# EDGAR Filing Document

**Accession Number:** 0001487712
**File Stem:** 0001628280-26-032068
**Filing Date:** 2026-5
**Character Count:** 530590
**Document Hash:** 21514d3abe4eda7b027fbf214e11fed6
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001628280-26-032068.hdr.sgml**: 20260507

**ACCESSION NUMBER**: 0001628280-26-032068

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 83

**CONFORMED PERIOD OF REPORT**: 20260331

**FILED AS OF DATE**: 20260507

**DATE AS OF CHANGE**: 20260507

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** SUMISHO AIR LEASE CORP
- **CENTRAL INDEX KEY:** 0001487712
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-EQUIPMENT RENTAL & LEASING, NEC [7359]
- **ORGANIZATION NAME:** 07 Trade & Services
- **EIN:** 271840403
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-35121
- **FILM NUMBER:** 26953003

**BUSINESS ADDRESS:**
- **STREET 1:** 2000 AVENUE OF THE STARS
- **STREET 2:** SUITE 1000N
- **CITY:** LOS ANGELES
- **STATE:** CA
- **ZIP:** 90067
- **BUSINESS PHONE:** (310) 553-0555

**MAIL ADDRESS:**
- **STREET 1:** 2000 AVENUE OF THE STARS
- **STREET 2:** SUITE 1000N
- **CITY:** LOS ANGELES
- **STATE:** CA
- **ZIP:** 90067

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** AIR LEASE CORP
- **DATE OF NAME CHANGE:** 20100916

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** AIR LEASE Corp
- **DATE OF NAME CHANGE:** 20100323

?xml version='1.0' encoding='ASCII'? al-20260331

**<u>[**Table of Contents**](#i2e83ec058a6942c6b0c099bda180c4b5_7)</u>**

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 10-Q** 

☒**&nbsp;&nbsp;&nbsp;&nbsp;QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the quarterly period ended March 31, 2026** 

**OR**

☐**&nbsp;&nbsp;&nbsp;&nbsp;TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the transition period from &nbsp;&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp;&nbsp;** 

**Commission file number 001-35121** 

**SUMISHO AIR LEASE CORPORATION**

(Exact name of registrant as specified in its charter)

---

| | |
|:---|:---|
| **Delaware** | **27-1840403** |
| (State or other jurisdiction of <br>incorporation or organization) | (I.R.S. Employer <br>Identification No.) |

---

---

| | | |
|:---|:---|:---|
| **2000 Avenue of the Stars,** | **Suite 1000N** | **90067** |
| **Los Angeles,** | **California** | |
| (Address of principal executive offices) | (Address of principal executive offices) | (Zip Code) |

---

Registrant's telephone number, including area code: **(310) 553-0555** 

Securities registered pursuant to Section 12(b) of the Act: None

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act:

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☒ | Accelerated filer | ☐ |
| Non-accelerated filer | ☐ | Smaller reporting company | ☐ |
| Emerging growth company | ☐ | | |

---

------

**<u>[**Table of Contents**](#i2e83ec058a6942c6b0c099bda180c4b5_7)</u>**

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

At May 5, 2026, there were 200 shares of Sumisho Air Lease Corporation's Class C common stock outstanding.

------

**<u>[**Table of Contents**](#i2e83ec058a6942c6b0c099bda180c4b5_7)</u>**

**Sumisho Air Lease Corporation and Subsidiaries**

**Form 10-Q**

**For the Quarterly Period Ended March 31, 2026** 

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
| | | **Page** |
| <u>[Note About Forward-Looking Statements](#i2e83ec058a6942c6b0c099bda180c4b5_10)</u> | <u>[Note About Forward-Looking Statements](#i2e83ec058a6942c6b0c099bda180c4b5_10)</u> | <u>[4](#i2e83ec058a6942c6b0c099bda180c4b5_10)</u> |
|  | **<u>[PART I—FINANCIAL INFORMATION](#i2e83ec058a6942c6b0c099bda180c4b5_13)</u>** |  |
| <u>[Item 1](#i2e83ec058a6942c6b0c099bda180c4b5_16)</u> | <u>[Financial Statements](#i2e83ec058a6942c6b0c099bda180c4b5_16)</u> |  |
|  | <u>[Consolidated Balance Sheets—](#i2e83ec058a6942c6b0c099bda180c4b5_19)[March 31](#i2e83ec058a6942c6b0c099bda180c4b5_19)[, 202](#i2e83ec058a6942c6b0c099bda180c4b5_19)[6](#i2e83ec058a6942c6b0c099bda180c4b5_19)[and December 31, 202](#i2e83ec058a6942c6b0c099bda180c4b5_19)[5](#i2e83ec058a6942c6b0c099bda180c4b5_19)[(unaudited)](#i2e83ec058a6942c6b0c099bda180c4b5_19)</u> | <u>[5](#i2e83ec058a6942c6b0c099bda180c4b5_19)</u> |
|  | <u>[Consolidated Statements of Income and Other Comprehensive Income—Three](#i2e83ec058a6942c6b0c099bda180c4b5_22)[Months Ended](#i2e83ec058a6942c6b0c099bda180c4b5_22)[March](#i2e83ec058a6942c6b0c099bda180c4b5_22)[3](#i2e83ec058a6942c6b0c099bda180c4b5_22)[1](#i2e83ec058a6942c6b0c099bda180c4b5_22)[, 202](#i2e83ec058a6942c6b0c099bda180c4b5_22)[6](#i2e83ec058a6942c6b0c099bda180c4b5_22)[and 202](#i2e83ec058a6942c6b0c099bda180c4b5_22)[5](#i2e83ec058a6942c6b0c099bda180c4b5_22)[(unaudited)](#i2e83ec058a6942c6b0c099bda180c4b5_22)</u> | <u>[6](#i2e83ec058a6942c6b0c099bda180c4b5_22)</u> |
|  | <u>[Consolidated Statements of](#i2e83ec058a6942c6b0c099bda180c4b5_25)[Stockholders](#i2e83ec058a6942c6b0c099bda180c4b5_25)['](#i2e83ec058a6942c6b0c099bda180c4b5_25)[Equity—Three](#i2e83ec058a6942c6b0c099bda180c4b5_25)[Months Ended](#i2e83ec058a6942c6b0c099bda180c4b5_25)[March 31,](#i2e83ec058a6942c6b0c099bda180c4b5_25)[2026](#i2e83ec058a6942c6b0c099bda180c4b5_25)[and 202](#i2e83ec058a6942c6b0c099bda180c4b5_25)[5](#i2e83ec058a6942c6b0c099bda180c4b5_25)[(unaudited)](#i2e83ec058a6942c6b0c099bda180c4b5_25)</u> | <u>[7](#i2e83ec058a6942c6b0c099bda180c4b5_25)</u> |
|  | <u>[Consolidated Statements of Cash Flows—](#i2e83ec058a6942c6b0c099bda180c4b5_28)[Three](#i2e83ec058a6942c6b0c099bda180c4b5_28)[Months Ended](#i2e83ec058a6942c6b0c099bda180c4b5_28)[March](#i2e83ec058a6942c6b0c099bda180c4b5_28)[3](#i2e83ec058a6942c6b0c099bda180c4b5_28)[1](#i2e83ec058a6942c6b0c099bda180c4b5_28)[, 202](#i2e83ec058a6942c6b0c099bda180c4b5_28)[6](#i2e83ec058a6942c6b0c099bda180c4b5_28)[and 202](#i2e83ec058a6942c6b0c099bda180c4b5_28)[5](#i2e83ec058a6942c6b0c099bda180c4b5_28)[(unaudited)](#i2e83ec058a6942c6b0c099bda180c4b5_28)</u> | <u>[8](#i2e83ec058a6942c6b0c099bda180c4b5_28)</u> |
|  | <u>[Notes to Consolidated Financial Statements (unaudited)](#i2e83ec058a6942c6b0c099bda180c4b5_31)</u> | <u>[10](#i2e83ec058a6942c6b0c099bda180c4b5_31)</u> |
| <u>[Item 2](#i2e83ec058a6942c6b0c099bda180c4b5_82)</u> | <u>[Management's Discussion and Analysis of Financial Condition and Results of Operations](#i2e83ec058a6942c6b0c099bda180c4b5_82)</u> | <u>[22](#i2e83ec058a6942c6b0c099bda180c4b5_82)</u> |
| <u>[Item 3](#i2e83ec058a6942c6b0c099bda180c4b5_100)</u> | <u>[Quantitative and Qualitative Disclosures About Market Risk](#i2e83ec058a6942c6b0c099bda180c4b5_100)</u> | <u>[45](#i2e83ec058a6942c6b0c099bda180c4b5_100)</u> |
| <u>[Item 4](#i2e83ec058a6942c6b0c099bda180c4b5_103)</u> | <u>[Controls and Procedures](#i2e83ec058a6942c6b0c099bda180c4b5_103)</u> | <u>[45](#i2e83ec058a6942c6b0c099bda180c4b5_103)</u> |
|  | **<u>[PART II—OTHER INFORMATION](#i2e83ec058a6942c6b0c099bda180c4b5_106)</u>** |  |
| <u>[Item 1](#i2e83ec058a6942c6b0c099bda180c4b5_109)</u> | <u>[Legal Proceedings](#i2e83ec058a6942c6b0c099bda180c4b5_109)</u> | <u>[46](#i2e83ec058a6942c6b0c099bda180c4b5_109)</u> |
| <u>[Item 1A](#i2e83ec058a6942c6b0c099bda180c4b5_112)</u> | <u>[Risk Factors](#i2e83ec058a6942c6b0c099bda180c4b5_112)</u> | <u>[48](#i2e83ec058a6942c6b0c099bda180c4b5_112)</u> |
| <u>[Item 2](#i2e83ec058a6942c6b0c099bda180c4b5_115)</u> | <u>[Unregistered Sales of Equity Securities and Use of Proceeds](#i2e83ec058a6942c6b0c099bda180c4b5_115)</u> | <u>[66](#i2e83ec058a6942c6b0c099bda180c4b5_115)</u> |
| <u>[Item 3](#i2e83ec058a6942c6b0c099bda180c4b5_118)</u> | <u>[Defaults Upon Senior Securities](#i2e83ec058a6942c6b0c099bda180c4b5_118)</u>  | <u>[66](#i2e83ec058a6942c6b0c099bda180c4b5_118)</u> |
| <u>[Item 4](#i2e83ec058a6942c6b0c099bda180c4b5_121)</u> | <u>[Mine Safety Disclosures](#i2e83ec058a6942c6b0c099bda180c4b5_121)</u> | <u>[66](#i2e83ec058a6942c6b0c099bda180c4b5_121)</u> |
| <u>[Item 5](#i2e83ec058a6942c6b0c099bda180c4b5_124)</u> | <u>[Other Information](#i2e83ec058a6942c6b0c099bda180c4b5_124)</u> | <u>[66](#i2e83ec058a6942c6b0c099bda180c4b5_124)</u> |
| <u>[Item 6](#i2e83ec058a6942c6b0c099bda180c4b5_127)</u> | <u>[Exhibits](#i2e83ec058a6942c6b0c099bda180c4b5_127)</u> | <u>[67](#i2e83ec058a6942c6b0c099bda180c4b5_127)</u> |
|  | <u>[Signatures](#i2e83ec058a6942c6b0c099bda180c4b5_130)</u> | <u>[69](#i2e83ec058a6942c6b0c099bda180c4b5_130)</u> |

---

------

**<u>[**Table of Contents**](#i2e83ec058a6942c6b0c099bda180c4b5_7)</u>**

**NOTE ABOUT FORWARD-LOOKING STATEMENTS**

This Quarterly Report on Form 10-Q and other publicly available documents may contain or incorporate statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Those statements appear in a number of places in this Form 10-Q and include statements regarding, among other matters, the state of the airline industry, our ability to access the capital and debt markets, our aircraft sales pipeline and expectations, changes in inflation and interest rates and other macroeconomic conditions and other factors affecting our financial condition or results of operations. Words such as "can," "could," "may," "predicts," "potential," "will," "projects," "continuing," "ongoing," "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates" and "should," and variations of these words and similar expressions, are used in many cases to identify these forward-looking statements. Any such forward-looking statements are not guarantees of future performance and involve risks, uncertainties, and other factors that may cause our actual results, performance or achievements, or industry results to vary materially from our future results, performance or achievements, or those of our industry, expressed or implied in such forward-looking statements. Such factors include, among others:

&nbsp;&nbsp;&nbsp;&nbsp;• our inability to obtain additional capital on favorable terms, or at all, to service our debt obligations and refinance maturing debt obligations;

&nbsp;&nbsp;&nbsp;&nbsp;• increases in our cost of borrowing, decreases in our credit ratings or changes in interest rates;

&nbsp;&nbsp;&nbsp;&nbsp;• our inability to generate sufficient returns on our aircraft investments through strategic aircraft acquisitions and profitable leasing;

&nbsp;&nbsp;&nbsp;&nbsp;• obsolescence of, or changes in overall demand for, our aircraft;

&nbsp;&nbsp;&nbsp;&nbsp;• changes in the value of, and lease rates for, our aircraft, including as a result of aircraft oversupply, manufacturer production levels, our lessees' failure to maintain our aircraft, inflation, and other factors outside of our control;

&nbsp;&nbsp;&nbsp;&nbsp;• impaired financial condition and liquidity of our lessees, including due to lessee defaults and reorganizations, bankruptcies or similar proceedings;

&nbsp;&nbsp;&nbsp;&nbsp;• potential conflicts of interest with SMBC AC (as defined herein), as servicer of the majority of our aircraft;

&nbsp;&nbsp;&nbsp;&nbsp;• increased competition from other aircraft lessors;

&nbsp;&nbsp;&nbsp;&nbsp;• the failure by our lessees to adequately insure our aircraft or fulfill their contractual indemnity obligations to us, or the failure of such insurers to fulfill their contractual obligations;

&nbsp;&nbsp;&nbsp;&nbsp;• increased tariffs and other restrictions on trade;

&nbsp;&nbsp;&nbsp;&nbsp;• changes in the regulatory environment, including changes in tax laws and environmental regulations;

&nbsp;&nbsp;&nbsp;&nbsp;• other events affecting our business or the business of our lessees and aircraft manufacturers or their suppliers that are beyond our or their control, such as the threat or realization of epidemic diseases, natural disasters, terrorist attacks, war or armed hostilities between countries or non-state actors; and

&nbsp;&nbsp;&nbsp;&nbsp;• any additional factors discussed under "Part II — Item 1A. Risk Factors" in this Quarterly Report on Form 10-Q and other Securities and Exchange Commission ("SEC") filings, including future SEC filings.

All forward-looking statements are necessarily only estimates of future results, and there can be no assurance that actual results will not differ materially from expectations. You are therefore cautioned not to place undue reliance on such statements. Any forward-looking statement speaks only as of the date on which it is made, and we do not intend and undertake no obligation to update any forward-looking information to reflect actual results or events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events.

------

**<u>[**Table of Contents**](#i2e83ec058a6942c6b0c099bda180c4b5_7)</u>**

**PART I—FINANCIAL INFORMATION**

**ITEM 1.&nbsp;&nbsp;&nbsp;&nbsp;FINANCIAL STATEMENTS**

**Sumisho Air Lease Corporation and Subsidiaries**

**CONSOLIDATED BALANCE SHEETS**

**(In thousands, except share and par value amounts)**

---

| | | |
|:---|:---|:---|
| | **March 31, 2026** | **December 31, 2025** |
| | **(unaudited)** | **(unaudited)** |
| **Assets** | | |
| Cash and cash equivalents | $554062 | $466410 |
| Restricted cash | 502 | 3540 |
| Flight equipment subject to operating leases | 35732476 | 35880458 |
| &nbsp;&nbsp;&nbsp;&nbsp;Less accumulated depreciation | (6857633) | (6826828) |
|  | 28874843 | 29053630 |
| Net investment in sales-type leases | 462797 | 460806 |
| Deposits on flight equipment purchases | 1081857 | 1052141 |
| Flight equipment held for sale | 940330 | 529016 |
| Other assets | 1253889 | 1318150 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total assets** | $33168280 | $32883693 |
| **Liabilities and Stockholders' Equity** |  |  |
| Accrued interest and other payables | $1063515 | $1012345 |
| Debt financing, net of discounts and issuance costs | 19819195 | 19730129 |
| Security deposits on flight equipment leases | 618667 | 622556 |
| Maintenance reserves on flight equipment leases | 1542339 | 1477046 |
| Rentals received in advance | 127109 | 143631 |
| Deferred tax liability | 1448357 | 1425230 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities** | $24619182 | $24410937 |
| **Stockholders' Equity** |  |  |
| Preferred Stock, $0.01 par value; 50,000,000 shares authorized; 900,000 (aggregate liquidation preference of $900,000) shares issued and outstanding at March 31, 2026 and December 31, 2025 | $9 | $9 |
| Class A common stock, $0.01 par value; 500,000,000 shares authorized; 112,415,671 and 112,035,408 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively  | 1124 | 1120 |
| Class B Non-Voting common stock, $0.01 par value; 10,000,000 shares authorized; no shares issued or outstanding  |  |  |
| Paid-in capital | 3372554 | 3383414 |
| Retained earnings | 5183013 | 5092929 |
| Accumulated other comprehensive (loss) | (7602) | (4716) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total stockholders' equity** | $8549098 | $8472756 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities and stockholders' equity** | $33168280 | $32883693 |

---

(See Notes to Consolidated Financial Statements)

------

**<u>[**Table of Contents**](#i2e83ec058a6942c6b0c099bda180c4b5_7)</u>**

**Sumisho Air Lease Corporation and Subsidiaries**

**CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME**

**(In thousands, except share and per share amounts)**

---

| | | |
|:---|:---|:---|
| | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
| | **2026** | **2025** |
| | **(unaudited)** | **(unaudited)** |
| &nbsp;&nbsp;&nbsp;**Revenues and other income** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Rental of flight equipment revenue |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lease rentals | $666675 | $637233 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Maintenance rentals and other receipts | 7241 | 8137 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total rental of flight equipment revenue | 673916 | 645370 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on aircraft sales and trading and other income | 65307 | 92912 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenues and other income | 739223 | 738282 |
| &nbsp;&nbsp;&nbsp;**Expenses** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest | 201844 | 208574 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of debt discounts and issuance costs | 12408 | 13995 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense | 214252 | 222569 |
| &nbsp;&nbsp;&nbsp;Depreciation of flight equipment | 309783 | 299019 |
| &nbsp;&nbsp;&nbsp;Recoveries of Russian fleet write-off |  | (331938) |
| &nbsp;&nbsp;&nbsp;Selling, general and administrative | 60191 | 59348 |
| &nbsp;&nbsp;&nbsp;Stock-based compensation expense | 5096 | 17616 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total expenses | 589322 | 266614 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income before taxes | 149901 | 471668 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income tax expense | (24005) | (95836) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income | $125896 | $375832 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred stock dividends | (11081) | (11081) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income attributable to common stockholders | $114815 | $364751 |
| &nbsp;&nbsp;**Other comprehensive income/(loss):** |  |  |
| &nbsp;&nbsp;Foreign currency translation adjustment | $20789 | $(27701) |
| &nbsp;&nbsp;Change in fair value of hedged transactions | (24461) | 11226 |
| &nbsp;&nbsp;Total tax benefit on other comprehensive income | 786 | 3525 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Other comprehensive income/(loss), net of tax** | (2886) | (12950) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total comprehensive income attributable to common stockholders** | $111929 | $351801 |
| &nbsp;&nbsp;&nbsp;**Earnings per share of common stock:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | $1.03 | $3.27 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | $1.02 | $3.26 |
| &nbsp;&nbsp;Weighted-average shares of common stock outstanding |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | 111936166 | 111549903 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | 112484656 | 112030382 |

---

(See Notes to Consolidated Financial Statements)

------

**<u>[**Table of Contents**](#i2e83ec058a6942c6b0c099bda180c4b5_7)</u>**

**Sumisho Air Lease Corporation and Subsidiaries**

**CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY**

**(In thousands, except share and per share amounts)**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Preferred Stock** | **Preferred Stock** | **Class A <br>Common Stock** | **Class A <br>Common Stock** | **Class B Non-Voting <br>Common Stock** | **Class B Non-Voting <br>Common Stock** | | | **Accumulated Other<br>Comprehensive Income/(Loss)** | |
| **(unaudited)** | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** |<br>**Paid-in<br>Capital** |<br>**Retained<br>Earnings** | **Accumulated Other<br>Comprehensive Income/(Loss)** |<br>**Total** |
| **Balance at December 31, 2025** | 900000 | $9 | 112035408 | $1120 |  | $— | $3383414 | $5092929 | $(4716) | $8472756 |
| Issuance of common stock upon vesting of restricted stock units |  |  | 628526 | 6 |  |  | (4) |  |  | 2 |
| Stock-based compensation expense  |  |  |  |  |  |  | 5096 |  |  | 5096 |
| Cash dividends (declared $0.22 per share of Class A common stock) |  |  |  |  |  |  |  | (24731) |  | (24731) |
| Cash dividends (declared on preferred stock) |  |  |  |  |  |  |  | (11081) |  | (11081) |
| Change in foreign currency translation adjustment and in fair value of hedged transactions, net of tax |  |  |  |  |  |  |  |  | (2886) | (2886) |
| Tax withholdings on stock based-compensation |  |  | (248263) | (2) |  |  | (15952) |  |  | (15954) |
| Net income |  |  |  |  |  |  |  | 125896 |  | 125896 |
| **Balance at March 31, 2026** | 900000 | $9 | 112415671 | $1124 |  | $— | $3372554 | $5183013 | $(7602) | $8549098 |

---

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Preferred Stock** | **Preferred Stock** | **Class A <br>Common Stock** | **Class A <br>Common Stock** | **Class B Non-Voting <br>Common Stock** | **Class B Non-Voting <br>Common Stock** | | | **Accumulated Other<br>Comprehensive Income/(Loss)** | |
| **(unaudited)** | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** |<br>**Paid-in<br>Capital** |<br>**Retained<br>Earnings** | **Accumulated Other<br>Comprehensive Income/(Loss)** |<br>**Total** |
| **Balance at December 31, 2024** | 900000 | $9 | 111376884 | $1114 |  | $— | $3364712 | $4147218 | $19573 | $7532626 |
| Issuance of common stock upon vesting of restricted stock units |  |  | 644380 | 6 |  |  |  |  |  | 6 |
| Stock-based compensation expense |  |  |  |  |  |  | 17616 |  |  | 17616 |
| Cash dividends (declared $0.22 per share of Class A common stock) |  |  |  |  |  |  |  | (24587) |  | (24587) |
| Cash dividends (declared on preferred stock) |  |  |  |  |  |  |  | (11081) |  | (11081) |
| Change in foreign currency translation adjustment and in fair value of hedged transactions, net of tax |  |  |  |  |  |  |  |  | (12950) | (12950) |
| Tax withholdings on stock based-compensation |  |  | (262129) | (2) |  |  | (12275) |  |  | (12277) |
| Net income |  |  |  |  |  |  |  | 375832 |  | 375832 |
| **Balance at March 31, 2025** | 900000 | $9 | 111759135 | $1118 |  | $— | $3370053 | $4487382 | $6623 | $7865185 |

---

(See Notes to Consolidated Financial Statements)

------

**<u>[**Table of Contents**](#i2e83ec058a6942c6b0c099bda180c4b5_7)</u>**

**Sumisho Air Lease Corporation and Subsidiaries**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(In thousands)**

---

| | | |
|:---|:---|:---|
| | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
| | **2026** | **2025** |
| | **(unaudited)** | **(unaudited)** |
| **Operating Activities** |  |  |
| &nbsp;&nbsp;&nbsp;Net income | $125896 | $375832 |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net income to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;Depreciation of flight equipment | 309783 | 299019 |
| &nbsp;&nbsp;&nbsp;Recoveries of Russian fleet write-off |  | (331938) |
| &nbsp;&nbsp;&nbsp;Stock-based compensation expense | 5096 | 17616 |
| &nbsp;&nbsp;&nbsp;Deferred taxes | 23912 | 95322 |
| &nbsp;&nbsp;&nbsp;Amortization of prepaid lease costs | 21049 | 22704 |
| &nbsp;&nbsp;&nbsp;Amortization of discounts and debt issuance costs | 12408 | 13995 |
| &nbsp;&nbsp;&nbsp;Foreign currency remeasurement (gain)/loss on sales-type leases | 3058 | (5764) |
| &nbsp;&nbsp;&nbsp;Gain on aircraft sales, trading and other activity | (53780) | (68838) |
| &nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other assets | 38434 | 13581 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued interest and other payables | 34003 | (34234) |
| &nbsp;&nbsp;&nbsp;&nbsp;Rentals received in advance | (16522) | (8949) |
| Net cash provided by operating activities | 503337 | 388346 |
| **Investing Activities** |  |  |
| &nbsp;&nbsp;&nbsp;Acquisition of flight equipment | (572689) | (585725) |
| &nbsp;&nbsp;&nbsp;Payments for deposits on flight equipment purchases | (189766) | (179774) |
| &nbsp;&nbsp;&nbsp;Proceeds from aircraft sales, trading and other activity | 248586 | 407624 |
| &nbsp;&nbsp;&nbsp;Proceeds from settlement of insurance claims |  | 328546 |
| &nbsp;&nbsp;&nbsp;Acquisition of aircraft furnishings, equipment and other assets | (58314) | (72871) |
| Net cash used in investing activities | (572183) | (102200) |
| **Financing Activities** |  |  |
| &nbsp;&nbsp;&nbsp;Cash dividends paid on Class A common stock | (24588) | (24503) |
| &nbsp;&nbsp;&nbsp;Cash dividends paid on preferred stock | (11081) | (11081) |
| &nbsp;&nbsp;&nbsp;Tax withholdings on stock-based compensation | (15952) | (12271) |
| &nbsp;&nbsp;&nbsp;Net change in unsecured revolving facilities | 2170000 | 30000 |
| &nbsp;&nbsp;&nbsp;Net change in commercial paper balance | (315100) | 888500 |
| &nbsp;&nbsp;&nbsp;Proceeds from debt financings | 100000 | 199950 |
| &nbsp;&nbsp;&nbsp;Payments in reduction of debt financings | (1857406) | (1477864) |
| &nbsp;&nbsp;&nbsp;Debt issuance costs | (47) | (1385) |
| &nbsp;&nbsp;&nbsp;Security deposits and maintenance reserve receipts | 120734 | 114436 |
| &nbsp;&nbsp;&nbsp;Security deposits and maintenance reserve disbursements | (13100) | (7419) |
| Net cash provided/(used in) by financing activities | 153460 | (301637) |
| Net increase/(decrease) in cash | 84614 | (15491) |
| Cash, cash equivalents and restricted cash at beginning of period | 469950 | 476104 |
| Cash, cash equivalents and restricted cash at end of period | $554564 | $460613 |

---

------

**<u>[**Table of Contents**](#i2e83ec058a6942c6b0c099bda180c4b5_7)</u>**

**Sumisho Air Lease Corporation and Subsidiaries**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(In thousands)**

---

| | | |
|:---|:---|:---|
| | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
| | **2026** | **2025** |
| | **(unaudited)** | **(unaudited)** |
| **Supplemental Disclosure of Cash Flow Information** |  |  |
| Cash paid during the period for interest, including capitalized interest of $11,277 and $7,860 at March 31, 2026 and 2025, respectively | $217861 | $237890 |
| Cash paid for income taxes | $2143 | $38 |
| **Supplemental Disclosure of Noncash Activities** |  |  |
| Buyer furnished equipment, capitalized interest and deposits on flight equipment purchases applied to acquisition of flight equipment and other assets | $197492 | $214047 |
| Flight equipment subject to operating leases reclassified to flight equipment held for sale | $628925 | $60572 |
| Transfer of flight equipment to investment in sales-type lease | $21674 | $33778 |
| Cash dividends declared on Class A common stock, not yet paid | $24731 | $24587 |

---

(See Notes to Consolidated Financial Statements)

------

**<u>[**Table of Contents**](#i2e83ec058a6942c6b0c099bda180c4b5_7)</u>**

**Sumisho Air Lease Corporation and Subsidiaries**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Unaudited)**

**Note 1. Company Background and Overview**

Sumisho Air Lease Corporation (the "Company", "SAL", "we", "our" or "us") is one of the largest aircraft leasing companies in the world, with an owned fleet comprised of 496 aircraft as of March 31, 2026. The net book value of flight equipment subject to operating leases was $28.9 billion as of March 31, 2026.

On April 8, 2026 (the "Effective Time"), Air Lease Corporation, a Delaware corporation, completed the previously announced merger (the "Merger") of Takeoff Merger Sub Inc., a Delaware corporation ("Merger Sub"), with and into Air Lease Corporation, with Air Lease Corporation surviving the Merger as an indirect subsidiary of Sumisho Air Lease Corporation Designated Activity Company, an Irish private limited company ("Parent"). Parent is a new holding company established in connection with the Merger and is jointly owned, directly or indirectly, by Sumitomo Corporation, a Japanese corporation ("Sumitomo"), SMBC Aviation Capital Limited, a company incorporated with limited liability in Ireland ("SMBC AC"), investment vehicles affiliated with Apollo managed funds ("Apollo"), and Brookfield ("Brookfield"). The Merger was effected pursuant to an Agreement and Plan of Merger, dated as of September 1, 2025 (the "Merger Agreement"), by and among Air Lease Corporation, Parent and Merger Sub. At the Effective Time, Air Lease Corporation changed its name to Sumisho Air Lease Corporation.

**Note 2. Basis of Preparation and Critical Accounting Policies**

The Company consolidates financial statements of all entities in which the Company has a controlling financial interest, including the accounts of any Variable Interest Entity in which the Company has a controlling financial interest and for which it is the primary beneficiary. All material intercompany balances are eliminated in consolidation. The accompanying Consolidated Financial Statements have been prepared in accordance with Generally Accepted Accounting Principles in the United States of America ("GAAP") for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements.

The accompanying unaudited Consolidated Financial Statements include all adjustments, consisting only of normal, recurring adjustments, which are in the opinion of management necessary to present fairly the Company's financial position, results of operations and cash flows at March 31, 2026, and for all periods presented. The results of operations for the three months ended March 31, 2026 are not necessarily indicative of the operating results expected for the year ending December 31, 2026. These financial statements and related notes should be read in conjunction with the Consolidated Financial Statements and related notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2025.

***Reclassification***

Certain amounts have been reclassified in the 2025 financial statements to conform to the 2026 presentation.

***Recent Accounting Pronouncements***

In November 2024, FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40) ("ASU 2024-03"). In January 2025, the FASB issued Clarifying the Effective Date ("ASU 2025-01") to add some clarity around the effective date of the guidance. ASU 2024-03 requires disaggregated information for specified categories of expenses, including inventory purchases, employee compensation, depreciation, amortization, and depletion, to be presented in certain expense captions on the face of the income statement. The new standard is effective for annual periods beginning after December 15, 2026, and for interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. The amendments may be applied either prospectively, to financial statements issued after the effective date, or retrospectively, to all prior periods presented. The Company is currently evaluating the impact of ASU 2024-03 on its financial statement disclosures.

In December 2025, the FASB issued ASU No. 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements ("ASU 2025-11"). The amendments clarify and reorganize existing interim reporting guidance, including the scope of Topic 270 and interim disclosure requirements, and introduce a disclosure principle requiring entities to disclose material events or changes occurring since the most recent annual reporting period. ASU 2025-11 is effective for interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the impact of ASU 2025-11 on its consolidated financial statements and related disclosures.

------

**<u>[**Table of Contents**](#i2e83ec058a6942c6b0c099bda180c4b5_7)</u>**

**Sumisho Air Lease Corporation and Subsidiaries**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Unaudited)**

**Note 3. Debt Financing**

The Company's consolidated debt as of March 31, 2026 and December 31, 2025 is summarized below:

---

| | | |
|:---|:---|:---|
| | **March 31, 2026** | **December 31, 2025** |
| | **(in thousands)** | **(in thousands)** |
| &nbsp;&nbsp;&nbsp;**Unsecured** | | |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Senior unsecured securities | $12389769 | $13860558 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Term financings | 3606950 | 3846800 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial paper | 1046300 | 1361400 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revolving Credit Facility | 2470000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other revolving credit facilities |  | 300000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total unsecured debt financing | 19513019 | 19368758 |
| &nbsp;&nbsp;&nbsp;**Secured** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Term financings | 254677 | 318348 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Export credit financing | 171353 | 175238 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total secured debt financing | 426030 | 493586 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total debt financing | 19939049 | 19862344 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less: Debt discounts and issuance costs | (119854) | (132215) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Debt financing, net of discounts and issuance costs** | $19819195 | $19730129 |

---

As of March 31, 2026, management of the Company believes it is in compliance in all material respects with the covenants in its debt agreements, including minimum consolidated stockholders' equity, minimum consolidated unencumbered assets, and an interest coverage ratio test. At March 31, 2026 and December 31, 2025, the composite interest rate (excluding amortization of debt discounts and issuance costs) was 4.29% and 4.15%, respectively.

*Senior unsecured securities (including Medium-Term Note Program)*

As of March 31, 2026 and December 31, 2025, the Company had $12.4 billion and $13.9 billion in senior unsecured securities outstanding, respectively. The Company did not issue any senior unsecured securities during the three months ended March 31, 2026.

In connection with the Merger, on March 24, 2026, Merger Sub issued $800,000,000 aggregate principal amount of 4.400% Senior Notes due 2028, $1,200,000,000 aggregate principal amount of 4.500% Senior Notes due 2029, $1,500,000,000 aggregate principal amount of 4.850% Senior Notes due 2031 and $500,000,000 aggregate principal amount of 5.500% Senior Notes due 2036 (collectively, the "Notes") pursuant to an indenture, dated as of March 24, 2026, among Merger Sub and Computershare Trust Company, N.A., as trustee. Upon consummation of the Merger and in accordance with the indenture governing the Notes and related agreements, the Notes became the Company's obligations.

On April 8, 2026, in connection with the completion of the Merger, the Company notified the New York Stock Exchange ("NYSE") of the completion of the Merger and requested that trading in the 3.700% Medium-Term Notes, Series A, due April 15, 2030 (the "Euro Medium-Term Notes") be suspended and the Euro Medium-Term Notes be withdrawn from listing on the NYSE.

The Company did not redeem any of our medium term notes in connection with the closing of the Merger.

------

**<u>[**Table of Contents**](#i2e83ec058a6942c6b0c099bda180c4b5_7)</u>**

**Sumisho Air Lease Corporation and Subsidiaries**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Unaudited)**

*Unsecured syndicated revolving credit facility*

As of March 31, 2026, the Company had $2.5 billion outstanding under its unsecured syndicated revolving credit facility (the "Legacy Revolving Credit Facility"). As of December 31, 2025, the Company did not have any amounts outstanding under the Legacy Revolving Credit Facility. Borrowings under the Legacy Revolving Credit Facility were used to finance the Company's working capital needs in the ordinary course of business and for other general corporate purposes. The Company repaid in full all outstanding loans and other amounts due under its Legacy Revolving Credit Facility in an aggregate amount of $3.0 billion at the closing of the Merger.

In connection with the Merger, the Company assumed the revolving credit agreement entered into among Merger Sub, the several banks and other financial institutions or entities from time to time as parties thereto and Sumitomo Mitsui Banking Corporation, as administrative agent, dated November 14, 2025, as amended by the First Amendment, dated March 25, 2026 (as amended, the "New Revolving Credit Agreement"). As a result of the Merger, the benefits and obligations of Merger Sub under the New Revolving Credit Agreement became the Company's obligations as the surviving corporation in the Merger. The New Revolving Credit Agreement provides the Company access to up to $3.5 billion in revolving loans (the "New Revolving Credit Facility") for working capital purposes and other general corporate purposes. The New Revolving Credit Facility bears interest at Adjusted Term SOFR plus a margin of 1.25% and matures on April 8, 2029. The Company is required to pay a facility fee of 0.20% per year in respect of total commitments under the New Revolving Credit Facility. The interest rate and facility fees are subject to changes in the Company's credit ratings.

*Other unsecured revolving credit facilities* 

As of March 31, 2026, the Company did not have any outstanding balances under its other unsecured revolving credit facilities. As of December 31, 2025, the Company had an outstanding balance of $300.0 million that bears interest at one-month SOFR plus 1.05%. These facilities were not guaranteed and are available at the sole discretion of the lender, who has the right to modify or terminate the facilities at any time. All of these facilities were terminated in connection with the closing of the Merger.

*Unsecured term financings*

As of March 31, 2026 and December 31, 2025, the outstanding balance on the Company's unsecured term financings was $3.6 billion and $3.8 billion, respectively.

In connection with the Merger, the Merger Sub entered into a term loan credit agreement by and among Merger Sub, the several banks and other financial institutions or entities from time to time as parties thereto and Sumitomo Mitsui Banking Corporation, as administrative agent, as amended by the First Amendment to the Term Loan Credit Agreement, dated as of March 25, 2026 (as amended, the "Acquisition Term Loan Agreement"), pursuant to which the lenders provided a $1.0 billion term loan (the "Acquisition Term Loan"), which was used to fund a portion of the consideration in the Merger. The Acquisition Term Loan bears interest at Adjusted Term SOFR plus a margin of 1.25% subject to adjustment based on the Company's credit rating and matures on October 8, 2027. As a result of the Merger, the obligations of Merger Sub under the Acquisition Term Loan became obligations of the Company as the surviving corporation in the Merger. The Company repaid $350.4 million in unsecured debt financings in connection with the Merger.

*Secured debt financings*

As of March 31, 2026, the Company had an outstanding balance of $426.0 million in secured debt financings, and had pledged nine aircraft as collateral, with a net book value of $620.2 million. As of December 31, 2025, the Company had an outstanding balance of $493.6 million in secured debt financings and had pledged ten aircraft as collateral, with a net book value of $728.6 million. All of the Company's secured obligations as of March 31, 2026 and December 31, 2025 were recourse in nature. The Company repaid $254.2 million in secured debt financings in connection with the Merger.

------

**<u>[**Table of Contents**](#i2e83ec058a6942c6b0c099bda180c4b5_7)</u>**

**Sumisho Air Lease Corporation and Subsidiaries**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Unaudited)**

*Commercial paper program*

On January 21, 2025, the Company established a commercial paper program under which it could issue unsecured commercial paper up to a total of $2.0 billion outstanding at any time, with maturities of up to 397 days from the date of issue. The net proceeds from the issuance of commercial paper were used for general corporate purposes, which included, among other things, the purchase of commercial aircraft and the repayment of existing indebtedness. As of March 31, 2026 and December 31, 2025, the Company had an outstanding balance of $1.0 billion and $1.4 billion, respectively with a weighted average interest rate of 4.41% and 4.26%, respectively and a weighted average maturity of less than one month.

*Maturities*

Maturities of debt outstanding as of March 31, 2026 are as follows (in thousands):

---

| | |
|:---|:---|
| **Years ending December 31,** | |
| &nbsp;&nbsp;&nbsp;2026 | $5591630 |
| &nbsp;&nbsp;&nbsp;2027 | 4133520 |
| &nbsp;&nbsp;&nbsp;2028 | 3157636 |
| &nbsp;&nbsp;&nbsp;2029 | 3436006 |
| &nbsp;&nbsp;&nbsp;2030 | 2113410 |
| &nbsp;&nbsp;&nbsp;Thereafter | 1506847 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $19939049 |

---

**Note 4. Flight equipment subject to operating leases**

The following table summarizes the activities for the Company's flight equipment subject to operating leases for the three months ended March 31, 2026:

---

| | |
|:---|:---|
|  | **(in thousands)** |
| Net book value as of December 31, 2025 | $29053630 |
| Purchase of flight equipment | 781595 |
| Depreciation of flight equipment | (309783) |
| Flight equipment subject to operating leases reclassified to flight equipment held for sale | (628925) |
| Transfer of flight equipment to investment in sales-type lease | (21674) |
| Net book value as of March 31, 2026 | $28874843 |
| Accumulated depreciation as of March 31, 2026 | $(6857633) |

---

**Note 5. Flight Equipment Held for Sale**

As of March 31, 2026, the Company had 25 aircraft, with a carrying value of $940.3 million, which were classified as held for sale. The Company expects that the majority of the 25 aircraft currently classified as flight equipment held for sale will be sold during 2026. As of March 31, 2026, the Company had an aggregate of $197.7 million in purchase deposits pursuant to sale agreements related to two of the 25 aircraft, which amount is included in Accrued interest and other payables on the Consolidated Balance Sheets.

As of December 31, 2025, the Company had 12 aircraft, with a carrying value of $529.0 million, which were classified as held for sale.

During the three months ended March 31, 2026, the Company transferred 19 aircraft from flight equipment subject to operating leases to flight equipment held for sale and completed the sale of six aircraft from its held for sale portfolio. The Company ceases recognition of depreciation expense once an aircraft is classified as held for sale.

------

**<u>[**Table of Contents**](#i2e83ec058a6942c6b0c099bda180c4b5_7)</u>**

**Sumisho Air Lease Corporation and Subsidiaries**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Unaudited)**

The following table summarizes the activities of the Company's flight equipment held for sale for the three months ended March 31, 2026 based on carrying value:

---

| | |
|:---|:---|
| | **(in thousands)** |
| Flight equipment held for sale as of December 31, 2025 | $529016 |
| Flight equipment subject to operating leases reclassified to flight equipment held for sale | 628925 |
| Aircraft sales | (217611) |
| Flight equipment held for sale as of March 31, 2026 | $940330 |

---

**Note 6. Commitments and Contingencies**

*Aircraft Acquisitions*

As of March 31, 2026, the Company had contractual commitments to acquire a total of 206 new aircraft for delivery through 2031, with an estimated aggregate commitment (including adjustments for anticipated inflation) of $11.8 billion. The following table shows the Company's contractual delivery commitment schedule as of March 31, 2026:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Estimated Delivery Years** | **Estimated Delivery Years** | **Estimated Delivery Years** | **Estimated Delivery Years** | **Estimated Delivery Years** | **Estimated Delivery Years** | |
|<br>**Aircraft Type** | **Last 9 months of 2026** | **2027** | **2028** | **2029** | **2030** | **Thereafter** | **Total** |
| Airbus A220-100/300 | 1 | 8 | 14 | 8 |  |  | 31 |
| Airbus A320/321neo<sup>(1)</sup> | 18 | 38 | 34 | 34 |  |  | 124 |
| Airbus A330-900neo | 1 |  |  |  |  |  | 1 |
| Boeing 737-8/9 MAX | 16 | 21 | 2 |  |  | 5 | 44 |
| Boeing 787-9/10 | 5 | 1 |  |  |  |  | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total<sup>(2)</sup> | 41 | 68 | 50 | 42 |  | 5 | 206 |
| (1) The Company's Airbus A320/321neo aircraft orders include 13 long-range variants and 48 extra long-range variants. | (1) The Company's Airbus A320/321neo aircraft orders include 13 long-range variants and 48 extra long-range variants. | (1) The Company's Airbus A320/321neo aircraft orders include 13 long-range variants and 48 extra long-range variants. | (1) The Company's Airbus A320/321neo aircraft orders include 13 long-range variants and 48 extra long-range variants. | (1) The Company's Airbus A320/321neo aircraft orders include 13 long-range variants and 48 extra long-range variants. | (1) The Company's Airbus A320/321neo aircraft orders include 13 long-range variants and 48 extra long-range variants. | (1) The Company's Airbus A320/321neo aircraft orders include 13 long-range variants and 48 extra long-range variants. | (1) The Company's Airbus A320/321neo aircraft orders include 13 long-range variants and 48 extra long-range variants. |
| (2) On April 8, 2026, in connection with the closing of the Merger, SMBC AC acquired the Company's rights for the outstanding orderbook for undelivered aircraft. | (2) On April 8, 2026, in connection with the closing of the Merger, SMBC AC acquired the Company's rights for the outstanding orderbook for undelivered aircraft. | (2) On April 8, 2026, in connection with the closing of the Merger, SMBC AC acquired the Company's rights for the outstanding orderbook for undelivered aircraft. | (2) On April 8, 2026, in connection with the closing of the Merger, SMBC AC acquired the Company's rights for the outstanding orderbook for undelivered aircraft. | (2) On April 8, 2026, in connection with the closing of the Merger, SMBC AC acquired the Company's rights for the outstanding orderbook for undelivered aircraft. | (2) On April 8, 2026, in connection with the closing of the Merger, SMBC AC acquired the Company's rights for the outstanding orderbook for undelivered aircraft. | (2) On April 8, 2026, in connection with the closing of the Merger, SMBC AC acquired the Company's rights for the outstanding orderbook for undelivered aircraft. | (2) On April 8, 2026, in connection with the closing of the Merger, SMBC AC acquired the Company's rights for the outstanding orderbook for undelivered aircraft. |

---

Commitments for the acquisition of these aircraft, calculated at an estimated aggregate commitment (including adjustments for anticipated inflation) of approximately $11.8 billion as of March 31, 2026, are as follows:

---

| | |
|:---|:---|
| **Years ending December 31,** | **(in thousands)** |
| 2026 (excluding the three months ended March 31, 2026) | $2733318 |
| 2027 | 3889430 |
| 2028 | 2664185 |
| 2029 | 2130588 |
| 2030 | 47000 |
| Thereafter | 300841 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $11765362 |

---

The Company has made non-refundable deposits on flight equipment purchases of $1.1 billion as of March 31, 2026 and December 31, 2025, respectively, which are subject to manufacturer performance commitments.

------

**<u>[**Table of Contents**](#i2e83ec058a6942c6b0c099bda180c4b5_7)</u>**

**Sumisho Air Lease Corporation and Subsidiaries**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Unaudited)**

On April 8, 2026, in connection with the closing of the Merger, SMBC AC acquired the Company's rights to the outstanding orderbook for undelivered aircraft (the "Orderbook Acquisition"). The consideration paid by SMBC AC for the Orderbook Acquisition equaled the amount of pre-delivery payments that the Company had made to original equipment manufacturers in the aggregate for the undelivered aircraft as of April 8, 2026 plus a premium.

**Note 7. Net Investment in Sales-type Leases** 

As of March 31, 2026, the Company had sales-type leases for 17 aircraft and one engine. As of December 31, 2025, the Company had sales-type leases for 16 aircraft and one engine.

Net investment in sales-type leases is included in the Company's Consolidated Balance Sheets based on the present value of fixed payments under the contract and the residual value of the underlying asset, discounted at the rate implicit in the lease. The Company's investment in sales-type leases consisted of the following as of March 31, 2026:

---

| | |
|:---|:---|
| | **March 31, 2026** |
| | **(in thousands)** |
| Future minimum lease payments to be received | $362032 |
| Estimated residual values of leased flight equipment | 160542 |
| Less: Unearned income | (59777) |
| &nbsp;&nbsp;&nbsp;Net Investment in Sales-type Leases | $462797 |

---

As of March 31, 2026, future minimum lease payments to be received on sales-type leases were as follows:

---

| | |
|:---|:---|
| **Years ending December 31,** | **(in thousands)** |
| 2026 (excluding the three months ended March 31, 2026) | $35940 |
| 2027 | 47921 |
| 2028 | 49921 |
| 2029 | 43887 |
| 2030 | 43887 |
| Thereafter | 140476 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $362032 |

---

**Note 8. Rental Income**

As of March 31, 2026, minimum future rentals on non-cancellable operating leases of flight equipment in the Company's owned fleet, which have been delivered as of March 31, 2026 are as follows:

---

| | |
|:---|:---|
| **Years ending December 31,** | **(in thousands)** |
| 2026 (excluding the three months ended March 31, 2026) | $1993232 |
| 2027 | 2602216 |
| 2028 | 2466850 |
| 2029 | 2289751 |
| 2030 | 2124395 |
| Thereafter | 7728904 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $19205348 |

---

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**<u>[**Table of Contents**](#i2e83ec058a6942c6b0c099bda180c4b5_7)</u>**

**Sumisho Air Lease Corporation and Subsidiaries**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Unaudited)**

**Note 9. Earnings Per Share**

Basic earnings per share is computed by dividing net income by the weighted-average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that would occur if securities or other contracts to issue common stock were exercised or converted into common stock; however, potential common equivalent shares are excluded if the effect of including these shares would be anti-dilutive. The Company's two classes of common stock, prior to the Merger, Class A and Class B non-voting, had equal rights to dividends and income, and therefore, basic and diluted earnings per share are the same for each class of common stock. As of March 31, 2026, the Company did not have any Class B non-voting common stock outstanding.&nbsp;&nbsp;&nbsp;&nbsp;

Diluted earnings per share takes into account the vesting of restricted stock units using the treasury stock method. For the three months ended March 31, 2026, and 2025, the Company did not exclude any potentially dilutive securities, whose effect would have been anti-dilutive, from the computation of diluted earnings per share. The Company excluded 569,360 and 1,033,419 shares related to restricted stock units for which the performance metric had yet to be achieved as of March 31, 2026 and 2025, respectively.

