Fill and Sign the Aircraft Lease Agreement PDF Form

Aircraft Lease Agreement with Option to Purchase Lease Agreement made on the _________________ (date) , between _______________________ (Name of Lessee) of _____________________________ ____________________________________________ (street address, city, state, zip code) , referred to herein as Lessee , and _____________________ (Name of Lessor) , a corporation organized and existing under the laws of the state of _________________, with its principal office located at _________________________ ____________________________________________ (street address, city, state, zip code) , referred to herein as Lessor . Whereas, Lessor is the registered owner of an Aircraft (the Aircraft ) described as follows: 1. Make: ______________________________________________; 2. Year: _____________ 3. Model: ________________________________________; 4. Serial Number: ________________________; 5. Registration Number: ___________________________; and Whereas, the Aircraft is available for lease to a qualified Lessee; and Whereas, Lessee desires to lease the Aircraft from Lessor under such terms and conditions as are mutually satisfactory to the parties; Now, therefore, for and in consideration of the mutual covenants contained in this agreement, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 1. Lease of Aircraft Lessor hereby leases to Lessee the Aircraft together with the accessories and equipment listed in Schedule A attached to this Lease. The Aircraft shall be delivered to Lessee at ___________________________________________________________ ____________ (location) on ___________________ (date) , at which time Lessee shall inspect the Aircraft to the extent deemed necessary. Lessee shall have ________ hours following delivery of the Aircraft in which to notify Lessor in writing of any defects in the Aircraft or its equipment or accessories. If, at the end of that period, Lessor has not received such notification, it shall be conclusively presumed between the parties that Lessee has fully inspected the Aircraft and acknowledges that it is in good condition and repair and that Lessee is satisfied with and has accepted the Aircraft in such condition and repair. 2. Term This Lease shall commence on the date the Aircraft is delivered to and accepted by Lessee. Unless terminated sooner as provided in this Agreement, the Lease shall be for a term of ______ months, that is, until _____________________ (date) . This Agreement may be terminated by Lessee on or after ______________________ (date) , provided the rent for the Aircraft to the date of termination has been paid in full to Lessor, and provided further that Lessee gives Lessor at least ______ days' written notice of intention to terminate. 3. Rent The rent payable by Lessee to Lessor shall be calculated at the rate of $__________ per hour for each hour the Aircraft is flown while in the possession of Lessee, provided, however, that the total rent for any month shall not be less than $__________. The minimum monthly rent shall be due and payable in advance on the ______ day of each month, the first such payment to be due on delivery of the Aircraft. As to each month during the term of this Agreement, the excess of the amount calculated at the hourly rate over the minimum monthly rent shall be due and payable no more than ______ days after the close of that month. All rent shall be paid to Lessor at the address set forth above or to such other person and at such other place as Lessor may from time to time designate in writing. 4. Option to Purchase and Purchase Price Lessor grants to Lessee the option to purchase the Aircraft in its then-current condition at any time prior to the expiration of this Agreement. If Lessee exercises this option to purchase, Lessee shall pay to Lessor for the Aircraft $__________. If Lessee exercises the option to purchase, the purchase price shall be reduced by (e.g., the amount of the total lease payments previously paid by Lessee to Lessor under the terms of this Agreement for the use of the Aircraft) ______________________ _____________________________________________________________________ _____________________________________________________________________ . If Lessee desires to exercise the option to purchase, Lessee shall do so by giving Lessor written notice of such intent no less than ______ days prior to the date for the next scheduled lease payment under this Agreement. 5. Indemnification of Lessor Lessee agrees to indemnify Lessor against all losses, including costs and expenses, by reason of claims for injury to or death of persons and loss of or damage to property arising out of or in any manner connected with the possession, use, or operation of the Aircraft by Lessee during the term of this Lease. Lessee shall maintain in full force and effect, and at Lessee's own expense, passenger liability, public liability, property damage, baggage, and cargo insurance in such form, for such amounts, and with such insurers as shall be satisfactory to Lessor, insuring Lessor and Lessee as their interests may appear against claims for the death of, or injury to, persons or loss of or damage to property in connection with the possession, use, or operation of the Aircraft by Lessee. 