MOTOR VEHICLE LEASE AGREEMENT

BRANDON ETHANHOUSE
Tel: 0726536763
Website; whitepearltours.co.ke

YEHICLE LEASE AGREEMENT

THIS AC REEMENT is made on the................day of...............................zo............

BETWEEN

WHITE PEARL TOURS AND TRAVEL registered in the Republic of

Kenya of Post Office Box Number 650880 Nairobi {hereinafter referred to as ‘ the
Lessee” which expression shall where the context so admits include the
representatives, successors in title and assigns) of the first part

AND

............................................................... . Of National Identification Number { ID

NO.)............................................................... AND KRA Personal Identification Number
(KRA PIN)...................................................., Post Office Box Number. ...............................,

(hereinafter referred to as “the Lessor" which expression shall where the context so
admits includes the assigns and personal representatives or successors in title) of the
second part
 MOTOR VEHICLE LFASE AGREEMENT

WHEREAS:-

The Lessor is the registered/beneficial owner of the following Motor Vehicle:

AND WHEREAS the Lessor has agreed to let the vehicle and the Lessee has agreed
to hire the vehicle on the terms and conditions set out herein below.

NOW THIS AGREEMENT WITNESSETH AS FOLO :

1. Commencement Date & Duration

1.1 The commencement date of this Agreement is on.............../........................

20.......... And this Agreement shall come into effect on the commencement
set and unless terminated earlier in accordance with clause 3.3 4.6, 6 or 7.1, shall
continue until the expiry of the agreed period herein. Where termination as
stated herein occurs and the agreement is not renewed, the
 MOTOR VEHICLE LFASE AGREEMENT

Lessee shall return the Vehicle to the Lessor together with all the items listed
in Schedule I of this Agreement.

1.2 The Lessee shall hire the said vehicle from the Lessor for an agreed period of
...................................................months (Renewable) effective from the
commencement date and so long as the Lessee is neither in default of
payment of any sum of money payable under this Agreement nor is in breach
of any of the covenants on its part may peaceably hold and enjoy quiet
possession of the vehicle.

1.3 The Lessee shall have the option, at its sole discretion, to renew the hire of the
said vehicle for any further period after the expiry of this Agreement.

2. Lessor’s Obligations

2.1 The Lessor shall provide the Lessee with the documents stated in Schedule I
of this Agreement.

2.2 The Lessor shall ensure that the said vehicle is fully covered with a comprehensive
insurance policy, with a reputable insurance company, throughout the duration
of this Agreement. Further, the Lessor shall inform the said insurance company,
in writing, copied to the Lessee, that the vehicle is being hired by the Lessee for
the agreed period.

2.3 That in the event of renewal of the said insurance policy, during the duration
Of this Agreement, the Lessor must avail the renewal certificate to the Lessee
within three (3) working days prior to the expiry of the existing one.
 MOTOR VEHICLE LFASE AGREEMENT

2.4 The Lessor shall ensure that the said vehicle has all the necessary statutory
licenses and ensure compliance with any statutory changes effected from time
to time.

2.5 The Lessor shall ensure that the vehicle is in sound mechanical condition, shall
pay for the motor vehicle inspection of the said vehicle (if necessary), where
after the workshop authorized by the Lessee shall inspect and approve of the
vehicle before the Lessee takes possession thereto.

2.6 The Lessor shall be liable for any claims from the use of the said vehicle, howsoever
arising, including but not limited to parking fines, towing charges, fines or
expenses, prior to the commencement and during the term of this Agreement.

The Lessor shall install a car tracking system from a reputable company in the
vehicle and shall ensure that the system works perfectly during the duration of
this Agreement.

2.8 The Lessor shall at the time of handing over the vehicle to the Lessee ensure that
the vehicle has all the items listed in Schedule I of this Agreement.

The Lessor shall ensure at the completion of every agreement period the vehicle
shall be inspected and repaired for any major tear and wear .

If the Lessor is desirous of using the motor vehicle, during the term of this
agreement, the Lessor shall be entitled to its use for a maximum period of twenty
(20) days, at the normal market rate, which period once surpassed, the contract
shall be deemed terminated at the instance of the Lessor.
 MOTOR VEHICLE LFASE AGREEMENT

3. Lessee’s Obligations

The Lessee shall ensure that only persons who are properly skilled, trained,
qualified, competent and licensed under the provisions of the Traffic Act, Cap
4O3 Laws of Kenya and all other relevant laws, shall drive the vehicle during
the duration of this Agreement.

The Lessee shall ensure that the vehicle is used in a skillful and proper

3.2 Manner, and for every 5000kms or 10000kms service and routine
maintenance is done,

3.3
Subject to clause 2.9 hereinabove, the Lessee is permitted to drive the Vehicle
for unlimited miles per year.
3.4 In the event that the vehicle has broken down, stalled or is otherwise unable
to be utilized by the Lessee in the ordinary course of business, within 24hr. of
such, the Lessee shall notify the Lessor of the breakdown in order to allow the
vehicle to be collected for repair, of which if the vehicle is not collected and
repaired accordingly, the Lessee shall not be liable to make any payments for the
period within which the vehicle is thus grounded.

