LEASE AGREEMENT - yellowexpresslogistics.com Lease Agreement.pdf · the down payment scheme and the...

DETAILS OF LEASE AGREEMENT

There will be a lease agreement with thirty five points between the investor of the vehicle who is also called as the registered owner of the vehicle and Yellow Express Logistics Ltd. This agreement will make the investor free from all the liability of having any responsibilities out of any accidents or incidents which arise out of the vehicle during the lease period of four years.

It clearly states that the vehicle is given to the company from the show room itself by the investor before running on the road. This agreement will make sure that the legal team of Yellow Express will handle all the incidents which arise out of the vehicle without the involvement of the customer in whatever situations during the entire lease period of four years.

All the details of the vehicle and payments made by the investor will be mentioned in the lease agreement. There will be two lease agreements given to the customer where the first one will be given soon after booking the vehicle under the down payment scheme and the next lease agreement after the vehicle is delivered with all the details of the vehicle like engine number, chassis number, registration number, insurance certificate and so on. The lease agreement will be given in a stamp paper which is notarised but the same can also be registered at the expense of both the parties which is at the discretion of the investor.

Moreover the investor is eligible to get a shareholder lease agreement if he has made a minimum of five combo bookings in his own name and that too within a period of one month. To get more knowledge of the same there will be lease agreements in English and regional languages also.

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LEASEAGREEMENT

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LEASE AGREEMENT

NAME OF REGISTERED OWNER : ____________________________________________________________

ADDRESS IN AADHAAR : __________________________________________________________________

____________________________________________________________PIN CODE :__________________

ADDRESS FOR COMMUNICATION : ___________________________________________________________

_______________________________________________________PIN CODE :_______________________

MALE / FEMALE : ___________________ TYPE OF CUSTOMER : ___________________________________

TYPE OF COMBO CUSTOMER :______________________________________________________________

REFERAL COMBO CUSTOMER NAME & ADDRESS :______________________________________________

_______________________________________________________________________________________

REFUNDABLE SECURITY DEPOSIT SCHEME / DEALER SCHEME : ___________________________________

AADHAAR NUMBER : ____________________________ PAN NUMBER : ____________________________

MOBILE NUMBER 1 : __________________________ MOBILE NUMBER 2 : __________________________

WHATSAPP NUMBER :_____________________________ EMAIL ID : ______________________________

PERSONAL ACCOUNT NUMBER : ________________________________ IFSC CODE : _________________

BANK NAME :____________________________________ TYPE OF ACCOUNT : _______________________

DATE AND AMOUNT OF FIRST MONTHLY PAYMENT :___________________________________________

AMOUNT PAID : _________________________ MODE OF PAYMENT : ______________________________

OTHER PAYMENT DETAILS_________________________________________________________________

EX SHOW ROOM PRICE :___________________________ON ROAD PRICE :__________________________

TAX DEDUCTIONS :________________________ SEDAN / HATCHBACK :____________________________

VEHICLE LOAN PERIOD : _________________________ LEASE PERIOD : ____________________________

VEHICLE CUSTOMIZATION DETAILS :_________________________________________________________

_______________________________________________________________________________________

FIRST YEAR INSURANCE AMOUNT :____________________YEARLY ROAD TAX :______________________

INSURANCE COMPANY :_____________________________CASH LESS FACILITY :____________________

LEASE STARTING DATE : ________________________ LEASE ENDING DATE : ________________________

TEAM LEADER :_________________________________________________ CODE NO :____________________

TEAM MANAGER :______________________________________________ CODE NO :___________________

DIGITAL EXECUTIVE : _________________________________________ CODE NO :___________________

BUSINESS PROMOTER :____________________________________________ CODE NO :___________________

BUISNESS DEVELOPMENT OFFICER : _____________________________ CODE NO: ______________________

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TOTAL NUMBER OF VEHICLES BOOKED NOW - COMBO :___________________ SINGLE :______________

