Aircraft Lease Form

Aircraft Lease Agreement

This packet includes: General Information, Instructions and Checklist, and the Aircraft Lease Agreement.

General Information

This Aircraft Lease Agreement is between an airline or aircraft owner and a company or individual who desires to lease an aircraft. This lease sets out the specific terms including a description of the aircraft, term of the lease and the rental amounts paid under the lease. It also includes the uses for which the aircraft is leased and lessee's rights to inspect the aircraft upon delivery.

A knowledgeable business person will insist that this type of arrangement be clearly set out in writing and not left to oral interpretation. A written Aircraft Lease Agreement will prove invaluable in the event of disagreements, misunderstandings or litigation surrounding the lease agreement.

Instructions and Checklist

The parties should read the document carefully.

Insert all requested information in the spaces provided on the form.

Read the "Lease Rental" provision carefully to ensure it sets out the correct payment structure. If disagreements arise, they will likely focus on this provision.

This form includes exhibits which should be attached and incorporated as part of this agreement.

This form contains the basic terms and language that should be included in similar agreements.

This lease agreement must be signed by both the borrower and the lender.

The parties should retain either an original or copy of the signed promissory note.

All legal documents should be kept in a safe location such as a fireproof safe or safe deposit box.

Disclaimer

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AIRCRAFT LEASE AGREEMENT

This Aircraft Lease Agreement is made and executed on this the Day of (Month), (Year), by and between:

PARTIES:

1. , a company incorporated under the laws of the State of and having its principal office at represented by its (hereinafter referred to as the "Lessor").

2. , a company incorporated under the laws of the State of and having its principal office at represented by its named (hereinafter referred to as the "Lessee").

RECITALS: (Please change the recitals in accordance with your needs)

A. WHEREAS, the Lessor is involved in the business of and owns many aircrafts. The Lessor has expressed his desire to grant an Aircraft on lease on payment of certain lease amount.

B. WHEREAS, the Lessee has expressed his willingness to pay such lease amount as specified by the Lessor and acquire the Aircraft on Lease. C. Based on the same this Agreement is entered into between the Lessor and the Lessee.

1. INTERPRETATIONS

Unless the context of this Agreement otherwise requires, the headings of the clauses are for convenience only and shall be ignored in construing this Agreement.

2. EFFECTIVE DATE

The effective date of this Agreement shall be and all rights and obligations of the parties hereunder shall be effective as of that date.

3. LEASE OF AIRCRAFT

3.1 The Lessor agrees to grant on Lease an Aircraft, and the Lessee agrees to rent the Aircraft as more specifically described in Schedule A of this Agreement.

3.2 The Lessor grants the Lease of the Aircraft on the condition that the Aircraft is to be used for

3.3 The Lessor undertakes to deliver the Aircraft to the Lessee at at his own expense, at the time of entering into this Agreement.

3.4 The Lessee reserves the right to inspect the Aircraft at the time of delivery.

4. LEASE TERM

The term of this Agreement is for a period of years and the same shall commence from the effective date and end on the unless and until terminated by either of the Parties in accordance with the Termination Clause specified herein.

At the expiry of the term of lease this agreement shall be renewed on a monthly basis. At such time either party may terminate the lease by giving a written notice of days informing the intention to terminate the lease to the other party.

5. LEASE RENTAL

5.1 As consideration to this Agreement the Lessee agrees to make payments towards the Lessor with regard to the Aircraft in the following manner:

5.1.1

5.1.2

5.1.3

5.1.4

5.2 The Lease rental is to be paid by the of every calendar month to .

5.3 Penalty of is to be imposed for every delay or default in payment.

5.4 If there is any default or delay in this regard then the Lessee is placed under an obligation to inform the Lessor in writing and the Lessee can make late payments with the Lessor written permission.

6. SECURITY DEPOSIT

6.1 The Lessee agrees to deposit with the Lessor a sum of $ to guarantee the return of the Aircraft to the Lessor at the expiry of this Agreement.

