Common use of Reserve Rate Clause in Contracts

Reserve Rate. 3.1 Lessee shall be relieved of its obligation to pay the Reserve Rate at any time that the Aircraft Maintenance Agreement is in effect with respect to the Aircraft. At any time that the Aircraft Maintenance Agreement is not in effect, then Lessee shall, in addition to installments of Rent, pay to Lessor the Reserve Rate as follows: (a) by way of an Airframe maintenance accrual, the sum of {***} for the months one up to and including twelve of the Term and {***} for the months thirteen up to and including the Expiry Date for each Flight Hour the Aircraft is operated during the Term ("Airframe Maintenance Accrual"), and (b) by way of an Engine maintenance accrual, in respect of each Engine the sum of {***} for the months one up to and including twelve of the Term, and {***} for the months thirteen up to and including the Expiry Date for each Flight Hour operated by each Engine during the Term ("Engine Maintenance Accrual"), and (c) by way of a landing gear maintenance accrual, the sum of {***} for the months one up to and including twelve of the Term, and {***} for the months thirteen up to and including the Expiry Date for each Cycle operated by the landing gear during the Term ("Landing Gear Maintenance Accrual"), and (d) by way of an A.P.U. maintenance accrual, the sum of {***} for the months one up to and including twelve of the Term, and {***} for the months thirteen up to and including the Expiry Date for each Flight Hour operated by the A.P.U. during the Term ("A.P.U. Maintenance Accrual"). The Airframe, Engine, Landing Gear and A.P.U. Maintenance Accruals accruing in any Rental Period shall be paid by Lessee to Lessor not later than ten (10) days after the end of the calendar month in which such Rental Period shall end. Concurrently with the payment thereof, Lessee shall report to Lessor (in accordance with Article 7.1 (e)) the number of Flight Hours and Cycles accumulated in respect of the period for which payment is being made. The Reserve Rate will be subject to adjustment every twelve (12) months during the Term by reference for 65% to the Employment and Earnings Index for U.S.A. labor cost average hourly earnings of production (Aircraft Equipment) SIC 3728, table C-2 and for 35% to the Producer Price Index for U.S.A. material cost commodity groupings (Machinery and Equipment) Code 11/table 6. In addition the Engine Maintenance Accrual will be subject to adjustment every twelve (12) months during the Term having regard to the Engine Manufacturer recommendations, industry experience and any change in the operational environment of the Aircraft. Any Reserve Rate shall, if requested by either Lessor or (unless an Event of Default shall have occurred and be continuing) Lessee, be adjusted to take into account any changes in the maintenance intervals upon which Reserve Rates are based. 3.2 Maintenance Accruals as defined in paragraph 3.1 above and received by Lessor shall respectively be credited to funds (collectively "Maintenance Funds") to be known as the "Airframe Maintenance Fund", the "Engine Maintenance Fund", the "Landing Gear Maintenance Fund" and the "A.P.U. Maintenance Fund" which funds shall reduce as monies are released to Lessee therefrom in accordance with Article 7.4. 3.3 [Intentionally deleted]. 3.4 The Reserve Rates shall accrue interest at the applicable six (6) months US Dollar LIBOR rate (as defined in Paragraph 6 of this Appendix D) minus point twenty five percent (.25%) per annum, which interest shall be added to the relevant Maintenance Fund. 3.5 If Lessee would otherwise be required to pay the Reserve Rate hereunder and if Xxxxxx has improved its retained accumulated net earnings (as determined in accordance with generally accepted United States accounting principles consistently applied) by an amount exceeding $9,000,000 (Dollars Nine Million) from the level of such earnings as at February 28, 1995, then Xxxxxx's obligation to continue to pay Reserve Rates hereunder shall be stayed, provided, however, that in connection with the release of monies to Lessee from the Maintenance Fund pursuant to Article 7.4.1, prior to the release of monies, if Lessee cannot provide Lessor with evidence, reasonably satisfactory to Lessor, that Lessee continues to have such level of retained earnings, Xxxxxx's obligation to pay Reserve Rates shall recommence pursuant to the terms hereof and no monies shall be released from the Maintenance Fund until such time as it shall have been restored to the level at which it would have been had this paragraph not been in effect. Lessee hereby represents that its retained accumulated net earnings (as determined in accordance with generally accepted United States accounting principles consistently applied) as at February 28, 1995 was negative (-) $15,270,000, subject to final year-end audit adjustment. 4.1. It is understood, for the avoidance of doubt, that the foregoing terms of this Article 3.5 shall not affect Xxxxxx's or Lessor's obligations under Article 3.6 of this Appendix D. 3.6 On the Expiry Date, if there is any Excess (as defined below) in any Maintenance Fund, such Excess shall, unless a Default shall have occurred and be continuing (in which case only after termination, return of the Aircraft and payment of all amounts due following exercise of remedies under Article 15), be paid to Lessee, and on such date, if there is any Shortfall (as defined below), Lessee shall pay such Shortfall to Lessor.

