Terms and Conditions — Lions Gate Luxury Auto Rentals

KRENUS HOLDINGS INC dba LIONS GATE LUXURY AUTO RENTALS

TERMS AND CONDITIONS

Rental Agreement.

The Renter agrees to rent from Lions Gate Luxury Auto Rentals (“LIONS GATE") the vehicle as described on the Vehicle Rental Agreement (the “Vehicle”) for the dates listed therein (the “Rental Period”) subject to the terms and conditions contained herein.

Initial Payment.

The Renter authorizes Lions Gate to charge the full rental fee balance to their credit card on file at the time of entering into this Agreement (the “Initial Payment”).

Security Authorization.

In addition to the Initial Payment, the Renter understands and agrees that LIONS GATE has the right to also place a pre-authorization of $2,500 to $10,500 (Depending on the type vehicle rented) on the Renter’s credit card at the time of entering into this Agreement (the “Security Deposit”) will be used to cover any additional fees or damages the Renter incurs during the Rental Period.

Additional Fees.

The Renter understands and agrees that they will be liable for any additional charges, including but not limited to the following:

i. Optional services, mileage, and Loss Damage Waiver, if applicable;

ii. Surcharge for authorized additional drivers;

iii. Applicable taxes;

iv. $150.00 charge per hour for late return of the Vehicle;

v. Theft and damage costs, specialist cleaning charges, loss of use, diminution of the Vehicle's value, and costs to enforce such charges including administrative fees for processing any claims and legal expenses arising from any prohibited conduct under the terms of this Agreement;

vi. All fines, penalties, traffic and/or parking violations, court costs, towing charges and other expenses relating to the Vehicle assessed against LIONS GATE or the Vehicle during the Rental Period;

vii. All expenses LIONS GATE incurs due to Renter’s failure to return the Vehicle including costs in locating and recovering the Vehicle;

viii. Failure to replenish fuel to same level as received will result in a charge of $20 plus the price of fuel at a cost of $3.00/litre.

Impoundment.

ln the event the Vehicle be impounded by the police as a result of any misconduct of the Renter, or in violation of this agreement, the Renter will be liable to pay LIONS GATE loss of use for the time the Vehicle is not accessible to LIONS GATE. The rate will be 100% of the daily rental rate for the first 7 days and 50% of the daily rental rate for any days thereafter.

Late Payment.

Any non-payment of fees or fines will bear interest at a rate of 18% per annum, or the maximum amount allowed by law, for any monies which remain owing after termination of the Rental Period.

Authorized Drivers.

The Renter and any other party to this Agreement are the only individuals permitted to operate the Vehicle (“Authorized Driver”). Authorized Drivers must:

i. Be 25 years of age or older;

ii. Sign this Agreement;

iii. Hold a current valid driver’s license to operate the Vehicle; and

iv. Are not suffering from any physical disability or defective vision or hearing which may impair driving abilities. Any other drivers are prohibited from operating the Vehicle.

Restrictions on Use.

The Renter agrees they will not:

i. Permit the Vehicle to be driven by any person who is not an Authorized Driver;

ii. Allow anyone to smoke inside the car;

iii. Drive the car into the US unless otherwise permitted by LIONS GATE; or

Operate the Vehicle or permit it to be operated:

a. In violation of any laws, including but not limited to: driving under the influence of alcohol, narcotics, intoxicants, or drugs, used with or without a prescription;

b. In breach of motor vehicle driving rules and regulations;

c. To commit a criminal act or for an illegal purpose;

d. For any race, test, or contest;

e. For the transport of more passengers or goods than the maximum allowable for the Vehicle or to carry hazardous or explosive substances of any kind;

f. To be driven by any person who does not hold a current valid driver's license;

g. To be driven or parked on roadways not regularly maintained, or on any roads, beach, driveway, or surface likely to cause damage to the Vehicle;

h. To push or tow any other vehicle; or

i. To transport any animal in the Vehicle (with the exception of guide dogs for visually impaired people).

This is a material term of the Agreement and any violation of these Restrictions on Use will be deemed to be a material breach. In the event of any such breach, LIONS GATE will be entitled, at its discretion, to terminate this Agreement forth with and the right to hold back any amounts from the Security

Deposit.

The Renter agrees that if they commit a breach of this agreement, LIONS GATE will have the authority to charge the credit card up to the full pre-authorized amount if required to account for any loss of use or loss of business.

Liquidated Damages for Multiple Breaches.

In circumstances where the Renter receives 2 or more traffic fines or penalties or any combination of the activities listed in this agreement, this will be deemed to be a material breach of the Agreement, and LIONS GATE will be entitled, at its discretion, to terminate this Agreement forthwith and charge the Renter’s credit card $1,000 for each violation in addition to and not in substitution of the Security Deposit amount.

Condition of Vehicle.

The Condition of Vehicle will be given documented through photos by LIONS GATE immediately prior to the Rental Period. The Renter acknowledges that they will examine the Vehicle prior to taking delivery of the rental vehicle and will take their own time-stamped photos prior to the Rental Period. LIONS GATE makes no warranty, express or implied, course of dealing, course of performance, usage of trade or otherwise, and expressly excludes and disclaims all warranties and representations of any kind, including any warranties of merchantability and fitness for a particular purpose.

