1. Vehicle(s) usage

The vehicle(s) leased by the Lessor to the Lessee is/are provided for the purposes of use on properly constructed highways and may not, under any circumstances be used for Hire & Reward and any type of Motor Sport or other purpose for which the vehicle(s) was not designed. Damage as a result of usage to the contrary of the above will be charged as per clauses 5, 9, 10 and 11.

2. Lessee’s responsibility

Payment will be made by postdated cheques and all invoices need to be settled within 30 days from the date of invoice. The vehicle(s) is/are to be cared for in accordance with clause 3 and only the named driver(s) is/are to use the vehicle(s) in accordance with clause 1. Driver(s) who are employed by the Lessee will be assigned to the leased vehicle(s) at the lessee’s discretion. Drivers are required to abide by the requirements of the traffic regulations in the Kingdom of Bahrain, in addition to always adhering to the insurance conditions. Traffic violations incurred whilst using the vehicle(s) is/are to be paid by the lessee. There will be no mechanical or electrical or body (interior or exterior) repairs to the vehicle(s) without written permission from the Lessor. If the leased vehicle(s) is/are the last vehicle(s) that is/are permanently being returned, then the Lessee needs to settle their account simultaneously completely with the Lessor.

3. Vehicle(s) care

The Lessee will check the vehicle(s) fluid levels and tire pressures at least weekly throughout the duration of the lease, and ensure the prescribed fuel is always used. Failure to comply may result in costs being charged in accordance with clause 5. It is the Lessee’s responsibility to use only MUMTAZ fuel as specified, in the leased vehicle(s) always. If any damage occurs from any other fuel used by the Lessee, then all damage costs will be charged to the Lessee. In matters such as this, the Lessor reserves the right to terminate the lease agreement and charge the Lessee termination fees as detailed in clause 10. The Lessee will present the vehicle(s) at the Lessor’s fleet support premises for servicing initially at 1,000 km then at either 10,000 km or 6-month intervals whichever is most frequent as advised by the dealership service centers. The Lessee will provide regular washing and vacuuming of the vehicle(s) to protect against premature deterioration of value. Only vehicle manufacturer or the Lessor’s approved accessories may be fitted.

4. Accidental damage

The Lessee will notify the Lessor’s fleet support immediately of any/all accidental damage to the vehicle(s), providing a Police Report within 24 hours to enable an insurance claim to be processed. Failure to provide such report will result in total liability for all costs, expenses, uninsured losses and third-party liabilities being charged to the Lessee. For claims where there is no claim against a third-party insurer and a police report is provided, an insurance excess of BHD 100/- will be charged to the Lessee on insurance claims and in the case of total loss the insurance excess will be BHD 250/-

5. Vehicle(s) abuse/driver negligence

In cases of extreme abuse and or driver negligence (examples are as follows but not limited to; transporting of pets, livestock or aquatic species inside the vehicle(s), cigarette damage, driving under the influence of alcohol/drugs, driving the vehicle with an overheated engine, oil leaking or with less coolant fluid that can result in the engine ceasing or getting damaged, damage to the vehicle (s) caused as a result of red signals crossing, driving without a license, vehicle (s) driven by a minor etc.) the lease may be unilaterally terminated by the Lessor, with the total value of the agreement immediately falling due as per Clause 10 and 11, and/or recovering the insured value of the vehicle . 'Fault' accidents are automatically considered to be driver negligence and as such no claim for personal injury or death liability exists in respect of the driver on the part of the Lessor or its' insurers (unless additional insurance has been selected at the time of the agreement).

6. Lease specifications

The lease includes use of the vehicle referred to in the vehicle checkout document/e-check sheet, by the named driver, for the period / mileage stipulated. All costs associated with the scheduled servicing, maintenance, and mechanical repairs (including normal wear and tear on tyres, excluding cut or impact damaged tyres) during the period will be at the expense of the Lessor provided that the vehicle(s) has been properly maintained in accordance with clause 3. The Lessor reserves the right to substitute the vehicle(s) at any time for similar size, age and mileage vehicle(s). If a vehicle supplied by the Lessor is a temporary or permanent replacement vehicle, the supplied vehicle shall not be subject to a new lease but shall be subject to the terms and conditions of this agreement. The replacement vehicle shall cease when it is returned to the Lessor by the Lessee or on the expiry of the lease agreement whichever is earliest, details of which are indicated in the checkout document/e-check sheet.

