9.Custody and Use of Containers as well as Related Charges

• The container equipment supplied by the Lessor shall only be used by the Lessee as the means of transportation agreed by the Parties or for other purposes. Except as otherwise agreed upon by the Parties, it shall only be used for road, railway, inland transportation or storage. If the container equipment supplied by the Lessor is used as a means of sea transportation, it must be approved by the Lessor in writing, and the Lessee shall insure the relevant containers “against all risks”. The compensation amount for total loss shall not be lower than the “Compensation Standard for Container Loss” specified herein. The scope of insurance shall cover individual average and general average, and the beneficiary of the insurance shall be the Lessor.
• From the time when the Lessee takes delivery of the containers to the time when the Lessor takes them back, the fees incurred in custody, survey, use, storage, and maintenance of the containers shall be borne by the Lessee. The Lessee shall bear the loss of any means of transportation, personnel or other goods or property and/or the loss of and/or liabilities to the Lessee or any third party during the lease term. The Lessor will not bear the mentioned liabilities for the lease of containers.
• “In-Service Charges” means all charges incurred in ports, depots, storage areas or otherwise arising out of the use of the containers, including but not limited to, customs charges, wharf fees, all taxes, fees, penalties, and charges levied on or in connection with the containers subsequent to delivery, including but not limited to, property, sales, use, and all further government levies, fees or charges, including but not limited to, fines, penalties, and interest. During the lease term, the Lessee will be responsible for, and shall pay directly, all In-Service Charges.
• The Lessor shall be entitled to transfer, mortgage, and guarantee the containers to a third party without influencing the use of the Lessee, provided that the validity of the Contract shall not be influenced and the obligations of the Lessor shall not be decreased.
• The Lessee will not, directly or indirectly, create, incur or permit to exist, any security interest, lien, charge or other encumbrance against the Containers. The Lessee, at its own cost and expense, will promptly pay, satisfy and otherwise take such action as may be necessary to keep the Containers free and clear of any such encumbrances.
• The Lessee shall, at its sole expense, comply with all conventions (including CSC), laws, regulations or orders of federal, state, foreign and local governments and agencies which in any way affect any Container or its use, operation or storage or which in any way affect this Lease, and shall be liable for all fines, penalties, fees and interest thereon for failure to comply. The lessor shall have no responsibility for compliance with any such conventions, laws, regulations or orders, including, without limitation, all such conventions, laws, regulations or orders as may relate to customs, transportation, handling, safety, labor regulation, repair and standards.
• The Lessee shall use each container so as to comply with all loading limitations, handling procedures and operating instructions, and to prevent excessive impact, unbalanced loading, and other hazardous conditions. The Lessee shall not use the Containers for storage or transportation of Hazardous Substances or other unsuitable contents which may corrode, oxidize, severely dent, puncture, contaminate, stain or otherwise damage the Containers or be in contravention of any Environmental Laws.
• All improvements, repairs, accessories, additions and relocationments made or attached to any Container by the Lessee become fixtures, part of the Container and the property of the Lessor without the Lessor incurring any liability therefore. The Lessee shall make no modifications, improvements, repairs or relocationments, nor attach accessories or additions to any Container, without the prior written consent of the Lessor, except as may be necessary for emergency purposes or to comply with other provisions of the Lease. Such written consent may include such conditions, including but not limited to later restoration of the Container to its prior condition, as the Lessor in its sole discretion may require.
• Without the written consent of the Lessor, the Lessee shall not alter the structure, color, plate or marks of the containers arbitrarily. It is not allowed to alter or replace the Lessor’s service logo. The Lessee may add its own logo, but it must ensure that the logo will comply with all relevant laws and regulations, and the Lessee shall take responsibility for removing it before the off-hire date.
• During the lease term, the Lessor shall be entitled to request the Lessee to issue a location report of the containers, and the Lessee shall issue the location report within 3 working days upon the Lessor’s request.
