Doric Nimrod Air One Limited - DORIC NIMROD AIR TWO LIMITED

PART V
THE LEASE
Parties and execution
The Company will lease the Asset to Emirates, pursuant to the terms of the Lease to be
executed on or by Admission.
Term
The Lease has a term of twelve years from the lease commencement date, being the date of
delivery of the Asset to Emirates (in its capacity as agent of the Company). The Lease is a
net rental lease pursuant to which Emirates bears all costs relating to the Asset during the
lifetime of the Lease.
The Company does not provide any representation or warranty to Emirates under the Lease in
relation to faults, functioning or performance of the Asset. The Lease permits Emirates to
exercise warranty and guarantee rights directly against Airbus and the other manufacturers of
the Asset.
Lease Rentals
The Lease Rentals consist of Sterling Lease Rentals (£ 360,136 per month) and US$ Lease
Rentals (US$ 1,260,341 per month) for years 1 – 10 of the Lease and Sterling Lease Rentals
(£ 455,058 per month) and US$ Lease Rentals (US$ 432,749 per month) for years 11 – 12 of
the Lease and must be paid monthly in advance up to expiry of the Lease. The US$ Lease
Rentals will be fixed upon aircraft delivery and adjusted based on the interest pricing on the
Loan at that time. The Lessee's obligation to pay is absolute and unconditional (unless there is
a Total Loss of the Asset and the Company has received the applicable Termination Amount
from Emirates or its insurers, together with any outstanding Lease Rentals up to the date on
which the Termination Amount is paid). All payments made by Emirates to the Company are
to be made without reduction of withholding tax and must be grossed-up if and to the extent
that withholding tax is required to be paid by Emirates.
Emirates sub-lease
Emirates has the right to sub-let the Asset to other contractually agreed airlines under certain
conditions. Emirates may also let the Asset on three- month charters, provided it retains
operative control of the Asset. Emirates remains primarily liable to the Company in the event
the Asset is sub-let.
Financial reports
Emirates is required to provide the Company with financial reports and reports relating to the
operation and use of the Asset.
Maintenance
Emirates undertakes to repair any damage or replace any damaged or worn out parts
(including engines) with parts of an equal or greater value and to carry out maintenance of the
Asset in accordance with best industry practice. The Company has the right to inspect the
Asset at specified intervals. Emirates is not permitted to remove an engine from the airframe
of the Asset except for (i) maintenance (ii) use on other Emirates-owned/operated aircraft or
(iii) use by other airlines pursuant to customary pooling and sub-leasing arrangements.
Insurance
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