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SPAGG NETWORK

Terms of rental marketplace service

SPAGG NETWORK RENTAL TERMS (Revised August/09)

Viewable on line at http://www.spagg.com

THESE TERMS APPLY TO ALL RENTALS IN ALL STATES

PRIVATE VEHICLE RENTAL: Carbuk LLC, doing business as Spagg Network (“Spagg”) operates a special vehicle rental program that allows its customers (each a “Renter”) to rent vehicles directly from vehicle owners (each an “Owner/Agent”). The program does not own or lease the vehicles that are rented to the Renters. Although Spagg facilitates transactions between Renters and Owner/Agents by providing a marketplace platform, it is not liable for any damages incurred by the Renter or the Owner/Agent with respect to the private vehicle rentals that it facilitates. Spagg advises Renters and Owner/Agents to take all necessary precautions to reduce the risk of renting a vehicle.

RENTAL RATES: Daily Rental rates are based on a 24 hour day. Spagg may impose time or cost minimums. Total costs/fees are composed of a rental fees, reservation fees and insurance fees. The rental period ends upon completion of the drop-off checkup list. The total costs/fees will be determined upon completion of rental and will include incidentals, such as gas, mileage and any damage to the vehicle not covered by insurance.

TICKET / SUMMONS DIRECT PAY POLICY: The Renter is responsible for payment of all summons (including parking tickets) that are dated during a time that the Renter was in possession of the rental vehicle. Payment for these must be made to the Owner/Agent. The Renter must NOT submit payment directly to issuing agency. Direct pay to the Owner/Agent is still required even if the Renter has already submitted payment to issuing agency. A $50 administrative fee will be added to the cost of each summons.

DRIVER REQUIREMENTS: The Renter must be legally allowed to drive in the country and state where the vehicle is rented. Spagg must have a valid credit card on file bearing the same name as the Renter's driver license, no exceptions. This card must be on file even if it is not used. Age requirements vary with location and individual vehicle. Renters without confirmed extended liability coverage from their insurance company or other source must purchase a travelers plan for coverage. Additional fees apply.

ADDITIONAL DRIVERS: Additional drivers will be charged a fee and must meet the same requirements as the primary driver.

GASOLINE POLICY: The vehicle must be returned with the same amount of gas as when the vehicle was released to the Renter. Re-fueling will be charged at local current gas rates, as determined by Spagg Management, plus a $10 refueling charge. A full tank upon the Renter taking delivery of the vehicle is neither routine nor implied. No reimbursements should be assumed by the Renter in case the amount of gas at return is higher than when the vehicle was released to Renter.

MILEAGE CHARGES: Mileage charges, applies to all rentals unless otherwise noted. The Renter will be provided with mileage limits and per mile rates prior to rental. Unlimited miles should not be assumed or expected. Unlimited miles are available on select vehicles and may incur an extra fee.

GEOGRAPHIC LIMITATIONS: Driving restrictions vary from location and specific vehicle. The Owner/Agent is required to note any driving restrictions during the vehicle intake interview.

APPROPRIATE USAGE OF VEHICLE: The Renter agrees (a) that the rented vehicle shall not be used to carry passengers or property for hire; (b) that the rented vehicle shall not be used to carry passengers other than in the interior or cab of the vehicle; (c) that the rented vehicle shall not be used to carry passengers in excess of the capacity thereof; (d) not to use the vehicle to push, propel or tow another vehicle, trailer or any other thing without the written permission of the Owner/Agent; (e) not to use the vehicle for any race or competition; (f) not to use the vehicle for any illegal purpose; (g) not to operate the vehicle in a negligent manner; (h) not to permit the vehicle to be operated by any other person without the written permission of the Owner/Agent; (j) not to carry animals without the authorization of the Owner/Agent; and (k) not to carry passengers, property or materials in excess of the rated weight carrying capacity of the vehicle.

FOREIGN LICENSES AND PERMITS: If the Renter is not a resident of the United States or Canada , they must possess a driver's license issued by their home country along with an international driving permit, issued in their home country.

DRIVER RECORD CHECKS: Spagg performs Drivers License checks on every Renter for each rental. A poor driving record, as determined by Carbuk, can result in cancellation of a reservation. If a driver license is suspended, canceled or revoked, the reservation fee will not be refunded.

PAYMENT METHODS: Spagg accepts debit and credit card payments, but a valid Credit Card must be on file in the primary driver's name. Renters are also required to use their credit card to pay at least part of their fees. This step provides additional identification security for all rentals.