TOTAL NUMBER OF VEHICLES BOOKED TILL DATE - COMBO :_______________ SINGLE :______________

VEHICLE LOAN ARRANGED BY FIRST PARTY/SECOND PARTY : ____________________________________

NAME OF THE FINANCE COMPANY/ BANK :___________________________________________________

GUARANTOR FOR THE VEHICLE LOAN :_______________________________________________________

NAME OF NOMINEE : ________________________ RELATIONSHIP OF NOMINEE : ___________________

ADDRESS OF NOMINEE : __________________________________________________________________

NUMBER OF REFERNCES OR PURCHASE MADE FOR FREE INSURANCE TILL DATE : ___________________

DETAILS OF REFERENCES IF ANY :___________________________________________________________

YEARLY REFERENCES NEEDED FOR FREE INSURANCE - COMBO :_______________SINGLE :____________

ONE TIME MAINTENANCE COST - :________________ PROCESSING FEES OF LOAN :_________________

DETAILS OF THE VEHICLE TO BE LEASED

TO BE FILLED AFTER T HE VEHICLE IS DELIVERED

REGISTRATION NUMBER: _____________________DATE OF REGISTRATION :________________________

ENGINE NUMBER: __________________________ CHASSIS NUMBER:______________________________

NAME & ADDRESS OF RTO OFFICE: _________________________________________________________

VEHICLE FINANCED BY: _______________________________________ COLOUR: ___________________

MONTHLY EMI : ___________________________ LOAN PERIOD: _________________________________

LOAN AMOUNT: ______________________________DATE OF FIRST EMI :__________________________

LOAN ACCOUNT NUMBER: _______________________________________ IFSC CODE: _______________

BANK NAME:________________________________________ TYPE OF ACCOUNT: ___________________

DATE OF VEHICLE DELIVERY :__________________ PLACE OF VEHICLE DELIVERY :___________________

ADDRESS OF VEHICLE DELIVERY : ___________________________________________________________

POSSESSION CERTIFICATE GIVEN TO FIRST PARTY:______________________DATE :__________________

REGISTERED LEASE AGREEMENT:______________NOTARISED LEASE AGREEMENT:___________________

VEHICLE ATTACHED TO OLA / UBER /DEMO __________________________________________________

AMOUNT CREDITED DATE _____________________ BANK ______________________________________

BRANCH____________________________ SIGNATURE OF FINANCE HEAD _________________________

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TERMS AND CONDITIONS

FIRST PARTY - YELLOW EXPRESS LOGISTICS LTD Corporate Office - # 6162, Yellow Avenue, Nelamangala, Bangalore - 562123

SECOND PARTY - REGISTERED OWNER

1. The first party is engaged in the business of taking vehicles for lease from the second party who is the registered owner of the vehicle and attaching the same to the major Online cab operators in India .

2. The second party has to purchase a new Yellow Express Special Edition Volkswagen sedan car and must be willing for leasing the same to the first party for a period of 4 years.

3. The second party has to purchase the particular vehicle only, by paying a interest free refundable security deposit of Rs. 2 50 000 /- which will be the refunded to the second party after the lease period where the first party will be liable to arrange loan for the vehicle upto a maximum loan amount of Rs. 6 49 000 /- by being a guarantor of this loan and also meet the total maintenance cost of the vehicle for the entire lease period of four years.

4. The first party is liable to be a guarantor of the loans for the vehicle to be leased if the refundable security deposit is paid by the second party only and if the second party is not paying the refundable security deposit then the latter has to arrange loan by himself and the balance amount of the on road price of the vehicle after the loan amount has to be paid to the dealer before the vehicle is delivered.

5. The second party will be eligible to get a lease rent of Rs. 10 000 /- every month payable to the personal account of the second party from the 30th day of making the refundable security deposit and an amount up to Rs. 17 000 /- to the loan account of the second party on the EMI date after vehicle loan is released.

6. The second party can become a Combo customer by purchasing 2 vehicles at a time by himself or by any person together who is recommended by the second party where he will be eligible to get an extra amount of Rs. 50 000 /- for each vehicle at the end of lease period, apart from the refundable security deposit.

YELLOW EXPRESS LOGISTICS LTD

7. The ownership of the vehicle will be vested with the second party for the entire lease period but the latter has to automatically transfer the ownership of the leased vehicle to the first party after the lease period of four years on the successful completion of monthly payments and the total EMI amount of the leased vehicle which is paid by the first party.

8. The second party can also purchase the particular vehicle without any refundable security deposit by paying a booking amount of Rs. 10 000 /- to the vehicle dealer and the latter will be providing Proforma invoice showing the price details of the vehicle and in this case the second party will be liable to arrange loan by himself.

9. If the second party arranges loan by himself and purchases the vehicle, then the loan amount and the balance amount of the on road price of the vehicle after loan has to be paid to the dealer before the vehicle is delivered and the total lease rent amount of Rs. 27 000 /- will be paid to the personal account of the second party but the lease agreement stands cancelled if the second party fails to pay the vehicle EMI continuously for a period of 3 months.

10. The second party will not be liable to make any further payments for the vehicle, other than the refundable deposit amount where he will be free from the four year periodical service expenses with entire maintenance cost , shortage of balance in loan amount and also the processing fees for loans arranged by the first party.

11. When the loan is arranged by the first party, the percentage of loan sanctioned may vary according to the profile of the second party and any shortage which arises out of the amount of loan sanctioned, will not affect the second party in terms of making any further payments.