Return of Vehicle.

The Renter shall return the Vehicle to the agreed upon return location on the date listed on the Vehicle Rental Agreement (the “Return Date”) and in the same condition as the Renter received it, except for normal wear and tear. If the Vehicle is not returned on the Return Date, LIONS GATE reserves the right to take any action necessary to regain possession of the Vehicle.

Insurance.

LIONS GATE provides third-party liability insurance in the amount of $5,000,000 included in the daily rental rate. In the event the Renter elects to use its own automobile or credit card insurance to cover claims not covered by LIONS GATE third party liability coverage, the Renter hereby grants and appoints to LIONS GATE a limited power of attorney: (a) to present insurance claims to Renter’s insurer and/or credit card if (i) the Vehicle is damaged, lost or stolen, and where the Renter fails to pay for any such damages, or (ii) any liability claims against LIONS GATE that arise in connection with this Agreement that are not already indemnified by the Renter; and (b) to endorse Renter’s name for LIONS GATE to receive insurance or credit card payments directly for any such claims, liabilities or rental charges.

Optional Loss Damage Waiver.

In addition to the insurance coverage the Renter has the option to purchase Loss Damage Waiver from LIONS GATE (“LDW”). LDW is not insurance but a waiver of LIONS GATE right to collect from the Renter or other Authorized Driver(s) for the total loss or damage to the Vehicle. If the Renter purchases LDW, LIONS GATE agrees, subject to the actions that invalidate LDW listed below, to contractually waive the Renter's responsibility for all or part of the cost of damage (LESS Deductible) to loss or theft of the Vehicle or any part or accessory and any related costs regardless of fault or negligence, up to the full value of the vehicle including administrative and loss of use fees less the applicable deductible. Notwithstanding the foregoing, LDW does not provide protection for lost keys or key fobs, or any optional services. The following will invalidate any LDW plan:

i. If the Vehicle is damaged when used or driven in violation of this agreement (see Restriction on Use);

ii. If Renter misrepresents facts to LIONS GATE pertaining to rental, use, or operation of the Vehicle;

iii. If Renter fails or refuses to provide LIONS GATE, police, or other authorities with a full report of any accident or Vandalism involving Vehicle or otherwise fails to cooperate with LIONS GATE, police, or other authorities in the Investigation of any accident or vandalism; or

iv. If the Vehicle is stolen and Renter fails to:

a. Inform LIONS GATE as soon as possible;

b. Return the original ignition key of key fob; or

c. Cooperate fully with LIONS GATE, police or other authorities in all matters connected with the investigation of the theft.

Renter’s Liability.

The Renter is solely responsible for any and all costs not covered by insurance, the deductible (if applicable), or where their actions invalidate the LDW.

Repair or Loss and Reporting to Police.

The Renter will not service or repair or replace any parts or accessories without the consent of LIONS GATE. The Renter shall immediately inform LIONS GATE of any damage to the Vehicle. The Renter will be responsible for any loss or damage to Vehicle and loss of use, diminution of the Vehicle’s value caused by damage to it or repairs to it and any missing equipment. In the event Renter is in an accident, has an incident in Vehicle or if the Vehicle is subject to theft or vandalism, the Renter shall report the accident or incident to LIONS GATE as soon as practicable.

GPS-Tracking.

The Renter acknowledges that the Vehicle is equipped with a geo-location system used to locate the Vehicle. LIONS GATE has the right to access the Vehicle’s GPS in the event it is:

i. Stolen;

ii. Not returned by the Renter;

iii. Involved in an accident, or;

iv. Damaged because of a deliberate breach (se Restriction on Use).

Termination.

This Agreement will terminate on the Rental Date unless otherwise terminated earlier by LIONS GATE. In the event LIONS GATE terminates the Agreement before the Return Date, and if the Renter is not in default of any term of this Agreement, the Renter may be entitled to a pro rata refund of the rental fee Balance for the days not used.

Indemnification and Liability.

Regardless of insurance coverage, the Renter shall indemnify LIONS GATE from and against any claim, demand, cause of action, loss or liability (including attorney’s fees and expenses of litigation) for any property damage or personal injury arising from Renter’s use of Vehicle by any cause, except to the extent caused by LIONS GATE's gross negligence or willful misconduct. In no event shall LIONS GATE be responsible for any indirect, special or consequential loss or damages arising from Renter’s use of Vehicle, including but not limited to loss profits and loss revenue, even if informed of such damages. The provisions of this Article shall survive the termination of this Agreement with respect to any claims or liability accruing before such termination.

Ownership.

LIONS GATE will always retain ownership and title to the Vehicle. At no time will the Renter act as an agent for LIONS GATE or be authorized to bind, encumber, transfer, chattel or sell the Vehicle.

General.

This Agreement shall be construed in accordance with the laws of the Province of British Columbia. Failure to enforce any provision of this Agreement shall not constitute a waiver of any term hereof. This Agreement contains the entire understanding relating to the subject matter hereof and prevails over any prior or

contemporaneous, conflicting or additional communications. This Agreement can only be modified by a written agreement between the parties. This Agreement is binding upon and for the benefit of the parties and may not be assigned by the Renter without the prior written consent of LIONS GATE. Any attempt to do so shall be a material default of this Agreement and shall be void.