LEASE AGREEMENT AND SERVICE CONTRACT
This Lease Agreement and Service Contract (the “Lease Agreement”) by and between Budget IID, LLC, an Arizona limited liability company (“Us” or “Provider”) and the individual referenced above (“You” or “Customer”) is agreed to and executed as of the above Date (the “Effective Date”).
Customer is a participant in the ignition interlock program (the “Program“). The Program involves the installation of an ignition interlock system (the “System”) into Customer’s vehicle. The Program includes monitoring the use and function of the System by means of a built-in data logger, having service checks performed and data logger information retrieved at regular intervals, and providing the appropriate authorities responsible for administration of the Program (the “Administering Authorities“) with periodic reports as to Customer’s compliance or non-compliance with the requirements of the Program.
The function of the System is to prevent Customer from operating the vehicle after consuming alcohol. The System requires a breath test prior to starting the vehicle, followed by a series of retests at random intervals. If the Customer fails the initial test, the system will enter a lock out state that prevents the vehicle from being started for a period of time. If the Customer fails a retest or does not take a retest when required, an alarm will sound until the retest is taken and passed or, alternatively, the vehicle is stopped and the engine shut off.
- Lease. Provider hereby leases to Customer and Customer hereby leases from Provider, subject to the below terms and conditions, the System, commencing on the Effective Date and continuing throughout the Term until terminated as provided herein. As lessee of the System and participant in the Program, You agree to the following terms and conditions.
- Description of Leased Equipment. The System includes, without limitation, the handset, camera (where required), and control box listed on the Information and Signature Page attached hereto. The System is owned by, and shall remain the sole and exclusive property of, Provider. You may not, directly or indirectly, encumber or otherwise impair Provider’s title to the System. You agree to keep the System in good working order and acknowledge that You will be charged for any loss or damage to the System as provided herein.
- Term. This Lease Agreement shall commence on the Effective Date and shall continue in full force and effect until terminated pursuant to Section 7. Notwithstanding anything else herein, this Lease shall remain in full force and effect, and the Term extended automatically, until the System is returned to Provider pursuant to the terms herein. At the expiration of the Term or prior termination of this Lease, Customer shall not be entitled to purchase the System or any equipment comprising the System.
- Service. Customers are required to have the System inspected and serviced in accordance with the Program. Failure to have the System serviced properly may result in fines, an extension of your driver’s license suspension, or other penalties, depending on the state Administering Authority. At each appointment for service (a “Service Appointment”), upon full payment by Customer, Provider or its representative will do the following in accordance with Program requirements:
- Inspect and service the System.
- Retrieve stored information from the System’s data logger
- Prepare a report for the Administering Authorities as to Customer’s compliance or non-compliance with the Program.
Service is by appointment only and subject to availability. Scheduling a timely appointment is the sole responsibility of Customer. Any missed appointment must be re-booked and may result in a re-booking fee as set out in the attached Fee Schedule, unless cancelled twenty-four (24) hours prior to the Service Appointment.
- A credit card and a signed credit authorization form.
- A debit card and a signed credit authorization form.
- A voided check For Electronic Check Deductions (E-Check)
- Documentation & Communication. Customer hereby authorizes Provider to have and maintain copies of Customer’s government issued identification and vehicle registration during and after the Term of this Lease, until destroyed pursuant to Provider’s normal course of business or the Administering Agency’s rules and regulations. Customer agrees that all electronic, written, and/or oral documentation and communication regarding Customer’s compliance and/or non-compliance, including, without limitation, global positioning system (“GPS”) coordinates, photographs, video recording and written statements of non-compliance, shall be made available to the Administering Authority or otherwise in accordance with the Program. Customer may obtain copies of said documentation only through the applicable Administering Authority. Customer agrees that Provider and our affiliates are authorized to communicate with Customer via email, phone call, and/or text message using the information provided, for any compliance, billing, marketing, or any other purpose that we deem to be relevant. We do not provide copies of data reports to Customers directly.
- If this Lease Agreement was entered into by Customer due to order of a governmental agency, Customer may terminate this Lease Agreement upon the following conditions:
- Customer must provide an order from the appropriate governmental agency permitting termination of the Program and removal of the System.
- The System must be removed by Provider or an entity authorized by Provider.
- All Fees and other charges including, without limitation, any early termination fee or removal charge, must be paid.
- The System must be returned to Provider in good condition or repair fees, up to $2500, must be paid if the System has been damaged in Customer’s possession.
- Provider may terminate this Lease Agreement at any time, prior to the end of the Term following Customer’s Default. In the event of a termination due to Customer’s Default, Customer acknowledges and agrees:
- Provider or its authorized representative may take possession of the System, including, without limitation, entering any premise wherein the System may be located to remove and retrieve the System. Under such circumstances, Customer appoints Provider as its lawful agent for such purpose, with full authority to gain access and entry to the vehicle, and remove the System from the vehicle, by whatever means required. It is expressly acknowledged and agreed that Provider shall not be liable for any loss or damage occasioned thereby, and You hereby agree to indemnify and save harmless Us and/or our representatives from and against any liability arising therefrom.
