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DRONE LEASE

This Drone Lease (“Lease”) is made and effective by checking “I agree to the American Drone Rental Lease Agreement” and clicking on the “Submit” button by and between American Drone Rental a division of Camera Lens Rentals, LLC an Indiana Limited Liability Company (“ADR”) and you, the (“Lessee”) for the purpose of leasing certain unmanned aircraft systems more particularly described in Schedule A attached hereto and made a part hereof.  In consideration of the mutual promises and obligations of the parties, states as follows:

  1. ADR will lease to Lessee the unmanned aircraft system and related equipment set forth in Schedule A (“Drone”). Lessee shall hold the Drone subject to the terms of this Drone Lease.
  2. At such time as Lessee accepts possession of the Drone, Lessee agrees to lease the Drone at the Rental Rate and for the Rental Period set forth in Schedule A. Acceptance of the Drone shall constitute acceptance of the terms of Schedule A.
  3. ADR shall invoice Lessee according to the terms set forth in Schedule A. Payment shall be due upon shipment. If applicable laws provide for sales or use tax, Lessee shall pay the same in addition to Rental rate set forth in Schedule A.
  4. If Lessee returns the Drone prior to the expiration of the Rental Period, Lessee shall be liable for the Rental Rate as if Lessee had retained the Drone for the entire Rental Period and all other costs and charges due under the Lease.
  5. Lessee shall provide and maintain casualty and theft insurance on all leased Drones to the extent of one hundred percent (100%) of the replacement value thereof.
  6. Lessee shall maintain general liability insurance in an amount no less than one million ($1,000,000) for bodily injury per occurrence, and no less than two hundred fifty thousand ($250,000) for property damage per occurrence.
  7. The receipt and acceptance by the Lessee of the Drone shall constitute acknowledgment that the Drone has been found in good, safe and serviceable condition, and fit for use, unless the Lessee makes a specific and detailed claim to the contrary to ADR within one (1) day after receipt of the Drone. In the event of notice to ADR by the Lessee that the Drone is not in good, safe and serviceable condition and fit for use upon its arrival, ADR shall have the right to put the Drone in good, safe and serviceable condition and fit for use, within a reasonable time, or to cancel this Lease and recover the Drone.
  8. The Drone shall at all times during the term hereof remain personal property and title thereto shall remain with ADR exclusively. Lessee shall not assign, sell, sublet, encumber or otherwise transfer this Lease or the Drone or any rights thereto. Lessee authorizes ADR to prepare and file a financing statement signed only by ADR with respect to its title retention of the Drone. This provision does not make the Lease a security agreement. Any time ADR supplies Lessee with labels, plates, or other markings stating that ADR owns the Drone, Lessee shall affix and keep the same in a prominent place on the Drone. Lessee shall not alter, disfigure, or cover up any marks of identification displayed on the Drone. Lessee shall, whenever requested by ADR, give ADR the exact location of the Drone. Lessee shall not 1) permit any lien to be had or filed against the Drone; 2) to pledge the Drone; or 3) otherwise allow a third party to encumber the Drone (collectively referred to as “Liens”). Permitting Liens shall be considered a default. Lessee shall give ADR immediate notice of any claim, levy, Liens or legal process issued against the Drone. If Liens shall be had or filed, and an action commenced to foreclose the Liens, Lessee, upon demand by ADR, shall a) cause the Liens to be released at Lessee’ expense by the filing of a written undertaking with a surety approved by the Court, b) obtain an order from the Court releasing the Drone from the Liens, and c) shall otherwise indemnify ADR against all loss and damages, including attorney’s fees, caused by such action. Nothing in this instrument shall be deemed or construed to constitute consent to, or a request to any party for, the performance of any labor or services or the furnishing of any materials for the improvement, alteration or repairing of the Drone; nor as giving Lessee the right or authority to contract for, authorize or permit the performance of any labor or services or the furnishing of any material that would permit the attaching of Liens.
  9. Unless in default of the Lease, Lessee, shall be entitled to possession. ADR may inspect said Drone at any reasonable time. Lessee grants to ADR a license to enter upon the premises where such Drone is located at any reasonable time for the purpose of inspection and also for the purpose of repossession or removal after default.
  10. Lessee shall use the Drone in a careful and proper manner and shall comply with all laws, ordinances, and regulations relating to the possession, use or maintenance of the Drone. Lessee further agrees that the leased Drone will be used by Lessee for the ordinary and usual work for which it is designed and shall insure that it will be used carefully and not be subjected to needless rough usage. Lessee shall neither permit the leased Drone to be operated with safety devices inoperative or removed nor permit personnel to operate the Drone without first having been instructed in its safe use and the limitations to such use. Lessee acknowledges it has been properly trained on how to safely use the Drone. Lessee covenants it will not permit any employee, contractor, or person to use the Drone that has not been trained on how to safely operate the Drone and possess the necessary licenses or permits to operate the Drone. Lessee shall, during the term of this Lease, perform, and pay the costs for, all routine maintenance for the leased Drone, including, without limitation, performance of all the manufacturer’s recommendations with regard to regular maintenance. At the end of the Rental Period or upon earlier termination thereof, Lessee shall re-deliver the Drone to ADR in as good condition as when delivered to the Lessee, reasonable wear and tear excepted. If Lessee fails to perform any maintenance on the Drone, it shall be charged as damages and invoiced in accordance with the Lease.
  11. Lessee agrees that Lessee will operate the Drone in accordance with ADR’s operating guidelines, attached hereto and incorporated herein as Schedule B, and in accordance with Federal Aviation Administration (“FAA”) guidelines. Lessee shall not operate any Drone for non-hobby or non-recreational purposes without prior FAA authorization. Lessee shall operate the Drone in accordance with the FAA’s safety guidelines. Lessee has read and understands the statutory parameters of operation of the Drone as outlined in Section 336 of Public Law 112-95 (the FAA Modernization and Reform Act of 2012). Lessee agrees to indemnify and hold ADR and its representatives harmless for any and all damages and claims arising out of or relating to any violation of this provision.

