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Drone Rental Lease Agreement

GENERAL CONDITIONS

THIS EQUIPMENT LEASE AGREEMENT (“Lease”) between Lessor (Blue Skies Drone Rental LLC, herin referred to as BSDR or Lessor or Owner) and Lessee (customer making payment) shall be in force as soon as the Lessee confirms the order via purchase order or makes payment via any payment means whether electronic, bank transfer, credit card, cash or other payment method. Equipment Lease Agreement and all the Terms and Conditions herein are accepted and agreed to by Lessee as presented by Lessor independent of whether Lessee has read them or understands them.

DEFINITIONS

Remote Pilot in Command (RPIC):  Refer to the official FAA definition.  This is the person ultimately responsible for all operation of remote vehicles.

Retail Value: The current manufacturer retail value of the equipment in new condition.

ORDER ACCEPTANCE BY LESSOR

Lessor reserves the right to refuse service to any potential customer, limit quantities, amend Lessee’s order, cancel Lessee’s order at any time for any reason, demand immediate return of Lessor equipment at any time for any reason including before a Lessee’s rental period has expired.  Payment or booking by Lessee does not constitute order acceptance by Lessor.   Lessor shall not be held liable for any revenue lost or costs incurred by Lessee as a result of Lessor not providing the requested equipment or by Lessor demanding immediate return of leased equipment, either in whole or in part, by the requested date.  An equitable adjustment based on the changes made by the Lessor may be provided to the Lessee at Lessor discretion and  will under no circumstance exceed the amount of the original rental fees paid by the Lessee.  Liability of Lessor is limited to the amount of original rental fees paid by Lessee.

LIABILITY AND INDEMNIFICATION

Lessor does not assume, and the customer indemnifies Lessor against any and all liability or claims resulting from the use or malfunction of the rented equipment.

Lessee is responsible and liable financially and legally for any and all damages to the rented equipment, person, or property that may result in the course of using the rented equipment or its failure.  Lessee is recommended to carry both liability insurance coverage as well as non-owned equipment insurance that will cover the equipment leased or rented from Lessor. Lessor (Blue Skies Drone Rental LLC, Blue Skies Drones DBA), it’s owner, or it’s affiliates are not responsible or liable for any laws broken by Lessee or its designated operators, lost revenue of Lessee as a result of equipment operation or failure or of Lessor to provide the requested equipment, fines or penalties incurred, accidents, damage to person or property, invasion of privacy, sabotage, or damage to the leased equipment whether unintentional or intentional by Lessee or any other incident that may occur as a result of Lessee use, including equipment malfunction out of control of the user (Lessee). Lessee accepts full responsibility for damage to people or property including themselves and the leased equipment and for operating the equipment in a safe manner.

Lessee is solely responsible for designating the Remote Pilot in Command that will operate the equipment.  The Remote Pilot in Command (RPIC) is responsible for assuring airworthiness of the equipment and ensuring the safe and effective operation of the equipment.  This agreement is between the Lessee and the Lessor, NOT between any individual that Lessee may designate as RPIC to operate the equipment.

Lessor makes no representation as to the satisfactory operation of the leased equipment and will only process refunds at Lessor’s discretion.  Lessor will not be liable to the Lessee for consequential or collateral damages resulting from any defect or deficiencies in accepted items.

Lessor shall in good faith assure that all equipment is in functional condition before delivering or shipping to Lessee.  Liability of Lessor, its owners, its affiliates, its contracted courier, employees, contractors for any failure to provide the Lessee the requested rental equipment for the requested dates, shall be limited to the amount of the original rental fees paid by the Lessee for the equipment rental order in dispute.  Lessor may at its discretion provide a reasonable settlement for any failure on the part of Lessor, it’s contractors, or employed agents but the extent of liability will under no circumstance exceed the amount of the original rental fees paid by the Lessee for the order in dispute.

Any information on regulations, operation, guidance, etc, provided by Lessor, it’s owner, or affiliates on its website or via email or any other means of communication should be considered as “information only”, Lessee is responsible for obtaining the correct information on equipment operation, care, and control, and laws applicable to operation where Lessee resides and operates.  Lessee shall use the Equipment in a careful and proper manner and shall comply with and conform to all applicable laws, ordinances, and regulations in any way relating to the use or possession of the Equipment.

Lessee is renting equipment only.  Lessee is not renting or paying for any technical support service, consulting, or expertise neither legal nor technical unless such expertise or consulting services have been separately and explicitly purchased.  Lessee is solely responsible to possess or gain via their own means the knowledge and experience necessary for the safe and effective operation of the equipment.  Lessee is advised to rent equipment ahead of time before any critical projects and to plan some contingency time for any self-training needed, any delays in equipment delivery by courier used by Lessor, weather or any other cause of delay.

