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Lease of Ship
This Lease of Ship (“Lease”) is made and entered into on this the XX Day of XXX, 20XX (“Effective Date”) by and between ___________[Name of Lesser, hereinafter referred to as “Lessee”], a duly organized entity with its principle place of business located at ___________[Address] and ___________[Name of Lessor, hereinafter referred to as “Lessor”], a duly organized entity with its principle place of business located at ___________[Address]
WHEREAS, Lessor is the owner of Ship, identified as ___________[Identification] (“Ship”); and
WHEREAS, Lessee desires to lease the Ship from the Lessor for a certain purpose and the Lessor is willing to lease the Ship to the Lessee,
NOW, THEREFORE, in consideration of the mutual promises, covenants and conditions set herein, the parties intending to be legally bound hereby do agree as follows:
Lease
1. Lessor hereby leases to the Lessee, and Lessee hereby leases from the Lessor, the Ship, subject to the terms and conditions of this Lease. The Lessor hereby constitutes and appoints the Lessee, with full power of substitution, as its true and lawful attorney-in-fact to take immediate possession of and operate the Ship in the name and on behalf of the Lessor.
2. The term of this Lease shall be ___________[length of time] from the Effective Date (the “Lease Period”).
3. The rent for the Ship shall be ___________[Annual Rent]. Payment of such annual rent shall be made in the amount of ___________[Monthly Rent] on the ___________[day], of each month. In the event that the Lessee fails to make rent payments when due, the annual rent shall be increased by ___________[percentage] beginning on ___________[date].
4. Lulnerability: The Lessee shall be responsible to the Lessor for any damage to the Ship caused by the Lessee or any of its agents, employees or other persons who may operate the Ship while under the possession of the Lessee.
5. Maintenance: The Lessee shall be responsible for all reasonable and necessary maintenance, repairs and upkeep of the Ship during the Lease Period, including replacing parts of the Ship as may be reasonable and necessary for such repairs, maintenance and upkeep. The Lessee shall pay all reasonable costs related to such maintenance, repairs and upkeep.
6. Insurance: The Lessee shall procure and maintain, at its own expense, appropriate insurance for the Ship, as well as liability insurance for the Lessee’s operation of the Ship. The Lessee shall provide the Lessor with proof of such insurance prior to the commencement of the Lease Period, and on an annual basis during the Lease Period.
7. Right of Re-entry: In the event of a breach of the Lease by either party, the party not in breach shall have the right of re-entry onto the Ship to reclaim said Ship.
8. Assignment: Neither party may assign this Lease or any of its rights or obligations hereunder without the prior written consent of the other party.
9. Indemnification: The Lessee agrees to indemnify and hold the Lessor harmless from any and all claims and liabilities arising out of the Lessee’s possession and operation of the Ship, or any other use or misuse related to the Ship, while it is in the Lessee’s possession.
10. Termination: Either party may terminate this Lease and all of its rights and obligations upon written notice if the other party is in breach of any of the terms, covenants or conditions of this Lease and said breach has not been cured within ___________[time period] of receipt of notice.
11. Jurisdiction: This Lease shall be construed and enforced according to the laws of the ___________[ State/Province].
12. Entire Agreement: This Lease contains the complete and exclusive understanding of the parties and supersedes all prior and contemporaneous agreements, understandings and representations. This Agreement may be amended or modified only upon express written consent of the parties.
IN WITNESS WHEREOF, the parties have executed this Lease as of the date first set forth above.