    Initialed by Lessee: ______________

  12. Lessee shall not sublet the Drone or assign its rights hereunder without the prior written consent of ADR.
  13. The occurrence of any of the following shall constitute a default under any lease.
    1. Lessee’s non-payment of rental or additional charges when due, or Lessee’s failure to perform or observe any other covenant, term or condition of this Lease.
    2. Lessee shall sell, assign or attempt to sell or assign the Drone or any interest therein.
    3. The making of any warranty, representation or statement to ADR by, or on behalf of, Lessee in connection with this Credit Application or any lease, which is false or misleading in any material respect as of the date when made or furnished, to induce ADR to make any advancement or other extension of credit to Lessee.
    4. The occurrence of any substantial uninsured loss, theft, damage or destruction of the Drone, or the making of any claim, levy, lien, legal process, seizure or attachment against it, or Lessee’s interest under this Lease.
    5. The death, dissolution, merger, consolidation or termination of the existence of Lessee (except a technical dissolution which is cured within thirty (30) days) or the insolvency or business failure of Lessee, or the admission by Lessee in writing of the inability to pay Lessee’s debts as they become due, or the appointment or a receiver or trustee for any part of the property of Lessee, or an assignment for the benefit of Lessee’s creditors or the commencement of any proceeding under any bankruptcy or insolvency Laws by or against Lessee or against any guarantor or surety for Lessee, or if ADR deems itself insecure for any other reason whatsoever.
  14. If Lessee defaults in any of the covenants, conditions or provisions of the Lease, any unpaid rentals shall at once become due and payable.  Further, ADR may immediately and without notice take possession of the Drone wheresoever found and to remove and keep or dispose of the same. If any step is taken by legal action or otherwise by ADR to recover possession of the Drone or otherwise enforce this agreement or to collect moneys due hereunder Lessee shall pay ADR the equivalent of the moneys expended or charges incurred by ADR in such behalf, including a) all freight, demurrage, storage, labor, or other charges required to return the Drone to ADR’s designated receiving point; b) reasonable attorney's fees; c) court costs and costs of collection and litigation (including discovery and investigative costs); and d) the cost of recovering said Drone, all without relief from valuation and appraisement laws. ADR may require Lessee to make the Drone available to ADR at a place to be designated by ADR which is reasonably convenient to both parties.
  15. ADR SHALL NOT BE RESPONSIBLE FOR ANY DAMAGE, INJURY OR DEATH ARISING FROM ANY ACT OR OMISSION IN CONNECTION WITH LESSEE’S POSSESSION, USE, OPERATION, MANAGEMENT OR MAINTENANCE OF THE LEASED DRONE. LESSEE SHALL INDEMNIFY AND HOLD HARMLESS ADR FROM AND AGAINST ANY AND ALL LIABILITY, LOSS, COST, ACTIONS OR CAUSES OF ACTION, CLAIMS OR EXPENSE SUSTAINED BY ADR, INCLUDING ATTORNEY’S FEES AND OTHER EXPENSES OF LITIGATION, ARISING OUT OF, CONNECTED WITH OR RESULTING FROM THE LESSEE’S USE OF LEASED DRONE EVEN IF LIABILITY FOR THE DAMAGE, INJURY OR DEATH IS ALLEGED OR FOUND TO BE PARTIALLY THE RESULT OF ADR’S NEGLIGENCE.
  16. ADR shall not be liable in any event to the Lessee for any loss, delay or damage of any kind or character resulting from defects in, or inefficiency of, the Drone hereby leased or for breakage thereof. Lessee’s only remedy against ADR for such claim shall be to return the Drone to ADR and terminate this Lease, provided, however, that Lessee shall remain responsible for the transportation charges to return said Drone to ADR and for the rental for the Rental Period provided for in any lease.