Technical Support may be provided by Lessor as a courtesy during business hours.  Lessor is not obligated to provide any technical support services under this agreement.  Any technical support given to Lessee or any self help guides, manuals, or any published information on Lessor’s websites shall be considered information only.   Lessee is ultimately responsible for ensuring that they have the correct information for the safe and effective operation of the equipment.

RESERVATION CANCELLATION POLICY

Lessee shall be entitled to a refund of monies paid minus a cancellation fee at Lessor discretion if reservation is canceled prior to equipment being shipped.  Once equipment has been shipped by Lessor, no refunds due to cancellation of a reservation will be issued.  Cancellation fee is variable based on equipment models and types.

OWNERSHIP OF EQUIPMENT AND REPOSSESSION

It is understood and agreed that this leased equipment is Lessor’s personal property (sometimes herein called “equipment”), is leased to Lessee by said Lessor and Owner and will be used by the Lessee for the stated period and only for the purposes for which this equipment was manufactured and intended. Use for any illegal purpose or in any illegal manner is prohibited.  Ownership of equipment shall remain that of the Lessor at all times before, during, and at the expiration of the rental period unless Lessor specifically in writing transfers ownership to Lessee as a result of Lessee making payment to purchase the rental equipment.

Lessor reserves the right to demand immediate return of Lessor owned equipment at any time for any reason.  If Lessee does not respond within 24 hr to or denies the Lessor request to immediate return of their property then to enforce and protect Lessor’s ownership rights of the property, Lessee agrees Lessor may re-take the property from Lessee at any time using employees or 3rd party representatives employed by Lessor for such purpose.  Lessor or its representative may enter upon the premises of Lessee or re-take the equipment from Lessee at any time or in any place where the equipment may be.  Lessee hereby waives any right of action against Lessee for such retaking or entry.  Lessee can be held liable for all costs incurred by Lessor in securing the return of said equipment by any means necessary and lawful.

RENTAL FEES AND DEPOSIT

All rental prices posted at www.blueskiesdronerental.com or provided to Lessee via a custom quote shall constitute Lessor’s offer for fair rental price of the equipment.  Every effort is made to assure descriptions and prices are correct. Lessee has no right to receive any equipment for posted prices that Lessor determines are in error.  Lessor reserves the right to correct errors in pricing and availability as needed and without warning or notice provided the equipment has not yet been shipped or delivered to Lessee.

A deposit may be required of the Lessee by the Lessor.  Lessor at its sole discretion may waive collection of a deposit.  Said deposit will be held by Lessor until the leased equipment is returned to the Lessor by the Lessee in good condition, on time, and with all accessories included in the return package that were originally transferred to Lessee.  The deposit may be used to cover damages to the equipment incurred during the Lessee’s rental period, missing equipment or accessories, for late fees, or for any other reason deemed necessary by Lessor to enforce any portion of this agreement or for expenses incurred by Lessor with respect to return of equipment.  The deposit may not cover all charges due to Lessor.  When deposit has not been collected from Lessee or the deposit is not sufficient to cover charges due to Lessor then Lessee herby authorizes Lessor to bill Lessee or charge the credit card on file.

RENTAL TERM, LATE FEES, AND SURRENDER OF EQUIPMENT

The Rental Period is defined on the rental order.  For pick-up, Lessee is responsible to arrive to Lessor location on the rental period start day at least 30 min before Lessor close of business hours.   For shipped rentals the rental period begins at first delivery attempt made by shipping courier as reported by shipping courier to the Lessee’s delivery address as written in the order.  Lessee is responsible to be available to receive the leased equipment or retrieve the equipment from the shipping courier location as necessary.  Lessor reserves the right to retain all rental and shipping fees and other associated fees for any rental booked by Lessee which Lessor ships to address provided by Lessee but for which Lessee is unable or unwilling to be available to receive or to retrieve the package from the shipping courier location.

The equipment shall be returned to Lessor location in person or shipped back on or before the shipping courier cutoff time for the business day of the last day of the rental period as defined in the order placed by the Lessee.  Business days shall be defined as Monday through Friday excepting common U.S. holidays as posted by the United States Postal Service or other closures at BSDR discretion.  Lessee is notified that some shipping cutoff times vary by location and Lessee acknowledges their responsibility to properly verify shipping cutoff times and drop-off the equipment appropriately to meet these cutoff times for the Lessee’s chosen drop-off location. Any return shipment that is dropped off on the last day of the rental term after the shipping cutoff time at the location from which it is being returned shall be deemed late.