Reserve Rate. 3.1 Lessee shall be relieved of its obligation to pay the Reserve Rate at any time that the Aircraft Maintenance Agreement is in effect with respect to the Aircraft. At any time that the Aircraft Maintenance Agreement is not in effect, then Lessee shall, in addition to installments of Rent, pay to Lessor the Reserve Rate as follows: (a) by way of an Airframe maintenance accrual, the sum of {***} for the months one up to and including twelve of the Term and {***} for the months thirteen up to and including the Expiry Date for each Flight Hour the Aircraft is operated during the Term ("Airframe Maintenance Accrual"), and (b) by way of an Engine maintenance accrual, in respect of each Engine the sum of {***} for the months one up to and including twelve of the Term, and {***} for the months thirteen up to and including the Expiry Date for each Flight Hour operated by each Engine during the Term ("Engine Maintenance Accrual"), and (c) by way of a landing gear maintenance accrual, the sum of {***} for the months one up to and including twelve of the Term, and {***} for the months thirteen up to and including the Expiry Date for each Cycle operated by the landing gear during the Term ("Landing Gear Maintenance Accrual"), and (d) by way of an A.P.U. maintenance accrual, the sum of {***} for the months one up to and including twelve of the Term, and {***} for the months thirteen up to and including the Expiry Date for each Flight Hour operated by the A.P.U. during the Term ("A.P.U. Maintenance Accrual"). The Airframe, Engine, Landing Gear and A.P.U. Maintenance Accruals accruing in any Rental Period shall be paid by Lessee to Lessor not later than ten (10) days after the end of the calendar month in which such Rental Period shall end. Concurrently with the payment thereof, Lessee shall report to Lessor (in accordance with Article 7.1 (e)) the number of Flight Hours and Cycles accumulated in respect of the period for which payment is being made. The Reserve Rate will be subject to adjustment every twelve (12) months during the Term by reference for 65% to the Employment and Earnings Index for U.S.A. labor cost average hourly earnings of production (Aircraft Equipment) SIC 3728, table C-2 and for 35% to the Producer Price Index for U.S.A. material cost commodity groupings (Machinery and Equipment) Code 11/table 6. In addition the Engine Maintenance Accrual will be subject to adjustment every twelve (12) months during the Term having regard to the Engine Manufacturer recommendations, industry experience and any change in the operational environment of the Aircraft. Any Reserve Rate shall, if requested by either Lessor or (unless an Event of Default shall have occurred and be continuing) Lessee, be adjusted to take into account any changes in the maintenance intervals upon which Reserve Rates are based. 3.2 Maintenance Accruals as defined in paragraph 3.1 above and received by Lessor shall respectively be credited to funds (collectively "Maintenance Funds") to be known as the "Airframe Maintenance Fund", the "Engine Maintenance Fund", the "Landing Gear Maintenance Fund" and the "A.P.U. Maintenance Fund" which funds shall reduce as monies are released to Lessee therefrom in accordance with Article 7.47. 3.3 [Intentionally deleted]. 3.4 The Reserve Rates shall accrue interest at the applicable six (6) months US Dollar LIBOR rate (as defined in Paragraph 6 of this Appendix D) minus point twenty five percent (.25%) per annum, which interest shall be added to the relevant Maintenance Fund. 3.5 If Lessee would otherwise be required to pay the Reserve Rate hereunder and if Xxxxxx Lessee has improved its retained accumulated net earnings (as determined in accordance with generally accepted United States accounting principles consistently applied) by an amount exceeding $9,000,000 (Dollars Nine Million) from the level of such earnings as at February 28, 1995, then XxxxxxLessee's obligation to continue to pay Reserve Rates hereunder shall be stayed, provided, however, that in connection with the release of monies to Lessee from the Maintenance Fund pursuant to Article 7.4.1, prior to the release of monies, if Lessee cannot provide Lessor with evidence, reasonably satisfactory to Lessor, that Lessee continues to have such level of retained earnings, XxxxxxLessee's obligation to pay Reserve Rates shall recommence pursuant to the terms hereof and no monies shall be released from the Maintenance Fund until such time as it shall have been restored to the level at which it would have been had this paragraph not been in effect. Lessee hereby represents that its retained accumulated net earnings (as determined in accordance with generally accepted United States accounting principles consistently applied) as at February 28, 1995 was negative (-) $15,270,000, subject to final year-end audit adjustment. 