IN CONSIDERATION OF the mutual covenants and promises in this Agreement, the receipt and sufficiency of which consideration is hereby acknowledged, the Owner leases the Vehicle to the Hirer, and the Hirer leases the Equipment from the Owner on the following terms:

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1. Definitions

 The following definitions are used but not otherwise defined in this Agreement:

"Casualty Value" means the market value of the Vehicle at the end of the Term or when in relation to a Total Loss, the market value the Vehicle would have had at the end of the Term but for the Total Loss.The Casualty Value may be less than, but will not be more than, the original purchase price of the Vehicle.

“Finance House” means financial institutions with whom we have contracted to hire, lease purchase or otherwise finance certain Goods;

"Vehicle" means the specific vehicle handed over to you, for which you have signed for.                                           

"Total Loss" means any loss or damage that is not repairable or that would cost more to repair than the market value of the Vehicle.

The Owner agrees to lease the Vehicle to the Hirer, and the Hirer agrees to lease the Vehicle from the Owner in accordance with the terms set out in this Agreement.

 

2. Term

The Agreement commences on the time and date of handover and will continue on a week-to-week basis (the "Term") until:

1. the Hirer gives one week’s notice to the Owner in writing that they wish to return it;

2. the Hirer ceases to provide services to H2O Logistics Ltd under a Contract for Services;

3. one or more of the circumstances occur, for the Owner to take back immediate possession, subject to the provisions of clause 10; or

4. the expiry of a period of no more than ninety (90) days from the commencement of this Agreement.

In any case, the Term will never be longer than a period of ninety (90) days in total.

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The rent, inclusive of VAT, will be as specified at handover paid each week, in arrears, and will be paid on the Friday of each succeeding week throughout the Term (the "Rent").

 

3. Rent
The rent will be paid in instalments of £234 (inclusive of VAT) each week for SWB and £254 for LWB, in arrears, and will be paid on the Friday of each week throughout the Term (the "Rent").

If a different Rent amount will be applicable, the Hirer will notified by the Owner in writing, prior to confirming the Agreement. In this instance, the amount confirmed separately in writing will supersede the amount stated above.

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4. Picking up the Vehicle

The Hirer will, at the Hirer's own expense and risk, pick up and transport the Vehicle from the location agreed by the Parties.

 

5. Use of Vehicle

The Hirer will use the Vehicle in a good and careful manner and will comply with all of the manufacturer's requirements and recommendations respecting the Vehicle and with any applicable law relevant to the use of the Vehicle.

The Hirer will use the Vehicle for the purpose for which it was designed and not for any other purpose.

The Vehicle shall not be used by any person:

1. To carry any greater number of passengers than the normal which the vehicle is designed to accommodate;

2. To provide commercial services, or to carry on a business activity, unless expressly authorised by the Owner, H2O Logistics Ltd;

3. In contravention of any law, or so as to cause damage or risk to the general public, to passengers or to the Vehicle itself;

4. Outside the United Kingdom;

5. To transport goods in violation of customs regulations, or in any other illegal manner;

6. Under the influence of alcohol, illegal drugs or any other substance which may impair their ability to drive safely;

7. As a security deposit, or the like.

Unless the Hirer obtains the prior written consent of the Owner, the Hirer will not alter, modify or attach anything to the Vehicle unless the alteration, modification or attachment is easily removable without damaging the functional capabilities or economic value of the Vehicle.

 

6. Repair and Maintenance of Vehicle

The Hirer will, at the Hirer's own expense, keep the Vehicle in good repair, appearance and condition, normal and reasonable wear and tear excepted. The Hirer will supply all parts that are necessary to keep the Vehicle in such a state.

If the Vehicle is not in good repair, appearance and condition when it is returned to the Owner, the Owner may make such repairs or may cause such repairs to be made as are necessary to put the Vehicle in a state of good repair, appearance and condition, normal and reasonable wear and tear excepted. The Owner will make the said repairs within a reasonable time of taking possession of the Vehicle and where possible, will give the Hirer written notice of any repairs, subject to the provisions of Schedule 1.

The Hirer may, but is not obligated to, enforce any warranty that the Owner has against the supplier or manufacturer of the Vehicle. The Hirer will enforce such warranty or indemnity in its own name and at its own expense.

The Hirer is not to allow the smoking of tobacco, vaporisers or e-cigarettes.

 

The Vehicle will be in good working order and good condition upon delivery.

The Vehicle is of saleable quality and is fit for the purposes for which it is ordinarily used.

 

7. Loss and Damage

To the extent permitted by law, the Hirer will be responsible for risk of loss, theft, damage or destruction to the Vehicle from any and every cause.

In the instance that any damage is caused to the vehicle whilst in the care of the Hirer, the Owner reserves the right to charge to the Hirer up to the full insurance excess of £2500.

Either in addition, or instead of the full insurance excess, the Owner reserves the right to charge the hirer such reasonable costs as set out in Schedule 1.

