Common use of Incremental Margin Clause in Contracts

Incremental Margin. If, on the last date of the Drawing Period (as measured solely at such time): (i) (x) the Portfolio Aircraft (except any Widebody Aircraft or freighter Aircraft) on lease to any one lessee represent more than 50% of the aggregate principal amount of all Loans advanced and/or (y) lessees from any one jurisdiction (except in respect of any Widebody Aircraft or freighter Aircraft) represent more than 50% of the aggregate principal amount of all Loans advanced, then the Loans shall bear an incremental interest rate equal to 100 basis points, unless a waiver has been obtained from the Required Lenders; or (ii) (unless clause (c)(i) above applies), (x) the Portfolio Aircraft (except any Widebody Aircraft or freighter Aircraft) on lease to any one lessee represent 30% to 50% of all Loans advanced and/or (ii) lessees from any one jurisdiction (except in respect of any Widebody Aircraft or freighter Aircraft) represent more than 30% to 50% of the aggregate principal amount of all Loans advanced, then the Loans shall bear an incremental interest rate equal to 50 basis points, unless a waiver is obtained from the Required Lenders, any incremental interest rate under clauses (c)(i) or (c)(ii) above being the “Incremental Margin”. For the purposes of calculating whether the 30% and 50% thresholds have been breached related to a lessee operating a Widebody aircraft and the jurisdiction in which a lessee with a Widebody aircraft operates, each of (i) the aggregate principal amount outstanding for Aircraft on Lease to such lessee (after subtracting the principal amount outstanding related to the Widebody aircraft) and (ii) the aggregate principal amount outstanding for Aircraft on lease in this jurisdiction (after subtracting the principal amount outstanding related to the Widebody aircraft) will be compared to the aggregate principal amount of all Loans outstanding (after subtracting the principal amount outstanding related to the Widebody aircraft).