  17. ADR makes NO WARRANTY AS TO FITNESS FOR A PARTICULAR PURPOSE OR MERCHANTABILITY NOR ANY OTHER WARRANTY, EITHER EXPRESS OR IMPLIED, WITH RESPECT TO THE DRONE LEASED.
  18. These general terms and any other terms of any Lease entered into between the parties shall extend to and be binding upon the heirs, personal representatives, successors and assigns of the parties. This provision, however, shall not be construed to permit the assignment of this Lease. When applicable, use of the singular form of any word shall mean or apply to the plural and the neuter form shall mean or apply to the feminine or masculine.
  19. No waiver by ADR of any default by Lessee shall be effective unless in writing, or operate as a waiver of any further default or of the same default on a future occasion. ADR’s acceptance of rent shall not be deemed a waiver as to any preceding default. Any notices to be given hereunder shall be deemed sufficiently given when in writing and (a) actually served on the party to be notified or (b) placed in an envelope directed to the party to be notified at the addresses listed below and deposited in the United States mail by certified or registered mail, postage prepaid.
  20. Title to the Drone and to all replacements thereof or substitution therefore is and shall remain in ADR. ADR and Lessee further acknowledge and agree that this Lease is intended as a true and actual lease between the parties and does not constitute a lease intended as security. The filing by ADR under the Uniform Commercial Code of one or more UCC forms evidencing the relationship hereby created shall not render this Lease a lease intended as security.
  21. After the expiration of the Rental Period:
    1. The Drone may be returned by Lessee and rental shall cease to accrue when possession is delivered to ADR;
    2. ADR may demand return of the Drone, and Lessee shall forthwith, at its own cost, return the Drone to ADR’s designated receiving point, as set forth in Schedule A.
    3. If this Lease terminates by reason of the expiration of the Rental Period, and Lessee still has possession of any Drone, or subsequently receives possession of any Drone without execution of a new Lease, the parties’ respective rights shall be governed by this Lease.
  22. Lessee understands and agrees that no attachments whatsoever are to be used on the Drone without the express written consent of ADR; Lessee agrees to indemnify and hold ADR and its representatives harmless for any and all damages and claims arising out of or relating to any violation of this proscription.
  23. Lessee consents to personal jurisdiction in Madison County, Indiana, including but not limited to the jurisdiction of the Madison County Small Claims Division of Madison County, Indiana; and recognizes Madison County, Indiana as a County of preferred venue; additionally, Lessee hereby expressly waives its right to claim personal jurisdiction in any and all other venues in which it may have otherwise been permitted to so claim unless a claim arising out of or relating to this Lease has been initiated in said venue by ADR against Lessee. Lessee waives its right to a jury trial.
  24. Lessee is completing and executing this document for the express purpose of obtaining property from ADR pursuant to terms and conditions identified herein.
  25. By completing and executing this Lease, Lessee affirms under penalty of perjury that it is financially solvent and shall at all times relevant hereto remain capable of satisfying any and all financial obligations incurred by it as a result of entering into this Lease; and that Lessee furthermore will not incur additional obligations under this Lease while there is any question regarding its solvency and or ability to satisfy existing and or future financial obligations relating to or arising out of this Lease.

