Rental conditions (Version 2018 04 25 ENG)


RENTAL CONDITIONS

1 / RENTAL OBJECT

a. Extent: Avesco Rent Lithuania (hereinafter - the Lessor) gives the Lessee the equipment for rent as specified in the delivery documents together with instructions for the use across Lithuania and the Lessee undertakes to pay the rent price and uses the equipment under the terms laid out in these Rental conditions. In these rental conditions the Lessee is considered as any customer (whether legal or natural person) of Avesco Rent Lithuania which concludes rent agreements with the Lessor. The individually negotiated contractual agreements and these Rental Conditions apply exclusively to the rent of rental object from the range offered by the Lessor. By concluding the first agreement, the Lessee acknowledges its validity for the entire duration of the business relationship between the parties.

b. Ownership: The rental object remains the exclusive property of the Lessor throughout the rental period. Without written agreement between the parties, the Lessor is prohibited from altering or removing any markings and indications of property rights, or logos attached to the rental object.

c. Use: No changes shall be made to the rental object. The lessor’s instructions on operation and technical maintenance, also instructions on permissibly loading must be strictly observed. The Lessee is not entitled to give any third party rights to the rented object or to assign such rights under the lease; in particular, further lending, assigning or entrusting in any form of trust of the rental object is prohibited.

d. Abroad: The rental object shall not be used abroad without written consent of the Lessor. Should the rental object be used abroad without consent, the Lessee owes the Lessor a fine equivalent to the purchase value of the rental object.

e. Entering into agreement: The Rent Agreements are concluded at the branch office of the Lessor or online via the website www.avesco-rent.lt. By clicking on the button ‘Confirm’, the Lessee makes a binding offer to conclude an agreement. The agreement is only concluded when the Lessor declares acceptance in writing.

2 / RENTAL PERIOD

The rental period is calculated in workdays, weeks or months, it starts on the day of the confirmed handover and ends on the day of the proper return of the rental object. One workday consists of a maximum of 8 motor hours and a single-shift. If not stipulated otherwise, one week consists of 5 workdays and one month consists of 21 workdays. Both the delivery and the return days are counted as full days, if no other option has been stipulated. At the end of the agreed rental period, the rental contract is tacitly extended by the same duration, unless agreed otherwise in writing. The tacit renewal does not take place provided the Lessee announces his cancellation of a rental contract in writing at least one day before the expiry if the rental contract is concluded for less than one week, and at least one week before the expiry of the rental contract if the contract is concluded for more than one week. The written cancellation must be received by the Lessor on the above mentioned day. An oral cancelation must be made to the official contact person of the Lessor. It can also be made by phone.

3 / RENT

a. Basis: The agreed rent applies to the agreed period of use for a single-shift operation of max 8 hours a day. For each additional hour, additional 10% of the daily rental rate dependent on the rental object will be charged.

The rental price refers to the contractual use of the rental property. For use in tunneling, on pontoon or other special works and in any heavy conditions (e.g. in contact with salt water, aggressive or corrosive substances), the written agreement of the Lessor must be obtained first. The special rate charged for this has to be stipulated individually. The rent is also set for the entire rental period even if the normal operating time is not fully utilized, or the rental object is returned before the expiry of the rental period. Transport, assembly, disassembly, packaging and insurance costs as well as the use of accessories, consumables and any cleaning and repair costs are not included in the agreed rent price; these will be charged additionally. Only if explicitly agreed, the Lessor covers the assembly and disassembly of the rental object. In this case, the Lessor provides the Lessee technicians and calculates the expenses for the travel, work and waiting time and maintenance.

b. Terms of payment: For each rental case, a deposit determined by the Lessor according to the value of the rented equipment, is to be deposited as a guarantee. The Lessor may waive this amount if the Lessee is a company registered in the business register and already has a customer account with the Lessor. The rent price is paid upon return of the machine, the payment is made according to agreed conditions. For contracts continuing in the following month, a partial billing takes place at the end of the month.

c. Delay: If the Lessee is late with the payment at due date, Art 9a of these provisions shall apply and the Lessor may reclaim the rental object. The costs incurred have to be borne by the Lessee. As lump-sum compensation, the Lessor additionally charges 20% surcharge along with the rental price. If the payment is late, an interest rate which is one and a half times higher than the legal interest rate will be charged.

