Exhibit No. 10.11
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CLB Lease
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LEASE AGREEMENT
This lease agreement made and entered into on the first day of May, 2000,
by and between Alpine Aviation, Inc., d/b/a/ as Alpine Air, hereinafter
referred to as "Lessee", and CLB Corporation hereinafter referred to as
"Lessor". Lessor agrees to lease to Lessee and Lessee agrees to lease from
Lessor, subject to the terms and conditions and for the consideration herein
set out, the following described aircraft: (See Attached Schedule).
Article I Term
The term of this lease shall be for a period of at least Thirty (30) days
commencing on May 1, 2000 and ending with a 30 day notice.
Article II - Rent
In consideration for the lease of said aircraft, Lessee shall pay Lessor
rental according to the attached schedule. This amount payable at the offices
of the Lessor, or at the office of the Assignee of the Lessor as hereinafter
provided, on the fifth day of each month . In the event such payments are not
received on the due date, a service charge in the amount of one percent (1%)
of the rental payment shall be added to payment owed, for each day said
payment is late. A deposit equal to one (1) months rent shall be paid by
Lessee at lease inception, and shall constitute the fully- earned final month
lease payment.
Article III - Delivery and Return
The aircraft will be delivered to Lessee at Provo, Utah, and shall be
returned to Lessor at Provo, Utah on the date set for termination of this
lease agreement as specified in Article I. All expenses of delivery and
return will be borne by Lessee.
Article IV - Base of Aircraft
Lessor and Lessee agree that the aircraft shall be permanently based at
Provo, Utah. Lessee shall not make any change to the permanent base without
notifying Lessor in writing.
Article V - Condition of Aircraft
Acceptance and delivery of the aircraft by Lessee in the time and manner
herein provided, acknowledges by Lessee that said aircraft is fit for use and
is in good, safe, serviceable and airworthy condition. Lessee agrees that
upon termination of this lease it will return said aircraft to Lessor in the
same and as good of condition as when received from Lessor, normal wear and
tear excepted. In the event Lessee does not return the aircraft in such
condition, Lessor may make necessary repairs to restore the aircraft to such
condition and Lessee agrees to reimburse Lessor for any expense involved for
such restoration.
Article VI - Title and Use
Title to the aircraft remains with the Lessor and the aircraft shall
remain under U.S. Registry. Lessor warrants that it is the absolute owner of
the aircraft and that it has full right to lease the aircraft to Lessee.
Lessee shall have complete use of the aircraft, restricted, however, to
the ordinary purposes of Lessee's business and pleasure. Lessee will not use,
operate, maintain or store the aircraft improperly, carelessly, or in
violation of this agreement or of any applicable law or regulation, Federal or
State, or any instructions furnished therefore by Lessor. Furthermore, Lessee
shall not operate the aircraft in any manner which would contravene the uses
and purposes stipulated in the insurance policies discussed in Article IX.
Nothing herein shall authorize Lessee or any other person to operate the
aircraft or to incur any liability of obligation on behalf of Lessor.
Article VII - Maintenance and Operation
Lessee is the operator of this aircraft and is responsible for the
following:
1. Fuel and oil
2. All associated normal maintenance
3. Crew, salaries, expenses and employee benefits
4. Landing fees, customs, etc.
5. Hangar rent
6. Ferry flights necessary for maintenance
7. Insurance
In addition to the foregoing, Lessee agrees at all times to keep the
aircraft in a fully operative condition and completely airworthy; and further
to keep said aircraft in mechanical condition adequate to comply with
regulations set forth by the Federal Aviation Administration and any other
regulations as set forth by any Federal, State or Local governing body,
domestic or foreign, having the power to regulate or supervise the aircraft or
the maintenance, use or operation thereof. Lessor shall have the right at
all reasonable times to inspect the aircraft for purposes of ascertaining
compliance with this article.
Article VIII - Engine Reserves/Replacements
Lessor hereby agrees to replace, exchange, or repair engines their
components and propellers solely at its expense, during the term of this
lease. Lessee estimates annual usage to be approximately 1,000 hours per
annum.
Article IX - Insurance
1. Lessee shall secure and maintain in effect throughout the term of the
lease, insurance policies naming Lessor, and its principal, additional named
insured, covering said aircraft as follows:
A. Full hull coverage, including all risks, payable to CLB Corporation
both in flight and not in flight, in the amount specified in Attachment #1.
In the event that any claims are necessitated, Lessee agrees to pay the
deductible amount as provided in such policy.
B. Liability insurance in the amount of at least $5,000,000 covering, in a
single limit, bodily injury and property damage including passenger(s).
C. Lessee will furnish Lessor with a "Lessee's breach of warranty form"
in favor of Lessor and its lender, if any.
D. Lessee will provide workmen's compensation on any member of the crew,
if applicable.
2. In the event of loss or damage to the aircraft, Lessee shall
immediately report such loss or damage to Lessor, to the insurance companies
underwriting such risk, and to any and all applicable governmental agencies,
both Federal and State, and shall furnish such information and execute such
documents as may be required and necessary to collect the proceeds from the
insurance policies. In this event, the rights, liabilities and obligations of
the parties hereto shall be as follows:
A. In the event that the aircraft is lost or damaged beyond repair, the
proceeds of the insurance policy or policies shall by payable to Lessor.
