Motor Vehicle Finance Agreement - DOC

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Motor Vehicle Finance Agreement - DOC Powered By Docstoc
					MOTOR VEHICLE AGREEMENT – (Operating LeaseVehicles QUT)

THIS AGREEMENT is made on the                                     day of            200
BETWEEN:

       QUEENSLAND UNIVERSITY OF TECHNOLOGY as described in item 1 of the
Schedule to this Agreement ("the Schedule") of the one part;

AND

          THE EMPLOYEE as described in item 2 of the Schedule of the other part.

WHEREAS:

A.        Queensland University of Technology and the Employee have entered into an
          arrangement (the “Arrangement”) under which Queensland University of Technology
          may from time to time, at its absolute discretion, offer to provide the Employee with
          Benefits which may result in the Employee's Salary being reduced.

B.        In terms of the Arrangement, Queensland University of Technology may offer to provide
          the Employee with a motor vehicle.

C.        In the event the Employee is provided with a vehicle, the Employee agrees to take the
          vehicle on the terms and conditions contained herein.

WHEREBY THE PARTIES AGREE AS FOLLOWS:

1         CONSTRUCTION

1.1       Definitions

          In this Agreement unless the context otherwise requires:

          “Benefits” means any non cash benefit and cash payment (other than the Employee's
          Salary) made or expected to be made for the benefit of the Employee and any cash
          payment made or expected to be made to the Employee by way of reimbursement of
          expenses incurred or expected to be incurred by the Employee.

          “Commencement Date” means the date specified in item 3 of the Schedule.

          “Expiry Date” means the date specified in item 4 of the Schedule.

          “Employee's Salary” means the Employee's remuneration by way of regular periodical
          cash payments subject to PAYE tax.

          “Salary Sacrifice” means that part of the Employee's Salary set aside to cover the
          payment of the Benefits and the Vehicle Costs.

          "Vehicle Costs" are the costs associated with the Vehicle as specified in Clause 4.

          “Vehicle Supplier” means the person or entity specified in item 5 of the Schedule.


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         “Term” means the period commencing on the Commencement Date and ending on the
         Expiry Date or such earlier date as is provided for in Clause 6.

    1.2 Interpretation

         In this Agreement unless the context otherwise requires, the singular includes the plural
         and vice versa and in particular any word or expression defined in the singular shall have
         a corresponding meaning when used in the plural and vice versa.


2         EMPLOYEE'S OBLIGATIONS AND RESPONSIBILITIES

          2.1       Upon accepting an offer to be provided with a Vehicle under this Agreement, the
                    Employee agrees and covenants with Queensland University of Technology that
                    he or she will:

                    Ensure that the Vehicle remains registered in the name of the Vehicle Supplier or
                    Queensland University of Technology if obtained through the QUT Executive
                    Vehicle Scheme as specified in item 6 of the Schedule at all times and that the
                    Employee will not allow the Vehicle to be used for any purpose for so long as it
                    is not so registered;

                    Ensure that the Vehicle is regularly serviced in terms of the manufacturer's or, if
                    prescribed, the Vehicle Supplier's requirements, and that repairs or any faulty
                    parts are promptly replaced. The Employee acknowledges that any replacement
                    parts are to remain affixed to the Vehicle and are the property of the Vehicle
                    Supplier;

                    Save for fair wear and tear not subject to driver abuse, keep the Vehicle in the
                    same condition as at the Commencement Date and properly cleaned, serviced and
                    maintained during the Term;

                    Not without the prior written consent of Queensland University of Technology,
                    make any alteration or addition to the Vehicle other than such alterations and
                    additions in the course of servicing and maintaining the Vehicle; and keep the
                    Vehicle in a roadworthy condition.

          2.2       The Employee agrees:

                    To indemnify and keep indemnified Queensland University of Technology
                    against any claims (contingent or otherwise), suits, actions, losses, damages,
                    judgements, costs, fines, penalties, interest or expenses incurred in relation to the
                    Vehicle including without limitation:

                    Any breach of this Agreement;

                    The cessation of any agreement or arrangement with the Vehicle Supplier; any
                    breach of relevant road traffic legislation, including without limitation, traffic
                    infringement fines and penalties including parking, speeding and red light camera
                    fines; and


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                    Any fringe benefits tax liability arising from or associated with the Vehicle being
                    provided to the Employee.

          2.3       The Employee acknowledges that it is his or her sole responsibility to seek
                    independent advice on the appropriateness of the Arrangement before accepting
                    an offer to take a Vehicle.

          2.4       The Employee acknowledges and agrees that neither Queensland University of
                    Technology, its officers, employees, suppliers, contractors or agents can be held
                    responsible should the taking of a Vehicle prove at any time to be inappropriate
                    to the Employee's circumstances.

3         VEHICLE USE

         For motor vehicles on an operating lease, it is agreed that during the Term Queensland
         University of Technology has right of use of the vehicle and may provide the employee
         with private use of a vehicle. Option B.

4         VEHICLE COSTS

          4.1       The Employee acknowledges that the Vehicle costs include, without limitation,
                    all maintenance and running costs of the Vehicle (including registration fees,
                    insurance premiums, repairs, restoration works, servicing and fuel) incurred
                    during the Term.

          4.2       The Employee agrees that he or she is responsible for all and any fringe benefits
                    tax liability arising from or associated with the Vehicle, including any fringe
                    benefits tax liability arising from the disposal of the Vehicle if applicable.

          4.3      The Employee agrees to pay all administrative costs and charges incidental to the
                   provision of the Vehicle.

5         EMPLOYEE'S INSURANCE OBLIGATIONS AND RESPONSIBILITIES

          5.1       The Employee acknowledges and accepts that the safe custody of the Vehicle is
                    his or her responsibility.

