Document:

Exhibit 10.6

    

    

    FTAI AVIATION LTD.

    NONQUALIFIED STOCK OPTION AND INCENTIVE AWARD PLAN

    

    

    SHARE OPTION AGREEMENT

    

    

    This SHARE OPTION AGREEMENT (this “Agreement”), by and between FTAI AVIATION LTD., a Cayman Islands exempted company (the “Company”), and _________, a _________ (the “Optionee”),
      is effective as of _________, 20__.

    

    

    Pursuant to the FTAI Aviation Ltd. Nonqualified Stock Option and Incentive Award Plan (as amended from time to time, the “Plan”), the Optionee is hereby granted, on the terms and conditions
      set forth herein (and subject to the terms and provisions of the Plan), an option (an “Option”) to purchase the Company’s ordinary shares, par value $0.01 per share (the “Shares”).  It is intended that the Option shall not constitute an
      “incentive stock option” within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended.  Any capitalized terms not defined herein shall have the meaning set forth in the Plan.

    

    

    TERMS AND CONDITIONS OF THE OPTION

    

    

    1.          NUMBER OF SHARES AND OPTION PRICE.  The Option entitles the Optionee to purchase _____ Shares (the “Option Shares”) at a per share exercise
      price of $ _____ (the “Option Price”), subject to adjustment as set forth in the Plan.

    

    

    2.          TERM OF OPTION.  This Agreement and the terms of the Option hereunder shall commence on the date hereof (the “Date of Grant”) and, unless
      previously terminated pursuant to this Agreement, the Option shall terminate upon the expiration of ten (10) years from the Date of Grant.  Upon the termination of the Option, all rights of the Optionee hereunder with respect to the Option shall
      cease.

    

    

    3.          CONDITIONS OF EXERCISE.  Subject to the provisions of the Plan and this Agreement, the Option shall be fully vested at all times and shall become
      exercisable as to 1/30th of the Option Shares on the first calendar day of each of the thirty (30) months following the Date of Grant.

    

    

    4.          EXERCISE OF OPTION.  The Option shall be exercised in full or in part in the following manner: the Optionee (or any subsequent party or parties having
      the right to exercise the Option), shall deliver to the Company written notice specifying the number of Option Shares to be purchased, together with payment of the aggregate Option Price of the Option Shares with respect to which the Option is being
      exercised by means of one of the following payment methods: (a) payment of cash in an amount equal to the aggregate Option Price, (b) delivery to the Company of a number of Shares having a Fair Market Value on the date of surrender equal to the
      aggregate Option Price, (c) payment or delivery of any combination of cash or Shares, the sum of which equals the aggregate Option Price or (d) by electing to have the Company withhold from the delivery of the Option Shares otherwise issuable in
      connection with the exercise of the Option the number of Option Shares having a Fair Market Value on the date of exercise equal to the aggregate Option Price.  The Option Shares purchased shall thereupon be promptly issued.  In addition, the Optionee
      (or such other party) shall be entitled to exercise the Option in any other manner permitted under the Plan and approved by the Committee.  The Optionee will not be deemed to be a holder of any Option Shares until the first date such Option Shares
      are (i) duly issued to it in accordance with the Company’s Amended and Restated Memorandum and Articles of Association (as may be further amended and/or restated from time to time), and (ii) paid for in full.

    

    

    
      
        

    

    
    

    

    5.          DISPOSITION OF OPTION SHARES.  Subject to the terms of this Agreement and the Plan, the Option and the Shares acquired in connection with the exercise
      of the Option shall be freely transferable by the Optionee, to the extent not prohibited by applicable laws.

    

    

    6.          CHANGE IN CONTROL AND TERMINATION PROVISIONS.  Notwithstanding anything herein to the contrary, the Option shall become immediately and fully vested
      and exercisable upon (i) a Change in Control in accordance with the provisions of the Plan or (ii) a termination of the Optionee’s services to the Company for any reason.  Any Tandem Awards shall be governed by the terms and conditions of their
      applicable award agreements.  For purposes of this award, a Change in Control shall be deemed to have occurred upon the occurrence of one or more of the events set forth in the Plan.

