PUMP LEASE AGREEMENT This Lease Agreement is made the day of 20 between: Speednet Communications Limited (trading as SMART) with its office situated at 2.5 Miles Philip Goldson Highway, Belize City, Belize AND of (hereinafter the Customer ) Whereas: 1. Smart is the Proprietor of the cellular phone described below ( the Device ): Make: Model: Serial No.: PUMP Purchasing Price Residual Value: 2. The Customer is desirous of leasing the Phone on the terms and conditions hereinafter appearing: WHEREBY IT IS AGREED AS FOLLOWS: 1. Program Description: The PUMP (Please Upgrade My Phone) Program is a premium upgrade program which allows eligible SMART customers to lease the latest model cellular phones ( Device ) from SMART at preferred rates. It also permits SMART customers who decide to renew their lease under the Program to trade in their eligible device and lease a new device from SMART. 2. Eligibility: The Customer shall be eligible for the PUMP Program if he/she: a. Is 18 years or older; b. Has a Post Paid Plan or Data Plan with SMART with a value of $75 or more (excluding taxes); c. Has good credit based on a credit check conducted by SMART internally and with a credit agency; d. Has not defaulted under any previous PUMP Lease Agreement or any other agreement with SMART. 3. Lease Charges: The Customer shall make the following payments to SMART: a. Deposit The Customer shall pay a deposit of $. The deposit shall be refunded to the Customer at the expiration of the term of this Agreement, provided that the Customer has not breached any term of this Agreement or otherwise cancels the Agreement prior to the expiration of its term. 1
SMART reserves the right to apply the Deposit towards any debt that the Customer may have with SMART. b. Rent The Customer shall pay rent of $ per commencing on the day of 20 and payable on the day of each month for the term of this Agreement. for 12 instalments. 4. Term: SMART shall lease the Device to the Customer for a period of twelve (12) months commencing from the date of execution of this Agreement. At the expiration of the lease term the Customer shall have the following options available to him/her: b. Upgrade: The Customer may attend at a participating SMART office and have his/her device examined to determine if it is in good working order. If SMART, in its sole and absolute discretion, determines that the device is in good working order, the Customer will be permitted to trade in his/her device and upgrade to another device. The Device must be reset to factory settings and all passwords and locking features must be disabled, otherwise the Device will not be eligible for trade-in. In the case of an IPhone, the device should also be removed from all Cloud services. The Customer may apply any credit from the trade-in towards the new device. A Device will be considered in good working order if it is not broken, scratched, cracked or has missing parts or accessories including but not limited to(charger, LCD, hinge, keypad, buttons, housing, battery door). The Device must also have hardware and software operating in a manner consistent with the original manufacturer s specifications. The Customer understands that when he/she trades in an eligible device under the PUMP Program he/she surrenders all ownership rights in the device and SMART is under no obligation to return the device to the Customer; The Customer shall not be eligible for an upgrade if he/she is late in making 2 or more payments within the year to SMART. c. Not Renew: The Customer may choose not to renew his/her participation in the PUMP Program. In that event, the customer may: i. Authorize SMART to apply his/her Deposit towards the purchase of the device (at the Residual Value), and pay any balance owed for the Device after application of the Deposit and the monthly payments to the PUMP purchasing price. The Device will then become the property of the Customer and may be used on any SMART plan. ii. Return the Device in good working order to SMART and request the return of his/her Deposit. SMART shall not be obligated to accept the Device unless it is presented to SMART in good working order, as defined above. If the Device is not in good working order SMART may reject the Device and the Customer shall be obligated to pay the residual value of the Device. The Deposit and rental payments shall be applied against the residual value PUMP purchasing price to determine any balance owed by the Customer. 2
5. Loss of Device: The Device shall remain the property of SMART unless it is purchased by the Customer in accordance with the terms of this Agreement. The Customer shall not sell, sub-let, use the device on another network or otherwise part with possession of the Device. If the event the Device is lost, stolen or damaged, the Customer shall compensate SMART by paying the residual value of the Device. The Deposit and rental payments shall be applied against the residual value PUMP purchasing price to determine any balance owed by the Customer. 6. Early Cancellation: The Customer may cancel/terminate this Agreement prior to the expiration of its term by prepaying the rent due under clause 3(b) for the unexpired term of this Agreement to meet the PUMP purchasing price. Where the Agreement is cancelled early, the Customer shall have the option to retain the Device by paying its residual value the value to meet the PUMP purchasing price. The Deposit and rental payments shall be applied against the residual value PUMP purchasing price to determine any balance owed by the Customer. 