1. During the Lease Term and until the return of the Vehicle in good working order/condition to the Lessor, the Lessee is solely responsible for use of the Vehicle in compliance with traffic rules and regulation, including payment of toll charges. Accordingly, the Lessee shall be solely liable for all traffic violations involving the Vehicle during the aforesaid period (the “ Traffic Violation ”) and cost, penalty, fines and/or charges imposed in respect thereof, including fines for late payment, toll evasion/ interstate taxes or any processing fees added by the relevant regulatory authority(ies). The Traffic Violation includes, but is not limited to, unauthorised parking, excess speeding, breaking red light, photo enforcement, and toll violations.

  2. The Lessee shall notify/report all Traffic Violations to the Lessor in writing together with all details, as soon as possible, not being later than 24 hours prior to expiry of period prescribed for taking necessary action in respect thereof under Applicable Laws (for example, if the case is being taken to court).  Thereafter, the Lessee shall forthwith pay the relevant fine/s to the authority concerned and provide Lessor with the proof of such payment. In the event the Lessee fails to do so, the Lessor shall have the right at its sole discretion to pay such amounts and the Lessee shall reimburse the Lessor for same at the earliest.

  3. The Lessee shall also be responsible if the Vehicle is confiscated, seized or impounded during the Lease Term and until the return of the Vehicle in good working condition to the Lessor, for any reason attributable to the Lessee (“ Confiscation ”). In such cases the Lessee shall notify/report the Confiscation to the Lessor in writing together with all details, as soon as possible, not being later than 24 hours prior to the expiry of the period prescribed for taking necessary action in respect thereof under Applicable Laws. The Lessee shall provide full support, assistance and cooperation to the Lessor then take all necessary steps/actions, to have the Vehicle released from the relevant authorities. In case Lessor assists in the release of the Vehicle from Confiscation, including payment of fines, charges, penalty, and fees imposed by relevant authority and all the costs and expenses incidental thereto. In the event the Lessee fails to provide its support and/or pay for the cost involved in having the Vehicle released from Confiscation, the Lessor shall have the right (at its sole discretion) to take necessary steps to secure the release of the Vehicle at its own expense. In such cases the Lessee shall promptly reimburse the Lessor for all cost/expense incurred for release of the Vehicle.

  4. Notwithstanding anything to the contrary stated herein, in case of Confiscation (i) if the Lease Term is about to expire prior to release of the Vehicle, the Lease Term will stand extended in accordance with the terms of this Agreement; and (ii) the Lessee shall not be entitled to terminate the Agreement, until the Vehicle has been duly released, fines/charges/conditions, if any, imposed for release of Vehicle by the relevant authorities has been paid or satisfied/fulfilled and necessary documentary evidence reflecting conclusive disposal of the matter is received by the Lessor.