The following table sets forth the reconciliation of basic and diluted earnings per share:

---

| | | |
|:---|:---|:---|
| | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
| | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
| | **2026** | **2025** |
| | **(in thousands, except share and per share)** | **(in thousands, except share and per share)** |
| &nbsp;&nbsp;&nbsp;**Basic earnings per share:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Numerator |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income | $125896 | $375832 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred stock dividends | (11081) | (11081) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income attributable to common stockholders | $114815 | $364751 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Denominator |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Weighted-average common shares outstanding | 111936166 | 111549903 |
| &nbsp;&nbsp;&nbsp;Basic earnings per share | $1.03 | $3.27 |
| &nbsp;&nbsp;&nbsp;**Diluted earnings per share:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Numerator |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income | $125896 | $375832 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred stock dividends | (11081) | (11081) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income attributable to common stockholders | $114815 | $364751 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Denominator |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Number of shares used in basic computation | 111936166 | 111549903 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Weighted-average effect of dilutive securities | 548490 | 480479 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Number of shares used in per share computation | 112484656 | 112030382 |
| &nbsp;&nbsp;&nbsp;Diluted earnings per share | $1.02 | $3.26 |

---

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**<u>[**Table of Contents**](#i2e83ec058a6942c6b0c099bda180c4b5_7)</u>**

**Sumisho Air Lease Corporation and Subsidiaries**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Unaudited)**

**Note 10. Other Assets**

Other assets consisted of the following as of March 31, 2026 and December 31, 2025:

---

| | | |
|:---|:---|:---|
| | **March 31, 2026** | **December 31, 2025** |
| | **(in thousands)** | **(in thousands)** |
| Lease incentives, net | $378884 | $384213 |
| Straight-line rent receivables and prepaid expenses | 208627 | 220509 |
| Lease receivables | 135722 | 143025 |
| Buyer furnished equipment | 113703 | 101514 |
| Investments in managed vehicles | 64625 | 88111 |
| Capitalized interest | 76125 | 74706 |
| Other assets | 276203 | 306072 |
|  | $1253889 | $1318150 |

---

**Note 11. Accrued Interest and Other Payables**

Accrued interest and other payables consisted of the following as of March 31, 2026 and December 31, 2025:

---

| | | |
|:---|:---|:---|
| | **March 31, 2026** | **December 31, 2025** |
| | **(in thousands)** | **(in thousands)** |
| Purchase deposits on aircraft sales | $210154 | $210256 |
| Lessor contributions | 291423 | 277154 |
| Accounts payable and accrued expenses | 198278 | 204336 |
| Accrued interest | 164509 | 169477 |
| Other liabilities | 199151 | 151122 |
|  | $1063515 | $1012345 |

---

**Note 12. Fair Value Measurements**

*Assets and Liabilities Measured at Fair Value on a Recurring and Non-recurring Basis*

The Company has three cross-currency swaps related to its Canadian dollar and Euro Medium-Term Notes. The fair value of these swaps as a foreign currency derivative are categorized as a Level 2 measurement in the fair value hierarchy and are measured on a recurring basis. As of March 31, 2026, the estimated fair value of the Company's foreign currency swaps were, in the aggregate, derivative assets of $27.6 million and derivative liabilities of $7.9 million, respectively. As of December 31, 2025, the estimated fair value of the Company's foreign currency swaps were, in the aggregate, derivative assets of $46.4 million and derivative liabilities of $2.3 million, respectively. Derivative assets are included in Other assets and derivative liabilities are included in Accrued interest and other payables on the Company's Consolidated Balance Sheets.

*Financial Instruments Not Measured at Fair Values*

The fair value of debt financing is estimated based on the quoted market prices for the same or similar issues, or on the current rates offered to the Company for debt of the same remaining maturities, which would be categorized as a Level 2 measurement in the fair value hierarchy. The estimated fair value of debt financing as of March 31, 2026 and December 31, 2025, was $19.7 billion compared to a book value of $19.9 billion, respectively.

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**<u>[**Table of Contents**](#i2e83ec058a6942c6b0c099bda180c4b5_7)</u>**

**Sumisho Air Lease Corporation and Subsidiaries**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Unaudited)**

The following financial instruments are not measured at fair value on the Company's Consolidated Balance Sheets at March 31, 2026, but require disclosure of their fair values: cash and cash equivalents and restricted cash. The estimated fair value of such instruments at March 31, 2026 and December 31, 2025 approximates their carrying value as reported on the Consolidated Balance Sheets. The fair value of all these instruments would be categorized as Level 1 in the fair value hierarchy.

**Note 13. Stockholders' Equity**

The Company was authorized to issue up to 500,000,000 shares of Class A common stock, $0.01 par value, at March 31, 2026 and December 31, 2025. As of March 31, 2026 and December 31, 2025, the Company had 112,415,671 and 112,035,408 shares of Class A common stock issued and outstanding, respectively. The Company was authorized to issue up to 10,000,000 shares of Class B common stock, $0.01 par value at March 31, 2026 and December 31, 2025. The Company did not have any shares of Class B non-voting common stock, $0.01 par value, issued or outstanding as of March 31, 2026 or December 31, 2025.

The Company was authorized to issue up to 50,000,000 shares of preferred stock, $0.01 par value, at March 31, 2026 and December 31, 2025. As of March 31, 2026 and December 31, 2025, the Company had 300,000 shares of 4.65% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series B (the "Series B Preferred Stock"), $0.01 par value, issued and outstanding with an aggregate liquidation preference of $300.0 million ($1,000 per share), 300,000 shares of 4.125% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series C (the "Series C Preferred Stock"), $0.01 par value, issued and outstanding with an aggregate liquidation preference of $300.0 million ($1,000 per share), and 300,000 shares of 6.00% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series D (the "Series D Preferred Stock"), $0.01 par value, issued and outstanding with an aggregate liquidation preference of $300.0 million ($1,000 per share).

The following table summarizes the Company's preferred stock issued and outstanding as of March 31, 2026 (in thousands, except for share amounts and percentages):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Shares Issued and Outstanding as of March 31, 2026** | **Liquidation Preference**<br>**as of** <br>**March 31, 2026**<sup>(1)</sup> | **Liquidation Preference**<br>**as of** <br>**March 31, 2026**<sup>(1)</sup> | **Issue Date** | **Dividend Rate in Effect at March 31, 2026**<sup>(2)</sup> | **Next dividend rate reset date** | **Dividend rate after reset date** |
| Series B | 300000 | $| 300000 | March 2, 2021 | 4.65% | June 15, 2026 | 5 Yr U.S. Treasury plus 4.076% |
| Series C | 300000 | 300000 | 300000 | October 13, 2021 | 4.125% | December 15, 2026 | 5 Yr U.S. Treasury plus 3.149% |
| Series D | 300000 | 300000 | 300000 | September 24, 2024 | 6.00% | December 15, 2029 | 5 Yr U.S. Treasury plus 2.560%<sup>(3)</sup> |
| Total | 900000 | $| 900000 |  |  |  |  |
| (1) The Series B Preferred Stock, Series C Preferred Stock and Series D Preferred Stock each have a redemption price of $1,000.00 per share, plus any declared and unpaid dividends to, but excluding, the redemption date without accumulation of any undeclared dividends. | (1) The Series B Preferred Stock, Series C Preferred Stock and Series D Preferred Stock each have a redemption price of $1,000.00 per share, plus any declared and unpaid dividends to, but excluding, the redemption date without accumulation of any undeclared dividends. | (1) The Series B Preferred Stock, Series C Preferred Stock and Series D Preferred Stock each have a redemption price of $1,000.00 per share, plus any declared and unpaid dividends to, but excluding, the redemption date without accumulation of any undeclared dividends. | (1) The Series B Preferred Stock, Series C Preferred Stock and Series D Preferred Stock each have a redemption price of $1,000.00 per share, plus any declared and unpaid dividends to, but excluding, the redemption date without accumulation of any undeclared dividends. | (1) The Series B Preferred Stock, Series C Preferred Stock and Series D Preferred Stock each have a redemption price of $1,000.00 per share, plus any declared and unpaid dividends to, but excluding, the redemption date without accumulation of any undeclared dividends. | (1) The Series B Preferred Stock, Series C Preferred Stock and Series D Preferred Stock each have a redemption price of $1,000.00 per share, plus any declared and unpaid dividends to, but excluding, the redemption date without accumulation of any undeclared dividends. | (1) The Series B Preferred Stock, Series C Preferred Stock and Series D Preferred Stock each have a redemption price of $1,000.00 per share, plus any declared and unpaid dividends to, but excluding, the redemption date without accumulation of any undeclared dividends. | (1) The Series B Preferred Stock, Series C Preferred Stock and Series D Preferred Stock each have a redemption price of $1,000.00 per share, plus any declared and unpaid dividends to, but excluding, the redemption date without accumulation of any undeclared dividends. |
| (2) Dividends on preferred stock are discretionary and non-cumulative. When declared, dividends on the Series B Preferred Stock, Series C Preferred Stock and Series D Preferred Stock are reset every five years and payable quarterly in arrears. | (2) Dividends on preferred stock are discretionary and non-cumulative. When declared, dividends on the Series B Preferred Stock, Series C Preferred Stock and Series D Preferred Stock are reset every five years and payable quarterly in arrears. | (2) Dividends on preferred stock are discretionary and non-cumulative. When declared, dividends on the Series B Preferred Stock, Series C Preferred Stock and Series D Preferred Stock are reset every five years and payable quarterly in arrears. | (2) Dividends on preferred stock are discretionary and non-cumulative. When declared, dividends on the Series B Preferred Stock, Series C Preferred Stock and Series D Preferred Stock are reset every five years and payable quarterly in arrears. | (2) Dividends on preferred stock are discretionary and non-cumulative. When declared, dividends on the Series B Preferred Stock, Series C Preferred Stock and Series D Preferred Stock are reset every five years and payable quarterly in arrears. | (2) Dividends on preferred stock are discretionary and non-cumulative. When declared, dividends on the Series B Preferred Stock, Series C Preferred Stock and Series D Preferred Stock are reset every five years and payable quarterly in arrears. | (2) Dividends on preferred stock are discretionary and non-cumulative. When declared, dividends on the Series B Preferred Stock, Series C Preferred Stock and Series D Preferred Stock are reset every five years and payable quarterly in arrears. | (2) Dividends on preferred stock are discretionary and non-cumulative. When declared, dividends on the Series B Preferred Stock, Series C Preferred Stock and Series D Preferred Stock are reset every five years and payable quarterly in arrears. |
| (3) With respect to the Series D Preferred Stock, the dividend rate during any reset period is subject to a 6.00% floor.  | (3) With respect to the Series D Preferred Stock, the dividend rate during any reset period is subject to a 6.00% floor.  | (3) With respect to the Series D Preferred Stock, the dividend rate during any reset period is subject to a 6.00% floor.  | (3) With respect to the Series D Preferred Stock, the dividend rate during any reset period is subject to a 6.00% floor.  | (3) With respect to the Series D Preferred Stock, the dividend rate during any reset period is subject to a 6.00% floor.  | (3) With respect to the Series D Preferred Stock, the dividend rate during any reset period is subject to a 6.00% floor.  | (3) With respect to the Series D Preferred Stock, the dividend rate during any reset period is subject to a 6.00% floor.  | (3) With respect to the Series D Preferred Stock, the dividend rate during any reset period is subject to a 6.00% floor.  |

---

In connection with the Merger, on April 8, 2026, each share of the Company's Class A common stock was converted into the right to receive $65.00 per share ("Merger Consideration"), other than shares that were canceled or converted into shares of the surviving corporation pursuant to the Merger Agreement. The Series B Preferred Stock, Series C Preferred Stock and Series D Preferred Stock remained outstanding after the Merger. The Company notified the NYSE of the completion of the Merger and requested that trading in the Class A Common Stock be suspended and the Class A Common Stock be withdrawn from listing on the NYSE which was effective on April 18, 2026.

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**<u>[**Table of Contents**](#i2e83ec058a6942c6b0c099bda180c4b5_7)</u>**

**Sumisho Air Lease Corporation and Subsidiaries**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Unaudited)**

**Note 14. Stock-based Compensation and Other Compensation**

*Stock-based Compensation*

On May 3, 2023, the Class A common stockholders of the Company approved the Air Lease Corporation 2023 Equity Incentive Plan (the "2023 Plan"). As of March 31, 2026, the number of shares of Class A Common Stock available for new award grants under the 2023 Plan was approximately 3,278,351. The Company has issued restricted stock units ("RSUs") with four different vesting criteria: those RSUs that vest based on the attainment of book-value goals, those RSUs that vest based on the attainment of total shareholder return ("TSR") goals (collectively, the "Performance-based RSU"), time-based RSUs that vest ratably over a time period of three years and RSUs that cliff vest at the end of a one-year or two-year period (collectively, the "Time-based RSUs").

The Company recorded $5.1 million and $17.6 million of stock-based compensation expense related to RSUs for the three months ended March 31, 2026 and 2025, respectively.

Stock-based compensation cost for RSUs is measured at the grant date based on fair value and recognized over the vesting period. The fair value of time-based and book value RSUs is determined based on the closing market price of the Company's Class A common stock on the date of grant, while the fair value of RSUs that vest based on the attainment of TSR goals is determined at the grant date using a Monte Carlo simulation model. Included in the Monte Carlo simulation model were certain assumptions regarding a number of highly complex and subjective variables, such as expected volatility, risk-free interest rate and expected dividends. To appropriately value the award, the risk-free interest rate is estimated for the time period from the valuation date until the vesting date and the historical volatilities were estimated based on a historical timeframe equal to the time from the valuation date until the end date of the performance period.

During the three months ended March 31, 2026, the Company issued 146,329 RSUs of which 41,212 were TSR RSUs and 105,117 were book value RSUs related to outstanding awards granted in 2023 for which the performance period ended December 31, 2025 based on the actual performance vesting achieved. The following table summarizes the activities for the Company's unvested RSUs for the three months ended March 31, 2026:

---

| | | |
|:---|:---|:---|
| | **Unvested Restricted Stock Units** | **Unvested Restricted Stock Units** |
| | **Number of <br>Shares** | **Weighted-Average <br>Grant-Date <br>Fair Value** |
| &nbsp;&nbsp;&nbsp;Unvested at December 31, 2025 | 1373662 | $45.62 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Granted | 146329 | $46.22 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vested <sup>(1)</sup> | (628526) | $44.47 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Forfeited/canceled |  | $— |
| &nbsp;&nbsp;&nbsp;Unvested at March 31, 2026 | 891465 | $46.53 |
| &nbsp;&nbsp;&nbsp;Expected to vest after March 31, 2026<sup>(2)</sup> | 1085795 | $44.61 |
| (1) During the three months ended March 31, 2026, 304,008 performance-based RSUs and 324,518 time-based RSUs vested. | (1) During the three months ended March 31, 2026, 304,008 performance-based RSUs and 324,518 time-based RSUs vested. | (1) During the three months ended March 31, 2026, 304,008 performance-based RSUs and 324,518 time-based RSUs vested. |
| (2) Expected to vest amounts for book value based RSUs reflect probability weighted vesting estimates, net of forfeitures, while expected to vest amounts for TSR based RSUs reflect target awards outstanding, adjusted only for forfeitures, as the market condition is incorporated into grant date fair value and not subsequently reassessed. | (2) Expected to vest amounts for book value based RSUs reflect probability weighted vesting estimates, net of forfeitures, while expected to vest amounts for TSR based RSUs reflect target awards outstanding, adjusted only for forfeitures, as the market condition is incorporated into grant date fair value and not subsequently reassessed. | (2) Expected to vest amounts for book value based RSUs reflect probability weighted vesting estimates, net of forfeitures, while expected to vest amounts for TSR based RSUs reflect target awards outstanding, adjusted only for forfeitures, as the market condition is incorporated into grant date fair value and not subsequently reassessed. |

---

As of March 31, 2026, there was $18.9 million of unrecognized compensation expense related to unvested stock-based payments granted to employees. Total unrecognized compensation expense will be recognized over a weighted-average remaining period of 1.52 years.

In connection with the Merger, each Time-based RSU was converted into the contingent right to receive an amount in cash equal to the Merger Consideration. Each Performance-based RSU was converted into a contingent right to receive an amount in cash equal to the product of the Merger Consideration multiplied by the number of shares issuable based upon the greater of the target level of performance and the actual level of performance calculated as of the latest practicable date prior to the Merger. Each converted RSU is subject to the same vesting terms and conditions immediately prior to the Merger, except that Performance-based RSUs are no longer subject to any performance-based conditions.

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**<u>[**Table of Contents**](#i2e83ec058a6942c6b0c099bda180c4b5_7)</u>**

**Sumisho Air Lease Corporation and Subsidiaries**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Unaudited)**

*Other Compensation*

For the three months ended March 31, 2025, the Company recorded a $9.2 million payroll expense accrual resulting from the retirement of its former Chairman from his executive role, which will be payable in substantially equal installments in accordance with the Company's normal payroll practices through May 2027. The additional payroll expense was included in selling, general and administrative expenses in the Company's Consolidated Statements of Income, while the liability is included in Accrued interest and other payables on the Company's Consolidated Balance Sheets.

**Note 15. Aircraft Under Management** 

As of March 31, 2026, the Company managed 40 aircraft across three aircraft management platforms. The Company managed 25 aircraft through the Blackbird investment funds, 13 aircraft through its Thunderbolt platform and two aircraft on behalf of a financial institution.

The Blackbird investment funds invest in commercial jet aircraft and lease them to airlines throughout the world. The Company provides management services to these funds for a fee. As of March 31, 2026, the Company's non-controlling interests in each fund were 9.5% and are accounted for under the equity method of accounting. The Company's investments in these funds aggregated $56.0 million and $79.5 million as of March 31, 2026 and December 31, 2025, respectively, and are included in Other assets on the Consolidated Balance Sheets.

The Thunderbolt platform facilitates the sale of mid-life aircraft to investors while allowing the Company to continue the management of these aircraft for a fee. The Company has non-controlling interests in the two entities in the platform of approximately 5.0%, which are accounted for under the cost method of accounting. The Company's total investment in aircraft sold through its Thunderbolt platform was $8.6 million as of March 31, 2026 and December 31, 2025, respectively, and are included in Other assets on the Consolidated Balance Sheets.

Finally, the Company also manages two aircraft for a financial institution for a fee. The Company does not have any equity interest in this financial institution nor ownership of these aircrafts.

In connection with the Merger, the Company or a subsidiary of the Company will continue to manage the aircraft management platforms above; however, certain services for the aircraft and leases will be subserviced by SMBC AC.

**Note 16. Servicing Agreement**

On April 8, 2026, in connection with the closing of the Merger, SMBC AC entered into a Servicing Agreement with Parent, guaranteed by the Company, to act as exclusive servicer to the Company, in respect of its aircraft leased to non-U.S. airlines (the "Servicing Agreement"). The remaining aircraft leased to U.S. airlines as of the closing of the Merger will continue to be serviced by the Company. Under the Servicing Agreement, SMBC AC is responsible for the provision of technical and lease administration services, including aircraft marketing, aircraft trading, technical asset management and risk management for the aircraft leased to non-U.S. airlines. The Servicing Agreement contains provisions to address potential conflicts of interest and also requires SMBC AC, as servicer, to act in accordance with a prescribed standard of care. Pursuant to the Servicing Agreement, Parent will pay or procure the payment, which the Company guarantees, to SMBC AC of customary fees for services rendered thereunder, which relate to the leasing, acquisition and sale of aircraft subject to the Servicing Agreement.

**Note 17. Subsequent Events**

On April 8, 2026, the Company completed the Merger discussed in Note 1 above, which occurred subsequent to March 31, 2026. The accompanying consolidated financial statements do not reflect the effects of this transaction, as it represents a non-recognized subsequent event.

On April 8, 2026, in connection with the closing of the Merger, the Company assumed non-binding agreements entered into by the Parent in December 2025 to sell a total of 70 aircraft with a net book value as of March 31, 2026 of approximately $4.5 billion to two parties. The Company currently expects the sales of the aircraft pertaining to these agreements to be completed in the next 12 months.

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**<u>[**Table of Contents**](#i2e83ec058a6942c6b0c099bda180c4b5_7)</u>**

**Sumisho Air Lease Corporation and Subsidiaries**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Unaudited)**

On May 5, 2026, the Company's board of directors approved quarterly cash dividends for the Company's Series B, Series C and Series D preferred stock. The following table summarizes the details of the dividends that were declared:

---

| | | | |
|:---|:---|:---|:---|
| **Title of each class** | **Cash dividend per share** | **Record Date** | **Payment Date** |
| Series B Preferred Stock | $11.625 | May 29, 2026 | June 15, 2026 |
| Series C Preferred Stock | $10.3125 | May 29, 2026 | June 15, 2026 |
| Series D Preferred Stock | $15.00 | May 29, 2026 | June 15, 2026 |

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**<u>[**Table of Contents**](#i2e83ec058a6942c6b0c099bda180c4b5_7)</u>**

**ITEM 2.&nbsp;&nbsp;&nbsp;&nbsp;MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

The following discussion and analysis of our financial condition and results of operations should be read together with our Consolidated Financial Statements and related notes included in Part I, Item 1 of this Quarterly Report on Form 10-Q.

**Overview**

Sumisho Air Lease Corporation (the "Company", "SAL", "we", "our" or "us") is one of the largest aircraft leasing companies in the world, with an owned fleet comprised of 496 aircraft as of March 31, 2026. The net book value of flight equipment subject to operating leases was $28.9 billion as of March 31, 2026 with a weighted average age of 5.0 years and a weighted average remaining lease term of 7.2 years.

We believe that a key factor which has underpinned our success has been our disciplined approach to asset investment. We have consistently invested in liquid and new technology aircraft which display the strongest long-term value retention characteristics. These include the Airbus A220 family, Airbus A320ceo/neo family, Airbus A330neo family, Airbus A350 family, Boeing 737 NG/MAX family and Boeing 787 family of aircraft.

Our focus on aircraft liquidity is designed to ensure that our portfolio remains in demand with the largest number of operators, in the most jurisdictions globally, maximizing the options available to lease or re-lease aircraft at any given point in time. This focus has resulted in our fleet<sup>1</sup>, by carrying value as of March 31, 2026, comprised of approximately 83.2% new technology<sup>2</sup> aircraft. The high-quality and in-demand nature of our portfolio is also reflected in the 100.0% utilization rate of our fleet as of March 31, 2026.

On April 8, 2026, we completed the previously announced merger (the "Merger") of Takeoff Merger Sub Inc., a Delaware corporation ("Merger Sub"), with and into Air Lease Corporation, with Air Lease Corporation surviving the Merger as an indirect subsidiary of Sumisho Air Lease Corporation Designated Activity Company, an Irish private limited company ("Parent"). Parent is a new holding company established in connection with the Merger and is jointly owned, directly or indirectly, by Sumitomo Corporation, a Japanese corporation ("Sumitomo"), SMBC Aviation Capital Limited, a company incorporated with limited liability in Ireland ("SMBC AC"), investment vehicles affiliated with Apollo managed funds ("Apollo") and Brookfield ("Brookfield"). The Merger was effected pursuant to an Agreement and Plan of Merger, dated as of September 1, 2025 (the "Merger Agreement"), by and among Air Lease Corporation, Parent and Merger Sub. We notified the New York Stock Exchange (the "NYSE") of the completion of the Merger and requested that trading in the Class A Common Stock be suspended and the Class A Common Stock be withdrawn from listing on the NYSE which was effective on April 18, 2026. For additional information on the Merger, see "—The Merger and Sumisho Air Lease—Overview of Merger".

In connection with the closing of the Merger, SMBC AC acquired our outstanding orderbook for undelivered aircraft (the "Orderbook Acquisition") and became servicer to the majority of our fleet. For additional information, see "—The Merger and Sumisho Air Lease—The Orderbook Acquisition" and "—The Merger and Sumisho Air Lease—The Servicing Agreement" below.

**First Quarter Overview** 

During the three months ended March 31, 2026, we purchased 12 new aircraft from Airbus and Boeing and sold six aircraft. We ended the first quarter with a total of 496 aircraft in our owned fleet. The net book value of our flight equipment subject to operating leases was $28.9 billion as of March 31, 2026 compared to $29.1 billion as of December 31, 2025. The weighted average age of our flight equipment subject to operating leases was 5.0 years and the weighted average lease term remaining was 7.2 years as of March 31, 2026. Our managed fleet was comprised of 40 aircraft as of March 31, 2026 compared to 45 aircraft as of December 31, 2025. We have a globally diversified customer base comprised of 103 airlines in 52 countries as of March 31, 2026. We continued to maintain a strong lease utilization rate of 100.0% for the three months ended March 31, 2026.

<sup>1</sup> References throughout this Quarterly Report on Form 10-Q to "our fleet" refer to the aircraft included in flight equipment subject to operating leases, flight equipment held for sale and aircraft classified as net investment in sales-type leases unless the context indicates otherwise.

<sup>2</sup> New technology aircraft are defined as A220 family, A320neo family, A330neo family, A350 family, Boeing 737 MAX family and Boeing 787 family aircraft types.

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**<u>[**Table of Contents**](#i2e83ec058a6942c6b0c099bda180c4b5_7)</u>**

As of March 31, 2026, we had commitments to purchase 206 aircraft from Airbus and Boeing for delivery through 2031, with an estimated aggregate commitment of $11.8 billion. These commitments to purchase were acquired by SMBC AC in the Orderbook Acquisition, resulting in us no longer having further commitments to purchase as of April 8, 2026.

Our total revenues for the quarter ended March 31, 2026 increased by 0.1% to $739.2 million, compared to the quarter ended March 31, 2025. Our total revenues increased from the prior year primarily due to the growth in our fleet and an increase in our portfolio yield since March 31, 2025, partially offset by a decrease in aircraft sales activity. During the three months ended March 31, 2026, we recorded $53.3 million in gains from the sale of six aircraft compared to $60.9 million in gains from the sale of 16 aircraft and $7.6 million from one sales-type lease for the three months ended March 31, 2025. In addition, we had an $8.5 million decrease in management fee revenue and a $4.0 million decrease in other income, which includes interest income, foreign currency fluctuations on our sales-type leases and other miscellaneous income from the prior year period.

Our net income attributable to common stockholders for the three months ended March 31, 2026 decreased to $114.8 million, or $1.02 per diluted share, from $364.8 million, or $3.26 per diluted share, for the three months ended March 31, 2025. In the prior year, we benefited from a $331.9 million settlement of insurance claims with certain insurers related to aircraft detained in Russia, as well as higher gains on sales, resulting in a decrease in our net income attributable to common stockholders in the current period. These were slightly offset by higher total rental of flight equipment revenue in the current period and an overall decrease in our total operating expenses, excluding the recovery of our Russian fleet write-off.

For the three months ended March 31, 2026, we recorded adjusted net income before income taxes<sup>3</sup> of $165.4 million, or $1.47 per adjusted diluted share, compared to adjusted net income before income taxes of $169.5 million, or $1.51 per adjusted diluted share, for the three months ended March 31, 2025. Despite the increase in our rental revenues due to the growth of our fleet and higher portfolio lease yield in the current period, our adjusted net income decreased primarily due to lower sales activity and an increase in depreciation expense, partially offset by a decrease in interest expense due to lower average debt balances during the period.

**The Merger and Sumisho Air Lease**

***Overview of Merger***

As noted above, we completed the Merger on April 8, 2026 (the "Effective Time"), at which time we changed our name to Sumisho Air Lease Corporation, and we became a wholly owned subsidiary of Parent. Each share of our Class A common stock was converted into the right to receive $65.00 per share in the Merger, other than shares that were canceled or converted into shares of the surviving corporation pursuant to the Merger Agreement. Our Series B preferred stock, Series C preferred stock and Series D preferred stock remained outstanding after the Merger.

Following the consummation of the Merger,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Sumitomo Corporation is the beneficial owner of a 37.51% economic stake in us and indirectly holds a 47.51% voting interest in us;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• SMBC AC is the indirect holder of a 24.99% economic stake in us, indirectly holds a 4.99% voting interest in us, and is also the servicer to the majority of our fleet;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Apollo Global Management Inc. manages or advises entities that indirectly hold an 18.75% economic stake in us and indirectly hold a 23.75% voting interest in us; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Brookfield Asset Management Ltd. manages or advises persons and Brookfield's partners indirectly hold an 18.75% economic stake in us and indirectly hold a 23.75% voting interest in us.

We refer to our four beneficial stockholders collectively as the "Sumisho Investors".

<sup>3</sup> Adjusted net income before income taxes excludes the effects of certain non-cash items, one-time or non-recurring items that are not expected to continue in the future and certain other items. Adjusted net income before income taxes and adjusted diluted earnings per share before income taxes are measures of financial and operational performance that are not defined by U.S. Generally Accepted Accounting Principles ("GAAP"). See "Results of Operations" below for a discussion of adjusted net income before income taxes and adjusted diluted earnings per share before income taxes as non-GAAP measures and a reconciliation of these measures to net income attributable to common stockholders.

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***Our Governance and our Material Subsidiaries after the Merger***

Upon consummation of the Merger, we became a wholly owned indirect subsidiary of Parent, and the Sumisho Investors, indirectly, control all of our common equity interests. The Sumisho Investors, through their ownership of Parent, have indirect control over material corporate transactions of the Company. Sumitomo and SMBC AC are each entitled to appoint two directors to the board of directors of Parent, and Apollo and Brookfield are each entitled to appoint one director to the board of directors of Parent. Further, members of the board of directors of Parent may serve on the board of directors of any material subsidiary of Parent (including us) or any committee thereof, subject to local residency and similar requirements of law and except as may be otherwise agreed by the Sumisho Investors (subject to certain limitations).

Upon consummation of the Merger, Noriyuki Hiruta was appointed to serve as our Chief Executive Officer, President and Secretary, David Swan was appointed to serve as our Chief Commercial Officer, and Sabrina Lemmens was appointed to serve as our Chief Financial Officer, which we refer to as our "executive management team". Mr. Hiruta, Mr. Swan and Ms. Lemmens were also elected as the directors of Sumisho Air Lease Corporation.

The following corporate actions by us require majority board approval by the board of directors of Parent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adoption of any annual business plan or any amendments or deviations from the approved annual business plan then in effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Any increase or decrease of the number of our issued and/or authorized equity interests, or securities convertible into or exercisable or exchangeable for our equity interests, subject to certain exceptions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Any dividend or distribution on, or redemption or repurchase of, any of our equity interests, subject to certain exceptions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Certain non-ordinary course acquisitions and dispositions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Any entry into a joint venture or partnership, subject to certain exceptions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Incurrence of any indebtedness for borrowed money of Parent or its subsidiaries, including us;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Changes in accounting policies subject to certain exceptions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Any amendment or modification to our organizational documents or the terms of any securities issued by us;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Initiating or settling any litigation, arbitration or other legal action that involves, or is reasonably expected to involve us, subject to certain exceptions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Entry into certain affiliate transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Hiring or terminating any member of our executive management team, entering into or materially modifying any employment agreement with any member of our executive management team and setting the compensation for any member of our executive management team; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Voluntarily commencing any liquidation, winding up, dissolution, bankruptcy or reorganization or similar proceeding with respect to us.

The following corporate actions with respect to us require unanimous consent by the board of directors of Parent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Any non-pro rata dividend or distribution in respect of our equity securities, subject to certain exceptions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Any sale of us or substantially all of our assets, subject to certain exceptions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Certain non-ordinary course acquisitions and dispositions and entry into certain joint ventures or partnerships;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Any issuance of equity securities of Parent or its subsidiaries that rank senior to the ordinary shares of Parent with respect to the right to dividends or distributions, subject to certain exceptions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Entry into a new line of business unrelated to aircraft leasing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Any amendment or modification to our organizational documents or the terms of any securities issued by us, subject to certain exceptions; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Voluntarily commencing any liquidation, winding up, dissolution, bankruptcy or reorganization or similar proceeding with respect to us.

***The Orderbook Acquisition***

On April 8, 2026, in connection with the closing of the Merger, SMBC AC acquired our rights to the outstanding orderbook for undelivered aircraft. The consideration paid by SMBC AC for the Orderbook Acquisition equaled the amount of pre-delivery payments that we had made to original equipment manufacturers in the aggregate for the undelivered aircraft as of the Effective Time plus a premium.

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***The Servicing Agreement***

On April 8, 2026, in connection with the closing of the Merger, SMBC AC entered into a Servicing Agreement with Parent, guaranteed by us, to act as exclusive servicer to us, in respect of our aircraft leased to non-U.S. airlines (the "Servicing Agreement"). The remaining aircraft leased to U.S. airlines as of the closing of the Merger will continue to be serviced by us. Under the Servicing Agreement, SMBC AC is responsible for the provision of technical and lease administration services, including aircraft marketing, aircraft trading, technical asset management and risk management for the aircraft leased to non-U.S. airlines. The Servicing Agreement contains provisions to address potential conflicts of interest and also requires SMBC AC, as servicer, to act in accordance with a prescribed standard of care. Pursuant to the Servicing Agreement, Parent will pay or procure the payment to SMBC AC of customary fees for services rendered thereunder, which relate to the leasing, acquisition and sale of aircraft subject to the Servicing Agreement.

The main categories of services that SMBC AC, as Servicer, provides pursuant to the Servicing Agreement are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• invoicing rent payments and other amounts due under various leases;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• monitoring receipt of payments, letters of credit and credit support under various leases;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• lease administration and enforcement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• monitoring the performance of maintenance obligations of lessees under the leases and delivering and accepting redelivery of aircraft under lease;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• monitoring the performance of insurance obligations of lessees under the leases;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• making any amendments or modifications to any lease as the Servicer deems reasonably necessary or appropriate, subject to certain core lease provisions and other limited restrictions requiring approval from Parent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• taking actions with respect to any option or right of any lessee and the enforcement of the obligations of each lessee under each lease as the Servicer deems reasonably necessary or appropriate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• periodic reporting of information relating to the aircraft portfolio;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• aircraft marketing and remarketing, including lease negotiation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• asset sales and acquisition services including marketing and sale negotiations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• assisting with the compliance by us of concentration and investment limitations for the aircraft fleet set forth in our business plan; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• assisting with the preparation of a proposed operating budget and asset expenses budget for each year.

If a conflict of interest arises in respect of SMBC AC's performance of the services under the Servicing Agreement, the "Conflicts Standard" requires that SMBC AC will perform the services in good faith and to the extent that our aircraft and another asset owned or administered by SMBC AC are substantially similar in terms of objectively identifiable characteristics relevant for purposes of the particular services to be performed, SMBC AC will not discriminate between those assets on an unreasonable basis.

If SMBC AC determines that due to a conflict of interest, it would not be appropriate to provide one or more of the services in accordance with the "Conflicts Standard" (a "Conflict Matter"), SMBC AC may, at its discretion:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• suspend performance of some or all of the services in respect of the Conflict Matter to the extent, and for the period, necessary to mitigate the conflict of interest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• cease performance of some or all of the services in respect of the Conflict Matter to the extent necessary to mitigate the conflict of interest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• suspend performance of all of the services with respect to the relevant aircraft or lease to the extent, and for the period, necessary to mitigate the conflict of interest; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• (if the Servicer determines that none of the above would satisfactorily mitigate the conflict of interest), terminate the Servicing Agreement in relation to the relevant aircraft or lease.

In the case of a Conflict Matter, Parent may be required to appoint a representative to act in relation to such Conflict Matter. Parent is not entitled to terminate the Servicing Agreement as a result of a conflict of interest unless SMBC AC fails in any material respect to perform any material services in accordance with the Conflicts Standard (subject to a materiality threshold and a fifteen business day grace period).

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***SMBC AC, as Servicer***

SMBC AC became the exclusive servicer to the majority of our fleet upon closing of the Merger with responsibility for the provision of lease administration services including airline marketing, aircraft trading, technical asset management and credit risk management. We believe that this arrangement, which entrusts a single servicer with the delivery of these key functions, enables us to leverage SMBC AC's leading aircraft leasing capabilities.

An overview of SMBC AC's expertise, as aircraft servicer, is outlined below:

*Industry-Leading Aircraft Marketing Platform*

SMBC AC's marketing professionals are spread across a broad range of locations globally and enjoy relationships with a strong majority of the world's airlines. The globally dispersed nature of this team ensures that its members are located as close as possible, and also broadly within the same time zones as the customers they manage. This supports their ability to meet the needs of their customers in a timely and effective manner.

In addition to marketing the operating lease products of SMBC AC, they also support the marketing of their shareholders' broader aviation finance product offerings through an integrated marketing process. This includes, among others, commercial debt, Japanese tax leasing structures, and engine leases.

The ability to offer airline customers this full suite of aviation financing solutions is a key differentiator amongst the broader leasing peer group.

*Strong Trading Expertise*

Sales of aircraft assets are part of SMBC AC's portfolio management strategy. SMBC AC has an experienced team of aircraft trading professionals dedicated to disposing of its aircraft assets and cultivating relationships across a broad spectrum of investors globally.

A successful sales strategy over this sustained time period begins with disciplined procurement, purchasing the correct aircraft at an attractive price and placing aircraft on well-structured leases with good customers. SMBC AC takes a disciplined approach to asset selection, focusing on the most liquid aircraft types, which facilitates it having a higher proportion of trading activity relative to the majority of the wider sector.

An active aircraft trading program provides an effective portfolio management tool to maintain the low average age of a fleet and manage airline concentrations, asset residual value and lease remarketing risk while enabling a lessor to trade in scale with its airline customers and recycle and redeploy capital on new aircraft opportunities.

Aircraft sales are also a source of fee income from associated aircraft investment servicing opportunities. As of March 31, 2026, SMBC AC serviced 275 aircraft on behalf of affiliated companies and third parties, a large proportion of whom are investors to whom it has sold an operating lease asset but who do not have an operating lease management platform.

As part of its long-term disposal strategy, it intends to continue to leverage its shareholders' network of relationships in the Japanese domestic market to sell a greater proportion of aircraft into the Japanese investor market.

*Technical Asset Management Expertise*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.SMBC AC's technical team is located across their global offices in Dublin, Amsterdam, Hong Kong, Singapore and Miami.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.The technical team is split into two separate branches—project management and asset management. The project managers are the technical leads on cross functional deal teams for orderbook aircraft placement and sale and lease back transactions and are responsible for the negotiation of the technical elements of letters of intent and leases. This team demonstrates their industry-leading experience in managing up to 50 used aircraft transitions annually.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.The asset managers are the technical leads on cross-functional deal teams for aircraft trading transactions and are also responsible for the technical oversight of SMBC AC's on-lease owned and serviced aircraft. This includes everything from overseeing the delivery of new aircraft from the assembly lines of the manufacturers (including Airbus and Boeing) to post-delivery events, including conducting physical inspections of aircraft and their associated records and managing the transition of the aircraft from one lessee to the next.

*Risk Management Approach*

As a subsidiary of one of the largest Financial Institutions ("FI") in Japan, SMBC AC brings a comprehensive FI-style approach to managing risk across its business. Every investment decision made by the lessor is considered in the context of risk management, with a view to creating value consistently over the long term. The experience of its management and staff is fundamental to its risk management expertise.

SMBC AC's approach to risk management follows a "3 Pillar" framework, the fundamental components of which are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.asset risk management;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.counterparty risk management; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii.transaction risk management.

Utilizing this 3 Pillar approach, SMBC AC analyzes its portfolio and informs its strategic decision making to optimize its portfolio risk-reward return. Over the course of its 25-year history, this 3 Pillar approach has been validated by the high utilization of its fleet.

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**Flight Equipment Portfolio**

We continue to own one of the youngest fleets among aircraft lessors, including some of the most fuel-efficient commercial jet aircraft available. Our flight equipment subject to operating leases, based on net book value, decreased by 0.6%, to $28.9 billion as of March 31, 2026, compared to $29.1 billion as of December 31, 2025. During the three months ended March 31, 2026, we purchased 12 new aircraft from Airbus and Boeing and sold six aircraft. We ended the period with a total of 496 aircraft in our owned fleet. As of March 31, 2026, the weighted average fleet age and weighted average remaining lease term of our flight equipment subject to operating leases were 5.0 years and 7.2 years, respectively. We also managed 40 aircraft as of March 31, 2026.

Our portfolio metrics as of March 31, 2026 and December 31, 2025 are as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2026** | **December 31, 2025** | **December 31, 2025** |
| &nbsp;&nbsp;Net book value of flight equipment subject to operating leases | $28.9 | billion | $29.1 | billion |
| Weighted-average fleet age<sup>(1)</sup>  | 5.0 years | 5.0 years | 4.9 years | 4.9 years |
| Weighted-average remaining lease term<sup>(1)</sup> | 7.2 years | 7.2 years | 7.2 years | 7.2 years |
| Owned fleet<sup>(2)</sup>  | 496 | 496 | 490 | 490 |
| Managed fleet<sup>(3)</sup> | 40 | 40 | 45 | 45 |
| Aircraft on order | 206 | 206 | 218 | 218 |
| Total | 742 | 742 | 753 | 753 |
| Current fleet contracted rentals | $19.2 | billion | $19.6 | billion |
| Committed fleet rentals<sup>(4)</sup> | $8.6 | billion | $9.3 | billion |
| Total committed rentals | $27.8 | billion | $28.9 | billion |
| (1) Weighted-average fleet age and remaining lease term calculated based on net book value of our flight equipment subject to operating leases. | (1) Weighted-average fleet age and remaining lease term calculated based on net book value of our flight equipment subject to operating leases. | (1) Weighted-average fleet age and remaining lease term calculated based on net book value of our flight equipment subject to operating leases. | (1) Weighted-average fleet age and remaining lease term calculated based on net book value of our flight equipment subject to operating leases. | (1) Weighted-average fleet age and remaining lease term calculated based on net book value of our flight equipment subject to operating leases. |
| (2) As of March 31, 2026 and December 31, 2025, our owned fleet count included 25 and 12 aircraft classified as flight equipment held for sale, respectively, and 17 and 16 aircraft classified as net investments in sales-type leases, respectively. | (2) As of March 31, 2026 and December 31, 2025, our owned fleet count included 25 and 12 aircraft classified as flight equipment held for sale, respectively, and 17 and 16 aircraft classified as net investments in sales-type leases, respectively. | (2) As of March 31, 2026 and December 31, 2025, our owned fleet count included 25 and 12 aircraft classified as flight equipment held for sale, respectively, and 17 and 16 aircraft classified as net investments in sales-type leases, respectively. | (2) As of March 31, 2026 and December 31, 2025, our owned fleet count included 25 and 12 aircraft classified as flight equipment held for sale, respectively, and 17 and 16 aircraft classified as net investments in sales-type leases, respectively. | (2) As of March 31, 2026 and December 31, 2025, our owned fleet count included 25 and 12 aircraft classified as flight equipment held for sale, respectively, and 17 and 16 aircraft classified as net investments in sales-type leases, respectively. |
| (3) On April 8, 2026, in connection with the Merger, we will continue to manage our managed fleet; however, certain services for the aircraft and leases will be subserviced by SMBC AC. | (3) On April 8, 2026, in connection with the Merger, we will continue to manage our managed fleet; however, certain services for the aircraft and leases will be subserviced by SMBC AC. | (3) On April 8, 2026, in connection with the Merger, we will continue to manage our managed fleet; however, certain services for the aircraft and leases will be subserviced by SMBC AC. | (3) On April 8, 2026, in connection with the Merger, we will continue to manage our managed fleet; however, certain services for the aircraft and leases will be subserviced by SMBC AC. | (3) On April 8, 2026, in connection with the Merger, we will continue to manage our managed fleet; however, certain services for the aircraft and leases will be subserviced by SMBC AC. |
| (4) On April 8, 2026, in connection with the closing of the Merger, SMBC AC acquired our rights to the outstanding orderbook for undelivered aircraft. For further discussion on the Merger see "The Merger and Sumisho Air Lease" above. | (4) On April 8, 2026, in connection with the closing of the Merger, SMBC AC acquired our rights to the outstanding orderbook for undelivered aircraft. For further discussion on the Merger see "The Merger and Sumisho Air Lease" above. | (4) On April 8, 2026, in connection with the closing of the Merger, SMBC AC acquired our rights to the outstanding orderbook for undelivered aircraft. For further discussion on the Merger see "The Merger and Sumisho Air Lease" above. | (4) On April 8, 2026, in connection with the closing of the Merger, SMBC AC acquired our rights to the outstanding orderbook for undelivered aircraft. For further discussion on the Merger see "The Merger and Sumisho Air Lease" above. | (4) On April 8, 2026, in connection with the closing of the Merger, SMBC AC acquired our rights to the outstanding orderbook for undelivered aircraft. For further discussion on the Merger see "The Merger and Sumisho Air Lease" above. |

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The following table sets forth the net book value and percentage of the net book value of our flight equipment subject to operating leases in the indicated regions based on each airline's principal place of business as of March 31, 2026 and December 31, 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2026** | **December 31, 2025** | **December 31, 2025** |
| **Region** | **Net Book<br>Value** | **% of Total** | **Net Book<br>Value** | **% of Total** |
| | **(in thousands, except percentages)** | **(in thousands, except percentages)** | **(in thousands, except percentages)** | **(in thousands, except percentages)** |
| &nbsp;&nbsp;&nbsp;Europe | $11311125 | 39.2% | $11356104 | 39.1% |
| &nbsp;&nbsp;&nbsp;Asia Pacific | 10662042 | 36.9% | 10602176 | 36.5% |
| &nbsp;&nbsp;&nbsp;Central America, South America, and Mexico | 3024422 | 10.5% | 3114662 | 10.7% |
| &nbsp;&nbsp;&nbsp;The Middle East and Africa | 2045328 | 7.1% | 2254646 | 7.8% |
| &nbsp;&nbsp;&nbsp;U.S. and Canada | 1831926 | 6.3% | 1726042 | 5.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $28874843 | 100.0% | $29053630 | 100.0% |

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The following table sets forth our top five lessees by net book value as of March 31, 2026 and December 31, 2025:

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| | | | |
|:---|:---|:---|:---|
| | **March 31, 2026** | | **December 31, 2025** |
| &nbsp;&nbsp;**Lessee** | **% of Total** | &nbsp;&nbsp;**Lessee** | **% of Total** |
| &nbsp;&nbsp;&nbsp;Korean Air | 6.7% | &nbsp;&nbsp;&nbsp;Virgin Atlantic | 6.1% |
| &nbsp;&nbsp;&nbsp;Virgin Atlantic | 6.1% | &nbsp;&nbsp;&nbsp;Korean Air | 6.0% |
| &nbsp;&nbsp;&nbsp;Air France-KLM Group | 6.1% | &nbsp;&nbsp;&nbsp;Air France-KLM Group | 5.9% |
| &nbsp;&nbsp;&nbsp;Aeromexico | 5.5% | &nbsp;&nbsp;&nbsp;Aeromexico | 5.5% |
| &nbsp;&nbsp;&nbsp;Malaysia Airlines | 4.8% | &nbsp;&nbsp;&nbsp;ITA | 5.2% |

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The following table sets forth the number of aircraft in our owned fleet by aircraft type as of March 31, 2026 and December 31, 2025:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2026** | **December 31, 2025** | **December 31, 2025** |
| **Aircraft type** | **Number of<br>Aircraft** | **% of Total** | **Number of<br>Aircraft** | **% of Total** |
| &nbsp;&nbsp;&nbsp;Airbus A220-100 | 9 | 1.8% | 8 | 1.6% |
| &nbsp;&nbsp;&nbsp;Airbus A220-300 | 34 | 6.9% | 33 | 6.7% |
| &nbsp;&nbsp;&nbsp;Airbus A320-200 | 16 | 3.2% | 17 | 3.5% |
| &nbsp;&nbsp;&nbsp;Airbus A320-200neo | 20 | 4.0% | 23 | 4.7% |
| &nbsp;&nbsp;&nbsp;Airbus A321-200 | 17 | 3.4% | 17 | 3.5% |
| &nbsp;&nbsp;&nbsp;Airbus A321-200neo | 112 | 22.6% | 109 | 22.2% |
| &nbsp;&nbsp;&nbsp;Airbus A330-200<sup>(1)</sup> | 13 | 2.6% | 13 | 2.7% |
| &nbsp;&nbsp;&nbsp;Airbus A330-300 | 5 | 1.0% | 5 | 1.0% |
| &nbsp;&nbsp;&nbsp;Airbus A330-900neo | 28 | 5.6% | 28 | 5.7% |
| &nbsp;&nbsp;&nbsp;Airbus A350-900 | 17 | 3.4% | 17 | 3.5% |
| &nbsp;&nbsp;&nbsp;Airbus A350-1000 | 8 | 1.6% | 8 | 1.6% |
| &nbsp;&nbsp;&nbsp;Boeing 737-800 | 37 | 7.5% | 38 | 7.8% |
| &nbsp;&nbsp;&nbsp;Boeing 737-8 MAX | 76 | 15.3% | 71 | 14.5% |
| &nbsp;&nbsp;&nbsp;Boeing 737-9 MAX | 35 | 7.1% | 35 | 7.1% |
| &nbsp;&nbsp;&nbsp;Boeing 777-200ER | 1 | 0.2% | 1 | 0.2% |
| &nbsp;&nbsp;&nbsp;Boeing 777-300ER | 23 | 4.6% | 23 | 4.7% |
| &nbsp;&nbsp;&nbsp;Boeing 787-9 | 26 | 5.2% | 26 | 5.3% |
| &nbsp;&nbsp;&nbsp;Boeing 787-10 | 18 | 3.7% | 17 | 3.5% |
| &nbsp;&nbsp;&nbsp;Embraer E190 | 1 | 0.3% | 1 | 0.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total<sup>(2)</sup> | 496 | 100.0% | 490 | 100.0% |
| (1) As of March 31, 2026 and December 31, 2025, aircraft count includes three Airbus A330-200 aircraft classified as freighters.  | (1) As of March 31, 2026 and December 31, 2025, aircraft count includes three Airbus A330-200 aircraft classified as freighters.  | (1) As of March 31, 2026 and December 31, 2025, aircraft count includes three Airbus A330-200 aircraft classified as freighters.  | (1) As of March 31, 2026 and December 31, 2025, aircraft count includes three Airbus A330-200 aircraft classified as freighters.  | (1) As of March 31, 2026 and December 31, 2025, aircraft count includes three Airbus A330-200 aircraft classified as freighters.  |
| (2) As of March 31, 2026 and December 31, 2025, our owned fleet count included 25 and 12 aircraft classified as flight equipment held for sale, respectively, and 17 and 16 aircraft classified as net investments in sales-type leases, respectively. | (2) As of March 31, 2026 and December 31, 2025, our owned fleet count included 25 and 12 aircraft classified as flight equipment held for sale, respectively, and 17 and 16 aircraft classified as net investments in sales-type leases, respectively. | (2) As of March 31, 2026 and December 31, 2025, our owned fleet count included 25 and 12 aircraft classified as flight equipment held for sale, respectively, and 17 and 16 aircraft classified as net investments in sales-type leases, respectively. | (2) As of March 31, 2026 and December 31, 2025, our owned fleet count included 25 and 12 aircraft classified as flight equipment held for sale, respectively, and 17 and 16 aircraft classified as net investments in sales-type leases, respectively. | (2) As of March 31, 2026 and December 31, 2025, our owned fleet count included 25 and 12 aircraft classified as flight equipment held for sale, respectively, and 17 and 16 aircraft classified as net investments in sales-type leases, respectively. |

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**<u>[**Table of Contents**](#i2e83ec058a6942c6b0c099bda180c4b5_7)</u>**

**Business Strategy**

***Aircraft Leasing Strategy***

We maintain one of the world's largest portfolios in the sector, with an owned fleet comprising of 496 aircraft. The net book value of our flight equipment subject to operating leases was $28.9 billion as of March 31, 2026. The quality of our flight equipment has been underpinned by our disciplined approach to asset selection throughout our sixteen-year history. We have consistently invested in liquid and new technology aircraft, which we believe display strong and long-term value retention characteristics. These include the Airbus A220 family, Airbus A320ceo/neo family, Airbus A330neo family, Airbus A350 family, Boeing 737 NG/MAX family and Boeing 787 family of aircraft.

