Fill and Sign the Aircraft Lease for Successive Terms Form

Aircraft Lease for Successive Terms Lease Agreement made __________________________________ (date) between _________________________________________________________ (Company), having its principal place of business at _______________________________________ ________________________________________________________________________ ____________________________________ (street address, city, county, state, zip code), ___________________________________ (Lessor), of __________________________ ________________________________________________________________________ ___________________________________ (street address, city, county, state, zip code), ___________________________________ (Lessee). In consideration of the mutual promises contained in this Agreement, the parties agree as follows: I. Lease of Aircraft Lessor hereby leases to Lessee, in accordance with the rental and on the terms and conditions contained in this Agreement, the aircraft, its accessories and equipment (collectively the leased property) described in Exhibit A, attached to and, by this reference, incorporated in this Agreement, upon the following terms and conditions: A. First Term Lessor hereby leases the leased property to Lessee for a term of months, beginning on the day of delivery of the leased property and ending at the expiration of ______ months after such date. B. Second Term Lessor hereby leases the leased property to Lessee for a term of months beginning at the expiration of the first term referred to above and subsequently renewable for successive terms of _____ months each, but not to exceed _____ renewal terms, at the option of Lessee. At any time during the second term, or any renewal of such term, Lessee or Lessee's assigns shall be entitled to cancel this Lease on first giving ____days' written notice prior to the date as of which cancellation is desired to be effective. This cancellation provision shall not apply to the first term of this Agreement. II. Rent A. For the use of the aircraft, its accessories and equipment, lessee agrees to pay to Lessors rent in the amount and manner described in the attached Exhibit B, incorporated by reference. B. Such payments shall be made at the office of Lessor at the address set forth above, or if rentals due or to become due are assigned, at the principal office of the assignee. Such payment shall be made in sufficient time to reach the designated place of payment so that the payment can be collected on or before the due date. Interest shall be paid on each delinquent installment of rent, from the due date until the payment shall have been collected at the designated place of payment at the rate of _____% per year. III. Inspection and ExaminationLessor and any insurance company or companies insuring the leased property are given the right and privilege, from time to time, to inspect the leased property, and to examine the books and records relating to the leased property, on the premises of Lessee, or wherever located, if, in the sole judgment of Lessor or insurer, the inspection is deemed necessary. IV. Permanent Base of Aircraft A. Lessor shall deliver the aircraft to Lessee at ________________________ ________________________________________________________________________ ___________________________________ (street address, city, county, state, zip code). Lessee agrees to use the aircraft in the areas as specified in the insurance policy or policies applicable to the aircraft as described in Exhibit C, attached to this Lease and incorporated herein by reference. B. The aircraft shall be permanently based at _________________________ __________________________________________________________________________________________________________ (street address, city, county, state, zip code) , and such permanent base location shall not be changed without the prior, express, and written consent of Lessor and any holder of any security interest in the leased property. V. Compliance with Lease Lessee agrees to accept this Lease on the terms set forth, to pay the rentals and other charges provided, and to comply with all of the other terms of this Agreement. VI. Maintenance of Aircraft Lessee agrees, at its own cost and expense, to maintain the leased property in mechanical condition adequate to comply with the laws, rules, orders, ordinances, and regulations of the United States of America, its territories or possessions, the individual states of the United States, its territories or possessions, or states of the United States in which the leased property shall be used or operated, or such other countries in which Lessee shall operate the leased property in accordance with the terms and conditions of the insurance carrier. VII. Repairs, Alterations, and Modifications A. During the term of this Lease, Lessee, at its own cost and expense, agrees to make all alterations, modifications, and repairs (including replacement parts) to leased property that shall be necessary to keep and maintain it at all times in first class mechanical condition and repair, and any condition and repair necessary to comply with the terms of the insurance carrier, or the Federal Aviation Administration, or the Department of Transportation, or its successor. Any alterations, modifications, equipment installations, or replacements made by lessee shall become and remain the property of Lessor at the expiration of this Lease, in the same manner as though the alterations, modifications, equipment installations, or replacements were in or on the leased property at the time of the commencement of this Lease.B. Wherever practicable all repairs, servicing, and replacements of the leased property shall be made under the direct supervision of the repair facility approved by the manufacturer of the leased property, except such repairs, servicing, or replacements that are of an emergency character. VIII. Fuel