AIRCRAFT LEASE AGREEMENT

LEASE TYPE DESIGNATION

This is a:

☐ DRY LEASE - Lessor provides Aircraft only; Lessee provides crew and maintains operational control

☐ WET LEASE - Lessor provides Aircraft and at least one crewmember; Lessor maintains operational control

WARNING: Wet leases require the Lessor to hold an appropriate FAA air carrier certificate (Part 121 or Part 135) unless conducted under an exception such as time-sharing under 14 CFR 91.501.

PARTIES

LESSOR (Owner):

Name/Entity: [________________________________]

Address: [________________________________]

City: [________________] State: [____] Zip: [__________]

Phone: [________________] Email: [________________________________]

☐ Individual ☐ Corporation ☐ LLC ☐ Partnership ☐ Trust

FAA Certificate (if applicable): ☐ Part 91 ☐ Part 121 ☐ Part 135 ☐ Part 125

Certificate Number: [________________]

LESSEE (Tenant):

Name/Entity: [________________________________]

Address: [________________________________]

City: [________________] State: [____] Zip: [__________]

Phone: [________________] Email: [________________________________]

☐ Individual ☐ Corporation ☐ LLC ☐ Partnership ☐ Trust

FAA Certificate (if applicable): ☐ Part 91 ☐ Part 121 ☐ Part 135 ☐ Part 125

Certificate Number: [________________]

AIRCRAFT DESCRIPTION

Make: [________________________________]

Model: [________________________________]

Year: [________]

Serial Number: [________________________________]

FAA Registration Number: N[________________]

Total Time Airframe: [__________] hours as of [__/__/____]

Maximum Certificated Takeoff Weight: [__________] lbs.

Aircraft Base Location: [________________________________]

☐ Large Aircraft (over 12,500 lbs. MTOW) - Truth in Leasing requirements apply

LEASE TERM

Commencement Date: [__/__/____]

Expiration Date: [__/__/____]

Initial Term: [____] months/years

Renewal Options:

☐ No renewal option

☐ Lessee may renew for [____] additional term(s) of [____] months/years each

Renewal Notice Required: [____] days prior to expiration

Early Termination:

☐ Either party may terminate with [____] days written notice

☐ Early termination penalty: $[__________]

☐ Termination for cause only (breach, bankruptcy, loss of FAA certificate)

LEASE PAYMENTS

Section 1 - Base Rent

Monthly Rent: $[__________] due on the [____] day of each month

OR

Hourly Rate: $[__________] per flight hour

☐ Minimum monthly hours guaranteed: [____] hours

☐ Minimum monthly payment: $[__________]

Section 2 - Security Deposit

Security Deposit Amount: $[__________]

Due Upon Execution: ☐ Yes ☐ No - Due by [__/__/____]

Deposit Applied To: ☐ Last month's rent ☐ Damage/default only ☐ Returned at end of term

Interest on Deposit: ☐ None ☐ [____]% per annum

Section 3 - Additional Charges

Section 4 - Payment Method

Payments shall be made by: ☐ Check ☐ Wire Transfer ☐ ACH ☐ Other: [________]

Payable To: [________________________________]

Remit To Address: [________________________________]

Wire Instructions: [________________________________]

OPERATIONAL CONTROL

Section 5 - Operational Control Declaration

THE PARTY HAVING OPERATIONAL CONTROL OF FLIGHTS UNDER THIS LEASE IS:

☐ LESSOR (Wet Lease arrangement - Lessor must hold appropriate certificate)

☐ LESSEE (Dry Lease arrangement)

The party exercising operational control:

• Initiates, conducts, and terminates flights
• Assigns crewmembers and aircraft
• Accepts flight requests
• Ensures crew training and qualifications
• Ensures aircraft airworthiness
• Arranges for maintenance
• Is responsible for regulatory compliance

Section 6 - Lessee Certification (Dry Lease Only)

Lessee certifies that:

☐ Lessee understands that Lessee is responsible for operational control

☐ Lessee understands applicable Federal Aviation Regulations

☐ Lessee will operate Aircraft in compliance with 14 CFR Part 91

☐ Lessee will ensure all pilots meet regulatory requirements

☐ Lessee will not operate Aircraft in a manner requiring Part 121 or Part 135 certification without holding such certificate

AIRCRAFT USE RESTRICTIONS

Section 7 - Permitted Use

Aircraft may be used only for:

☐ Personal/business transportation of Lessee
☐ Carriage of Lessee's employees, guests, and property
☐ Demonstration flights (with Lessor approval)
☐ Training (with Lessor approval)
☐ Other: [________________________________]

Section 8 - Prohibited Use

Aircraft shall NOT be used for:

☐ Commercial charter operations (without Part 135 certificate)
☐ Carriage of persons or property for compensation (unless permitted)
☐ Flight instruction for hire
☐ Any illegal purpose
☐ Operations outside the United States without prior written approval
☐ Operations that void or impair insurance coverage
☐ Aerobatic flight
☐ Formation flight
☐ Racing or speed trials
☐ Towing
☐ Other: [________________________________]

Section 9 - Geographic Limitations

Operations limited to:

☐ United States (50 states)
☐ United States, Canada, Mexico
☐ North America and Caribbean
☐ Worldwide (with prior notice)
☐ Specific area: [________________________________]

MAINTENANCE

Section 10 - Maintenance Responsibilities

A. Routine/Scheduled Maintenance:

☐ Lessor responsible - at Lessor's expense
☐ Lessee responsible - at Lessee's expense
☐ Lessee responsible - Lessor reimburses per Section 10C

B. Unscheduled Maintenance/Repairs:

C. Reimbursement Terms:

☐ Lessor shall reimburse Lessee $[____] per flight hour toward maintenance reserve
☐ Lessee shall pay maintenance reserve of $[____] per flight hour

D. Approved Maintenance Facilities:

☐ Lessee may use any FAA-certified repair station
☐ Maintenance must be performed by: [________________________________]
☐ Prior Lessor approval required for repairs exceeding $[__________]

Section 11 - Maintenance Records

☐ Lessee shall maintain all logbooks and records in accordance with 14 CFR 91.417

☐ Lessee shall provide Lessor with copies of all maintenance records within [____] days

☐ Original logbooks remain with ☐ Aircraft ☐ Lessor

CREW (Wet Lease Only)

Section 12 - Crew Provision

☐ Lessor shall provide the following crew:

☐ All crew shall meet applicable 14 CFR Part 61 and Part 91 requirements

☐ Crew substitution permitted with [____] hours notice and equivalent qualifications

INSURANCE

Section 13 - Insurance Requirements

A. Liability Insurance:

Minimum Coverage: $[__________] combined single limit

☐ Lessor shall maintain ☐ Lessee shall maintain

Named Insureds: ☐ Lessor ☐ Lessee ☐ Both

Additional Insureds: [________________________________]

B. Hull Insurance:

Coverage Amount: $[__________] (agreed value)

☐ Lessor shall maintain ☐ Lessee shall maintain

Deductible:
- In-motion: $[__________]
- Not-in-motion: $[__________]

☐ Lessee responsible for deductible amounts

C. Certificate of Insurance:

☐ Certificate of insurance must be provided before commencement

☐ Certificate must include [____] days notice of cancellation provision

☐ Lender/Lessor loss payee endorsement required

Section 14 - Insurance Claims

In the event of loss or damage:

☐ Lessee shall immediately notify Lessor and insurance carrier

☐ Lessee shall cooperate fully in claims adjustment

☐ Insurance proceeds shall be applied to repair or, if total loss, paid to Lessor

INDEMNIFICATION

Section 15 - Indemnification

Lessee shall indemnify Lessor for all claims, damages, and expenses arising from:
- Lessee's use or operation of the Aircraft
- Lessee's negligence or willful misconduct
- Lessee's breach of this Agreement
- Claims by Lessee's passengers, employees, or guests