Pursuant to the Servicing Agreement, SMBC AC is responsible for the provision of lease administration services, including aircraft marketing, aircraft trading, technical asset management and risk management, for the majority of our fleet. We believe that we will benefit from the aviation platform serviced by SMBC AC, which we believe positions us favorably to capitalize on airline and investor demand for aircraft. The Company and SMBC AC operate as separate entities with independent commercial policies and strategies.

Return profiles vary across aircraft procurement channels at different points in the cycle. Accordingly, a flexible procurement strategy that can be recalibrated to target aircraft acquisitions in different channels at different points in time is key to optimizing long-term, risk-adjusted returns. We believe our operating strategy has been designed to provide significant flexibility in our approach to capital allocation. It offers the ability to respond to the often very rapid changes in market conditions to capitalize on attractive acquisition opportunities, originated by SMBC AC as servicer, across the entire spectrum of typical aircraft procurement channels. In doing so, we believe we will benefit from those aircraft investment opportunities which offer the greatest value, thereby strengthening our overall returns. This is a strategy that only a limited pool of lessors, which enjoy the considerable strategic and financial backing of strong shareholders (such as the Sumisho Investors) have the ability to pursue.

In addition, we benefit from access to the enhanced industry strength of the Sumisho Investors. As the aircraft leasing sector continues to mature, it is becoming increasingly commoditized. At the same time, airlines are becoming increasingly sophisticated and the range and complexity of the financing products they require to finance their expanding fleets is growing. Through an end-to-end marketing process, led by SMBC AC as our exclusive servicer, we believe that we will benefit from the enhanced scale, reach and negotiating power afforded by our position as a key pillar within one of the world's largest aviation financing platforms.

***Aircraft Acquisition Strategy***

Our aircraft acquisition strategy has changed after the Merger as a result of the Orderbook Acquisition by SMBC AC. We will now rely on acquisitions of aircraft through a diversified range of procurement channels. Pursuant to the Servicing Agreement, SMBC AC, as servicer, is responsible for originating aircraft investment opportunities on behalf of our platform. Our flexible acquisition strategy includes opportunities originated across a spectrum of aircraft acquisition channels:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Sale and leaseback transactions, where assets are acquired from an airline's orderbook and placed back on long-term leases with the operator;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Portfolio acquisition, where portfolios are acquired from other lessors seeking to manage portfolio limits and concentrations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Direct order, where potential acquisition opportunities of aircraft arise from SMBC AC's orderbook; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Strategic M&A, where we may participate in the execution of highly strategic M&A opportunities.

We will evaluate such opportunities and selectively participate in transactions that we determine to be consistent with our investment criteria and strategic objectives. Our focus is on investing in young and liquid aircraft types, which are most in demand with our airline and investor customers. We believe that the channels through which a lessor acquires aircraft, as well as the timing of such acquisitions, are key to optimizing long-term, risk-adjusted returns. We believe we will benefit from a flexible approach to capital allocation, which is designed to enable us to invest across different aircraft procurement channels at different points in the cycle.

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While we remain open to opportunistic acquisitions on attractive terms, our primary focus following the closing of the Merger will be on portfolio optimization and deleveraging. Our aim will be to bring net leverage in-line with our longer-term target of 3.0x, which we expect to achieve by capitalizing on the strength of the secondary trading market for aircraft sales.

***Aircraft Sales and Trading Strategy***

An active trading strategy is essential for the effective management of any large-scale portfolio of assets, including aircraft. Trading supports an aircraft lessor's ability to manage portfolio concentrations, minimize re-leasing and residual value risk and maintain portfolio metrics. This ensures the fleet of aircraft we own remains comprised primarily of young and liquid aircraft types.

Different pockets of liquidity fluctuate at different points in time. To trade aircraft effectively throughout the cycle, a lessor requires access to a large team of experienced aircraft trading professionals who are dedicated to cultivating relationships and maintaining a presence across a broad spectrum of markets.

We believe we will benefit from the ability to leverage SMBC AC's established and successful aircraft trading function by way of the Servicing Agreement, pursuant to which SMBC AC is responsible for the origination of all aircraft trading opportunities for us.

***Comprehensive Risk Management Strategy***

We, together with our Servicer, expect to mitigate the risks of owning and leasing aircraft through careful management and diversification of our leases and lessees by geography, lease term, and aircraft age and type. We believe that diversification of our fleet reduces the risks associated with individual lessee defaults and adverse geopolitical and regional economic events.

During the lease term, pursuant to the Servicing Agreement, the Servicer will closely follow the operating and financial performance of all non-U.S. lessees, and our Servicer will maintain a high level of communication with these lessees (while we will be responsible for U.S. lessees) and frequently evaluate the state of the market in which the lessee operates, including the impact of changes in passenger air travel and preferences, the impact of delivery delays, changes in general economic conditions, emerging competition, new government regulations, regional catastrophes, and other unforeseen shocks that are relevant to the airline's market.

The reporting and management provisions under the Servicing Agreement enable the Servicer to identify lessees that may be experiencing operating and financial difficulties. This identification assists us in assessing the lessee's ability to fulfill its obligations under the lease. This monitoring can also identify candidates, where appropriate, to restructure the lease prior to the lessee's insolvency or the initiation of bankruptcy or similar proceedings. Once an insolvency or bankruptcy occurs, we typically have less control over, and would most likely incur greater costs in connection with, the restructuring of the lease or the repossession of the aircraft.

***Financing Strategy***

Our financing strategy is a critical component of our overall strategy going forward, which will underpin the long-term growth and success of our business, leveraging off our strong external credit ratings. The objective of our financing strategy is to ensure our business has the necessary access to meet its capital and liquidity needs, at a competitive cost.

Our debt capitalization following the consummation of the Merger consists of senior unsecured securities, along with other credit facilities that survived the Merger and those credit facilities that became our obligation at the closing of the Merger.

As of April 30, 2026, 99.2% of our consolidated debt was unsecured. We expect to and aim to maintain a predominantly unsecured debt profile in both the capital markets and the banking markets. We believe that the unencumbered nature of our asset base will ensure that we maintain maximum operational flexibility across our portfolio, which we believe is essential to the smooth and efficient operation of any large-scale aircraft leasing company.

***Key Lease Terms***

Under our operating leases, lessees bear the risks and rewards of operating the aircraft, while we retain title and bear the risks and rewards of owning the aircraft.

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Our leases typically have a stated, fixed lease term, with terms that generally align with scheduled major maintenance events. Typical lease terms are between 5 and 12 years, with leases for new aircraft often in the 9-to-12-year range. Shorter lease terms are more common for used aircraft in some circumstances. This is reflected in the weighted average remaining lease term across our portfolio of 7.2 years as of March 31, 2026. Our leases also typically require airlines to be responsible for the implementation of airworthiness directives issued by applicable regulatory authorities. In some cases, we agree to make a contribution towards the costs of the implementation of the airworthiness directives, with such payment usually being made at the end of the lease term.

Our lessees typically pay rent monthly in advance and lease rentals are generally contracted on a fixed rate. The rental is typically fixed on or before execution of the lease contract or just prior to the delivery date.

We typically hold a security deposit or letter of credit to secure the performance of the lessee's obligations under the lease, which may be applied against those obligations in the event of a lessee default. The quantum of any security deposit or letter of credit varies according to the credit quality of the lessee as well as the associated jurisdictional risk but is generally equivalent to between zero- and seven-months' rent. In some cases, we may also obtain credit support from a third-party for a lessee's obligations under a lease.

Our lease agreements require the aircraft to be maintained in accordance with standards benchmarked with the relevant airworthiness authority and/or aircraft manufacturer. At the end of the lease term, the lessee must return the aircraft in a pre-agreed minimum condition that will generally allow the aircraft to enter service with its next operator. We are typically entitled to receive maintenance payments from our lessees, which represent the maintenance value of cycles, hours or calendar time consumed on the airframe, engines and certain other high-value components of the aircraft. Some lessees make these maintenance payments in the form of monthly "maintenance reserve" payments during the term of the lease. Other lessees make a lump sum "return compensation" payment at lease expiry. During the lease, we account for these maintenance payments as a liability on our statement of financial position to the extent we are required to reimburse the lessee following a qualifying maintenance event.

All aircraft are leased on a "dry" basis, with the lessees responsible for all operating expenses such as fuel, crew, flight charges and insurance. In addition, all aircraft maintenance and repairs are the responsibility of the lessees. However, if the lessee pays maintenance reserves, we will typically agree to contribute to the cost of major maintenance events to the extent we have collected maintenance reserves from that lessee or, in some cases, from a previous lessee.

The lessee is generally required to "gross-up" lease payments where such payments are subject to withholding or other taxes, except for taxes on our net income and withholdings that arise out of transfers of the aircraft by us. The lessee is also required to indemnify us for certain other tax liabilities relating to the lease and the aircraft, including value added taxes and stamp duties. Our leases generally provide that the lessee's payment obligations are absolute and unconditional under all circumstances.

**Aircraft Industry**

We believe that the overall airline operating environment remains favorable for us and the broader commercial aircraft leasing

industry. Factors such as population growth, the size of the global middle class, air travel demand, and improved global economic health and development positively affect the long-term performance of the commercial aircraft leasing industry. Passenger traffic volume has historically expanded at a faster rate than global gross domestic product ("GDP") growth, in part due to the expansion of the global middle class and the ease and affordability of air travel, which we expect to continue.

As global air traffic continues to expand and aircraft production volumes remain constrained, we are experiencing strong demand for our aircraft through new lease requests and lease extension requests.

While global macroeconomic and geopolitical conditions could have an incremental negative impact on traffic expectations, we continue to expect that the need for airlines to replace aging aircraft will support demand for newer, more fuel-efficient aircraft. Factors and trends including increased airline financing needs, OEM supply chain and delivery challenges and backlogs, and environmental sustainability objectives impact the commercial aircraft leasing industry in the short-term and may increase the demand for our aircraft. As a result, we believe many airlines will look to lessors to fulfill these needs.

The demand for our aircraft, combined with elevated interest rates and inflation, helped to increase lease rates on new lease agreements and lease extensions during the quarter ended March 31, 2026. We expect that lease rates will remain strong as the supply and demand environment for commercial aircraft remains tight and our funding advantage relative to our airline customers widens.

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Lease rates are influenced by several factors above and beyond interest rates, including aircraft demand, supply technicals, supply chain disruptions, environmental initiatives and other factors that may result in a change in lease rates regardless of the interest rate environment and therefore, are difficult to project or forecast. We believe the increase in lease rates and the sustained tightness in the credit markets may result in a shortfall in available capital to finance aircraft purchases, which could increase the demand for leasing.

Airline reorganizations, liquidations, or other forms of bankruptcies occurring in the industry have in the past and may in the future include some of our aircraft customers. As of the date of this filing, we had eight aircraft between two airlines which were subject to various forms of insolvency proceedings, including seven aircraft representing approximately 1% of our flight equipment under operating lease by net book value with Spirit airlines. Such events have resulted and may in the future result in the early return of aircraft or changes in our lease terms. Our airline customers are facing higher operating costs as a result of persistently elevated interest rates, inflation, tariffs, foreign currency risk, and increases in fuel costs, as well as delays and cancellations caused by the global air traffic control system and airports. Strong air traffic demand has provided a counterbalance to these increased costs.

The recent rapid rise in fuel costs as a product of geopolitical conflicts in the Middle East is currently weighing on global airline financial performance. Airline flight schedules have been disrupted as a result, and a number of airlines have announced reduced capacity and increases to airfares and fees. Depending on the duration of these conflicts, our airline customers could experience further operational challenges, resulting in financial losses, reduced aircraft demand, and increased airline bankruptcies.

We are also monitoring the impact of tariffs on our business, which have not had a negative impact on our profitability to date. While we currently do not expect tariffs to have a material impact on our business, particularly following the Orderbook Acquisition, tariffs could impact our business in a number of ways and the level of impact is unknown due to the uncertainty surrounding tariffs currently.

We believe the aircraft leasing industry has remained resilient over time across a variety of global economic conditions and remain optimistic about the long-term fundamentals of our business. We believe leasing will continue to be an attractive form of aircraft financing for airlines because less cash and financing is required for the airlines and it provides fleet flexibility while eliminating residual value risk for lessees.

**Liquidity and Capital Resources**

***Overview***

We ended the first quarter of 2026 with available liquidity of $5.4 billion, which was comprised of unrestricted cash of $554.1 million and approximately $4.9 billion in undrawn balances under our unsecured revolving credit facility, net of $1.0 billion in commercial paper borrowings. As of April 30, 2026, our available liquidity was $4.1 billion, which was comprised of unrestricted cash of $647.1 million and approximately $3.5 billion in undrawn balances under our unsecured revolving credit facility.

We finance our business operations using our available cash balances and internally generated funds, which includes cash flows from our leases, as well as aircraft sales and debt financing activities. We aim to maintain investment-grade credit metrics and focus our debt financing strategy on funding our business primarily on an unsecured basis with mostly fixed-rate debt issued in the public bond market. Unsecured financing provides us with operational flexibility when selling or transitioning aircraft from one airline to another. We also have the ability to seek debt financing secured by our assets, as well as financings supported through government-guaranteed export credit agencies for future aircraft deliveries. We have also issued preferred stock in the past and have outstanding preferred stock with an aggregate stated amount of $900.0 million as of April 30, 2026. Our access to a variety of financing alternatives and the global capital markets, including capital raises through unsecured public notes denominated in U.S. dollars or various foreign currencies, private capital, bank debt, secured debt and preferred stock issuances serves as a key advantage in managing our liquidity.

We ended the first quarter of 2026 with total debt outstanding of $19.9 billion, of which 67.6% was at a fixed rate and 97.9% was unsecured, and in the aggregate, our composite cost of funds was 4.29%. As of April 30, 2026, we had total debt outstanding of $20.8 billion, of which 78.8% was at a fixed rate and 99.2% was unsecured, and in the aggregate, our composite cost of funds was 4.33%.

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While we expect to opportunistically acquire aircraft in the future, as described above under "—Aircraft Acquisition Strategy," our focus following the Merger will be on portfolio optimization and deleveraging. Our aim is to bring net leverage in-line with our longer-term debt-to-equity target of 3.0x. We believe we will achieve this by capitalizing on the strength of the secondary trading market for aircraft sales. We have $5.6 billion of aircraft in our sales pipeline<sup>4</sup>, which includes $940.3 million of aircraft classified as held for sale as of March 31, 2026 and $4.6 billion of aircraft subject to letters of intent<sup>5</sup>. We currently expect the sales of the aircraft in our sales pipeline to be completed in the next 12 months.

***Material Cash Sources and Requirements***

We believe that we have sufficient liquidity from available cash balances, cash generated from ongoing operations and available commitments under our unsecured revolving credit facility to satisfy the operating requirements of our business through at least the next 12 months. Our material cash sources include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***•* Unrestricted cash:** We ended the first quarter of 2026 with $554.1 million in unrestricted cash and, as of April 30, 2026 had $647.1 million in unrestricted cash.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**• Lease cash flows:** We ended the first quarter of 2026 with $19.2 billion in committed contracted minimum rental payments on the aircraft in our existing fleet. These rental payments are a primary driver of our short and long-term operating cash flow. As of March 31, 2026, our minimum future rentals on non-cancellable operating leases for the next 12 months was $2.7 billion. For further detail on our minimum future rentals for the remainder of 2026 and thereafter, see "Notes to Consolidated Financial Statements" under "Item 1. Financial Statements" in this Quarterly Report on Form 10-Q.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Aircraft sales:** Proceeds from the sale of aircraft help supplement our liquidity position. As stated above, our goal following the Merger will be to reduce outstanding debt. We continue to see robust demand in the secondary market to support our aircraft sales program. We have $5.6 billion of aircraft in our sales pipeline, which includes $940.3 million of aircraft classified as flight equipment held for sale as of March 31, 2026 and $4.6 billion of aircraft subject to letters of intent. We currently expect the sales of the aircraft in our sales pipeline to be completed in the next 12 months.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Unsecured revolving credit facility**: In connection with the Merger, we assumed the revolving credit agreement entered into among Merger Sub, the several banks and other financial institutions or entities from time to time as parties thereto and Sumitomo Mitsui Banking Corporation, as administrative agent, dated November 14, 2025, as amended by a first amendment, dated March 25, 2026 (as amended, the "New Revolving Credit Agreement). The New Revolving Credit Agreement provides us access to up to $3.5 billion in revolving loans (the "New Revolving Credit Facility") for working capital purposes and other general corporate purposes. There were no amounts outstanding under the New Revolving Credit Facility as of April 30, 2026. Prior to the closing of the Merger, we had an unsecured revolving credit facility with total commitments, as of March 31, 2026, of $8.4 billion (the "Legacy Revolving Credit Facility"). We terminated and repaid in full all outstanding loans and other amounts due under our Legacy Revolving Credit Facility at the closing of the Merger.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Senior unsecured securities:** We have historically been frequent issuer in the investment grade capital markets, opportunistically issuing unsecured notes, primarily through our Medium-Term Note Program at attractive cost of funds and other senior unsecured securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Unsecured bank facilities:** We have active dialogue with a variety of global financial institutions and have historically entered into new unsecured credit facilities from time to time as a means to supplement our liquidity and sources of funding. These loans are typically pre-payable without penalty at any time offering us significant flexibility in different rate environments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Other sources:** In addition to the above, we generate liquidity through cash received from security deposits and maintenance reserves from our lease agreements, other sources of debt financings (including secured bank term loans, export credit and private placements, and other unsecured revolving credit facilities), as well as issuances of preferred stock.

In general, increases and reductions in the Federal Funds Rate should affect the interest rate on our revolving credit facility and our new and existing borrowings that bear interest at a floating rate.

<sup>4</sup> Aircraft in our sales pipeline is as of March 31, 2026, and includes letters of intent and sale agreements signed through May 7, 2026.

<sup>5</sup> While our management's historical experience is that non-binding letters of intent for aircraft sales generally lead to binding contracts, we cannot be certain that we will ultimately execute binding sales agreements for all or any of the aircraft subject to letters of intent or predict the timing of closing for any such aircraft sales.

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Historically, there has also been a lag between a rise in interest rates and subsequent increases in lease rates. We have experienced increasing lease rates on new lease agreements and lease extensions since 2023, which are serving to partially offset increased borrowing costs. We believe the increased lease rates we have experienced will continue as airlines adjust to a persistently elevated interest rate environment, which will continue to support our funding advantage relative to our airline customers. In addition, lease rates are influenced by several factors above and beyond interest rates, including supply technicals driven by aircraft demand, supply chain disruptions, environmental initiatives and other factors that may result in a change in lease rates regardless of the interest rate environment.

As of March 31, 2026, we were in compliance in all material respects with the covenants contained in our debt agreements. While a ratings downgrade would not result in a default under any of our debt agreements, it could adversely affect our ability to issue debt and obtain new financings, or renew existing financings, and it would increase the interest rate applicable to certain of our financings. Our liquidity plans are subject to a number of risks and uncertainties, including those described in "Part II — Item 1A. Risk Factors" in this Quarterly Report on Form 10-Q for the quarter ended March 31, 2026.

Our material cash requirements are primarily comprised of debt service payments and general operating expenses. The amount of our cash requirements depends on a variety of factors, including the ability of our lessees to meet their contractual obligations with us, the timing of aircraft sales from our fleet, the timing and amount of our debt service obligations, potential aircraft acquisitions, and the general economic environment in which we operate.

Our material cash requirements as of April 30, 2026, are as follows (in thousands):

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Remainder of 2026** | **2027** | **2028** | **2029** | **2030** | **Thereafter** | **Total** |
| &nbsp;&nbsp;&nbsp;Debt obligations | $4148615 | $5021836 | $3879812 | $2217990 | $2122806 | $3438861 | $20829920 |
| &nbsp;&nbsp;&nbsp;Interest payments on debt outstanding<sup>(1)</sup>  | 514199 | 712798 | 451824 | 294198 | 225784 | 259710 | 2458513 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $4662814 | $5734634 | $4331636 | $2512188 | $2348590 | $3698571 | $23288433 |
| (1) Future interest payments on floating rate debt are estimated using floating rates in effect at April 30, 2026, which is inclusive of any cross-currency hedging arrangements, and assumes no additional interest amounts, which may become due upon the occurrence of certain events described in the applicable indenture governing our senior unsecured securities, become due. | (1) Future interest payments on floating rate debt are estimated using floating rates in effect at April 30, 2026, which is inclusive of any cross-currency hedging arrangements, and assumes no additional interest amounts, which may become due upon the occurrence of certain events described in the applicable indenture governing our senior unsecured securities, become due. | (1) Future interest payments on floating rate debt are estimated using floating rates in effect at April 30, 2026, which is inclusive of any cross-currency hedging arrangements, and assumes no additional interest amounts, which may become due upon the occurrence of certain events described in the applicable indenture governing our senior unsecured securities, become due. | (1) Future interest payments on floating rate debt are estimated using floating rates in effect at April 30, 2026, which is inclusive of any cross-currency hedging arrangements, and assumes no additional interest amounts, which may become due upon the occurrence of certain events described in the applicable indenture governing our senior unsecured securities, become due. | (1) Future interest payments on floating rate debt are estimated using floating rates in effect at April 30, 2026, which is inclusive of any cross-currency hedging arrangements, and assumes no additional interest amounts, which may become due upon the occurrence of certain events described in the applicable indenture governing our senior unsecured securities, become due. | (1) Future interest payments on floating rate debt are estimated using floating rates in effect at April 30, 2026, which is inclusive of any cross-currency hedging arrangements, and assumes no additional interest amounts, which may become due upon the occurrence of certain events described in the applicable indenture governing our senior unsecured securities, become due. | (1) Future interest payments on floating rate debt are estimated using floating rates in effect at April 30, 2026, which is inclusive of any cross-currency hedging arrangements, and assumes no additional interest amounts, which may become due upon the occurrence of certain events described in the applicable indenture governing our senior unsecured securities, become due. | (1) Future interest payments on floating rate debt are estimated using floating rates in effect at April 30, 2026, which is inclusive of any cross-currency hedging arrangements, and assumes no additional interest amounts, which may become due upon the occurrence of certain events described in the applicable indenture governing our senior unsecured securities, become due. |

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The above table does not include any tax payments we may pay nor any dividends we may pay on our preferred stock or common stock.

***Cash Flows***

Our cash flows provided by operating activities increased by 29.6% or $115.0 million, to $503.3 million for the three months ended March 31, 2026 as compared to $388.3 million for the three months ended March 31, 2025. Our cash flows provided by operating activities during the three months ended March 31, 2026 increased primarily due to an increase in customer collections related to the growth of our fleet compared to the three months ended March 31, 2025. Our cash flows used in investing activities were $572.2 million for the three months ended March 31, 2026 compared to $102.2 million for the three months ended March 31, 2025. Cash used in investing activities increased for the three months ended March 31, 2026, primarily resulting from significant investing cash inflows we received in the prior year period, including $328.5 million of cash insurance settlement proceeds and higher proceeds from aircraft sales. Our investing activities have been historically driven by the timing of our aircraft purchases and our sales and trading activity. Our cash flows provided by financing activities were $153.5 million for the three months ended March 31, 2026 as compared to $301.6 million used in financing activities for the three months ended March 31, 2025. Our cash flows provided by financing activities increased for the three months ended March 31, 2026 compared to the three months ended March 31, 2025, primarily due to higher net borrowings during the first quarter of 2026. For the three months ended March 31, 2025, we received cash insurance settlement proceeds, included in our investing activities, which reduced our need for external financing for that period.

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***Debt***

Our debt financing at April 30, 2026, March 31, 2026 and December 31, 2025 is summarized below:

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| | | | |
|:---|:---|:---|:---|
| | **April 30, 2026** | **March 31, 2026** | **December 31, 2025** |
| | **(in thousands, except percentages)** | **(in thousands, except percentages)** | **(in thousands, except percentages)** |
| &nbsp;&nbsp;&nbsp;**Unsecured** | | | |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Senior unsecured securities | $16416620 | $12389769 | $13860558 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Term financings | 4244100 | 3606950 | 3846800 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial paper |  | 1046300 | 1361400 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revolving Credit Facility |  | 2470000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other revolving credit facilities |  |  | 300000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total unsecured debt financing | 20660720 | 19513019 | 19368758 |
| &nbsp;&nbsp;&nbsp;**Secured** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Term financings |  | 254677 | 318348 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Export credit financing | 169200 | 171353 | 175238 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total secured debt financing | 169200 | 426030 | 493586 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total debt financing | 20829920 | 19939049 | 19862344 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less: Debt discounts and issuance costs | (48829) | (119854) | (132215) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Debt financing, net of discounts and issuance costs** | $20781091 | $19819195 | $19730129 |
| **Selected interest rates and ratios:** |  |  |  |
| &nbsp;&nbsp;Composite interest rate<sup>(1)</sup> | 4.33% | 4.29% | 4.15% |
| &nbsp;&nbsp;Composite interest rate on fixed-rate debt<sup>(1)</sup> | 4.18% | 4.02% | 3.91% |
| &nbsp;&nbsp;&nbsp;Percentage of total debt at a fixed-rate | 78.81% | 67.57% | 76.85% |
| (1) This rate does not include the effect of upfront fees, facility fees, undrawn fees or amortization of debt discounts and issuance costs. | (1) This rate does not include the effect of upfront fees, facility fees, undrawn fees or amortization of debt discounts and issuance costs. | (1) This rate does not include the effect of upfront fees, facility fees, undrawn fees or amortization of debt discounts and issuance costs. | (1) This rate does not include the effect of upfront fees, facility fees, undrawn fees or amortization of debt discounts and issuance costs. |

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*Senior unsecured securities (including Medium-Term Note Program)*

As of April 30, 2026 and March 31, 2026, we had $16.4 billion and $12.4 billion in senior unsecured securities outstanding, respectively, which includes our medium term notes issued under our indenture, dated as of November 20, 2018. We did not repay any of our medium term notes in connection with the closing of the Merger. Our outstanding senior unsecured securities as of April 30, 2026 include an aggregate of $4.0 billion principal amount of notes issued by Merger Sub and assumed by us upon closing of the Merger. As of April 30, 2026, our outstanding senior unsecured notes had remaining terms ranging from approximately one month to 10 years and bearing interest at fixed rates ranging from 1.875% to 5.95%.

In connection with the Merger, on March 24, 2026, Merger Sub issued $800,000,000 aggregate principal amount of 4.400% Senior Notes due 2028, $1,200,000,000 aggregate principal amount of 4.500% Senior Notes due 2029, $1,500,000,000 aggregate principal amount of 4.850% Senior Notes due 2031 and $500,000,000 aggregate principal amount of 5.500% Senior Notes due 2036 (collectively, the "Notes") pursuant to an indenture, dated as of March 24, 2026, among Merger Sub and Computershare Trust Company, N.A., as trustee. Upon consummation of the Merger and in accordance with the indenture governing the Notes and related agreements, the Notes became our obligations. The indenture that governs the Notes requires us to comply with certain covenants, including restrictions on our ability to (i) incur liens on assets and (ii) merge, consolidate or transfer all or substantially all of our assets. The indenture governing the Notes contains customary events of default. In the case of an event of default, the lenders may require repayment of all outstanding borrowings. In connection with the issuance of the Notes, Merger Sub entered into a registration rights agreement (the "Registration Rights Agreement"), which became our obligation upon consummation of the Merger whereby we agreed to use our commercially reasonable efforts to file and cause to become effective a registration statement for a registered offer to exchange the Notes for new notes, with terms substantially identical in all material respects to the Notes. Under certain circumstances, we may be required to file a shelf registration statement to allow for resales of the Notes. We may be obligated to pay additional interest on the Notes if we fail to comply with obligations under the Registration Rights Agreement.

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All of our fixed rate senior unsecured notes may be redeemed at our option in part or in full at any time and from time to time prior to maturity at the redemption prices (including any "make-whole" premium) specified in such senior unsecured notes. Our senior unsecured notes also require us to offer to purchase all of the notes at a purchase price equal to 101% of the principal amount of the notes, plus accrued and unpaid interest if a "change of control repurchase event" (as defined in the applicable indenture or supplemental indenture) occurs.

On April 8, 2026, in connection with the completion of the Merger, we notified the New York Stock Exchange ("NYSE") of the completion of the Merger and requested that trading in the 3.700% Medium-Term Notes, Series A, due April 15, 2030 (the "Euro Medium-Term Notes") be suspended and the Euro Medium-Term Notes be withdrawn from listing on the NYSE.

We did not redeem any of our medium term notes in connection with the closing of the Merger.

*Unsecured revolving credit facility*

Prior to the Merger, we had an unsecured revolving credit facility with an outstanding balance of $2.5 billion as of March 31, 2026 (the "Legacy Revolving Credit Facility"). We terminated and repaid in full all outstanding loans and other amounts due under our Legacy Revolving Credit Facility in an aggregate amount of $3.0 billion at the closing of the Merger.

In connection with the Merger, we assumed the New Revolving Credit Agreement entered into among Merger Sub, the several banks and other financial institutions or entities from time to time as parties thereto and Sumitomo Mitsui Banking Corporation, as administrative agent, dated November 14, 2025, as amended by the First Amendment, dated March 25, 2026 (as amended, the "New Revolving Credit Agreement"). As a result of the Merger, the benefits and obligations of Merger Sub under the New Revolving Credit Agreement became our obligations as the surviving corporation in the Merger. The New Revolving Credit Agreement provides us access to up to $3.5 billion in revolving loans for working capital purposes and other general corporate purposes. The New Revolving Credit Facility bears interest at Adjusted Term SOFR plus a margin of 1.25% and matures on April 8, 2029. We are required to pay a facility fee of 0.20% per year in respect of total commitments under the New Revolving Credit Facility. The interest rate and facility fees are subject to changes in our credit ratings. The New Revolving Credit Agreement contains certain covenants and undertakings, subject to customary exceptions and qualifications, including (but not limited to) (i) maintenance of consolidated stockholder's equity at or above $2.5 billion, (ii) maintenance of consolidated unencumbered assets at or above 125% of consolidated unsecured indebtedness and (iii) maintenance of interest coverage ratio at or above 1.50x, in each case as such terms are more particularly defined in the definitive documentation. The New Revolving Credit Agreement contains customary events of default. In the case of an event of default, the lenders may terminate the commitments under the New Revolving Credit Facility and require immediate repayment of all outstanding borrowings. We did not have any outstanding balances under the New Revolving Credit Facility as of April 30, 2026.

*Other unsecured revolving credit facilities*

As of April 30, 2026 and March 31, 2026, we did not have any outstanding balances under our other unsecured revolving credit facilities, respectively. These facilities were not guaranteed and are available at the sole discretion of the lender, who has the right to modify or terminate the facilities at any time. All of these facilities were terminated in connection with the closing of the Merger.

*Unsecured term financings*

As of April 30, 2026 and March 31, 2026, the outstanding balance on our unsecured term financings was $4.2 billion and $3.6 billion.

In connection with the Merger, Merger Sub entered into a term loan credit agreement by and among Merger Sub, the several banks and other financial institutions or entities from time to time as parties thereto and Sumitomo Mitsui Banking Corporation, as administrative agent, as amended by the First Amendment to the Term Loan Credit Agreement, dated as of March 25, 2026 (as amended, the "Acquisition Term Loan Agreement"), pursuant to which the lenders provided a $1.0 billion term loan (the "Acquisition Term Loan"), which was used to fund a portion consideration in the Merger. The Acquisition Term Loan bears interest at Adjusted Term SOFR plus a margin of 1.25% subject to adjustment based on our credit rating and matures on October 8, 2027. As a result of the Merger, the obligations of Merger Sub under the Acquisition Term Loan became our obligations as the surviving corporation in the Merger. There was $1.0 billion outstanding under the Acquisition Term Loan as of April 30, 2026. We repaid $350.4 million in unsecured debt financings in connection with the Merger.

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Such unsecured term financings, including the Acquisition Term Loan Agreement, generally contain covenants and undertakings, subject to customary exceptions and qualifications, including (but not limited to): (i) maintenance of consolidated stockholder's equity at or above $2.5 billion, (ii) maintenance of consolidated unencumbered assets at or above 125% of consolidated unsecured indebtedness and (iii) maintenance of interest coverage ratio at or above 1.50x, in each case as such terms are more particularly defined in the definitive documentation. The agreement governing our unsecured term financings also include customary events of default. In the case of an event of default, the lenders may require repayment of all outstanding borrowings.

*Secured debt financings*

As of April 30, 2026, we had an outstanding balance of $169.2 million in secured debt financings. As of March 31, 2026, we had an outstanding balance of $426.0 million in secured debt financings, and had pledged nine aircraft as collateral, with a net book value of $620.2 million. All of our secured obligations as of April 30, 2026 and March 31, 2026 were recourse in nature. We repaid $254.2 million in secured debt financings in connection with the Merger.

*Commercial paper program*

On January 21, 2025, we established a commercial paper program under which we could issue unsecured commercial paper up to a total of $2.0 billion outstanding at any time, with maturities of up to 397 days from the date of issue. The net proceeds from the issuance of commercial paper have been used for general corporate purposes, which included, among other things, the purchase of commercial aircraft and the repayment of existing indebtedness. As of April 30, 2026 we did not have an outstanding balance under the commercial paper program. As of March 31, 2026, we had an outstanding balance of $1.0 billion, with a weighted average interest rate of 4.41% and a weighted average maturity of less than one month.

***Preferred equity***

The following table summarizes our preferred stock issued and outstanding as of March 31, 2026 (in thousands, except for share amounts and percentages):

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Shares Issued and Outstanding as of March 31, 2026** | **Liquidation Preference**<br>**as of March 31, 2026**<sup>(1)</sup> | **Liquidation Preference**<br>**as of March 31, 2026**<sup>(1)</sup> | **Issue Date** | **Dividend Rate in Effect at March 31, 2026**<sup>(2)</sup> | **Next Dividend Rate Reset Date** | **Dividend Rate After Reset Date** |
| Series B | 300000 | $| 300000 | March 2, 2021 | 4.65% | June 15, 2026 | 5 Yr U.S. Treasury plus 4.076% |
| Series C | 300000 | 300000 | 300000 | October 13, 2021 | 4.125% | December 15, 2026 | 5 Yr U.S. Treasury plus 3.149% |
| Series D | 300000 | 300000 | 300000 | September 24, 2024 | 6.00% | December 15, 2029 | 5 Yr U.S. Treasury plus 2.560%<sup>(3)</sup> |
| Total | 900000 | $| 900000 |  |  |  |  |
| (1) The Series B Preferred Stock, Series C Preferred Stock and Series D Preferred Stock each have a redemption price of $1,000.00 per share, plus any declared and unpaid dividends to, but excluding, the redemption date without accumulation of any undeclared dividends. | (1) The Series B Preferred Stock, Series C Preferred Stock and Series D Preferred Stock each have a redemption price of $1,000.00 per share, plus any declared and unpaid dividends to, but excluding, the redemption date without accumulation of any undeclared dividends. | (1) The Series B Preferred Stock, Series C Preferred Stock and Series D Preferred Stock each have a redemption price of $1,000.00 per share, plus any declared and unpaid dividends to, but excluding, the redemption date without accumulation of any undeclared dividends. | (1) The Series B Preferred Stock, Series C Preferred Stock and Series D Preferred Stock each have a redemption price of $1,000.00 per share, plus any declared and unpaid dividends to, but excluding, the redemption date without accumulation of any undeclared dividends. | (1) The Series B Preferred Stock, Series C Preferred Stock and Series D Preferred Stock each have a redemption price of $1,000.00 per share, plus any declared and unpaid dividends to, but excluding, the redemption date without accumulation of any undeclared dividends. | (1) The Series B Preferred Stock, Series C Preferred Stock and Series D Preferred Stock each have a redemption price of $1,000.00 per share, plus any declared and unpaid dividends to, but excluding, the redemption date without accumulation of any undeclared dividends. | (1) The Series B Preferred Stock, Series C Preferred Stock and Series D Preferred Stock each have a redemption price of $1,000.00 per share, plus any declared and unpaid dividends to, but excluding, the redemption date without accumulation of any undeclared dividends. | (1) The Series B Preferred Stock, Series C Preferred Stock and Series D Preferred Stock each have a redemption price of $1,000.00 per share, plus any declared and unpaid dividends to, but excluding, the redemption date without accumulation of any undeclared dividends. |
| (2) Dividends on preferred stock are discretionary and non-cumulative. When declared, dividends on the Series B Preferred Stock, Series C Preferred Stock and Series D Preferred Stock are reset every five years and payable quarterly in arrears. | (2) Dividends on preferred stock are discretionary and non-cumulative. When declared, dividends on the Series B Preferred Stock, Series C Preferred Stock and Series D Preferred Stock are reset every five years and payable quarterly in arrears. | (2) Dividends on preferred stock are discretionary and non-cumulative. When declared, dividends on the Series B Preferred Stock, Series C Preferred Stock and Series D Preferred Stock are reset every five years and payable quarterly in arrears. | (2) Dividends on preferred stock are discretionary and non-cumulative. When declared, dividends on the Series B Preferred Stock, Series C Preferred Stock and Series D Preferred Stock are reset every five years and payable quarterly in arrears. | (2) Dividends on preferred stock are discretionary and non-cumulative. When declared, dividends on the Series B Preferred Stock, Series C Preferred Stock and Series D Preferred Stock are reset every five years and payable quarterly in arrears. | (2) Dividends on preferred stock are discretionary and non-cumulative. When declared, dividends on the Series B Preferred Stock, Series C Preferred Stock and Series D Preferred Stock are reset every five years and payable quarterly in arrears. | (2) Dividends on preferred stock are discretionary and non-cumulative. When declared, dividends on the Series B Preferred Stock, Series C Preferred Stock and Series D Preferred Stock are reset every five years and payable quarterly in arrears. | (2) Dividends on preferred stock are discretionary and non-cumulative. When declared, dividends on the Series B Preferred Stock, Series C Preferred Stock and Series D Preferred Stock are reset every five years and payable quarterly in arrears. |
| (3) With respect to the Series D Preferred Stock, the dividend rate during any reset period is subject to a 6.00% floor. | (3) With respect to the Series D Preferred Stock, the dividend rate during any reset period is subject to a 6.00% floor. | (3) With respect to the Series D Preferred Stock, the dividend rate during any reset period is subject to a 6.00% floor. | (3) With respect to the Series D Preferred Stock, the dividend rate during any reset period is subject to a 6.00% floor. | (3) With respect to the Series D Preferred Stock, the dividend rate during any reset period is subject to a 6.00% floor. | (3) With respect to the Series D Preferred Stock, the dividend rate during any reset period is subject to a 6.00% floor. | (3) With respect to the Series D Preferred Stock, the dividend rate during any reset period is subject to a 6.00% floor. | (3) With respect to the Series D Preferred Stock, the dividend rate during any reset period is subject to a 6.00% floor. |

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For more information regarding our preferred stock issued and outstanding, see Note 6 of Notes to Consolidated Financial Statements included in Part II, Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2025.

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The following table summarizes the quarterly cash dividends that we paid during the three months ended March 31, 2026 on our outstanding Series B, Series C and Series D Preferred Stock (in thousands):

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| | |
|:---|:---|
|<br>**Title of Each Class** | **Payment Date**<br>**March 15, 2026** |
| Series B Preferred Stock | $3487 |
| Series C Preferred Stock | $3094 |
| Series D Preferred Stock | $4500 |

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*Off-balance Sheet Arrangements*

We have not established any unconsolidated entities for the purpose of facilitating off-balance sheet arrangements or for other contractually narrow or limited purposes. We have, however, from time to time established subsidiaries or trusts for the purpose of leasing aircraft or facilitating borrowing arrangements which are included in our balance sheet.

We have non-controlling interests in two investment funds in which we own 9.5% of the equity of each fund. We account for our interest in these funds under the equity method of accounting due to our level of influence and involvement in the funds. Also, we manage certain aircraft that we have sold through our Thunderbolt platform. In connection with the sale of certain aircraft portfolios through our Thunderbolt platform, we hold non-controlling interests of approximately 5.0% in two entities. These investments are accounted for under the cost method of accounting.

In connection with the Merger, we will continue to manage the aircraft management platforms above; however, certain services for the aircraft and leases will be subserviced by SMBC AC.

For more information regarding our aircraft under management, see Note 15 of Notes to Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.

***Credit Ratings***

Our investment-grade corporate and long-term debt credit ratings help us to lower our cost of funds and broaden our access to attractively priced capital. In connection with the Merger, our investment grade credit ratings were affirmed, through a formal rating

assessment process, by the relevant rating agencies. The following table summarizes our current credit ratings:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Rating Agency** | **Long-term Debt** | **Short-Term Rating** | **Corporate Rating** | **Outlook** | **Date of Last Long-term Debt and Corporate Ratings Action** |
| Kroll Bond Ratings  | A- | K-1 | A- | Stable | April 8, 2026 |
| Standard and Poor's | BBB | A-2 | BBB | Stable | April 8, 2026 |
| Fitch Ratings | BBB | F-3 | BBB | Negative | April 8, 2026 |

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While a ratings downgrade would not result in a default under any of our debt agreements, it could adversely affect our ability to issue debt and obtain new financings, or renew existing financings, and it would increase the interest rate applicable to certain of our financings.

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**Results of Operations**

The following table presents our historical operating results for the three months ended March 31, 2026 and 2025 (in thousands, except per share amounts and percentages):

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| | | |
|:---|:---|:---|
| | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
| | **2026** | **2025** |
| | **(unaudited)** | **(unaudited)** |
| &nbsp;&nbsp;&nbsp;**Revenues and other income** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Rental of flight equipment revenue |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lease rentals | $666675 | $637233 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Maintenance rentals and other receipts | 7241 | 8137 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total rental of flight equipment revenue | 673916 | 645370 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on aircraft sales and trading and other income | 65307 | 92912 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenues and other income | 739223 | 738282 |
| &nbsp;&nbsp;&nbsp;**Expenses** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest | 201844 | 208574 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of debt discounts and issuance costs | 12408 | 13995 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense | 214252 | 222569 |
| &nbsp;&nbsp;&nbsp;Depreciation of flight equipment | 309783 | 299019 |
| &nbsp;&nbsp;&nbsp;Recoveries of Russian fleet write-off |  | (331938) |
| &nbsp;&nbsp;&nbsp;Selling, general and administrative | 60191 | 59348 |
| &nbsp;&nbsp;&nbsp;Stock-based compensation expense | 5096 | 17616 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total expenses | 589322 | 266614 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income before taxes | 149901 | 471668 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income tax expense | (24005) | (95836) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income | $125896 | $375832 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred stock dividends | (11081) | (11081) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income attributable to common stockholders | $114815 | $364751 |
| **Earnings per share of common stock:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | $1.03 | $3.27 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | $1.02 | $3.26 |
| &nbsp;&nbsp;&nbsp;**Other financial data** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Pre-tax margin | 20.3% | 63.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted net income before income taxes<sup>(1)</sup> | $165412 | $169490 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted diluted earnings per share before income taxes<sup>(1)</sup> | $1.47 | $1.51 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted pre-tax margin<sup>(1)</sup> | 22.4% | 23.0% |

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__________________________________________

&nbsp;&nbsp;&nbsp;&nbsp;(1)Adjusted net income before income taxes (defined as net income attributable to common stockholders excluding the effects of certain non-cash items and other items that we do not believe are indicative of our ongoing operations, such as retirement compensation, merger related costs and recoveries related to our former Russian fleet, and certain other items), adjusted pre-tax margin (defined as adjusted net income before income taxes divided by total revenues) and adjusted diluted earnings per share before income taxes (defined as adjusted net income before income taxes divided by the weighted average diluted common shares outstanding) are measures of operating performance that are not defined by GAAP and should not be considered as an alternative to net income attributable to common stockholders, pre-tax margin,

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earnings per share and diluted earnings per share, or any other performance measures derived in accordance with GAAP. Adjusted net income before income taxes, adjusted pre-tax margin and adjusted diluted earnings per share before income taxes are presented as supplemental disclosure because management believes they provide useful information on our earnings from ongoing operations.

Management and our board of directors use adjusted net income before income taxes, adjusted pre-tax margin and adjusted diluted earnings per share before income taxes to assess our consolidated financial and operating performance. Management believes these measures are helpful in evaluating the operating performance of our ongoing operations and identifying trends in our performance, because they remove the effects of certain non-cash items, and other items that we do not believe are indicative of our ongoing operations. Adjusted net income before income taxes, adjusted pre-tax margin and adjusted diluted earnings per share before income taxes, however, should not be considered in isolation or as a substitute for analysis of our operating results or cash flows as reported under GAAP. Adjusted net income before income taxes, adjusted pre-tax margin and adjusted diluted earnings per share before income taxes do not reflect our cash expenditures or changes in our cash requirements for our working capital needs. In addition, our calculation of adjusted net income before income taxes, adjusted pre-tax margin and adjusted diluted earnings per share before income taxes may differ from the adjusted net income before income taxes, adjusted pre-tax margin and adjusted diluted earnings per share before income taxes, or analogous calculations of other companies in our industry, limiting their usefulness as a comparative measure.