If the Vehicle is lost or damaged, the Hirer will continue paying Rent, will provide the Owner with prompt written notice of such loss or damage and will, if the Vehicle is repairable, put or cause the Vehicle to be put in a state of good repair, appearance and condition.

In the event of Total Loss of the Vehicle, the Hirer will provide the Owner with prompt written notice of such loss and will pay to the Owner all unpaid Rent for the Term plus the Casualty Value of the Vehicle at which point, subject to any rights of the of the Finance Houses, ownership of the vehicle may pass to the Hirer’.

 

8. Ownership and Right to Lease

Subject to any rights of the Finance House, the Vehicle is the property of the Owner and will remain the property of the Owner.

The Hirer will not encumber the Vehicle or allow the Vehicle to be encumbered or pledge the Vehicle as security in any manner.

The Owner warrants that it has the right to lease the Vehicle according to the terms in this Agreement.

The Owner warrants that as long as no Event of Default, or fundamental breach of this Agreement has occurred, the Owner will not disturb the Hirer's unrestricted use of the Vehicle for the purpose for which the Vehicle was designed.

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 9. Returning the Vehicle

At the end of the Term or upon earlier termination of this Agreement, the Hirer will return the Vehicle at the Hirer's cost, expense and risk to the Owner by delivering the Vehicle to . If the Hirer fails to return the Vehicle to the Owner at the end of the Term or any earlier termination of this Agreement, the Hirer will pay to the Owner any unpaid Rent for the Term plus 10% of the Casualty Value.

If the hirer does not return the vehicle at the agreed time, and to an authorised representative of H2O, then the provisions of section 11 and/or additional charges set out in Schedule 1 may apply.

 

10. Insurances

The Hirer will, during the whole of the Term and for as long as the Hirer has possession of the Vehicle, take out, maintain and pay for insurance against loss of and damage to the Vehicle for the full replacement value of the Vehicle and will name the Owner as the loss payee.

The insurance will be in the joint name of the Owner and the Hirer so that both the Owner and the Hirer will be protected from liability and will provide primary and non-contributing coverage for the Owner. The insurance policy will have a provision that it will not be modified or cancelled unless the insurer provides the Owner with thirty (30) days written notice stating when such modification or cancellation will be effective.

Upon written demand by the Owner, the Hirer will provide the Owner with an original policy or certificate evidencing such insurance.

The Hirer appoints the Owner as the Hirer's attorney-in-fact ("Attorney") with the power to maintain the above insurance and to secure payments arising out of any insurance policy required by this Agreement. The Attorney has the power to do all acts that are necessary or desirable to secure such payments.

If the Hirer fails to maintain and pay for such insurance, the Owner may, but is not obligated to, obtain such insurance, but if the Owner does obtain such insurance, the Hirer will pay to the Owner the cost of such insurance upon notification from the Owner of the amount.

 

The Hirer will indemnify and hold harmless the Owner against any and all claims, actions, suits, proceedings, costs, expenses, damages and liabilities, including attorney's fees and costs, arising out of or related to the Hirer's use of the Vehicle.

 

11. Default

The occurrence of any one or more of the following events will constitute an event of default ("Event of Default") under this Agreement:

1. The Hirer fails to pay any amount provided for in this Agreement within seven days after same is due or otherwise breaches the Hirer's obligations under this Agreement.

2. The Hirer becomes insolvent or makes an assignment of rights or property for the benefit of creditors or files for or has bankruptcy proceedings instituted against it under the bankruptcy law of the United Kingdom or another competent jurisdiction.

3. A writ of attachment or execution is levied on the Vehicle and is not released or satisfied within 10 days.

On the occurrence of an Event of Default, the Owner will be entitled to pursue any one or more of the following remedies (the "Remedies"):

1. Declare the entire amount of the Rent for the Term immediately due and payable without notice or demand to the Hirer.

2. Apply the Deposit toward any amount owing to the Owner.

3. Commence legal proceedings to recover the Rent and other obligations accrued before and after the Event of Default.

4. Take possession of the Vehicle, without demand or notice, wherever same may be located, without any court order or other process of law. The Hirer waives any and all damage occasioned by such taking of possession.

5. Terminate this Agreement immediately upon written notice to the Hirer.

6. Pursue any other remedy available in law or equity.

7. The Hirer is entitled to the protection and remedies available to them under the Consumer Credit Act 1974.

 

12. Step-in Rights

The Hirer acknowledge that the finance houses used by us in order to fund the acquisition or use of certain goods have certain rights under this agreement, even though they have not signed the agreement. These rights include:

the right to visit and enter your premises to confirm the whereabouts of goods funded by them (“Financed Goods”); and

in the event that we enter into receivership, administration or liquidation and we have not fully paid the Finance House for Financed Goods funded by it, or a termination event or default occurs under an agreement between us and the relevant Finance House, the Finance House has the absolute and immediate right to enter your premises, identify the whereabouts of its Financed Goods and uplift them from your premises. As an alternative, the Finance House may, at its discretion, without prejudice to its rights under this clause, agree to enter into a direct relationship with you to continue leasing the Financed Goods to you until the end of the rental period.

