Fill and Sign the Aircraft Lease Form 497331513

Aircraft Lease Agreement with Lessee to Supply New Engine in Exchange for Flight Hours and take a Security Interest in Engine 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) upon completion of engine replacement. All fuel and maintenance costs will be the responsibility of Lessor. 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 Lessee’s term will expire on the date that Lessee has accrued ______ hours of flight time in Aircraft. 3. Rent and Assignment of Engine as Credit for Rent A. 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, with no minimum flying requirement. B. Lessee is assigning by separate instrument, to Lessor, the following Engine to be used in said the Aircraft: (description of Engine) _______________ _______________________________________________________________________ . As consideration for said assignment, Lessee shall have _____ flight hours at no cost or rent with all expenses paid to include, but not limited to fuel, oil, maintenance, hangar/tie down fee’s, loan or insurance fee’s. It is agreed that Lessee will fly no more than ____ hours in a given month. If Lessee flies over the _____ hour monthly agreement, each additional hour will be one flying hour against the remaining balance of said 330 flight hours. Lessee shall retain a security interest in said Engine by separate agreement. C. If Lessee dies or becomes permanently disabled before the _______ (number) flying hours have been completed, Lessor agrees to pay the remaining balance of flying hours at a rate of $_____ per over ___ years, with payments due on or before the first day of each month following the death or permanent disability of Lessee. The phrase permanently disabled means Lessee becomes physically impaired, loses the ability to fly, and/or is unable to fly in any way. 4. Unavailability of Aircraft If, for any reason, the Airplane is unavailable for longer than a ______ (number) month period, for any reason, including, but not limited to break down, being under maintenance, out of the geographical area of (describe) ________________________ _____________________________________________ , is sold, leased and/or out of the possession of Lessor, then Lessor agrees to pay Lessee the remaining balance of flying hours at a rate of $_________ per over ______ years, with payments due on or before the first day of each month following the end of said _______ (number) month period. 5. Restrictions on Use A. 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. Initial payments will be charged against the balance of 330 flying hours. 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. 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. 6. 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. 7. 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. 8. Maintenance and Repair A. Lessor, at Lessor'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. Lessor shall pay all costs and expenses of new parts and accessories for replacement, including the transportation charges on the same. Lessor 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 Lessee, but shall at all times be employees of Lessor or independent contractors. Lessor agrees to indemnify Lessee 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 Lessor 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. Lessor 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 Lessee. 9. 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. 10. 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, excluding 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. 11. 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. 12. 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. 13. Governing Law This Agreement shall be governed by, construed, and enforced in accordance with the laws of the State of ____________. 14. 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. 15. 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. 16. 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. 17. 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. 18. 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. 19. 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. 20. 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)