The following table shows the reconciliation of the numerator for adjusted pre-tax margin (in thousands, except percentages):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
| | **2026** | **2026** | **2025** | **2025** |
| | **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** |
| **Reconciliation of the numerator for adjusted pre-tax margin (net income attributable to common stockholders to adjusted net income before income taxes):** |  |  |  |  |
| Net income attributable to common stockholders | $| 114815 | $| 364751 |
| Amortization of debt discounts and issuance costs | 12408 | 12408 | 13995 | 13995 |
| Recoveries of Russian fleet write-off |  |  | (331938) | (331938) |
| Stock-based compensation expense | 5096 | 5096 | 17616 | 17616 |
| Retirement compensation expense |  |  | 9230 | 9230 |
| Merger related costs | 9088 | 9088 |  |  |
| Income tax expense | 24005 | 24005 | 95836 | 95836 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted net income before income taxes | $| 165412 | $| 169490 |
| **Denominator for adjusted pre-tax margin:** |  |  |  |  |
| Total revenues | $| 739223 | $| 738282 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted pre-tax margin<sup>(a)</sup> | 22.4% | 22.4% | 23.0% | 23.0% |
| (a) Adjusted pre-tax margin is adjusted net income before income taxes divided by total revenues. | (a) Adjusted pre-tax margin is adjusted net income before income taxes divided by total revenues. | (a) Adjusted pre-tax margin is adjusted net income before income taxes divided by total revenues. | (a) Adjusted pre-tax margin is adjusted net income before income taxes divided by total revenues. | (a) Adjusted pre-tax margin is adjusted net income before income taxes divided by total revenues. |

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The following table shows the reconciliation of the numerator for adjusted diluted earnings per share before income taxes (in thousands, except share and per share amounts):

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| | | |
|:---|:---|:---|
| | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
| | **2026** | **2025** |
| | **(unaudited)** | **(unaudited)** |
| **Reconciliation of the numerator for adjusted diluted earnings per share (net income attributable to common stockholders to adjusted net income before income taxes):** |  |  |
| Net income attributable to common stockholders | $114815 | $364751 |
| Amortization of debt discounts and issuance costs | 12408 | 13995 |
| Recoveries of Russian fleet write-off |  | (331938) |
| Stock-based compensation expense | 5096 | 17616 |
| Retirement compensation expense |  | 9230 |
| Merger related costs | 9088 |  |
| Income tax expense | 24005 | 95836 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted net income before income taxes | $165412 | $169490 |
| **Denominator for adjusted diluted earnings per share:&nbsp;&nbsp;&nbsp;&nbsp;** |  |  |
| Weighted-average diluted common shares outstanding&nbsp;&nbsp;&nbsp;&nbsp; | 112484656 | 112030382 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted diluted earnings per share before income taxes<sup>(b)</sup> | $1.47 | $1.51 |
| (b) Adjusted diluted earnings per share before income taxes is adjusted net income before income taxes divided by weighted-average diluted common shares outstanding. | (b) Adjusted diluted earnings per share before income taxes is adjusted net income before income taxes divided by weighted-average diluted common shares outstanding. | (b) Adjusted diluted earnings per share before income taxes is adjusted net income before income taxes divided by weighted-average diluted common shares outstanding. |

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***Three months ended March 31, 2026, compared to the three months ended March 31, 2025***

***Lease rentals***

During the three months ended March 31, 2026, we recorded $666.7 million in lease rental revenue, which included amortization expense related to initial direct costs of $21.0 million as compared to $637.2 million in lease rental revenue, which included amortization expense related to initial direct costs of $22.7 million for the three months ended March 31, 2025. The increase is primarily due to the growth of our flight equipment subject to operating leases since March 31, 2025 and an increase in our portfolio lease yield.

***Maintenance rentals and other receipts***

During the three months ended March 31, 2026, we recorded $7.2 million in maintenance rentals and other receipts as compared to $8.1 million for the three months ended March 31, 2025. Our maintenance rentals and other receipts decreased primarily due to lower overhaul revenue recognized as compared to the prior year period. For the three months ended March 31, 2026 and March 31, 2025, respectively, we did not record any end of lease revenue.

***Gain on aircraft sales and trading and other income***

Gain on aircraft sales and trading and other income decreased to $65.3 million for the three months ended March 31, 2026 compared to $92.9 million for the three months ended March 31, 2025, primarily driven by lower sales activity. During the three months ended March 31, 2026, we recorded $53.3 million in gains from the sale of six aircraft compared to $60.9 million in gains from the sale of 16 aircraft and $7.6 million from one sales-type lease for the three months ended March 31, 2025. In addition we had an $8.5 million decrease in management fee revenue and a $4.0 million decrease in other income, which includes interest income, foreign currency fluctuations on our sales-type leases and other miscellaneous income from the prior year period.

***Interest expense***

Interest expense totaled $214.3 million for the three months ended March 31, 2026 compared to $222.6 million for the three months ended March 31, 2025. Despite the increase in our composite cost of funds from 4.26% to 4.29%, our interest expense decreased primarily due to lower average debt balances during the period.

***Depreciation expense***

We recorded $309.8 million in depreciation expense of flight equipment for the three months ended March 31, 2026 compared to $299.0 million for the three months ended March 31, 2025. The increase in depreciation expense for the three months ended March 31, 2026, compared to the three months ended March 31, 2025, is primarily attributable to the growth of our flight equipment subject to operating leases.

***Recoveries of Russian fleet write-off***

During the three months ended March 31, 2025, we recognized a net benefit of $331.9 million from the settlement of insurance claims with certain insurers under our contingent and possessed insurance policy comprised of $328.5 million in cash insurance settlement proceeds and a $3.4 million benefit related to our equity interest in our managed fleet. We did not have any corresponding insurance settlements in the three months ended March 31, 2026.

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***Stock-based compensation expense***

We recorded stock-based compensation expense of $5.1 million and $17.6 million for the three months ended March 31, 2026 and March 31, 2025, respectively. The decrease in stock-based compensation was primarily driven by the one-time $7.4 million expense related to the acceleration of certain RSUs resulting from the retirement of our former Executive Chairman during the three months ended March 31, 2025, as well as a revision in the underlying vesting estimates of certain book value RSUs made in the three months ended March 31, 2025 due to increased probability of certain performance criteria being achieved, which also contributed to the increase in stock-based compensation expense during the prior period.

***Selling, general and administrative expenses***

We recorded selling, general and administrative expenses of $60.2 million for the three months ended March 31, 2026 compared to $59.3 million for the three months ended March 31, 2025. Selling, general and administrative expenses remained relatively flat for the three months ended March 31, 2026 compared to the three months ended March 31, 2025, as merger related costs of $9.1 million in the current period were largely offset by $9.2 million of retirement expenses recognized in the prior year period. Selling, general and administrative expenses represented 8.1% and 8.0% as a percentage of total revenue for each of the three months ended March 31, 2026 and 2025, respectively.

***Taxes***

Our effective tax rate for the three months ended March 31, 2026 decreased to 16.0% from 20.3% in the three months ended March 31, 2025 primarily due to lower income tax rate in certain jurisdictions, discrete items in the period and changes in permanent items.

***Net income attributable to common stockholders***

For the three months ended March 31, 2026, we reported net income attributable to common stockholders of $114.8 million, or $1.02 per diluted share, compared to net income attributable to common stockholders of $364.8 million, or $3.26 per diluted share, for the three months ended March 31, 2025. In the prior year, we benefited from a $331.9 million settlement of insurance claims with certain insurers related to aircraft detained in Russia, as well as higher gains on sales, resulting in a decrease in our net income attributable to common stockholders in the current period. These were slightly offset by higher total rental of flight equipment revenue in the current period and an overall decrease in our total operating expenses, excluding the recovery of our Russian fleet write-off, as discussed above.

***Adjusted net income before income taxes***

For the three months ended March 31, 2026, we recorded adjusted net income before income taxes of $165.4 million, or $1.47 per adjusted diluted share, compared to adjusted net income before income taxes of $169.5 million, or $1.51 per adjusted diluted share, for the three months ended March 31, 2025. Despite the increase in our rental revenues due to the growth of our fleet and higher portfolio lease yield, our adjusted net income decreased primarily due to lower sales activity and an increase in depreciation expense, partially offset by a decrease in interest expense due to lower average debt balances, as discussed above.

Adjusted net income before income taxes and adjusted diluted earnings per share before income taxes are measures of financial and operational performance that are not defined by GAAP. See footnote (1) under the "Results of Operations" table above for a discussion of adjusted net income before income taxes and adjusted diluted earnings per share before income taxes as non-GAAP measures and reconciliation of these measures to net income attributable to common stockholders.

**Critical Accounting Estimates**

Our critical accounting estimates reflecting management's estimates and judgments are described in our Annual Report on Form 10-K for the year ended December 31, 2025. We have reviewed recently adopted accounting pronouncements and determined that the adoption of such pronouncements is not expected to have a material impact on our Consolidated Financial Statements. Accordingly, there have been no material changes to critical accounting estimates in the three months ended March 31, 2026.

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**ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**

Market risk represents the risk of changes in the value of a financial instrument, caused by fluctuations in interest rates and foreign exchange rates. Changes in these factors could cause fluctuations in our results of operations and cash flows. We are exposed to the market risks described below.

**Interest Rate Risk**

The nature of our business exposes us to market risk arising from changes in interest rates. Changes, both increases and decreases, in our cost of borrowing, as reflected in our composite interest rate, directly impact our net income. Lease rates, and therefore our revenue from a lease, are generally fixed over the life of our leases. We have some exposure to changing interest rates as a result of our floating-rate debt, primarily from our Revolving Credit Facility, other revolving credit facilities and unsecured term loans. As of April 30, 2026, March 31, 2026 and December 31, 2025, we had $4.4 billion, $6.5 billion and $4.6 billion in floating-rate debt outstanding, respectively. Additionally, we have outstanding preferred stock with an aggregate stated amount of $900.0 million as of April 30, 2026, which will reset the dividends to a new fixed rate based on the then-applicable treasury rate after five years from initial issuance and every five years thereafter. If interest rates remain elevated, we would be obligated to make higher interest payments to the lenders of our floating-rate debt, and higher dividend payments to the holders of our preferred stock. If we incur significant fixed-rate debt in the future, increased interest rates prevailing in the market at the time of the incurrence of such debt would also increase our interest expense. If the composite interest rate on our outstanding floating rate debt was to increase by 1.0%, we would expect to incur additional annual interest expense on our existing indebtedness of approximately $44.1 million, $64.7 million and $46.0 million as of April 30, 2026, March 31, 2026 and December 31, 2025, respectively, each on an annualized basis, which would put downward pressure on our operating margins.

**Foreign Exchange Rate Risk**

We attempt to minimize currency and exchange risks by entering into aircraft purchase agreements and a majority of lease agreements and debt agreements with U.S. dollars as the designated payment currency. Thus, most of our revenue and expenses are denominated in U.S. dollars. Approximately 0.3% of our lease revenues were denominated in foreign currency as of March 31, 2026 and December 31, 2025. Additionally, some of our net investments in sales-type leases, which represent 0.6% and 0.7% of our total assets as of March 31, 2026 and December 31, 2025, respectively, were denominated in foreign currency. These investments are not currently hedged and require remeasurement as of the end of each period, exposing us to fluctuations in exchange rates that could impact our financial results and cash flows. During the three months ended March 31, 2026, we incurred a $3.1 million loss resulting from currency fluctuation based on these investments. We periodically assess our unhedged foreign currency risk and may employ hedging strategies in the future to mitigate any potential adverse effects.

Approximately 6.6%, 6.7% and 6.8% of our debt obligations were denominated in foreign currency as of April 30, 2026, March 31, 2026 and December 31, 2025, respectively; however, the exposure of such debt has been effectively hedged. As our principal currency is the U.S. dollar, fluctuations in the U.S. dollar as compared to other major currencies should not have a significant impact on our future operating results. However, many of our lessees are exposed to currency risk due to the fact that they earn revenues in their local currencies while a significant portion of their liabilities and expenses are denominated in U.S. dollars, including their lease payments to us, as well as fuel, debt service, and other expenses. For the three months ended March 31, 2026, more than 95% of our revenues were derived from customers who have their principal place of business outside the U.S. and most leases designated payment currency as U.S. dollars. The ability of our lessees to make lease payments to us in U.S. dollars may be adversely impacted in the event of an appreciating U.S. dollar.

**ITEM 4. CONTROLS AND PROCEDURES**

**Evaluation of Disclosure Controls and Procedures**

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our filings under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission ("SEC"), and such information is accumulated and communicated to our management, including the Chief Executive Officer and Chief Financial Officer (collectively, the "Certifying Officers"), as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide

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only reasonable assurance of achieving the desired control objectives as the Company's controls are designed to do, and management necessarily was required to apply its judgment in evaluating the risk related to controls and procedures.

We have evaluated, under the supervision and with the participation of management, including the Certifying Officers, the effectiveness of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended, as of March 31, 2026. Based on that evaluation, our Certifying Officers have concluded that our disclosure controls and procedures were effective as of March 31, 2026.

**Changes in Internal Control Over Financial Reporting**

There were no changes in our internal control over financial reporting during the quarter ended March 31, 2026 that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

On April 8, 2026, Air Lease Corporation completed the previously announced merger of Takeoff Merger Sub Inc. with and into Air Lease Corporation, with Air Lease Corporation surviving the merger as an indirect subsidiary of Sumisho Air Lease Corporation Designated Activity Company. Management is in the process of evaluating the impact of the Merger on the Company's internal control over financial reporting.

**PART II—OTHER INFORMATION**

**ITEM 1. LEGAL PROCEEDINGS**

On October 15, 2025, the Company filed with the SEC a preliminary proxy statement on Schedule 14A (the "Preliminary Proxy Statement") in connection with the special meeting of our Class A common stockholders held on December 18, 2025 (the "Special Meeting") to, among other things, adopt and approve the Merger Agreement. On November 4, 2025, we filed with the SEC a definitive proxy statement on Schedule 14A (the "Definitive Proxy Statement").

On November 12, 2025, plaintiff Brooke E. Bingham (the "Plaintiff"), a purported stockholder of the Company, filed a putative class action lawsuit captioned *Bingham v. Air Lease Corporation*, C.A. No. 2025-1308-BWD (the "Delaware Complaint") in the Court of Chancery of the State of Delaware (the "Delaware Court"), naming as defendants the Company and members of the Board (together, the "Defendants"). The Delaware Complaint alleged, among other things, that the Board violated its fiduciary duties under Delaware law by failing to disclose purportedly material information regarding the Merger in the Definitive Proxy Statement. The Plaintiff also filed a motion for expedited proceedings and a motion for a preliminary injunction.

On November 24, 2025, two purported Class A common stockholders of the Company filed separate lawsuits against the Company and each member of our board of directors in the Supreme Court of the State of New York in New York County (the "New York Complaints" and together with the Delaware Complaint, the "Complaints"). The New York Complaints assert claims under New York common law for negligent misrepresentation and concealment and general negligence, concerning the Definitive Proxy Statement. The New York Complaints also sought to enjoin the Merger until supplemental disclosures to the Definitive Proxy Statement were made.

In addition, subsequent to the Preliminary Proxy Statement filing, the Company also received eleven demand letters from counsel representing purported Class A common stockholders of the Company. These demand letters alleged that the Preliminary Proxy Statement or the Definitive Proxy Statement violated applicable federal or state law and contained materially misleading and/or incomplete disclosures. These demand letters requested that the Company issue supplemental disclosures to the Definitive Proxy Statement.

On November 28, 2025, in order to reduce the risk of the Complaints delaying the Special Meeting or the closing of the Merger, and to minimize the nuisance and expense of defending against any litigation, and without admitting any liability or wrongdoing, the Company filed a Current Report on Form 8-K to update and supplement the Definitive Proxy Statement with additional disclosures relating to the Merger (the "Supplemental Disclosures"). Thereafter, the attorneys representing the Class A common stockholders who filed the Complaints acknowledged that the Supplemental Disclosures mooted the claims raised in the Complaints in their entirety and confirmed that they would seek a mootness fee in connection with the Supplemental Disclosures.

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On December 4, 2025, the Delaware Court granted a stipulation and proposed order voluntarily dismissing the Delaware Complaint and retaining jurisdiction solely for the purpose of adjudicating the anticipated application of the Plaintiff's counsel for an award of attorneys' fees and reimbursement of expenses in connection with the Delaware Complaint (the "Fee and Expense Application"). Following negotiations, the Company, while denying any and all liability on behalf of the Defendants and maintaining that the Proxy complies fully with all applicable laws, decided it was in its and its stockholders' best interests to pay the Plaintiff's counsel $450,000 in attorneys' fees and expenses to resolve the Fee and Expense Application. The Delaware Court has not been asked to review, and will pass no judgment on, the payment of these attorneys' fees and expenses.

The New York Complaints remain pending as the mootness fee demand is resolved. The Company continues to believe that the disclosures in the Definitive Proxy Statement comply fully with all applicable laws, and denies the allegations in the Complaints and believes they are without merit. Nevertheless, resolution of these matters may involve payments by the Company to the Class A common stockholders' attorneys that filed the New York Complaints and/or submitted the demand letters.

From time to time, we may be involved in litigation and claims incidental to the conduct of our business in the ordinary course. Our industry is also subject to scrutiny by government regulators, which could result in enforcement proceedings or litigation related to regulatory compliance matters. We are not presently a party to any material enforcement proceedings or litigation related to regulatory compliance matters. We maintain insurance policies in amounts and with the coverage and deductibles we believe are adequate, based on the nature and risks of our business, historical experience and industry standards.

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**ITEM 1A. RISK FACTORS**

*The following important risk factors, and those risk factors described elsewhere in this report or in our other filings with the SEC, could cause our actual results to differ materially from those stated in forward-looking statements contained in this document and elsewhere. These risks are not presented in order of importance or probability of occurrence. Further, the risks described below are not the only risks that we face. Additional risks and uncertainties not currently known to us or that we currently deem immaterial may also impair our business operations. Any of these risks may have a material adverse effect on our business, reputation, financial condition, results of operations, profitability, cash flows or liquidity.* 

***<u>Risk Factors Summary</u>***

**Risks relating to our indebtedness**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we have a significant amount of indebtedness, requiring a substantial portion of our cash flows to be dedicated to debt service payments, and we will require significant capital to satisfy our outstanding debt obligations as they come due;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• despite our substantial indebtedness levels, we may still be able to incur significantly more debt, which could exacerbate the risks associated with our substantial debt;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the cost of borrowing or interest rate increases or decreases, which may adversely affect our net income and our ability to compete in the marketplace;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any negative changes in our credit ratings may limit our ability to obtain financing or increase our borrowing costs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the restrictions or prohibitions under certain covenants from our debt agreements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our senior unsecured securities will be effectively subordinated to our secured debt to the extent of the value of the assets securing such indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the limited covenants applicable to our senior unsecured securities that may not provide protection against some events or developments that may affect our ability to repay such securities or the trading prices for such securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our inability to repurchase our senior unsecured notes upon a Change of Control Repurchase Event or Change of Control Triggering Event; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• holders of our senior unsecured notes may not be able to determine when a change of control giving rise to their right to have the notes repurchased has occurred following a sale of "substantially all" of our assets.

**Operational risks relating to our business**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we may be unable to generate sufficient returns on our aircraft investments which may have an adverse impact on our net income;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• failure to complete our planned aircraft sales could affect our net income and may lead us to use alternative sources of liquidity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our business depends on the ability of aircraft manufacturers to remain financially stable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• if our aircraft become obsolete or experience a decline in customer demand, our ability to lease and sell those aircraft and our results of operations may be negatively impacted and may result in impairment charges;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the value and lease rates for aircraft that we own or acquire could decline resulting in an impact to our earnings and cash flows;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• potential conflicts of interest may arise from SMBC AC's role as the exclusive servicer of our aircraft leased to non-U.S. airlines;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• after the Merger, we no longer have orderbooks with the OEMs, which may impact our ability to manage our aircraft portfolio and, if we are unable to attain new and younger aircraft, it may increase our re-leasing risk and residual value risk;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• aircraft have limited economic useful lives and depreciate over time and we may be required to record an impairment charge or sell aircraft for a price less than its depreciated book value which may impact our financial results;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we have concentrated customer exposure and economic, legal and political risks associated with certain lessees, including adverse events involving the regions in which certain lessees operate may have an adverse effect on our financial condition;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we are dependent on the ability of our lessees to perform their payment and other obligations to us under our leases and their failure to do so may materially and adversely affect our financial results and cash flows;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• lessee defaults and reorganizations, bankruptcies or similar proceedings may result in lost revenues and additional costs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we may experience increased competition from other aircraft lessors which may impact our ability to execute our long-term strategy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our lessees may fail to adequately insure our aircraft or fulfill their indemnity obligations, or we may not be able to adequately insure our aircraft, which may result in increased costs and liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a cyberattack or other interruption could lead to a material disruption of our information technology ("IT") systems or the IT systems of our third-party providers and the loss of information, which may hinder our ability to conduct our business effectively and may result in lost revenues and additional costs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we may encounter disputes, deadlock or other conflicts of interest with investment partners of entities in which we have minority interests and for which we serve as manager of the aircraft owned by the entities which may result in legal challenges, reputational harm or loss of fee income; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we may be unable to realize the anticipated benefits of the Merger, and significant costs have been incurred in connection with the Merger.

**Macroeconomic and global risks relating to our business**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• events outside of our control, including the threat or realization of epidemic diseases such as the COVID-19 pandemic, natural disasters, terrorist attacks, war or armed hostilities between countries or non-state actors, may adversely affect the demand for air travel, the financial condition of our lessees and of the aviation industry more broadly, or our operations and may ultimately impact our business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in fuel costs have negatively affected, and may continue to negatively affect, our lessees' ability to honor the terms of their leases and by extension the demand for our aircraft;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• inflationary pressure may have a negative impact on our financial results, including by diminishing the value of our leases;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• aircraft oversupply in the industry could decrease the value and lease rates of the aircraft in our fleet resulting in an impact to our earnings and cash flows;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• export restrictions and tariffs may impact where we can place and deliver our aircraft and negatively impact our ability to execute on our long-term strategy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we are subject to the economic and political risks associated with doing business around the world, including in emerging markets, which may expose our business to heightened risks and negatively impact our earnings and cash flows.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the appreciation of the U.S. dollar could negatively impact our lessees' ability to honor the terms of their leases, which are generally denominated in U.S. dollars, and may result in lost revenues and reduced net income.

**Regulatory, tax and legal risks relating to our business**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• income and other taxes could negatively affect our business and operating results due to our multi-jurisdictional operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• environmental regulations, fees, taxes and reporting, and other concerns may negatively affect demand for our aircraft, reduce travel and ultimately impact the operating results of our customers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• climate change may have a long-term impact on our business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risks and requirements related to transacting business in foreign countries may result in increased liabilities including penalties and fines as well as reputational harm;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a lessee's failure to obtain required licenses, consents and approvals could negatively affect our ability to remarket or sell aircraft;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• data privacy risks, including evolving laws, regulations, and other obligations and compliance efforts, may result in business interruption and increased costs and liabilities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• judgments obtained in a court of the United States may not be enforceable in Ireland and it may be difficult to serve process.

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**Risks Relating to our Indebtedness**

***We have a significant amount of indebtedness, requiring a substantial portion of our cash flows to be dedicated to debt service payments, and we will require significant capital to satisfy our outstanding debt obligations as they come due.***

We have a significant amount of indebtedness. As of April 30, 2026, our total consolidated indebtedness was $20.8 billion (including discounts and debt issuance costs), of which approximately $169.2 million was secured. Based on our outstanding debt as of April 30, 2026, we expect our interest payments will be approximately $118.7 million for the second quarter of 2026.

Our level of debt and the covenants contained in the agreements governing our debt could have important consequences, including making it more difficult for us to satisfy our debt payment obligations, which could in turn result in an event of default on such debt, and requiring a substantial portion of our cash flows to be dedicated to debt service payments; limiting our ability to obtain additional financing; increasing our vulnerability to negative economic and industry conditions; increasing our interest rate risk; placing us at a competitive disadvantage compared to our competitors that have proportionately less debt; and limiting our flexibility in planning for and reacting to changes in our business and the industry in which we operate.

We also need to maintain access to the capital and credit markets and other sources of financing in order to repay or refinance our outstanding debt obligations. Our access to financing sources depends upon a number of factors over which we have limited control, including general market conditions and interest rate fluctuations; periods of unexpected market disruption and volatility; the market's view of the quality of our business and assets, perception of our growth potential and assessment of our credit risk; the relative attractiveness of alternative investments; and the trading prices of our debt securities. Depending on market conditions at the time and our access to capital, we may also have to rely more heavily on less efficient forms of debt financing that may require a larger portion of our cash flow from operations to service, thereby reducing funds available for our operations, future business opportunities and other purposes. These alternative measures may not be successful and may not permit us to make required repayments on our debt or meet our cash requirements.

If we are unable to generate sufficient cash flows from operations and cannot obtain capital on terms acceptable to us, we may be forced to seek alternatives, such as selling aircraft in the near term, or in the longer term, delaying investments and aircraft purchases. As a result of these risks and repercussions, our inability to make our debt payments and/or obtain incremental capital may have a material adverse effect on our business.

***Despite our substantial indebtedness levels, we may still be able to incur significantly more debt, which could exacerbate the risks associated with our substantial debt.***

We may be able to incur additional debt in the future. The terms of our financing facilities allow us to incur substantial amounts of additional debt, including secured debt, subject to certain limitations, which could exacerbate the risks associated with our existing substantial indebtedness.

***Cost of borrowing or interest rate increases may adversely affect our net income and our ability to compete in the marketplace. Decreases in interest rates may also adversely affect our business.***

We finance our business through a combination of short-term and long-term debt financings predominantly at fixed rate. As of April 30, 2026, we had $16.4 billion of fixed rate debt and $4.4 billion of floating rate debt outstanding. Further, we have outstanding preferred stock with an aggregate stated amount of $900.0 million that currently pays dividends at a fixed rate, but the dividend rate is subject to reset every five years based on the then current 5-year U.S. Treasury rate, with the dividend rate on our Series B Preferred Stock and Series C Preferred Stock set to reset in June and December 2026, respectively, and based on prevailing interest rates, are expected to reset to higher dividend rates absent redemption.

Any increase in our cost of borrowing directly impacts our net income. A shift in monetary policy in the United States and other countries beginning in 2022 resulted in rapid interest rate increases over a relatively short period of time and rates may remain elevated despite rate cuts in late 2025 by the Federal Reserve Open Market Committee. The Federal Open Market Committee paused its easing cycle in March 2026, and the timing and extent of any further reductions remain uncertain and dependent on evolving inflation, labor market conditions and geopolitical developments.

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Interest rates that we obtain on our debt financings can fluctuate based on, among other things, changes in views of our credit risk, fluctuations in U.S. Treasury rates and SOFR, as applicable, changes in credit spreads, and the duration of the debt being issued. Increased interest rates prevailing in the market at the time of our incurrence of new debt will also increase our interest expense.

Moreover, if interest rates remain elevated or increase further, we will be unable to immediately offset the negative impact on our net income by increasing lease rates, even if the market were able to bear the increased lease rates. Lease rates are influenced by several factors other than interest rates, including supply technicals driven by aircraft demand, supply chain disruptions, environmental initiatives and other factors that may result in a change in lease rates regardless of the interest rate environment. Our leases are generally for multiple years with fixed lease rates over the life of the lease. Therefore, lags will exist because our lease rates with respect to a particular aircraft cannot generally be increased until the expiration of the lease. Higher interest expense and the need to offset higher borrowing costs by increasing lease rates may ultimately impact our ability to compete with other aircraft leasing companies in the marketplace, especially if those companies have lower cost of funding.

Decreases in interest rates may also adversely affect our business. The U.S. Federal Reserve cut rates in 2025 and may continue to cut rates in 2026 and beyond. Since our fixed rate leases are based, in part, on prevailing interest rates at the time we enter into the lease, if interest rates decrease, new fixed rate leases we enter into may be at lower lease rates and our lease revenue will be adversely affected.

If any of these circumstances occur, our net income and/or our ability to compete in the marketplace may be adversely affected.

***Negative changes in our credit ratings may limit our ability to obtain financing or increase our borrowing costs, which may adversely impact our net income and/or our ability to compete in the marketplace.***

We are currently subject to periodic review by independent credit rating agencies S&P, Fitch and Kroll, each of which currently maintains an investment grade rating with respect to us, and we may become subject to periodic review by other independent credit rating agencies in the future. Our ability to obtain debt financing and our cost of debt financing is dependent, in part, on our credit ratings and we cannot assure you that these credit ratings will remain in effect or that a rating will not be lowered, suspended or withdrawn entirely by a rating agency if, in that rating agency's judgment, future circumstances relating to the basis of the rating, such as adverse changes, so warrant. Maintaining our credit ratings depend in part on strong financial results and other factors, including the outlook of the rating agencies on our sector and on the market generally. Ratings are not a recommendation to buy, sell or hold any security, and each agency's rating should be evaluated independently of any other agency's rating. Actual or anticipated changes or downgrades in our credit ratings, including any announcement that our ratings are under review for a downgrade, could increase our borrowing costs and limit our access to the capital markets, which may adversely impact our net income and/or our ability to compete in the marketplace.

***Some of our debt agreements contain covenants that impose restrictions on us and our subsidiaries that may limit our flexibility to operate our business.***

Some of the agreements governing our indebtedness contain financial and non-financial covenants that impose operating and financial restrictions on our activities. These restrictions include certification to, compliance with or maintenance of certain financial tests and ratios, including certification of net worth and maintenance of interest expense coverage ratios, and limit or prohibit our ability to, among other things: sell assets; incur additional indebtedness; create liens on assets; enter into transactions with affiliates; engage in mergers or consolidations; and change the business conducted by the borrowers and their respective subsidiaries. These restrictions could seriously harm our ability to operate our business by, among other things, limiting our ability to take advantage of financing, amalgamation, merger and acquisition and other corporate opportunities.

In addition, most of our credit facilities require us to comply with certain financial maintenance covenants (measured at the end of each quarter) including minimum consolidated stockholders' equity, minimum consolidated unencumbered assets, and an interest coverage test. Complying with such covenants may at times necessitate that we forego other opportunities, including incurring additional indebtedness or entering into certain transactions, investments, acquisitions, loans, guarantees or advances. Moreover, our failure to comply with any of these covenants could constitute a default and could accelerate some, if not all, of the indebtedness outstanding under such agreements and could create cross-defaults under other debt agreements, which would have a negative effect on our business and our ability to continue as a going concern. In addition, for our secured debt, if we are unable to repay such indebtedness when due and payable, the lenders under our secured debt could proceed against, among other things, the aircraft or other

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assets securing such indebtedness. As the result of the existence of these financial and non-financial covenants and our need to comply with them, the flexibility we have to operate our business may be limited.

***Our senior unsecured securities will be effectively subordinated to our secured debt to the extent of the value of the assets securing such indebtedness.***

Our senior unsecured securities (including our Medium-Term Note Program and the notes issued in connection with the Merger) will be effectively subordinated to our secured indebtedness, to the extent of the value of the assets securing such indebtedness. Holders of our senior unsecured securities may be limited in their ability to control any disposition of assets securing other indebtedness. As of April 30, 2026, the principal amount of our secured indebtedness outstanding was $169.2 million.

Additionally, we expect that we will be able, if we obtain commitments from lenders, to incur significant additional secured debt in the future. As a result of this effective subordination, upon a default in payment on, or the acceleration of, any of our secured indebtedness, or in the event of our bankruptcy, insolvency, liquidation, dissolution or reorganization, the proceeds from the sale of assets securing our secured indebtedness will be available to repay obligations on our senior unsecured securities only after all obligations under the applicable secured debt have been paid in full. As a result, the holders of our senior unsecured securities may receive less, ratably, than the holders of secured debt in the event of our bankruptcy, insolvency, liquidation, dissolution or reorganization.

***The limited covenants applicable to our senior unsecured securities may not provide protection against some events or developments that may affect our ability to repay such securities or the trading prices for such securities.***

The indentures that govern our senior unsecured securities (including our Medium-Term Note Program and the notes issued in connection with the Merger), among other things, do not:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• require us to maintain any financial ratios or specific levels of net worth, revenues, income, cash flow or liquidity and, accordingly, do not protect holders of our senior unsecured securities in the event that we experience significant adverse changes in our financial condition or results of operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• limit our ability to incur indebtedness, including secured indebtedness (subject to compliance with the liens covenant), that is senior to or equal in right of payment to our senior unsecured securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• restrict our ability to repurchase or prepay our senior unsecured securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• restrict our ability to make investments; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• restrict our ability to pay dividends or repurchase or make other payments in respect of our securities ranking junior to our senior unsecured securities.

For these reasons, the limited protection investors are entitled to could have a material negative impact on the value of an investment in our senior unsecured securities.

***We may not be able to repurchase our senior unsecured notes upon a Change of Control Repurchase Event or Change of Control Triggering Event.***

Our stockholders may have an interest in pursuing a sale, divesture, merger or other disposition of all or part of us that they believe could enhance their equity investments. Upon the occurrence of a Change of Control Repurchase Event or Change of Control Triggering Event (each as defined in the indentures governing our senior unsecured notes), each holder of our senior unsecured notes will have the right to require us to repurchase all or any part of such holder's notes at a price equal to 101% of the principal amount thereof, plus accrued and unpaid interest, if any, to, but not including the date of repurchase. If we experience a Change of Control Repurchase Event or Change of Control Triggering Event, we cannot assure you that we would have sufficient financial resources available to satisfy our obligations to repurchase the notes. Our failure to repurchase the notes as required under the indenture that governs the notes would result in a default under such indenture, which could result in defaults under instruments governing our other indebtedness, including the acceleration of the payment of any borrowings thereunder, and have material adverse consequences for us and the holders of the notes.

Additionally, under certain of the agreements governing our other indebtedness, a change of control (as defined therein) may constitute an event of default thereunder, but not constitute a Change of Control Repurchase Event or Change of Control Triggering Event with respect to our senior unsecured notes, and may permit the lenders to accelerate the maturity of such indebtedness or may

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require us to offer to purchase such other indebtedness, often at a premium. In addition, certain important corporate events, such as leveraged recapitalizations, may not, under the indentures governing our senior unsecured notes, constitute a Change of Control Repurchase Event or Change of Control Triggering Event that would require us to repurchase the notes, even though those corporate events could increase the level of our indebtedness or otherwise adversely affect our capital structure, credit ratings or the value of the notes.

***Holders of our senior unsecured securities may not be able to determine when a change of control giving rise to their right to have the notes repurchased has occurred following a sale of "substantially all" of our assets.***

A Change of Control Repurchase Event or Change of Control Triggering Event will require us to make an offer to repurchase all of our outstanding senior unsecured securities. One of the circumstances under which a Change of Control, which is a condition to a Change of Control Repurchase Event or Change of Control Triggering Event, may occur is upon the sale or disposition of "all or substantially all" of our assets. There is no precise established definition of the phrase "substantially all" under applicable law and the interpretation of that phrase will likely depend upon particular facts and circumstances. Accordingly, the ability of a holder of senior unsecured securities to require us to repurchase its notes as a result of a sale of less than all of our assets to another person may be uncertain.

**Operational Risks Relating to our Business**

***We may be unable to generate sufficient returns on our aircraft investments which may have an adverse impact on our net income.***

Our financial performance is driven by our ability to acquire strategically attractive commercial aircraft, profitably lease and re-lease them, and finally sell such aircraft in order to generate sufficient revenues to finance our growth and operations, pay our debt service obligations, and meet our other corporate and contractual obligations. We rely on our ability to negotiate and enter into leases with favorable lease terms and to evaluate the ability of lessees to perform their obligations to us. When our leases expire or our aircraft are returned prior to the date contemplated in the lease, we bear the risk of re-leasing or selling the aircraft. Because our leases are predominantly operating leases, only a portion of an aircraft's value is recovered by the revenues generated from the lease and we may not be able to realize the aircraft's residual value after lease expiration. Our ability to profitably purchase, lease, re-lease, sell or otherwise dispose of our aircraft will depend on conditions in the airline industry and general market and competitive conditions at the time of purchase, lease and disposition. In addition to factors linked to the aviation industry in general, other factors that may affect our ability to generate adequate returns from our aircraft include the maintenance and operating history of the airframe and engines, the number of operators using the particular type of aircraft, and aircraft age. If we are unable to generate sufficient returns on our aircraft due to any of the above factors within or outside of our control, it may have an adverse impact on our net income.

***Failure to complete our planned aircraft sales could affect our net income, credit ratings, and may lead us to use alternative sources of liquidity.***

Proceeds from aircraft sales in our owned portfolio help supplement our liquidity position, contribute to our net income and improve our debt-to-equity ratio. Our planned aircraft sales are an important part of our strategy to reduce our leverage following the closing of the Merger. Our inability to complete the sales of such aircraft on the timeline anticipated, or at all, could impact our net income, credit ratings, and may lead us to use alternative sources of liquidity to fund our operations such as additional capital markets issuances or borrowings under our credit facilities.

***Our business depends on the ability of aircraft manufacturers to remain financially stable.***

The supply of commercial aircraft is dominated by a limited number of airframe and engine manufacturers. As a result, we depend on these manufacturers' ability to remain financially stable and produce products and related components which meet airlines' demands and regulatory requirements, which is in turn dependent on a number of factors over which we have little or no control. Those factors include the availability of raw materials and manufactured components, changes in highly exacting performance requirements and product specifications, economic conditions, changes in the regulatory environment, labor relations and negotiations between manufacturers and their respective workforces and quality controls at each manufacturer. For example, recent events, including the Boeing labor strike and the FAA's increased oversight of Boeing's quality control procedures and constraints placed on 737 MAX program production have resulted in delivery delays of Boeing aircraft. The ongoing impact from Pratt & Whitney GTF engine manufacturing flaws, which impacts certain of the engines used at Airbus, is resulting in accelerated engine removal and incremental shop visits. There can be no assurance how negatively Boeing's and Airbus' financial performance (and the aviation

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market generally) have been or will be impacted by these events including impacts from greater scrutiny of type certification, with potential retrospective scrutiny.

Should the manufacturers fail to respond appropriately to changes in the market environment (including, but not limited to, certain related supply chain issues), fail to address manufacturing issues (or should new manufacturing issues arise), we may experience:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reduced demand for a particular manufacturer's product, which may lead to reduced market lease rates and lower aircraft residual values and may affect our ability to remarket or sell at a profit, or at all, some of the aircraft in our fleet; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• technical or other difficulties with aircraft or engines that subject aircraft to operating restrictions, groundings or increased maintenance requirements, resulting in a decline in residual value and lease rates of such aircraft and impair our ability to lease or dispose of such aircraft or engines on favorable terms or at all.

Any of these circumstances could have a material adverse effect on our financial condition, cash flow and results of operations.

***If our aircraft become obsolete or experience a decline in customer demand, our ability to lease and sell those aircraft and our results of operations may be negatively impacted and may result in impairment charges.***

Aircraft are long-lived assets, requiring long lead times to develop and manufacture, with models becoming obsolete or less in demand over time, in particular when newer, more advanced aircraft are manufactured.

Our fleet has exposure to a decline in customer demand or obsolescence, particularly if unanticipated events occur which shorten the life cycle of such aircraft types, including: the introduction of superior aircraft or technology, such as new airframes or engines with higher fuel efficiency; the entrance of new manufacturers which could offer aircraft that are more attractive to our target lessees, including manufacturers of alternative technology aircraft; the advent of alternative transportation technologies which could make travel by air less desirable; government regulations, including those limiting noise and emissions and the age of aircraft operating in a jurisdiction; the costs of operating an aircraft, including maintenance which increases with aircraft age; and compliance with airworthiness directives. Obsolescence of certain aircraft may also trigger impairment charges, increase depreciation expense or result in losses related to aircraft asset value guarantees, if we provide such guarantees.

The demand for our aircraft is also affected by other factors outside of our control, including: air passenger demand; air cargo demand; air travel restrictions; airline financial health; changes in fuel costs, interest rates, foreign currency, inflation and general economic conditions; technical problems associated with a particular aircraft or engine model; airport and air traffic control infrastructure constraints; and the availability and cost of financing.

As demand for particular aircraft declines, lease rates for that type of aircraft are likely to correspondingly decline, the residual values of that type of aircraft could be negatively impacted, and we may be unable to lease or sell such aircraft on favorable terms, if at all. In addition, the risks associated with a decline in demand for a particular aircraft model or type increase if we have a high concentration of such aircraft.

If demand declines for a model or type of aircraft of which we own or of which we have a relatively high concentration, or should the aircraft model or type become obsolete, our ability to lease or sell those aircraft and our results of operations may be negatively impacted and may result in impairment charges.

***The value and lease rates for aircraft that we own or acquire could decline resulting in an impact to our earnings and cash flows.***

From time to time, aircraft values and lease rates have experienced declines due to a variety of factors outside of our control. These factors may impact the aviation industry as a whole or may be more specific to certain types of aircraft in our fleet. For example, the effects of pandemic related travel restrictions, as well as groundings and aircraft production delays, have each impacted and may continue to impact lease rates or our ability to lease certain aircraft in our fleet. Other factors include, but are not limited to: manufacturer production levels and technological innovation; the number of airlines operating the aircraft; our lessees' failure to maintain our aircraft; the impact of decisions by the regulatory authority under which the aircraft is operated and any applicable airworthiness directives, service bulletins or other regulatory action that could prevent or limit utilization of the aircraft. As a result of these factors, our earnings and cash flows may be impacted by any decrease in the value of aircraft that we own or acquire or decrease in market rates for leases for these aircraft.

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***Potential conflicts of interest may arise from SMBC AC's role as the exclusive servicer of our aircraft leased to non-U.S. airlines.***

We have entered into an agreement with SMBC AC to serve as exclusive servicer (in such capacity, the "Servicer") of our aircraft leased to non-U.S. airlines (the "Servicing Agreement"). Under the Servicing Agreement, SMBC AC is responsible for the provision of technical and lease administration services for the relevant aircraft within our fleet leased to non-U.S. airlines.

The Servicer also owns, manages and services other aircraft portfolios, including those owned by affiliated or third-party entities and is engaged in a substantially similar line of business as us and our subsidiaries. Accordingly, potential conflicts may arise in allocating personnel, resources, aircraft remarketing efforts, or lease placement opportunities among such portfolios. There can be no assurance that the Servicer will allocate resources or opportunities to our portfolio in a manner which will be fully aligned with our interests. These conflicts may be particularly acute when an aircraft lessee in financial distress needs to return its aircraft or restructure its lease obligations. In these circumstances, the Servicer may be required to decide which assets to accept for return and may favor its or another managed entity's interest over our interests. Conflicts may also arise when aircraft are being marketed for re-lease or sale at a time when other aircraft owned or managed by the Servicer are similarly being marketed.

While the Servicing Agreement contains provisions to address potential conflicts of interest and also requires the Servicer to act with a prescribed standard of care, there is no guarantee that actions or inactions by the Servicer in connection with the management, marketing, or re-leasing of our aircraft will not adversely affect our cash flow, the value of the aircraft portfolio, or our ability to make timely payments on our senior unsecured securities. In the event of a conflict of interest, we have limited rights to withdraw from the Servicing Agreement and, therefore, we may not be able to terminate the Servicing Agreement. The Servicer may, in some circumstances, withdraw from acting as Servicer with respect to a particular asset and the matter in which the conflict of interest arose in accordance with the Servicing Agreement.

In addition, the Servicer may, in certain circumstances, be incentivized to seek to take actions (or refrain from actions) that preserve its fee income under the Servicing Agreement, which may benefit or prioritize the Servicer or its affiliates rather than us, our subsidiaries or our security holders.

***After the Merger, we no longer have orderbooks with the OEMs, which may impact our ability to manage our aircraft portfolio and, if we are unable to attain new and younger aircraft, it may increase our re-leasing risk and residual value risk.***

Prior to the Merger, we primarily acquired aircraft directly from aircraft manufacturers ("OEMs"), such as Airbus S.A.S ("Airbus") and The Boeing Company ("Boeing"). On April 8, 2026, in connection with the closing of the Merger, SMBC AC acquired the rights to our outstanding orderbook for undelivered aircraft, which was comprised of 206 aircraft as of March 31, 2026, with delivery dates ranging through 2031, pursuant to the Orderbook Acquisition. As a result of the Orderbook Acquisition, we will need to rely on acquisitions of aircraft through the sale and leaseback market, portfolio acquisitions, strategic M&A acquisitions and acquisition opportunities from SMBC's orderbook positions with OEMs. Young and liquid aircraft types are generally most in demand with our airline and investor customers. If we are unable to acquire additional aircraft, and in particular younger aircraft, it may adversely impact our ability to manage our portfolio metrics and may increase our re-leasing risk and residual value risk.

***Aircraft have limited economic useful lives and depreciate over time and we may be required to record an impairment charge or sell aircraft for a price less than its depreciated book value which may impact our financial results.***

We depreciate our aircraft for accounting purposes on a straight-line basis to the aircraft's residual value over its estimated useful life. Our management team evaluates on a quarterly basis the need to perform an impairment test whenever facts or circumstances indicate a potential impairment has occurred. An assessment is performed whenever events or changes in circumstances indicate that the carrying amount of an aircraft may not be recoverable from its expected future undiscounted net cash flow. We develop the assumptions used in the recoverability assessment based on management's knowledge of, and historical experience in, the aircraft leasing market and aviation industry, as well as from information received from third-party industry sources. Factors considered in developing estimates for this assessment include changes in contracted lease rates, economic conditions, technology, and airline demand for a particular aircraft type. Any of our assumptions and estimates may prove to be inaccurate, which could adversely impact forecasted cash flow. In the event that an aircraft does not meet the recoverability test, the aircraft will be recorded at fair value, resulting in an impairment charge. Deterioration of future lease rates and the residual values of our aircraft could result in impairment charges which may have a significant impact on our financial results. The occurrence of unexpected events or changing conditions may also result in impairment charges.

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If we were to record an impairment charge on aircraft, or if we were to dispose of aircraft for a price that is less than its depreciated book value on our balance sheet, it would reduce our total assets and stockholders' equity and increase our debt-to-equity ratio. For example, during the year ended December 31, 2022, we recognized a net loss from asset write-offs of our interest in owned and managed aircraft detained in Russia as a result of the Russia–Ukraine conflict totaling approximately $771.5 million. Depending on the size of the impairment, a reduction in our stockholders' equity may negatively impact our assigned credit rating from ratings agencies or our ability to comply with financial maintenance covenants in certain of our agreements governing our indebtedness. If we are unable to comply with financial maintenance covenants, it could result in an event of default under such agreements. For these reasons, our financial results may be impacted.

***We have concentrated customer exposure and economic, legal and political risks associated with certain lessees, including adverse events involving the regions in which certain lessees operate may have an adverse effect on our financial condition.***

Through our lessees and the countries in which they operate, we are exposed to the specific economic, legal and political conditions and associated risks of those jurisdictions. As of March 31, 2026, we had concentrated customer exposure with our top five lessees by net book value accounting in the aggregate for 29.2% of the total fleet as of March 31, 2026, and we also had approximately 7.6% and 0.8% of our aircraft by net book value on lease to lessees located in Taiwan and China, respectively. The concentration of our aircraft in the regions in which these lessees operate exposes us to economic, legal and political conditions in these regions, as well as changes in government relations between any of these regions and the U.S., including trade disputes and trade barriers. Our customer base is highly diversified, with an average customer concentration and average country concentration of approximately 1.1% and 2.1% of our flight equipment subject to operating leases by net book value as of March 31, 2026, respectively. Risks related to concentrated exposure include economic recessions, financial, public health and political emergencies, burdensome local regulations, trade disputes, and increased risks of requisition of our aircraft and risks of wide-ranging sanctions prohibiting us from leasing flight equipment in certain jurisdictions. An adverse economic, legal or political event in or related to these regions, or deterioration of government relations between the U.S. and these regions, could affect the ability of these lessees to meet their obligations to us, or expose us to various associated legal or political risks, which could have an adverse effect on our financial condition.

***We are dependent on the ability of our lessees to perform their payment and other obligations to us under our leases and their failure to do so may materially and adversely affect our financial results and cash flows.***

We generate substantially all of our revenue from leases of aircraft to commercial airlines and our financial performance is driven by the ability of our lessees to perform their payment and other obligations to us under our leases. The airline industry is cyclical, economically sensitive and highly competitive, and our lessees are affected by several factors over which we and they have limited control, including: air passenger demand; changes in fuel costs, interest rates, foreign currency, inflation, labor difficulties, including pilot shortages, wage negotiations or other labor actions; increases in other operating costs, such as increased insurance costs, general economic conditions and governmental regulation and associated fees affecting the air transportation business. In recent years, the airline industry has been affected by geopolitical events such as changes in national policy or the imposition of sanctions, including new sanctions, trade barriers or tariffs, as well as events leading to political or economic instability such as war, prolonged armed conflict and acts of terrorism; epidemics, pandemics and natural disasters; availability of financing, including availability of governmental support; airline financial health may also have an impact. Finally, our lessees may also be affected by aircraft accidents, in particular a loss if the aircraft is damaged or destroyed by an event for which insurance coverage is excluded or limited.

