Common use of Possession and Use Clause in Contracts

Possession and Use. Lessee shall be entitled to the possession of the Units and to the use of the Units by it or any Affiliate in the United States and, subject to the remaining provisions of this Section 8.2 and Section 8.3, Canada and Mexico, only in the manner for which it was designed and intended and so as to subject it only to ordinary wear and tear. In no event shall Lessee use, store or permit the use or storage of any Unit in any jurisdiction not included in the insurance coverage required by Section 12. The Units shall be used primarily on domestic routes in the United States, and in no event shall more than seventeen and one half percent (17.5%) of the Units (as determined by mileage records and measured annually on a calendar year basis) be used outside the Contiguous United States; provided, that such maximum percentage shall be increased to (i) 25% on the sixth anniversary of the date hereof and (ii) 40% on the ninth anniversary of the date hereof. In addition, in no event shall more than 30% of the Units, the Other Units and the Pledged Units in the aggregate (as determined by mileage records and measured at the end of each calendar quarter for the 12 month period ending on the last day of the calendar quarter immediately preceding such calendar quarter) be used in Mexico. Nothing in this Section 8.2 shall be deemed to constitute permission by Lessor to any Person that acquires possession of any Unit to take any action inconsistent with the terms and provisions of this Lease or any of the other Operative Agreements.

Appears in 12 contracts

Samples: Equipment Lease Agreement (Trinity Industries Inc), Equipment Lease Agreement (Trinity Industries Inc), Equipment Lease Agreement (Trinity Industries Inc)

AutoNDA by SimpleDocs
Draft better contracts in just 5 minutes Get the weekly Law Insider newsletter packed with expert videos, webinars, ebooks, and more!