12. The second party can also arrange loan for his vehicle by himself from any financial institution of his choice even though he has paid the refundable deposit and in this case the processing fees for loan will be given to the concerned bank by the first party and the total monthly lease rent of Rs. 27 000 /- for the entire lease period will be given to the personal account of the second party.

13. The second party can become the shareholder of the company with a minimum of 5 combo bookings in his own name and not by any reference bookings together which should be made within 30 days of the first booking, where the shareholder will be enjoying all the benefits of a combo customer and also getting redeemable preference shares for the value of amount to be received after the leased period of four years.

www.yellowexpresslogistics.com [email protected]

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14. The on road price of the sedan vehicle will be Rs. 8 99 000 /- including road tax, insurance, registration expenses, taxi permit, speed governor expenses with other extra online customized features made by the first party which includes GPS system, live camera, head rest monitors, special colour to identify the vehicles easily, swiping machine, special music system, reverse camera and extra seat covers.

15 The second party will not be eligible for normal customer discounts and schemes for purchasing the vehicle because the first party is liable to spend processing fees for loans, deficiency in the amount of loan sanctioned if any, entire maintenance cost for the complete lease period along with other extra online customized features as mentioned in clause 14.

16. The first party will be appointing drivers at its own discretion and meeting all expenses like fuel, maintenance, accidental repairs, periodical services, testing, driver responsibility, tyres, battery, periodical oil changes, EMI of the vehicle loan and any other expenses for the entire lease period of 4 years.

17. The legal department of the first party will handle all the hurdles arising out of any accidents and unexpected incidents during the entire course of lease period and the first party will accept the total responsibility of the same including any penalties charged by the concerned government authorities in different situations during the lease period.

18. In the case of accidents, it is the responsibility of the first party to repair the vehicle to the fair condition by using insurance amount and if the insurance amount is not sufficient to meet the expenses, then the first party will be responsible to spend the extra amount needed for repairs.

19. In any circumstances the second party will not be made responsible for any of the activities of the first party in association with the particular leased vehicle and all expenses in any situations which comes more than the amount received from the insurance company or otherwise, will be paid by the first party only.

20. In the case of partial loss due to accidents the amount will be recovered from the bumper to bumper insurance and the balance amount if any needed will be spend by the first party to maintain the vehicle in fair condition and it will not in any way affect the monthly payments to the second party.

21. The second party has to give consent to the first party by giving a power of attorney for handling and clearing all the legal formalities from the concerned government authorities in the case of accidents and other unexpected incidents during the course of lease period.


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22. In case of theft or total loss , the lease agreement will be automatically cancelled by recovering the amount of vehicle from the insurance company for closing the vehicle loan and the balance insurance amount if any will be paid to the second party.

23. In case of theft or total loss, a new vehicle with 75% loan will be replaced without any down payment from the second party if proper documents needed for loan is submitted and a new lease agreement will be done at the time of delivery of the new vehicle.

24. The Yellow Express special edition diesel sedan car will only be displayed with any one of the dealer showrooms in a particular state and the delay in delivery of the vehicle after booking will depend on the time taken for sanctioning the loan by the finance company and the first party will be liable to continue the monthly payments, irrespective of the delay in delivery of vehicle or otherwise.

25. The first party has the discretion to take diesel or petrol variant of vehicle by converting into CNG gas in anticipation of the future government policies regarding pollution or other similar arrangements and also the second party cannot demand any names to be pasted on the leased vehicle.

26. There will be a tax deduction for all the monthly payments received by the second party from the first party at applicable government rates.

27. The first party will be responsible for paying the road tax from the second year onwards along with all taxi registration formalities of the vehicle during the entire period of lease and the first party can use the vehicle for taxi operations, displays, demonstrations and so on.

28. The monthly payment given by the first party will not be further extended after the lease period because of any delay which arises out of the delivery of vehicle where the latter will be liable to close the finance of the vehicle within the lease period of 48 months and in such cases the loan period will be reduced according to the number of monthly payments received by the second party, before the vehicle was delivered.

29. If the second party receives the monthly payments according to the terms of this agreement promptly then the lease agreement cannot be cancelled by both the parties and demand the refundable security deposit before the vehicle is delivered and also the latter can inspect the vehicle at the place where it is stationed subject to prior appointments before a day.

30. After signing the lease agreement the second party has to give possession of the vehicle to the first party before the delivery of vehicle in the showroom by signing a possession certificate and all throughout the lease period the vehicle will be under the complete possession of the first party only.