4 / BEGINNING OF THE RENT

a. Time: The rent begins at the date of rental commencement as agreed in the rental contract as far as the rental object is actually made available to the Lessor but regardless of whether the Lessee actually takes over the rental object.

b. Risk of transfer: The right to use the rental object and the risks are transferred to the Lessee as soon as the rental object has been handed over to the Lessee or forwarding agent, and lasts until the return of the rental object at the place specified by the Lessor. During this period, the Lessee has sole responsibility for the rental object and all risks that could be directly or indirectly caused by its use, such as fire, theft, explosion, accident, risks of all kinds affecting the Lessor.

The Lessee is liable for any loss and / or damage to the rental object and related costs, regardless of whether it was caused by a fault of a third party, of an accident or force majeure. In the case of equipment rent with driver, the power of disposal and due diligence for the machine as well as the authority of the driver shall be transferred to the Lessee, including all legal consequences and all the work to be carried out by the driver, including transfer to the place of delivery and return journey to the place of handover. The Lessor is not liable for any damage the driver causes in execution of its work under authority of the Lessee.

5 / OBLIGATIONS OF THE LESSOR

a. Liability: The Lessor is obliged to provide the rental object in usable condition and complying with regulation. If a rental object does not work properly, the liability of the Lessor is limited to the fastest possible repair of the rental object. The Lessor does not have to replace the rental object and is not liable for any loss of productivity or income or any erroneous work results that are due to a defect of the rental object. The assertion of claims for direct or indirect damages, such as lost profits, loss of orders or damage to the image is excluded.

b. Instructions: The Lessor provides the necessary explanations and instructions for the use of the rental object. By signing the rental contract, the Lessee confirms that he has received all the necessary instructions. The commissioned user declares that he has the competencies and licence that are necessary for the proper handling of the rental object. He knows all operating and safety regulations for the use of the rented machines.

6 / OBLIGATIONS OF THE LESSEE

a. Review: The Lessee is obliged to check the condition of the rental object upon delivery of the rental object and to note any defect or missing parts in the rental contract or on the delivery note. Any other defect that could not have been observed at the moment of delivery must be reported in writing within one day of delivery.

b. Use of rent object: the Lessee undertakes to use the rented equipment solely in accordance with the direct purpose of it, in accordance with the instructions for use of the rent object, operational technology requirements and not to exceed its usage capacity; in case of malfunction of the equipment, the Lessee has to stop operations and immediately reports it to the Lessor.

c. Authorisations: The Lessee undertakes to ensure that any of the persons who uses the rental object has all relevant authorisations, which have to be presented on demand to the Lessor, as licences or any relevant permits to use the rental object.

7 / MAINTENANCE OF THE RENTAL OBJECT

a. Maintenance and reporting obligation: The Lessee must treat the rental object with due care, use it properly, operate, maintain and comply with the regulations regarding the use of the additional equipment, observing the operating rules and instructions issued by the Lessor or manufacturer. If the rental object is not working properly, the Lessee must notify the Lessor immediately and refrain from further use of the object.

b. Control of the rental object: The Lessee must always be able to specify the exact location of the rental object and to state the remaining period of use. The Lessor is entitled to examine the rented object at any time after prior notice to the Lessee and can carry out those maintenance and service measures that they deem necessary. In case of improper use, the Lessor can interrupt or terminate the tenancy without any compensation for the Lessee.

c. Repairs: The Lessee shall permit repairs necessary to carry out for the Lessor during the rental period. Only with a prior written consent of the Lessor the Lessee shall make repairs himself or have them carried out by a third party, otherwise the Lessee has to bear the costs and responsibility of the repairs. In addition, he is liable for all direct or indirect damages resulting from improper repair work.

d. Costs: The cost of replacement of wearing parts which is required in normal use is included in the rental price, with the exception of wearing parts of drilling, cutting, grinding and concrete milling machines, the chains and teeth of mowers, tree trenchers and trenchers, as well as excessive wear of the tires and rubber tracks. Repairs that are necessary due to acts of malicious damage (breaking), accidental damage, improper operation and maintenance, shall be borne by the Lessee.