These factors could cause our lessees to incur higher costs and to generate lower revenues, which could adversely affect their ability to make lease payments. In addition, lease default levels will likely increase over time if economic conditions deteriorate.

In recent years, a majority of our lessees received lease deferrals or other accommodations from us during the COVID-19 pandemic, and we may agree to deferrals, restructurings and terminations in the ordinary course of our business in the future. If a lessee delays, reduces, or fails to make lease payments when due and if we are unable to agree on a lease payment deferral or lease restructuring and we elect to terminate the lease, we may not receive all or any payments still outstanding, and we may be unable to re-lease the aircraft promptly and at favorable rates, if at all. While deferrals generally shift the timing of payments to a later period, restructurings and terminations generally permanently reduce our lease revenue. If we perform a significant number of restructurings and terminations, the associated reduction in lease revenue could materially and adversely affect our financial results and cash flows.

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***Lessee defaults and reorganizations, bankruptcies or similar proceedings may result in lost revenues and additional costs.***

From time to time, an airline may seek reorganization or protection from creditors under its local laws or may go into liquidation. Some of our lessees have defaulted on their lease obligations or filed for bankruptcy or otherwise sought protection from creditors (collectively referred to as "bankruptcy"). As of the date of this filing, we had eight aircraft between two airlines which were subject to various forms of insolvency proceedings, including seven aircraft representing approximately 1% of our flight equipment subject to operating lease by net book value with Spirit Airlines. Based on historical rates of airline defaults and bankruptcies, we expect that we will experience additional lessee defaults and bankruptcies in the ordinary course of our business.

When a lessee defaults on its lease or files for bankruptcy, we typically incur significant additional costs, including legal and other expenses associated with court or other governmental proceedings. We could also incur substantial maintenance, refurbishment or repair costs if a defaulting lessee fails to pay such costs when necessary to put the aircraft in suitable condition for remarketing or sale. We may also incur storage costs associated with aircraft that we repossess and are unable to place immediately with another lessee, and we may not ultimately be able to re-lease the aircraft at a similar or favorable lease rate. It may also be necessary to pay off liens including fleet liens, taxes and other governmental charges on the aircraft to obtain clear possession and to remarket the aircraft effectively, including, in some cases, liens that the lessee might have incurred in connection with the operation of its other aircraft. We could also incur other costs in connection with the physical possession of the aircraft.

When a lessee fails to fulfill their obligations under the lease or enters into bankruptcy proceedings, the lessee may not make lease payments or may return aircraft to us before the lease expires. When a lessee files for bankruptcy with the intent of reorganizing its business, we may agree to adjust our lease terms, including reducing lease payments by a significant amount. Certain jurisdictions give rights to the Trustee in a bankruptcy to assume or reject the lease or to assign it to a third party, or entitle the lessee or another third party to retain possession of the aircraft without paying lease rentals or performing all or some of the obligations under the relevant lease. If one or more airline bankruptcies result in a larger number of aircraft being available for purchase or lease over a short period of time, aircraft values and aircraft lease rates may be depressed, and additional grounded aircraft and lower market values could adversely affect our ability to sell our aircraft or lease or remarket our aircraft at favorable rates or at all.

Our rights upon a lessee default will vary significantly depending upon the jurisdiction and the applicable law, including the need to obtain a court order for repossession of the aircraft and/or consents for deregistration or export of the aircraft. When a defaulting lessee is in bankruptcy additional limitations may apply. There can be no assurance that jurisdictions that have adopted the Cape Town Convention, which provides for uniformity and certainty for repossession of aircraft, will enforce it as written. In addition, certain of our lessees are owned, in whole or in part, by government-related entities, which could complicate our efforts to repossess our aircraft in that government's jurisdiction. Accordingly, we may be delayed in, or prevented from, enforcing certain of our rights under a lease and in remarketing the affected aircraft.

If we repossess an aircraft, we may not be able to export or deregister and profitably redeploy the aircraft in a timely manner or at all. Before an aviation authority will register an aircraft that has previously been registered in another country, it must receive confirmation that the aircraft has been deregistered by that country's aviation authority. In order to deregister an aircraft, the lessee must comply with applicable laws and regulations, and the relevant governmental authority must enforce these laws and regulations. For instance, where a lessee or other operator flies only domestic routes in the jurisdiction in which the aircraft is registered, repossession may be more difficult, especially if the jurisdiction permits the lessee or the other operator to resist deregistration. We may also incur significant costs in retrieving or recreating aircraft records required for registration of the aircraft, and in obtaining a certificate of airworthiness for an aircraft. Upon a lessee default, we may incur significant costs in connection with repossessing our aircraft and we may be delayed in repossessing our aircraft or may be unable to obtain possession of our aircraft.

As a result of the time and process involved with lessee defaults, reorganizations, bankruptcies or similar proceedings as described above, which can vary by airline and jurisdiction among other factors, we may experience lost revenues and additional costs.

***We may experience increased competition from other aircraft lessors which may impact our ability to execute our long-term strategy.***

The aircraft leasing industry is highly competitive. Some of our competitors have greater resources, lower capital costs, the ability to provide financial or maintenance services, or other inducements to potential lessees or buyers that we do not have, which could help them compete more effectively in certain markets we operate in. In addition, some competitors may have higher risk tolerances, lower investment return expectations or different risk or residual value assessments, which could allow them to consider a wider variety of investments, establish more relationships, bid more aggressively on aviation assets available for sale and offer lower

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lease rates or sale prices than we can. Our primary competitors are other aircraft leasing companies. The barriers to entry in the aircraft sale and leaseback market are comparatively low, and new entrants with private equity, hedge fund, or other funding sources appear from time to time.

Lease competition is driven by lease rates, aircraft availability dates, lease terms, relationships, aircraft condition, specifications and configuration of the aircraft necessary to meet the customer's needs. Competition in the used aircraft market is driven by price, the terms of the lease to which an aircraft is subject and the creditworthiness of the lessee, if any. Our inability to compete successfully with our competitors may impact our ability to execute our long-term strategy.

***Our lessees may fail to adequately insure our aircraft or fulfill their indemnity obligations, or we may not be able to adequately insure our aircraft, which may result in increased costs and liabilities.***

When an aircraft is on lease, we do not directly control its operation. Nevertheless, because we hold title to the aircraft, we could be sued or held strictly liable for losses resulting from the operation of such aircraft, or may be held liable for losses on other legal theories or claims may be made against us as the owner of an aircraft requiring us to expend resources in our defense. As a result, we separately purchase contingent liability insurance and contingent hull insurance on all aircraft in our owned fleet. While we believe our insurance is adequate both as to coverages and amounts based on industry standards in the current market, we cannot assure you that we are adequately insured against all risks and in all territories in which our aircraft operate. For example, Russia, Ukraine, Belarus and Crimea are now generally excluded from coverage in our contingent liability, contingent hull and contingent hull war insurance.

We also separately require our lessees to obtain specified levels of insurance customary in the aviation industry and indemnify us for, and insure against, liabilities arising out of the lessee's use and operation of the aircraft. Lessees are also required to maintain public liability, property damage and all risk hull and war risk insurance on the aircraft at agreed upon levels. Some lessees may fail to maintain adequate insurance coverage during a lease term, which, although in contravention of the lease terms, could necessitate our taking some corrective action such as terminating the lease or securing insurance for the aircraft. Moreover, even if our lessees retain specified levels of insurance, and indemnify us for, and insure against, liabilities arising out of their use and operation of the aircraft, we cannot assure you that we will not have any liability.

In addition, there are certain risks or liabilities that we or our lessees may face, for which insurers may be unwilling to provide coverage or the cost to obtain such coverage may be prohibitively expensive. For example, insurance coverage is unavailable for claims resulting from dirty bombs, bio-hazardous materials and electromagnetic pulsing. Following the Russia–Ukraine conflict, insurance coverage for claims resulting from acts of terrorism or war are subject to increased coverage limitations and increased premiums.

Even where we, or our lessees, have insurance, we or they may face difficulties in recovering losses under such policies. Disputes with insurers over the extent of coverage are common and insurance claims may take years to fully resolve and we, or our lessees, may not ultimately be successful in recovering losses under insurance policies. Pursuing insurance claims may also require us to incur legal, regulatory and other enforcement costs for which we may not be entitled to reimbursement. For example, we and certain of our subsidiaries submitted insurance claims to recover losses relating to aircraft detained in Russia, and certain of such claims remain outstanding and subject to litigation.

Accordingly, our or our lessees' insurance coverage could be insufficient to cover all claims that could be asserted against us arising from the operation of our aircraft. Inadequate insurance coverage or default by lessees in fulfilling their indemnification or insurance obligations will reduce the proceeds that would be received by us if we are sued and are required to make payments to claimants. Moreover, our and our lessees' insurance coverage is dependent on the financial condition of insurance companies, which might be unable or unwilling to pay claims.

Our or our lessees' failure to adequately insure our aircraft, or our lessees' failure to fulfill their indemnity obligations to us, could reduce insurance proceeds otherwise payable to us in certain cases and may result in increased costs and liabilities for our business.

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***A cyberattack or other interruption could lead to a material disruption of our information technology ("IT") systems or the IT systems of our third-party providers and the loss of information, which may hinder our ability to conduct our business effectively and may result in lost revenues and additional costs.***

We depend on our and our third-party provider's IT systems to conduct our operations. Such systems are subject to damage or interruption from power outages, computer and telecommunications failures, computer viruses, security breaches, ransomware attacks, social-engineering attacks (including through phishing attacks), malicious code (such as viruses and worms), malware (including as a result of advanced persistent threat intrusions), fire and natural disasters, and other similar threats. In particular, severe ransomware attacks are becoming increasingly prevalent and can lead to significant interruptions in our operations, loss of sensitive information and income, reputational harm, and diversion of funds. Extortion payments may alleviate the negative impact of a ransomware attack, but we may be unwilling or unable to make such payments due to applicable laws or regulations prohibiting such payments. Damage or interruption to such IT systems or our data may require significant investment to fix or replace, and we may suffer operational interruptions. Potential interruptions associated with the implementation of new or upgraded systems and technology or with maintenance of existing systems could also disrupt or reduce operational efficiency. Remote work by our employees also increases risks to our IT systems and data, as our employees utilize network connections, computers and devices outside our premises or network, including working at home and while traveling.

Parts of our business depend on the secure operation of our and our third-party providers' IT systems to manage, process, store, and transmit sensitive information, including our proprietary information and that of our customers, suppliers and employees and aircraft leasing information. We have experienced threats to our data and systems, including malware and computer virus attacks. A cyberattack could adversely impact our operations and lead to the loss of sensitive information, including our proprietary information and that of our customers, suppliers and employees. Such losses could result in material adverse consequences, such as competitive disadvantages, litigation, regulatory enforcement actions, lost revenues, reputational harm, interruptions in our operations, additional costs and liabilities. Applicable data privacy and security obligations require us to notify relevant stakeholders of certain cyberattacks or make disclosures to applicable regulatory bodies. Such disclosures are costly, and the disclosure or the failure to comply with such requirements could lead to adverse consequences. While we devote resources to maintaining and developing cyber-security measures, our resources and technical sophistication may be unable to prevent all types of cyberattacks. We take steps designed to detect and remediate vulnerabilities in our IT systems, but we may not be able to detect and remediate all vulnerabilities including on a timely basis. These vulnerabilities could be exploited and result in a cyberattack. Further, we may experience delays in developing and deploying remedial measures designed to address identified vulnerabilities. A cyberattack leading to a disruption of our IT systems or of those of our third-party providers may negatively affect our ability to conduct our business effectively and may

result in lost revenues and additional costs.

***We may encounter disputes, deadlock or other conflicts of interest with investment partners of entities in which we have minority interests and for which we serve as manager of the aircraft owned by the entities which may result in legal challenges, reputational harm or loss of fee income.***

We own non-controlling interests in entities that invest in aircraft and lease them to airlines or facilitate the sale and continued management of aircraft assets. Additionally, we may also acquire interests in similar entities controlled by third parties in order to take advantage of favorable financing opportunities or tax benefits, to share capital and/or operating risk, and/or to earn fleet management fees. Such interests involve significant risks that may not be present with other methods of ownership, including that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we may not realize a satisfactory return on our investment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the investment may divert management's attention from our core business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our investment partners could have investment goals that are not consistent with our investment objectives, including the timing, terms and strategies for any investments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our investment partners may fail to fund their share of required capital contributions or fulfill their other obligations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our investment partners may have competing interests in our markets that could create conflict of interest issues, particularly if aircraft owned by the applicable investment entity are being marketed for lease or sale at a time when we also have comparable aircraft available for lease or sale.

The agreements governing these entities typically provide the non-managing investment partner certain veto rights over various significant actions and the right to remove us as the manager under certain circumstances. If we were to be removed as the manager from a managed fleet portfolio, our reputation may be harmed and we would lose the benefit of future management fees. In addition, we might reach an impasse that could require us to dissolve the investment entity at a time and in a manner that could result in our

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losing some or all of our original investment in such entity, which may result in losses on our investment and potential legal challenges or reputational harm.

***We may be unable to realize the anticipated benefits of the Merger, and significant costs have been incurred in connection with the Merger.***

The success of the Merger will depend, in part, on our successful merger with the Sumisho Investors' overall business strategy and the realization of the anticipated benefits, including synergies and operational efficiencies, from the Merger. If we are unable to achieve these objectives within the anticipated time frame, or at all, the anticipated benefits may not be realized fully, or at all, or may take longer to realize than expected and our value may be harmed.

Failure to achieve anticipated benefits could result in delays, increased costs, decreases in the amount of expected revenues and diversion of management's time and energy, which could in turn materially and adversely affect our overall business, financial condition and operating results.

In addition, we have incurred significant costs in connection with the Merger, including a significant amount of transaction fees and other one-time costs related to the closing of the Merger, and additional unanticipated costs may yet be incurred.

**Macroeconomic and Global Risks Relating to our Business**

***Events outside of our control, including the threat or realization of epidemic diseases such as the COVID-19 pandemic, natural disasters, terrorist attacks, war or armed hostilities between countries or non-state actors, may adversely affect the demand for air travel, the financial condition of our lessees and of the aviation industry more broadly, or our operations and may ultimately impact our business.***

Air travel has historically been disrupted, sometimes severely, by the occurrence of events outside of our and our lessees control and these disruptions have adversely affected, and may in the future adversely affect, our business and financial condition. For example, the COVID-19 pandemic and related travel restrictions significantly impacted air travel and our results of operations through weaker demand for used aircraft, increased defaults, bankruptcies or reorganizations of our lessees, increased requests for lease deferrals, lower lease rates and delays in delivery of aircraft. Future epidemic diseases and other diseases, or the fear of such events could provoke responses that negatively affect passenger air travel.

Air travel has also been disrupted by the occurrence of natural disasters and other natural phenomena, such as extreme weather conditions, floods, fires, hurricanes, earthquakes, and volcanic eruptions. Disruptions due to natural disasters may become more frequent or severe.

Terrorist attacks, war or hostilities between countries or non-state actors, including the fear of such events may adversely affect our business and financial condition. For example, as a result of the Russia–Ukraine conflict, we recorded a net write-off of our interests in our owned and managed aircraft detained in Russia totaling approximately $771.5 million for the year ended December 31, 2022. In addition, the current conflict in Iran and related military actions throughout the Middle East have caused significant uncertainty, including closure of airspaces, cancellation of flights, increased fuel prices and shipping channel disruptions, particularly in the Strait of Hormuz. Continued hostilities or an escalation of hostilities may adversely impact our business and financial condition, and the aviation industry as a whole.

The occurrence of any of the events described above, or multiple such events, could cause our lessees to experience decreased passenger demand, to incur higher costs, or to generate lower revenues, which could adversely affect their ability to make lease payments to us or to obtain the types and amounts of insurance we require. This in turn could lead to lease restructurings and repossessions, impair our ability to remarket or otherwise dispose of aircraft on favorable terms or at all, or reduce the proceeds we receive for our aircraft in a disposition which may ultimately impact our business.

***Changes in fuel costs have negatively affected, and may continue to negatively affect, our lessees' ability to honor the terms of their leases and by extension the demand for our aircraft.***

Historically, fuel prices have fluctuated widely depending primarily on international market conditions, geopolitical and environmental events, and currency exchange rates. The cost of fuel represents a major expense to airlines that is not within their

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control. Significant increases in fuel costs or ineffective hedges can adversely affect their operating results. For example, the ongoing conflict with Iran has contributed to a substantial increase in global fuel costs, which has and may continue to adversely affect airline operating results.

Due to the competitive nature of the aviation industry, operators may be unable to pass on increases in fuel prices to their customers by increasing fares in a manner that fully offsets increased fuel costs. In addition, they may not be able to manage this risk by appropriately hedging their exposure to fuel price fluctuations. Airlines that do hedge their fuel costs can also be adversely affected by swift movements in fuel prices if such airlines are required as a result to post cash collateral under hedge agreements. As a result of the ongoing conflict with Iran and the resulting fuel price increases, certain of our lessees have incurred higher costs and generated lower revenues, which has affected and may continue to affect their ability to meet their obligations to us. Furthermore, geopolitical instability in the region may cause continued volatility and sustained elevated fuel prices for the foreseeable future. A sustained period of lower fuel costs may also adversely affect regional economies in which certain of our lessees operate or demand for fuel-efficient aircraft. Changes in fuel costs have also negatively affected, and may continue to negatively affect, our lessees and demand for our aircraft, and we have experienced, and may continue to experience, lost revenues and reduced net income as a result.

***Inflationary pressure may have a negative impact on our financial results, including by diminishing the value of our leases.***

After a sustained period of relatively low inflation rates, current rates of inflation are above long-term targets in the United States, the European Union, the United Kingdom and other countries. High rates of inflation (including as a result of geopolitical conflicts such as the current conflict in the Middle East) may have a number of adverse effects on our business. Inflation may increase the costs of goods, services and labor used in our operations, thereby increasing our expenses. In addition, inflation has also contributed to the increase in market values for aircraft including older generation aircraft. Because the majority of our income is derived from leases with fixed rates of payment, high rates of inflation will cause a greater decrease in the value of those payments than had the rates of inflation remained lower. In addition, because our leases are generally for multi-year periods, there has been a lag in our ability to adjust the lease rates for a particular aircraft for corresponding increases in interest rates. High rates of inflation may also lead policymakers to attempt to decrease demand or to adopt higher interest rates to combat inflationary pressures, which could increase our exposure to the risks detailed in "—*Cost of borrowing or interest rate increases may adversely affect our net income and our ability to compete in the marketplace. Decreases in interest rates may also adversely affect our business*." Our suppliers and lessees may also be subject to material adverse effects as a result of high rates of inflation, including as a result of the impact on their financial conditions, changes in demand patterns, price volatility, and supply chain disruption.

***Aircraft oversupply in the industry could decrease the value and lease rates of the aircraft in our fleet resulting in an impact to our earnings and cash flows.***

The aircraft leasing business has experienced periods of aircraft oversupply at various times in the past, including during the COVID-19 pandemic, as a result of the 2008 financial crisis and during the period following the September 11, 2001 terrorist attacks. The oversupply of a specific type of aircraft is likely to depress the lease rates for, and the value of, that type of aircraft, including upon sale. Further, over recent years, the airline industry has committed to a significant number of aircraft deliveries through order placements with manufacturers, and in response, aircraft manufacturers have generally raised their production output. Increases in production levels could result in an oversupply of relatively new aircraft if growth in airline traffic does not meet airline industry expectations. Additionally, if overall lending capacity to purchasers of aircraft does not increase in line with the increased aircraft production levels, the cost of lending or ability to obtain debt to finance aircraft purchases could be negatively affected. Oversupply may produce sharp and prolonged decreases in market lease rates and residual values and may affect our ability to remarket or sell at a profit, or at all, some of the aircraft in our fleet which would impact our earnings and cash flows.

***Export restrictions and tariffs may impact where we can place and deliver our aircraft and negatively impact our ability to execute on our long-term strategy.***

Existing export restrictions impact where we can place and deliver our aircraft. New export restrictions, including those implemented quickly or as a result of geopolitical events, may impact where we can place and deliver our aircraft or the ability of our lessees to operate our aircraft in certain jurisdictions, which may negatively impact our earnings and cash flows. For example, in early 2022, in connection with the ongoing conflict between Russia and Ukraine, the United States, European Union, United Kingdom and others imposed economic sanctions and export controls against certain industry sectors and parties in Russia. These sanctions include closures of airspace for aircraft operated by Russian airlines, bans on the leasing or sale of aircraft to Russian controlled entities, bans on the export and re-export of aircraft and aircraft components to Russian controlled entities or for use in Russia, and corresponding

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prohibitions on providing technical assistance, brokering services, insurance and reinsurance, as well as financing or financial assistance. While we terminated all of our leasing activities in Russia in March 2022, these sanctions and export controls continue to place restrictions on where and how certain of our lessees can operate aircraft they lease from us.

Tariffs can also impact our ability to place and deliver aircraft. Our leases are primarily structured as triple net leases, whereby the lessee is responsible for all operating costs including the costs associated with the importation of the aircraft. As a result, increased tariffs will result in a higher cost for imported aircraft that our lessees may not be willing to assume and which could adversely impact demand for aircraft, creating an oversupply of aircraft and potentially placing downward pressure on lease rates and aircraft market values. Tariffs could also increase our costs for aircraft components that we purchase. For example, in October 2019, the U.S. announced a 10% tariff on new aircraft imported from Europe, including Airbus aircraft which was raised to 15% in March 2020. In November 2020, the E.U. announced a 15% tariff on new aircraft imported into the E.U. from the U.S., including Boeing aircraft. In June 2021, the U.S. and E.U. temporarily suspended all retaliatory tariffs related to new aircraft imports for five years. In February 2025, the U.S. announced a 25% tariff on certain imports from Mexico and Canada, and 10% tariffs on imports from China and has swiftly imposed tariffs targeting imports from multiple countries. These actions resulted in retaliatory tariffs by Mexico, Canada and China, among others. The extent and duration of the tariffs are uncertain and the impact on our business depends on various factors, such as negotiations between the U.S., Canada and Mexico and other affected countries and exemptions or exclusions that may be granted. The imposition of these tariffs and the related uncertainty caused by the rapidity with which they are altered or halted and the impact of judicial review of the constitutionality of their imposition could have a material adverse effect on international trade, the United States' economy, the global economy and the commercial aviation industry. The presence of these tariffs—and the heightened potential for further escalation or retaliatory measures by affected nations—introduces additional uncertainty into global aircraft markets.

We cannot predict what further actions may ultimately be taken with respect to export controls, tariffs or trade relations between the U.S. and other countries. Accordingly, it is difficult to predict exactly how, and to what extent, such actions may impact our business, or the business of our lessees or aircraft manufacturers. Any unfavorable government policies on international trade, such as export controls, capital controls or tariffs, may increase the cost of aircraft components, delay production, impact the competitive position of certain aircraft manufacturers or prevent aircraft manufacturers from being able to sell aircraft in certain countries. In turn, this may impact where we can place and deliver our aircraft which may negatively impact our ability to execute on our long-term strategy.

***We are subject to the economic and political risks associated with doing business around the world, including in emerging markets, which may expose our business to heightened risks and negatively impact our earnings and cash flows.***

The emerging market countries in which we operate could face economic and geopolitical challenges and may experience significant fluctuations in gross domestic product, interest rates and currency exchange rates, as well as civil disturbances, government instability, nationalization and expropriation of private assets and the imposition of unexpected taxes or other charges by government authorities. This can result in economic and political instability which could negatively affect the ability of our lessees to meet their lease obligations leading to higher default rates, which could cause us to record asset write-offs. For example, during the year ended December 31, 2022, we recognized a net loss from asset-write-offs of our interests in owned and managed aircraft detained in Russia as a result of the Russia–Ukraine conflict totaling approximately $771.5 million. We also may experience challenges in leasing or re-leasing aircraft in markets experiencing economic instability. In addition, legal systems in markets in which we operate may have different liability standards, which could make it more difficult for us to enforce our legal rights in such countries, while legal systems in emerging market countries may be less developed and less predictable. Doing business in countries around the world, including in emerging markets, has exposed, and may continue to expose, us to heightened risks and negatively impact our earnings and cash flows.

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***The appreciation of the U.S. dollar could negatively impact our lessees' ability to honor the terms of their leases, which are generally denominated in U.S. dollars, and may result in lost revenues and reduced net income.***

Many of our lessees are exposed to currency risk due to the fact that they earn revenues in their local currencies while a significant portion of their liabilities and expenses are denominated in U.S. dollars, including their lease payments to us, as well as fuel expenses. For the three months ended March 31, 2026, more than 95% of our revenues were derived from customers who have their principal place of business outside the U.S. and most leases designated payment currency is U.S. dollars. The ability of our lessees to make lease payments to us in U.S. dollars may be adversely impacted in the event of an appreciating U.S. dollar. This is particularly true for non-U.S. airlines whose operations are primarily domestic. Shifts in foreign exchange rates can be significant, are difficult to predict, and can occur quickly. Should our lessees be unable to honor the terms of their leases due to the appreciation of the U.S. dollar, we may experience lost revenues and reduced net income.

**Regulatory, Tax and Legal Risks Relating to our Business**

***Income and other taxes could negatively affect our business and operating results due to our multi-jurisdictional operations.***

We operate in multiple jurisdictions, the income and other tax regimes of which may be unsettled and subject to change. If we are unable to execute our business in jurisdictions with favorable tax treatment, our operations may be subject to significant income and other taxes. Moreover, because our aircraft are operated by our lessees in multiple states and foreign jurisdictions, we may have nexus or taxable presence as a result of our aircraft landings in such states or foreign jurisdictions, which may result in our being subject to various foreign, state and local taxes in such jurisdictions. Further, any changes in tax laws in any of the jurisdictions in which we are subject to income or other taxes, such as increases in tax rates or limitations on our ability to deduct certain expenses from taxable income, such as depreciation expense and interest expense, could materially affect our tax obligations and effective tax rate. To the extent any such changes occur within the United States, whether under U.S. federal, state or local tax law, we may be disproportionately impacted as compared to our competitor aircraft lessors. For example, certain provisions of the Tax Cuts and Jobs Act that phased into effect in 2022 limit our ability to deduct interest expense from taxable income in future financial statements. Also, the Inflation Reduction Act of 2022 added, among other things, a 15% minimum tax on the adjusted financial statement income of certain large corporations, which was subsequently refined in 2025 as a result of guidance issued by the U.S. Internal Revenue Service ("IRS") and the U.S. Department of the Treasury. Further, our tax obligations and effective tax rate could increase as a result of international tax developments, including the implementation of the base erosion and profit shifting project that was led by the Organization for Economic Cooperation and Development ("OECD"), a coalition of member countries. The OECD recommended changes to numerous long-standing tax principles, including the implementation of a minimum global effective tax rate of 15%. A number of countries in which we conduct business have enacted, or are in the process of enacting, core elements of these rules. Conversely, other countries such as the United States have taken action against integrating these rules, with the Trump Administration issuing an executive order on January 20, 2025 declaring that the OECD/G20 inclusive framework on Base Erosion and Profit Shifting had no force or effect in the U.S. absent congressional action, and directing the U.S. Department of the Treasury to (i) investigate whether any non-U.S. countries are not in compliance with any U.S. tax treaty or have implemented or are likely to implement tax rules that are extraterritorial or disproportionately affect U.S. companies and (ii) develop options for "protective measures" in response to any such noncompliance or tax rules. On June 28, 2025, the United States and the rest of G7 countries announced a Side by Side ("SbS") agreement that would, in principle, exclude U.S. parented groups from certain taxes under Pillar Two and address certain risks of base erosion and profit shifting, with the OECD publishing administrative guidance with respect to this on January 5, 2026 (the "Administrative Guidance"). While the Administrative Guidance has approved the U.S. tax system as a "Qualified SbS Jurisdiction" (such that, for fiscal years commencing on or after January 1, 2026, U.S.-headquartered multinational enterprises may elect for the SbS safe harbor, which effectively deems the top-up tax for a jurisdiction to be zero for the purposes of the "income inclusion rules" and "under taxed profits rules"), we cannot predict whether or when such agreement will be brought into force, and whether the United States will adopt any other protective measures, including with respect to any taxes imposed under Pillar One, or whether or how any non-U.S. countries may change their tax laws, including with respect to Pillar One or Pillar Two, in response to the executive order, the agreement in principle (including the Administrative Guidance) described above, or otherwise. We continue to monitor developments and evaluate the impacts of these new rules (such as the One Big Beautiful Bill Act, which was signed into law on July 4, 2025), including on our effective tax rates and our eligibility to qualify for transition and safe harbor rules. It is possible that these changes, or other tax law changes or interpretations, could increase our compliance costs or future tax liabilities, or otherwise adversely affect our financial results.

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***Environmental regulations, fees, taxes and reporting, and other concerns may negatively affect demand for our aircraft, reduce travel and ultimately impact the operating results of our customers.***

The airline industry is subject to increasingly stringent and evolving federal, state and local environmental laws, regulations, fees, taxes and reporting of air emissions, water surface and subsurface discharges, safe drinking water, aircraft noise, the management of hazardous substances, oils and waste materials and other regulations affecting aircraft operations. Governmental regulations and reporting regarding aircraft and engine noise and emissions levels apply based on where the relevant aircraft is registered and operated. These regulations, as well as the potential for new and more stringent regulations, could limit the economic life of aircraft and engines, reduce their value, limit our ability to lease or sell the non-compliant aircraft and engines or, if engine modifications are permitted, require us to make significant additional investments in the aircraft and engines to make them compliant. Further, compliance with current or future regulations, fees, taxes and reporting imposed to address environmental concerns could cause our lessees to incur higher costs and to generate lower revenues, which could adversely affect their ability to make lease payments to us.

The airline industry has come under scrutiny by the press, public and investors regarding environmental impacts of air travel. If such scrutiny results in reduced air travel, it may negatively affect demand for our aircraft, lessees' ability to make lease payments and reduce the value we receive for our aircraft upon sale. In addition, increased focus on the environmental impact of air travel has led to the emergence of numerous sustainability initiatives, including the development of sustainable aviation fuel, and electric and hydrogen powered aircraft. While these sustainability initiatives are in the early stages of development, if alternative aircraft technology develops to the point of commercial viability and become widely accepted, we could be required to incur increased costs and significant capital investments to transition to such technology.

***Climate change may have a long-term impact on our business.***

There are inherent climate-related risks wherever our business is conducted. Changes in market dynamics, stakeholder expectations, local, national and international climate change policies, could disrupt our business and operations. Various jurisdictions have announced sustainability initiatives to reduce carbon emissions, explore sustainable aviation fuels, require tracking and disclosure of emissions metrics, or the establishment of sustainability measures and targets. Climate and environmental regulations may impact the types of aircraft we target for investment and the demand for certain aircraft and engine types, and could result in a significant increase in our aircraft costs and may adversely affect future revenue, cash flows and financial performance. Failure to address climate regulations and policies could result in greater exposure to economic and other risks.

***Risks and requirements related to transacting business in foreign countries may result in increased liabilities including penalties and fines as well as reputational harm.***

Our international operations expose us to trade and economic sanctions and other restrictions imposed by the United States or other governments or organizations. The U.S. Departments of Justice, Commerce, State and Treasury, and other foreign authorities have a broad range of civil and criminal penalties they may seek to impose against corporations and individuals for violations of economic sanctions laws, export control laws, the Foreign Corrupt Practices Act ("FCPA") and other federal statutes and regulations, including the International Traffic in Arms Regulations and those established by the Office of Foreign Assets Control ("OFAC"), laws and regulations applicable to our operations in Ireland and Hong Kong and, increasingly, similar or more restrictive foreign laws, rules and regulations, including the U.K. Bribery Act ("UKBA"), which may also apply to us. Under these laws and regulations, the government may require export licenses, or impose restrictions that would require modifications to business practices, including cessation of business activities in sanctioned countries or with sanctioned persons or entities, and modifications to compliance programs, which may increase compliance costs. Failure to implement changes may subject us to fines, penalties and other sanctions.

We have training programs in place for our employees with respect to FCPA, OFAC, UKBA, export controls and similar laws and regulations, but we cannot assure that our employees, consultants, sales agents, or associates will not engage in unlawful conduct for which we may be held responsible or that our business partners, including our lessees will not engage in conduct that could affect their ability to perform their contractual obligations and result in our being held liable for such conduct. Violation of laws or regulations may result in increased liabilities including penalties and fines as well as reputational harm.

We terminated our leasing activities and wrote-off our interests in owned and managed aircraft detained in Russia during 2022 due to the Russian–Ukraine conflict and related sanctions, which may continue to impact our business, the business of our airline customers and global macroeconomic conditions. Some of our customers are impacted by closures of Russian and Ukrainian airspace, instability in fuel and energy prices, and disruptions of the global supply chain. Ongoing airspace closures require certain of our airline

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customers to re-route flights to avoid such airspace which has resulted in increased flight times and fuel costs. In addition, escalating tensions involving Iran and other countries in the Middle East could result in broader regional conflict, airspace disruptions or other disruptions. Any of these factors could cause our lessees to incur higher costs and to generate lower revenues which could adversely affect their ability to make lease payments which in turn could impact our financial results.

***A lessee's failure to obtain required licenses, consents and approvals could negatively affect our ability to remarket or sell aircraft.***

Airlines are subject to extensive regulation in the jurisdictions in which they are registered and operate. As a result, we expect some of our leases will require licenses, consents or approvals, including consents from governmental or regulatory authorities for certain payments under our leases and for the import, export or deregistration of aircraft. Subsequent changes in applicable law or administrative practice may require additional licenses and consents or result in revocation of prior licenses and consents. Furthermore, consents needed in connection with our repossession or sale of an aircraft may be withheld. Any of these events could negatively affect our ability to remarket or sell aircraft.

***Data privacy risks, including evolving laws, regulations, and other obligations and compliance efforts, may result in business interruption and increased costs and liabilities.***

Laws, regulations and other obligations (including applicable guidance, industry standards, external and internal privacy and security policies and contractual requirements) relating to personal data constantly evolve, as federal, state and foreign governments continue to adopt new measures addressing data privacy and processing (including collection, storage, transfer, disposal, disclosure, security and use) of personal data. The interpretation and application of many existing privacy and data protection laws and regulations in the U.S. (including the California Consumer Privacy Act, as amended ("CCPA")), Europe (including the E.U.'s General Data Protection Regulation) and elsewhere impose stringent obligations on processing personal data and impose significant fines. For example, the CCPA, which applies to business representative and other types of personal data of California residents, provides for civil penalties and allows private litigants affected by certain data breaches to recover significant statutory damages. Such laws and regulations may be interpreted or applied in a manner that is inconsistent with each other and may complicate our existing data management practices. Evolving compliance and operational requirements under the privacy laws of the jurisdictions in which we operate, regulations, and other obligations have become increasingly burdensome and complex. We are also bound by contractual obligations related to data privacy and security, and our efforts to comply with such obligations may not be successful. Privacy-related claims or lawsuits initiated by governmental bodies, customers or other third parties (including class action claims), costly enforcement actions (including regulatory proceedings, investigations, fines, penalties, audits, and inspections), or mass arbitration demands, penalties and fines, require us to change our business practices or cause business interruptions and may lead to administrative, civil, or criminal liability.

***Judgments obtained in a court of the United States may not be enforceable in Ireland and it may be difficult to serve process.***

Certain of our directors and officers are non-residents of the United States. All or a substantial portion of the assets of such non-resident persons are located outside of the United States. As a result, it may not be possible for investors to effect service of process within the United States upon such persons, or to enforce against them in U.S. courts judgments obtained in such courts predicated upon the civil liability provisions of the federal securities laws of the United States.

The United States currently does not have a treaty with Ireland providing for the reciprocal recognition and enforcement of judgments in civil and commercial matters. Therefore, a final judgment for the payment of money rendered by any U.S. federal or state court based on civil liability, whether or not based solely on U.S. federal or state securities laws, would not automatically be enforceable in Ireland. A judgment of the U.S. courts will be enforced by the Irish courts if the following general requirements are met: (i) the procedural rules of the U.S. court must have been observed and the U.S. court must have had jurisdiction in relation to the particular defendant according to Irish conflict of law rules (the submission to jurisdiction by the defendant would satisfy this rule); and (ii) the judgment must be final and conclusive and the decree must be final and unalterable in the court which pronounces it. A judgment can be final and conclusive even if it is subject to appeal or even if an appeal is pending. Where however, the effect of lodging an appeal under the applicable law is to stay execution of the judgment, it is possible that, in the meantime, the judgment should not be actionable in Ireland. It remains to be determined whether final judgment given in default of appearance is final and conclusive. However, the Irish courts may refuse to enforce a judgment of the U.S. courts which meets the above requirements for one of the following reasons: (a) if the judgment is not for a definite sum of money; (b) if the judgment was obtained by fraud; (c) if the enforcement of the judgment in Ireland would be contrary to natural or constitutional justice; (d) if the judgment is contrary to Irish public policy or involves certain United States laws which will not be enforced in Ireland; (e) the judgment is inconsistent with a

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judgment of the Irish courts in respect of the same matter; or (f) if jurisdiction cannot be obtained by the Irish courts over the judgment debtors in the enforcement proceedings by personal service in Ireland or outside Ireland under Order 11 of the Superior Courts Rules.

**ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS**

None.

**ITEM 3. DEFAULTS UPON SENIOR SECURITIES**

None.

**ITEM 4. MINE SAFETY DISCLOSURES**

None.

**ITEM 5. OTHER INFORMATION**

None.

**Rule 10b5-1 Trading Arrangements and Non-Rule 10b5-1 Trading Arrangements**

None.

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**ITEM 6. EXHIBITS**

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| | | **Incorporated by Reference** | **Incorporated by Reference** | **Incorporated by Reference** | **Incorporated by Reference** |
|<br>**Exhibit Number** |<br>**Exhibit Description** | **Form** | **File No.** | **Exhibit** | **Filing Date** |
| 2.1 | <u>[Agreement and Plan of Merger, dated as of September 1, 2025, by and among Air Lease Corporation, Sumisho Air Lease Corporation Designated Activity Company (formerly known as Gladiatora Designated Activity Company) and Takeoff Merger Sub Inc.](https://www.sec.gov/Archives/edgar/data/1487712/000119312525193497/d13045dex21.htm)</u> | 8-K | 001-35121 | 2.1 | September 2, 2025 |
| 3.1 | <u>[Amended and Restated Certificate of Incorporation of Sumisho Air Lease Corporation](https://www.sec.gov/Archives/edgar/data/1487712/000119312526147571/d139383dex31.htm)</u> | 8-K | 001-35121 | 3.1 | April 8, 2026 |
| 3.2 | <u>[Fifth Amended and Restated Bylaws of Sumisho Air Lease Corporation](https://www.sec.gov/Archives/edgar/data/1487712/000119312526147571/d139383dex32.htm)</u> | 8-K | 001-35121 | 3.2 | April 8, 2026 |
| 4.1 | <u>[Indenture, dated as of March 24, 2026, by and between Takeoff Merger Sub Inc. and Computershare Trust Company, N.A.](https://www.sec.gov/Archives/edgar/data/1487712/000119312526147571/d139383dex41.htm)</u> | 8-K | 001-35121 | 4.1 | April 8, 2026 |
| 4.2 | <u>[Registration Rights Agreement, dated as of March 24, 2026, by and among Takeoff Merger Sub Inc., SMBC Nikko Securities America, Inc., Citigroup Global Markets Inc. and Goldman Sachs & Co. LLC.](https://www.sec.gov/Archives/edgar/data/1487712/000119312526147571/d139383dex42.htm)</u> | 8-K | 001-35121 | 4.2 | April 8, 2026 |
| 4.3 | <u>[Form of Rule 144A Initial Note (2028 Notes) (included in Exhibit 4.1)](https://www.sec.gov/Archives/edgar/data/1487712/000119312526147571/d139383dex41.htm)</u> | 8-K | 001-35121 | 4.1 | April 8, 2026 |
| 4.4 | <u>[Form of Regulation S Initial Note (2028 Notes) (included in Exhibit 4.1)](https://www.sec.gov/Archives/edgar/data/1487712/000119312526147571/d139383dex41.htm)</u> | 8-K | 001-35121 | 4.1 | April 8, 2026 |
| 4.5 | <u>[Form of Rule 144A Initial Note (2029 Notes) (included in Exhibit 4.1)](https://www.sec.gov/Archives/edgar/data/1487712/000119312526147571/d139383dex41.htm)</u> | 8-K | 001-35121 | 4.1 | April 8, 2026 |
| 4.6 | <u>[Form of Regulation S Initial Note (2029 Notes) (included in Exhibit 4.1)](https://www.sec.gov/Archives/edgar/data/1487712/000119312526147571/d139383dex41.htm)</u> | 8-K | 001-35121 | 4.1 | April 8, 2026 |
| 4.7 | <u>[Form of Rule 144A Initial Note (2031 Notes) (included in Exhibit 4.1)](https://www.sec.gov/Archives/edgar/data/1487712/000119312526147571/d139383dex41.htm)</u> | 8-K | 001-35121 | 4.1 | April 8, 2026 |
| 4.8 | <u>[Form of Regulation S Initial Note (2031 Notes) (included in Exhibit 4.1)](https://www.sec.gov/Archives/edgar/data/1487712/000119312526147571/d139383dex41.htm)</u> | 8-K | 001-35121 | 4.1 | April 8, 2026 |
| 4.9 | <u>[Form of Rule 144A Initial Note (2036 Notes) (included in Exhibit 4.1)](https://www.sec.gov/Archives/edgar/data/1487712/000119312526147571/d139383dex41.htm)</u> | 8-K | 001-35121 | 4.1 | April 8, 2026 |
| 4.10 | <u>[Form of Regulation S Initial Note (2036 Notes) (included in Exhibit 4.1)](https://www.sec.gov/Archives/edgar/data/1487712/000119312526147571/d139383dex41.htm)</u> | 8-K | 001-35121 | 4.1 | April 8, 2026 |
| 4.11 | Certain instruments defining the rights of holders of long-term debt of Air Lease Corporation and all of its subsidiaries for which consolidated or unconsolidated financial statements are required to be filed are being omitted pursuant to paragraph (b)(4)(iii)(A) of Item 601 of Regulation S-K. Sumisho Air Lease Corporation agrees to furnish a copy of any such instrument to the Securities and Exchange Commission upon request. |  |  |  |  |
| 10.1† | <u>[Servicing Agreement, dated as of April 8, 2026, by and among SMBC Aviation Capital Limited, Sumisho Air Lease Corporation DAC and Sumisho Air Lease Corporation](ex101-q126.htm)</u> |  |  |  | Filed herewith |
| 10.2§ | <u>[Form of Grant Notice and Standard Terms and Conditions for 2023 Equity Incentive Plan Cash Awards (Time-Based Vesting).](ex102-q126.htm)</u> |  |  |  | Filed herewith |
| 10.3§ | <u>[Sumisho Air Lease Corporation Annual 2026 Cash Bonus Pla](https://www.sec.gov/Archives/edgar/data/1487712/000119312526161515/d847321dex101.htm)[n.](https://www.sec.gov/Archives/edgar/data/1487712/000119312526161515/d847321dex101.htm)</u> | 8-K | 001-35121 | 10.1 | April 17, 2026 |
| 10.4† | <u>[First Amendment to Term Loan Credit Agreement, dated as of March 25, 2026, by and among Sumisho Air Lease Finance Corporation, Takeoff Merger Sub Inc., Sumitomo Mitsui Banking Corporation and the lenders party thereto.](https://www.sec.gov/Archives/edgar/data/1487712/000119312526147571/d139383dex103.htm)</u> | 8-K | 001-35121 | 10.3 | April 8, 2026 |

---

------

**<u>[**Table of Contents**](#i2e83ec058a6942c6b0c099bda180c4b5_7)</u>**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **Incorporated by Reference** | **Incorporated by Reference** | **Incorporated by Reference** | **Incorporated by Reference** |
|<br>**Exhibit Number** |<br>**Exhibit Description** | **Form** | **File No.** | **Exhibit** | **Filing Date** |
| 10.5† | <u>[First Amendment to Revolving Credit Agreement, dated as of March 25, 2026, by and among Sumisho Air Lease Finance Corporation, Takeoff Merger Sub Inc., Sumitomo Mitsui Banking Corporation and the lenders party thereto.](https://www.sec.gov/Archives/edgar/data/1487712/000119312526147571/d139383dex104.htm)</u> | 8-K | 001-35121 | 10.4 | April 8, 2026 |
| 10.6 | <u>[Form Indemnification Agreement](https://www.sec.gov/Archives/edgar/data/1487712/000119312526147571/d139383dex105.htm)</u> | 8-K | 001-35121 | 10.5 | April 8, 2026 |
| 31.1 | <u>[Certification of the Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](ex-311xq126.htm)</u> |  |  |  | Filed herewith |
| 31.2 | <u>[Certification of the Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](ex-312xq126.htm)</u> |  |  |  | Filed herewith |
| 32.1 | <u>[Certification of the Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](ex-321xq126.htm)</u> |  |  |  | Furnished herewith |
| 32.2 | <u>[Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](ex-322xq126.htm)</u> |  |  |  | Furnished herewith |
| 101.INS | Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document) |  |  |  |  |
| 101.SCH | Inline XBRL Taxonomy Extension Schema with Embedded Linkbase Documents |  |  |  |  |
| 104 | The cover page from Sumisho Air Lease Corporation's Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, formatted in Inline XBRL and contained in Exhibit 101 |  |  |  |  |

---

† &nbsp;&nbsp;&nbsp;&nbsp;The Company has omitted portions of the referenced exhibit pursuant to Item 601(b) of Regulation S-K because it (a) is not material and (b) is the type that the Company treats as private or confidential.

§&nbsp;&nbsp;&nbsp;&nbsp;Management contract or compensatory plan or arrangement.