    

    

    7.          NOTICES.  Any notice required or permitted under this Agreement shall be deemed given when delivered personally, or when deposited in a United States
      Post Office, postage prepaid, addressed, as appropriate, to the Optionee at: _________, _________, Attention: _________, or such other address as the Optionee may designate in writing to the Company, or to the Company at: 1345 Avenue of the Americas,
      45th Floor, New York, New York 10105, Attention: Cameron D. MacDougall (or his designee), at the Company’s address or such other address as the Company may designate in writing to the Optionee.

    

    

    8.          FAILURE TO ENFORCE NOT A WAIVER.  The failure of the Company to enforce at any time any provision of this Agreement shall in no way be construed to be
      a waiver of such provision or of any other provision hereof.

    

    

    9.          GOVERNING LAW.  This Agreement shall be governed by and construed according to the laws of the State of Delaware without regard to its principles of
      conflict of laws.

    

    

    10.          INCORPORATION OF PLAN.  The Plan is hereby incorporated by reference and made a part hereof, and the Option and this Agreement are subject to all of
      the terms and conditions of the Plan.

    

    

    11.          AMENDMENTS.  This Agreement may be amended or modified at any time by an instrument in writing signed by the parties hereto.

    

    

    12.          RIGHTS AS A SHAREHOLDER.  Neither the Optionee nor any successor in interest shall have rights as a shareholder of the Company with respect to any of
      the Option Shares until the first date such Option Shares are (i) duly issued to the Optionee or successor in interest, as applicable, in accordance with the Company’s Amended and Restated Memorandum and Articles of
        Association (as may be further amended and/or restated from time to time), and (ii) paid for in full.

    

    

    13.          AGREEMENT NOT A CONTRACT OF SERVICE.  Neither the Plan, the granting of any Option, this Agreement nor any other action taken pursuant to the Plan
      shall constitute or be evidence of any agreement or understanding, express or implied, that the Optionee has a right to continue its service to the Company for any period of time at any specific rate of compensation.

    

    

    14.          AUTHORITY OF THE COMMITTEE.  The Committee shall have full authority to interpret and construe the terms of the Plan and this Agreement.  The
      determination of the Committee as to any such matter of interpretation or construction shall be final, binding and conclusive.

    

    

    [Signatures on Following Page]

    

    

    
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    IN WITNESS WHEREOF, the parties have executed this Agreement effective as of __________, 20__.

    

    

    	 	
            FTAI AVIATION LTD.

          
	 	 	 	 
	 	
            By:

          	 
	 	 	
            Name:

          	 
	 	 	
            Title:

          	 
	 	 	 	 
	 	
            The undersigned hereby accepts and agrees to all the terms and provisions of the foregoing Agreement and to all the terms and provisions of the Plan herein incorporated by reference.

          
	 	 	 	 
	 	
            By:

          	 
	 	 	
            Name:

          	 
	 	 	
            Title:

          	 

    

    

     

    

    [Signature Page to FTAI Aviation Ltd. Share Option Agreement]

    
      
        

    

    NOTICE OF EXERCISE

    

    

    _______________, 20__

    

    

    FTAI Aviation Ltd.

    1345 Avenue of the Americas, 45th Floor

    New York, New York 10105

    Attention: [NAME]

    

    

    Gentlemen:

    

    

    _________ (the “Optionee”) was granted an Option by FTAI Aviation Ltd. (the “Company”) under the FTAI Aviation Ltd. Nonqualified Stock Option and Incentive Award Plan (the “Plan”)
      and a Share Option Agreement, between the Optionee and the Company, effective as of _____, 20__ (the “Agreement”).  This letter is to notify you that the Optionee wishes to purchase Option Shares under the Agreement as set forth below.  Any
      capitalized terms not defined herein shall have the meaning set forth in the Agreement.

    

    

    EXERCISE OF OPTION

    

    

    1.          The Optionee wishes to purchase Option Shares at the exercise price of $______ per share for a total cost of $_________ (the “Aggregate Option
        Price”), which Option is not encumbered to a Tandem Award.  The Optionee warrants and represents that such Option Shares are not encumbered to a Tandem Award.

    

    

    2.          The Optionee is paying for these Option Shares as follows:

    

    

    ______  By enclosing cash and/or a certified or cashier’s check payable to the Company in the amount of the Aggregate Option Price.

