COMPANY RENTS THE VEHICLE DESCRIBED IN THIS AGREEMENT TO CUSTOMER (“RENTER”) SUBJECT TO THE FOLLOWING TERMS AND CONDITIONS:
1. Prohibited Uses. Renter agrees the Vehicle will not be operated or used:
(a) By any person under the age of 21, unless a federal, state, or provincial law prohibits the setting of an age requirement.
(b) By any person who is not a qualified and licensed driver.
(c) By any person who has obtained authority to operate the Vehicle by fraud or misrepresentation; whose license has been suspended or revoked within the last three (3) years; or who has been convicted of a major traffic violation (excluding parking violations), including but not limited to careless or reckless driving or driving while under the influence of alcohol, drugs or other intoxicants within the prior three (3) years.
(d) By any person under the influence of intoxicants or drugs, or suffering from any incapacity affecting the ability to drive.
(e) In excess of applicable speed limit; in a reckless or abusive manner; in a race or speed contest; or for any illegal purpose.
(f) Outside the scope of the driver's employment or outside the usual course of Renter's business.
(g) When the Vehicle is loaded in excess of its maximum rated capacity; when the cargo is improperly loaded or secured; or when the Vehicle is used to transport persons other than in the passenger compartment.
(h) To transport hazardous materials as defined by law, unless authorized in writing by the Company.
(i) To transport any car, truck, animal, or human being inside the cargo section of the vehicle.
(j) In any area where there is not sufficient height or width clearance or which is not paved.
(k) In any unsafe, reckless, or grossly negligent manner. A PROHIBITED USE OF THE VEHICLE VIOLATES THIS AGREEMENT AND MAKES THE VEHICLE SUBJECT TO IMMEDIATE RECOVERY BY THE COMPANY. PROHIBITED USES MAY ALSO VOID ANY APPLICABLE INSURANCE COVERAGE.
2. Authorized Driver(s). The Vehicle may only be driven by licensed and qualified drivers who operate the Vehicle in accordance with the terms of this Agreement.
3. Renter's Representations and Obligations. Renter acknowledges and agrees:
(a) The Vehicle is owned or offered for rental by the Company
(b) The Vehicle has been inspected by the Renter and is received in good condition.
(c) Renter will not perform any repairs, adjustments, or replacement of any parts without the Company's written consent.
(d) The Vehicle will at all times be operated under the Renter's exclusive possession and control and only in a lawful manner in connection with present business of Renter.
(e) Renter and Renters drivers are not employees or agents of the Company.
(f) Renter will pay any special license or tax required by the business of Renter, including without limitation such licenses, taxes, fines, or tolls imposed against Renter arising out of the operation of the Vehicle. Renter further agrees to file, or assist the Company in the filing of, any and all returns or reports required by any governmental authority as a result of Renter's use or operation of the Vehicle.
(g) To conduct pre- and post-trip inspections of the vehicle and notify the Company of any Vehicle issues. Renter agrees that the Company will not be liable for any FMCSA violations or citations for which the Company was not provided notice.
(h) To complete at the Company's request at the end of each trip a report in a format which permits the Company to comply with licensing and fuel tax reporting obligations. RENTER AGREES TO REIMBURSE THE COMPANY FOR ANY FINES OR COSTS RESULTING FROM RENTER'S INACCURATE OR INCOMPLETE TRIP REPORTS AND/OR MISSING FUEL RECEIPTS.
(i) Fuel is not included in the cost of the rental. Renter is responsible for returning the Vehicle with a full tank. If Renter does not refuel the Vehicle prior to return, Renter will pay refueling service charges plus the cost of fuel (which may be more than retail fuel prices). Renter also is responsible for any fuel permits ordered during the term of this Agreement.
(j) To refrain from tampering or disabling any telematics or electronic logging device. Renter is responsible for the full replacement cost for any loss or damage to the device(s). All hardware, software, and data will remain the property of the Company.
