GENERAL   EQUIPMENT   INC.                    

1.         Aircraft: Hercules L 100-30

2.         Lease : ACMI

3.         Base of Operations: To be negotiated

4.         Minimum duration: 12 months with option to extend

5.         Minimum monthly guaranteed hours: 180 Block Hours

            ACMI Rate: upon request

            Should the operation or the nature of the flying require additional crew, the cost of the additional crew shall be for the sole account of the Lessee.

            Lessor could assist in providing a quote for the additional crew if so requested.

6.         ACMI Rate includes:

            • Aircraft

            • Crew - Flight (3 x 4 man crew) and 2 x Technicians

            • Maintenance

            • Insurances

            • Crew Per Diem

            • Crew Accommodation and Transport at the base of operation

            • Crew Positioning between home base and the base of operation

7.         ACMI Rate Excludes all items including but not limited to:

            • Landing Fees

            • Handling Fees (Technical & Loading / off-loading)

            • Parking Fees

            • Navigation Fees

            • Fuel

            • Crew Accommodation and Transport away from base of operation

            • Royalties and commissions

            • Taxes

            • Levies

            • Additional Hull War Risk Premiums if required

            • Flight clearances

            • Flight despatch

            • Aircraft Positioning and Depositioning

            • Aircraft Hangarage as and when required

            • Crew Visas and/or Work Permits if required

            • Aircraft Positioning for scheduled maintenance (if required)

            • Suitable office (with telephone, e-mail and fax facilities) and storage space

8.         Subject to:

            • Aircraft availability

            • Necessary Flight Clearances being issued

            • All operations to be in terms of the CAA Flight & Duty Regulations.

            • The safety and security of our crew and aircraft being acceptable to Lessor.

            • Lessor receiving the necessary security deposit.

            • War Risk Insurance being available.

9.         Terms of payment:

            a) The minimum Monthly Guarantee based on the Hourly rate multiplied by the minimum guarantee of 180 block hours per aircraft, to be paid monthly in advance. All payments to be received by Lessor in cleared funds on the first business day of the month. The first month’s payment to be paid prior to departure of the aircraft.

            b) All flying in excess of the Monthly Guarantee to be reconciled and invoiced  on a monthly basis. The invoice will be payable within 5 days of date of invoice.

            c) A security deposit, equivalent to two month’s minimum guarantee lease rate, in the form of cash, on finalization of an Agreement. This will be refunded at the end of the lease period, subject to all the terms and conditions of the Agreement having been adhered to.

            d) Positioning and de-positioning cost to be paid prior to the departure of the aircraft.

10.       Maintenance: Full Maintenance will be provided by Lessor.

11.       Aircraft Registration: The Aircraft is currently registered under the Lessor country registration and should remain on this register for the duration of the lease.

12.      War Risk Insurance: Dependant on the areas that the aircraft will be operated to, an Additional War Risk Insurance Premium may be imposed by our insurers. This additional premium shall be for the account of the Lessee and Lessor will require payment of this amount prior to the aircrafts departure to the affected area.

 13.      Positioning and De-positioning Cost: Will be provided at a later stage as it will be dependant on where the aircraft will be at the start of the lease period.