and Oil; Storage; Painting Lessee agrees to furnish at its own cost and expense all fuels, oils, lubricants, and other materials necessary for the operation of the leased property, to pay all storage and hangar charges, and to keep the painting and lettering of the leased property in good condition, so that it will present a neat appearance at all times. IX. Major Alterations or Modifications Lessee agrees not to make or cause to be made any major or structural alterations or modifications of the property leased under this Agreement without the prior, express, and written consent of Lessor and any holder of a security interest in the leased property. X. Pilots Lessee agrees to operate the aircraft leased to Lessee under this Lease only with a safe, careful, and licensed pilot to be selected, employed or contracted for, controlled and paid by lessee, such pilots being conclusively presumed to be the agents of Lessee only. Lessee shall require pilots to operate the aircraft with reasonable care and diligence, and to use every reasonable precaution to prevent loss or damage to the aircraft, and to prevent injury to third persons, or property of third persons; and on written complaint from Lessors specifying any reckless or abusive handling of the aircraft leased under this agreement, Lessee shall remove any such pilot and substitute a careful and safe pilot, as soon as it is reasonably possible to do so. XI. Punctuality in Payments Lessee agrees that punctuality in the payments of the rentals and other charges stipulated in this Lease shall be of the essence of this Lease, and such rental payments and other charges cannot be waived or extended for any cause whatever, except as expressly provided for in this Agreement. XII. Compliance with Laws A. Lessee agrees to comply with all of the laws, rules, orders, ordinances, and regulations of the United States of America, its territories or possessions, and of any other country, state, municipality, or any duly-constituted authority regarding the use, operation, or possession of an aircraft, and will indemnify Lessor from any and all fines, forfeitures, or penalties arising out of any violation. B. Lessee further agrees not to use or operate the leased property in violation of any such law, rule, ordinance, orders, or regulations. C. Lessee shall be liable to Lessor for the loss of any of the leased property caused by the confiscation of it by any public authority by reason of illegal use of the leased property by Lessee or its agents, servants, or employees. On any such confiscation all rentals remaining due under this Lease for any aircraft confiscated shall become legally due and payable, in addition to other remedies of Lessor or either of them to enforce rights and claims arising by reason of the confiscation. XIII. Assignment of Lease A. Lessee agrees that it will not, during either the first or second term of this Lease or any renewal, assign this Lease or any interest in it or sublease of the leased property or any of it without the prior written consent of Lessor. Such consent will not, in any event, be unreasonably withheld. During any term Lessee will not assign, pledge, or encumber the leased property in any manner or permit liens to become effective on the property. B. If any lien, attachment, levy, or other encumbrance of any kind is levied or placed or threatened to be levied or placed on or against the leased property, Lessee will immediately send the Lessors written notice and will indemnify Lessors against any and all expenses, including, but not limited to, those arising out of any lawsuit and damage incurred or caused by any such lien, attachment, levy, or other encumbrance. XIV. Transfer on Termination Lessee agrees that, on termination of this Lease for any cause, Lessee will promptly return the leased property to Lessor in the same condition in which it was received by Lessee, ordinary wear and tear and natural depreciation and loss or damage for which Lessor is reimbursed by insurance excepted; and will promptly execute any and all papers necessary to effect the transfer to Lessor. XV. Identification of Aircraft Lessee agrees that it will attach to the outside of the body of the leased aircraft a stencil or plaque in a manner to comply with the laws, if any, of the United States of America, its territories or possessions, or any state or country where licensed and operated, to protect and show the interest of Lessor. XVI. Taxes A. Lessee agrees to pay when due all personal property taxes, sales taxes, use taxes, taxes on lease rentals, sales consummation taxes, any special taxes imposed or charges of any kind on or in respect to the leased property for the use, operation, or possession of it, and other taxes applicable to the leased property, except net income and franchise taxes of Lessor, that become effective during the term of this Lease. B. In respect to any such taxes or charges assessed or imposed directly against Lessee, Lessee agrees to furnish satisfactory evidence to Lessor of the paying of such taxes or charges. C. In respect to any such taxes or charges assessed or imposed directly against Lessor, or taxes or charges assessed or imposed directly against Lessee which Lessor, for any reason, shall be compelled to pay, Lessee agrees, except as provided in this lease, to pay the taxes or charges, within days after receiving a bill from Lessor for the taxes or charges. If Lessee fails to pay such bill, together with all penalties and forfeitures imposed, within such time, the unpaid bill shall bear interest at the rate of _______% per year commencing at the end of the above-stated -day period. D. Lessee shall have the right to dispute or contest in good faith, and at Lessee's expense, the payment of any such taxes or charges assessed or imposed directly against Lessor or Lessee. During the period that any such taxes or charges are being contested in good faith, payment