Subject to the Finance House’s agreement, if we go into liquidation, administration or receivership you shall be entitled to pay the rental charges to the Finance House directly so as to avoid termination of the rental agreement in respect of the Financed Goods, such payments must be made without set off, deduction or counterclaim.

 

13. Entire Agreement

This Agreement will constitute the entire agreement between the Parties. Any prior understanding or representation of any kind preceding the date of this Agreement will not be binding on either Party except to the extent incorporated in this Agreement.

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14. Address for Notice

Service of all notices under this Agreement will be delivered personally or sent by registered mail or courier to the relevant Parties address as stated at the top of this Agreement.

 

All pound amounts in this agreement refer to pounds sterling, and all payments required to be paid under this Agreement will be paid in pound sterling unless the Parties agree otherwise.

 Headings are inserted for the convenience of the Parties only and are not to be considered when interpreting this Agreement. Words in the singular mean and include the plural and vice versa. Words in the masculine mean and include the feminine and vice versa.

 

15. Governing Law

This Agreement will be construed in accordance with and governed by the laws of England and Wales and the Parties submit to the exclusive jurisdiction of the English and Welsh courts.

If there is a conflict between any provision of this Agreement and the applicable legislation of England (the "Act"), the Act will prevail and such provisions of the Agreement will be amended or deleted as necessary in order to comply with the Act. Further, any provisions that are required by the Act are incorporated into this Agreement.

In the event that any of the provisions of this Agreement are held to be invalid or unenforceable in whole or in part, those provisions to the extent enforceable and all other provisions will nevertheless continue to be valid and enforceable as though the invalid or unenforceable parts had not been included in this Agreement and the remaining provisions had been executed by both Parties subsequent to the expungement of the invalid provision.

 

16. General Terms

This Agreement may be executed in counterparts. Facsimile signatures are binding and are considered to be original signatures.

Time is of the essence in this Agreement.

This Agreement will extend to and be binding upon and inure to the benefit of the respective heirs, executors, administrators, successors and assigns, as the case may be, of each Party to this Agreement.

Neither Party will be liable in damages or have the right to terminate this Agreement for any delay or default in performance if such delay or default is caused by conditions beyond its control including, but not limited to Acts of God, Government restrictions, wars, insurrections, natural disasters, such as earthquakes, hurricanes or floods and/or any other cause beyond the reasonable control of the Party whose performance is affected.

 

17. Notice to Hirer

This is a lease. You are not buying the Vehicle. Do not sign this Agreement before you read it. You are entitled to a completed copy of this Agreement when you sign it.

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SCHEDULE 1: ADDITIONAL CHARGES

Any Vehicle damage recorded on the return, or during the Term of any vehicle hire may be subject to the following charges:

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Excess Mileage: Any mileage in excess of 35,000 miles per annum, or pro rata thereof  10p per mile

Valeting Charge: If the vehicle is returned in a condition that requires a professional valet  £75

Collection Charge: If the Hirer is unable or unwilling to return the vehicle to the location specified in section 11  £400

Key Charge: If the Hirer has lost or damaged one or more of the keys supplied with the vehicle  £400 - £900

Windscreen Charge: If the vehicle is returned with a damaged or missing windscreen, window or another glazed panel  £1200

Tool Kit Charge: If the vehicle is returned with a missing, incomplete or damaged tool kit that would’ve been supplied with the vehicle  £150

Tyre/Wheel Charge: If the vehicle is returned with kerb damage to the wheels, or a missing or damaged spare wheel  £100 - £400

Puncture Charge: If a tyre is punctured or damaged £120 per tyre

Failure to Report Charge: If the Hirer has failed to report any incident, fault or damage to the vehicle  £50 per issue

Fuel Charge: If the vehicle is returned without the fuel tank being full  £2.83 per litre

Door Handle Charge: If the vehicle’s door handles are damaged or not working as intended  As invoiced

Smoking Charge: If the vehicle is returned with damage or evidence of smoking tobacco, vaporisers or e-cigarettes  £100

 

Please be aware that in certain circumstances of a non-fault incident where a vehicle requires recovering by one of H2O Logistics Ltd vehicle partners, an additional charge in respect of this recovery may apply.

This is to reimburse the actual costs suffered by H2O to the vehicle partner in these circumstances. H2O will, at the earliest possible time, notify you:

1. If these charges will apply to any incident in which you have been involved;

2. The amount of the additional charge applicable, as notified to us by the vehicle partner; and

3. The date at which the additional payment will be due, and any arrangements for payment.

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All charges are excluding VAT which will be applied at the applicable rate.

No charge will be applied unless it can be proved that the damage was incurred by the Hirer, or whilst the vehicle was in the care of the Hirer.

The existence and extent of any damage is assessed subject to the reasonable opinion of the Owner, who has exclusive right to apply charges, make good any damage or other appropriate course of action, unless agreed otherwise with the Hirer in writing.