AIRCRAFTLEASEAGREEMENT

This Aircraft Lease Agreement is entered into by and between MUSTANG SALLY AVIATION, LLC. , with its
Principle office located at 55 FOXWOOD LANE, CAMDEN, SC 29020, hereinafter referred to as Lessor and
Mustang Flyers Aviation, Inc. 1954 First Avenue, PO Box 461627San Antonio, TX 782461627 hereinafter
referredtoasLessee.

1.LEASEOFAIRCRAFT:

LessorherebyleasestoLesseethefollowingdescribedAircraftwithstandardequipmentandtheoptional
equipmentlistedbelow

Year,Manufacturer,Model:19972008Cessna172S

N#:N6718XSerialNumber:172S10000

EngineMake&Model:LycomingO360

2.DELIVERYANDACCEPTANCEOFAIRCRAFT:

TheAIRCRAFTwillbedeliveredbyLessortoLesseeSanAntonio,TxorLessorwarrantsthatupondeliverythe
AircraftshallbeingoodconditionandfitforLESSESSuse.LesseereservestherighttoInspecttheconditionof
theAircraftuponAcceptance/DeliveryReceiptattachedhereto.

3.TERMOFLEASE:

TheAircraftwillbeleasedforaminimumtermofOne(1)Year.Theleaseshallcommenceonthedatethe
AircraftisacceptedbyLesseeasshownontheAircraftAcceptance/DeliveryReceiptsignedbytheLessee
andattachedhereto.Attheexpirationoftheleaseperiod,theleaseshallcontinueonamonthtomonthbasis,
duringwhichtimeeitherpartymayterminatebygivinga60daywrittennoticeofintenttoterminatetothe
other.

4.LEASERENTAL:

InconsiderationfortheleaseofeachAircraft,LesseeagreestopayLessor:$47.00USDperHobbshourifeach
aircraftisutilized100ormorehourspermonth,$50.00perHobbshourifutilizedlessthan100Hoursbutmore
than70HoursPerMonth,a40HouraMonth,$55.00USDperHobbsHour,480hourAnnualminimumof
$26,400USDPerAircraftdoesapply.

FlighthoursshallbedeterminedbytheHobbsmeter,andthemonthlyrentalpaymentsshallcomputedusing
thebaseHobbsmeterreadingshownontheAcceptance/DeliveryReceipt.

5.Insurance:

Lesseeshall,atitsownexpense,secureandmaintaininfullforceandeffectthroughoutthetermofthislease,as
aminimum,suchinsurancecoverageontheAircraftasfollows:

 A.BodilyInjuryLiabilityExcludingPassengers:$1,000,000.00

B.BodilyInjuryLiabilityPassengers:100,000.00

C.PropertyDamageLiability:$1,000,000.00

D. Hull Insurance : All risk ground and flight Hull Insurance on Aircraft shall be in the amount of
$125,000USDfortermofthislease,withmaximumHulldeductiblesasshowbelow:
E. HullDeductibles:$5,000.00NotinMotion;$5,000.00InMotion;
F. Lessee shall furnish to Lessor certificates of insurance, with evidence that Hull and Liability insurance
policies name Lessors as Owner/Lessor: as Loss Payee for Aircraft Physical Damage Coverage
thereunder:

Lessorslienholder,mustbeprovidedBreachofWarrantycoverage,inthiscaseCessnaFinanceCorp,100N.
Broadway,Suite600,Wichita,KS67202

G. LesseeshallfurnishtoLessorevidencethattherequiredinsurancehasbeensecuredpriortodeliveryof
Aircraft.

6.RiskofCasualtyLoss:

Intheeventofanylossordamage,LesseeshallpromptlyreportsuchlossordamageordamagetotheLessor,
theinsurancecompany,anyandallapplicablelocal,state,federal,orothergovernmentalagenciesasrequired,
andshallfurnishsuchinformationandexecutesuchdocumentsasmayrequiredforLessortomakeclaimunder
applicableinsurancepolicies,Thisrightsandliabilitiesofthepartiesshallbeasfollows:

A. IttheAircraftislossordamagedbeyondrepair,andtheinsurancecompanypaysLessortheamountofthe
Hullinsurance,LesseeshallpayLessortheamountoftheHullinsurancedeductible,andthisleaseshallend;
B. LesseeacknowledgesthattheHullinsurancedeductibleshallbepaiddirectlytoLessorasrequired;
C. IftheAircraftisonlypartiallydamaged,thisleaseshallremaininfullforceandeffect,andLesseeshallatits
owncostandexpense,repairtheAircraft,soastorestoreAircraft,asnearlyaspossible,tosameandexact
condition as was Aircraft before said damage occurred. To the extent such damage is covered by the
insurancedescribedabove,Lessor,uponreceivingfromLesseesuchinformationandsuchdocumentsasmay
berequired,shallmakeclaimifrequiredundertheHullinsurancepolicyandshallpromptlyreimburseLessee
for the cost of repairing the Aircraft, to the full extent of, but not more than, the net amount of such
insurancerecoveryactuallyreceived;
D. IfpaymentforthedamagestotheAircraftisnotmadetotheLessorbytheinsurancecarrier,Lesseeshallbe
obligated to repair the Aircraft to the required satisfaction of the Lessor at its own cost and expense, and
LessorwillthenrelinquishtoLesseeallclaimsthatitmayhaveagainsttheHullinsurancecarrierunderthe
saidHullinsurancepolicyforthedamagetotheaircraft;
E. During the period that the Aircraft is being repaired, Lessee shall continue to make the monthly rental
paymentsastheybecomedue.