of the contested taxes or charges in accordance with the terms of this Lease may be delayed until final determination has been made of the amount due. XVII. Cooperation with Lessor Lessee agrees to execute and deliver to Lessor any and all instruments and documents that may be reasonably necessary to protect Lessor’s interest under this Lease or the interest of any holder of a security interest in the leased property. XVIII. Recording and Registration Fees A. Lessee agrees to pay licensing, registering, and recording fees, including fees for the proper recording or registering of this Lease or any assignments of the Lease and any security instrument that Lessor may give as security to any assignee of Lessor. Lessor may, but shall not be obligated to, pay licensing, registering, or recording fees, and in that event shall add the amount of the payments to the next rental installment as a part of the same, together with interest at the rate of ______% per year on the amount of the payment. B. Lessor, on Lessee's written request, accompanied by payment in full, shall purchase any licenses necessary for the use and operation of the leased property. XIX. Indemnification of Lessors Lessee agrees, except with respect to an insured loss to the property leased under this agreement to the extent of the collectible insurance, to indemnify Lessor against any and each loss, claim, or liability, regardless of the nature, including attorney's fees and other expenses or liabilities, imposed by law or otherwise, on Lessor arising out of the use or operation of the leased property during the period the aircraft is leased under this Lease. XX. Insurance A. During the lease terms as specified in Paragraph I of this Lease, and any renewal as provided in this agreement, Lessor shall provide insurance coverages on the leased property in the following limits: (describe coverage) _______________________ ________________________________________________________________________________________________________________________________________________ ________________________________________________________________________ _______________________________________________________________________.B. At Lessee's option, Lessor shall also provide, if obtainable, other types of insurance coverage requested by Lessee. Premiums for additional insurance coverages shall be paid by Lessee and, if effective at the inception of this Lease, shall be included in the rental as shown in Exhibit B, attached to and made a part of this Lease. C. The insurance policy or policies providing coverages under Subparagraph A of this Paragraph XX shall protect the interest of Lessee and Lessor, and any holder of a security interest in the property leased under this Lease. Lessee agrees as the actual user of the leased property to abide by all the terms and conditions of the policy or policies on its part to be performed. Lessee agrees also not to use the leased property for any purpose, which is excluded or prohibited under such insurance policy or policies. D. In the event of cancellation of the insurance policy or policies providing coverages outlined in Subparagraph A of this Paragraph XX , for any causes whatever, Lessee authorizes Lessor to provide substitute insurance policy or policies providing the coverage as outlined in said Subparagraph A, protecting the interest of Lessee and Lessor, and any holder of any security interest in the property leased under this Lease. Lessor will adjust the monthly rental shown in Exhibit A, attached to this Agreement, by the amount attributable by Lessor to insurance premiums for such policies, commencing with the next monthly rental installment after Lessor has provided such insurance policy or policies. E. In the event of an increase in premium of the insurance policy or policies, Lessee authorizes Lessor to adjust the monthly rental shown in Exhibit A by the amount attributable by Lessor to insurance premiums for such policies, commencing with the next monthly installment up to the date of the premium increase. F. If at any time during the leased term as specified in Paragraph I of this Lease, and any term renewal as provided in this Lease, it is not possible to provide insurance coverage in accordance with the requirements stated in this Agreement acceptable to Lessor, the Lease may then be canceled by Lessor. Lessee agrees to follow strictly the requirement stated in any applicable insurance policy or policies pertaining to the operation of the aircraft and further agrees not to so act or to fail to act as to cause the insurance coverage to be impaired. A violation of any of these agreements shall entitle Lessor to cancel the Lease in addition to any other remedies provided by law. G. Lessors reserve the right to procure additional insurance to protect their interest in the event the insurance referred to in this section of this Lease is not available to Lessor because of the failure of Lessee to comply with the terms and conditions of the policy, or policies, of insurance referred to in of this Lease. Such additional insurance shall not inure to the benefit of Lessee nor shall it satisfy the obligation of Lessee to indemnify Lessor its assigns in accordance with Paragraph XIX of this Lease. XXI. Title to PropertyThe leased property at all times shall remain and be the sole and exclusive property of Lessors. Lessee shall have no rights of property in the leased property but only the right to use the property on the conditions set forth in this agreement. XXII. Termination for Bankruptcy or Involuntary Assignment Lessor shall have the right to terminate this Lease, without notice to Lessee, if Lessee shall file a voluntarily petition in bankruptcy, shall make an assignment for the benefit of creditors, or shall be voluntarily or involuntarily adjudicated as bankrupt by any court of competent jurisdiction; or if voluntary or involuntary proceedings for