6. Risk of Loss Lessee shall be liable for any loss or damage to the Aircraft during the term of this Lease and, at Lessee's own expense, shall keep the Aircraft, together with all its equipment and accessories, insured against loss or damage from crash, fire, windstorm, collision, or other casualty. The amount of such insurance shall not be less than $__________, and the insurer and form of the insurance policy shall be subject to the approval of Lessor. If the Aircraft is damaged while in the possession of Lessee under this Lease, Lessee will repair the damage at Lessee's own expense. In the event of the loss or damage beyond repair of the Aircraft, Lessee, at the option of Lessor, either will replace the Aircraft with an Aircraft of the same type and value in good operating condition or pay to Lessor $__________, less any amounts paid to and retained by Lessor as proceeds from the insurance on the Aircraft, which payment by Lessee shall be full payment for all right, title, and interest of Lessor in the Aircraft. 7. Restrictions on Use A. Lessee may operate the Aircraft only for the purposes, and within the geographical limits, set forth in the insurance policy or policies obtained in compliance with Section 5 and Section 6 of this Agreement. Furthermore, Lessee shall not use Aircraft in violation of any foreign, federal, state, territorial, or municipal law or regulation and shall be solely responsible for any fines, penalties, or forfeitures occasioned by any violation. If such fines or penalties are imposed on Lessor and paid by Lessor, Lessee shall reimburse Lessor for the amount of such fines or penalties within ______ days of receipt by Lessee of written demand from Lessor. Lessee will not base Aircraft, or permit it to be based, outside the limits of the United States of America, without the written consent of Lessor. B. The Aircraft shall be flown only by licensed and qualified pilots and shall be maintained only by licensed and qualified mechanics. If the insurance on the Aircraft is invalidated because of Lessee being unable to obtain licensed and qualified pilots and mechanics, Lessee shall not operate the Aircraft until such time as licensed and qualified pilots and mechanics are obtained and insurance on the Aircraft is made valid. 8. Inspection by Lessor Lessee agrees to permit Lessor or an authorized agent to inspect the Aircraft at any reasonable time and to furnish any information in respect to the Aircraft and its use that Lessor may reasonably request. 9. Alterations Lessee shall not have the right to alter, modify, or make additions or improvements to the Aircraft without written permission from Lessor. All such alterations, modifications, additions, and improvements as are so made shall become the property of Lessor and shall be subject to all of the terms of this Agreement. 10. Maintenance and Repair A. Lessee, at Lessee's own cost and expense, shall repair and maintain the Aircraft so as to keep it in as good and safe operating condition as when delivered by Lessor to Lessee, ordinary wear and tear from use and ordinary deterioration excepted. Lessee shall pay all costs and expenses of new parts and accessories for replacement, including the transportation charges on the same. Lessee shall be entitled to any and all salvage from broken or worn out parts. The workers, who inspect, maintain, and repair the Aircraft shall not be considered as employees of Lessor, but shall at all times be employees of Lessee or independent contractors. Lessor shall have no control or authority to direct, employ, discharge, or pay compensation to such employees. Lessee agrees to indemnify Lessor against any liability arising from the negligent repair and maintenance of the Aircraft, as well as from the failure to repair and maintain the Aircraft, and also against any claim or liability arising out of the work, while being done, and the delivery of material to and from the place where the repair and maintenance work is performed. B. All inspections, repairs, modifications, maintenance, and overhaul work to be accomplished by Lessee shall be performed by personnel licensed to perform the work and shall be performed in accordance with the standards set by Federal Aviation Administration regulations and requirements. Lessee shall maintain all log books and records pertaining to the Aircraft during the term of this Agreement in accordance with the rules and regulations of the Federal Aviation Administration. These records shall be made available for examination by Lessor, and Lessee, at the end of the term of this Agreement, shall deliver the records to Lessor. 11. Title The registration of, and title to, the Aircraft shall be in the name of Lessor, and the Aircraft, at all times during the term of this Agreement, or any extension, shall bear United States registration markings. All responsibility and obligations in regard to the operation of the Aircraft as above owned, registered, and marked shall be borne by Lessee. The inability, if any, of Lessee to operate the Aircraft because of ownership, registration, and markings, or for any other cause, shall not affect the provisions of this Agreement. 12. Payment of Taxes Lessor shall pay or cause to be paid all taxes incurred by reason of ownership of the Aircraft during the term of this Agreement, including personal property taxes, but Lessee shall pay all operating taxes, fees, and charges, including gasoline sales taxes, and any tax or fee assessed or charged for the use of any airport or facilities or for the use of premises occupied in forced landings. 13. Assignment Lessee shall not assign this Lease or any interest in the Aircraft, or sublet the Aircraft, without the prior written consent of Lessor. Subject to the foregoing, this Lease inures to the benefit of, and is binding on, the heirs, legal representatives, successors, and assigns of the parties. 