          5.2       The Employee agrees to provide Queensland University of Technology with all
                    information required by Queensland University of Technology to satisfy the
                    requirements of the motor vehicle insurer nominated by Queensland University
                    of Technology and declares that all information so provided is true and correct.

          5.3       The Employee agrees to follow the accident procedures and police reporting
                    guidelines advised from time to time by Queensland University of Technology,
                    and to advise Queensland University of Technology immediately of any damage
                    to the Vehicle.

          5.4       The Employee acknowledges that he or she has been provided with a copy of the
                    insurance policy document except where the vehicle is provided through the
                    QUT Executive Vehicle Scheme and that consistent with general insurance


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                    company practices, hereby acknowledges that the Vehicle's insurance cover does
                    not cover the exclusions contained in the said Policy including, without
                    limitation:

                    Claims arising whilst driving the Vehicle under the influence of or when
                    impaired by any drug or intoxicating liquor;

                    Claims arising from using the vehicle in an unroadworthy or dangerous
                    condition;

                    Or claims arising from any unlicensed person driving the vehicle with the
                    Employee's consent.

                    Full particulars of the above and all other exclusions are set out in the policy
                    document.

          5.5      In the event of an insurance claim, the Employee agrees that he or she is liable for
                   the nominated excess as determined by the insurer except for vehicles provided
                   through the QUT Executive Vehicle Scheme where the employee’s liability
                   covers damage or theft when the vehicle is being used for non-business purposes.


6         TERMINATION

          6.1      The Agreement shall commence on the Commencement Date and shall continue
                   until:

                   Terminated by the Employee giving Queensland University of Technology one
                   month's notice in writing; or terminated by Queensland University of Technology
                   should the Employee be guilty of any breach of these Terms and Conditions; or
                   the Employee ceases employment with Queensland University of Technology.

          6.2       Queensland University of Technology may terminate the Agreement with effect
                    on and from the date the finance company receives written notice from
                    Queensland University of Technology that the Employee has ceased to be
                    employed, engaged or on unpaid leave by Queensland University of Technology
                    for whatever reason.

          6.3       In the event of unpaid leave, the employee will need to ensure that sufficient
                    salary sacrifice funds are available to meet all costs associated with Queensland
                    University of Technology supplied vehicle(s) during periods of unpaid leave, for
                    whatever reason the leave arises. Without prejudice, these costs will include
                    lease, registration, insurance, maintenance and where necessary, storage, disposal
                    and transport costs. Where there are insufficient funds, Queensland University of
                    Technology has the option to cease providing the benefit except for vehicles
                    provided through the QUT Executive Vehicle Scheme.

          6.4       With vehicles provided through the QUT Executive Vehicle Scheme, for periods
                    of unpaid leave in excess of six weeks, retention of the motor vehicle by the staff
                    member is at the discretion of the head of the organisational unit, depending on
                    the business use requirements of the unit. If the organisational unit requires sole


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                    use of the vehicle during leave in excess of six weeks then the organisational unit
                    will pay all lease and maintenance costs for this period and the staff members
                    salary sacrifice payments will temporarily cease.

          6.5       Notwithstanding the above, Queensland University of Technology may terminate
                    the Agreement at any time should changes in any legislation or the enactment of
                    any new legislation impose on Queensland University of Technology financial or
                    other obligations in relation to the Arrangement which are, in Queensland
                    University of Technology's sole discretion, unacceptable to Queensland
                    University of Technology.

          6.6       Upon termination, the Employee will deliver the Vehicle back to Queensland
                    University of Technology in the same condition (fair wear and tear excepted) as
                    at the Commencement Date.

7         GENERAL

          7.1      Notices. All notices and consents required or permitted to be given under this
                   agreement must be in writing and given by personal service, prepaid postage,
                   facsimile transmission or telex transmission at such address as either party may
                   designate to the other by written notice.

          7.2      Assignment. Neither this agreement nor any rights or obligations hereunder may
                   be assigned or otherwise transferred by either party without the prior written
                   permission of the other.

          7.3       Governing Law. This agreement is governed by the laws of the State/Territory set
                    out in item 6 of the Schedule and the parties submit to the jurisdiction of that
                    State/Territory.

          7.4       Modification. This Lease may be modified only in writing signed by duly
                    authorised persons for both parties.

          7.5       Severability. If any provision of the agreement should be held to be invalid in any
                    way or unenforceable, the remaining provisions shall not in any way be affected
                    or impaired thereby, and this agreement shall be construed so as to most nearly
                    give effect to the intent of the parties as it was originally executed.

          7.6       No Merger. The obligations of the Employee survive the termination of this
                    agreement and shall ensure for the benefit of and enforceable by Queensland
                    University of Technology.




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IN WITNESS WHEREOF the parties have hereunto set their respective hands on the day and the
year first above written.


 SIGNED FOR AND ON BEHALF }
 QUEENSLAND            UNIVERSITY OF
 TECHNOLOGY BY ________________in }…………………………………………….
 the presence of: Witness




 SIGNED         by    the     Employee }
 _____________________________in   the
 presence of:Witness                   }…………………………………………….




SCHEDULE
Item 1              Queensland University of Technology
                    Address: 2 George Street Brisbane 4000.
                    A.B.N. 83 791 724 622……………………..


Item 2              the Employee
                    Name: ………………………………………….                                 [employee name]
                    Address:…………………………………………                                [employee address]


Item 3              Commencement Date                    /        /200


Item 4              Expiry Date                          /        /200…….
Item 5              Vehicle Supplier
                    Name:…………………………………..                                    [supplier’s name]
                    Address:…………………………………                                   [supplier’s address]
                    A.B.N. …………………………………...


Item 6              Governing Law                 Queensland




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