SECURITY DEPOSITS: Spagg requires a security credit hold that is applied to the primary driver's credit card during the time period that the vehicle is in the Renter's possession and will be released shortly after the vehicle is successfully returned. The deposit amount will vary by vehicle and location. Insurance coverage has no effect on deposit amount. An authorization or deposit return may be held or delayed due to any financial liability not limited to summons, non accidental damages, loss of use, abuse or other liabilities.

RESERVATION FEE: Spagg requires a deposit to secure your rate and vehicle. This fee is non-refundable. If any false or inaccurate information from the Renter results in Spagg canceling the reservation, this deposit is still non-refundable.

REFUNDS: Refunds are only granted if Spagg fails to provide a safe and reliable vehicle on time. (See Appendix B)

REPRESENTATIONS AND WARRANTIES OF THE OWNER: The Owner/Agent hereby represents and warrants to the Renter that:

(i) the Owner/Agent has all power and authority to rent such vehicle to third parties; and

(ii) his/her vehicle is in sound and safe condition and free of any known defects which would affect its operation under normal use.

LOSS OR DAMAGE TO THE RENTAL VEHICLE: During the period that the Renter has possession of the rental vehicle, the Renter hereby agrees to take full and absolute responsibility for any loss or damage to the rental vehicle, even if caused by a third party, whether due to theft, fire, hail, flood, collision, vandalism, or any other cause or if the cause of the loss or damage is unknown, unless the damage is determined to be caused by vehicle defect. The Renter's extended coverage in most cases will cover the cost of damages. Whatever damages are not covered by the Renter's own insurance shall be paid out of pocket by Renter.

THIRD PARTY LIABILITY: The Renter hereby agrees to take full and absolute responsibility for any injury, damages and losses inflicted to or claimed by third parties from the vehicle during the rental period, unless such injury, damage or loss is determined to be caused by vehicle defect. The Renter's third party liability insurance coverage will cover such liabilities in most cases. Whatever injury, damages and losses that are not covered by the Renter's own insurance shall be paid out of pocket by the Renter. In addition, the Renter agrees to indemnify and reimburse the Owner/Agent for any costs associated with third party actions against the Owner/Agent.

REIMBURSEMENT OF LOSS EXPENSE: Any expenses incurred by Spagg as a result of a loss or damage to a vehicle can be billed, charged or collected in pursuant to the terms of this Agreement. A maximum administrative fee of $50 may also be added to this charge.

SINGLE EXTENTION POLICY: Spagg allows only one extension per rental and is limited to availability. Renters are advised to consider a definite number of days when requesting an extension as they will only have one opportunity for extension. Extension requests should be communicated to Spagg management as soon as practicable. All extensions must be validated by the Owner/Agent. Some vehicles and locations may not allow extensions. Extensions can be denied by management.

VEHICLE RETURN: Vehicles are due back at their agreed return time and location according to the rental agreement or drop off form. If the Renter has questions about the return procedure he/she may contact the Owner/Agent or Spagg. All late returns will incur additional fees. Spagg may interpret vehicles not returned until 5 hours after the due date and time as stolen vehicles, unless renter gives appropriate justification. Appropriateness of justifications is to be determined by Spagg's management.

LATE RATE: Renter will pay for each hour and/or any part of an hour in excess of a rental day until the vehicle is returned. Our late rate charge is $10.00 an hour. A 3-hour grace period is applied on the return day. Credit is not afforded for delays for extenuating circumstances or delays in traffic.

MECHANICAL BREAKDOWN OR MAINTAINCE: All work, repairs, adjustments, towing, cleaning, replacements, top offs, service or any other type of action or activity outside of driving or adding gasoline MUST be authorized by Spagg or the Owner/Agent. If any of the fore mentioned activities are performed without proper authorization, the primary Renter shall be financially responsible for the activity and any negative results (See Appendix A). In the event that the driver is in immediate danger then they MUST contact public assistance or emergency to remove them from the immediate danger. Once out of danger, the Renter must make contact with a live Spagg Representative or the Owner/Agent for further instructions.

ACCIDENTS: If a Renter is involved in a motor vehicle accident involving the rental vehicle, the Renter must abide by the following: call emergency services as necessary; ensure your own safety; move the vehicle, if possible, to a safe location (out of the intersection and moving traffic); obtain license plate numbers of all vehicles involved and do not apologize or admit fault. The Renter shall not sign anything except a police report. Call Spagg (not Vehicle Owner/Agent) as soon as possible with details.

CHANGES TO CONTRACT: All changes to contract terms, including rate changes or duration of the rental must be request to and agreed to by Spagg management. This contract cannot be changed or superseded by any oral agreement or written agreement without Spagg's involvement. Changes without Spagg authorization cannot be enforced.