8 / INSURANCE

a. Liability for non-registered devices: The Lessee is obliged to insure them at their own initiative and expense against damage that third parties may suffer as a result of the use of the rental object, and to provide the insurance certificate to the Lessor on first request. If the Lessor is prosecuted by a third party for the loss suffered, the Lessee is obliged to indemnify the Lessor for all claims, damages and related costs, and to apply the presumption of innocence respectively.

a1. Motor vehicle third party liability insurance for registered vehicles and trailers: Insurance shall be taken out by the Lessor in accordance with the statutory provisions. A deductible of EUR 1,000 is to be borne by the Lessee. The right of recovery under the recourse procedure due to gross negligence is reserved.

b. The loss of the rental object: The Lessee is obliged to insure the rental object against the consequences arising from theft, fire and water damage, vandalism, explosion, natural damage, transport, machine breakage, collision, assembly and disassembly. The mentioned risks are covered by a machine insurance, which is offered by the Lessor under the conditions listed below. Deviation from this rule is only possible if the Lessee has taken out the appropriate machinery insurance at their own initiative and at their own expense. The proof of insurance and the prior assignment of the claims from this insurance to the Lessor are to be provided by the Lessee on first request.

b1. Machinery insurance: According to the stipulations in the rental contract, the insurance tariff is calculated on the basis of the gross rental income per calendar day. The Lessee is covered on all the risks under 8(b) for the whole rental period provided that the equipment (machinery) is used according to the owner’s instructions (also applicable to registered vehicles). This insurance provides for a deductible according to rental categories and the insurance option chosen. The Basic insurance deductibles are: Cat. B: EUR 500, Cat. E + M + H + P: EUR 5,000, Cat. R: EUR 20,000, plus the VAT. The Comfort insurance option deductibles are: Cat. B: EUR 200, Cat. E + M + H + P: EUR 1,000, Cat. R: EUR 2,000, plus the VAT. Theft and vandalism are insured on the condition that the Lessee can prove that they have taken all precautionary measures, e.g. removed the contact key, activated the theft protection to have the rental object chained or enclosed. In the event of theft or vandalism, the Lessee is obliged to immediately complete all formalities in connection with the event (immediate notification to the police, as well as notification of damage). The Lessee can be held liable for any failure to comply with these formalities. Not covered by the insurance are damages resulting from obvious negligence, glass damage (e.g. windscreen, doors, lights, etc.), punctures (slabs, cut-up tires), damage to the rubber crawler, and the need of mechanic for engine repairs due to missing or incorrectly filled consumables (engine oil, cooling liquid, greases, brake fluid etc.). Full list of categories may be found here www.avesco-rent.lt.

9 / TERMINATION OF THE RENT

a. Termination: The Lessor can terminate the rental contract with immediate effect without the judicial procedure if the rental property is at risk, improperly used and / or poorly maintained, the Lessee defaults in payment or breaches other clauses of these Rental conditions. In this case, the Lessor can retrieve the rental object at the expense of the Lessee, subject to any other claims for damages.

b. Return of the rental object: The Lessee has to return the rental object in a usable condition, clean and full, to the rental station where they accepted the object. With the written consent of the Lessor and possible participation of the Lessee in the additional transport costs, the return can be made at another rental station. If the rental object on return does not meet the above requirements, or it has other deficiencies, which make impossible to rent it to others, the Lessor may perform the repair of the machine at the expense of the Lessee. The time used for the recovery of the returned machine will also be charged to the Lessee in the form of a bill for corresponding extension for the rental period.

10 / APPLICABLE LAW

These Rental conditions are subject to Lithuanian law.

11 / JURISDICTION

The place of performance for all obligations arising from this contract is the registered office of the Lessor. Jurisdiction for the assessment of disputes arising from this contract is the location of the Lessor.


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