Subject and pursuant to clause 3-4 above, the vehicle has broken down, stalled or
is otherwise unable to be utilized by the Lessee due to among others a major
mechanical breakdown, hidden defect or natural wear and tear of the
Vehicle, the Lessor shall be liable for the repair costs of the said vehicle.

3.6 Subject and pursuant to clause 3.4 above, the vehicle has broken down, stalled
or is otherwise unable to be utilized by the Lessee due to unnatural wear and
tear or through reckless use, the Lessee shall endeavor to, within reason,
Pursue the offending client for purposes of repair of the vehicle.

3•7 If the vehicle is impounded due to an infringement of the law or seized

Through exercise of lawful judicial or governmental authority, the Lessee shall
 MOTOR VEHICLE LFASE AGREEMENT

Not be liable for any payments during the period that the vehicle is so
impounded or seized. Further, the Lessee shall not be liable for any fines, fees
or other charges against the vehicle as a result of said judicial or governmental
authority.

3.8 If the period of impoundment or seizure exceeds Thirty (30) days, this Agreement
shall automatically terminate with no further rights or obligations
Amongst parties.

3.9 The Lessee shall be entirely responsible for operational expenses for the vehicle
during the duration of this Agreement. Provided that if the Lessee is unable to
keep the vehicle operating, due to any event, the Lessee shall notify the Lessor
in writing, and if the issue cannot be rectified within one (i) month of the said
notification, this Agreement shall be terminated.

3. 10 The Lessee shall brand the vehicle, which said branding shall be removed by
the Lessor at the completion or upon termination o this Agreement.

4. Accidents/Loss of Motor Vehicle

4.i That in the event that the said vehicle in involved in any accident it will be the
sole responsibility of the Lessee to inform the Lessor of such an eventuality in
order for a report to be made to the insurance company and the police and the
necessary abstract form issued.

4.z That in the event of a major accident, the Lessee will protect the interests of the
Lessor by ensuring that the appropriate procedures for reporting the accident
and involving the police where necessary and get the abstract form issued and
send a copy to the Lessor for onward transmission to the insurer. Further, where
possible, the Lessee will ensure that a statement is taken from the driver of the
vehicle and ensure that the said driver is made available when
 MOTOR VEHICLE LFASE AGREEMENT

needed for further investigation or to testify in a court of law with regard to

such an accident.

In the event of theft or damage to the Vehicle that results in a total loss, the
Lessee shall not be liable for any difference between proceeds of the Lessor's
insurance settlement and value of the vehicle.

That in the event of a minor accident, our company shall follow up with the
client that has caused the accident to pay full repair fees and cooperate with the
vehicle Owner in case of insurance investigations, and if in the assessment of the
said insurers the vehicle is repairable, this Agreement shall stand suspended for
the period the said vehicle is kept off the road as a result of the accident.

If the vehicle is not repaired within five(5) days, the said period it was being
4•5 repaired effective from the date of the accident shall not be computed as part
of any payment due to the Lessor from the Lessee for hire of the vehicle under the
terms of this Agreement.

4.6 That after the said repairs undertaken by the Lessor’s insurers on the said vehicle
are complete, the vehicle will only be accepted by the Lessee after the Lessee's
mechanic has assessed that the vehicle is fit for the Lessee's use and purpose.

4•7 That if the vehicle is not repaired within One (1) month, this Agreement shall
automatically be terminated.

4.8 That in case of a loss of a motor vehicle, lessee shall immediately inform the lessor
of such an eventuality and provide all details as and when required for recovery
efforts.
 MOTOR VEHICLE LFASE AGREEMENT

4.9 That the lessee shall facilitate all recovery efforts and issue lessor with Police
abstract to claim the same from the insurers. The lessor shall follow up with
the insurers to ensure the car is compensated within reasonable time for
continuity of business.

5. Payments

.z The said payments under this Agreement shall be made without any deductions
of taxes or other charges, except insofar as the Lessee is required to deduct the
same to comply with the applicable law in force at the time.

.3 The said payments shall be made by cheque or electronic fund transfer to an

account provided by the Lessor in writing to the Lessee or as shall be otherwise
agreed by the parties on execution of this Agreement.

6. Termination

6.1 Either party may terminate this Agreement at any time by giving the other party
Thirty(3o) days’ notice in writing sent by registered mail or courier to the
address of the relevant party as set out at the head of this Agreement.

6.2 In the event any party terminates this agreement without the Thirty days' notice,
they shall compensate the other party Kshs. Thirty Thousand Shilling Only
(Kshs. 3o, ooo/=) in lieu of notice.

6.3 In the event of the Lessor's insurers assessing the vehicle as a total loss after any
accident, the said Agreement shall be terminated forthwith.
 MOTOR VEHICLE LFASE AGREEMENT

6.4 Upon termination of this Agreement under clause 6.i above, the Lessee shall
return the said vehicle to the Lessor not later than the expiry of the Thirty days
together with all the items listed in Schedule II of this Agreement.