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31. The refundable security deposit will not be refunded if the second party does not transfer the ownership of the leased vehicle to the first party after the lease period is over or if the second party takes forceful possession of the vehicle without the consent of the first party before the end of lease period where the first party is the guarantor of the loan for the leased vehicle.

32. The original tax and insurance papers along with the spare key will be given to the first party but the original registration certificate or smart card will be given to the second party on his written request by mail and has to be submitted whenever required in emergency situations and also at the end of lease period, failing which an amount of Rs. 50 000 /- will be deducted from the total refundable security deposit amount received by the second party after the lease period.

33. Bumper to Bumper full cover comprehensive insurance amount of the leased vehicle has to be paid by the second party only, all throughout the deemed period of lease, which will be deducted by the first party from the payments of the last two months in a year, for paying the insurance renewal amount for the coming year without affecting the monthly EMI of the vehicle.

34. If the second party has introduced another 2 vehicles within a year, then the latter will be free from paying the insurance for the second year and the same has to be repeated by for the next two years to avail the free insurance but a Combo Customer has to introduce only one person every year for getting the free insurance of one vehicle in that particular year.

35. If the second party wants to cancel the lease agreement before the end of lease period and after the vehicle is delivered, then a notice period of 30 days has to be served to the first party for releasing the vehicle without any further payments because the refundable security deposit will be forfeited and also if the first party has arranged loan for the vehicle by standing as a guarantor for loans then an NOC from the finance company also has to be submitted to the first party.

Any disputes arising out of this agreement will be settled in Bangalore courts only.

I................................................................................ being the second party to this agreement has fully read the terms & conditions and hereby agree to sign upon my free will and confidence after understanding all the points mentioned in this lease agreement.


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L E A S E A G R E E M E N T

S H A R E H O L D E R

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DETAILS OF REGISTERED OWNER WHO IS THE SHARE HOLDER

NAME OF REGISTERED OWNER ________________________________________________ CUSTOMER NO ___________

ADDRESS IN AADHAAR: __________________________________________________________________________________

______________________________________________________________________PIN CODE__________________________

ADDRESS FOR COMMUNICATION: ________________________________________________________________________

______________________________________________________________________PIN CODE__________________________

MALE / FEMALE : ________________________ TYPE OF CUSTOMER : __________________________________________

PERSONAL ACCOUNT NUMBER: _________________________________________ IFSC CODE: _____________________

BANK NAME:__________________________________________________ TYPE OF ACCOUNT: _______________________

AADHAAR NUMBER: _____________________________________ PAN NUMBER: _______________________________________________

DATE OF BECOMING SHARE HOLDER: ________________________________ LEASE PERIOD: ____________________

SHARE CERTIFICATE NO : _____________________________REGISTER FOLIO NUMBER : _________________________

NO OF SHARES ISSUED : ____________________ REDEEMABLE SHARE VALUE : _________________________________

FACE VALUE OF SHARE : __________________ DISTINCTIVE NO OF SHARES : _________________________________

MOBILE NUMBER 1 : ________________________________ MOBILE NUMBER 2 : ________________________________

WHATSAPP NUMBER: : ________________________________ EMAIL ID: ________________________________________

AMOUNT PAID: _____________________________________ MODE OF PAYMENT: _________________________________

PAYMENT DETAILS : ________________________________________________________________________________________

___________________________________________________ DATE OF FIRST MONTHLY PAYMENT :_______________________

LEASE STARTING DATE: ___________________________ LEASE ENDING DATE: _________________________________

SHAREHOLDER LEASE AGREEMENT



DETAILS OF THE VEHICLE TO BE LEASED

THIS SECTION IS TO BE FILLED AFTER VEHICLE IS DELIVERED



DIGITAL EXECUTIVE NAME : _____________________________________CODE NUMBER: _________________________

TEAM LEADER NAME : ___________________________________________CODE NUMBER: _________________________

TOTAL NUMBER OF VEHICLES BOOKED TILL DATE : COMBO __________________ SINGLE _____________________

VEHICLE LOAN ARRANGED BY FIRST PARTY/SECOND PARTY/DE: __________________________________________

NAME OF NOMINEE: ________________________________ RELATIONSHIP of NOMINEE : ________________________

ADDRESS OF NOMINEE : _________________________________________________________________________________

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DATE OF REGISTRATION : _____________________ REGISTRATION NUMBER: _________________________________