6.2 At the termination of this Lease, the deposit will be returned to Lessee within days following the return of the Aircraft after deduction of any unpaid amounts towards the Lessor.

7. LESSEE COVENANTS

7.2 To take an insurance as specified below for the Aircraft:

7.2.1

7.2.2

7.2.3

7.2.4

Other covenant terms are incorporated as stated in the agreement.

8. LESSOR COVENANTS

The Lessor hereby covenants and agrees that the Lessee is entitled to the quiet enjoyment of the Aircraft without any interference or interruption by Lessor or its representatives for the term of this Lease.

9. DAMAGE TO THE AIRCRAFT

9.1 In case of any loss or damage to the Aircraft, the Lessee shall report such loss or damage to the Lessor and applicable authorities.

9.2.1 If the Aircraft is damaged beyond repair then the Lessee shall pay Lessor the amount of the insurance deductible and this Agreement shall cease to be in effect.

9.2.2 If the Aircraft is only partially damaged, this Agreement shall remain in full force and effect, and Lessee shall at its own cost and expense, repair the Aircraft.

9.2.3 If the insurance carrier does not make the payment for the damages sustained in favor of the Lessor, then the Lessee shall be placed under an obligation to repair the Aircraft at its own expense.

9.2.4 During the period that the Aircraft is being repaired, Lessee shall continue to make the monthly rental payments as and when they become due.

10. DEFAULT BY LESSEE

If the Lessee fails to make payments, defaults on obligations, fails insurance maintenance, or misuses/abandons the Aircraft, the Lessor may take possession of and remove the Aircraft forthwith with or without notice.

11. TERMINATION

11.1 The Lessor may terminate this agreement if the Lessee materially breaches any of the terms specified herein, with a notice of days.

11.2 Either of the parties may terminate this Agreement by providing a written notice of days to the other.

11.3 At the time of termination of this agreement the Aircraft is to be returned to the Lessor within days of receipt of notice of termination.

12. INDEMNIFICATION

The Lessee agrees to indemnify and to hold the Lessor, its employees, officers, agents, successors or assigns harmless from and against all claims, costs, expenses, demand, and liabilities of any nature whatsoever which may arise due to Lessee’s use or operation of the Aircraft during the term of this lease.

13. ASSIGNMENT

The Parties shall not assign or otherwise transfer any of its rights or obligations so granted and so owed by virtue of this Agreement.

14. RELATIONSHIP BETWEEN PARTIES

Each party is an independent contractor of the other party. Nothing herein will constitute a Partnership between or joint venture by the Parties, or constitute either Party the agent of the other.

15. NOTICE

To the Lessor:

Address:

Attention:

Facsimile no:

To the Lessee:

Address:

Attention:

Facsimile no:

16. AMENDMENTS OR MODIFICATION

No modification of or amendment to this Agreement will be effective unless in writing signed by authorized representatives of both Parties.

17. NO WAIVERS

The rights and remedies of the Parties to this Agreement are cumulative and not alternative.

18. SEVERABILITY

If any provision of this Agreement is held invalid or unenforceable by any court of competent jurisdiction, the other provisions of this Agreement will remain in full force and effect.

19. EXECUTION IN COUNTERPARTS

This Agreement may be executed in counterparts, each of which will be deemed an original, but all of which together will constitute the same Agreement.

20. GOVERNING LAW AND FORUM

The validity, construction, interpretation of this Agreement shall be governed by and construed in accordance with the laws of the State of .

The parties hereby consent and agree to the exclusive jurisdiction of the state and federal courts located in for all suits, actions or proceedings arising out of or relating to this agreement.

21. ENTIRE AGREEMENT

This Agreement and Schedules A & B provided herein constitute the entire Agreement between the parties with respect to the subject matter contained herein.

IN WITNESS WHEREOF, the parties have executed this Agreement under seal as of the day and year first written above.

SCHEDULE A

AIRCRAFT SPECIFICATION

SCHEDULE B

OPERATIONAL SPECIFICATIONS