- Provider may report said termination to the court, the appropriate governmental agency or the Administering Agency, as required by each jurisdiction, if applicable, which may result in a loss of driving privileges.
- Unless otherwise prohibited by state law, provider has the right to assess an early termination fee.
- Customer shall not be entitled to any refund of prepaid fees except as otherwise provided. All Fees shall become immediately due and payable.
- Return of Equipment. Upon termination of this Lease, the Customer shall deliver the System to the Provider at the address designated by Provider, complete and in good working order, save for reasonable wear and tear. Customer shall pay Provider the amount necessary to cover replacement or repair of damaged, broken or missing parts. This Lease Agreement shall remain in full force and effect, and the Term extended automatically, until the System is returned to Provider pursuant to the terms herein.
- Default. Provider is in Default under this Lease Agreement if Provider fails to install, calibrate, repair, or replace the System, provided You have scheduled an appointment and paid all Fees when due, in accordance with this Lease Agreement. If we are in Default, You may cancel this Lease by notifying Us; and You will have no further obligations under this Lease other than the obligation to return the System to Us and paying any remaining Fees.
You are in Default under this Lease if you fail to perform any obligation hereunder, including without limitation:
- Failure to Pay all Fees when due;
- Failure to schedule a required Service Appointment or return vehicle to the designated service center within seven (7) days after any Service Appointment;
- Failure to return the System when required;
- Failure to comply with applicable statutes, regulations, court orders, or the terms of this Lease;
- Damage to or loss of the system caused by a willful act or omission on the part of the Customer or a permitted user of the vehicle;
- Any evidence, in the sole discretion of Provider, of tampering with or attempting to circumvent the system; and
- Any sale, lease, assignment or transfer of title, or other transfer of legal or equitable ownership or possession of the vehicle by the Customer or registered owner without our prior written consent, and any actual or threatened seizure, impoundment, repossession, or permanent dispossession of the Customer of the vehicle.
We may terminate this Lease Agreement following your Default by notifying You however, termination will not affect Provider’s right to pursue any additional damages.
- Warranty. During the Term, we will repair or replace the System at no cost if it is not functioning properly due to a defect in materials or workmanship. Such replacement shall be done during normal business hours at the location where the System was installed or where the Customer is receiving Service Appointments. THIS WARRANTY IS EXCLUSIVE AND THERE ARE NO WARRANTIES WHICH EXTEND BEYOND THE DESCRIPTION HEREIN, EXPRESS OR IMPLIED, INCLUDING ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. IN NO EVENT WILL WE BE LIABLE FOR ANY INCIDENTAL OR CONSEQUENTIAL DAMAGES. CUSTOMER SHALL BE RESPONSIBLE FOR AND SHALL PAY OR REIMBURSE PROVIDER FOR ANY DAMAGE TO THE SYSTEM DUE TO ANY USE OF THE SYSTEM OUTSIDE THE PERMITTED USES DESCRIBED HEREIN. Without limiting the generality of the foregoing, Customer understands that Provider does not warrant the ability of Customer or other permitted users of the vehicle to operate the vehicle safely with the System. Operation of the vehicle is the sole responsibility of Customer. Customer also understands that the Provider does not warrant the ability of the System to prevent Customer or any other user of the vehicle from starting and/or operating the vehicle in violation of the Program or state or federal laws while in an alcohol impaired condition. Customer shall not attempt to start or operate the vehicle after consuming alcoholic beverages.
- Limitation of Liability. IN NO EVENT SHALL PROVIDER BE LIABLE TO CUSTOMER OR ANY THIRD PARTY FOR ANY LOSS OF USE, REVENUE, PROFIT, DATA, OR DIMINUTION IN VALUE, OR FOR ANY CONSEQUENTIAL, INCIDENTAL, INDIRECT, EXEMPLARY, SPECIAL OR PUNITIVE DAMAGES WHETHER ARISING OUT OF BREACH OF CONTRACT, TORT (INCLUDING NEGLIGENCE) OR OTHERWISE, REGARDLESS OF WHETHER SUCH DAMAGES WERE FORESEEABLE AND WHETHER OR NOT PROVIDER HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, AND NOTWITHSTANDING THE FAILURE OF ANY AGREED OR OTHER REMEDY OF ITS ESSENTIAL PURPOSE. IN NO EVENT SHALL PROVIDER’S AGGREGATE LIABILITY ARISING OUT OF OR RELATED TO THIS CONTRACT, WHETHER ARISING OUT OF OR RELATED TO BREACH OF CONTRACT, TORT (INCLUDING NEGLIGENCE) OR OTHERWISE, EXCEED THE AGGREGATE AMOUNTS PAID OR PAYABLE TO PROVIDER PURSUANT TO THIS CONTRACT.