------

**<u>[**Table of Contents**](#i2e83ec058a6942c6b0c099bda180c4b5_7)</u>**

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

---

| | |
|:---|:---|
| | SUMISHO AIR LEASE CORPORATION |
| May 7, 2026 | */s/ Noriyuki Hiruta* |
|  | Noriyuki Hiruta |
|  | Chief Executive Officer, President and Secretary |
|  | *(Principal Executive Officer)* |
| May 7, 2026 | */s/ Sabrina Lemmens* |
|  | Sabrina Lemmens |
|  | Chief Financial Officer |
|  | *(Principal Financial Officer and Principal Accounting Officer)* |

---

## Exhibit 10.1

**Exhibit 10.1** 

**Certain identified information in this Exhibit has been excluded because it is both not material and is the type that the registrant treats as private or confidential.** 

**CONFIDENTIAL** 

**Execution Version** 

Dated as of April 8, 2026

SMBC AVIATION CAPITAL LIMITED

(as Servicer)

AND

SUMISHO AIR LEASE CORPORATION DAC

(as Company)

AND

SUMISHO AIR LEASE CORPORATION

(as Guarantor)

SERVICING AGREEMENT

- i -

------

**TABLE OF CONTENTS** 

---

| | | |
|:---|:---|:---|
|  |  | **Page** |
|  Article I Definitions | Article I Definitions | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 1.01. | **Definitions** | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 1.02. | **Construction and Usage** | 1 |
|  Article II Appointment; Services | Article II Appointment; Services | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.01. | **Appointment** | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.02. | **Aircraft Asset Services** | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.03. | **Excluded Assets** | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.04. | **Limitations** | 3 |
|  Article III Standard of Care; Conflicts of Interest; Standard of Liability | Article III Standard of Care; Conflicts of Interest; Standard of Liability | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.01. | **Standard of Care** | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.02. | **Conflicts of Interest** | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.03. | **Standard of Liability** | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.04. | **Waiver of Implied Standard** | 8 |
|  Article IV Representations and Warranties | Article IV Representations and Warranties | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.01. | **Company Representations** | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.02. | **Servicer Representations** | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.03. | **Guarantor Representations** | 12 |
|  Article V Reporting, Communication and Coordination | Article V Reporting, Communication and Coordination | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.01. | **Cooperation** | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.02. | **Acquisition-related Services in respect of Excluded Assets** | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.03. | **Timely Response and Communication** | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.04. | **Quarterly Meetings** | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.05. | **Lessee and Other Third Party Communications** | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.06. | **Access to Company Group Information** | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.07. | **Quarterly Meeting Directions** | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.08. | **Reporting Framework** | 15 |
|  Article VI Servicer Undertakings | Article VI Servicer Undertakings | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.01. | **Access** | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.02. | **Compliance with Law** | 17 |

---

- ii -

------

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.03. | **Commingling** | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.04. | **Corporate Formalities** | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.05. | **Separateness Covenants** | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.06. | **Operating Guidelines** | 17 |
|  Article VII Undertakings of the Company | Article VII Undertakings of the Company | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.01. | **Related Document Amendments** | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.02. | **Ratification** | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.03. | **Further Assurances** | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.04. | **Transfer of Funds** | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.05. | **Performance of Obligations** | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.06. | **Commingling** | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.07. | **Corporate Formalities** | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.08. | **Separateness Covenants** | 19 |
|  Article VIII Company Group Control | Article VIII Company Group Control | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.01. | **Budget** | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.02. | **Transaction Approval Requirements** | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.03. | **Other Transactions** | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.04. | **Directions** | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.05. | **Company Retained Activities** | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.06. | **Additional Leasing Parameters** | 21 |
|  Article IX Servicing Fees; Expenses; Taxes; Priority of Servicing Fees | Article IX Servicing Fees; Expenses; Taxes; Priority of Servicing Fees | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.01. | **Servicing Fees** | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.02. | **Rent Fees** | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.03. | **Sales Fee** | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.04. | **Acquisition Fee** | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.05. | **Expenses** | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.06. | **Taxes.** | 22 |
|  Article X Term; Right to Terminate; Resignation; Consequences of Expiration, Termination, Resignation or Removal; Survival | Article X Term; Right to Terminate; Resignation; Consequences of Expiration, Termination, Resignation or Removal; Survival | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.01. | **Term** | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.02. | **Right to Terminate** | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.03. | **Partial Termination** | 26 |

---

- iii -

------

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.04. | **Consequences of Expiration, Termination, Resignation or Removal** | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.05. | **Survival** | 27 |
|  Article XI Indemnification | Article XI Indemnification | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.01. | **Indemnity** | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.02. | **Waiver of Certain Claims; Special Indemnity** | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.03. | **Continuing Liability under Other Agreements** | 28 |
|  Article XII Miscellaneous | Article XII Miscellaneous | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 12.01. | **Assignment and Delegation** | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 12.02. | **Documentary Conventions** | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 12.03. | **Power of Attorney** | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 12.04. | **Certain Information** | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 12.05. | **Guarantee** | 30 |

---

**Schedules** 

---

| | |
|:---|:---|
| Schedule 2.02(a) | Aircraft Assets Services |
| Schedule 4.01(a) | Aircraft Assets |
| Schedule 4.01(c) | Bank Accounts |
| Schedule 4.01(d) | List of Persons within the Company Group and Jurisdictions |
| Schedule 5.08 | Reporting Framework |
| Schedule 8.05 | Company Retained Activities |
| Schedule 9.01(b) | Form of Servicer Invoice |
| Schedule 9.05(a) | Overhead Expenses |
| Schedule 9.05(b) | Services Expenses |
| Schedule 12.03 | Power of Attorney |

---

**Annexes** 

---

| | |
|:---|:---|
| Annex 1 | Insurance Guidelines |
| Annex 2 | Concentration Limits |
| Annex 3 | Operating Guidelines |

---

**Appendices** 

Appendix A Construction and Usage <br> Appendix B Core Lease Provisions

- iv -

------

SERVICING AGREEMENT dated as of April 8, 2026 between SMBC AVIATION CAPITAL LIMITED, a private company limited by shares incorporated under the laws of Ireland, in its capacity as servicer hereunder (the "**Servicer**") and SUMISHO AIR LEASE CORPORATION DAC (the "**Company**") and SUMISHO AIR LEASE CORPORATION as guarantor of the Company's obligations (the "**Guarantor**"). Each of the Servicer and the Company may be individually referred to herein as a "**Party**" and collectively as the "**Parties**."

For the consideration set forth herein and other good and valuable consideration, the receipt of which is hereby acknowledged, the Servicer and the Company agree as follows:

**ARTICLE I** 

**DEFINITIONS** 

Section 1.01. **Definitions**. Unless otherwise defined herein, all capitalized terms used but not defined herein have the meanings assigned to such terms in Appendix A.

Section 1.02. **Construction and Usage**. The conventions of construction and usage set forth in Appendix A are incorporated by reference herein.

**ARTICLE II** 

**APPOINTMENT; SERVICES** 

Section 2.01. **Appointment**. (a) The Company on behalf of itself and each other member of the Company Group hereby appoints the Servicer as the exclusive provider of the Services to the Company in respect of the Aircraft Assets on the terms and subject to the conditions and limitations set forth in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Servicer hereby accepts its appointment and agrees to perform the Services on the terms and subject to the conditions set forth in this Agreement.

Section 2.02. **Aircraft Asset Services**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Services to be provided by the Servicer in respect of the Aircraft Assets are set forth in Schedule 2.02(a) (the "**Services**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) With respect to any Aircraft Asset, for the duration of the Term or, if earlier, until the date that this Agreement has been terminated with respect to that Aircraft Asset in accordance with the terms of this Agreement: the Company shall not, and shall not permit any other Person within the Company Group or any agent thereof to, enter into, or cause or permit any Person (other than the Servicer or any Person acting for or on its behalf) to enter into on its behalf, (A) any transaction for the Lease, purchase or sale of any Aircraft Asset or (B) any agreement for the performance by any Person other than the Servicer of some or all of the Services (provided that this shall not apply to any agreement to provide Services exclusively amongst members of the Company Group where such Services are ultimately performed by the Servicer pursuant to this Agreement) or (C) any agreement for the performance of any services with respect to any Aircraft

------

Asset, in each case, without the prior written consent of the Servicer (such consent not to be unreasonably withheld or delayed where such services pertain to Company Retained Activities); and the Company agrees not to (and not to permit any other Person within the Company Group to) enter into any agency, finders' or brokerage agreements (whether with an Affiliate of any Person within the Company Group or otherwise) relating to the procurement of Lessees or purchasers for the Aircraft Assets (or agreements similar thereto) without the prior written consent of the Servicer, consistent with the Servicer's role as the exclusive provider of Services pursuant to Section 2.01.

(each a **Restricted Action)**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The provision of Section 2.02(b) above shall not preclude, and the Company and the Company Group shall be permitted to take Restricted Actions in the event that the Company or the Company Group reasonably believes that it shall be necessary for there to be a Restricted Action under circumstances where:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Company has issued a Termination Notice pursuant to Section 10.02(c);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Term has expired; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in accordance with Section 10.01, a Party has elected not to renew the terms of this Agreement, whereupon, the Company and the Company Group shall be entitled to enter into arrangements (interim or otherwise) for the provision of the Services by a Replacement Servicer, **provided that** any appointment of such Replacement Servicer shall not take effect prior to the expiry of then applicable Term.

Section 2.03. **Excluded Assets**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In no event shall the Servicer have any right, nor any obligation, under this Agreement in respect of any Excluded Asset, and each of the Company and each other Person in the Company Group shall be responsible for servicing all Excluded Assets; **provided, however, that** no Person within the Company Group shall engage any Competitor to provide any services for or on behalf of the Company Group in respect of any Excluded Assets without the prior written consent of the Servicer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If any Aircraft or Orphan Engine shall become an Excluded Asset at any time, then the rights and obligations of the Servicer under this Agreement with respect to such Aircraft or Orphan Engine shall cease with effect from the date on which such Aircraft or Orphan Engine becomes an Excluded Asset, without prejudice to the Company's obligations under Section 10.04(b), **provided that**, where an Aircraft or Orphan Engine shall become an Excluded Asset solely by reason of being Leased to a U.S. Airline, the Company and the Servicer may agree in writing to designate such Aircraft or Orphan Engine as an Aircraft Asset. Upon and with effect from the date of that joint written designation, the rights and obligations of the Servicer and the Company (respectively) under this Agreement with respect to such Aircraft or Orphan Engine shall continue (or recommence as the case may be).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If any Excluded Asset ceases to be Leased to a U.S. Airline, the Company and the Servicer may agree in writing to designate such Aircraft or Orphan Engine as an Aircraft Asset. Upon and with effect from the date of that joint written designation, the rights and obligations of the Servicer and the Company (respectively) under this Agreement with respect to such Aircraft or Orphan Engine shall commence (or recommence as the case may be).

------

Section 2.04. **Limitations**.(a) Notwithstanding any other provision of this Agreement, neither the Servicer nor any of its Affiliates shall assume any Indebtedness of any Person within the Company Group by virtue of the Parties' performance under this Agreement, nor shall any provision of this Agreement be construed so as to imply that the Parties intended any such assumption.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding any other provision of this Agreement, the Servicer shall not be required to perform any Service (or any other service) with respect to any Aircraft Asset or any Acquisition-Related Services, in each case, unless and until all Relevant Information (and in the case of documentation, all true and complete copies thereof which are considered reasonably required for the performance of the Services), have been delivered to, or are otherwise in the possession of (as confirmed by the Servicer), the Servicer (acting reasonably and provided that the foregoing shall not limit the Servicer obtaining from appropriate Persons such Relevant Information in accordance with the Standard of Care). Without prejudice to the foregoing, the Servicer shall not be required to perform any Services provided for in or contemplated by any Aircraft Assets Related Documents that have not been delivered to, or are not in the possession of, the Servicer. To the extent that the Servicer determines that this sub-section (b) applies, the Servicer shall, as soon as reasonably practicable upon reaching such determination, notify the Company in writing with reasonable detail of the information or documentation (as applicable) that the Servicer is aware is missing and the relevant Services that cannot be performed as a result thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding any other provision of this Agreement, the Servicer shall not be obligated, either initially or on a continuing basis, to provide any Person within the Company Group or any of its Representatives any confidential or proprietary information (as determined by the Servicer, acting reasonably) regarding the Servicer's or any of its Affiliates' business or the business or finances of any Person, other than information specifically regarding any Person within the Company Group, in respect of whose assets it provides the Services from time to time, or any of such Person's assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Servicer shall not be liable or accountable for (i) the failure by a Lessee, any seller, any purchaser or any other Person to perform any of its obligations under any Lease, purchase contract, sale contract or any other contract, including the payment of amounts payable under any Lease, any purchase contract, any sale contract or any other contract, (ii) the accuracy or completeness of any notices, reports or other communications (whether written or oral) made by any Lessee, any purchaser, any seller or any Person other than the Servicer (or a Subsidiary or controlled Affiliate of the Servicer) and shall be entitled to rely upon all such notices, reports and communications except to the extent that the Servicer has actual notice of any matter to the contrary (and without limiting the Servicer's obligations, if any, hereunder with respect to the collection, review, evaluation, monitoring or other Services relating to such notices, reports or communications, acting in accordance with the Standard of Care) or (iii) any loss, cost or liability to the extent it arises due to a failure by any Person within the Company Group to cooperate with the Servicer to enable the Servicer to provide the Services, unless, in each case, any losses that arise as a result thereof are finally adjudicated to have resulted directly from the Servicer's gross negligence or willful misconduct in respect of its application of the Standard of Care or the Conflicts Standard in respect of its performance of the Services.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Servicer shall be entitled to rely upon the instructions (or other actions) of any Company Designated Representative, any member of the Executive Management Team, the Company or any other Person within the Company Group, or any other Person that the Servicer reasonably believes to be authorized to act on behalf of the Company (or on behalf of any other Person within the Company Group), and shall not be liable to any Person within the Company Group for any act taken or omission to act in accordance with such instructions (or other actions).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Servicer may rely on any broker, law firm or other professional advisor appointed by the Servicer or the Company and shall not be liable for any claim by any Person within the Company Group or any other Person to the extent that it was acting in accordance with the Standard of Care in selecting and in relying upon the advice of such broker, law firm or other professional advisor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The relationship between the Servicer and the Company Group is an independent agency relationship, except in relation to any money erroneously received by the Servicer or any of its Affiliates into any of the Servicer's or any of its Affiliates' bank accounts on behalf of any Person within the Company Group, which the Servicer will hold in trust for such Person. Neither the Servicer nor any of its Representatives shall be under any fiduciary duty or other implied obligation or duty to any Person within the Company Group or to any Affiliate of such Person or any holder of any equity or debt loan or security issued by, or lender to, any Person within the Company Group, any Lessee or any other Person arising out of this Agreement, it being agreed that the rights and obligations of the Parties shall only be those expressly provided for in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Without prejudice to the Standard of Care, the Servicer shall (i) not be imputed with the knowledge of any of its employees other than its directors, officers and those employees, in each case, involved in the performance of the Services relevant to such knowledge or otherwise responsible for the day-to-day administration of this Agreement, and (ii) be deemed to have actual notice of any matter only upon the receipt of written notice describing any such matter in reasonable detail or to the extent that one of the foregoing Persons has actual knowledge of any such matter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Servicer shall not be obligated to assume, or engage in activities which could reasonably be expected to subject the Servicer to, any liability as a related company or shadow director of any Person within the Company Group or under any similar legal concept.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Each of the Company and each of the other Company Group members agrees that as between the Servicer, on the one hand, and any Company Group member, on the other hand, no representation is made as to the financial condition and affairs of any Lessee of, or seller or purchaser of, or support provider in respect of, any Aircraft Asset or any manufacturer, representative, maintenance facility, contractor, vendor or supplier or other third party consultant or contractor utilized by the Servicer in connection with its performance of the Services and (subject to the Standard of Liability) the Servicer shall have no liability with respect to such third parties.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Notwithstanding any other provision of this Agreement, no provision of this Agreement shall be construed so as to imply that either the Servicer or any of its Affiliates assumes any responsibility for undertaking or updating any "know your customer" checks required to be completed by any Company Group member in relation to any Lessee, seller or purchaser with which such Company Group member may transact or propose to transact, **provided that** the Servicer agrees that it shall relay requests for "know your customer" information and/or documentation from any relevant Lessee, seller or purchaser that is reasonably requested by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) Without derogating from the authority or responsibility of the Servicer with respect to the performance of certain of the Services as set forth in this Agreement, it is hereby expressly agreed and acknowledged that the Servicer is not authorized or empowered to make or enter into any agreement, contract or other legally binding arrangement in respect of or relating to the business of the Company Group, or pledge the credit of, incur any Indebtedness on behalf of, or expend any funds of, the Company Group other than as expressly permitted in accordance with the terms of this Agreement, all such authority and power being expressly reserved to the Company Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) The Services do not include any service or matter that falls under the categories of "investment business services" or "investment advice" under the Investment Intermediaries Act, 1995 or any other applicable provision of Irish law that would require such services to be performed by an entity that has obtained prior authorization from the Central Bank of Ireland. Nothing in this Agreement shall require the Servicer to (i) obtain or hold any financial services regulatory authorization from the Central Bank of Ireland or any other Governmental Authority, or (ii) perform any service which, in the reasonable opinion of the Servicer, would require such service to be performed by an entity that has obtained prior authorization from the Central Bank of Ireland or any other Governmental Authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) Notwithstanding any other provision of this Agreement, the Servicer shall not be obligated to take or refrain from taking any action under this Agreement (including the Services) at any time that the Servicer believes, in good faith but in its sole discretion, is reasonably likely to (1) violate any Applicable Law or any compliance policy implemented and maintained by the Servicer in connection with its compliance with Applicable Law with respect to the Servicer or its Affiliates, (2) lead to an investigation by, or otherwise require authorization from, any Governmental Authority in relation to the Servicer, any of its Affiliates or the Services, (3) otherwise result in a Material Adverse Effect on the Servicer or its Affiliates, or (4) result in a material adverse effect on the business or reputation of the Servicer (including exposing the Servicer or its Affiliates to any liabilities for which adequate bond or indemnity has not been provided).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) The Servicer shall not, and shall not be obligated to, act in a manner inconsistent with the rights, obligations or undertakings of a Person within the Company Group under any contract relating to the Services (provided Servicer is in possession of a copy of such contract), such as (as applicable), the "Lessor" under any Lease, the "purchaser" under a purchase contract or the "seller" under any sale contract.

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**ARTICLE III** 

**STANDARD OF CARE; CONFLICTS OF INTEREST;** 

**STANDARD OF LIABILITY** 

Section 3.01. **Standard of Care**. Subject to the terms and conditions of this Agreement, including the Transaction Approval Requirements, the Servicer shall use reasonable care and diligence at all times in the performance of the Services consistent with (a) the customary commercial practice of a prudent international lessor of commercial jet Aircraft and Engines and related assets, and (b) its practice (and with no less reasonable care and diligence) with respect to other Aircraft and Engines that are directly or indirectly owned by the Servicer. The foregoing standard is referred to as the "**Standard of Care**".

Section 3.02. **Conflicts of Interest**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company acknowledges and agrees that (i) in addition to providing the Services in respect of the Aircraft Assets under this Agreement, the Servicer may take actions, and shall be entitled to take actions, from time to time in relation to the Other Assets (ii) in the course of conducting such activities, the Servicer may from time to time have conflicts of interest in performing its duties on behalf of the various entities to whom it provides services and with respect to the various assets in respect of which it owns, intends to acquire and/or may provide services; (iii) in the course of providing the Services hereunder, the Servicer and its Affiliates may enter into Engine, Parts or other equipment purchases, sales, leases, overhaul, maintenance or storage contracts and other contracts with one or more Affiliates of the Servicer; and (iv) the Board of the Company has approved the transactions contemplated by this Agreement and desires that such transactions be consummated and in giving such approval, the Company and the Board of the Company has expressly recognized that such conflicts of interest may arise and that when such conflicts of interest arise, the Servicer shall perform the Services hereunder in accordance with the Standard of Care and, to the extent applicable, the Conflicts Standard.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If conflicts of interest arise with respect to the services provided in relation to any Aircraft Asset and any Other Asset, the Servicer shall perform the Services in good faith and, without prejudice to the generality of the foregoing, to the extent such Aircraft Asset and such Other Asset are substantially similar in terms of objectively identifiable characteristics relevant for purposes of the particular Services to be performed, the Servicer shall not discriminate between such Aircraft Asset and such Other Asset on an unreasonable basis. The standard set forth in this Section 3.02(b) shall be referred to collectively as the "**Conflicts Standard**".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding any other provision of this Agreement, if, in connection with the provision of Services with respect to an Aircraft Asset or Lease, a conflict of interest shall exist in respect of which the Servicer believes (in its absolute discretion, acting in good faith) it would not be appropriate for the Servicer to provide one or more of the Services in accordance with the Conflicts Standard (the "**Conflict Matter**") then the Servicer may, at the Servicer's discretion:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) suspend performance of some or all of the Services in respect of the Conflict Matter solely to the extent, and for the period, necessary to mitigate the inappropriate conflict of interest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) cease performance of some or all of the Services in respect of the Conflict Matter solely to the extent necessary to mitigate the inappropriate conflict of interest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) suspend performance of the Services with respect to the relevant Aircraft Asset and/or Lease solely to the extent, and for the period, necessary to mitigate the inappropriate conflict of interest; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) (in circumstances where the Servicer (in its sole discretion) determines that none of (i) to (iii) above would satisfactorily mitigate the inappropriate conflict of interest only, give a notice pursuant to Section 10.03.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Servicer shall provide written notice to the Company not more than ten (10) Business Days after it has made a determination of the existence of a Conflict Matter, including the Servicer's election under Section 3.02(c). Not more than ten (10) Business Days after receipt of such notice from the Servicer, the Company shall appoint a representative (which shall be any Person within the Company Group or a member of the Board of the Company who is not a Representative of the Servicer or any of its Affiliates) (the "**Conflict Representative**") to act on behalf of the Company Group in relation to the Conflict Matter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) During the period of such Conflict Representative's appointment, the Servicer shall continue to perform its ordinary functions as Servicer with respect to such Aircraft Asset or Lease to the extent that the performance of the Servicer does not directly or indirectly affect the Conflict Matter. To the extent the Servicer suspends or ceases performance of any Services with respect to such Conflict Matter, such Services shall be performed by the Conflict Representative or any other designee of such Person within the Company Group. Unless the Servicer has made a declaration under Section 3.02(c)(iv), any such Aircraft Asset or any Aircraft Assets subject to any Conflict Matter shall continue to be included as an Aircraft Asset for purposes of calculating the Servicing Fees pursuant to Article IX during the appointment of a Conflict Representative; **provided that** the reasonable out of pocket costs and expenses of the Conflict Representative (incurred in such capacity), if any, shall be deductible from the Servicing Fees payable hereunder solely in respect of any Aircraft Asset subject to such Conflict Matter for so long as such Conflict Matter continues.

Section 3.03. **Standard of Liability**. Notwithstanding any other provision of this Agreement, the Servicer shall not be liable or accountable to any Person, including, without limitation, the Company or any other Person within the Company Group or any Investor, under any circumstances for any Losses directly or indirectly arising out of, in connection with or related to, the provision of services by the Servicer (or any applicable Servicer Delegate) in respect of Aircraft Assets or Other Assets, the performance of any Services, or otherwise with respect to this Agreement, unless such Losses are finally adjudicated to have resulted directly from the Servicer's (or any Servicer Delegate's) gross negligence or willful misconduct in respect of its obligation to apply the Standard of Care or the Conflicts Standard in respect of its performance of the Services (the liability standards set forth in this Section 3.03, the "**Standard of Liability**").

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Section 3.04. **Waiver of Implied Standard**. EXCEPT AS EXPRESSLY STATED ABOVE IN THIS ARTICLE III, ALL OTHER WARRANTIES, CONDITIONS AND REPRESENTATIONS, EXPRESS OR IMPLIED, STATUTORY OR OTHERWISE, ARISING UNDER U.S. FEDERAL, DELAWARE, IRISH, NEW YORK, OR OTHER LAW IN RELATION TO THE SKILL, CARE, DILIGENCE OR OTHERWISE IN RESPECT OF ANY SERVICE TO BE PERFORMED HEREUNDER OR TO THE QUALITY OR FITNESS FOR ANY PARTICULAR PURPOSE OR MERCHANTABILITY OF ANY GOODS OR SERVICES ARE HEREBY EXCLUDED AND WAIVED BY THE COMPANY AND EACH OTHER PERSON WITHIN THE COMPANY GROUP, AND THE SERVICER SHALL NOT BE LIABLE TO THE COMPANY OR ANY OTHER PERSON WITHIN THE COMPANY GROUP OR ANY OTHER PERSON IN CONTRACT, TORT OR OTHERWISE UNDER U.S. FEDERAL, DELAWARE, IRISH, NEW YORK, OR OTHER LAW FOR ANY LOSS, DAMAGE, EXPENSE OR INJURY OF ANY KIND WHATSOEVER, CONSEQUENTIAL OR OTHERWISE, ARISING OUT OF OR IN CONNECTION WITH EITHER THE SERVICES TO BE SUPPLIED PURSUANT TO THIS AGREEMENT OR ANY GOODS TO BE PROVIDED OR SOLD IN CONJUNCTION WITH SUCH SERVICES OR ANY DEFECT IN EITHER SUCH GOODS OR SERVICES OR FROM ANY OTHER CAUSE, WHETHER OR NOT ANY SUCH MATTER AMOUNTS TO A FUNDAMENTAL BREACH OF A FUNDAMENTAL TERM OF THIS AGREEMENT. NOTHING IN THIS ARTICLE III SHOULD BE TAKEN AS IN ANY WAY LIMITING OR EXCLUDING ANY LIABILITY WHICH THE SERVICER MAY HAVE TO THE COMPANY UNDER SECTION 2 OF THE IRISH LIABILITY FOR DEFECTIVE PRODUCTS ACT, 1991.

THE CONTRACTUAL RIGHTS, IF ANY, WHICH THE COMPANY GROUP ENJOYS BY VIRTUE OF SECTIONS 12, 13, 14 AND 15 OF THE SALE OF GOODS ACT, 1893 (AS AMENDED) AND SECTION 39 OF THE SALE OF GOODS AND SUPPLY OF SERVICES ACT, 1980 ARE IN NO WAY PREJUDICED BY ANYTHING CONTAINED IN THIS AGREEMENT SAVE TO THE EXTENT PERMITTED BY LAW.

**ARTICLE IV** 

**REPRESENTATIONS AND WARRANTIES** 

Section 4.01. **Company Representations and Warranties**. The Company represents and warrants to the Servicer, on the date of this Agreement and on the date of Delivery of each Aircraft Asset, as follows:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Aircraft Assets Related Documents.** Each Aircraft Assets Related Document and each applicable document related to the performance of any Acquisition-Related Services in respect of an Excluded Asset is a legal, valid and binding agreement of the Person within the Company Group that is a party thereto (including by way of assignment or novation) and is enforceable against such Person within the Company Group that is a party thereto in accordance with its terms, except as such enforceability may be limited by (i) bankruptcy, insolvency, reorganization, moratorium or similar laws of general applicability affected the enforcement of creditors' rights and (ii) the application of general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Accounts**. Schedule 4.01(c) (as such Schedule shall be amended by the Company and the Servicer from time to time) sets forth a true and complete list of all bank or other similar accounts and any other accounts relating to the Aircraft Assets (including wire transfer instructions) or otherwise in connection with the Services, with respect to which any Person within the Company Group, or any other agent thereof, has authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Organization and Standing**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company is a designated activity company incorporated under the laws of Ireland, and each other Person within the Company Group is a corporation duly incorporated, a common law or statutory trust duly created or a limited liability company duly formed and validly existing and, if relevant, in good standing under, the laws of the jurisdiction in which it is legally incorporated, created or formed, respectively, and possesses all franchises, licenses, permits, authorizations and approvals necessary to enable it to use its corporate or trust name and to own, lease or otherwise hold its properties and assets and to carry on its business as presently conducted and as proposed to be conducted except for such franchises, licenses, permits, authorizations and approvals the failure of which to obtain could not, individually or in the aggregate, have a Material Adverse Effect on the Persons within the Company Group, taken as a whole, or on the Servicer. Each of the Company and each other Person within the Company Group is in compliance in all material respects with all terms and conditions of such franchises, licenses, permits, authorizations and approvals. Schedule 4.01(d) (as such Schedule may be amended by the Company and the Servicer from time to time) sets forth a true and complete list of each Person that is within the Company Group and the jurisdiction in which each such Person within the Company Group is legally organized.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Each of the Company and each other Person within the Company Group is duly qualified to do business as a foreign corporation in each jurisdiction in which the nature of its business or the ownership, leasing or holding of its properties or assets requires qualification except for such jurisdictions where the failure to be so qualified could not, individually or in the aggregate, have a Material Adverse Effect on the Persons within the Company Group, taken as a whole, or on the Servicer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Authority.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company has all requisite power and authority to execute this Agreement and to consummate the transactions and to perform its obligations contemplated thereby. All corporate acts and other proceedings required to be taken by the Company Group to authorize the execution, delivery and performance of this Agreement and the consummation of the transactions and the performance of its obligations contemplated hereby have been duly and properly taken.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) This Agreement is duly and validly executed and delivered the Company, and is a legal, valid and binding obligation of the Company, enforceable against it in accordance with its terms, except as such enforceability may be limited by (A) bankruptcy, insolvency, reorganization, moratorium or similar laws of general applicability affected the enforcement of creditors' rights and (B) the application of general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **No Conflicts**. Neither the execution and delivery of this Agreement nor the consummation of the transactions contemplated thereby nor performance by any Person within the Company Group of any of its obligations thereunder will (i) violate any provision of the constituent documents of any such Person within the Company Group, (ii) violate any order, writ, injunction, judgment or decree applicable to any Person within the Company Group or any of their respective properties or assets, (iii) violate in any material respect any Applicable Law or (iv) result in any conflict with, breach of or default (or give rise to any right of termination, cancellation or acceleration) under, any of the terms, conditions or provisions of any note, bond, mortgage, credit agreement, warrant or other similar instrument or any license, permit, material agreement or other material obligation to which any Person within the Company Group is a party or by which any Person within the Company Group or any of their respective properties or assets may be bound. No action, consent or approval by, or filing with, any Governmental Authority or any other regulatory or self-regulatory body, or any other Person, is required in connection with the execution, delivery or performance by any Person within the Company Group of this Agreement or the consummation by any Person within the Company Group of the transactions contemplated thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **Compliance with Applicable Laws**. Each of the Company and each other Person within the Company Group is in compliance in all material respects with all Applicable Laws and any filing requirements relating thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) **Litigation; Decrees**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) There are no claims, actions, suits, arbitrations or other proceedings or investigations (A) pending or, to the knowledge of each of the Company or each other Person within the Company Group, threatened, by or against or affecting the Company or any other Person within the Company Group, which in any case involves a potential loss exceeding $[\*] (other than, with respect to Aircraft Assets, which the Company believes in good faith to be fully covered by insurance); or (B) pending, or to the knowledge of each of the Company or each other Person within the Company Group, threatened, by or against or affecting the Company or any other Person within the Company Group, related to the transactions contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Each of the Company and each other Person within the Company Group is in compliance in all material respects with each outstanding judgment, order or decree of any Governmental Authority or arbitrator applicable to the Company or any other Person within the Company Group, as the case may be, and no such judgment, order or decree has or could have a Material Adverse Effect on the Company or any other Person within the Company Group, or on the Servicer.

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Section 4.02. **Servicer Representations and Warranties**. The Servicer represents and warrants to the Company on the date of this Agreement as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Authority**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Servicer is a private company limited by shares duly created under the laws of Ireland and possesses all franchises, licenses, permits, authorizations and approvals necessary under the laws of Ireland to enable it to use its corporate name and to own, lease or otherwise hold its properties and assets and to carry on its business as presently conducted and as proposed to be conducted pursuant to the terms of this Agreement except for such franchises, licenses, permits, authorizations and approvals the failure of which to obtain could not, individually or in the aggregate, have a Material Adverse Effect on the Persons within the Company Group, taken as a whole, or on the Servicer. The Servicer has all requisite power and authority to execute this Agreement and to consummate the transactions and to perform its obligations contemplated thereby. All corporate acts required to be taken by the Servicer to authorize the execution, delivery and performance of this Agreement and the consummation of the transactions and the performance of its obligations contemplated hereby have been duly and properly taken.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) This Agreement has been duly and validly executed and delivered by the Servicer, and is a legal, valid and binding obligation of the Servicer, enforceable against it in accordance with its terms, except as such enforceability may be limited by (A) bankruptcy, insolvency, reorganization, moratorium or similar laws of general applicability affecting the enforcement of creditors' rights and (B) the application of general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **No Conflicts**. Neither the execution and delivery of this Agreement nor the consummation of the transactions contemplated thereby nor performance by the Servicer of any of its obligations thereunder will (i) violate any provision of the constituent documents of the Servicer, (ii) violate any order, writ, injunction, judgment or decree applicable to the Servicer or any of its properties or assets, (iii) violate in any material respect any Applicable Law or (iv) result in any conflict with, breach of or default (or give rise to any right of termination, cancellation or acceleration) under, any of the terms, conditions or provisions of any note, bond, mortgage, credit agreement, warrant or other similar instrument or any license, permit, material agreement or other material obligation to which the Servicer is a party or by which the Servicer or any of its properties or assets may be bound. No action, consent or approval by, or filing with, any Governmental Authority or any other regulatory or self-regulatory body, or any other Person, is required in connection with the execution, delivery or performance by the Servicer of this Agreement or the consummation by the Servicer of the transactions contemplated thereby.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Compliance with Applicable Laws of Ireland**. The Servicer is in compliance in all material respects with applicable Sanctions, applicable Anti-Money Laundering Laws, all Applicable Laws of Ireland and any filing, licensing or approval requirements in Ireland relating thereto necessary to perform its obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Litigation**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) There are no claims, actions, suits, arbitrations or other proceedings or investigations pending, or to the knowledge of the Servicer, threatened by or against or affecting the Servicer related to the transactions contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Servicer is not subject to any judgment, order or decree (other than may exist with respect to any Aircraft Asset) which could have a Material Adverse Effect on the Company or any Person within the Company Group, or on the Servicer.

Section 4.03. **Guarantor Representations and Warranties**. The Guarantor represents and warrants to the Servicer, on the date of this Agreement and on the date of Delivery of each Aircraft Asset, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Organization and Standing**.

The Guarantor is a corporation incorporated under the laws of the State of Delaware, duly formed and validly existing and in good standing, and possesses all franchises, licenses, permits, authorizations and approvals necessary to enable it to use its corporate or trust name and to own, lease or otherwise hold its properties and assets and to carry on its business as presently conducted and as proposed to be conducted except for such franchises, licenses, permits, authorizations and approvals the failure of which to obtain could not, individually or in the aggregate, have a Material Adverse Effect on the Guarantor, or on the Servicer. The Guarantor is in compliance in all material respects with all terms and conditions of such franchises, licenses, permits, authorizations and approvals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Authority.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Guarantor has all requisite power and authority to execute this Agreement and to consummate the transactions and to perform its obligations contemplated thereby. All corporate acts and other proceedings required to be taken by the Guarantor to authorize the execution, delivery and performance of this Agreement and the consummation of the transactions and the performance of its obligations contemplated hereby have been duly and properly taken.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) This Agreement is duly and validly executed and delivered the Guarantor, and is a legal, valid and binding obligation of the Guarantor, enforceable against it in accordance with its terms, except as such enforceability may be limited by (A) bankruptcy, insolvency, reorganization, moratorium or similar laws of general applicability affected the enforcement of creditors' rights and (B) the application of general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **No Conflicts**. Neither the execution and delivery of this Agreement nor the consummation of the transactions contemplated thereby nor performance by the Guarantor of any of its obligations thereunder will (i) violate any provision of the constituent documents of the Guarantor, (ii) violate any order, writ, injunction, judgment or decree applicable to the Guarantor or any of their respective properties or assets, (iii) violate in any material respect any Applicable Law or (iv) result in any conflict with, breach of or default (or give rise to any right of termination, cancellation or acceleration) under, any of the terms, conditions or provisions of any note, bond, mortgage, credit agreement, warrant or other similar instrument or any license, permit, material agreement or other material obligation to which the Guarantor is a party or by the Guarantor or any of their respective properties or assets may be bound. No action, consent or approval by, or filing with, any Governmental Authority or any other regulatory or self-regulatory body, or any other Person, is required in connection with the execution, delivery or performance by the Guarantor of this Agreement or the consummation by the Guarantor of the transactions contemplated thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Compliance with Applicable Laws**. The Guarantor is in compliance in all material respects with all Applicable Laws and any filing requirements relating thereto.

**ARTICLE V** 

**REPORTING, COMMUNICATION AND COORDINATION** 

Section 5.01. **Cooperation**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company shall, and shall cause each other Person within the Company Group and their respective Representatives and agents to, at all times cooperate (to the extent reasonably requested by the Servicer) with the Servicer to enable the Servicer to provide the Services, including providing the Servicer with all powers of attorney as may be reasonably necessary or appropriate for the Servicer to perform the Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Without prejudice to the generality of sub-section (a) above, upon the entry into this Agreement, the Company shall promptly provide true and correct copies within its possession of all Aircraft Assets Related Documents, to the Servicer and shall provide the Servicer with access to other such documentation and information generated as part of the Company Group's activities (which correspond to the Services) with respect to the Aircraft Assets simultaneously with or promptly following the entry into this Agreement (and, upon the request by the Servicer, and to the extent practicable, copies thereof) within its possession as is reasonably necessary for the Servicer to perform the Services. Upon request from the Servicer, the Company shall also promptly provide originals within its possession of all Aircraft Assets Related Documents.

Section 5.02. **Acquisition-related Services in respect of Excluded Assets**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) To the extent that the Company (or any Person within the Company Group) is remarketing an Excluded Asset for re-lease, such that it may cease to be an Excluded Asset following a successful remarketing, the Company, or any other Person within the Company Group, and the Servicer may mutually agree that the Servicer shall provide some or all of the Services in relation to such Aircraft or Orphan Engine following or in connection with such remarketing.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company may, from time to time during the Term, request the Servicer to provide acquisition services analogous to the services described in the "Aircraft Acquisitions" Section of Schedule 2.02(a) (but for the avoidance of doubt, no other services), in respect of certain Excluded Assets (the "**Acquisition-Related Services**") on behalf of the Company Group. If the Servicer accepts such engagement, the Servicer's provision and the Company Group's receipt of any Acquisition-Related Services shall be deemed part of the "Services" provided under this Agreement, in each case subject to the terms and conditions of this Agreement, **provided that**, for the avoidance of doubt and notwithstanding anything in this Agreement to the contrary, the Servicer's appointment with respect to such Acquisition-Related Services shall not be subject to the exclusivity obligations or restrictions contained in this Agreement.

Section 5.03. **Timely Response and Communication**. The Company shall, and shall cause each other Person within the Company Group and their respective agents to, ensure that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) at all relevant times there is and will continue to be made reasonably available for access by the Servicer at least three (3) Company Designated Representatives for the purposes of issuing any instructions or directions to the Servicer or of responding to any requests made by or on behalf of the Servicer (and make available such Company Designated Representatives' contact details to the Servicer promptly following the designation of any Company Designated Representative and when requested by the Servicer from time to time);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) without prejudice to the generality of the foregoing, such written instructions, approvals or directions as the Servicer reasonably requests and determines to be appropriate in connection with the performance of the Servicer's obligations hereunder are provided to the Servicer on a timely basis; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) such other information as is necessary for the Servicer's performance of the Services is on a timely basis furnished to the Servicer, including without limitation, any information reasonably requested by the Servicer relating to the Company Retained Activities necessary for the Servicer to perform the Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Nothing in this Section 5.03 shall be construed to oblige the Company or any Person in the Company Group to approve any matter or action (or direct or instruct the Servicer to undertake any matter or action) which would result in the violation of any Applicable Law by the Company or such Person, respectively.

Section 5.04. **Quarterly Meetings**. Without prejudice to Section 5.03, one or more of the Company Designated Representatives and one or more of the Servicer Designated Representatives shall meet (in person or by video conference) not less than once in each Quarter to discuss the coordination of the Services between the Parties and with the other Persons within the Company Group and any material matters identified in the Reporting Framework.

Section 5.05. **Lessee and Other Third Party Communications**. (a) The Company shall, and shall cause each other Person within the Company Group to, forward promptly to the Servicer a copy (or, if such communication is oral and from a Lessee or Aircraft Asset purchaser, notify the Servicer by prompt oral or written notice and, if oral notice, confirmed in writing as soon as reasonably practicable) of any written communication received from any Person (including any Person under any Aircraft Assets Related Document) in relation to any Aircraft Asset (or, with respect to any Acquisition-Related Services, the applicable Excluded Asset) or oral communication received from a Lessee or Aircraft Asset seller or purchaser in relation to any Aircraft Asset (or, with respect to any Acquisition-Related Services, the applicable Excluded Asset).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In furtherance of the foregoing, the Parties acknowledge and agree that the Servicer shall communicate directly or otherwise have direct dealings with Lessees of an Aircraft Asset and manufacturers of an Aircraft Asset (each such manufacturer being an "**OEM**") to the extent that such communication and/or dealings constitutes, or involves taking any action that would constitute, the provision or performance of any Services, and notwithstanding any other provision of this Agreement without the consent of the Servicer, the Company shall not, and shall not permit any Person within the Company Group or any agent of any thereof, to, communicate directly or otherwise have any direct dealings with any Lessee, OEM, continuing airworthiness management organization ("**CAMO**"), provider of maintenance, repair, and overhaul services ("**MRO**"), aviation authority or any other relevant third party with respect to any Aircraft Asset to the extent that such communication or other dealing constitutes, or involves taking any action that would constitute, the provision or performance of any Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) For the avoidance of doubt, nothing in this Section 5.05 shall prevent the Company, or any Person within the Company Group, or any agent of any thereof, from communicating or dealing directly with Lessees, OEMs, CAMOs, MROs, aviation authorities or other actual or potential counterparties or Representatives of a Person in the Company Group solely to the extent that such communication or dealings (i) are required for the conduct of Company Retained Activities or (ii) relate to the performance of the Services by a Conflict Representative or (iii) relate to performance of the Services by a Replacement Servicer in the event that (A) a written notice of non-renewal of this Agreement is provided pursuant to Section 10.01 of Article X, (B) the Company provides a Termination Notice to the Servicer pursuant to Section 10.02 of Article X, or (C) this Agreement otherwise expires or is terminated in accordance with Article X or (D) without duplication, where the relevant circumstances described in Section 2.02(b) above have arisen.

Section 5.06. **Access to Company Group Information.**

[\*].

Section 5.07. **Quarterly Meeting Directions**.

[\*].

Section 5.08. **Reporting Framework**.

The Servicer shall adopt the Reporting Framework and, in furtherance thereof, provide to the Company the information and reports described in Schedule 5.08 at the frequencies and in the formats described therein.

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**ARTICLE VI** 

**SERVICER UNDERTAKINGS** 

Section 6.01. **Access**. (a) Subject to the proviso set out below, the Servicer shall grant, and shall cause any Servicer Delegate to grant, to the Company Group and their auditors, independent insurance brokers, legal or other professional advisors and any Independent Representatives, access to the documents and other records generated by the Servicer (and in its possession) as part of its performance of the Services (exclusive of internal correspondence, approval materials, internal evaluations and similar documents or other records developed by the Servicer or any of its Affiliates for their own use) or by a Lessee and delivered to the Servicer related to the Aircraft Assets (copies of which the Company shall (at its expense) be entitled to retain), provided that such access shall be granted only:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) upon reasonable request from the Company, including reasonable notice;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) not more than once per Year in aggregate, with respect to the Company Group taken as a whole;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) at reasonable times during the Servicer's normal business hours;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) to any Person other than a member of the Company Group if that Person is not a Representative of a Competitor and that Person is party to a confidentiality agreement reasonably acceptable to the Servicer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) to the extent necessary to enable the Company to monitor the performance by the Servicer under this Agreement or to otherwise discharge the Company's or a member of the Company Group's obligations under Applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Upon reasonable prior written notice and at reasonable times (in any event not more than an aggregate, with respect to the Company Group taken as a whole, of two (2) times per Year or such greater number as the Servicer and the Company may mutually agree in order to facilitate evaluation by the Board of the Company of matters for which the Servicer has requested approval, which the Company requires to be considered by its Board), the Servicer shall make one (1) or more (such number to be determined by the Servicer in its sole discretion) members of its management available to attend (including by telephone) meetings of the Board of the Company to give an update on the Services (in addition to the meetings described in Section 5.07). Participation in discussions on matters of strategic importance with the Servicer at any of the meetings of the Board of the Company attended by the Servicer shall be limited to members of the Board of the Company. Any out-of-pocket expenses incurred by the Servicer in connection with attending any meeting of the Board of the Company pursuant to this Section 6.01 shall be reimbursed by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Servicer will ensure that at all relevant times there is and will continue to be made available for access by the Company at least three (3) Servicer Designated Representatives for the purposes of responding to any requests made by or on behalf of the Company (and make available such Servicer Designated Representatives' contact details to the Company promptly following the designation of any Servicer Designated Representative and when requested by the Company from time to time).

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Section 6.02. **Compliance with Law**. The Servicer shall, in performing the Services under this Agreement, comply in all material respects with all Applicable Laws.

Section 6.03. **Commingling**. The Servicer shall not commingle, with its own funds or the funds of other Persons for which it acts as lease servicer or service provider, any funds of any Person within the Company Group from time to time in its possession.

Section 6.04. **Corporate Formalities**. During the term of this Agreement, the Servicer will observe all corporate formalities necessary to remain a legal entity separate and distinct from, and independent of, each Person within the Company Group and will maintain its assets, liabilities, funds, records, books and accounts separate and distinct from those of each Person within the Company Group.

Section 6.05. **Separateness Covenants**. In connection with providing the Services, the Servicer shall: (a) perform its obligations in the ordinary course of its business as a legal entity separate from each Person within the Company Group, (b) conduct its business in its own name and not in the name of any Person within the Company Group, (c) other than as permitted or required by this Agreement, not pay or agree to pay or become liable for any debt of any Person within the Company Group, (d) not hold itself out as a division of any Person within the Company Group or as any Person within the Company Group being a division of it, and (e) not induce any third party to rely on the creditworthiness of any Person within the Company Group in order that such third party will be induced into contract with the Servicer.

Section 6.06. **Operating Guidelines**. [\*].

**ARTICLE VII** 

**UNDERTAKINGS OF THE COMPANY** 

Section 7.01. **Related Document Amendments**. The Company shall not take, and shall not permit any other Person within the Company Group to take, any action that would increase in any respect the scope, nature or level of the Services to be provided under this Agreement without the Servicer's express prior written consent (other than actions that result in an Excluded Asset becoming an Aircraft Asset in accordance with the terms hereof), including by entering into, amending, modifying or supplementing any Aircraft Assets Related Document (it being understood that (a) the Servicer shall have no liability to any Person directly or indirectly arising out of, in connection with or related to, the Servicer's failure to perform such increased Service prior to any such amendment, modification or supplement being consented to in writing by the Servicer and (b) no Person within the Company Group shall be permitted to engage another Person to perform the affected Service without the prior written consent of the Servicer).

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Section 7.02. **Ratification**. Subject to the Transaction Approval Requirements, the Company hereby ratifies and confirms and agrees to ratify and confirm (and shall cause each other Person within the Company Group to do the same) (and shall furnish written evidence thereof upon request of the Servicer) whatever the Servicer does in accordance with this Agreement in the exercise of any of the powers or authorities conferred upon the Servicer under the terms of this Agreement, and waives any right to challenge any such matters; provided that in no event shall any Person in the Company Group be required to take, ratify or confirm any action if doing so would result in such Person violating any Applicable Law.

Section 7.03. **Further Assurances**. The Company agrees, and shall cause each other Person within the Company Group and their respective agents to agree, that, at any time and from time to time, upon the written request of the Servicer, it will execute and deliver such further documents and do such further acts and things as the Servicer may reasonably request in order to effect the purposes of this Agreement; provided that in no event shall any Person in the Company Group be required to execute or deliver any documentation or take any action (or fail to take any action) if doing so would result in such Person violating any Applicable Law.

Section 7.04. **Transfer of Funds**

The Company agrees and shall cause each other Person within the Company Group and their respective agents, to cooperate with the Servicer to the extent necessary to cause funds to be transferred into or out of the various bank or other similar accounts in order for the various payments from Lessees or other counterparties (including, without limitation, maintenance, repair and overhaul providers, where applicable) to be applied, or to Lessees or other counterparties (including, without limitation and if applicable, reimbursement of any Utilization Rent or other contributions, return or application of any Deposit payments (or drawings or demands under letters of credit or guarantees in lieu or in respect thereof) payment of any airworthiness directive or mandatory order contribution payments and any redelivery adjustment payments due from the Company (or the relevant Person within the Company Group) to be made, on a timely basis (and, in any event, within three (3) Business Days of the Servicer's request, if applicable) in accordance with the requirements of the relevant Aircraft Assets Related Documents and consistent with the instructions of such Lessees or other counterparties, but always subject to Applicable Law.

Section 7.05. **Performance of Obligations**. The Company shall, and shall cause each of the Persons within the Company Group to, cause the due performance of each of its or their obligations under each Aircraft Asset Relevant Document as and when any such performance is due in accordance with its terms.

Section 7.06. **Commingling**. The Company shall not commingle, with its own funds or the funds of other Persons within the Company Group, any funds of the Servicer from time to time in its possession.

Section 7.07. **Corporate Formalities**. During the term of this Agreement, the Company and each Person within the Company Group will observe all corporate formalities necessary to remain a legal entity separate and distinct from, and independent of, the Servicer and will maintain its assets, liabilities, funds, records, books and accounts separate and distinct from those of the Servicer.

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Section 7.08. **Separateness Covenants**. Notwithstanding the appointment of the Servicer to perform the Services and the related delegation of authority and responsibility to the Servicer pursuant to this Agreement, each of the Company and each other Person within the Company Group shall continue to have and exercise, real and effective central control and management of all strategic matters related to its ongoing business, operations, assets and liabilities, and each of the Company and each other Person within the Company Group shall at all times conduct its separate ongoing business in such a manner that the same shall at all times be readily identifiable from the separate business of the Servicer. The Company shall, and shall cause each of the Persons within the Company Group to, in all dealings with the Aircraft Assets: (a) perform its obligations in the ordinary course of its business as a legal entity separate from the Servicer, (b) conduct its business in its own name and not in the name of the Servicer, (c) other than as permitted or required by this Agreement, not pay or agree to pay or become liable for any debt of the Servicer,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) not hold itself out as a division of the Servicer, (e) not induce any third party to rely on the creditworthiness of the Servicer in order that such third party will be induced into contract with the Company or any Person within the Company Group.

**ARTICLE VIII** 

**COMPANY GROUP CONTROL** 

Section 8.01. **Budget**. (a) The Company shall adopt with respect to each Year (other than with respect to the Year ending December 31, 2026), in accordance with Sections 8.01(b), (c) and (d), a single budget with respect to all Aircraft Assets (the "**Budget**") comprising the lease operating budget and any Aircraft Asset expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In respect of each Year, it is understood that the Company shall prepare on behalf of the Company Group, and not later than October 15 of the Year immediately preceding the commencement of such Year deliver to the Servicer (other than with respect to the Year ended December 31, 2025), a proposed Budget for such Year together with reasonably detailed information regarding the assumptions underlying such proposed budgets.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) [\*].