7.MAINTENANCE:

A.Lesseeagreesto,atitsownexpense,providethenecessarylaborandmaterialsformaintenanceofthe
 Aircraftairframe,engines,andattachedassociatedaccessoriesforthetermofthislease.

1.TheLesseeshallberesponsibleforasinglepartlineitemofupto$2000.00USD.Anysingle
partlineitemthatexeceeds$2000.00USDwillbediscussedwiththeLessorpriortopurchaseandtheLessor
has the option to elect to provide the part to the Lessee for $2,000, or to be invoiced for the amount
exceeding$2000.00USD.

B.UponreachingtheproperlyanddulyrecordedTimeBetweenOverhaul(TBO),theEngineandthe

Propeller(s)overhaulshallbetheresponsibilityoftheLessor;

C.Intheeventofenginereplacement,Lessormayelecttorepairtheenginesoastoplaceitingood,safe,
andserviceableconditionforusebytheLessee

8.LEASECOVENANTS:

A.ThatLesseewillendeavortouseandoperatetheAircraftinaccordancewiththemanufacturers

operatinginstructions,inconformitywiththelaws,ordinances,rulesandregulations,municipal,state,

nationalorotherwise,nowexistingthehereafterenacted,controllingorinanywayaffectingthe

operation,useorpossessionoftheAircraftortheuseofanyairportpremisesbytheAircraft,andonly

incompliancewiththeterms,conditionsandlimitationssetforthintheapplicationsfororpoliciesof

insurancemadeorissuedpursuanttothetermsofthislease;

B.ThatLesseesexpensetocausemaintenanceandinspectionsontheAircraftairframe,engines,and

AttachedassociatedaccessoriestobeperformedasrequiredbyFederalAviationAdministrationand

FederalAviationRegulation;

C. THATLesseeshallnotcontractformaintenance,ormakeanyalterationsormodificationstotheAircraft

orinstallanyadditionalequipmentthereinorthereonwithoutpriorwrittenconsentoftheLessor,which
consentoftheLessor,willnotbeunreasonablywithheld;
D. THATLesseewillnotpermitanycharge,lien,orencumbranceofanynaturetobeplacedtoorremainupon
theAircraft;
E. THATLesseeindemnifyandsaveLessorharmlessfromandagainstallclaims,costs,expenses,demand,and
liabilitiesofanynaturewhatsoeverwhichmaybeassertedLesseesuseoroperationoftheAircraft
duringthetermofthislease,whethercausedbyLesseesnegligence,ornot;
F. THATLesseepermittheAircrafttobeoperatedonlybypilotshavingcurrentcertificatesasrequiredbythe
Federal Aviation Administration and Federal Aviation Regulations and described insurance policies,
certificatesorapplications;
G. THATLesseemaintainallrecords,logs,andothermaterialsrequiredbytheFederalAviationAdministration
or any other governmental authority to be maintaines in respect of the Aircraft, to reasonable times for
inspectionbyLessor,andattheexpirationofterminationofthislease,todeliver
SuchmaterialstoLessor;


H.THATapplicable,salestaxes,orotherlocaltaxes,arethefullresponsibilityoftheLessee.(TheLease

RentalratereferencedinParagraph4above,doesnotincludesalestax).

9.DEFAULTBYLESSEE;

IfLesseeshallfailtomakemonthlypaymentsashereinprovided,oranyotheramountspayablethereunder,when
thesamearedueandpayable,orifLesseeshoulddefaultintheperformanceofanyotherterms,conditionsand
covenantstobeperformedbyLessee,oriftheinsuranceashereinprovidedtobemaintainedshallexpireorbe
cancelled,andLesseeshallbeunabletoreplacesuchinsurance,oriftheAircraftshallbemisusedorabandoned,
Lessor , at its option, may take possession of and remove the Aircraft forthwith, without notice to Lessee, and
withorwithoutlegalproceedings.