14. Accident and Claim Lessee shall immediately notify Lessor of each accident involving the Aircraft, which notification shall specify the time, place, and nature of the accident or damage, the names and addresses of parties involved, persons injured, witnesses, and owners of properties damaged, and such other information as may be known. Lessee shall advise Lessor of all correspondence, papers, notices, and documents received by Lessee in connection with any claim or demand involving or relating to Aircraft or its operation, and shall aid in any investigation instituted by Lessor and in the recovery of damages from third persons liable for the same. 15. Return of Plane to Owner On the termination of this Lease by its expiration or otherwise, Lessee shall return the Aircraft to Lessor at _____________________________________________ ________________________ (location) in as good operating condition and appearance as when received, ordinary wear, tear, and deterioration excepted, and shall indemnify Lessor against any claim for loss or damage occurring prior to the actual physical delivery of the Aircraft to Lessor. 16. Default If Lessee fails to make any payment of rent or other charges within _____ days after such amounts are due and payable, or if Lessee fails to comply with any provision of this Agreement, Lessor shall have the right to take possession of the Aircraft wherever it may be located, without demand or notice and without any court order or other process of law and to pursue any other remedy available to Lessor at law or in equity. In the event of such default by Lessee, Lessor, at Lessor's option, may terminate this Agreement. Notwithstanding any repossession or other action that Lessor may take, Lessee shall be and remain liable for the full performance of all obligations on the part of Lessee to be performed under this Lease. Lessor's waiver of any default on the part of Lessee shall not constitute a waiver of subsequent defaults. 17. Severability The invalidity of any portion of this Agreement will not and shall not be deemed to affect the validity of any other provision. If any provision of this Agreement is held to be invalid, the parties agree that the remaining provisions shall be deemed to be in full force and effect as if they had been executed by both parties subsequent to the expungement of the invalid provision. 18. Governing Law This Agreement shall be governed by, construed, and enforced in accordance with the laws of the State of _____________. 19. Notices Any notice provided for or concerning this Agreement shall be in writing and shall be deemed sufficiently given when sent by certified or registered mail if sent to the respective address of each party as set forth at the beginning of this Agreement. 20. Attorney’s Fees In the event that any lawsuit is filed in relation to this Agreement, the unsuccessful party in the action shall pay to the successful party, in addition to all the sums that either party may be called on to pay, a reasonable sum for the successful party's attorney fees. 21. Mandatory Arbitration Any dispute under this Agreement shall be required to be resolved by binding arbitration of the parties hereto. If the parties cannot agree on an arbitrator, each party shall select one arbitrator and both arbitrators shall then select a third. The third arbitrator so selected shall arbitrate said dispute. The arbitration shall be governed by the rules of the American Arbitration Association then in force and effect. 22. Entire Agreement This Agreement shall constitute the entire agreement between the parties and any prior understanding or representation of any kind preceding the date of this Agreement shall not be binding upon either party except to the extent incorporated in this Agreement. 23. Modification of Agreement Any modification of this Agreement or additional obligation assumed by either party in connection with this Agreement shall be binding only if placed in writing and signed by each party or an authorized representative of each party. 24. Assignment of Rights The rights of each party under this Agreement are personal to that party and may not be assigned or transferred to any other person, firm, corporation, or other entity without the prior, express, and written consent of the other party. 25. Counterparts For the convenience of the parties, this Agreement has been executed in several counterparts, which are in all respects similar and each of which shall be deemed to be complete in itself so that any one may be introduced in evidence or used for any other purpose without the production of the other counterparts. Immediately following endorsement of the consenting parties, counterparts will be furnished to the consenting parties so that each may be advised of the rights, privileges, and benefits that this Agreement confers. 26. In this Agreement, any reference to a party includes that party's heirs, executors, administrators, successors and assigns, singular includes plural and masculine includes feminine. WITNESS our signatures as of the day and date first above stated. ____________________________ (Name of Lessor) ________________________ By:_________________________ (P rinted name) _________________________ ________________________ (P rinted name & Office in Corporation) (Signature of Lessee) __________________________ (Signature of Officer) Attach Schedule A (Acknowledgment form may vary by state)