ENGINE NUMBER: _________________________________________ CHASSIS NUMBER: ___________________________

NAME & ADDRESS OF RTO OFFICE: _______________________________________________________________________

VEHICLE FINANCED BY: _______________________________________ COLOUR: _________________________________

MONTHLY EMI : _______________________________ LOAN PERIOD: ____________________________________________

LOAN AMOUNT: _____________________________________DATE OF FIRST EMI :_________________________________

LOAN ACCOUNT NUMBER: ______________________________________________ IFSC CODE: ______________________

BANK NAME:__________________________________________________ TYPE OF ACCOUNT: _______________________

DATE OF VEHICLE DELIVERY :_____________________ PLACE OF VEHICLE DELIVERY :__________________________

ADDRESS OF VEHICLE DELIVERY : _________________________________________________________________________

AMOUNT CREDITED DATE ___________________________ BANK ______________________________________________

BRANCH________________________________________SIGNATURE OF FINANCE HEAD __________________________

by Founders;

AND Yellow Express Logistics Limited, a public limited company incorporated under the Companies Act 2013, having corporate identification number as U60200KA2018PLC117894 and having its registered office at # 6, 1/1, 1st, 2nd & 3rd Floors, 11th Main Road, 1st Stage, Gokula, Yeshwantpur, Bangalore - 560 054 and Corporate Office at # 6162, Yellow Avenue, Jakkasandra Road, Nelamangala, Bangalore, Bangalore Rural, Karnataka - 562123 ( hereinafter referred to as “the LESSEE” ) which expression shall, unless repugnant to the context or meaning thereof, be deemed to mean and include its successors and permitted assigns of the First Part, represented herein

Shareholder/ Registered Owner

hereinafter referred to as “LESSOR” which expression shall unless it be repugnant to the context or meaning thereof, be deemed to mean and include his successors, heirs and permitted assigns of the Second Part

WHERE AS:

• The Lessee is engaged in the business of taking vehicles for lease from the Lessor who is the registered owner of the vehicle and attaching the same to the major Online cab operators in India along with fleet operations as specified in the object clause under the Memorandum of Association of the Lessee which will be at the sole discretion of the Lessee only.

• The Lessor shall become the Shareholder of Lessee, in accordance with the terms and conditions set forth in this Agreement and shall subscribe to such Preference Shares of the Lessee so that immediately thereafter the preference capital is held in the manner and quantity and subject to such rights and restrictions, powers and obligations as provided for hereunder.

• The Lessor shall provide the vehicle registered in his name to the Lessee in accordance with the lease terms and conditions set forth in this agreement and Lessee shall use it for carrying its operations as specified in the object of clause under its Memorandum of Association.

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between

Yellow Express Logistics Ltd &

Name of Vehicle owner/customer/shareholder

• The Parties are now desirous of entering into this Agreement, which shall be the sole agreement governing the rights, privileges, duties and obligations of the Shareholders (as defined below) and relating to the management and operations of the Company including lease arrangement between the Lessee and Lessor.

NOW THEREFORE, in consideration of the above recitals, the mutual covenants of the Parties and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

Clause 1: Definition and Interpretation

In this Agreement, unless the context thereof otherwise requires:

1.1. “Lease” shall be a finance lease unless otherwise expressed elsewhere in this agreement.

1.2. “Lease Period” shall be four years unless otherwise specified elsewhere in this agreement.

1.3. “Motor Vehicle” shall be new sedan Yellow Express Special Edition Volkswagen Car.

1.4. “Vehicle Owner or the Customer” shall be the persons in whose name the title to the vehicles are registered and shall be the Lessor to this agreement.

1.5. “Lessor” shall be the vehicle owner or share holder defined in this clause unless otherwise specified elsewhere in this agreement.

1.6. “Lessee” shall be the Company (Yellow Express Logistics Ltd) to this agreement.

1.7. “Shareholder” means the registered vehicle owner or Lessor who are subscribed to the different class of preference shares issued by the Lessee.

1.8. “Preference Shares” means such class or classes of preference shares issued by the Lessee from time to time.

1.9. “Board of Directors or Board” means the board of directors of the Lessee.

1.10. “Combo customer or Privileged Shareholder” shall have the meaning assigned to it in under Clause 3.13

1.11. “Associate Entities” means Login India IT Solutions and Yellow Finance and Earning Pvt Ltd.

1.12. The expressions “hereof”, “herein” and similar expressions shall be construed as references to this Agreement as a whole and not limited to the particular clause or provision in which the relevant expression appears.

1.13. Reference to any legislation or Law or to any provision thereof shall include references to any such Law as it may, after the date hereof, from time to time, be amended, supplemented or re-enacted and any reference to a statutory provision shall include any subordinate legislation made from time to time under that provision.

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1.14. Time is of essence in the performance of the Parties' respective obligations and if any time period specified herein is extended by mutual agreement between the Parties, such extended time shall also be of essence.