10.MISCELLANEOUS:

A.Thisagreementis,andisintendedtobealease,andifLesseeperformsitsobligationsunderthislease,

Lesseeshallpeaceablyandquietlyhold,possessandusetheAircraftduringtheentireleaseterm,freefrom

anyinterferenceorhinderance:

B.Neitherpartyshallatanytimeduringthisleaseforanypurposewhatsoeverbeorbecometheagentofthe

other,norshalleitherpartyberesponsiblefortheactsandomissionsoftheotheroritsagents,

C.Theinvalidityofanyportionofthisleaseshallnotaffecttheremainingvalidportionsthereof;

D.Allnoticesshallbebindingonthepartiesheretoifsenttotheaddressoftheapplicablepartysetforth

herein,unlessasubsequentaddresshasbeenfurnished.bymail,byonepartytotheother;

E.Exceptaselsewherehereinprovided,anychangeormodificationtothisleaseshallbeinwritingandsigned

bythepartieshereto;

F.Duringthetermofthislease,theAircraftwillbemaintainedandinspectedinaccordancewithallapplicable

FederalAviationRegulation(s);

G.Duringthetermofthislease,theLesseewillbeinoperationalcontroloftheAircraft,andbyitssignatureset

Forthbelow,Lesseecertifiesthatitunderstandsitsresponsibilityforoperationalcontrolofthe Aircraftand
forcompliancewithapplicableFederalAviationRegulations;

H. All lease payments as set forth in this lease are due at the office of MUSTANG SALLY AVIATION, LLC. 55
TH
FOXWOOD LANE CAMDEN, SC 29020, no later than TENTH (10 ) day of each beginning with the month
TH
followingthemonthinwhichtheleasecommences.Payment(s)receivedaftertheTENTH(10 )dayofthe
monthshallbesubjecttoaTenPercent(10)latefee;
 I. Thisagreementshallbesubjectto,governedby,andconstruedinaccordancewiththelawsofthe
StateofSOUTHCAROLINA.

11.RETURNOFAIRCRAFT:

Lesseeshall,atitsownexpense,andattheexpirationorterminationofthislease,returnAircrafttoLessorat
LONGBEACH,CALONGBEACHAIRPORT(KLGB),withaFreshAnnualInspection.

ShouldLesseereturnAircrafttoLessoratanytimebeforetheexpirationofterminationofthislease,Lessee,
byitssignaturebelow,herebysolemnlyagreestopayLessorthemonthlyminimumLeaseRentalamountas
setforthinParagraph4aboveforeachandeverymonthremaininginthecontractedTermofLease.

12.GUARANTY;

BUSINESS OWNER, is the principal of LESSE herein. As the principal of Lessee, BUSINESS OWNER hereby
unconditionallyguaranteestoalltermssetforthintheAircraftLesseeAgreement,andaggresstoguarantee
the payment of all bills an accounts including, but not limited to, lease payments, insurance payments,
maintenancepaymentstoincludepartsandlabor,oranyotherpaymentsrequiredtobeunderthetermsof
this lease. This Guaranty shall act as an unlimited continuing Guaranty for any aircraft leased by Lessee
fromLessorherein;

13.DEPOSIT(S);

NODEPOSITREQUIRED

14.DATE

Executedthis25thdayofOctober,2009.

15,SIGNATURES;

LESSORLESSEE

By:By:

KEITHW.FURLONG

Title:President,MustangSallyAviation,LLC. Title:

GUARANTY:

By:_______________________________

Title:Individual


AIRCRAFTACCEPTANCE/DELIVERYRECEIPT



TheundersignedLESSEEwithMUSTNAGSALLYAVIATION,LLC..concerningthefollowing
AIRCRAFT:

Year,Manufacturer,Model:19972008Cessna172S

N#:N6718XSerialNumber:172S10000

EngineMake&Model:LycomingO360

TachLeft:_____________TachRight:________________Hobbs:________________________

Herebyacknowledgethathe/shehasinspectedthisabovereferencedAircraft,andhasfoundittobeinaccordance
withthetermsandConditionsoftheleaseAgreement,thatitmeetstheexpectationsandpurposesoftheLESSEE,
and therefore, LESSEE hereby accepts Delivery of AIRCRAFT in accordance with, and on, the terms and Conditions
statedinthesaidCONTRACT.

TheundersignedLESSEEalsoherebyacknowledgesreceiptoftheFollowingAIRCRAFTRECORDS,allofwhichare
received and accounted for in good condition, and LESSEE accepts responsibility for their precise, safe and secure
whereaboutsandupkeepatalltimes,untilAIRCRAFTisreturnedtoLESSOR,MustangSallyAviation,LLC.

ShouldanyAIRFRAMElogbooknotbereturnedtoLessor,LesseeAgreestopayLessoraValuelosspenaltyof
15% of the AVG RETAIL value as determined by the latest edition of Aircraft Bluebook Price Digest for each
Airframelogbooknotreturned!

AIRFRAME:#1TOPRESENT

ENGINE:#1TOPRESENT

PROP.:#1TOPRESENT

AVIONICS:TOPRESENT
MISC:___________________________________________________________________________________

Notes___________________________________________________________________________________________
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________________________________________________________________________________________________
_________________________________________________________

Datedthis_____________dayof_________________,20_______

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