4.17.4.1. It is understood, for the avoidance of doubt, that the foregoing terms of this Article 3.5 shall not affect XxxxxxLessee's or Lessor's obligations under Article 3.6 of this Appendix D. 3.6 On the Expiry Date, if there is any Excess (as defined below) in any Maintenance Fund, such Excess shall, unless a Default shall have occurred and be continuing (in which case only after termination, return of the Aircraft and payment of all amounts due following exercise of remedies under Article 15), be paid to Lessee, and on such date, if there is any Shortfall (as defined below), Lessee shall pay such Shortfall to Lessor.

Reserve Rate. 3.1 Lessee shall be relieved of its obligation to pay the Reserve Rate at any time that the Aircraft Maintenance Agreement is in effect with respect to the Aircraft. At any time that the Aircraft Maintenance Agreement is not in effect, then Lessee shall, in addition to installments of Rent, pay to Lessor the Reserve Rate as follows: (a) by way of an Airframe maintenance accrual, the sum of {***} for the months one up to and including twelve of the Term and {***} for the months thirteen up to and including the Expiry Date for each Flight Hour the Aircraft is operated during the Term ("Airframe Maintenance Accrual"), and (b) by way of an Engine maintenance accrual, in respect of each Engine the sum of {***} for the months one up to and including twelve of the Term, and {***} for the months thirteen up to and including the Expiry Date for each Flight Hour operated by each Engine during the Term ("Engine Maintenance Accrual"), and (c) by way of a landing gear maintenance accrual, the sum of {***} for the months one up to and including twelve of the Term, and {***} for the months thirteen up to and including the Expiry Date for each Cycle operated by the landing gear during the Term ("Landing Gear Maintenance Accrual"), and (d) by way of an A.P.U. maintenance accrual, the sum of {***} for the months one up to and including twelve of the Term, and {***} for the months thirteen up to and including the Expiry Date for each Flight Hour operated by the A.P.U. during the Term ("A.P.U. Maintenance Accrual"). The Airframe, Engine, Landing Gear and A.P.U. Maintenance Accruals accruing in any Rental Period shall be paid by Lessee to Lessor not later than ten (10) days after the end of the calendar month in which such Rental Period shall end. Concurrently with the payment thereof, Lessee shall report to Lessor (in accordance with Article 7.1 (e)) the number of Flight Hours and Cycles accumulated in respect of the period for which payment is being made. The Reserve Rate will be subject to adjustment every twelve (12) months during the Term by reference for 65% to the Employment and Earnings Index for U.S.A. labor cost average hourly earnings of production (Aircraft Equipment) SIC 3728, table C-2 and for 35% to the Producer Price Index for U.S.A. material cost commodity groupings (Machinery and Equipment) Code 11/table 6. In addition the Engine Maintenance Accrual will be subject to adjustment every twelve (12) months during the Term having regard to the Engine Manufacturer recommendations, industry experience and any change in the operational environment of the Aircraft. Any Reserve Rate shall, if requested by either Lessor or (unless an Event of Default shall have occurred and be continuing) Lessee, be adjusted to take into account any changes in the maintenance intervals upon which Reserve Rates are based. 3.2 Maintenance Accruals as defined in paragraph 3.1 above and received by Lessor shall respectively be credited to funds (collectively "Maintenance Funds") to be known as the "Airframe Maintenance Fund", the "Engine Maintenance Fund", the "Landing Gear Maintenance Fund" and the "A.P.U. A.P.U Maintenance Fund" which funds shall reduce as monies are released to Lessee therefrom in accordance with Article 7.4. 3.3 [Intentionally deleted]. 