Section 8.02. **Transaction Approval Requirements**. (a) Without limitation of any requirement to obtain the consent or approval of the Board of the Company or any Investor for any matter under the Investors Agreement, the Servicer shall not do any of the following without the prior written approval of the Executive Management Team (the "**Transaction Approval Requirements**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) [\*].

Section 8.03. **Other Transactions**. Except as set forth in Section 8.02(a) and without limiting the provisions of Section 8.01, no transaction entered into, or action taken or omitted, by the Servicer on behalf of any Person within the Company Group in connection with the performance by the Servicer of the Services shall require the approval of any Person within the Company Group or the Executive Management Team or the Board of the Company.

Section 8.04. **Directions**. The Servicer may (but is not obliged to) seek any approval, instruction or direction from the Company with respect to any matter related to the Services or the Aircraft Assets to the extent that the Servicer believes to be appropriate and, pending the Servicer's receipt of any such approval, instruction or direction, the Servicer may refrain from taking any action with respect to the matter for which the Servicer has sought approval or direction.

Section 8.05. **Company Retained Activities**. The Servicer shall have no obligations or liabilities with respect to the matters set forth in Schedule 8.05 (the "**Company Retained Activities**"). As between the Parties, the Company (or another Person within the Company Group, as applicable) shall be solely responsible for the performance of all Company Retained Activities (including in respect of the Aircraft Assets), and the Servicer's prior written consent is not required

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with respect to the appointment by any Person within the Company Group of any legal, accounting or other similar service providers to perform or provide services in relation to any activities not included within the Services (including any Company Retained Activities) in respect of any Aircraft Asset. Notwithstanding the foregoing limitation of liability or any similar provision of Schedule 8.05, the Servicer shall, upon written request by the Company, provide any documents held by, or information available to, the Servicer in relation to the Aircraft Assets that is reasonably required to permit the Company to conduct the Company Retained Activities (including, without limitation, appropriate contacts details of actual or prospective counterparties to allow the Company to conduct **such Company Retained Activities).**

Section 8.06. **Additional Leasing Parameters**. [\*].

**ARTICLE IX** 

**SERVICING FEES; EXPENSES; TAXES;** 

**PRIORITY OF SERVICING FEES** 

Section 9.01. **Servicing Fees**. [\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) [\*].

Section 9.02. **Rent Fees**. [\*]:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) [\*].

Section 9.03. **Sales Fee**. [\*].

Section 9.04. **Acquisition Fee**. [\*].

Section 9.05. **Expenses**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Servicer shall be responsible for, and shall not be entitled to reimbursement for, the Servicer's overhead expenses set forth in Schedule 9.05(a) ("**Overhead Expenses**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company shall be responsible for, and shall at the Servicer's option pay directly (or procure the direct payment of) or reimburse (or procure the reimbursement of) the Servicer for, all reasonably incurred and documented out-of-pocket costs and expenses incurred by the Servicer in connection with performing the Services (other than Overhead Expenses), including those costs and expenses set forth in Schedule 9.05(b) ("**Services Expenses**"). Nothing contained in this Agreement shall be deemed to impose on the Servicer any obligation to advance any of its own funds for any Services Expenses.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If the Servicer proposes to incur costs or expenses in connection with performing the Services (other than Overhead Expenses) (i) for an amount in excess of $[\*] (or the equivalent thereof in the currency in which such obligation is payable) or (ii) at any time when a default in respect of the payment of any amount due from the Company under this Agreement shall have occurred and be continuing for a period in excess of [\*] Business Days, the Company shall, on the Servicer's written request, pay or procure payment of such costs or expenses in advance or otherwise make the funds available for payment of such costs or expenses to the satisfaction of the Servicer. If such advance payment is not made or such funds are not otherwise made available, notwithstanding any other provision in this Agreement, the Servicer shall be relieved of its obligation to provide or arrange for the provision of such goods or services in respect of the Aircraft Assets for which such goods or services were to be provided but shall otherwise continue to perform its obligations under this Agreement and shall continue to be entitled to receive the Servicing Fees in respect of such Aircraft Asset.

Section 9.06. **Taxes.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All amounts payable by or on behalf of the Company pursuant to this Agreement shall be payable exclusive of any applicable value added tax or similar indirect taxes, which value added tax or similar indirect taxes, if payable, shall also be payable by the Company. If such value added tax or similar indirect taxes are payable, the Servicer will provide a valid value added tax or similar indirect taxes invoice. Amounts, if any, payable to the Company by an Indemnified Party pursuant to this Agreement shall be inclusive of value added tax save to the extent such Indemnified Party is entitled to recover (by way of repayment, credit or set off) the whole or any part of such value added tax. Where it is so entitled, at the request of the Company, value added tax shall be payable in addition thereto on production of a valid value added tax invoice but payment of the value added tax element shall not fall due until the latest possible date before the date on which such Indemnified Party shall receive such repayment, credit or set off (and such Indemnified Party shall be obligated to use reasonable endeavors (taking into account its overall tax position) to obtain such repayment, credit or set off as soon as possible); **provided, however, that** to the extent such payment of the value added tax element shall fall due prior to such date of receipt pursuant to Applicable Law, the Company shall make such Indemnified Party whole on an After-Tax Basis for any resulting loss of the time value of funds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company, on an After-Tax Basis, shall pay and indemnify and hold the Indemnified Parties harmless from all Taxes imposed, levied or assessed against or upon a Taxpayer or any Indemnified Parties by any Governmental Authority upon or with respect to this Agreement or any payment pursuant hereto or resulting from the matters or activities described therein other than (except to the extent required to make any payment on an After-Tax Basis):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) payroll, social security, health care and employment Taxes of such Indemnified Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Taxes that are based on or measured by the net income (including any alternative minimum or base erosion Taxes imposed in addition to or in lieu hereof), net profits, net receipts, net worth, franchise, capital gain or conduct of business of such Indemnified Party (or any fiscal unity, combined or consolidated group of which such Indemnified Party is a member or forms a part);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Taxes payable by such Indemnified Party by reason of such Indemnified Party's (or its Affiliates') direct or indirect, legal or beneficial ownership of any equity or other interests in or of the Company that would not otherwise have been imposed upon or with respect to this Agreement or any payment pursuant hereto or resulting from the matters or activities described therein;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Taxes attributable to events or conditions arising before the date of this Agreement or after the termination or expiration of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Taxes imposed upon such Indemnified Party resulting from such Indemnified Party failing to comply with certification, information, documentation, reporting or similar requirements concerning the nationality, residence, identity or connection with the jurisdiction imposing such Taxes if such Indemnified Party was aware of the requirement to comply and the Company has provided timely notification to the Indemnified Party in writing of such requirement and such Indemnified Party's compliance is required by Applicable Law or treaty as a precondition to relief or exemption from such Taxes and such Indemnified Party was eligible for such relief or exemption, unless such failure to comply was due to failure of the Company to provide reasonable assistance in complying with such requirement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Taxes which are imposed pursuant to the U.S. Foreign Account Tax Compliance Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) Taxes which arise from a change of residence for tax purposes of the Servicer that would not otherwise have been imposed upon or with respect to this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) Taxes that are finally adjudicated to have been imposed as a result of the gross negligence or willful misconduct of such Indemnified Party;

**provided**, **however**, **that** the preceding sub-clauses (i) and (ii) shall only limit the Company's obligation to indemnify and hold harmless the Indemnified Parties for any such Taxes that would not have been imposed but for any connection of the Indemnified Party or any Affiliate thereof with the jurisdiction imposing such Taxes (other than any such connection that results from activities of such Indemnified Party or any Affiliate relating to this Agreement or resulting from the matters or activities described therein which activities are located in such jurisdiction by reason of the location of (A) a specific Lessee or sub-Lessee of any Person within the Company Group, (B) an Aircraft, Engine or any Part owned or to be acquired by any Person within the Company Group or (C) any other Person (other than any Indemnified Party) with whom any Person within the Company Group may be engaging, or contemplating engaging, in a commercial relationship).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In the event any Taxes with respect to which the Company has an indemnification responsibility under this Section 9.06 are levied on any Indemnified Party, or any Indemnified Party is required by law or otherwise to pay any such Taxes in the first instance or as a result of a Person or Persons within the Company Group's failure to comply with, or nonperformance in relation to, any Applicable Law or regulations governing the payment thereof by such Person or Persons within the Company Group, the Company shall pay or cause to be paid to such Indemnified Party an amount calculated on an After-Tax Basis equal to the amount of such Taxes within [\*] Business Days after receipt from such Indemnified Party of any written request for such payment but not later than [\*] Business Day before the due date for such Taxes (provided that, where such Taxes are being contested in good faith by appropriate proceedings, such Taxes will be paid promptly (and in any event not later than [\*] Business Days before the due date) following a final determination that such Taxes are due and payable). [\*].

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If any Indemnified Party shall obtain a refund of all or any part of any Tax paid by the Company such Indemnified Party shall, provided no default by the Company in the payment of any amount due hereunder, has occurred and is continuing, pay the Company an amount equal to the amount of such refund, including interest received or credited and attributable thereto, plus any net Tax benefit (or minus any net Tax detriment) realized by such Indemnified Party as a result of a payment made pursuant to this sentence or as a result of the receipt or accrual of such refund, including interest received or credited and attributable thereto. If any Indemnified Party shall have paid to the Company any refund of all or part of any Tax paid by the Company and it is subsequently determined that such Indemnified Party was not entitled to the refund, such determination shall be treated as the imposition of a Tax for which the Company is obligated to indemnify such Indemnified Party pursuant to the provisions of this Section 9.06.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If any claim or demand is asserted in writing with respect to a Tax indemnified hereunder, such Indemnified Party shall in good faith notify the Company of such claim or demand within [\*] Business Days of receipt thereof; provided, however, that failure to give such notification shall not affect such Indemnified Party's entitlement to indemnification hereunder unless and only to the extent such failure shall materially and adversely prejudice the ability of the Company to defend itself or any Indemnified Party against any such action, claim, demand, proceeding or suit. If the Company shall so request within [\*] days after receipt of such notice, such Indemnified Party shall in good faith at the Company's expense contest the imposition of such Tax; provided, however, that such Indemnified Party may in its sole discretion select any applicable forum for such contest and determine whether any such contest shall be by (i) resisting payment of such Tax, (ii) paying such Tax under protest or (iii) paying such Tax and seeking a refund thereof; provided further, however, that at such Indemnified Party's option such contest shall be conducted by the Company in the name of such Indemnified Party (subject to the preceding proviso) (it being understood that the Company shall not be permitted to contest the imposition of such Tax in the name of such Indemnified Party without the prior written consent of such Indemnified Party). In no event shall such Indemnified Party be required or the Company be permitted by such Indemnified Party to contest the imposition of any Tax for which the Company is obligated to indemnify pursuant to this Section 9.06 unless (A) such Indemnified Party shall have received from the Company (x) an indemnity reasonably satisfactory to such Indemnified Party for any liability, expense or loss arising out of or relating to such contest and (y) an opinion of tax counsel to the Company furnished at the expense of the Company to the effect that a reasonable basis exists for contesting such claim; (B) the Company shall have agreed to pay such Indemnified Party on demand all reasonable costs and expenses that such Indemnified Party may incur in connection with contesting such claim (including all costs, expenses, losses, reasonable legal and accounting fees, disbursements, penalties, interest and additions to tax); (C) the Company shall be in compliance with all of their obligations under this Agreement and shall have acknowledged, in a manner reasonably satisfactory to the Servicer, its liability hereunder to indemnify the Indemnified Parties in respect of such Tax; (D) such Indemnified Party shall have determined that the action to be taken will not result in a material risk of sale, forfeiture or loss of, or the creation of any Lien (except if the Company shall have adequately bonded such Lien or otherwise made provision to protect the interests of such Indemnified Party in a manner reasonably satisfactory to such Indemnified Party) on any property or rights of such Indemnified Party, or any portion thereof or any interest therein; and (E) if such contest shall be conducted in a manner requiring the payment of the claim, the Company shall have paid the amount required. Notwithstanding anything contained in this Section 9.06, an Indemnified Party shall not be required nor shall the Company be permitted by such Indemnified Party to contest or continue to

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contest in the name of an Indemnified Party the imposition of any Tax for which the Company is obligated to indemnify pursuant to this Section 9.06 if such an Indemnified Party shall waive in writing its rights to indemnification under this Section 9.06 with respect to such Tax. With respect to any claim the contest of which is conducted by an Indemnified Party under this Section 9.06(d), provided that the requirements of clauses (A) through (E) of the second sentence have been satisfied in respect of the contest of such claim, such Indemnified Party shall notify the Company in writing of any potential settlement or compromise of such claim before such Indemnified Party agrees to such settlement or compromise and, if the Company promptly (and, in any event, within [\*] Business Days following such notification) instructs the Indemnified Party in writing not to agree to such settlement or compromise based on the Company's good faith, commercially reasonable discretion, then such Indemnified Party shall not agree to such settlement or compromise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) All amounts in respect of Servicing Fees and reimbursement of Services Expenses payable by or on behalf of the Company pursuant to this Agreement shall be made without set-off or counterclaim and free and clear of and without deduction for or on account of all Taxes unless the Company is required by law to make any such deduction or withholding. If any Taxes, by reason of a change in Law, treaty or administrative practice publicly announced after the date hereof, are required to be deducted or withheld from [\*] payable by or at the behest of any United States Subsidiary of the Company pursuant to this Agreement, the Company shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) pay to the Person entitled to such payment such additional amounts, in the same currency as such payment as may be necessary in order that the amount of such payment received by such Person on the date of such payment, after deduction or withholding for all such Taxes, will be equal to the amount that such Person would have received if such Taxes had not been deducted or withheld;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) pay to the relevant authority within the period for payment permitted by Applicable Law the full amount of the deduction or withholding; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) provide to the Servicer evidence of payment to the relevant authority of all amounts deducted or withheld as aforesaid.

**ARTICLE X** 

**TERM; RIGHT TO TERMINATE; RESIGNATION;** 

**CONSEQUENCES OF EXPIRATION, TERMINATION,** 

**RESIGNATION OR REMOVAL; SURVIVAL** 

Section 10.01. **Term**. This Agreement shall have an initial term commencing on the Closing Date and ending on the date that is the [\*] anniversary thereof (the "**Initial Term**"), which Initial Term shall automatically renew for successive [\*]-year periods (each such [\*]-year period, a "**Renewal Term**" and, together with the Initial Term, the "**Term**") unless and until the Company or the Servicer provides the other Party with written notice of non-renewal at [\*] year prior to the end of the Initial Term or the then-current Renewal Term, as applicable. During the Term, this Agreement shall not be terminable by either Party except as expressly provided in this Article X.

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Section 10.02. **Right to Terminate**. (a) At any time during the term of this Agreement, the Servicer shall in accordance with Section 10.02(c) be entitled to terminate this Agreement if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) [\*]; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) [\*]; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) [\*]; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) [\*]; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) [\*]; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) [\*]; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) [\*]; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) At any time during the term of this Agreement, the Company shall be entitled to terminate this Agreement if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) [\*]; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) [\*]; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) [\*]; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) [\*]; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) [\*].

Section 10.03. **Partial Termination.** If:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) [\*];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) [\*]; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) [\*]

[\*].

Section 10.04. **Consequences of Expiration, Termination, Resignation or Removal**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Accrued Rights**. [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Replacement Servicer**. (i) [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) [\*].

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Payment of Fees and Expenses**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Notices**. (i) Upon the expiration or termination of this Agreement in accordance with this Article X, or upon the resignation by the Servicer with respect to the performance of the Services for any or all of the Aircraft Assets or, in connection with any Acquisition-Related Services, any Excluded Assets, the Servicer will promptly forward to the Company any notices, reports and communications received by it from any relevant Lessee during the one (1) year immediately after expiration, termination, resignation or removal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Company will notify promptly each relevant Lessee and any relevant third party of the termination, resignation or removal of the Servicer under this Agreement in relation to any of the Aircraft Assets and will request that all such notices, reports and communications thereafter be made or given directly to the Replacement Servicer and the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Transition**. [\*].

Section 10.05. **Survival**. [\*].

**ARTICLE XI** 

**INDEMNIFICATION** 

Section 11.01. **Indemnity**. (a) Notwithstanding any other provision of this Agreement but subject to 11.01(c) below, the Company assumes liability for, and hereby agrees to jointly and severally indemnify and hold harmless on an After-Tax Basis each of the Indemnified Parties from any and all Losses (other than Taxes, it being understood indemnification for Taxes is addressed in Section 9.06) that may be imposed on, incurred by or asserted against any Indemnified Party directly or indirectly arising out of, in connection with or related to this Agreement or the performance of the Services (including any action which the Servicer is requested to take or requested to refrain from taking by the Company Group) or from errors in judgment or omissions by the Servicer under this Agreement or otherwise with respect to the provision of services or otherwise by the Servicer under this Agreement; **provided**, **however**, **that** such indemnity shall not apply to the extent that such Losses are finally adjudicated to have been directly caused by the willful misconduct or gross negligence of the Servicer (or a Servicer Delegate, but only in respect of the Services delegated to it) in respect of its obligation to apply the Standard of Care or the Conflicts Standard in respect of its performance of the Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Indemnified Party agrees to give the Company prompt notice of any action, claim, demand, discovery of fact, proceeding or suit for which the applicable Indemnified Party intends to assert a right to indemnification under this Agreement; **provided**, **however**, **that** failure to give such notification shall not affect such Indemnified Party's entitlement to indemnification under this Section 11.01 except to the extent such failure results in actual material prejudice to the Company or the Guarantor with respect to the action, claim, demand, discovery of fact, proceeding or suit for which a right of indemnification is sought.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Procedures for Defense of Claim:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) [\*].

Section 11.02. **Waiver of Certain Claims; Special Indemnity**. The Company does hereby (a) assume liability for and agree to indemnify and hold harmless on an After-Tax-Basis, in accordance with the provisions of this Article XI, each of the Indemnified Parties from any and all Losses that may be imposed on, incurred by or asserted against any Indemnified Party directly or indirectly arising out of, in connection with or related to any claims of shareholders or creditors of any Person within the Company Group and any claims ("**Shadow Director/Related Company Claims**") that may be made by or on behalf of any Person against any Indemnified Party which are based on any Indemnified Party being (or allegedly being) a shadow director of, or a related company to, any Person within the Company Group under applicable Irish law or any similar concept under any other Applicable Law; (b) waive, and shall cause each other Person within the Company Group to waive, any and all Shadow Director/Related Company Claims that may be made by or on behalf of any Person within the Company Group against any Indemnified Party; (c) agree not to sue, and to cause each other Person within the Company Group not to sue, upon any such Shadow Director/Related Company Claims; and (d) agree that any amounts awarded to or received by any Person within the Company Group arising out of or related to any such Shadow Director/Related Company Claims (whether such claims were made by or on behalf of any Person within the Company Group or by a third party (including any liquidator)) shall be paid over to the applicable Indemnified Party.

Section 11.03. **Continuing Liability under Other Agreements**. The Servicer understands, acknowledges and agrees that any limitation on the liability of the Servicer under this Agreement is not intended to, and shall not be construed to, limit the liability of SMBC Aviation Capital or any of its Affiliates under any other Agreement (the "Other Agreements"), including, without limitation, (i) [\*], (ii) [\*] and any documents, instruments or agreements entered into in connection therewith, and (iii) any agreement (other than the Servicing Agreement) in respect of the sale, lease, provision of services for any Aircraft, Engines or Aircraft equipment. Any liability of SMBC Aviation Capital or any of its Affiliates under any Other Agreement shall not give rise to any claim for indemnification in favor of any Indemnified Party under this Agreement.

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**ARTICLE XII** 

**MISCELLANEOUS** 

Section 12.01. **Assignment and Delegation**. Neither Party shall assign, delegate or subcontract this Agreement or all or any part of its rights or obligations hereunder to any Person without the prior written consent of all other Parties; **provided, however, that** (i) the Servicer may delegate or subcontract all or any part of its obligations to any Person without the prior written consent of the Company (a "**Servicer Delegate**"); (ii) the foregoing provisions on assignment and delegation shall not limit the ability of the Servicer to contract with any Person, including any of its Affiliates, for Services provided under this Agreement (subject to the terms hereof) and (iii) the Servicer may assign its right to receive compensation for the performance of all or any part of the Services without the prior written consent of the Company. Any assignment, delegation or contract pursuant to this Section 12.01 shall not require any approval pursuant to Section 8.02 and no assignment, delegation or contract pursuant to this Section 12.01 shall release the Servicer from (and the Servicer shall remain primarily liable under this Agreement for) its obligations hereunder.

Section 12.02. **Documentary Conventions**. The Documentary Conventions shall govern this Agreement.

Section 12.03. **Power of Attorney**. The Company shall and shall cause each other Person within the Company Group, to appoint the Servicer and its successors, and its permitted designees and assigns, as their true and lawful attorney-in-fact pursuant to the form of Power of Attorney attached as Schedule 12.03 to this Agreement (with such modifications as are necessary under the laws of the jurisdictions in which such Persons are organized). All services to be performed and actions to be taken by the Servicer pursuant to this Agreement shall be performed for and on behalf of the Company. The Servicer shall be entitled to seek and obtain from the Company (and/or any other Person within the Company Group as appropriate) a power of attorney in respect of the execution of any specific action as the Servicer deems appropriate.

Section 12.04. **Certain Information**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to Section 12.04(b), each of the Parties agrees that any information received by a Party pursuant to the terms of this Agreement is confidential and will not be disclosed by such Party to third parties without the written consent of the other Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding Section 12.04(a) and without prejudice to Section 12.04(c), the Parties shall be entitled, without any consent referred to therein, to disclose the information referred to therein: (i) in the case of the Servicer only, on a confidential basis to its Affiliates or Representatives, (ii) as required by any Applicable Laws or statute, court or administrative order or decree or governmental ruling or regulation or to any Governmental Authority having jurisdiction over either Party or by any subpoena or similar legal process, (iii) on a confidential basis, to the auditors, independent insurance brokers, legal or other professional advisors of either Party, (iv) if any of the same is or shall become publicly known other than as a result of a breach by such Party of this Section 12.04, (v) if such disclosure is necessary to effect any registration of any Aircraft or Engine with any relevant authority, (vi) if such information was thereafter lawfully received by such Party (or its Representative) from a third party that, to such Party's (or its

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Representative's) knowledge, was not under an obligation of confidentiality to the other Party, (vii) to the extent required by the terms of this Agreement or (viii) to the extent that such information has been independently developed by the disclosing Party without reference to any information provided pursuant to, or in connection with, this Agreement (ix) by the Company or its Representative to any rating agency to the extent required in connection with rating the Company or the Guarantor, or any of the Company's direct or indirect shareholders, or any of such Person's debt or other securities, (x) to such other Persons as reasonably necessary for the purposes of asserting or defending of any claim or dispute under this Agreement, (xi) to any Replacement Servicer, Conflict Representative, or, in the case of the Company or the Guarantor to any Person providing services in respect of the Excluded Assets to the extent necessary or desirable to provide such services and (xii) in the case of the Company and any member of the Company Group only, (A) any information on a confidential basis to its Subsidiaries and (B) the information contemplated by Section 5.01 (*Information Requirements*) of the Investor Agreement to the Investors on the basis of the restrictions set out in Section 5.02 (*Confidentiality)* of the Investor Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Parties agree:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) [\*]; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) [\*]; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) [\*].

Section 12.05. **Guarantee**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Guarantor hereby irrevocably and unconditionally:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) guarantees, as a primary obligation, to the Servicer and its Affiliates the due and punctual payment to the Servicer by the Company of all monies due from the Company hereunder and will pay to the Servicer from time to time, on the first Payment Date falling at least [\*] Business Days after written demand therefor, any and every sum of money which the Company shall at any time be liable to pay to the Servicer hereunder; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) agrees, as a primary obligation, to jointly and severally indemnify the Servicer from time to time on demand from and against any Losses incurred by the Servicer as a result of any obligation of the Company to pay to the Servicer any amounts hereunder being or becoming void, voidable, unenforceable or ineffective as against the Company, for any reason (whether or not known to the Servicer), the amount of such Losses being

the amount which the Servicer would otherwise have been entitled to recover from the Company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) guarantees, the due and punctual performance of all other obligations of the Company to the Servicer under the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Guarantor acknowledges that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) neither its above-described liability nor the rights, powers and remedies conferred on the Servicer by this Section 12.05 or by Applicable Law shall be discharged, impaired or otherwise affected by any act, event or omission which would otherwise operate to discharge, impair or otherwise affect such liability or such rights, powers or remedies, and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) so long as it is under the above-described liability, it shall not exercise any rights or remedies which it may at any time have to be indemnified by or claim any contribution from the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding any other provision of this Agreement, the obligations of the Guarantor hereunder shall be limited to an aggregate amount equal to the largest amount that would not render its obligations hereunder subject to avoidance under Section 548 of the Bankruptcy Code of the United States or any comparable provisions of any applicable fraudulent conveyance or fraudulent transfer law or similar law of any state, nation or other governmental unit.

[*The remainder of this page is left blank and the signature pages follow*.]

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IN WITNESS WHEREOF, this Agreement has been duly executed on the date first written above.

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| | |
|:---|:---|
| **SMBC AVIATION CAPITAL LIMITED** | **SMBC AVIATION CAPITAL LIMITED** |
| By: | /s/ Peter Barrett |
|  | Name: Peter Barrett |
|  | Title: Director |

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- Signature Page -

- Servicing Agreement -

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| | |
|:---|:---|
| SUMISHO AIR LEASE CORPORATION DAC | SUMISHO AIR LEASE CORPORATION DAC |
| By: | /s/ Noriyuki Hiruta |
|  | Name: Noriyuki Hiruta |
|  | Title: Chief Executive Officer |

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- Signature Page -

- Servicing Agreement -

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| | |
|:---|:---|
| SUMISHO AIR LEASE CORPORATION | SUMISHO AIR LEASE CORPORATION |
| By: | /s/ Noriyuki Hiruta |
|  | Name: Noriyuki Hiruta |
|  | Title: Chief Executive Officer |

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- Signature Page -

- Servicing Agreement -

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**SCHEDULE 2.02(a)** 

**AIRCRAFT ASSETS SERVICES** 

The provision of the Services set forth in this Schedule 2.02(a) will be subject, in all cases, to (a) the Servicer receiving such information from a Person in the Company Group as is required by the Servicer to provide the Services in accordance with the terms of the Servicing Agreement and (b) such approval as may be required or such limitations as may be imposed pursuant to the Transaction Approval Requirements, and the provisions of this Schedule 2.02(a) shall be deemed to be so qualified. All Services set forth in this Schedule 2.02(a) shall be performed in accordance with and subject to the Standard of Care or the Conflicts Standard.

**SECTION 1. LEASE SERVICES.** 

**Section 1.1 Collections and Disbursements.** In connection with each Lease of an Aircraft Asset under which any Person within the Company Group is the lessor, the Servicer will:

(a) invoice the lessee or otherwise arrange, as the Servicer deems reasonably appropriate, on behalf of such Person within the Company Group, for all payments due from the Lessee, including Rents, Deposits, Utilization Rent, aircraft or engine redelivery payments, late payment charges and any payments in respect of taxes and other payments (including technical, engineering, insurance and other recharges) due under the relevant Lease to be invoiced, and direct the Lessee, subject to the terms of the Lease, to make such payments to such account designated as the "Rental Account" (as set forth on Schedule 4.01(c)) or to such other accounts as specified in writing by the Company;

(b) review from time to time, as deemed necessary by the Servicer (and to the extent required to be adjusted pursuant to the provisions of such lease), the level of Rents, Deposits, Utilization Rent, and such other amounts that may be adjusted under a Lease and shall propose to the relevant Lessee and/or make such adjustments to the Rents, Deposits, Utilization Rent, and other amounts as are required;

(c) [\*];

(d) [\*], advise the Company to apply any payments of any type received from any Lessee, or to make any payments payable to a Lessee; and

Sch. 2.02(a)-1

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(e) provide for the safekeeping and recording of any letters of credit, guarantees or other credit support (other than cash and cash equivalents) held as part of Deposits or Utilization Rent and the timely renewal or drawing on or disbursement thereof as provided under the applicable Lease or other Aircraft Assets Related Document or otherwise in accordance with this Schedule 2.02(a).

**Section 1.2 Maintenance.** The Servicer will perform or arrange to have performed the following technical services relating to the maintenance of the Aircraft Assets:

(a) to the extent feasible under the terms of the applicable Aircraft Assets Related Documents, reviewing a Lessee's technical recordkeeping procedures, maintenance status listings on each Aircraft Asset, enforcing Lease provisions regarding maintenance recordkeeping and data and, to the extent the Servicer deems reasonably necessary or appropriate, physical inspection of the Aircraft Assets on a sampling basis consistent with the Standard of Care and the terms of the applicable Aircraft Assets Related Documents;

(b) confirm the air authority approval status of a Lessee's proposed maintenance program and proposed maintenance performer under any new Lease of any Aircraft Assets under which any Person within the Company Group is, or following the delivery of the related Aircraft Asset will be, the lessor.

(c) in connection with a termination or expiration of a Lease under which any Person within the Company Group is, or following the delivery of the related Aircraft Asset will be, the lessor:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) arrange for the appropriate technical inspection of the Aircraft Asset for the purpose of determining if the re-delivery conditions under the Lease have been satisfied;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) maintain a record of all material reports and other written materials (including any relevant reconciliation
statements) received or generated by the Servicer in connection with such inspection and provide reasonable access to such reports to the relevant Persons within the Company Group;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) on the basis of the final inspection and available records, determine whether the lessee has complied with all
required airworthiness directives and mandatory modifications, and establish the status of compliance with airframe and engine manufacturer service bulletins and lessee-originated modifications undertaken, in each case with respect to the Aircraft
Asset and as required by the Lease;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) (A) determine whether the lessee has satisfied the re-delivery conditions applicable to the Aircraft Asset specified in the Lease and negotiate any modifications, repairs, refurbishments, inspections or overhauls to or deviations from such conditions that the Servicer deems reasonably necessary or appropriate,
(B) calculate and advise on the application of any available deposits, utilization rent or other payments under, or in connection with, the Lease and (C) maintain a record of the satisfaction of such conditions (in the form of an
acceptance certificate) and accept re-delivery of the Aircraft Asset; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) determine the need for, procure and monitor (as provided in clause (a) above) the performance of any
required services (for example, engineering, maintenance, and refurbishment services) of the Aircraft Asset upon re-delivery, including compliance with applicable airworthiness directives, service bulletins
and other modifications which the Servicer may deem reasonably necessary or appropriate for the marketing of the Aircraft Asset.

Sch. 2.02(a)-2

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(d) consider and, to the extent the Servicer deems reasonably necessary or appropriate, approve any lessee-originated modifications to any Aircraft Asset submitted by any lessee for approval:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) which the Servicer reasonably determines would not result in a material diminution in value of the Aircraft
Asset or the interests of any Person within the Company Group; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) which are approved by the Company.

(e) determine the amount (if any) that the relevant Person within the Company Group is obliged to contribute pursuant to the provisions of a Lease (taking into account where applicable the amount of Utilization Rent paid with respect to such Lease and the receivables position of the related Lessee) to the cost of complying with any modification requirements, maintenance contribution requirements, redelivery condition payment requirements, airworthiness directives and similar requirements; and

(f) arrange and supervise appropriate storage and any required on-going maintenance of any Aircraft Asset following termination of a Lease for any reason and re-delivery of the Aircraft Asset thereunder and prior to delivery of such Aircraft Asset to a new lessee or purchaser.

**Section 1.3 Insurance.** 

(a) The Servicer shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) negotiate the insurance provisions of any Lease or other agreement affecting any of the Aircraft Assets
(excluding contracts of insurance), with such provisions to include such minimum coverage amounts with respect to hull and liability insurance as required by the Insurance Guidelines or notify the Company of any shortfalls in coverage that may
require the Company to procure supplemental insurance in respect of any such shortfalls;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) monitor the performance of the obligations of each lessee relating to insurance requirements under the relevant
Lease;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) provide relevant insurance brokers with such information as may be required for the Company to obtain
contingent coverage for each Aircraft Asset, including hull and liability insurance equal to the minimum coverage amounts set out in the Insurance Guidelines; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) inform the Company of any settlement offers received by the Servicer from a lessee or its insurer with respect
to any claim of damage or loss in excess of $[\*] (in 2025 Dollars) with respect to the relevant Aircraft Asset and provide the Company with copies of all relevant documentation related thereto and such other additional information from the relevant
lessee's or the insurer's agents, brokers or adjusters as the Company may reasonably request and, upon direction from the Company that any

Sch. 2.02(a)-3

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settlement offer received by the Servicer related thereto is acceptable (which direction, if not received fifteen (15) days after such advisement, shall be deemed to be a direction not to accept such settlement offer), forward to the Company's insurance broker the appropriate documentation, including releases and any indemnities required in connection with such releases, to give effect to such settlement offer and request the execution of such documentation by or on behalf of the Company.

(b) For the avoidance of doubt, the Servicer shall not be required to undertake any activity or perform any service that would require the Servicer to be registered as an "insurance intermediary" pursuant to the relevant national law of the EEA Member State transposing Directive 2016/97/EU in which the Servicer is incorporated.

**Section 1.4 Administration.** The Servicer shall administer each Lease in accordance with its terms and as otherwise specifically addressed herein.

**Section 1.5 Enforcement.** The Servicer shall take commercially reasonable steps to enforce the obligations to the relevant Person within the Company Group of the Lessee and any other parties under the Aircraft Assets Related Documents delivered by the Company to the Servicer (including any guarantees of the obligations of the Lessee). Following any default by a Lessee under the applicable Lease, the Servicer will take all such commercially reasonable steps as it deems reasonably necessary or appropriate to preserve and enforce the rights of the relevant Person within the Company Group under the applicable Lease, including entering into negotiations with such Lessee with respect to the restructuring of such Lease or declaration of an event of default under the applicable Lease, drawing on or directing the Company on making disbursement of any deposits, utilization rent or any letters of credit, guarantees or other credit support thereunder, voluntary or involuntary termination of the Lease and repossession of the Aircraft Asset that is the subject of the Lease, and pursuing such legal action with respect thereto, and instructing legal counsel, and incurring other costs related to enforcement actions to preserve and enforce the rights of the relevant Person within the Company Group, as the Servicer deems reasonably necessary or appropriate.

**Section 1.6 Lease Modifications.** Subject to the Transaction Approval Requirements, the Servicer shall be authorized to make such amendments and modifications to any Lease as it shall deem reasonably necessary or appropriate. The Servicer may waive, or elect not to invoice or charge for, overdue interest due from any Lessee under any Lease on any default in payment of rent, utilization rent or other amount thereunder.

**Section 1.7 Options and Other Rights.** Subject to the Transaction Approval Requirements, the Servicer shall be authorized to take such action as it shall deem reasonably necessary or appropriate with respect to:

(a) the exercise by any Lessee or other party of any option or right affecting the applicable Aircraft Asset or the applicable Lease, consistent with the terms of any such option or right; and

(b) the exercise on behalf of any Person within the Company Group of any right or option that such Person (or such owner) may have with respect to any of the Aircraft Assets or the Leases.

Sch. 2.02(a)-4

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**Section 1.8 Appraisal Services.** The Servicer shall arrange at least once each year and in no event later than October 31 of each year, for the delivery to the Company of appraisals of the Appraised Value of each of the Aircraft Assets. In addition, the Servicer will obtain the appraisals and return condition report with respect to newly acquired Aircraft Assets that are required to be obtained under the Long Term Support Agreement.

**SECTION 2. CONCENTRATION THRESHOLDS, INTERNATIONAL INTERESTS** 

**Section 2.1 Certain Matters Relating to Concentration Thresholds.** 

(a) **Concentration Thresholds Generally**. The Servicer shall use reasonable commercial efforts to assist the Company in its compliance with any concentration and investment limitations as set forth in the annual business plan of the Company which shall have been notified to the Servicer on or before 31 October of the preceding year ("**Concentration Limits**") solely as such Concentration Limits pertain to Aircraft Assets and shall promptly inform the Company of any proposed transaction involving an Aircraft Asset that it reasonably determines may result in such Concentration Limits being exceeded, and the Company shall promptly provide to the Servicer any information that the Servicer may reasonably require in connection with such Concentration Limits in order to comply with the provisions of this Section 2.1 of Schedule 2.02(a). The Servicer shall not enter into any such transaction other than pursuant to the terms of Section 2.1(c) of this Schedule 2.02(a) below.

(b) **Present Concentration Limits**. Annex 2 sets forth the Concentration Limits that are set forth in the business plan of the Company for the financial year 2026. In the absence of any notification of updated Concentration Limits pursuant to Section 2.1(a) above, the Servicer may rely on the previously advised Concentration Limits for all purposes relating to the Services and this Agreement.

(c) **Directions to Servicer**. The Servicer shall not enter into any transaction with respect to which it has provided notice pursuant to Section 2.1(a) of this Schedule 2.02(a) until the Company has provided a written confirmation to the Servicer to the effect that such transaction will not result in any violation of the Concentration Limits and the Servicer shall be entitled to rely upon such confirmation for all purposes of the Servicing Agreement (including this Schedule 2.02(a)).

**Section 2.2 International Interests.** In connection with any Lease of an Aircraft Asset entered into after the date of this Agreement, the Servicer's sole responsibility in respect of registering at the International Registry an International Interest shall be to appoint legal counsel selected by the Servicer as its "professional user entity" to make such registration on the relevant Person's behalf and seek the consent of the Lessee to such registration.

Sch. 2.02(a)-5

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**Section 3. Lease Marketing.** 

(a) Subject to the Transaction Approval Requirements, the Servicer shall provide and perform lease marketing services with respect to the Aircraft Assets and in connection therewith is authorized:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to negotiate and enter into any binding or non-binding commitments for
a Lease of an Aircraft Asset on behalf of and in the name of the relevant Person within the Company Group; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to include within any commitment for a Lease of an Aircraft Asset, and/or effect, any intermediate Lease or
Leases through any Person within the Company Group that the Servicer deems reasonably necessary or appropriate.

(b) Unless otherwise approved in accordance with the Transaction Approval Requirements, any Lease negotiated by the Servicer shall include the Core Lease Provisions and the Servicer shall commence the negotiation of any commitment for a Lease or Leases of Aircraft Assets in a manner consistent with the Standard of Care [\*]:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) [\*];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) [\*];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) [\*];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) [\*];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) [\*]; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) [\*].

[\*].

(c) Subject to the Transaction Approval Requirements, the Servicer is authorized to execute and deliver binding Leases and related agreements on behalf of the relevant Person within the Company Group based on the foregoing procedures.

(d) The Servicer shall deliver any Aircraft Asset to the applicable Lessee pursuant to the terms of the documentation of the Lease or Leases of such Aircraft Asset, including upon an extension of such Lease or Leases.

**SECTION 4. SALES OF AIRCRAFT AND ENGINES.** 

(a) Subject to the Transaction Approval Requirements, the Servicer shall provide and perform sales services with respect to the Aircraft Assets at, and on a basis consistent with, the direction from time to time of the Company, and, in connection therewith, is authorized to enter into any binding or non-binding commitment for a sale of a Aircraft Asset on behalf of (through a power of attorney) and in the name of the relevant Person within the Company Group; provided, however, that, except as otherwise required in accordance with the terms of a Lease, the Servicer shall not enter into any sale of any Aircraft Asset or agreement to sell any Aircraft Assets without obtaining the approval of the Company pursuant to the Transaction Approval Requirements.

(b) The Servicer shall negotiate documentation of any sale and, subject to Section 4(a) of this Schedule 2.02(a), is authorized to execute and deliver binding agreements on behalf and (through a power of attorney) in the name of the relevant Person within the Company Group.

Sch. 2.02(a)-6

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(c) The Servicer shall deliver to the purchaser any Aircraft Asset pursuant to the terms of the documentation of sale.

(d) [\*].

(e) Notwithstanding any other provision in the Transaction Approval Requirements to the contrary, the Servicer shall be permitted to purchase, sell or exchange any engine relating to an Aircraft Asset or any part or components thereof or spare parts or ancillary equipment or devices furnished with an Aircraft Asset or engine at such times and on such terms and conditions as the Servicer deems reasonably necessary or appropriate in connection with its performance of the Services; provided, however, the Servicer (y) shall not be permitted to purchase or sell, or enter any order to purchase or sell, engines or spare part in a quantity in excess of that quantity deemed by the Servicer as appropriate in connection with the operation, leasing or sale of such Aircraft Assets without obtaining the prior written consent of the Company or (z) if the net (after credit for any exchanges, replacements or similar items, utilization rent paid under the applicable Lease and all other amounts payable by third parties) cash out-of-pocket purchase price of such engine or spare part exceeds $[\*] (in 2025 Dollars).

**SECTION 5. AIRCRAFT ACQUISITIONS.** 

(a) The Servicer shall provide and perform acquisition services with respect to the acquisition of prospective Aircraft Assets as approved by the Executive Management Team at, and on a basis consistent with, the direction from time to time of any member of the Executive Management Team, and, in connection therewith, is authorized:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to enter into any binding or non-binding commitment for the purchase of
a prospective Aircraft Asset on behalf of and in the name of the relevant Person within the Company Group, it being understood that any such legally binding commitment that is executed by Servicer in the name of the relevant Person within the
Company Group shall be so executed as instructed by the board of such Person and through a special power of attorney; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to include within any acquisition and/or effect any intermediate Lease or Leases through any Person within the
Company Group that the Servicer deems reasonably necessary or appropriate; provided, however, that, except as provided in Section 4(d) of this Schedule 2.02(a) above, the Servicer shall not enter into any acquisition of any prospective Aircraft
Asset or agreement to purchase any prospective Aircraft Assets other than in accordance with the Transaction Approval Requirements.

(b) The Servicer shall negotiate the documentation of any acquisition that has been approved by the Executive Management Team and is authorized to execute and deliver binding agreements for any such acquisition on behalf and (through a power of attorney) in the name of the relevant Person within the Company Group.

(c) The Servicer shall accept delivery of any prospective Aircraft Asset pursuant to the terms of the documentation of the acquisition and/or as otherwise approved by the Company.

Sch. 2.02(a)-7

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**SECTION 6. LESSEE INFORMATION.** 

[\*].

**SECTION 7. ACCOUNTS AND ACCOUNT INFORMATION.** 

(a) **Existing Accounts**. [\*].

(b) **New Accounts**. [\*].

**SECTION 8. PROFESSIONAL AND OTHER SERVICES.** 

**Section 8.1 Legal Services.** The Servicer shall arrange for such legal services, in all relevant jurisdictions, as the Servicer reasonably determines is necessary and appropriate with respect to the lease, purchase or sale of the Aircraft Assets, any amendment or modification of any Lease, the enforcement of the rights of any Person within the Company Group under any Lease, any disputes that arise with respect to the Aircraft Assets or for any other purpose that the Servicer reasonably determines is necessary or appropriate in connection with the performance of the Services. The Servicer shall arrange for such legal services (which services shall not, in any case, be deemed to include (i) services or transactions relating to capital markets transactions or novel or unique transactions or (ii) a high level of services at fiscal year-end or other times of peak activity relative to the level of services at other times) by including within the Services assistance from its Transaction Negotiation Team where it shall deem appropriate, or by retaining outside counsel acting as counsel to the Servicer or to the Company as Servicer determines is appropriate, to provide such legal services where it shall deem appropriate. The Servicer anticipates that it will

Sch. 2.02(a)-8

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use outside counsel to perform some or all the Services set forth in Section 3 of this Schedule 2.02(a). The Company recognizes, and shall cause each other Person within the Company Group to recognize, that from time to time, the Servicer will retain legal counsel to provide legal services on behalf of Persons within the Company Group and the Servicer, and the Company agrees, and shall cause each other Person within the Company Group, to waive any conflict of interest any such counsel may have with respect to any such dispute or otherwise enable the Servicer to retain such counsel on its own behalf (it being understood that notwithstanding any such waiver of a conflict of interest, any such Persons within the Company Group do not waive any rights to retain any such counsel on its own behalf if such counsel is so agreeable). For the avoidance of doubt, the Servicer and its Affiliates do not provide legal advice to the Company, any Person within the Company Group or third parties.

Sch. 2.02(a)-9

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**SCHEDULE 4.01(a)** 

**AIRCRAFT ASSETS** 

[\*]

Sch. 4.01(a)-1

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**SCHEDULE 4.01(c)** 

**BANK ACCOUNTS** 

[\*]

Sch. 4.01(c)-1

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**SCHEDULE 4.01(d)** 

**LIST OF PERSONS WITHIN THE COMPANY** 

**GROUP AND JURISDICTIONS** 

**[\*]** 

Sch. 4.01(d)-1

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**SCHEDULE 5.08** 

**REPORTING FRAMEWORK** 

[\*]

Sch. 5.08-1

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**SCHEDULE 8.05** 

**COMPANY RETAINED ACTIVITIES** 

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;Excluded Assets | Other than any Acquisition-Related Services provided in accordance with the terms of this Agreement, each of the Company and each other Person in the Company Group shall be responsible for, and the Servicer shall have no responsibility in respect of, all Excluded Assets. |
| &nbsp;&nbsp;&nbsp;Treasury, cash management and other liability management services | Each of the Company and each other Person within the Company Group shall be responsible for, and the Servicer shall have no responsibilities in respect of, all treasury functions of the Company Group including, without limitation:<br>(a) cash management; and<br>(b) currency and interest rate risk management (including the establishment of related policies and the arrangement and procurement of appropriate swap programs). |
| &nbsp;&nbsp;&nbsp;Accounting services | Each of the Company and each other Person within the Company Group shall be responsible for, and the Servicer shall have no responsibilities in respect of, all accounting functions, including, without limitation:<br>(a) the monitoring of cash receipts and disbursements and accounts payable and accounts receivable of the Company Group;<br>(b) the promulgation, maintenance, interpretation, amending and supplementing of accounting policies for the Company Group, and the review and approval of any potential exceptions to the accounting policies established by the Company Group;<br>(c) maintaining the accounting ledgers, preparing balance sheets, statements of changes in shareholders' equity and statements of income and cash flows and arranging for financial audits, as required, and for the preparation of audited financial reports for the Company Group;<br>(d) the preparation of business plans, forecasts or other similar activities. |

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Sch. 8.05-1

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;Capital markets services | Each of the Company and each other Person within the Company Group shall be responsible for, and the Servicer shall have no responsibilities whatsoever in respect of the issuance of (or the determination as to whether to issue) any securities (whether debt or equity) or loan debt by the Company or any other Person within the Company Group. |
| &nbsp;&nbsp;&nbsp;Financing services | Each of the Company and each Person within the Company Group shall be responsible for, and the Servicer shall have no responsibilities in respect of, all finance functions, including, without limitation:<br>(a) all matters relating to the arrangement and procurement of any financings of any type or nature for the Company Group;<br>(b) all matters relating to the management of borrowings and payments under such financings and the management of the respective borrowers' or issuers', as the case may be, compliance with the terms of such financings, including compliance with the reporting requirements thereunder and any computations required in connection with such reporting;<br>(c) all matters relating to the arrangement and procurement of refinancings of any type or nature of any outstanding Indebtedness of the Company Group; and<br>(d) all communications with creditors (other than trade creditors and Lessees) of any type or nature of the Company Group. |
| &nbsp;&nbsp;&nbsp;Hedging | Each of the Company and each other Person within the Company Group shall be responsible for, and the Servicer shall have no responsibilities in respect of currency and interest rate risk management (including the establishment of related strategies and/or policies and the arrangement, procurement, execution or maintenance of appropriate hedging programs or transactions). |
| &nbsp;&nbsp;&nbsp;Tax | Each of the Company and each other Person within the Company Group shall be responsible for, and the Servicer shall have no responsibilities in respect of, any Tax matters, including, without limitation, the preparation and filing of corporate and tax returns of each Person within the Company Group with any Governmental Authority. |

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Sch. 8.05-2

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| | |
|:---|:---|
|  | The Servicer shall be under no obligation to coordinate with the Company Group's Tax advisor but may elect to do so from time to time depending on the prevailing facts and circumstances it being understood and agreed that the Servicer shall bear no responsibility for Taxes that may arise in connection with transactions entered into between any member of the Company Group and any other Person (including any other member of the Company Group and the Servicer and its Affiliates). Where the Servicer elects to obtain advice from the Company Group's Tax advisor, no pre-approval from the Company Group shall be needed where expected fees are less than $[\*] (or its equivalent in any other currency). Operating procedures will be established between the Servicer and the Company Group to ensure that operational efficiency is maximized with respect to transactions for which the Servicer has responsibility pursuant to this Agreement.<br>For the avoidance of doubt, coordination with the Company Group's tax advisors does not constitute the provision of tax services by the Servicer. |
| &nbsp;&nbsp;&nbsp;Compliance, corporate legal matters and KYC | Each of the Company and each other Person within the Company Group shall be responsible for, and the Servicer shall have no responsibilities in respect of, all corporate secretarial activities and other matters related to the existence of any Person within the Company Group (including as regards providing corporate documents and/ or such information to banks, financiers and other counterparts for the purpose of their know-your-customer or compliance related checks). Without limiting the generality of the foregoing, each Person within the Company Group that holds title to and/or leases any Aircraft Asset shall be responsible for appointing an administrator and obtaining from the International Registry all approvals as may be required in order for such Person to have access to the International Registry for all purposes as may be required to perform the obligations of the Company and/or such Person under any Lease or contract of sale. However, the Servicer will coordinate with the Company Group to notify the applicable Person in the Company Group on a timely basis (together with applicable information required for the Company Group to conduct this Company Retained Activity) regarding matters solely relating to the Services that the Servicer is aware requires company secretarial activity (including holding of board meetings and provision of corporate documents to counterparties) or registrations and discharges on the International Registry (including leases and sales), or approvals thereof, on a timely basis. |

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Sch. 8.05-3

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| | |
|:---|:---|
|  | Each of the Company and each other Person within the Company Group shall be responsible for, and the Servicer shall have no responsibilities in respect of, all matters relating to the holders of the share capital or membership or beneficial interest of any Person within the Company Group.<br>Each of the Company and each other Person within the Company Group shall be responsible for, and the Servicer shall have no responsibilities in respect of, any know-your-customer (KYC) or compliance related checks, diligence and/ or screening to be conducted on customers, suppliers, servicers or vendors to the Company and/ or any other Person within the Company Group.<br>Each of the Company and each other Person within the Company Group shall be responsible for, and the Servicer shall have no responsibilities in respect of, all legal and regulatory matters, including, without limitation:<br>(a) the preparation and filing of reports (if any) required to be filed with the U.S. Securities and Exchange Commission, any securities exchange or any other Governmental Authority;<br>(b) all legal services (including the negotiation of documents) not constituting the provision of Services relating to all matters described herein for which any Person within the Company Group has responsibility;<br>(c) all litigation or other legal proceedings against or brought by any Person within the Company Group; and<br>(d) (i) any obligations to any holders of outstanding Equity Interests, any holders of any securities issued by any Person within the Company Group or any Governmental Authorities and (ii) all instructions, discretion, judgments and assumptions related to such obligations. |
| &nbsp;&nbsp;&nbsp;IT | Each of the Company and each other Person within the Company Group shall be responsible for, and the Servicer shall have no responsibilities in respect of, information technology (including the provision or procurement of hardware or software and the promulgation of appropriate information technology policies). |

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Sch. 8.05-4

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;HR | Each of the Company and each other Person within the Company Group shall be responsible for, and remain liable for all Losses in respect of, and the Servicer shall have no responsibilities in respect of, any employees or contractors (other than the Servicer or contractors engaged by the Servicer for the benefit of a Person in the Company Group to the extent provided in this Agreement) of any Person within the Company Group. |
| &nbsp;&nbsp;&nbsp;Non-Aircraft Insurance | Each of the Company and each other Person within the Company Group shall be responsible for, and the Servicer shall have no responsibilities in respect of, any insurance required or customarily maintained by businesses such as the Company Group (including in respect of director and officer liability, real estate, employer liability and/or professional indemnity liability). |

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Sch. 8.05-5

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**SCHEDULE 9.01(b)** 

**FORM OF SERVICER INVOICE** 

[\*]

Sch. 9.05(a)-1

------

**SCHEDULE 9.05(a)** 

**OVERHEAD EXPENSES** 

[\*]

Sch. 9.05(a)-2

------

**SCHEDULE 9.05(b)** 

**CATEGORIES OF SERVICES EXPENSES** 

[\*]

Sch. 9.05(b)-1

------

**SCHEDULE 12.03** 

**POWER OF ATTORNEY OF [GRANTOR]** 

[\*]

Sch. 12.03-9

------

**ANNEX 1** 

**INSURANCE GUIDELINES** 

[\*]

Annex 1-

------

**INSURANCE SCHEDULE** 

**[\*]** 

Annex 1-

------

**ANNEX 2** 

**CONCENTRATION LIMITS** 

[\*]

Annex 2-

------

**ANNEX 3** 

**IRISH OPERATING GUIDELINES** 

[\*]

Annex 3-

------

**APPENDIX A** 

**CONSTRUCTION AND USAGE** 

The terms defined below have the meanings set forth below for all purposes.