reorganization are filed by or against Lessee, or if a receiver shall be appointed for Lessee's business and is not discharged within days, or if Lessee shall have permitted or suffered any lien, distress, attachment, levy, or execution to attach to or to be made levied against any or all of the property of Lessee, not promptly discharged. If Lessor shall elect to terminate this Lease by reason of any of the events described in this Lease, the entire unpaid rental shall become immediately due and payable. XXIII. Default for Nonpayment of Rentals A. If Lessee shall fail to make any of the rental or other payments provided in this Agreement, or fail to comply with any of the other terms and conditions of this Lease and the failure to comply with any of the other terms and conditions of this Lease shall continue for ______ days after written notice from Lessor to Lessee, Lessor shall have the right at their option, cumulative of all other rights, to declare this Lease in default and declare the entire unpaid rental immediately due and payable. At any time that Lessee is in default under any of the terms and conditions of this Lease, by declaration or otherwise, Lessor may take possession of the leased property, including all parts, accessories, and equipment, and after such possession is taken all of Lessee's rights in the leased property shall then cease and terminate. B. Lessor’s remedies in place of Lessee's default shall be cumulative and Lessor may exercise any and all other lawful remedies they may have by virtue of Lessee's breach of this Lease, by declaration or otherwise. C. In the event of default and Lessor’s taking or deserving to take possession of the leased property, Lessee waives any procedure, whether statutory or otherwise, in order to immediately place the leased property in Lessor's possession. Lessee further agrees to turn over the leased property to Lessor, or its attorneys, agents, or servants, the right to enter the premises where the leased property is stored, for the purpose of securing possession of the property. XXIV. Failure of Aircraft to Function Lessor shall not be liable to Lessee for loss of use of the leased property or interruption of Lessee's business if the leased property fails to function, or to be out of use for repairs or services, or for any other cause whatever. XXV. Total Destruction of AircraftA. In the event of the total destruction of the leased aircraft, the term created, or any renewal of it, shall terminate immediately, and, subject as provided below, Lessee and Lessor shall then be relieved of any further obligation related to the surrender of the aircraft. B. The net proceeds of insurance carried on the leased aircraft pursuant to the provisions of Paragraph XX shall, in the event of the total destruction of the leased aircraft, be made payable and shall be paid to Lessor. If lessee elects within days of such total destruction to enter into a lease with Lessor substantially identical with this Lease, in respect of a different aircraft, the rental payable under the new Lease shall be calculated using a cost factor of the difference between the net insurance proceeds and the acquisition cost to Lessor of the different aircraft that will form the subject matter of the Lease. C. Net insurance proceeds , as used in Agreement, is defined as the amount received from the insurance company less any liens on the aircraft. XXVI. Entire Agreement This Agreement constitutes 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 on either party except to the extent incorporated in this Agreement. XXVII. 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 in writing signed by each party or an authorized representative of each party. XXVIII. No Waiver The failure of either party to this Agreement to insist on the performance of any of the terms and conditions of this Agreement, or the waiver of any breach of any of the terms and conditions of this Agreement, shall not be construed as subsequently waiving any such terms and conditions, but the terms and conditions shall continue and remain in full force and effect as if no such forbearance or waiver had occurred. XXIX. Governing Law This Agreement shall be governed by, construed, and enforced in accordance with the laws of the state of ___________________________. XXX. Notices A. All notices required to be given under the terms of this Lease, or that any party to this Agreement may desire to give to the other, shall be in writing, signed by or on behalf of the party giving the same, and sent by United States registered mail addressed to the other party. All notices from Lessor to Lessee shall be addressed to Lessee at ________________________________________________________________ ________________________________________________________________________ (street address, city, county, state, zip code), or at such other address as Lessee shall furnish to Lessor, in writing. B. All notices from Lessee to Lessor shall be addressed to Lessor at ________________________________________________________________________________________________________________________________________________ (street address, city, county, state, zip code) , or such other address as Lessor shall furnish to Lessee in writing. XXXI. Binding Effect This Lease shall be binding on the parties, their successors, legal representatives, and assigns; but Lessee shall not have the right to assign this Lease, or any interest in it, except as provided in Paragraph XIII of this Lease. XXXII. Effect of Partial Invalidity 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. XXXIII. 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. WITNESS our signatures as of the day and date first above stated. ______________________________ COMPANY ________________________________ By: __________________________ LESSEE ______________________________ (Name & Office in Corporation) [Acknowledgments] [Attach exhibits]