General Terms and Conditions of Lease

General
If not otherwise agreed upon in writing, the following terms and conditions shall apply to all leases, including repeat orders, for which Algeco Oy is the lease provider (hereafter “The Lessor”). By making the lease payments, the Lessee accepts the Terms and Conditions of Lease. The Lessee ensures that at the time of the order and after the order, his financial position is such that it allows him to fulfill his obligations under the lease contract. Algeco Oy has separate Terms and Conditions of Sale for the company’s sale activities.

I Orders
All offers of the Lessor are non-binding, which means that the Lessee is requested, by means of the non-binding offer, to first place an offer of his own for the Lessor to accept or decline. Thus it is possible to change the contents of the lease and the duration, the price and the other elements of the contract until the Lessor accepts the offer made by the Lessee.

II Lease period
1. The lease period begins on the date agreed by the Lessee and the Lessor to be the date of the start of the lease. In deviation from this, the lease period can, however, begin at the real time of delivery of the lease object if the object to be leased, for reasons the Lessor is accountable for, is delivered to the Lessee at a point of time later than agreed.

2. For lease agreements remaining in force until further notice, the lease period ends, at the earliest, seven (7) days after the Lessor has received a written notice of termination of the lease. The lease period cannot, however, end before the end of the first month of lease, as calculated from the point of time agreed to be the time at which the lease period begins.

3. If the contract of lease is made for a specified minimum period, it cannot be terminated during that period. In the event that the leased objects are returned earlier than agreed for whatever reason, the Lessee shall pay the lease fee, including any additional costs arising from early termination of the contract, for the entire minimum period agreed upon.

III Delivery and return of the lease object
1. Unless otherwise separately agreed upon, delivery and return of the lease objects are carried out at the Lessee’s cost and risk. The Lessor cannot be held liable for delayed delivery or collection of the lease objects by the transportation company, not even in a case in which the transportation company has received its assignment from the Lessor.
 
2. The Lessee must ensure that the lease object is unloaded and loaded duly and professionally when delivered, or returned after the lease period. The costs entailed shall be borne by the Lessee even if the unloading and loading was carried out by the Lessor or by order of the Lessor.
 
3. The Lessee is obligated to arrange in advance a suitable, stable and level site and/or foundation on which the lease object can be erected.

4. The Lessee is obligated to arrange in advance ready-to-use electrical, water and wastewater connections for all modules. The Lessee shall be responsible for the removal of these connections after termination of the lease contract.

IV Lease fee
1. The Lessee shall pay the lease fee on a monthly basis, within ten days from the date of the invoice. Incomplete months shall be paid for on the basis of the number of calendar days on which the lease contract was in force.

2. If the contract of lease is made for a period of over six (6) months, or the Lessee uses the lease object for more than six (6) months, while the overall costs rise due to poor economy leading to wage and price increases and higher interest costs, the Lessor shall be entitled to raise the lease fee by a corresponding amount. The higher lease fee shall be charged from the beginning of the month following the notice of increase in the lease fee.

3. The Lessor may increase the lease fee annually by informing the Lessee thereof in writing no later than two (2) months prior to the increase. In such case, the Lessee shall have a right to terminate the lease agreement by informing the Lessor thereof in writing no later than one (1) month after receiving the notice of the increase, regardless of what has been said above in Section II, Subsection 3. The lease period ends seven (7) days after the Lessor has received a written notice of termination of the lease.

4. If the monthly lease fee or some other fees to be paid by the Lessee are delayed by more than eight (8) days, or the Lessee fails to fulfil one or more of his obligations under the lease contract, the Lessor shall be entitled to:

a) demand payment of all lease fees not yet due, and/or
b) terminate the lease contract without notice, and immediately withdraw the lease objects at the Lessee’s expense, and/or
c) enforce all other claims of the Lessor under the contract of lease or on the basis of law. Nevertheless, the Lessee shall meet all obligations still in force under this contract.

5. The Lessor is entitled to claim default interests for late payment, as specified in the Interest Act.

6. The Lessor is entitled to claim from the Lessee € 15.00 for every written request for payment made after the payment has become overdue. The Lessee must pay these costs irrespective of the default interests referred to in Section 4.

V Delay and Force Majeure
If the Lessor’s performance is delayed or defective as a result of Force Majeure or slight negligence, the Lessee shall not be entitled to claim damages from the Lessor. The Lessor’s liability for delay or for defective performance shall in no case exceed the amount of € 2,550.00 for an individual order or for any part of the lease contract.
 
VI Lease object
1. The Lessee shall use the lease objects with care and protect them against overuse. The Lessee shall adhere to all regulations pertaining to ownership, use or preservation of the lease objects, and arrange for care, service and maintenance of the objects.

2. The Lessee shall, at his cost, keep the lease objects in the required condition, and purchase, exchange and install new parts as spare parts whenever needed.