    

    

    ______  By enclosing instruments of transfer satisfactory to the Company and the transfer agent for the Shares in respect of a number of Shares with a Fair Market Value on the date of surrender equal
      to the Aggregate Option Price.

    

    

    ______  By enclosing (i) cash and/or a certified or cashier’s check payable to the Company in the amount of $___________________ (the “Cash Consideration”) and (ii) instruments of transfer
      satisfactory to the Company and the transfer agent for the Shares in respect of a number of Shares with a Fair Market Value on the date of surrender equal to the difference between (x) the Aggregate Option Price and (y) the Cash Consideration.

    

    

    ______  By electing to have the Company withhold a number of Shares from the delivery of the Option Shares otherwise issuable in connection with the exercise of the Option with a Fair Market Value as
      of the date of exercise equal to the Aggregate Option Price.

    

    

    3.          In exercising its Option, the Optionee hereby warrants and represents to the Company that the Optionee acknowledges that the Company has no obligation
      to issue a certificate evidencing any Option Shares purchasable by the Optionee until the Aggregate Option Price is fully paid as set forth in the Agreement.

    

    

    	 	
            Very truly yours,

          
	 	 	 	 
	 	
            By:

          	 
	 	 	
            Name:

          	 
	 	 	
            Title:Exhibit 10.7

    

    

    FTAI AVIATION LTD.

    NONQUALIFIED STOCK OPTION AND INCENTIVE AWARD PLAN

    

    

    NON-OFFICER DIRECTOR OPTION AWARD AGREEMENT

    

    

    This Non-Officer Director Option Award Agreement (this “Agreement”),
      dated as of _________, 20__ (the “Date of Grant”), is made by and between FTAI Aviation Ltd., a Cayman Islands exempted company (the “Company”), and _________, a Non-Officer Director of the Company (the “Grantee”).
      Capitalized terms not defined herein shall have the meaning ascribed to them in the FTAI Aviation Ltd. Nonqualified Stock Option and Incentive Award Plan (as may be amended from time to time, the “Plan”). Where the context permits, references to “the Company” shall include the Company and any successor to the Company.

    

    

    Pursuant to Section 5.6(a) of the Plan, on the Date of Grant, the Grantee was granted an option (an “Option”) to purchase the number of Shares set forth in Section 1 below, subject to the terms and conditions set forth in the Plan and this Agreement.

    

    

    Terms and Conditions of the Option

    

    

    1.          Number of Shares and Option Price. 
        The Option entitles the Grantee to purchase 5,000 Shares (the “Option Shares”) at a per share exercise price of $ _____ (the “Option Price”), subject to adjustment as set forth in the Plan.

    

    

    2.          Term of Option.  The term
        of the Option and of this Agreement shall commence on the Date of Grant and, unless previously terminated pursuant to this Agreement, the Option shall terminate upon the expiration of ten (10) years from the Date of Grant (the “Option Term”). Upon termination of the Option, all rights of the Grantee hereunder shall cease.

    

    

    3.          Conditions of Exercise. 
        The Option shall be one hundred percent (100%) vested and fully exercisable as of the Date of Grant.  The right of the Grantee to purchase Option Shares may be exercised in whole, or in part, at any time, or from time to time, prior to expiration
        of the Option Term.

    

    

    4.          Exercise of Option.  The
        Option shall be exercised in the following manner: the Grantee (or such other Person or Persons having the right to exercise the Option) shall deliver to the Company written notice specifying the number of Option Shares with respect to which the
        Option is being exercised, together with payment of the aggregate Option Price of the Option Shares with respect to which the Option is being exercised by means of one of the following payment methods: (a) payment of cash in an amount equal to the
        aggregate Option Price, (b) delivery to the Company of a number of Shares having a Fair Market Value on the date of surrender equal to the aggregate Option Price, (c) payment or delivery of any combination of cash or Shares, the sum of which equals
        the aggregate Option Price or (d) by electing to have the Company withhold from the delivery of the Option Shares otherwise issuable in connection with the exercise of the Option the number of Option Shares having a Fair Market Value on the date of
        exercise equal to the aggregate Option Price. The Option Shares will be promptly delivered upon receipt of such payment. The Grantee will not be deemed to be a holder of any Option Shares until the date such Option Shares are delivered to the
        Grantee.