• Except as otherwise provided herein, the Lessee shall be liable for all Damage sustained by any Container prior to its redelivery to the Lessor, including, without limitation, costs associated with: (i) contamination from Hazardous Substances, (ii) removal and disposal of any Hazardous Substances and (iii) the removal and disposal of any Container, or components thereof, affected by Hazardous Substances. The Lessee shall not be responsible for such Normal Wear and Tear as may reasonably be expected between delivery of the Containers and their Redelivery Date, or for such Damage as is conclusively shown to have been caused by Lessor. The lessee shall not be responsible for reasonable “Normal Wear and Tear” incurred during the container lease term. “Normal Wear and Tear” means changes to the condition of any Container, such as light rust and random small dents and scratches on any side of the Container, consistent with proper treatment and use of a Container under conditions for which it was specifically designed by employing acceptable methods of handling, securing, ground storage, ship stowage and transport. “Normal Wear and Tear” shall not include changes to the condition of any Container which would have been prevented by routine washing and/or lubrication, spot painting, or other normal repair or maintenance, or changes affecting security, water tightness, weather-proof qualities, mechanical and/or electrical function of integral components, the integrity of design or structure, or regulatory, classification or certification requirements, or affecting the inside or outside dimensions or cubic content of a Container (whether or not such changes may threaten the safety of person or property). Man-made damage and pollution are not natural losses. The chemical pollution, oil pollution, and other residues in the container are cleaned or cleaned by the user during the use. The relevant cleaning costs are borne by the lessee. For containers loaded with used equipment, waste items, dangerous goods, and polluting materials, cleaning must be enforced, and these costs are also borne by the lessee.
• During the lease term, the Lessee shall make correct use of the containers to prevent accidental damage. If the containers are damaged, the Lessee shall take responsibility for repairing them, and send them to the repair factory. For the containers supplied by the Lessor in line with the standard of Cargo Worthy, the Lessee shall repair them based on the standard of Cargo Worthy; for the containers supplied by the Lessor in compliance with the standard of Institute of International Container Lessors (IICL), the Lessee shall repair them based on the standard of the IICL; for the containers supplied by the Lessor in line with other standards, the Lessee shall repair them based on the quality standards of the condition of containers confirmed at the time of taking delivery, and provide the Lessor with valid written materials about the repair content at the time of redelivery. If the maintenance cost of a single container is within the limit of the Damage Protection Plan (DPP), it shall be borne by the Lessor, and the part beyond the limit of the DPP shall be covered by the Lessee. After it is repaired, the Lessor shall complete the formalities of redelivery after passing the survey. The time cost of repair shall be borne by the Lessee. The Lessee may also entrust the Lessor to repair the container. The Lessee shall inform the Lessor of the damage of the leased container in a prompt manner, redeliver it to the container yard designated by the Lessor, and complete the formalities of redelivery the container. The Lessee shall clearly state that “it entrusts the Lessor to repair the container” as well as the damage condition on the Equipment Interchange Receipt and sign it for authentication. If the Lessor or its agent can confirm the maintenance cost when the Lessee redelivers the container, it shall be entitled to charge the Lessee or its agent the part that should be paid by the Lessee or its agent. If the maintenance cost can not be confirmed when the container is redelivered, the Lessor shall estimate the maintenance cost (including material and labor cost, loading and unloading cost, and transportation cost) based on the corresponding repair standard after the Lessee redelivers the container, inform the Lessee of the maintenance cost to be borne by the Lessee in writing, and issue an invoice to the Lessee, which shall pay the Lessor accordingly.
• Damage Protection Plan: the Lessee shall not bear the repair cost which is within the agreed amount in accordance with the quality standards for redelivery except for the “Normal Wear and Tear” caused during the lease term; if the repair cost of individual containers is beyond the agreed amount, the Lessee shall only bear the excess repair cost. Unless otherwise agreed upon by the Parties, the default standard of DPP is USD 50/container.
• During the lease term, if some or all containers are lost or damaged beyond repair, the Lessee shall inform the Lessor of the incident within 3 working days, and provide the Lessor with a detailed written report and valid supporting documents within 7 working days. In the meantime, the Lessee shall compensate the Lessor in line with the “Compensation Standard for Container Loss” herein.