4. Payment. Renter agrees to pay Company all rental and other charges set forth in this Agreement covering the Vehicle(s) without deduction or set-off. All charges shall be paid in accordance with the terms detailed on invoice Renter agrees to pay a late charge of 1 ½ percent per month or the maximum legally permissible amount on each billing not to exceed 1 1/2 percent per month for all sums not paid as provided herein. Renter agrees to pay all costs of collection incurred by the Company, including reasonable attorneys’ fees.
5. Insurance. Renter agrees to maintain insurance coverage during the term of this Agreement as follows:
(a) If Renter purchases insurance coverage offered through the Allen Insurance Group, the Vehicle will be covered by an automobile liability and/or property damage insurance policy issued by Wesco Insurance Company, a copy of which is available for inspection upon request from the Company. RENTER AGREES TO COMPLY WITH AND BE BOUND BY ALL TERMS, CONDITIONS, AND EXCLUSIONS OF THE POLICY, WHICH ARE INCORPORATED BY REFERENCE HEREIN. The insurance coverage shall not exceed $1,000,000 combined single limit for both bodily injury and property damage. Coverage is excluded for property owned by or in the possession of the Renter or for any injuries of any nature whatsoever to Renter, Renter's agents, employees, guests, members of Renter's household or other occupants of the Vehicle. Additional exclusions apply and breach of this Agreement may void insurance coverage. The Company is not an insurance broker and does not warrant that the insurance coverage offered is sufficient to protect Renter from liabilities that might arise. Renter is free to purchase additional insurance as may be determined necessary.
(b) If Renter declines liability insurance coverage offered through the Allen Insurance Group, Renter shall, at its sole cost and expense, maintain an automobile liability insurance policy with bodily injury and property damage liability limits of not less than $1,000,000 combined single limit on a primary and not excess or contributory basis covering its liability for damages as a result of the maintenance, use, operation, storage, or transportation of the Vehicle. The insurance will be maintained with insurers licensed and authorized to do business in the states in which the Vehicle will be operated and with an ³A.M. Best rating of not less than B+ VII. The Company must be named as additional insured without liability for premiums. The insurance must provide for prompt written notice to the Company of any failure to pay a premium and for at least thirty (30) days' prior written notice of cancellation or non-renewal of the policy and of any material change in or to the coverage. Renter shall furnish the Company with a certificate issued by the insurer or a licensed insurance broker confirming the required insurance coverage is maintained and in full force and effect.
(c) If Renter accepts physical damage insurance coverage offered by the Allen Insurance Group, Renter's liability for physical damage to the Vehicle shall be limited to the amount shown as the deductible in this Agreement.
(d) If Renter declines physical damage insurance coverage offered by the Company, Renter or Renters insurer, as applicable, shall be liable for all loss or damage to the Vehicle.
6. Indemnity. RENTER AGREES TO INDEMNIFY AND HOLD HARMLESS THE COMPANY FROM AND AGAINST THE FOLLOWING:
(a) ANY CLAIM OR CAUSE OF ACTION FOR DEATH OR INJURY TO PERSONS, OR LOSS OR DAMAGE TO PROPERTY, ARISING OUT OF OR CAUSED BY RENTER'S POSSESSION, USE, OR MAINTENANCE OF THE VEHICLE, AND ANY SUCH CLAIM OR CAUSE OF ACTION WHICH THE OWNER OF THE VEHICLE MAY BE REQUIRED TO PAY AS A RESULT OF ANY STATUTORY MINIMUM FINANCIAL RESPONSIBILITY OBLIGATIONS.