Lessor shall indemnify Lessee for all claims arising from:
- Lessor's negligence or willful misconduct
- Defects in the Aircraft existing prior to delivery
- Lessor's breach of this Agreement

TRUTH IN LEASING COMPLIANCE (Large Aircraft Only)

Section 16 - Truth in Leasing Requirements

If Aircraft has maximum certificated takeoff weight over 12,500 lbs., the following requirements of 14 CFR 91.23 apply:

☐ A. Copy of this lease must be mailed to: FAA Aircraft Registration Branch, PO Box 25504, Oklahoma City, OK 73125 within 24 hours of execution

☐ B. A copy of this lease must be carried onboard the Aircraft at all times

☐ C. The responsible Flight Standards District Office must be notified at least 48 hours before the first flight under this lease

Responsible FSDO: [________________________________]

FSDO Phone: [________________________________]

Section 17 - Truth in Leasing Statement

THE PARTIES HEREBY CERTIFY:

a) [________________________________] (Lessee/Lessor) is responsible for operational control of the Aircraft under this lease.

b) The party exercising operational control has reviewed the applicable Federal Aviation Regulations and understands its responsibilities.

c) The party exercising operational control certifies that the Aircraft will be maintained and inspected in accordance with applicable requirements.

d) [________________________________] (Pilot in Command for first flight) certifies compliance with applicable regulations.

Lessee Signature: [________________________________] Date: [__/__/____]

Lessor Signature: [________________________________] Date: [__/__/____]

DEFAULT AND REMEDIES

Section 18 - Events of Default

The following constitute Events of Default:

☐ Failure to pay rent within [____] days of due date
☐ Breach of any material term of this Agreement
☐ Filing for bankruptcy or insolvency
☐ Loss, suspension, or revocation of FAA certificate
☐ Use of Aircraft in violation of this Agreement
☐ Damage to Aircraft due to negligence
☐ Failure to maintain required insurance
☐ Unauthorized sublease or assignment

Section 19 - Remedies

Upon Event of Default, non-defaulting party may:

☐ Terminate this Agreement immediately upon written notice
☐ Repossess Aircraft without notice or legal process (Lessor)
☐ Recover all amounts due plus costs of collection
☐ Pursue all other remedies available at law or equity

RETURN OF AIRCRAFT

Section 20 - Return Conditions

Upon expiration or termination, Lessee shall return Aircraft:

☐ To location: [________________________________]

☐ In same condition as received, ordinary wear excepted

☐ With not less than [____] hours until next required inspection

☐ With not less than [____] hours until next TBO on engines

☐ With full fuel tanks / [____] gallons of fuel

☐ Free of all liens, charges, and encumbrances

☐ With all logbooks and records current and complete

GENERAL PROVISIONS

Section 21 - Assignment and Sublease

☐ Lessee may not assign or sublease without Lessor's prior written consent

☐ Lessor may assign lease and Aircraft to successor or lender

Section 22 - Governing Law

This Agreement governed by laws of State of [________________]

Section 23 - Dispute Resolution

☐ Arbitration in [________________] ☐ Litigation in [________________]

Section 24 - Notices

All notices in writing to addresses above or as updated.

Section 25 - Entire Agreement

This constitutes entire agreement; amendments must be in writing.

SIGNATURES

LESSOR:

Signature: [________________________________]

Printed Name: [________________________________]

Title: [________________________________]

Date: [__/__/____]

LESSEE:

Signature: [________________________________]

Printed Name: [________________________________]

Title: [________________________________]

Date: [__/__/____]

EXHIBIT A - AIRCRAFT CONDITION REPORT

[Attach detailed inspection report at commencement of lease]

EXHIBIT B - EQUIPMENT LIST

[Attach detailed list of avionics and equipment]

This template is for informational purposes only and does not constitute legal advice. Aircraft leases involve complex regulatory requirements. Improper lease structures may constitute illegal charter operations. Consultation with an aviation attorney is essential.