6.5 lf this Agreement is terminated as provided herein and except for any accrued
rights; neither party shall be under any further obligation to the other party.

6.6 If the Lessor takes the vehicle for a period of thirty (3o) days without any
written communication to the Lessee, it shall be presumed that the Lessor has
terminated the contract and shall therefore compensate the Lessee as per
clause 6.i

7• General

7•• Force Majeu re. Neither party shall have any liabilities or be deemed to be in
breach of this Agreement for any delays or failures in the performance of
This Agreement, which results from circumstances beyond the reasonable
control of that party, including, but not limited to; riots, civil disturbances, acts
of lawlessness and abnormal vagaries of weather. The party affected by such
circumstances shall promptly notify the other party in writing when such
circumstances cause a delay or failure in performance and when they cease to
do so.

7•= Amendment. This Agreement may only be amended in writing and signed by
the parties.

7•z Assignment. In the event that the Lessor intends to sell the vehicle, during
the duration of this Agreement, he/she shall inform the Lessee in writing,
including the details of the intended purchaser; provided further that if the
Intended Purchaser intends to continue with the lease agreement, the
 MOTOR VEHICLE LFASE AGREEMENT

Intended Purchaser shall undertake to be bound by and perform the Lessor's

obligations under this Agreement.

7•4 Confidentiality. Each party shall maintain confidentiality of the terms of this
Agreement and of any information obtained directly or indirectly under this
Agreement and not divulge the same to any other person, any such information,
save for the performance of its obligations under this Agreement, unless the
said party is requested to disclose the same by an order of a court of competent
jurisdiction or governmental authority.

7•3 Further Actions. Each party agrees to execute, acknowledge and deliver such
further instruments, and do all further similar acts, as may be necessary or
appropriate to carry out the purpose of this Agreement.

7•6 This Agreement, including its schedules, sets out the entire Agreement between
the Lessee and the Lessor and supersedes all prior oral or written agreements,
arrangements or understandings between them. The parties acknowledge that
they are not relying on any representations, agreement, term or condition
which is not set out in this Agreement.

7•7 Agency. No agent or employee of the Lessee shall have the power to waive any
of the terms or provisions hereof, or to incur additional obligations on behalf
of the Lessee unless such waiver or additional obligations are evidenced by an
agreement in writing signed by a duly authorized officer of the Lessee and by
the Lessor.

Personal Use. lf the Lessor wants to use the vehicle for whatever reason, the
days are subject to deduction during monthly payment. If the vehicle is taken
for more than two(2) days, the Lessor is charged market rate per day, subject
to clause 2.10.
 MOTOR VEHICLE LFASE AGREEMENT

If taken for a period of two weeks consecutively, the Lessor shall not be
entitled to any payment in the said month.

Notice of intention to use the vehicle should be communicated three days

prior, subject to availability of the vehicle.

lf the vehicle is not available, the Lessee can consider an alternative vehicle at
a cost.

7• Severability. If a court holds any provision of this Agreement to be illegal, invalid

or unenforceable, the remaining provisions shall remain in full force and
effect and the parties will amend this Agreement to give effect to the
Stricken clause to the maximum extent possible.

8. Jurisdiction

8.1 Any dispute arising from this Agreement shall be governed by Kenyan Law.

9.0 DISPUTE RESOLUTION

9.1. The parties to this agreement agree to have their dispute resolved at the first
instance through negotiation between themselves. If the negotiations fail, the
dispute shall be referred to a single mediator, appointed by agreement between
the parties, failure thereof, the Chairman Chartered Institute of Arbitrators, who
shall mediate upon the dispute within thirty (3o) days of
Appointment.

.z. If there is no resolution of the dispute before the mediator, the matter shall
then be handled in court, through the normal litigation process.

SCHEDULE I
 MOTOR VEHICLE LFASE AGREEMENT

The Lessor of the said vehicle shall provide the Lessee with the following:

1. Original and Copy of the Log Book as proof of ownership of the said vehicle.

2. Copy of K.R.A Pin Certificate

3• Original (for verification purposes) and Copy of the Lessor's National

Identification Card.

4• Any other necessary document as shall be required by the Lessee for purposes of
this Agreement.

N.B:- The Lessor shall communicate a day in advance if he/she would like to use
the car or check the car condition.

The Lessor may provide bank details if he/she would like the Lessee to deposit
his/her payment through the bank.

LESSOR’S BANII DETAILS

Account Name:

Bank Name:

Bank Branch:

Bank A/C No:

Bank & Branch Code:

Swift Code:

Phone Number:

Email Address:
 MOTOR VEHICLE LEASE AGREEMENT

IN WITNESS WHEREOF the parties herein have executed this Agreement on the
day and date first hereinbefore written.

SIGNED on behalf of White Pearl Tours

In the presence of:

SIGNED by Lessor.....................................................................................................................
] Car Owner's Signature)

In the presence of:

. .. .... .... .. .... . .. ... .... .. .. ............ . ... . ...................................

................................................ ........... .............................................

DIRECTOR |Signature Company Stamp
White Pearl Tours and
Travel.