed Utilization, Lessee shall pay the [REDACTED: Item 2] of each subsequent Maintenance Rent Adjustment Period during the Lease Term, the Performance Restoration Maintenance Rent Rate applicable to each Engine will be adjusted based upon [REDACTED: Item 2]. The adjusted Performance Restoration Maintenance Rent Rate for each Engine will be payable for all utilization of such Engine shortfall in the Maintenance Rent Adjustment Period in respect of which the adjustment is madeimmediately on demand.
5.5.2 LESSEE acknowledges and agrees that (ae) If a Maintenance Rent constitutes additional rent to LESSOR for the leasePayment Date falls on a non-Business Day, possession and operation of the Aircraft, will be fully earned when received by LESSOR and is and will remain the sole and exclusive property of LESSOR upon payment thereof by LESSEE, (b) LESSEE has no right, title or interest therein and (c) LESSOR will be entitled to retain absolutely any Maintenance Rent paid without any obligation to pay interest thereon to LESSEE. LESSOR may commingle the Maintenance Rent with its general or other funds or transfer any such amounts to any other Person, and LESSOR will not hold such amounts as agent or in trust for LESSEE or in any similar capacitypayable shall be paid on the Business Day immediately preceding the Maintenance Rent Payment Date.
Appears in 1 contract
Samples: Aircraft Lease Agreement (Global Crossing Airlines Group Inc.)