3. The Lessee shall
- use the lease object only according to regulations
- assign, at his cost, all repairs that may be needed due to an improper handling of the lease object or on the basis of technological changes.

4. Only with written consent of the Lessor shall the Lessee be allowed to perform additional installations on the lease objects or change them otherwise.

5. The Lessee agrees not to remove, cover or make otherwise illegible the markings on the lease objects that clearly display the Lessor as the owner of the objects leased.

6. The lease object shall be erected on a site agreed upon by the Lessee and the Lessor. The Lessee shall only with the Lessor’s written consent be entitled to change the site of the object or of parts of the object. Responsibility for a change of site lies with the Lessee.

7. In order to check the serviceability of the lease object and the manner in which the object is used, the Lessor shall be entitled to visit the lease object during normal office hours.

8. The lease object may for temporary purposes only be connected to the ground or to buildings or technical equipment. The lease object shall not become part of a lot of land, building or technical system and it must be disconnected at the end of the lease period.

9. If the lease object shall serve a major cause owned by external parties, the Lessee must tell the respective owner that the object is erected on its site for temporary purposes only.

10. The Lessee shall inform the Lessor immediately about any executory measures focusing on the lease object, and hand over to the Lessor all necessary documents. Furthermore, the Lessee must inform the Lessor about any application for foreclosure or forced administration against the property on which the lease object is placed, or against buildings or equipment relating thereto.

11. Responsibility for accidental destruction, loss, theft, damage or premature wear and tear of the lease objects lies with the Lessee – notwithstanding the reasons that may have caused such damages. Events like the above do not free the Lessee from his liability to pay the lease fees and any additional costs agreed upon.

12. The Lessee must notify the Lessor immediately of events referred to in Section 11 above. Within a reasonable period of time granted by the Lessor, the Lessee shall, as chosen by the Lessor:

a) either repair the lease object at his cost and return it to the condition specified in the contract, or
b) replace the lease object with other objects of a similar value, or
c) pay the Lessor in cash a net compensation for the amount of money the Lessee stills owes to the Lessor under the contract of lease.

13. If the above only refers to a part of the lease objects, it is applied correspondingly. This does not change the lease fee agreed upon.

14. The Lessee must insure the lease object throughout the duration of the lease period and until the lease object is returned to the Lessor's control (without prejudice to any liability of the Lessee to the Lessor) at his own expense with a reputable insurance company against all risks, loss or damage including all risks of third party and public liability arising out of ownership presence or use of the lease object in an amount not less than the full new replacement value of the lease object.

15. After delivery of the lease object, the Lessee shall, promptly on request, submit written proof of the insurance policies he has obtained.

16. A damage waiver fee, plus Value Added Tax, will be automatically charged to the Lessee in addition to the lease fee, until written proof of the insurance policy is provided by the Lessee to the Lessor demonstrating that the Lessee has obtained insurance of the lease object at least to the minimum value set out in the above Section VI, Subsection 14. The Lessee's timely payment of the damage waiver fee relieves the Lessee of liability in excess of the damage waiver fee for any loss or damage to the lease object, except as set out in Section VI, Subsection 17 below.

17. The damage waiver does not provide coverage for the "Exclusions" defined below or any other circumstances not covered by the "Insured Risks" defined below and the Lessee remains liable for any loss or damage to any lease object arising from the Exclusions and any other circumstances not covered by the Insured Risks.

"Exclusions" means any loss resulting from a risk which is not an Insured Risk, willful misconduct by the Lessee or its employees, agents or contractors, any loss of lease object revealed only when an inventory is made, loss of generating equipment in or connected to powered buildings, bodily injury, glass breakage, civil or foreign war, nuclear damage, terrorism, embargo / destruction upon request of government or public authority, wear and tear, theft from an unsecure or unguarded building or site, fraud, dishonesty, business interruption, indirect damages, loss damage or re-instatement of ground in or around the site, losses or damage resulting from the incorrect use and maintenance of the lease object. "Insured Risks" means fire, act of vandalism (by a person other than the Lessee, its employees, agents and contractors), and theft from a secure or guarded site.

18. The parties acknowledge and agree that the damage waiver in this Section VI is not insurance and therefore does not cover any general liability incurred by the Lessee (including any loss or injury to third parties) or his or any third party's use of the lease object, any consequential loss incurred by the Lessee or any third party, or any of the Exclusions.

19. Apart from what is required by mandatory legislation, the Lessor shall not be liable for any damages that the lease object may, directly or indirectly, cause to the Lessee or to third parties.

20. The Lessee must pay all fees, taxes (such as property tax) and other expenses resulting from keeping the lease object on its site during the lease period and also thereafter, if the lease object is still being used by the Lessee. The Lessee must, in due time and at his own cost, apply for all formal permissions, particularly the building license, required for erecting the lease object. Moreover, the Lessee must inform the Lessor about all legal or official regulations, principles or requirements the neglect of which might jeopardize the use or the erection of the lease object.