1.15. In addition to the definitions in Clause 1 above, certain other terms are defined elsewhere in this Agreement and wherever such terms are used in this Agreement they shall have the respective meanings assigned to them, unless the context otherwise requires.

Clause 2: Finance Lease

2.1. Whereas the Lessor is the owner of a motor vehicle and willing to give the same for lease to the Lessee.

2.2. The lease period shall be for a period of four years.

2.3. The motor vehicle is hereby leased at a monthly lease rent of Rs. 27 000/- subject to clause 2.8

2.4. Although the lease rent will be Rs.27 000/- every month, if the Lessee arranges loan by themselves then the monthly lease rent will be divided as Rs. 17 000 /- to the loan account of the Lessor and the balance amount of Rs. 10 000/- to the personal account of the Lessor.

2.5. If the Lessor arranges loan by himself then the Lessee will be paying the whole monthly lease rent amount of Rs. 27 000/- to the personal account of the Lessor.

2.6. It is not mandatory on the part of the Lessee to arrange loan by himself eventhough the Lessor is a share holder whereby the Lessor will be free to arrange loan from any financial institution of his choice and in such cases the processing fees of loan if any will be paid to the Lessor and there will not be any further payments or refunds from the part of Lessee.

2.7. In cases where the Lessor being a shareholder arranges loan by himself then the Lessee will be paying an amount upto Rs.17 000/- as EMI and the loan period should be four years with not less than 80% loan of the on road price.

2.8. The Lessee hereby agrees that the advance lease rent of Rs.10 000 /- will be paid to the Lessor on the 30th day of becoming a share holder and the balance lease rent amount of Rs.17000 / - will be paid by the Lessee on the 30th day of vehicle delivery or EMI date which ever is earlier.

2.9. All operational expenses of motor vehicle including driver salary, fuel and repairs of the vehicle shall be incurred by the Lessee and Lessor shall have no liability towards the same.

2.10. The Lessor hereby agrees to grant the Lessee exclusive use and possession of the motor vehicle during the lease period, same as is provided for by this agreement.

2.11. The Lessor hereby agrees to grant the Lessee quiet possession of the Motor Vehicle.

2.12. The Lessor hereby agrees to provide the Lessee with all the documents relating to the ownership of vehicle like the original tax receipt, insurance papers along with the spare key except the smart card or registration certificate of vehicle which will be given to the Lessor on demand in writing.

2.13. It is the duty of the Lessor to produce the original documents given like the registration certificate before any authorities or to the Lessee at the time of any emergencies and also at the end of lease period failing which a fine of Rs.5000 will be imposed on the Lessor for each particular incident.

2.14. The Lessee hereby agrees to ensure that the motor vehicle is used in a skilful and proper manner which will be driven by a person who possess a valid driving license only.

2.15. The Lessor hereby agrees that at the expiry of the lease period, no renewal shall be made to the lease under any circumstances and the ownership of the vehicle shall be transferred to the Lessee by the Lessor where no rights or lien shall vest on the Lessor thereafter on the motor vehicle.

2.16. All the expenses incidental to the transfer of the ownership at the end of the lease period shall be incurred by the Lessee and it is the duty of the Lessor to provide all the required assistance, details and documents required for the transfer of ownership.

2.17. The Lessee will be appointing drivers at its own discretion and meeting all expenses like fuel, maintenance, accidental repairs, periodical services, testing, driver responsibility, tyres, battery, periodical oil changes, EMI of the vehicle loan and any other repairs, during the lease period.

2.18. The Lessee hereby agrees to handle all the disputes arising out of the unexpected accidents and incidents during the entire course of the lease period and will accept the total responsibility of the same including any penalties charged by the concerned government authorities under any circumstances during the lease period.

2.19. The Lessee hereby agrees that in any circumstances the Lessor will not be made responsible for any of the activities of the Lessee in relation with the motor vehicle and all expenses which exceeds the amount received from the insurance company or otherwise, will be incurred by the Lessee only.

2.20. In the case of accidents, it is the obligation of the Lessee to repair the vehicle to the fair condition by using insurance amount and if the insurance amount is not sufficient to meet the cost of repairs, the Lessee has to incur the excess amount needed for repairs.

2.21. In the case of partial loss due to accidents the amount of loss will be recovered from the bumper to bumper insurance entered for the motor vehicle and the balance amount if any needed will be incurred by the Lessee to maintain the vehicle in top condition and it will not in any way affect the monthly lease payments made to the Lessor.

2.22. In the event of theft or total loss to the motor vehicle during the lease period, the lease will be automatically cancelled by closing loan of the vehicle with the funds received from the insurance company and the balance insurance amount if any will be paid to the Lessor.