After rental period is over, late fees will accrue in the amount of the one day rental rate, for the equipment as posted on Lessor’s websites, times the number of days late.   Late days will continue accruing until Lessee ships the equipment back as verified by shipping courier tracking system.  Optionally, the Lessee may purchase extra rental days and keep the equipment for longer periods as long as approval from Lessor is obtained and payment is received prior to expiration of the original rental term and prior to the beginning of the extended rental term.  Lessee shall immediately notify Lessor if Lessee cannot return the equipment on the expiration of the rental period.  Any equipment rental that is in excess of 7 days late without prior notification or arrangement by the Lessee with the Lessor will be considered in default and will be accused of criminal theft of property with the maximum criminal theft classification allowed by law.

EARLY RETURN OF EQUIPMENT

Lessor shall not be obligated to provide a refund of unused days in the event that equipment is returned by Lessee earlier than the last day of their rental term including but not limited to damage of the equipment in the course of use by the Lessee, change of Lessee plans, inclement weather interfering with plans of Lessee, or Lessor demanding immediate return of the equipment for any reason, etc

RECEIVING, INSPECTION, AND RETURNING

Lessor ships all packages with signature required on delivery.  No exceptions to this rule may be authorized.  If Lessee will not be available to receive the equipment, then Lessee shall assure the shipping address on the order is to an authorized FedEx shipping location to be held for pickup.  Lessee assumes all responsibility and liability for receiving and picking up packages that are shown as delivered to the shipping address on the order by the shipping courier tracking system.  Lessor ships all packages via common courier using a transport method to allow package to arrive on customer’s selected start date.  Circumstances beyond Lessor’s control may cause package to arrive later than planned.  Under such circumstances, Lessor can at their discretion authorize the rental term start and end dates to shift commensurate with the number of days which the package was delayed in transit.

As soon as the equipment is reported “delivered” by the carrier or courier (UPS, USPS, FedEx, or other) the responsibility for the equipment shall be considered transferred to Lessee.  Lessee shall be held responsible for any damage, loss or theft of the rental equipment.  Lessee is advised to monitor the package shipment and assure that someone is available to sign for and receive the equipment from its delivered location to prevent theft or damage from the elements.

Lessee agrees to notify Lessor of any damage to equipment incurred during shipping and provide photo evidence within 24 hours of receiving said equipment. If notice is not received within 24 hours then it will be assumed the equipment was received in working order and is an accepted item.

For damage or non-functional equipment reported by Lessee before Lessee use and before 24hr have expired from the time of Lessee receipt of equipment and verified by Lessor, an equitable adjustment based on the determination made by Lessor may be provided to the Lessee only at Lessor discretion and will under no circumstance exceed the amount of the original rental fees paid by the Lessee.  Liability of Lessor is limited to the amount of original rental fees paid by Lessee.

Lessee shall return ship the equipment in the same fashion and packaging method as it was received and shall use the return shipping label provided by Lessor. Lessee shall be responsible for missing packaging and equipment damage or loss incurred due to improper packaging for return shipping.  Unless prior arrangement is made with Lessor in writing, if another shipping method or address is used besides the shipping label provided by Lessor then, at Lessor’s discretion, the Lessee shall be responsible for the cost of the return shipment, lost revenue charges associated with delays caused by Lessee using their own shipping method, and shipment to the destination desired by the Lessor.

When return shipping the equipment, the Lessee shall obtain a written receipt from the shipping courier that includes a time stamp and a tracking number as proof that the Equipment  has been received by the shipping courier. Lessee will not surrender the Equipment to a shipping facility or agent that cannot or will not produce a written receipt. Lessee shall not deposit the Equipment in self-service shipping receptacles (drop-boxes).  Lessee shall be responsible for the full value of the equipment if Lessee cannot provide a valid drop-off receipt from the courier as explained.

In case of a dispute over whether the Lessee returned the Equipment, if the tracking information for the return shipping label provided by Lessor does not show that the Equipment has been picked up by Shipper and the Lessee has no drop-off receipt, the Equipment is considered unreturned.  If Lessee used an alternate shipping method, not arranged in advance by the parties, and the Equipment is subsequently lost in transit, the Equipment is considered unreturned and Lessee shall be liable for the full retail value of the equipment

DAMAGE TO EQUIPMENT, LOSS, AND THEFT

In the event of any damage or material or physical modifications, Lessee will be responsible for all reasonable costs of Lessor in restoring the Equipment to its normal condition.