(b) ANY AND ALL LOSSES, DAMAGES, COSTS AND EXPENSES INCURRED BY THE COMPANY BECAUSE OF INJURY OR DAMAGE SUSTAINED BY ANY OCCUPANT, EITHER AUTHORIZED OR UNAUTHORIZED, OF SAID VEHICLE, INCLUDING WITHOUT LIMITATION RENTER, RENTER'S EMPLOYEES, AGENTS OR REPRESENTATIVES AND LOSS OR DAMAGE TO ANY CARGO OR OTHER PROPERTY IN OR CARRIED BY THE VEHICLE, INCLUDING CONSEQUENTIAL DAMAGES, AND FOR ANY LOSS OR DAMAGE TO ANY OTHER PROPERTY OF RENTER, ITS AGENTS OR EMPLOYEES, LEFT IN OR ON THE VEHICLE AT ANY TIME OR PLACE.
(c) ALL LOSS, DAMAGE, COST AND EXPENSE RESULTING FROM RENTER'S VIOLATION OF THIS AGREEMENT.
(d) RENTER'S INDEMNITY OBLIGATIONS SHALL SURVIVE EXPIRATION OR TERMINATION OF THIS AGREEMENT.
7. Renter's Liability. Renter understands and agrees it shall be liable for:
(a) All loss or damage to the Vehicle occurring during the rental period. In the event the Vehicle is lost or destroyed, the amount owed shall be the greater of the encumbered value of the Vehicle or the actual cash value.
(b) All damage to the Vehicle and related expenses caused by: (1) Renter's breach of this Agreement; (2) Renter's failure to maintain adequate fluids, oil, coolant, DEF, and water levels in the Vehicle; (3) failure to properly and timely perform the regeneration process of the diesel particulate filter; and (4) Renter's neglect of any necessary service, maintenance, or repairs of the Vehicle, subject to first obtaining authorization from the Company or such work.
(c) All loss or damage to the Vehicle if it is used, operated, or driven in violation of this Agreement, or if the loss or damage results from collision with any structure because of insufficient height or width clearance.
(d) The value of all tires, tools, and accessories lost or stolen from the Vehicle.
(e) The fixed portion of the rental charge when the Vehicle is out of service due to an accident or misuse.
(f) All damages resulting from excessive or improper loading of the Vehicle.
(g) All damages resulting from operating the Vehicle off a public road, including wrecker charges to extricate the Vehicle.
(h) All fines or penalties, including forfeiture or seizure, resulting from Renter's use of the Vehicle.
8. Accidents. Renter must immediately notify the Company of any accident, loss of, or damage to the Vehicle and shall promptly deliver to the Company any document received by Customer related to any claim or lawsuit. Renter shall cooperate with the Company and its insurer in the investigation and defense of any claim or suit.
9. Extended Rental. If the rental period is extended, Renter agrees to pay the Company, on demand, the following:
(a) Mileage charges computed at the rates specified in this Agreement until the Vehicle is returned to the Company.
(b) Service and time charges computed at the rates specified in this Agreement until the Vehicle is returned to the Company.
(c) Any other amounts due hereunder.
10. Default. If Renter fails to pay promptly any rental payment or other amounts owing when due and such failure continues to remain uncured for a period of seven (7) days after receiving a Notice to Cure or fails to furnish and pay the charges for insurance provided in Section 4 or if any proceeding or case is instituted by or against Renter under any provisions of the U.S. Bankruptcy Code or any state insolvency law or for the appointment of a receiver, or if Renter makes an assignment for the benefit of creditors or becomes insolvent as that term is defined in the Uniform Commercial Code, or if Customer breaches any material provision of this Agreement, or if in any proceeding in which Renter is involved any execution, writ, or process is obtained where the Vehicle(s) may be taken or confiscated, then Renter shall be in default under this Agreement. In the event of any such default, the Company shall have all remedies provided by law and in equity and, at its sole option, shall have the right at any time to exercise concurrently or separately, any such remedy, including but not limited to termination of this Agreement and repossession of the Vehicle(s), and Renter shall be liable for all costs and expenses incurred by Company in pursuing such remedies, including reasonable attorney's fees.
11. Return of Vehicle. Renter agrees to return the Vehicle to the Company at the location and before the time specified in this Agreement, unless otherwise agreed in writing by the parties. If no time is specified for return of the Vehicle, Renter will return the Vehicle no later than seven (7) days after the Vehicle is rented. Vehicle shall be returned in the same condition as rented, normal wear and tear excepted.
