TO LESSEE BY ENTERING INTO THE
OPERATIVE DOCUMENTS TO WHICH IT IS A PARTY AND THIS LEASE TO ALLOW LESSEE TO
OBTAIN THE USE OF THE ENGINE PURSUANT TO THE TERMS OF THE AIRLINE SERVICES
AGREEMENT.
AS A CONDITION TO THEIR RIGHTS HEREUNDER, LESSEE AND LESSOR HEREBY
CONFIRM AND RATIFY THE AIRLINE SERVICES AGREEMENT, WHICH IS INCORPORATED HEREIN
BY REFERENCE FOR ALL PURPOSES, AND AGREE, AS A MATERIAL TERM OF THIS LEASE AND
AS A MATERIAL INDUCEMENT TO LESSOR TO ENTER INTO THIS LEASE, TO FULLY PERFORM
ALL OF THEIR RESPECTIVE OBLIGATIONS UNDER THE AIRLINE SERVICES AGREEMENT AS A
PART OF THIS LEASE AGREEMENT AS THOUGH THE SAME WERE SET FORTH HEREIN.
(C)
ENGINE HEADLEASE.
NOTWITHSTANDING ANY PROVISION OF THIS LEASE TO
THE CONTRARY, IN THE EVENT THAT THE ENGINE IS AT ANY TIME SUBJECT TO A
HEADLEASE, THE TERMS AND CONDITIONS SET FORTH ON EXHIBIT F HERETO SHALL BE
APPLICABLE TO THE ENGINE AND THIS LEASE DURING SUCH PORTION OF THE TERM AS SUCH
HEADLEASE IS IN EFFECT, AND ALL TERMS AND PROVISIONS SET FORTH IN THIS LEASE
SHALL BE CONSTRUED IN A MANNER CONSISTENT THEREWITH.
A2-12
SECTION 3.
Term and Rent.
(a) Term.
The Term shall commence on the
Commencement Date and end on the Expiration Date or such earlier date as this
Lease may be terminated in accordance with the provisions hereof.
(B)
BASIC RENT.
LESSEE SHALL PAY BASIC RENT WITH RESPECT TO EACH
LEASE PERIOD DURING THE TERM ON EACH LEASE PERIOD DATE DURING THE TERM, IN
CONSECUTIVE MONTHLY INSTALLMENTS IN THE AMOUNTS AS PROVIDED IN THE NEXT
SENTENCE.
EACH SUCH INSTALLMENT OF BASIC RENT SHALL BE PAYABLE IN ADVANCE WITH
RESPECT TO THE MONTH COMMENCING ON SUCH LEASE PERIOD DATE AND SHALL BE EQUAL TO
THE AMOUNT SPECIFIED FOR EACH LEASE PERIOD DATE SPECIFIED IN EXHIBIT B HERETO.
IN ADDITION, LESSEE SHALL PAY BASIC RENT ON THE COMMENCEMENT DATE IN THE AMOUNT
SPECIFIED IN EXHIBIT B HERETO, ALLOCABLE TO THE PERIOD COMMENCING ON THE
COMMENCEMENT DATE AND ENDING ON SUCH DATE OR ON (BUT EXCLUDING) THE IMMEDIATELY
SUCCEEDING LEASE PERIOD DATE (IF OTHER THAN THE COMMENCEMENT DATE).
IF LESSEE
SHALL FOR ANY REASON WHATSOEVER FAIL TO RETURN THE ENGINE ON THE EXPIRATION DATE
IN THE CONDITION SPECIFIED HEREIN, OR RETURN OF THE ENGINE IS NOT ACCEPTED BY
LESSOR BECAUSE OF LESSEE'S FAILURE TO MEET THE REQUIREMENTS OF THIS LEASE, THE
OBLIGATIONS OF LESSEE PROVIDED IN THIS LEASE AND IN EACH OTHER OPERATIVE
DOCUMENT TO WHICH LESSEE IS A PARTY, INCLUDING THE OBLIGATION TO PAY BASIC RENT,
WHICH, AFTER THE EXPIRATION DATE, SHALL BE ON A PER DIEM BASIS BASED ON A PRO
RATA APPLICATION OF *** OF THE BASIC RENT DUE DURING THE LAST LEASE PERIOD OF
THE TERM, SHALL CONTINUE IN EFFECT WITH RESPECT TO THE ENGINE, AND THE TERM
SHALL BE DEEMED TO BE EXTENDED UNTIL RETURN OF THE ENGINE TO LESSOR IN
ACCORDANCE WITH THE REQUIREMENTS OF THIS LEASE; PROVIDED THAT NOTHING IN THIS
SECTION SHALL BE CONSTRUED AS PERMITTING OR