3.4 The Reserve Rates shall accrue interest at the applicable six (6) months US Dollar LIBOR rate (as defined in Paragraph 6 of this Appendix D) minus point twenty five percent (.25%) per annum, which interest shall be added to the relevant Maintenance Fund. 3.5 If Lessee would otherwise be required to pay the Reserve Rate hereunder and if Xxxxxx Lessee has improved its retained accumulated net earnings (as determined in accordance with generally accepted United States accounting principles consistently applied) by an amount exceeding $9,000,000 (Dollars Nine Million) from the level of such earnings as at February 28, 1995, then XxxxxxLessee's obligation to continue to pay Reserve Rates hereunder shall be stayed, provided, however, that in connection with the release of monies to Lessee from the Maintenance Fund pursuant to Article 7.4.1, prior to the release of monies, if Lessee cannot provide Lessor with evidence, reasonably satisfactory to Lessor, that Lessee continues to have such level of retained earnings, XxxxxxLessee's obligation to pay Reserve Rates shall recommence pursuant to the terms hereof and no monies shall be released from the Maintenance Fund until such time as it shall have been restored to the level at which it would have been had this paragraph not been in effect. Lessee hereby represents that its retained accumulated net earnings (as determined in accordance with generally accepted United States accounting principles consistently applied) as at February 28, 1995 was negative (-) $15,270,000, subject to final year-end audit adjustment. 4.17.4.1. It is understood, for the avoidance of doubt, that the foregoing terms of this Article 3.5 shall not affect XxxxxxLessee's or Lessor's obligations under Article 3.6 of this Appendix D. 3.6 On the Expiry Date, if there is any Excess (as defined below) in any Maintenance Fund, such Excess shall, unless a Default shall have occurred and be continuing (in which case only after termination, return of the Aircraft and payment of all amounts due following exercise of remedies under Article 15), be paid to Lessee, and on such date, if there is any Shortfall (as defined below), Lessee shall pay such Shortfall to Lessor.

Reserve Rate. 3.1 Lessee shall be relieved of its obligation to pay the Reserve Rate at any time that the Aircraft Maintenance Agreement is in effect with respect to the Aircraft. At any time that the Aircraft Maintenance Agreement is not in effect, then Lessee shall, in In addition to installments of Rent, Lessee shall pay to Lessor the Reserve Rate as follows: (a) by way of an Airframe maintenance accrual, the sum of {***} for the months one up to and including twelve of the Term and Term, {***} for the months thirteen up to and including twenty four of the Expiry Date Term and {***} for the months twenty five up to and including one hundred twenty of the Term for each Flight Hour the Aircraft is operated during the Term ("Airframe Maintenance Accrual"), and (b) by way of an Engine maintenance accrual, in respect of each Engine the sum of {***} for the months one up to and including twelve of the Term, and {***} for the months thirteen up to and including twenty four of the Expiry Date Term and {***} for the months twenty five up to and including one hundred twenty of the Term for each Flight Hour operated by each Engine during the Term ("Engine Maintenance Accrual"), and (c) by way of a landing gear maintenance accrual, the sum of {***} for the months one up to and including twelve of the Term, and {***} for the months thirteen up to and including twenty four of the Expiry Date Term and {***} for the months twenty five up to and including one hundred twenty of the Term for each Cycle operated by the landing gear during the Term ("Landing Gear Maintenance Accrual"), and (d) by way of an A.P.U. maintenance accrual, the sum of {***} for the months one up to and including twelve of the Term, and {***} for the months thirteen up to and including twenty four of the Expiry Date Term and {***} for the months twenty five up to and including one hundred twenty of the Term for each Flight Hour operated by the A.P.U. during the Term ("A.P.U. Maintenance Accrual"). The Airframe, Engine, Landing Gear and A.P.U. Maintenance Accruals accruing in any Rental Period shall be paid by Lessee to Lessor not later than ten (10) days after the end of the calendar month in which such Rental Period shall end. Concurrently with the payment thereof, Lessee shall report to Lessor (in accordance with Article 7.1 (e)) the number of Flight Hours and Cycles accumulated in respect of the period for which payment is being made. The Reserve Rate will be