This Agreement may be used as a resource for customized contract development although it is recommended that this be supported by independent research on the suitability of its content for the specific requirements of implementers. It is not intended to provide legal advice and must not be relied upon as such. This Lease is provided “as is” and without warranties (whether express or implied), and any damages resulting from its use are disclaimed.
AIRCRAFT LEASE AGREEMENT
THIS AIRCRAFT LEASE AGREEMENT is made and entered into this ___ day of ____________ by and between _______________________________ hereinafter called LESSOR and ___________________________________, hereinafter called LESSEE.
WHEREAS, LESSOR is the owner of a certain _________________________, Serial Number _____________, hereinafter, Aircraft, having registration number N_________ issued by the Federal Aviation Administration; and
WHEREAS, LESSOR desires to lease to LESSEE, and LESSEE desires to lease from LESSOR, the Aircraft according to the terms and conditions hereinafter provided.
NOW, THEREFORE, the parties hereby agree as follows:
1. Lease. LESSOR hereby leases to LESSEE for the term hereinafter stated and LESSEE agrees to pay LESSOR the sum of $_____ per _____, payable in arrears on the first day of each month following the Aircraft’s use. The time of utilization shall be computed as read from the flight time meter which is installed in the Aircraft.
2. Term. The term of this Lease shall commence on the date hereof, and shall continue for one year thereafter. Thereafter, this Lease shall automatically renew for successive one year periods, provided either party may terminate this Lease on thirty days written notice or unless earlier terminated as hereinafter provided. Any failure to pay the rent or other charges when due or the failure to perform any other covenants shall cause the Lease to be terminated if the defaulting party does not cure such default within thirty days of receiving written notification from the non-defaulting party.
3. Operation. The scheduling, usage, and operation of the Aircraft when operated under this Lease shall be under the supervision and control of LESSEE. The aircraft will be utilized for and on the account of LESSEE’s own business and will not be utilized for the purpose of providing transportation of cargo or passengers in air commerce for compensation or hire unless LESSEE holds appropriate authority to do so.
4. Personnel. It shall be the responsibility of LESSEE to contract for and provide a flight crew, duly qualified in accordance with applicable Federal Aviation Regulations, and accepted and approved by the underwriter providing insurance coverage as stated herein. LESSOR shall provide LESSEE with a current list of flight crew personnel who meet all of the above listed requirements and update any changes to that list as necessary.
5. Maintenance. LESSOR shall be solely responsible for the securing of
maintenance, preventive maintenance, and required or otherwise necessary inspections of the Aircraft.
6. Expenses. LESSEE shall be responsible, at it’s own expense, for all costs
and fees associated with LESSEE’s use of the Aircraft including catering, crew expense and any other miscellaneous costs.
7. Fuel. LESSEE shall pay for all fuel used by LESSEE while utilizing the Aircraft under this lease agreement.
8. Taxes. LESSOR shall be responsible for the payment of taxes, including specifically personal property and ad valorem taxes, and registration fees imposed on the aircraft.
9. Base. For the purpose of this agreement, the permanent base of operation
for the Airplane shall be the __________________________ Airport.
10. Insurance
(a) Responsibility for Payment. LESSOR shall procure and pay for liability insurance coverage, insuring LESSOR, its employees, officers and directors, and LESSEE, including its employees, officers and directors, as additional insureds. Such insurance shall provide coverage against all liability for loss, injury, damages, or claims caused by or arising out of or in connection with this Lease, or with possession, operation, operation or control by LESSEE of the Aircraft during the term hereof, including injuries to or death of passengers, injuries to or deaths of third persons and damage to property up to a limit of ___________Dollars ($_____) as a result of any one occurrence LESSOR shall procure and pay for all-risk aircraft flight and ground hull insurance, insuring against any all loss of or damage to the Aircraft including war risk coverage.
(b) Additional Policy Terms. The insurance policy or policies set forth in this Paragraph 10 shall: (1) provide that the value of the aircraft is $__________________ USD; (2) be primary and without right of contribution from other insurance which may provide coverage to LESSOR or LESSEE with respect to its interest in the Aircraft or with respect to or arising out of the transactions contemplated by this Lease; (3) expressly provide that all the provisions thereof, except the agreed values and the limits of the liability of the insurer under such policy, shall operate in the same manner as if there were a separate policy covering each insured; and (4) waive any right of the insurers to any subrogation, setoff, recoupment, counterclaim or any other deduction, whether by attachment or otherwise, in respect of any liability of LESSEE or any other additional insured.
(c) Insurance as Sole Remedy. The insurance provided for in this Lease shall be LESSOR’s sole remedy for any damage to the Aircraft. LESSEE shall not be responsible or liable to LESSOR for any damages, including but not limited to, ordinary wear and tear, mechanical and/or electrical breakdown, diminution of value of the Aircraft or damages excluded from insurance set forth in this Lease.
11. Assignment. The parties hereto agree that this Lease shall not be assigned, nor the Aircraft sublet in any manner.
12. Governing Law. This Lease shall in all respects be governed by, and construed in accordance with the laws of ____________.
13. Entire Agreement. This Lease is the entire agreement between the parties, and supersedes any agreement heretofore entered into between the parties relating to the leasing of the Aircraft, and is not subject to amendment or modification except those made in writing and signed by a duly authorized officer or agent of each party.
IN WITNESS WHEREOF, the parties hereto have set their hand, as of the date first above written.
LESSOR:
By:_____________________________
Title:___________________________
LESSEE:
By:______________________________
Title:_____________________________