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2.23. In the event of theft or total loss of motor vehicle, a new vehicle with 80% loan will be replaced without any payment from the Lessor except insurance amount, if proper documents needed for the loan is submitted by the Lessor and a new lease agreement will be made at the time of delivery of the new vehicle within 15 days after the new loan is sanctioned.

2.24. The Lessee hereby agrees that they will be responsible for the remittance of the road tax from the second year of lease period and completion of all taxi registration formalities of the motor vehicle during the entire lease period.

2.25. The Lessor hereby agrees that the Lessee has the right to register the motor vehicles as yellow or whiteboard in the case of vehicles used for demonstrations and all the cost incidental to it will be incurred by the Lessee and later the registration can be converted into yellow board when the vehicles are ready for Online cab operations.

2.26. The Lessor hereby agrees that after signing the lease agreement the Lessor has to give possession of the motor vehicle to the Lessee before the delivery of vehicle in the showroom and all throughout the lease period the vehicle will be under the complete possession of the Lessee only.

2.27. The Lessor hereby agrees to bear the annual Bumper to Bumper full cover comprehensive insurance amount of the motor vehicle during the lease period and the Lessee will deduct the insurance amount from the lease payments of the last two months in a financial year without affecting the monthly EMI of the motor vehicle taken on finance.

2.28. If the Lessor has purchased or introduced another two vehicles within a year, the Lessor will be free from paying the insurance for the second year and the same has to be repeated by the Lessor for the next two years to avail the benefit of free insurance.

2.29. A Combo Customer or Lessor as specified in Clause 3.13, has to introduce only one person every year for getting the benefit of free insurance for that particular year but in the case of single customer or Lessor the latter has to introduce two vehicles every year to avail free insurance.

2.30. The Lessor being a shareholder hereby agrees that this lease agreement will not be cancelled for the lease period of 4 years and also during the advance lease rent period before the vehicle is delivered.

2.31. The Lessor hereby agrees to pay an amount of Rs. 3 lakhs, In the event of taking forceful possession of the vehicle by the Lessor without the permission of Lessee in any situations during the lease period.

2.32. The Lessor hereby agrees that he shall not demand any names or stickers to be pasted in any part of the motor vehicle and he can make inspection of the motor vehicle at the place where it is stationed subject to prior appointment made at least before a day.

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Clause 3: Purchase and Delivery of Vehicle

3.1. The Lessor has to purchase a new sedan Yellow Express Special Edition volkswagen car.

3.2. The Lessee has the discretion to take diesel or petrol variant of vehicle by converting into CNG gas in anticipation of the future government policies regarding pollution or other similar arrangements.

3.3. Any customer can purchase the motor vehicle by paying an amount of Rs.10,000/- as booking cost to the Nissan dealer and the dealer will issue a Proforma invoice detailing the price of the vehicle and receipt for the booking payment for the purpose of arranging finance for the motor vehicle and in this case the customer will not become a party to this shareholder agreement.

3.4. If the Customer has booked the vehicle with the dealer and arranged the loan by himself, then the latter has to meet the service charge expenses for the entire lease period in addition to the purchase price of the motor vehicle and also in this case the customer will not become a party to this shareholder agreement.

3.5. Clause 3.4 above shall not be applicable to a down payment customer who is a shareholder of the Lessee.

3.6. The Yellow Express special edition Volkswagen car will only be displayed with any one of the Volkswagen dealer in a particular state at the discretion of the vehicle manufacturer i.e. Volkswagen.

3.7. Any delay in delivery of the vehicle after booking will depend on the time taken for the processing of loans and further availability of stock with the vehicle manufacturer at the time of sanctioning loans but this delay in delivery of the vehicle will not in anyway affect the advance lease rent payments made by the Lessee.

3.8. The shareholder lease agreement cannot be cancelled during the lease period by both the parties to this agreement..

3.9. There will be a tax deduction at source for all the payments made to the Lessor at applicable government rates with 2% TDS deductions and the Lessee hereby agrees to give a TDS certificate for the entire amount deducted from the payments to the Lessor.

3.10. The monthly lease payments given by the Lessee will not be further extended after the lease period of 48 months due to any delay which arises out of the delivery of vehicle and the lessee will be responsible to close the finance of the vehicle within the lease period of 4 years.

3.11. The Lessee will start paying Rs. 10 000/ - as advance lease rent even before the vehicle is delivered to the Lessor from the 30th day of becoming a shareholder as a mode of restricting the Lessor to further enter into any other lease contracts of similar nature or operations when the vehicle is delivered.

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3.12. The Lessee shall be liable to close the finance of the vehicle within the lease period of 48 months without any further extensions even though there is delay in delivering the vehicles by the Lessee for any reasons.