7. Lessor’s responsibility
   • To provide the vehicle(s) that is/are roadworthy, fit for use and comprehensively insured in accordance with Bahrain Road Traffic Regulations with a 24/7 emergency roadside assistance service. To fully maintain the vehicle(s) using qualified technicians, recognized parts, tyres and
   • To provide a replacement vehicle of a minimum size like a Toyota Yaris or above (at the Lessor's discretion subject to availability) whilst service work in excess of 2 hours is undertaken.
   • The Lessee acknowledges and consent to Lessor installing and operating a tracking device in the replacement vehicle/s referred in 7.2 and thereby release and forever discharge Lessor from any legal consequences in this regard.
8. Disputes/Complains

Any disputes or complaints resulting from this agreement, or its performance should be notified to the Lessor in writing. The management committee of the Lessor will ensure a response to such correspondence within 7 working days from the receipt of such notification and in case of no settlement was reached between the two parties within the given days; the courts of Bahrain will have the exclusive jurisdiction to settle it out as per article 12

9. Additional cost

Any mechanical/electrical or body repairs, damage resulting from equipment or vehicle accessories fitted to the vehicle(s) not authorised by the Lessor may be re-worked at the Lessee’s cost at the sole discretion of the Lessor. Any minor body/trim damage (below insurance excess applicable to the driver), excess dirt/stains and/or interior deterioration will be repaired/cleaned wherever applicable at the time of scheduled vehicle(s) maintenance, at the cost of the Lessee. Leased vehicle (s) retained by the Lessee beyond the agreement term may be subject to an upward revision in rental rates at the discretion of the Lessor until the vehicle (s) is/are physically received by the Lessor. The Lessor reserves the right to review the (fees, price etc.) or terms and conditions of this agreement, in the case of any law(s) or regulation(s) is/are enacted or adopted or amended after the date of this agreement which may lead to change in the existing policies, Levies, Taxes or VAT or any other charges.

New lease vehicle(s) is/are to be collected within 24 hours of being informed by the Lessor. If collected after 24 hours then the Lessor reserves the right at its discretion to start billing the Lessee from the first intimation date. Replacement vehicle(s) provided as per clause 7 have to be returned to the respective location as advised by the Lessor. A daily rental fee may be charged to the Lessee for late return of the replacement vehicle or original leased vehicles beyond the respectively notified period and/or contract expiry period at the discretion of the Lessor. Daily rental rate for this purpose means monthly lease rent plus 10%, will be charged on pro rata basis until the return of the vehicle.

10. Early Termination

This agreement shall early terminate as follows:

1. Breach of the terms and conditions of this agreement by the
2. Termination by the Lessee, by providing a written notice to the In the event of early termination, the following shall apply;

If terminated, within the first year of the lease agreement the lessee shall pay to the Lessor 50% of the lease rentals of the remaining uncompleted lease term*. If terminated after completion of the first year (12months) the Lessee shall pay to the Lessor 25% of the lease rentals of the remaining uncompleted lease term*.

*plus usual agreement end charges and expenses relates to items as follows but not limited to: traffic fines, damages not covered by a police report, damaged number plates, cigarette burns on car seats, missing tools, removal of Lessee installed stickers on the vehicle(s).

11. General

Any costs associated with the Lessee's breach of this agreement become immediately payable to the Lessor. The Lessor reserves the right to charge interest on all outstanding invoices @ 10% per annum until such time the invoices are fully settled. Failure to pay within 60 days from the invoice date constitutes early termination, at the discretion of the Lessor and the Lessee is required to pay all the charges per clause 10. Acceptance of the lease is acceptance of a 'set-off' agreement. Lessor reserves the right to set off lease rent or any other sum receivable from the Lessee against the amount payable by the Lessor or its associates. Such set off arrangement will be at the sole discretion of the Lessor.

12. Governing law

This agreement shall be governed by and construed in accordance with the laws and regulations of the Kingdom of Bahrain. Both parties agree that the courts in the Kingdom of Bahrain have an exclusive jurisdiction to settle any dispute which may arise out of or in connection with this agreement.

13. Excess mileage

The mileage for the vehicle (including its replacements) is set as indicated in the lease quote. Should the vehicle exceed this kilometer, a fee of 150 fils for each additional kilometer will be charged. It is the responsibility of the Lessee to present the vehicle for annual mileage checks and pay any excess mileage. Excess kilometers may be charged to the Lessee annually or on completion of the contract at the Lessor’s discretion.

14. Variations to the agreement

Variations to this agreement must be agreed in writing by both parties in order to be valid.