INDEMNIFICATION: The Owner/Agent shall indemnify, defend, and hold harmless each of the Renter and Spagg and its affiliates, successors, and permitted assigns from and against all damages, liabilities, losses, costs, and expenses, including legal fees, arising or alleged to have arisen from the Owner/Agent's breach of any representation, covenant or warranty under this Agreement or any other term hereunder, negligent or wrongful act or omission, or failure to perform under the Agreement.

The Renter shall indemnify, defend, and hold harmless each of the Owner/Agent and Spagg and its affiliates, successors, and permitted assigns from and against all damages, liabilities, losses, costs, and expenses, including legal fees, arising or alleged to have arisen from the Renter's breach of any representation, covenant or warranty under this Agreement or any other term hereunder, negligent or wrongful act or omission, or failure to perform under the Agreement.

Third Party: This Agreement and all the terms hereunder are also meant for the benefit of Spagg, and Spagg use all applicable means to enforce any of the terms set forth herein.

APPENDIX A - Non Accident Related Breakdowns

Roadside emergencies can be stressful, scary and confusing. What people tell you or offer you during a roadside emergency can be misleading and financially entrapping. The following directions will maximize your safety and minimize any out of pocket expense.

The DO's ; Do call Spagg and press the option for vehicle assistance. (877)772-4428; Do have a pen and paper ready to write down important information. Do follow instructions given to you by the Spagg Representative. Do move the vehicle, if possible, out of moving traffic (don't worry about causing more damage to vehicle, or insurance claims, your safety comes first). Do advise Police that you already have a tow truck on the way.

The DON'Ts ; Don't call friends or relatives until you are back on the road; Don't let a tow truck driver or service personnel touch the vehicle until they speak to Spagg for authorization (they may NOT be there to help you, but only there to make money); Don't give the keys to anyone except persons authorized by Spagg or the Police; Don't sign anything unless directed by Police or by a Spagg representative.

According to the Spagg rental terms, a failed vehicle is a claim against our reliability guarantee (See Appendix B). Spagg contracts its own roadside service that is made available to all vehicles, on all rentals. If any service is used outside of our roadside network, then the primary Renter will be responsible for payment to the service provider.

Many towing companies have ways of unfairly charging you for services. Towing companies DO NOT have the right to move a vehicle unless they are granted permission from the Owner/Agent, directed by police or the vehicle is breaking a law. If you are NOT prepared to pay for towing services, then DO NOT allow a towing company that has not been authorized by Spagg to assist you.

Towing Companies may use tricks to get you to authorize a tow, they may ask you for the keys which would imply an authorization with or without a signature. They may try to convince you that you are in great danger, or that the vehicle rental company will pay for the tow.

Spagg already has breakdown coverage and procedures. Failure to follow our procedures and directions can result in extra fees from unauthorized roadside services and a delay in receiving a replacement rental vehicle.

APPENDIX B - Safety and Reliability Guarantee

Safety and Reliability as it relates to Spagg is the assurance that your rental vehicle will arrive in a safe and reliable condition and will remain in a safe and reliable condition throughout the duration of the rental. Renters are expected and obligated to drive safely with due caution of road conditions, traffic conditions and all other appropriate safety precautions as it relates to use.

A claim against safety must prove that a vehicle posed an immediate threat to life, damages or injury. A complaint of a vehicle "not feeling safe" or the belief that a vehicle or equipment "might fail" is insufficient to warrant a claim on the Safety Guarantee. If a Renter can show that a vehicle does not meet the safety standard as defined above, they will be entitled to ONLY one of the following 3 options: (1) replacement of rental vehicle provided by Spagg plus credit for lost time; (2) return of rental vehicle with refund of lost days; and (3) payment or reimbursement of any authorized repair or service (Spagg must authorize the repair and service center where the repair is being done).

The Safety and Reliability Guarantee will not cover, fund, refund or reimburse expenses for hotels, meals, airline tickets, lost appointments, other vehicle rentals, damages to personal property, lost wages, lost time, unauthorized tows, unauthorized repairs, unauthorized PM's, or any unauthorized maintenance of any kind or any other inconvenient losses. OTHER THAN AS SET FORTH ABOVE, SPAGG SHALL IN NO EVENT BE LIABLE FOR ANY CONSEQUENTIAL OR INCIDENTAL DAMAGES OF ANY NATURE, INCLUDING WITHOUT LIMITATION, DAMAGES FOR PERSONAL INJURY OR DAMAGES TO PROPERTY, AND HOWEVER OCCASIONED, WHETHER ALLEGED AS RESULTING FROM ANY BREACH BY SPAGG.

 
 
 
 
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