7. Default The Customer shall be in default if: a. The Customer fails to make any payment required by clause 3(b) when due; b. The Customer breaches any covenant or warranty in this Agreement; c. The Customer defaults in the performance of any other obligation in this Agreement and the default continues for ten (10) days; d. The Customer cancels his Post Paid Plan or Data Plan; e. SMART terminates the Customer s Post Paid Plan or Data Plan. In the event of default SMART may exercise any one or more of the following remedies: a. Disconnect all services to the Device; b. Terminate the Agreement pursuant to clause 8 below; c. Take possession of the Device and sell, lease, or otherwise dispose of the Device to satisfy any debt owed to SMART. The Customer shall indemnify SMART, on a full indemnity basis, for all costs and expenses incurred as a result of the Customer s breach of this Agreement. 8. Termination by SMART SMART may terminate this Agreement if the Customer: a. Fails to pay the Lease Charge set out at clause 3(b) above, and remains in default for more than 60 days; or b. Fails to make any payment due under his/her Post Paid Plan or Data Plan and the default continues more than 60 days. c. Fails to make payment to SMART for any other service associated with the Device, and the default continues for more than 60 days. Where the Agreement is terminated by SMART the Customer shall, immediately on demand, return the Device to SMART. If the Device is in good working order SMART may, in its sole discretion, accept the Device. Without prejudice to any other right or remedy to which SMART may be entitled in law, SMART may forfeit the Deposit as liquidated damages for the breach of the Agreement. 3
If the Device is not in good working order the Customer shall pay to SMART the residual value remaining balance to meet the PUMP purchasing price of the Device. The Deposit and rental payments shall be applied against the residual value PUMP purchasing price to determine any balance owed by the Customer. 9. Nature of Agreement: This Agreement is supplemental to, and is not intended to replace any other agreement that the Customer has with SMART, including his/her Post Paid Plan. The Customer is required to comply with the terms and conditions of any other Agreement he/she has executed with SMART. The Customer shall make all rental payments in accordance with clause 3(b) above, notwithstanding the termination of the Customer s Post Paid Plan, Data Plan or any other Agreement with SMART. 10. Privacy It is the Customer s obligation to secure information on his/her device. The customer is responsible for removing data and personal information, which includes but is not limited to memory cards, passwords, access to their cloud, contacts, emails, pictures or calendars. 11. Transferability This Agreement is non-transferable and non-assignable. 12. Waiver of Liability: Under no circumstance shall SMART or its agents, affiliates, officers or employees be liable to the Customer for any incidental, consequential, exemplary, indirect, special or punitive damages arising out of, from, or related to the Customer s participation in the PUMP Program, regardless of the form of action (including but not limited to negligence), and regardless as to whether SMART has been advised of the possibility of such loss or damage. In the event a Court in Belize shall determine that this clause is unenforceable, the Customer agrees that the extent of SMART s liability shall be $100.00. 13. Indemnity The Customer agrees to indemnify and hold SMART, its parent, subsidiaries, affiliates, officers, directors, agents and employees harmless from any claim or demand, including attorneys fees (on a full indemnity basis), made by any third party due, connected to, or arising out of the Customer s breach of this Agreement, the Customer s acts or omissions, or the Customer s violation of any law or the rights of any third party. 14. Modification of Agreement SMART reserves the right to change the terms and conditions of the PUMP Program at any time. In the event the terms and conditions of the PUMP Program are changed, SMART shall have the right to unilaterally change any provision of this Agreement to bring it into conformity with the terms and conditions of the PUMP Program. The Customer shall be notified in writing of any change made by SMART to this Agreement. 15. Notice Any notice or demand provided for or given pursuant to this Lease shall be in writing and served on the parties at the address listed below: 4
SMART: The Customer: 2 ½ Miles, Philip Goldson Highway Belize City, Belize e-mail: e:mail: Any notice shall be either (i) personally delivered to the addressee set forth above, in which case it shall be deemed delivered on the date of delivery to said addressee or (ii) sent by registered or certified mail/return receipt requested, (iii) sent by courier during normal business hours. 16. Waiver The waiver by either party of a breach or default of any of the provisions of this Agreement by the other party shall not be construed as a waiver of any succeeding breach of the same or other provisions nor shall any delay or omission on the part of either party to exercise or avail itself of any right power or privilege that it has or may have hereunder operate as a waiver of any breach or default by the other party. 17. Severability In the event that any one or more of the provisions of this Agreement shall for any reason be held to be invalid, illegal or unenforceable, the remaining provisions of this Agreement shall be unimpaired and the invalid, illegal or unenforceable provision shall be replaced by a mutually acceptable provision, which, being valid, legal and enforceable, comes closest to the intention of the parties underlying the invalid, illegal or unenforceable provision. 18. Successors and Assigns This Agreement shall be binding upon and shall enure to the benefit of the parties hereto and their successors and assigns. 19. Dispute Resolution If any dispute or question shall arise between the parties hereto with respect to the construction or effect of this Agreement or any clause or thing herein contained, or the rights, duties or liabilities of either party under this Agreement, the parties shall have the right to pursue legal proceedings in any court of competent jurisdiction in Belize. 20. Governing Law This Agreement shall be governed by the laws of Belize. Customer Witness 5