21. Without the Lessor’s consent, the Lessee cannot allow third parties to use the lease object. Lease fees payable by sub-lessees shall be paid exclusively to the account of the Lessor. To secure the receivables of the Lessor, the Lessee shall transfer to the Lessor all his claims for the payment of lease fees receivable from any sub-lessees.

22. If required by the weather, the Lessee shall take appropriate action to prevent damage by frost to cables etc. until the Lessor collects the lease object for good.

VII
Should the Lessor learn essential information about the Lessee, such as confiscation, executory measures or bill protests, that may jeopardize the Lessee’s ability to meet his contractual obligations, the Lessor shall, even in the case that the lease object has not yet been handed over to the Lessee, be entitled to resort to the rights referred to in the above Section IV, Subsection 3.

VIII Return of the lease object
1 After termination of the lease contract, the Lessee shall immediately, at his own cost and risk, return the lease object to the place of storage nearest to the Lessor. The lease object must be returned by insured transport and in a condition comparable to the condition the lease object was in at the time of the delivery, as specified by the Bill of Lading, taking, however, into account the normal wear caused by use of the object according to the contract of lease, and the agreement referred to in Section VI above.

If, after the Lessee has declared the object of lease to be released, the Lessor undertakes to transport the object back according to the contract, the Lessee must, at his cost and risk, guarantee that the lease objects can be collected from the date on which the notice of release was made, without there being a separate agreement as to the time of collection. In order for the lease object to be ready for collection, all connections that the Lessee or the Lessor may have performed on the lease object must be removed, notwithstanding the nature of such connections.

If the objects of lease are connected to objects owned by the Lessor or an external company, the Lessee must guarantee, at his own cost and risk, that the objects of lease will be separated from the equipment system without risk. Should it for other reasons not be possible to collect the object from an agreed place, the Lessee shall, at his cost and risk, transport the object to a suitable place from which it can be collected without difficulty. The transfer of the lease object to a new location must first be agreed upon with the Lessor. The Lessor must consent to the transfer in writing. The Lessee shall be held liable for any damage until the Lessor has collected the object.

Should the Lessor, despite the possibility to collect the lease object, fail to collect the object within four weeks from the date on which the notice of release was made, the Lessee shall be freed from the obligations referred to above. The possibility to collect the lease object must, however, have existed during the entire four-week period.
 
As long as the lease object cannot be returned for reasons that the Lessee is accountable for, the Lessee must pay the Lessor compensation for use of the object until the time the object is collected for good.  If the Lessee keeps the lease object beyond the initial lease period, these terms and conditions shall continue to apply, save that the Lessee shall be considered to be renting the lease object until further notice and after that time and at such frequency as the Lessor determines, the Lessor may in his absolute discretion adjust the lease fee to his then prevailing rates for leases until further notice.

The Lessee shall always pay to the Lessor the expenses that, for reasons the Lessee is accountable for, accrue for the Lessor from empty rides. The amount to be paid shall correspond to the real costs, inclusive of Value Added Tax.

2. All necessary repairs and spare parts as well as cleaning and renewing work will be paid by the Lessor against a presentation of the costs. Such costs and the cost of the return transport, as far as the transport was carried out by the Lessor or a transport company assigned by the Lessor, shall, after reception of the corresponding invoices, be paid by the Lessee in net without deductions. The Lessee carries the risk for the return transport. Should the return transport not be possible due to weather or similar reasons, the additional costs accrued shall be paid by the Lessee.

3. If necessary, the Lessor shall certify the return of the lease object, provided that the lease object is serviceable and in a proper condition when returned.

4. Should the producer price index for diesel oil increase or decrease by more than ten (10) percent, as compared to the time of delivery of the lease object, the Lessor shall be obligated or entitled to proportionately reduce or increase the cost of transport originally agreed upon.

IX
Any additional agreements must be made in writing.

X
Should any of the terms and conditions of this contract of lease or of the General Terms and Conditions of Lease, not be valid for whatever reason, it shall not in any way affect the other terms and conditions of the contract.

XI
Should the Lessee purchase the lease object during or after the lease period, the lease object remains the property of the Lessor until all lease fees, purchase invoices and other bills have fully been paid.

XII Data security
In connection with the leasing activities, the Lessor shall save and electronically process the information needed in the framework of the contractual relationships and for the purpose of attending to customers.

XIII
Any disputes between the Lessee and the Lessor shall primarily be solved, if possible, by means of negotiations between the Parties.

Disputes that cannot be settled by means of negotiations shall be solved by the Helsinki District Court. The law applicable to the settlement of disputes is Finnish law.

 

GENERAL TERMS AND CONDITIONS OF LEASE Fi – February,15th2018