"Include," "includes" and "including" shall be deemed to be followed by "without limitation" whether or not they are in fact followed by such words or words of like import.

"Writing," "written" and comparable terms refer to printing, typing, lithography or other means of reproducing words in a visible form (including electronic mail).

Any agreement or instrument or any law, rule or regulation of any Governmental Authority defined or referred to below means such agreement or instrument or such law, rule or regulation as from time to time amended, modified or supplemented, including (in the case of agreements or instruments) by waiver or consent and (in the case of such law, rule or regulation) by succession of any comparable successor law, rule or regulation and includes (in the case of agreements or instruments) references to all attachments thereto and instruments incorporated therein.

References to a Person are also to its permitted successors and assigns.

Any term defined below by reference to any agreement or instrument or any law, rule or regulation of any Governmental Authority has such meaning whether or not such agreement, instrument or law, rule or regulation is in effect.

"Agreement," "hereof," "herein," "hereunder" and comparable terms refer to the agreement in which such term appears (including all exhibits and schedules hereto) and not to any particular article, section, clause or other subdivision thereof or attachment thereto.

References to any gender include, unless the context otherwise requires, references to all genders, and references to the singular include, unless the context otherwise requires, references to the plural and vice versa.

"Shall" and "will" have equal force and effect.

References to "Article," "Section," "Clause" or another subdivision or to an attachment are, unless the context otherwise requires, to an article, section, clause or subdivision of or attachment to such agreement.

Appendix A-1

------

**DEFINITIONS** 

"**2025 Dollars**" means in relation to any amount, that such amount shall be increased by 3% per annum, commencing on 1 January 2026.

"**Acquisition Fee**" means [\*].

"**Acquisition-Related Services**" has the meaning assigned to such term in Section 5.02(b).

"**Additional Leasing Parameters**" means [\*].

"**Affiliate**" means a Person that directly, or indirectly through one or more intermediaries, controls or is controlled by, or is under common control with, the Person specified; **provided**, **however**, **that** each of the Company and its Subsidiaries, on the one part, and the Servicer and its Subsidiaries, including as an Investor, on the other part, shall not be considered to be Affiliates of each other.

"**After-Tax Basis**" means on a basis such that any payment received, deemed to have been received or receivable by any Person shall, if necessary, be supplemented by a further payment to that Person so that the sum of the two payments shall, after deduction of all U.S. federal, state, local or Irish or other foreign law Taxes, penalties, fines, interest, additions to Tax and other charges resulting from the receipt (actual or constructive) or accrual of such payments imposed by or under any U.S. federal, state, local or Irish or other foreign law or Governmental Authority (after taking into account any current deduction to which such Person shall be entitled with respect to the amount that gave rise to the underlying payment), be equal to the payment received, deemed to have been received or receivable.

"**Aggregate Gross Acquisition Costs**" [\*].

"**Aggregate Gross Proceeds**" [\*].

"**Agreement**" has the meaning assigned to such term in the Preamble.

"**Aircraft**" means any airframe together with (a) any Engine installed on such airframe (or any Engine substituted therefor), (b) Parts or components thereof, (c) spare parts or ancillary equipment or devices furnished therewith and (d) the related Aircraft Documents.

"**Aircraft Assets**" means any and all Aircraft and Orphan Engines owned by the Company Group at any time during the Term except to the extent that, and only for so long as, such Aircraft or Orphan Engines constitute Excluded Assets.

"**Aircraft Assets Related Document**" means, in relation to an Aircraft Asset, all contracts, agreements, deeds, instruments and notices relating to that Aircraft Asset.

"**Aircraft Documents**" means the records, logs, technical data, manuals and other documents relating to the maintenance and operation of an Aircraft or an Orphan Engine.

"**Anti-Money Laundering Laws**" means any laws (including the rules and regulations thereunder) of the European Union and Ireland designed to combat money laundering and terrorist financing, and promote legitimate financial record keeping and financial reporting; such as, without limitation, the Irish Criminal Justice (Money Laundering and Terrorist Financing) Acts 2010 to 2021.

Appendix A-15

------

"**Applicable Law**" with respect to any Person means any Law that applies to such Person or any of its properties or assets.

"**Appraised Value**" means with respect to any Aircraft or Engine, the average of the most recent appraisals by each of the Appraisers of the maintenance adjusted current market value of such Aircraft or Engine.

"**Appraiser**" means, collectively, Avitas, Inc., Ascend by Cirium, and IBA Group Ltd, or, in lieu of any of the foregoing, any independent appraiser that (a) is a member of the International Society of Transport Aircraft Trading ("**ISTAT**") or, if ISTAT ceases to exist, a similar professional aircraft appraisal organization, and (b) has been approved by the Company and the Servicer.

"**Approved Budget**" has the meaning assigned to such term in Section 8.01(d).

"**Approved Business Plan**" [\*].

"**Bank Accounts**" means, in relation to any Aircraft Asset and the corresponding Lease, the bank account of the relevant Person within the Company Group into which all payments made pursuant to the terms of such Lease are received.

"**Board**" means, with respect to any Person, the board of directors, board of managers, or trustees, as the case may be, of the Person specified, as applicable.

"**Budget**" has the meaning assigned to such term in Section 8.01(a).

"**Business Day**" means a day on which U.S. dollar deposits may be traded on the London inter-bank market and commercial banks and foreign exchange markets are open in New York, New York, Dublin, Ireland and Tokyo, Japan.

"**Calculation Date**" means the last day of the calendar month immediately preceding each Payment Date.

"**Cape Town Convention**" means the Convention on International Interests in Mobile Equipment and its Protocol on Matters Specific to Aircraft Equipment, concluded in Cape Town on 16 November 2001.

"**Changed Circumstances**" means [\*].

"**Closing Date**" means the date of this Agreement.

"**Company**" has the meaning assigned to such term in the Preamble.

"**Company Designated Representative**" means a natural person with sufficient experience in the aircraft leasing industry who is either employed by or being a Representative of the Company Group who is designated in writing to the Servicer (and duly authorized by the Company on behalf of itself and each member of the Company Group) to represent the Company for all purposes under this Agreement, provided that any member of the Executive Management Team or any person directly nominated by the Executive Management Team is deemed to have sufficient experience.

Appendix A-16

------

"**Company Group**" means the Company and its Subsidiaries and controlled Affiliates. Furthermore, all references to the "Company Group" in this Agreement shall constitute references to each of the Company and its Subsidiaries and controlled Affiliates individually, as well as jointly and severally, wherever the context may so require (and all agreements, covenants, representations and other provisions of this Agreement shall be construed accordingly).

"**Company Retained Activities**" has the meaning assigned to such term in Section 8.05.

"**Competitively Sensitive Information**" means any information regarding pricing of any purchase, Lease or sale of Aircraft or Engines, costs with respect to Aircraft or Engines or competitive situations such as customer opportunities or bids.

"**Competitor**" means any of the following Persons:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any commercial Aircraft leasing company that is a top 50 commercial aircraft lessor by number and by value of
aircraft (other than the Servicer and its Affiliates) as determined by ICF International or its successor or, if such entity is not providing such list, such compilation of the largest 50 commercial aircraft lessors (by number and value) as may be
agreed by the Servicer and the Company, each acting reasonably;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any Affiliate of such Person set forth in clause (a) above that is primarily engaged in commercial
aircraft leasing; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any Person primarily engaged in commercial aircraft leasing for which a Person set forth in clauses (a) or
(b) provides aircraft acquisition, leasing or disposition services or lease management services on behalf of such Person,

**provided that**, neither the Guarantor nor any other Company Group member shall constitute a Competitor for the purposes of this Agreement.

"**Concentration Limits**" has the meaning assigned to such term in Schedule 2.02(a).

"**Conflict Representative**" has the meaning assigned to such term in Section 3.02(c).

"**Conflicts Standard**" has the meaning assigned to such term in Section 3.02(b).

"**control**" (including, with its correlative meanings, "controlled by" and "under common control with") means possession, directly or indirectly, of power to direct or cause the direction of management or policies (whether through ownership of securities or partnership or other ownership interests, by contract or otherwise).

"**Core Lease Provisions**" means the lease terms set out in Appendix B.

"**Delivery**" means the transfer of title to an Aircraft Asset (or the transfer of the beneficial interest the owner of the Aircraft Asset) to a Company Group member.

Appendix A-17

------

"**Deposits**" means the deposits required under a Lease.

"**Disposition**" means, with respect to any Aircraft Asset, the sale (including pursuant to the exercise of a purchase option), total loss or other event or circumstances under which such Aircraft Asset ceases to be an Aircraft Asset.

"**Documentary Conventions**" with respect to this Agreement and any other instrument or document that states it is governed thereby, means that, except as otherwise expressly provided therein:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **No Partnership**. The Parties expressly recognize and acknowledge that this Agreement is not intended to
create a partnership, joint venture or other similar arrangement between or among any of the Parties or their respective Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Notices**. Subject to paragraph (d) below, all notices, consents, directions, approvals,
instructions, requests and other communications required or permitted by this Agreement to be given to any Person shall be in writing, and any such notice shall become effective five (5) Business Days after being deposited in the mails,
certified or registered, return receipt requested, with appropriate postage prepaid for first class mail or, if delivered by hand or courier service when received or, if sent by electronic mail, when sent (**provided that** no message is received
by the sender indicating that such message has not been received by or delivered to the intended recipient), and shall be directed to the address or email address (as applicable) of such Person set forth below:

**SMBC Aviation Capital Limited** 

Fitzwilliam 28, Fitzwilliam Street LWR

Dublin 2, D02 KF20

Ireland

Attention: [\*]

Email: [\*]

**Sumisho Air Lease Corporation DAC** 

22 Earlsfort Terrace

Dublin 2, DO2 E277

Ireland

Attention: [\*]

Email: [\*]

**Sumisho Air Lease Corporation** 

2000 Avenue of the Stars, Suite 1000N

Los Angeles, CA 90067

USA

Attention: [\*]

Email: [\*]

Appendix A-18

------

From time to time either Party may designate a new address or number for purposes of notice thereunder by notice to each other Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO THE CONFLICTS OF LAW RULES OF SUCH STATE**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Jurisdiction; Court Proceedings; Waiver of Jury Trial**. The Parties hereto agree that any suit, action or
proceeding seeking to enforce any provision of, or based on any matter arising out of or in connection with, this Agreement or the transactions contemplated hereby shall be brought in the United States District Court for the Southern District of New
York or any New York State court sitting in New York City, so long as one of such courts shall have subject matter jurisdiction over such suit, action or proceeding, and that any cause of action arising out of this Agreement shall be deemed to have
arisen from a transaction of business in the State of New York, and each of the Parties hereby irrevocably consents to the jurisdiction of such courts (and of the appropriate appellate courts therefrom) in any such suit, action or proceeding and
irrevocably waives, to the fullest extent permitted by law, any objection that it may now or hereafter have to the laying of the venue of any such suit, action or proceeding in any such court or that any such suit, action or proceeding brought in
any such court has been brought in an inconvenient forum. Process in any such suit, action or proceeding may be served on any Party anywhere in the world, whether within or without the jurisdiction of any such court.

EACH OF THE PARTIES HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Agent**. The Company and each other Person within the Company Group hereby appoints the Guarantor,
currently located at 2000 Avenue of the Stars, Suite 1000N, Los Angeles, CA 90067 (the "**Agent**") as its nonexclusive agent for service of process in connection with this Agreement. The Parties may use any other legally available
means of service of process. The Company will promptly notify the Servicer of any change in the address of the Agent; **provided**, **however**, **that** the Company will at all times maintain an agent located within New York State or
California State for service of process in connection with this Agreement.

The Servicer hereby appoints TMF Group New York, LLC currently located at 155 East 44th Street, 9th floor, New York, NY 10017 (the "**Servicer's Agent**") as its nonexclusive agent for service of process in connection with this Agreement. The Parties may use any other legally available means of service of process. The Servicer will promptly notify the Company of any change in the address of the Servicer's Agent; **provided**, **however**, **that** the Servicer will at all times maintain an agent located within New York State for service of process in connection with this Agreement.

Appendix A-19

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **Consequential Damages**. In no event will either Party be liable to any other for lost revenue, lost
profits, income tax consequences, lost savings or any other consequential damages, even if such Party has been advised of the possibility of such damages, or for punitive damages, resulting from the breach of any obligation under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **Counterparts**. This Agreement may be executed by the Parties in separate counterparts, each of which when
so executed and delivered shall be an original, but all such counterparts shall together constitute one and the same agreement. All signatures need not be on the same counterpart.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) **Entire Agreement; Amendment and Waiver**. This Agreement shall constitute the entire agreement of the
Parties with respect to the subject matter hereof and supersedes all prior written and oral agreements and understandings with respect to such subject matter. Neither this Agreement nor any of the terms hereof may be terminated, amended,
supplemented, waived or modified, except by an instrument in writing signed by the Company and the Servicer. No failure or delay of a Party in exercising any power or right thereunder shall operate as a waiver thereof, nor shall any single or
partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such a right or power, preclude any other or further exercise thereof or the exercise of any other right or power.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) **Table of Contents; Headings**. The table of contents and headings of the various articles, sections and
other subdivisions of this Agreement are for convenience of reference only and shall not modify, define or limit any of the terms or provisions hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) **Parties in Interest; Limitation on Rights of Others**. The terms of this Agreement shall be binding upon,
and inure to the benefit of, the Parties and their permitted successors and assigns and, to the extent applicable, their respective Affiliates and Representatives. Except as expressly set forth in this Agreement with respect to Affiliates and
Representatives of the Parties, nothing in this Agreement, whether express or implied, shall be construed to give any Person (including any past, present or future employee of any Person within the Company Group) (other than the Parties and their
permitted successors and assigns) any legal or equitable right, remedy or claim under or in respect of this Agreement or any covenants, conditions or provisions contained herein. In no event shall any Investor be a third-party beneficiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) **Method of Payment**. Except as otherwise agreed, all amounts required to be paid by a Party hereunder
(including in respect of any judgment or settlement entered in respect of this Agreement) shall be paid in Dollars, by wire transfer, or other acceptable method of payment, of same day funds to a Dollar account located in the United States as such
Party may specify by notice to the other Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) **Payment on Business Days**. If any payment under this Agreement is required to be made on a day other than
a Business Day, the date of payment shall be extended to the next Business Day.

Appendix A-20

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) **Past Due Payments**. Any amount payable to a Party or any of its Representatives under this Agreement
shall be paid on the date therein specified for payment of such amounts. To the extent that all or a portion of such amount is not paid on such date, such amount (or the unpaid portion thereof) shall bear interest at the Stipulated Interest Rate
from such date until and through the date that such amount has been paid in full.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) **Severability**. Any provision of this Agreement that shall be prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof and any such prohibition or unenforceability in any jurisdiction shall not
invalidate or render unenforceable such provision in any other jurisdiction. To the extent permitted by Applicable Law, each of the Company and the Servicer waives any provision of law that renders any provision of this Agreement prohibited or
unenforceable in any respect.

"**Dollar**" or "**$**" means the lawful money of the United States of America.

"**Engine**" means aircraft engines.

"**EOL Payments**" means [\*].

"**Equity Interest**" means the ordinary (common) shares in the Company.

"**EU**" means the European Union.

"**Excluded Assets**" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) an Aircraft or Orphan Engine wholly owned by any Person within the Company Group that is (at the relevant time)
Leased to a U.S. Airline, unless such Aircraft or Orphan Engine has been expressly designated an Aircraft Asset pursuant to Section 2.03(b);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any Aircraft or Orphan Engine that was previously Leased to a U.S. Airline and has not been expressly
designated an Aircraft Asset pursuant to Section 2.03(c);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any Aircraft or Orphan Engine in respect of which the obligation of the Servicer to provide Services has been
terminated in accordance with Article X; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any other Aircraft or Orphan Engine wholly owned by any Person within the Company Group that is designated in
writing by both the Company and the Servicer to be an Excluded Asset,

in each case, taking into account any Dispositions made in accordance with this Agreement.

"**Executive Management Team**" means the persons referred to as comprising "Executive Management" as defined in the Investors Agreement.

Appendix A-21

------

"**Fee Period**" means each period (a) initially, commencing on the Closing Date and ending on the initial Calculation Date and (b) thereafter, commencing on (but excluding) the most recent Calculation Date and ending on (and including) the next succeeding Calculation Date during the term of this Agreement.

"**Governmental Authority**" means any government, legislative body, regulatory, authority, court, administrative agency or commission or other governmental agency or instrumentality (or any officer or representative thereof) domestic, foreign or international, of competent jurisdiction, including the EU.

"**Gross Acquisition Costs**" means [\*].

"**Gross Proceeds**" [\*].

"**Guarantee**" means any obligation, contingent or otherwise, of any Person directly or indirectly guaranteeing any Indebtedness or other obligation of any other Person and, without limiting the generality of the foregoing, any obligation, direct or indirect, contingent or otherwise, of such Person (a) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or other obligation of such other Person or (b) entered into for purposes of assuring in any other manner the obligee of such Indebtedness or other obligation of the payment thereof or to protect such obligee against loss in respect thereof (in whole or in part); **provided**, **however**, **that** the term Guarantee shall not include (x) endorsements for collection or deposit, in either case in the ordinary course of business, (y) any guarantee by any Person within the Company Group of the obligations of another Person within the Company Group in respect of such Person's obligations in connection with any Aircraft Assets, whether as lessor, seller or otherwise, or (z) the delivery of a bond or similar instrument by or on behalf of any Person within the Company Group in connection with the detention or repossession of any Aircraft Assets or enforcement of a Lease or removal of an encumbrance.

"**Indebtedness**" means, with respect to any Person at any date of determination (without duplication), (a) all indebtedness of such Person for borrowed money, (b) all obligations of such Person evidenced by bonds, debentures, notes or other similar instruments, (c) all obligations of such Person in respect of letters of credit or other similar instruments (including reimbursement obligations with respect thereto), (d) all the obligations of such Person to pay the deferred and unpaid purchase price of property or services, which purchase price is due more than six (6) months after the date of purchasing such property or service or taking delivery and title thereto or the completion of such services, and payment deferrals arranged primarily as a method of raising finance or financing the acquisition of such property or service, (e) all obligations of such Person under a lease of (or other agreement conveying the right to use) any property (whether real, personal or mixed) that is required to be classified and accounted for as a capital lease obligation under U.S. GAAP, (f) all Indebtedness of other Persons secured by a lien on any asset of such Person, whether or not such Indebtedness is assumed by such Person, (g) any amount raised pursuant to any issue of shares which are expressed to be redeemable (other than at the option of the issuer) or are otherwise classified as borrowings or preferred equity that receives distributions (or equivalent) ahead of a common (or equivalent) class of equity and (h) all Indebtedness of other Persons Guaranteed by such Person.

Appendix A-22

------

"**Indemnified Parties**" means the Servicer and its respective Affiliates and each of the Servicer's and its respective Affiliates' Representatives.

"**Initial Term**" has the meaning assigned to such term in Section 10.01.

"**Insurance Guidelines**" means the guidelines set forth in Annex 1.

"**Insured Value**" has the meaning assigned to such term in Annex 1.

"**International Interest**" has the meaning given to such term in the Cape Town Convention.

"**International Registry**" means the registry established pursuant to the Cape Town Convention.

"**Investors**" [\*].

"**Investors Agreement**" means [\*].

"**Law**" means any law, statute, ordinance, rule or regulation or code of conduct or practice of any U.S. Federal, state or local Governmental Authority, the EU or any Irish or other foreign or international Governmental Authority.

"**Lease**" means any lease or other agreement or arrangement pursuant to which any Person (other than a Person within the Company Group) has the right to possession and use of any Aircraft Asset.

"**Lessee**" means the lessee (or equivalent Person) in respect of a Lease.

"**Lien**" means, with respect to any asset, (a) any mortgage, deed of trust, lien, pledge, encumbrance, charge, International Interest, Prospective International Interest or security interest in or on such asset, (b) the interest of a vendor or a lessor under any conditional sale agreement, capital lease or title retention agreement relating to such asset and (c) in the case of securities, any purchase option, call or similar right of a third party with respect to such securities.

"**Long Term Support Agreement**" [\*].

Appendix A-23

------

"**Losses**" means any and all liabilities, losses, damages, penalties, Taxes, payments, costs, fees, expenses and disbursements (including reasonable legal fees, expenses and related charges and costs of investigation, including in connection with enforcement of any indemnity, but excluding any punitive, special, indirect, consequential or exemplary damages or lost profits).

"**Material Adverse Effect**" means an event, condition, matter, change or effect that impacts or, insofar as reasonably can be foreseen, in the future is likely to impact, in a material adverse manner, (a) with respect to any Person other than the Servicer, the condition (financial or otherwise), properties, assets, liabilities, earnings, capitalization, shareholders' equity, licenses or franchises, businesses, operation or prospects of such Person or the ability of such Person to perform fully any of its obligations under this Agreement, and (b) with respect to the Servicer, the Servicer's liabilities, obligations, rights or benefits under the Servicing Agreement or the Servicer's ability to perform fully any of the Services.

"**Monthly Services Report**" has the meaning assigned to such term in Schedule 5.08.

"**Nonterminating Party**" has the meaning assigned to such term in Section 10.02(c).

"**Orphan Engine**" means any Engine that is not part of an Aircraft together with (a) Parts or components thereof, (b) spare parts or ancillary equipment or devices furnished therewith and (c) the related Aircraft Documents.

"**Other Assets**" means any Aircraft or Engines which are neither Aircraft Assets nor Excluded Assets.

"**Overhead Expenses**" has the meaning assigned to such term in Section 9.05(a).

"**Partial Termination**" has the meaning assigned to such term in Section 10.03(a).

"**Parts**" means any and all parts, avionics, attachments, accessions, appurtenances, furnishings, components, appliances, accessories, instruments and other equipment installed in, or attached to (or constituting a spare for any such item installed in or attached to) any Aircraft or Engine (as applicable).

"**Party**" or "**Parties**" has the meaning assigned to such terms in the Preamble.

"**Payment Date**" means the 15th day of each month; **provided**, **however**, **that**, if any Payment Date would otherwise fall on a day that is not a Business Day, the relevant Payment Date shall be the first following day which is a Business Day.

"**Permitted Liens**" means (a) Liens for taxes, assessments and governmental charges or levies not yet due, (b) Liens of any repairer or maintenance, material or storage provider arising in the ordinary course in respect of amounts not yet due and (c) any Lease.

"**Person**" means any individual, firm, corporation, limited liability company, partnership, trust, body of persons, joint venture, Governmental Authority or other entity, and shall include any successor (by merger or otherwise) of such entity.

Appendix A-24

------

"**Prime Rate**" means the rate of interest per annum publicly announced from time to time by Citibank, N.A. as its prime rate in effect at its principal office in New York City; each change in the "Prime Rate" shall be effective on the date such change is announced.

"**Pro Forma Lease**" [\*].

"**Prospective International Interest**" has the meaning given to such term in the Cape Town Convention.

"**Quarter**" means each calendar quarter.

"**Quarterly Services Report**" has the meaning assigned to such term in Schedule 5.08.

"**Relevant Information**" means all information, documents, contracts and agreements (including without limitation, Leases, operational records, maintenance status, cash collection and balances) which relate to or affect any of the Aircraft Assets or the provision of any Services or Acquisition-Related Services.

"**Renewal Term**" has the meaning assigned to such term in Section 10.01.

"**Rent Collected Fee**" means [\*].

"**Rent Fees**" means [\*].

"**Rent Payable Fee**" means [\*].

"**Rents**" means [\*].

"**Replacement Servicer**" means a replacement servicer to perform some or all of the Services under the Servicing Agreement formerly performed by the Servicer, appointed in accordance with Section 10.04(b).

"**Reporting Framework**" means a framework for regular reporting by the Servicer to the Executive Management Team that is designed to ensure prompt and efficient decision-making by the Company Group with respect to matters related to this Agreement for which Company Group input is required, as more particularly set out in Schedule 5.08.

"**Representatives**" with respect to any Person means the officers, directors, employees, advisors and agents of such Person.

"**Sales Fee**" means [\*].

"**Sanctions**" means any economic, financial or trade sanctions, export controls or similar restrictive measures, including but not limited to, those enacted, administered, imposed or enforced by the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC), the U.S. Department of State, the U.S. Department of Commerce or any other U.S. Government Entity, the United Nations Security Council, and/or the European Union and/or His Majesty's Treasury of the United Kingdom.

"**Servicer**" has the meaning assigned to such term in the Preamble.

Appendix A-25

------

"**Servicer Delegate**" has the meaning assigned to such term in Section 12.01(i).

"**Servicer Designated Representative**" means a natural person with sufficient experience in the aircraft leasing industry who is either employed by or being a Representative of the Servicer who is designated in writing to the Company (and duly authorized by the Servicer) to represent the Servicer for all purposes under this Agreement.

"**Services**" has the meaning assigned to such term in Section 2.02(a).

"**Services Expenses**" has the meaning assigned to such term in Section 9.05(b).

"**Servicing Fees**" means [\*].

"**Shadow Director/Related Company Claims**" has the meaning assigned to such term in Section 11.02.

"**Standard of Care**" has the meaning assigned to such term in Section 3.01.

"**Standard of Liability**" has the meaning assigned to such term in Section 3.03.

"**Stipulated Interest Rate**" means [\*].

"**Subsidiary**" of any Person means a corporation, company, common law or statutory trust or other entity (a) more than fifty percent (50%) of whose outstanding shares or securities (representing the right to vote for the election of directors or other managing authority) are, or (b) which does not have outstanding shares or securities (as may be the case in a partnership, joint venture or unincorporated association), but more than fifty percent (50%) of whose ownership interest representing the right to make decisions for such other entity is, now or hereafter owned or controlled, directly or indirectly, by such Person, but such corporation, company, common law or statutory trust or other entity shall be deemed to be a Subsidiary only so long as such ownership or control exists.

"**Tax**" or "**Taxes**" means all fees (including documentation, license and registration fees), taxes, assessments, levies, impositions, duties, withholdings and other charges of any nature whatsoever (including taxes based upon or measured by gross receipts, income, profits, sales, use or occupation, and value added, ad valorem, transfer, franchise, withholding, payroll, social security, employment, excise, documentary, stamp, corporation, corporation profits, advance corporation, capital duty, capital gains, capital acquisitions, wealth, vehicle registration, social insurance, and property taxes) asserted or imposed by any Governmental Authority, together with all interest, fines, penalties and additions imposed with respect to such amounts.

"**Taxpayer**" means any Person within the Company Group or any predecessor of any Person within the Company Group, or any successor to any Person within the Company Group (but not including the Servicer or any of its Affiliates).

"**Term**" has the meaning assigned to such term in Section 10.01.

"**Terminating Party**" has the meaning assigned to such term in Section 10.02(c).

Appendix A-26

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"**Termination Notice**" has the meaning assigned to such term in Section 10.02(c).

"**Transaction Approval Requirements**" has the meaning assigned to such term in Section 8.02(a).

"**U.S. Airline**" means any airline other than an airline (a) that is incorporated outside the United States, (b) which has its executive offices outside the United States and (c) with a home jurisdiction having a civil aircraft registration country code other than "N."

"**U.S. GAAP**" means generally accepted accounting principles in the United States.

"**Utilization Rent**" means the utilization rent, supplemental rent, and other similar payments (including payments analogous to or consisting of maintenance reserves) under each of the Leases.

"**Year**" means each fiscal year ending December 31 during the Term.

Appendix A-27

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**APPENDIX B** 

**CORE LEASE PROVISIONS** 

[\*]

Appendix B-2

## Exhibit 10.2

**Exhibit 10.2**

**FORM OF**

**AIR LEASE CORPORATION**

**GRANT NOTICE FOR 2023 EQUITY INCENTIVE PLAN**

**CASH AWARD (TIME-BASED)**

FOR GOOD AND VALUABLE CONSIDERATION, Air Lease Corporation (the "Company"), hereby grants to Participant named below the long-term cash incentive award specified below (the "Award"), upon the terms and subject to the conditions set forth in this Grant Notice, the Air Lease Corporation 2023 Equity Incentive Plan (the "Plan") and the Standard Terms and Conditions (the "Standard Terms and Conditions") adopted under such Plan and provided to Participant, each as amended from time to time. This Award represents the right to receive the cash amount of the Award, in U.S. Dollars, subject to the conditions set forth in this Grant Notice, the Plan, the Standard Terms and Conditions and any Individual Agreement to which the Participant is a party. This Award is granted pursuant to the Plan and is subject to and qualified in its entirety by the Standard Terms and Conditions.

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| | |
|:---|:---|
| Name of Participant:  |  |
| Grant Date:  |  |
| Total Dollar Value of the Award:  |  |
| Vesting Schedule:  | See <u>Schedule A</u> attached hereto |

---

By accepting this Grant Notice, Participant acknowledges that he has received and read, and agrees that this Award shall be subject to, the terms of this Grant Notice, the Plan, the Standard Terms and Conditions, and any Individual Agreement to which the Participant is a party.

---

| | |
|:---|:---|
| AIR LEASE CORPORATION | |
| | Participant Signature |
| By | |
| Title: | |

---

------

**<u>SCHEDULE A</u>**

The Award will be subject to time vesting conditions, and will vest as follows:

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Percentage\*</u> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Vesting Date</u> |
| 33% | [_____] |
| 33% | [_____] |
| 34% | [_____], Final Vesting Date |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

\*Whole dollars only

------

**AIR LEASE CORPORATION**

**STANDARD TERMS AND CONDITIONS FOR**

**CASH AWARD (TIME-BASED)**

These Standard Terms and Conditions apply to the long-term cash award (the "Award") granted pursuant to the Air Lease Corporation 2023 Equity Incentive Plan (the "Plan"), which is evidenced by a Grant Notice or an action of the Administrator that specifically refers to these Standard Terms and Conditions. In addition to these Terms and Conditions, the Award shall be subject to the terms of the Plan, which are incorporated into these Standard Terms and Conditions by this reference. Capitalized terms not otherwise defined herein shall have the meaning set forth in the Plan.

**1. TERMS OF THE CASH AWARD** 

Air Lease Corporation, a Delaware corporation (the "Company"), has granted to the Participant named in the Grant Notice provided to said Participant herewith (the "Grant Notice") the Award specified in the Grant Notice. This Award represents the right to receive an amount in cash, in U.S. Dollars, upon the terms and subject to the conditions set forth in the Grant Notice, these Standard Terms and Conditions, the Plan, and any Individual Agreement to which any Participant is a party, each as amended from time to time. For purposes of these Standard Terms and Conditions and the Grant Notice, any reference to the Company shall include a reference to any Subsidiary.

**2. VESTING OF THE CASH AWARD**

The Award shall not be vested as of the Grant Date set forth in the Grant Notice and shall be forfeitable unless and until otherwise vested pursuant to the terms of the Grant Notice and these Standard Terms and Conditions. After the Grant Date, subject to termination or acceleration as provided in these Standard Terms and Conditions, the Plan, or any Individual Agreement, the Award shall become vested as described in the Grant Notice with respect to the percentage of the total dollar value of the Award applicable to such vesting date as set forth in the Grant Notice.

**3. SETTLEMENT OF THE CASH AWARD** 

Except as provided in Section 4, vested portions of the Award shall be paid to the Participant, less applicable taxes and withholdings, as soon as reasonably practicable following the vesting of such Award, and in all events no later than March 15 of the year following the year of vesting (unless delivery is deferred pursuant to a nonqualified deferred compensation plan in accordance with the requirements of Section 409A of the Internal Revenue Code).

**4. TERMINATION OF EMPLOYMENT**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Notwithstanding anything contained in these Standard Terms and Conditions to the contrary, upon the Participant's Termination of Service for any reason other than termination (i) by the Company without Cause or by the Participant for

------

"Good Reason" under the circumstances described below, (ii) by reason of Participant's death or Disability or (iii) by reason of Participant's Retirement, any then unvested portion of the Award (after taking into account any accelerated vesting under this Section 4 or Section 5, or any Individual Agreement, if applicable) held by the Participant shall be forfeited and canceled as of the date of such Termination of Service (except as otherwise provided in any Individual Agreement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)*Termination due to death or Disability*. In the event of Participant's Termination of Service by reason of Participant's death or Disability, this Award shall immediately vest in full.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)*Termination by the Company without Cause or by the Participant for Good Reason*. In the event of Participant's Termination of Service by the Company without Cause or by the Participant for Good Reason, the Participant shall immediately vest on a pro-rata basis in a portion of the Award equal to the product of (a) (i) a fraction, the numerator of which is the total dollar value of the Award, multiplied by (ii) a fraction, the numerator of which is the number of days that have elapsed between the Grant Date to the date of Termination of Service (inclusive), and the denominator of which is the total number of days between the Grant Date to the Final Vesting Date as set forth in Schedule A (inclusive) minus (b) the dollar value of the Award that vested prior to such Termination of Service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)*Termination by reason of Retirement*. In the event of Participant's Termination of Service by reason of Retirement, the Participant shall immediately vest on a pro-rata basis in a portion of the Award equal to the product of (a) (i) a fraction, the numerator of which is the total dollar value of the Award, multiplied by (ii) a fraction, the numerator of which is the number of days that have elapsed between the Grant Date to the date of Termination of Service (inclusive), and the denominator of which is the total number of days between the Grant Date to the Final Vesting Date as set forth in Schedule A (inclusive) minus (b) the dollar value of the Award that vested prior to such Termination of Service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)Any portion of the Award that vests in accordance with this Section 4 shall be settled as soon as reasonably practicable following Termination of Service, and in all events no later than March 15 of the year following the year of Termination of Service (unless delivery is deferred pursuant to a nonqualified deferred compensation plan in accordance with the requirements of Section 409A of the Code) and any other portion of the Award that has not so vested shall be deemed forfeited and canceled as of the date of such Termination of Service (except as otherwise provided in any Individual Agreement).

------

**5. NO RIGHTS AS STOCKHOLDER** 

The Participant shall have no voting rights or the right to receive any dividends with respect to any shares of Common Stock or other equity securities of the Company by virtue of being granted this Award.

**6. INCOME TAXES** 

Any cash payment made to the Participant upon vesting of the Award shall be subject to applicable tax withholding and other authorized deductions.

**7. NON-TRANSFERABILITY OF THE CASH AWARD** 

The Participant represents and warrants that the Award is being acquired by the Participant solely for the Participant's own account for investment and not with a view to or for sale in connection with any distribution thereof. The Participant further understands, acknowledges and agrees that, except as permitted by the Administrator, the Award may not be sold, assigned, transferred, pledged or otherwise directly or indirectly encumbered or disposed of.

**8. OTHER AGREEMENTS SUPERSEDED** 

The Grant Notice, these Standard Terms and Conditions and the Plan constitute the entire understanding between the Participant and the Company regarding the Award. Any prior agreements, commitments or negotiations concerning the Award are superseded, except for the express terms of any Individual Agreement to which the Participant is a party.

**9. LIMITATION OF INTEREST IN THE CASH AWARD** 

Neither the Participant (individually or as a member of a group) nor any beneficiary or other person claiming under or through the Participant shall have any right, title, interest, or privilege in or to any portion of the Award subject to the Grant Notice or these Standard Terms and Conditions except as to such portion of the Award, if any, as shall have been paid to such person upon vesting of the Award. Nothing in the Plan, in the Grant Notice, these Standard Terms and Conditions or any other instrument executed pursuant to the Plan shall confer upon the Participant any right to continue in the Company's employ or service nor limit in any way the Company's right to terminate the Participant's employment at any time for any reason.

**10. RECOUPMENT**

This Award shall be subject to any recoupment, clawback or similar policies as may be adopted by the Company from time to time, including but not limited to for the purpose of complying with the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 and regulations thereunder promulgated by the Securities Exchange Commission, any of which could in certain circumstances require repayment or forfeiture of the Award.

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**11. GENERAL** 

In the event that any provision of these Standard Terms and Conditions is declared to be illegal, invalid or otherwise unenforceable by a court of competent jurisdiction, such provision shall be reformed, if possible, to the extent necessary to render it legal, valid and enforceable, or otherwise deleted, and the remainder of these Standard Terms and Conditions shall not be affected except to the extent necessary to reform or delete such illegal, invalid or unenforceable provision.

The headings preceding the text of the sections hereof are inserted solely for convenience of reference, and shall not constitute a part of these Standard Terms and Conditions, nor shall they affect its meaning, construction or effect.

These Standard Terms and Conditions shall inure to the benefit of and be binding upon the parties hereto and their respective permitted heirs, beneficiaries, successors and assigns.

These Standard Terms and Conditions shall be construed in accordance with and governed by the laws of the State of Delaware, without regard to principles of conflicts of law.

In the event of any conflict between the Grant Notice and these Standard Terms and Conditions, the Grant Notice shall control. Any Individual Agreement to which the Participant is a party shall control, to the extent such agreement contains provisions governing the Award.

All questions arising under the Plan or under these Standard Terms and Conditions shall be decided by the Administrator in its total and absolute discretion.

**12. ELECTRONIC DELIVERY** 

By executing the Grant Notice, the Participant hereby consents to the delivery of information (including, without limitation, information required to be delivered to the Participant pursuant to applicable laws) regarding the Company and the Subsidiaries, the Plan, and the Award via Company web site or other electronic delivery.

**13. DEFINITIONS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)"Affiliate" shall mean, with respect to any specified entity, any other entity that directly or indirectly is controlled by, controls, or is under common control with such specified entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)"Cause" shall mean (i) "Cause" as defined in any employment, consulting or similar agreement with the Company or any of its Affiliates to which the applicable Participant is a party (an "Individual Agreement"), or (ii) if there is no such Individual Agreement or if it does not define Cause: (A) willful misconduct or gross or willful neglect by a Participant in the performance of his employment duties (other than as a result of his incapacity due to physical or mental illness or

------

injury) as determined by the Administrator; (B) the plea of guilty or nolo contendere to, or conviction for, the commission of a felony or a crime of moral turpitude by a Participant; (C) willful fraud, misappropriation, embezzlement, misrepresentation or breach of a fiduciary duty against the Company or any of its Subsidiaries, as determined by the Administrator; (D) a breach by a Participant of any nondisclosure, non-solicitation or noncompetition obligation owed to the Company or any of its Affiliates; or (E) the failure of a Participant to follow the lawful and reasonable instructions of the Board or his direct superiors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)"Disability" shall mean the Company or an Affiliate having cause to terminate a Participant's employment or service on account of a condition entitling the Participant to receive benefits under a long-term disability plan of the Company or an Affiliate or, in the absence of such a plan, the complete and permanent inability by reason of illness or accident to perform the duties of the occupation at which a Participant was employed or served when such disability commenced or, as determined by the Administrator, based upon medical evidence acceptable to it.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)"Disaffiliation" shall mean a Subsidiary's or Affiliate's ceasing to be a Subsidiary or Affiliate for any reason (including, without limitation, as a result of a public offering, or a spin-off or sale by the Company, of the stock of the Subsidiary or Affiliate or a sale of a division of the Company and its Affiliates).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)"Good Reason" shall mean: (i) "Good Reason" as defined in any Individual Agreement; (ii) the material reduction of the Participant's authority, duties and responsibilities, or the assignment to the Participant of duties materially inconsistent with the Participant's position or positions with the Company; (iii) a reduction in the Participant's then current annual salary; or (iv) the relocation of the Participant's office to more than thirty-five (35) miles from the principal offices of the Company. Notwithstanding the foregoing, (x) Good Reason (A) shall not be deemed to exist unless the Participant provides to the Company a notice of termination on account thereof (specifying a termination date not less than thirty (30) days and not more than sixty (60) days after the giving of such notice) no later than thirty (30) days after the time at which the event or condition purportedly giving rise to Good Reason first occurs or arises, and (B) shall not be deemed to exist at any time at which there exists an event or condition which could serve as the basis of a termination of the Participant's employment for Cause; and (y) if there exists (without regard to this clause (y)) an event or condition that constitutes Good Reason, the Company shall have thirty (30) days from the date such notice of termination is given to cure such event or condition and, if the Company does so, such event or condition shall not constitute Good Reason hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)"Retirement" shall mean the Participant's Termination of Service (other than by the Company for Cause) with at least three months' notice of intention to retire by the Participant (i) at or after age 60, (ii) after 10 years of service to the Company

------

and/or its Subsidiaries or Affiliates, and (iii) upon approval in writing by the Leadership Development and Compensation Committee (the "Committee") in its sole discretion, based on such criteria as the Committee may determine at the time of such Termination of Service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)"Termination of Service" shall mean the termination of the applicable Participant's employment with, or performance of services for, the Company and any of its Subsidiaries or Affiliates. Unless otherwise determined by the Administrator, if a Participant's employment with the Company and any of its Subsidiaries or Affiliates, or membership on the Board, terminates but such Participant continues to provide services to the Company and its Affiliates in a nonemployee director capacity or as an employee, as applicable, such change in status shall not be deemed a Termination of Service. A Participant employed by, or performing services for, a Subsidiary or an Affiliate or a division of the Company and its Affiliates shall not be deemed to incur a Termination of Service if, as a result of a Disaffiliation, such Subsidiary, Affiliate, or division ceases to be a Subsidiary, Affiliate or division, as the case may be, and the Participant immediately thereafter becomes an employee of (or service provider for), the Company or another Subsidiary or Affiliate. Notwithstanding the foregoing, with respect to any Award that constitutes a "nonqualified deferred compensation plan" within the meaning of Section 409A of the Code, "Termination of Service" shall mean a "separation from service" as defined under Section 409A of the Code.

## Exhibit 31.1

**EXHIBIT 31.1**

**CERTIFICATION OF THE PRINCIPAL EXECUTIVE OFFICER**

**PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Noriyuki Hiruta, certify that:

1.&nbsp;&nbsp;&nbsp;&nbsp;I have reviewed this Quarterly Report on Form 10-Q of Sumisho Air Lease Corporation;

2.&nbsp;&nbsp;&nbsp;&nbsp;Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.&nbsp;&nbsp;&nbsp;&nbsp;Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.&nbsp;&nbsp;&nbsp;&nbsp;The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)), for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.&nbsp;&nbsp;&nbsp;&nbsp;The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: May 7, 2026

---

| |
|:---|
| */s/ Noriyuki Hiruta* |
| Noriyuki Hiruta <br>Chief Executive Officer, President and Secretary <br>(*Principal Executive Officer*) |

---

## Exhibit 31.2

**EXHIBIT 31.2**

**CERTIFICATION OF THE PRINCIPAL FINANCIAL OFFICER**

**PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Sabrina Lemmens, certify that:

1.&nbsp;&nbsp;&nbsp;&nbsp;I have reviewed this Quarterly Report on Form 10-Q of Sumisho Air Lease Corporation;

2.&nbsp;&nbsp;&nbsp;&nbsp;Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.&nbsp;&nbsp;&nbsp;&nbsp;Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.&nbsp;&nbsp;&nbsp;&nbsp;The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)), for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.&nbsp;&nbsp;&nbsp;&nbsp;The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: May 7, 2026

---

| |
|:---|
| */s/ Sabrina Lemmens* |
| Sabrina Lemmens<br>Chief Financial Officer <br>(*Principal Financial Officer and Principal Accounting Officer*) |

---

## Exhibit 32.1

**EXHIBIT 32.1**

**CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER**

**PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED**

**PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Quarterly Report of Sumisho Air Lease Corporation (the "Company") on Form 10-Q for the quarter ended March 31, 2026 (the "Report"), I, Noriyuki Hiruta, Chief Executive Officer, President and Secretary of the Company, certify, pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: May 7, 2026

---

| |
|:---|
| */s/ Noriyuki Hiruta* |
| Noriyuki Hiruta<br>Chief Executive Officer, President and Secretary <br>*(Principal Executive Officer)* |

---

The foregoing certification is being furnished pursuant to 18 U.S.C. Section 1350. It is not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section, and it is not to be incorporated by reference into any filing of the Company, regardless of any general incorporation language in such filing.

## Exhibit 32.2

**EXHIBIT 32.2**

**CERTIFICATION OF THE CHIEF FINANCIAL OFFICER** 

**PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED**

**PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Quarterly Report of Sumisho Air Lease Corporation (the "Company") on Form 10-Q for the quarter ended March 31, 2026 (the "Report"), I, Sabrina Lemmens, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: May 7, 2026

---

| |
|:---|
| */s/ Sabrina Lemmens* |
| Sabrina Lemmens<br>Chief Financial Officer <br>(*Principal Financial Officer and Principal Accounting Officer*) |

---

The foregoing certification is being furnished pursuant to 18 U.S.C. Section 1350. It is not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section, and it is not to be incorporated by reference into any filing of the Company, regardless of any general incorporation language in such filing.

<br>