    

    

    
      
        

    

    
    5.          Notices.  Any notice provided hereunder must be in writing and mailed or delivered either (i) to the Company at its principal place of business or (ii) to the
        Grantee at the address on file with the Company, or such other address as the Company or the Grantee may provide to the other for purposes of providing notice.  Any such notice shall be deemed effective (1) upon delivery if delivered in person, (2) on the next business day if transmitted by national overnight courier and (3) on the fourth business day following mailing by first class
        mail.

    

    

    6.          Failure to Enforce Not a Waiver. 
        The failure of the Company to enforce at any time any provision of this Agreement shall in no way be construed to be a waiver of such provision or of any other provision hereof.

    

    

    7.          Governing Law.  This
        Agreement shall be governed by, and construed in accordance with the laws of the State of Delaware, without giving effect to the principles of conflict of laws of such state.

    

    

    8.          Incorporation of Plan.  The
        Plan is hereby incorporated by reference and made a part hereof, and the Option and this Agreement are subject to all of the terms and conditions of the Plan.  In the event of a conflict between the terms and conditions of the Plan and this
        Agreement, the terms and conditions of the Plan shall govern.

    

    

    9.          Amendments.  This Agreement
        may be amended or modified at any time by an instrument in writing signed by the parties hereto, provided that the Grantee acknowledges that this Agreement may be amended or modified by the Committee for the purposes of satisfying changes in law or
        for any other lawful purpose, so long as no such action shall impair the Grantee’s rights under this Agreement without the Grantee’s written consent.

    

    

    10.          Complete Agreement.  This Agreement and the Plan embody the complete and entire agreement and understanding between the parties
        with respect to the subject matter hereof, and supersede any and all prior promises, assurances, commitments, agreements, undertakings or representations, whether oral, written, electronic or otherwise, and whether express or implied, which may
        relate to the subject matter hereof in any way.

    

    

    11.          Rights as a Shareholder. 
        Neither the Grantee nor any successor in interest shall have any rights as a shareholder of the Company with respect to any of the Option Shares until the date such Option Shares are delivered to the Grantee or any such successor in interest.

    

    

    12.          Agreement Not a Contract of Service.  Neither the Plan, the granting of any Option, this Agreement nor any other action taken
        pursuant to the Plan shall constitute or be evi-dence of any agreement or understanding, express or implied, that the Grantee has a right to continue in service to the Company for any period of time at any specific rate of compensation.

    

    

    
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    13.          Nontransferability.  Except as provided under the laws of descent and distribution, or as otherwise permitted by the Committee,
        the Grantee shall not be permitted to sell, transfer, pledge or assign the Option, and only the  Grantee shall be permitted to exercise the Option during the Grantee’s lifetime.

    

    

    14.          Successors and Assigns.  The rights and obligations hereunder shall be binding on the Grantee and the Grantee’s heirs and legal
        representatives and on the successors and assigns of the Company.

    

    

    15.          Counterparts.  This Agreement may be executed in two or more separate counterparts, each of which shall be an original, and all of
        which together shall constitute one and the same agreement. The Grantee’s electronic signature of this Agreement shall have the same validity and effect as a signature affixed by the Grantee’s hand.

    

    

    16.          Headings.  Headings and captions are provided solely as a convenience to facilitate reference. Such headings and captions shall
        not be deemed in any way material or relevant to the construction, meaning or interpretation of this Agreement or any term or provision hereof.

    

    

    17.          Authority of the Committee. 
        The Committee shall have full authority to interpret and construe the terms of the Plan and this Agreement.  The determination of the Committee as to any such matter of interpretation or construction shall be final, binding and conclusive.

    

    

    18.          Memorialization of Agreement.  The Grantee is signing this Agreement as of the day and year first written above to memorialize the
        grant of this Option as previously communicated to the Grantee.

    

    

    [Signatures on Following Page]

    

    

    
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    IN WITNESS WHEREOF, the parties have
      executed this Agreement as of the day and year first written above.

    

    

    	 	
            FTAI AVIATION LTD.

          
	 	 	 
	 	
            By:

          	 
	 	 	
            [NAME], [TITLE]

          
	 	 	 
	 	
            GRANTEE

          
	 	 	 
	 	 	 

    

    

    [Signature Page to Non-Officer Director Option Award
        Agreement]

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