- Indemnification. Customer agrees to indemnify and hold harmless the Provider (including its employees and agents) from any and all claims, demands, actions, costs, and expenses whatsoever. Furthermore, any other claims that may arise, directly or indirectly, out of any act or omission of Customer, other users of the vehicle, or persons under their care, custody, or control, relating to Customer’s participation in the program. Such indemnification shall continue after termination of this Lease Agreement. The Provider (including its employees and agents) shall not be liable nor responsible for any bodily or personal injury or property damage of any nature whatsoever may that be suffered by Customer, other users of the vehicle, or any other person, resulting directly or indirectly from Customer’s participation in the Program.
- Risk of Loss. Customer hereby assumes the entire risk of loss, damage or destruction of the System during the Term of this Lease Agreement until returned to Provider. In the event of loss, damage or destruction of the System, Customer, at its sole expense (except to the extent of any proceeds of any loss, damage protection that shall have been received as a result of such loss, damage or destruction) shall repair the System to its previous condition.
- Notices. Any notice given pursuant to this Lease Agreement shall be sufficient if in writing and delivered by e-mail, personally or sent by ordinary prepaid mail to the address of the Provider or Customer, as the case may be. In the event that notice is given by mail as aforesaid, it shall be deemed to have been received on the third business day after mailing.
- Remedies. In the event of Default by Customer, the Provider may, but is not obligated, to avail itself of any legal or equitable remedy that may be available to it in order to enforce this Lease Agreement, which shall include, without limitation, the right to take possession of the System. Provider shall not be required to exhaust any remedies before pursuing any other remedies. No actions by the Provider shall result in an estoppel or waiver of rights and shall not preclude the Provider from requiring full and strict compliance with this Lease Agreement at any time.
- No Variation of Terms. Provider’s employees have no authority to vary the terms of this Lease Agreement. Customer may not rely upon, and Provider will not be bound by, any variations or representations, whether oral or written, made by Provider’s employees pertaining to this Lease Agreement. No term of this Lease Agreement may be waived or changed except by written amendment between Customer and Provider.
- General. This Lease Agreement, including the state-specific riders incorporated below, and any related policies, rules, or and communications constitute the entire agreement and understanding between Customer and Provider. Provider’s failure to exercise or enforce any right or provision of this Lease Agreement shall not operate as a waiver of such right or provision. The terms and provisions herein operate to the fullest extent permissible by law. Provider may assign any or all of our rights and obligations under this Lease Agreement (including to the equipment that makes up the System) to others at any time. We are not responsible or liable for any loss, damage, delay, or failure to act caused by any cause beyond our reasonable control. If any provision or part of a provision of this Lease Agreement is determined to be unlawful, void, or unenforceable, that provision or part of the provision is deemed severable and does not affect the validity and enforceability of any remaining provisions. There is no joint venture, partnership, employment, or agency relationship created between Customer and Provider as a result of this Lease Agreement or use of the System. You agree that this Lease Agreement will not be construed against Us by virtue of having drafted them. You hereby waive any and all defenses You may have based on the electronic form of this Lease Agreement and the lack of signing by the Parties hereto to execute this Lease Agreement.
- Dispute Resolution. If a dispute arises under this Lease Agreement, the Parties must submit such dispute to non-binding mediation by either party making a written demand (“Mediation Demand”). The mediator will be chosen by agreement of the Parties and mediation will be held in the state of Arizona within sixty (60) days following the Mediation Demand. If either party refuses to participate in good faith in the selection of a mediator, the party who is participating in good faith will select the mediator. The Parties will split the costs of the mediation equally. The mediator will deem the mediation “Complete” when the Parties agree that it has been completed, the mediator declares that an impasse exists or ninety (90) days have elapsed since the Mediation Demand, whichever occurs first. The statute of limitations will be tolled during the mediation process. If mediation is deemed complete without resolution, either party shall be free to pursue its remedies as provided by law. No dispute, except a dispute requiring urgent and immediate court action, shall be referred to a court before the provisions of this Section 18 have been followed.
- Collection Costs and Attorney’s Fees. In the event that any action is filed by or on behalf of Provider in relation to this Lease Agreement in an attempt to collect property (or the replacement value thereof), and/or monies due and owing by the Customer, Customer agrees to pay any and all fees and costs incurred by Provider in its attempts to collect said property (or replacement thereof) or monies, which shall specifically include, but not be limited to, reasonable attorney’s fees, collection costs at fifty percent (50%), court costs and/or fees, as well as any and all other fees or costs directly or incidentally related to the action(s). These fees and costs shall be in addition to any and all property (or replacement value thereof) and/or sums owed the Provider by the Customer. We reserve the right to pursue any and all legal remedies in our efforts to collect property (or the replacement value thereof) and/or monies due to Us.