3.13. The Lessor can become a Combo Customer by purchasing two vehicles at a time for himself or for any person recommended by the Lessor together and such customer who is being a shareholder under this agreement will be known as a privileged shareholder.

3.14. The Lessee shall arrange finance of the motor vehicle for the shareholders of the company only from any financial institutions in India if proper documents required for the purpose of loan has been submitted by the Lessor who becomes a shareholder under this agreement and also the lessor will not be responsible to make any further payments for the motor vehicle except the loan amount arranged by the Lessee.

3.15. In the event of finance arranged by the Lessee, the customer being the Lessor hereby agrees that the monthly lease payments shall be Rs. 10,000/- during the term of loan after deducting the equal monthly payments to be made to the provider of finance.

3.16. In the event of finance arranged by the Lessor, the Lessee hereby agrees that they shall not make any default in payment of equal monthly instalments to the provider of finance and in this case if the Lessor defaults the EMI even after receiving the monthly payment from the Lessee, then the Lessor will be totally responsible for the same.

3.17. In the event of loans arranged by the Lessee, if the amount of finance sanctioned is less than 80% of the cost of motor vehicle, the Lessor need not meet the deficiency, because he is a shareholder of the company and a Lessor to this agreement.

3.18. The customer who is the Lessor can arrange loan for his vehicle by himself from any financial institution of his choice but the term of loan shall not be more than four years and the Lessee shall only be liable to pay the monthly lease payment amounting to Rs.27000/- to the personal account of the Lessor.

Clause 4: Issue and subscription to preference shares

4.1. The Lessor shall become a preference shareholder of the Lessee by investing Rs.25 lakhs as share capital.

4.2. The Lessee shall issue within 10 days of receipt of fund, redeemable preference share certificate to the Lessor under the common seal which shall clearly quantify the value of preference shares held by the Lessor.

4.3. The preference shares held by each shareholder shall be redeemed at the end of fourth year at premium, the redemption price of which shall be Rs.2.50 lakhs in the case of a normal shareholder and Rs.3 lakhs in the case of a privileged shareholder who is a combo customer as defined in clause 3.13 above.

4.4. The Lessee shall issue separate class of shares based on the dividend and redemption price of the preference shares.

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4.5. The Lessee shall be responsible for all the compliances and documentation in relation to the issue of preference shares in accordance with the provisions of the Companies Act, 2013 and the rules made thereunder.

4.6. The preference shares shall carry a dividend rate of 0.5% - 1% based on the class of shares issued to each subscribers to the issue.

4.7. The preference shares issued shall be redeemable non-convertible preference shares and no cumulative right shall be available in respect of the dividend payments.

4.8. Being a shareholder in the company the lessor shall be eligible for deducting an equivalent amount of sharecapital from the balance amount payable to the dealer.

4.9. The Lessor shall have all the rights and obligations normally given to a preference shareholder but limited to terms and conditions stipulated in the resolution passed at the board meeting held for approval of the issue of different class of preference shares.

Clause 5: General

5.1. This Agreement and its performance shall be governed by and construed in all respects in accordance with the laws of the Republic of India and the courts of Karnataka shall have exclusive jurisdiction.

5.2. This Agreement may be modified, amended or supplemented only by the mutual written agreement of the Parties.

5.3. If, during the continuance of this Agreement, there shall be any conflict between the provisions of this Agreement and the provisions of the Articles of Association then, during such period, the provisions of this Agreement shall prevail as between the Shareholders over the Articles of Association and in the event of such conflict, the Shareholders shall procure at the request of any of the Shareholders such modification to the Articles of Association as shall be necessary to the cure such conflict.

5.4. In the event of any breach of this Agreement by any of the Parties including a breach of the warranties (“Party in Breach”), the Party in breach shall indemnify each of the other Parties, keep them indemnified and hold them free and harmless from and against all actions, claims, demands, suits, damages, losses, penalties, interest and other charges and expenses (including reasonable legal fees and other dispute resolution cost) which the other Parties may then or at any time thereafter pay, incur, suffer or sustain directly or indirectly in connection therewith.

Furthermore, each of the Parties agree and acknowledge that damages would be inadequate to compensate for the breach of this Agreement by either Party and each Party shall also be entitled to equitable relief by way of interim injunction or specific performance by recourse to courts or judicial forum with appropriate jurisdiction.

I ……………………………………………………………………..being the Lessor to this agreement has fully read the terms & conditions and hereby agree to sign upon my free will and confidence after understanding all the points mentioned in this agreement.

LEASE AGREEMENT - yellowexpresslogistics.com Lease Agreement.pdf · the down payment scheme and the...

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