Lessee shall, prior to returning/shipping back the equipment, immediately notify Lessor of damage incurred to equipment or unsatisfactory equipment performance and provide a written statement of said damage or irregularity and the events and conditions during the time, including, but not limited to the conditions of flight, the wind and weather at the time, and any other pertinent information.  If equipment is damaged and Lessee does not notify Lessor of damage and provide a written statement prior to return shipping, Lessor may require Lessee to pay additional shipping fees associated with shipping the equipment to Lessors desired location for repair.  Lessee shall, at Lessor’s request, immediately return the leased equipment upon noticing such damage or irregularity.  Lessor shall not be obligated to provide any refund or compensation should said damage and return occur before the equipment rental period expires.

Lessee assumes and shall bear the entire risk of damage to the Equipment from any cause, except damage in the possession of the Shipper, during the term of the Lease.  In the event of damage, Lessor shall choose the repair method and venue.  If Lessor chooses an external venue for repair, Lessee is responsible for the total cost of repair.   Alternately, Lessor may elect to repair the Equipment in-house. In these cases, Lessee shall be responsible for Lessor’s reasonable expenses for parts and labor.

At Lessor’s discretion, an excessive wear and tear fee may be charged if any foreign objects or substances must be removed from or cleaned off of the equipment prior to returning it to service by the Lessor.  At Lessor discretion, Lessee may be charged a lost revenue fee equal to the one day rental rate for the equipment as posted on Lessor’s websites, times the number of days out of service, not to exceed 14 days.

If Lessee claims the equipment was lost, stolen or damaged then they must immediately notify Lessor and provide a written attestation statement as to the facts of the incident.  If equipment was lost, stolen or damaged beyond repair then Lessee will be charged the full retail value of the equipment and must pay within 10 days of receipt of invoice or by the due date listed on the invoice bill provided to Lessee by Lessor whichever is greater.

Lessor reserves all rights to obtain payment and recompense from Lessee for lost, stolen, or damaged equipment by any means necessary including the filing of a criminal police report, credit agency reporting, employing debt collecting agencies, litigation and the maximum late fees and interest collection allowed by law.

EQUIPMENT PROTECTION PLAN (EPP)

EPP is optionally available on some rental equipment.  If EPP is available for the specific model and purchased by Lessee then Lessor shall cover damage only to the following items as listed:  propellers, batteries, remote controller, landing gear feet, , or battery charger.   Damaged Equipment must be returned for EPP to apply.  Lost or missing equipment, damage due to water, sand, or other contaminants, or negligence is NOT covered.  Any part not mentioned in the EPP is NOT covered.

ADDITIONAL DOCUMENTATION REQUIRED

At its discretion, Lessor may require identifying information be provided by Lessee, including copy of company W9 forms, drivers license, or state or country issued identification card or Passport, copy of credit card used for the transaction, or other identifying documentation.  For certain rental equipment packages, Lessee may be required to furnish to Lessor proof of aircraft hull insurance at limits required by Lessor.  Lessor also reserves the right to perform background and credit checks on potential Lessees, at Lessor discretion.

DEFAULT

In the event of default by Lessee, all amounts owed to Lessor are due immediately.  In the event of default, Lessee shall be responsible for any reasonable expenses of Lessor in attempting to recover the amount owed from Lessee including collection fees and attorney’s fees.

Furthermore, Lessor reserves the right to pursue all available civil and criminal remedies against lessee, including but not limited to: recovering possession of the equipment, obtaining from Lessee’s payment form or deposit any amounts owed, hiring outside debt collection firms or private investigators, filing of criminal charges, reporting to consumer credit bureaus, and any civil remedies available. These remedies shall not be considered exclusive.

ADDITIONAL ITEMS

Unless Lessee notifies Lessor in writing to the contrary, any pictures or video footage or other file left on any storage media returned with the rented equipment shall become property of Blue Skies Drone Rental to use as Lessor sees fit, including for promotional or advertising purposes.

Lessee shall notify Lessor beforehand of any international transportation or transportation by means of any commercial flight of the leased equipment.

 ENTIRE AGREEMENT

This Lease constitutes the entire agreement between the Parties and supersedes any prior understanding or representation of any kind preceding the date of this Lease except for any specific Terms and Conditions provided for in an invoice paid by Lessee, in which case the terms and conditions shall be in addition to the conditions of this agreement NOT in exclusion or precedence to. There are no other promises, conditions, understandings or other agreements, whether oral or written, relating to the subject matter of this Lease.

SEVERABILITY AND GOVERNING LAW

This Agreement is entered into in Snohomish County, State of Washington and the venue for any dispute hereunder shall lie in Snohomish County Superior Court.  The parties (Lessor & Lessee) agree that this agreement shall be construed pursuant to the laws of the State of Washington even though Lessee may reside in a different state or use the equipment nationally or internationally.

All rights reserved, Blue Skies Drone Rental, copyright 2019