THE PARTIES HEREBY ACKNOWLEDGE THEIR RESPECTIVE UNDERSTANDING AND ACCEPTANCE OF THE TERMS AND CONDITIONS OF THIS DRONE LEASE THROUGH THE SIGNATURES OF THEIR DESIGNATED REPRESENTATIVES BELOW; LESSEE REPRESENTATIVE PERSONALLY GUARANTIES ACCURACIES OF REPRESENTATIONS IDENTIFIED ABOVE AS WELL AS PERFORMANCE OF LESSEE’S OBLIGATIONS ARISING OUT OF OR RELATING TO THIS DRONE.

The Lessee hereby guarantees the prompt payment when due or whenever payment may become due under the terms of the DRONE Lease of all payments and all other charges, expenses and costs of every kind and nature, which are or may be due now or in the future under the terms of the DRONE Lease and the complete and timely performance, satisfaction and observation of the terms and conditions of the DRONE Lease required to be performed, satisfied or observed by the Lessee.


SCHEDULE A
Supplement to Drone Lease

Leased Drone:_______________________________________________________________

Rental Rate: ________________________________________________________________

Rental Period:_______________________________________________________________

Lessor’s Contact Information:

Lessor

_____________________________________

Address

_____________________________________

Phone

_____________________________________

Email

_____________________________________

 

All drones and related equipment shall be returned to American Drone Rental, LLC at 231 Federal Drive, Chesterfield, Indiana 46017.
SCHEDULE B
Operating Guidelines

  1. Always fly in open areas. No trees, buildings, telephone poles, etc.
  2. Always make sure there are no obstacles between the drone and your home point.
  3. Always fly VFR (Visual Flight Rules).
  4. Always fly under the 400 foot ceiling.
  5. Always fly during the daytime.
  6. Always take off and land on a non-metal flat surface.
  7. Always give right of way to manned aircraft.
  8. Always make sure the battery is firmly locked in place securely before flying.
  9. Always make sure the battery is at 100% before taking off.
  10. Always start flying to the home point when the battery level gets to 20%.
  11. Always make sure the props are properly fastened to the drone.
  12. Always calibrate compass if needed.
  13. Always land the drone immediately if anything abnormal is noticed.
  14. Never fly within a 5 mile radius of any airport without Air Traffic Control approval.
  15. Never fly near any manned aircraft or any other unmanned aircraft. Unmanned aircrafts must yield the right of way to manned aircrafts.
  16. Never fly near cell phones that are not in airline mode.
  17. Never fly in areas where there might be many Wi-Fi signals.
  18. Never fly in areas of magnetic or electromagnetic interference or disturbance.
  19. Never fly close to radio, cell, or microwave towers that could interfere with the operation of the drone.
  20. Never fly in the rain or snow or any inclement weather conditions.
  21. Never fly in windy conditions.
  22. Never fly indoors.
  23. Never land in wet grass or muddy areas.
  24. Never stand directly under the drone.
  25. Never fly over other persons.