subject to adjustment every twelve six (126) months during the Term by reference for 65% to the Employment and Earnings Index for U.S.A. labor cost average hourly earnings of production (Aircraft Equipment) SIC 3728, table C-2 and for 35% to the Producer Price Index for U.S.A. material cost commodity groupings (Machinery and Equipment) Code 11/table 6. In addition the Engine Maintenance Accrual will be subject to adjustment every twelve six (126) months during the Term having regard to the Engine Manufacturer recommendations, industry experience and any change in the operational environment of the Aircraft. Any Reserve Rate shall, if requested by either Lessor or (unless an Event of Default shall have occurred and be continuing) Lessee, be adjusted to take into account any changes in the maintenance intervals upon which Reserve Rates are based. 3.2 Maintenance Accruals as defined in paragraph 3.1 above and received by Lessor shall respectively be credited to funds (collectively "Maintenance Funds") to be known as the "Airframe Maintenance Fund", the "Engine Maintenance Fund", the "Landing Gear Maintenance Fund" and the "A.P.U. Maintenance Fund" which funds shall reduce as monies are released to Lessee therefrom in accordance with Article 7.4. 3.3 [Intentionally deleted]. 3.4 The Reserve Rates shall accrue interest at the applicable six (6) months US Dollar LIBOR rate (as defined in Paragraph 6 of this Appendix D) minus point twenty five percent (.25%) per annum, which interest shall be added to the relevant Maintenance Fund. 3.5 If Lessee would otherwise be required to pay the Reserve Rate hereunder and if Xxxxxx has improved its retained accumulated net earnings (as determined in accordance with generally accepted United States accounting principles consistently applied) by an amount exceeding $9,000,000 (Dollars Nine Million) from the level of such earnings as at February 28, 1995, then Xxxxxx's obligation to continue to pay Reserve Rates hereunder shall be stayed, provided, however, that in connection with the release of monies to Lessee from the Maintenance Fund pursuant to Article 7.4.1, prior to the release of monies, if Lessee cannot provide Lessor with evidence, reasonably satisfactory to Lessor, that Lessee continues to have such level of retained earnings, Xxxxxx's obligation to pay Reserve Rates shall recommence pursuant to the terms hereof and no monies shall be released from the Maintenance Fund until such time as it shall have been restored to the level at which it would have been had this paragraph not been in effect. Lessee hereby represents that its retained accumulated net earnings (as determined in accordance with generally accepted United States accounting principles consistently applied) as at February 28, 1995 was negative (-) $15,270,000, subject to final year-end audit adjustment. 4.1. It is understood, for the avoidance of doubt, that the foregoing terms of this Article 3.5 shall not affect Xxxxxx's or Lessor's obligations under Article 3.6 of this Appendix D. 3.6 On the Expiry Date, if there is any Excess (as defined below) in any Maintenance Fund, such Excess shall, unless a Default shall have occurred and be continuing (in which case only after termination, return of the Aircraft and payment of all amounts due following exercise of remedies under Article 15), be paid to Lessee, and on such date, if there is any Shortfall (as defined below), Lessee shall pay such Shortfall to Lessor.are

Reserve Rate. 3.1 Lessee shall be relieved of its obligation to pay the Reserve Rate at any time that the Aircraft Maintenance Agreement is in effect with respect to the Aircraft. At any time that the Aircraft Maintenance Agreement is not in effect, then Lessee shall, in addition to installments of Rent, pay to Lessor the Reserve Rate as follows: (a) by way of an Airframe maintenance accrual, the sum of {***} for the months one up to and including twelve of the Term and {***} for the months thirteen up to and including the Expiry Date for each Flight Hour the Aircraft is operated during the Term ("Airframe Maintenance Accrual"), and (b) by way of an Engine maintenance accrual, in respect of each Engine the sum of {***} for the months one up to and including twelve of the Term, and {***} for the months thirteen up to and including the Expiry Date for each Flight Hour operated by each Engine during the Term ("Engine Maintenance Accrual"), and (c) by way of a landing gear maintenance accrual, the sum