12. Inspection and Repossession. Upon reasonable notice, the Company lawfully may inspect the Vehicle at any time during the rental term. Renter agrees that Company may download diagnostic and ECM data.
13. Subletting. Subletting or re-letting the Vehicle is prohibited and voids this Agreement.
14. FLORIDA. Florida regulations require that Renter acknowledge and agree that the Company may file consolidated fuel tax returns on behalf of its customers which may include the operations of Vehicles rented to Renter under Company’s Rental Agreement which may, from time to time, travel into and through the state of Florida, and that Company will be responsible for the fuel tax on the gallons of fuel consumed over Florida highways by vehicles rented to Renter under Company’s Rental Agreement, and for registering with the Florida Department of Highway Safety and Motor Vehicles, securing Florida fuel tax identification devices/ decals, reporting fuel used, reporting miles traveled, and remitting the total tax accrued to the Florida Department of Highway Safety and Motor Vehicles, subject to the provision of this Section, and that Company may receive fuel use tax refunds as a result of fuel tax overpayments in the State of Florida. Renter further acknowledges and agrees that all trip records, original fuel receipts, and other records or documents relating to the use of the Vehicles become the property of the Company. If the Renter fails to provide all trip records, original fuel receipts, and other records or documents relating to the use of the Vehicle on a regular weekly basis, or at the end of the rental period, whichever comes first, Renter will be held responsible for any fines or cost resulting from Renter's failure to provide the Company with proper trip records, original fuel receipts, and other records or documents relating to the use of the Vehicle.
15. CALIFORNIA. Renter understands that when using a heavy-duty tractor to pull a 53-foot or longer box- type trailer on a highway within California, the heavy-duty tractor must be compliant with sections 95300 95311, Title 17, California Code of Regulations, and that it is the responsibility of Renter to ensure the tractor and trailer are compliant. The regulations may require the tractor and trailer to have low rolling resistance tires that are U.S. Environmental Protection Agency (U.S. EPA) Verified SmartWay Technologies compliant prior to current or future use in California, or may entirely prohibit use of the tractor in California if it is a model year 2011 or later tractor and is not a U.S. EPA Certified SmartWay tractor. Renter is solely responsible for compliance with all laws and regulations if operating within California. Renter acknowledges that vehicles rented outside of the state of California may not be compliant with all California Air Resources Board (CARB) requirements.
16. Miscellaneous Provisions.
(a) Renter agrees the provisions in this Agreement apply to any substitute Vehicle made available to Renter.
(b) No right of the Company under this Agreement may be waived except in writing by an authorized representative of the Company.
(c) If any provision of this Agreement is found to be unenforceable in any jurisdiction, the remainder of the Agreement shall not be affected.
(d) Renter acknowledges that Company is not the manufacturer of the Vehicle and that Company MAKES NO WARRANTY OR REPRESENTATION, EITHER EXPRESS OR IMPLIED, AS TO THE WORKMANSHIP, DESIGN OR CONDITION OF THE VEHICLE, THE MERCHANTABILITY OF THE VEHICLE, OR ITS FITNESS FOR A PARTICULAR PURPOSE.
(e) THE COMPANY SHALL HAVE NO LIABILITY FOR ANY INDIRECT, SPECIAL, OR CONSEQUENTIAL DAMAGES ARISING OUT OF THE RENTAL OF THIS VEHICLE.
(f) This Agreement remains effective until Renter performs all obligations, including but not limited to payment of all amounts due and return of Vehicle to the Company.
(g) Customer agrees that evidence of insurance provided by Renter to Company may be shared by Company with PacLease franchisees.
(h) Renter agrees that his/her electronic signature is the legally binding equivalent to Renter's handwritten signature and that it has the same validity and meaning as Renter's handwritten signature.
Effective April 9, 2018