B. In the event that the aircraft is partially damaged, Lessee shall, at
its cost and expense, fully repair the aircraft in order that the aircraft
shall be placed in as good as, or the same condition as it was prior to the
damage. Lessor shall have the right to approve all repairs made by Lessee.
3. If said aircraft is damaged, the terms of this agreement shall suspend
for a period not to exceed 180 days total for this lease, or until aircraft is
placed back into service, whichever occurs first.
Article X - Default
The following events shall constitute default hereunder:
1. Lessee shall fail to make any payment of rent when due and such failure
shall continue unremedied for a period of ten (10) days after written notice
thereof by Lessor; or
2. Lessee shall fail to perform or observe any other covenant, condition or
agreement to be performed or observed by it hereunder, and such failure shall
continue unremedied for a period of ten (10) days after written notice thereof
by Lessor; or
3. Any representation or warranty made by Lessee herein or in any document or
certificate furnished by Lessee in connection herewith shall prove to have
been false in any material respect when made or furnished.
Article XI - Pilots
Lessee agrees that the aircraft will at all times during the term of this
lease be operated by safe, careful and duly qualified pilots employed and paid
or contracted for by Lessee. Lessee warrants that each of the pilots who will
operate the aircraft shall be properly trained and duly qualified and whose
licenses are in good standing and who meet the requirements established and
specified by the insurance policies attached hereto.
Article XII - Notices
All notices provided for herein shall be submitted in writing and sent by
certified mail, addressed to the party to be served at the addresses set forth
below, or to such other address as may be designated by such party in a
written notice to the other party.
Lessor's Address: Lessee's Address
CLB Corporation Alpine Aviation, Inc. dba Alpine Air
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Article XIII - Remedies
Upon the occurrence of any event of default and at any time thereafter, so
long as the same shall be continuing, Lessor may, at its option, declare this
agreement to be in default and at any time thereafter, so long as Lessee shall
not have remedied to all outstanding defaults, have and exercise all remedies
at law and in equity, including without limitation to the following:
1. Declare the entire amount of rent hereunder immediately due and
payable without notice or demand to Lessee.
2. Recover from the Lessee an amount equal to the unpaid balance due and
to become due during the term of this agreement.
Article XIV - Lessor's Right to Assign
It is understood that Lessor contemplates assigning this lease and that
such assignee may also assign this lease. All rights of Lessor shall be
succeeded to by the Assignee or Assignees under any such assignment and said
Assignee's title to this lease, to rental herein provided, shall be free from
all defense, set offs and counterclaims to which Lessee may be entitled to
assess against Lessor; it being understood and agreed that any such Assignee
does not assume any obligations of Lessor, and that the Lessee may separately
claim against Lessor any matters which Lessee may be entitled to assert
against Lessor.
Article XV - Truth in Leasing
The undersigned Lessee certifies that it is responsible for operational
control of the aircraft during the terms of this lease and that it understands
its responsibilities for compliance with applicable Federal Aviation
Administration regulations.
Article XVI - Taxes
During the term of this agreement, Lessee shall be responsible for all
taxes including, but not limited to sales taxes and central assessment taxes.
Article XVII - Modification
This agreement may be modified only by a written instrument executed by
both parties hereto.
Article XVIII - Binding Effect
This agreement shall be binding upon the parties hereto, their
successors, assigns and legal representatives.
Article XIX - Entire Agreement
The terms and conditions of this agreement constitute the entire
agreement and supersede all previous negotiations, representations and
agreements between the parties, whether written or oral.
Article XX - Applicable Law
This agreement shall be construed and performance shall be governed under
the laws of the State of Utah.
May 1, 2000 Alpine Aviation, Inc. d/b/a, Alpine Air
----------- Lessee
Dated
/s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇ By: /s/ ▇▇▇▇ ▇▇▇▇▇▇▇▇▇
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Witness ▇▇▇▇ ▇▇▇▇▇▇▇▇▇, President
CLB Corporation
Lessor
By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
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▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇, President
CLB Corporation
Leased Aircraft Schedule
Aircraft Monthly Amount Per
Tail No. Lease Amt Hour
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N84495 250.00 10.00
N81658 250.00 10.00
N75336 250.00 10.00
N75337 250.00 10.00
B8177C 1,000.00 15.00
N83878 2,000.00 30.00
N8677E 5,000.00 50.00
N24BH 14,000.00 75.00
N95WA 14,000.00 75.00
N99GH 14,000.00 75.00
N950AA 14,000.00 75.00
N955AA 14,000.00 75.00
N99CA 14,000.00 75.00
N99TH 14,000.00 75.00
N199GL 14,000.00 75.00
N899CA 14,000.00 75.00
N14MV 14,000.00 75.00
N4381Y 14,000.00 75.00
N326CA 14,000.00 75.00
N216CS 15,000.00 75.00
N239AL 15,000.00 75.00