of {***} for the months one up to and including twelve of the Term, and {***} for the months thirteen up to and including the Expiry Date for each Cycle operated by the landing gear during the Term ("Landing Gear Maintenance Accrual"), and (d) by way of an A.P.U. maintenance accrual, the sum of {***} for the months one up to and including twelve of the Term, and {***} for the months thirteen up to and including the Expiry Date for each Flight Hour operated by the A.P.U. during the Term ("A.P.U. Maintenance Accrual"). The Airframe, Engine, Landing Gear and A.P.U. Maintenance Accruals accruing in any Rental Period shall be paid by Lessee to Lessor not later than ten (10) days after the end of the calendar month in which such Rental Period shall end. Concurrently with the payment thereof, Lessee shall report to Lessor (in accordance with Article 7.1 (e7.1(e)) the number of Flight Hours and Cycles accumulated in respect of the period for which payment is being made. The Reserve Rate will be subject to adjustment every twelve (12) months during the Term by reference for 65% to the Employment and Earnings Index for U.S.A. labor cost average hourly earnings of production (Aircraft Equipment) SIC 3728, table C-2 and for 35% to the Producer Price Index for U.S.A. material cost commodity groupings (Machinery and Equipment) Code 11/table 6. In addition the Engine Maintenance Accrual will be subject to adjustment every twelve (12) months during the Term having regard to the Engine Manufacturer recommendations, industry experience and any change in the operational environment of the Aircraft. Any Reserve Rate shall, if requested by either Lessor or (unless an Event of Default shall have occurred and be continuing) Lessee, be adjusted to take into account any changes in the maintenance intervals upon which Reserve Rates are based. 3.2 Maintenance Accruals as defined in paragraph 3.1 above and received by Lessor shall respectively be credited to funds (collectively "Maintenance Funds") to be known as the "Airframe Maintenance Fund", the "Engine Maintenance Fund", the "Landing Gear Maintenance Fund" and the "A.P.U. Maintenance Fund" which funds shall reduce as monies are released to Lessee therefrom in accordance with Article 7.4. 3.3 [Intentionally deleted]. 3.4 The Reserve Rates shall accrue interest at the applicable six (6) months US Dollar LIBOR rate (as defined in Paragraph 6 of this Appendix D) minus point twenty five percent (.25%) per annum, which interest shall be added to the relevant Maintenance Fund. 3.5 If Lessee would otherwise be required to pay the Reserve Rate hereunder and if Xxxxxx Lessee has improved its retained accumulated net earnings (as determined in accordance with generally accepted United States accounting principles consistently applied) by an amount exceeding $9,000,000 (Dollars Nine Million) from the level of such earnings as at February 28, 1995, then XxxxxxLessee's obligation to continue to pay Reserve Rates hereunder shall be stayed, provided, however, that in connection with the release of monies to Lessee from the Maintenance Fund pursuant to Article 7.4.1, prior to the release of monies, if Lessee cannot provide Lessor with evidence, reasonably satisfactory to Lessor, that Lessee continues to have such level of retained earnings, XxxxxxLessee's obligation to pay Reserve Rates shall recommence pursuant to the terms hereof and no monies shall be released from the Maintenance Fund until such time as it shall have been restored to the level at which it would have been had this paragraph not been in effect. Lessee hereby represents that its retained accumulated net earnings (as determined in accordance with generally accepted United States accounting principles consistently applied) as at February 28, 1995 was negative (-) $15,270,000, subject to final year-end audit adjustment. 4.17.4.1. It is understood, for the avoidance of doubt, that the foregoing terms of this Article 3.5 shall not affect XxxxxxLessee's or Lessor's obligations under Article 3.6 of this Appendix D. 3.6 On the Expiry Date, if there is any Excess (as defined below) in any Maintenance Fund, such Excess shall, unless a Default shall have occurred and be continuing (in which case only after termination, return of the Aircraft and payment of all amounts due following exercise of remedies under Article 15), be paid to Lessee, and on such date, if there is any Shortfall (as defined below), Lessee shall pay such Shortfall to Lessor.