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1.  THE RENTAL PERIOD:  The Rental Period shall cover all time consumed in transporting the equipment including the date of legal delivery to a public carrier for transit to the Lessee and upon return of the equipment including the date of legal delivery by such carrier to the Lessor, or if no public carrier is used, shall include the date upon which transit to the Lessee begins and the date upon which transit from the Lessee ends at the Lessor’s unloading point, providing, however, that when the equipment moves from one Lessee to another the rental period of the first shall not overlap that of the second.

2.  CALCULATIONS OF RENTAL CHARGES:  (a) MONTHLY RENTAL RATE based on 28 day (4 weeks) and does not exceed 176 (one hundred seventy-six) hours. 

(b) WEEKLY RENTAL RATES are for a minimum period of one week, from the day of commencement of the rental period up to but not including the same day in the following week and shall apply when the number of hours the equipment is operated in any one week does not exceed 40 (forty) hours. 

(c) DAILY RENTAL RATES are for a consecutive period of twenty-four hours or less in which the number of hours the equipment is operated shall not exceed 8 (eight) hours. 

(d) OVERTIME CHARGES Where equipment is operated in excess of the above stated hourly maximum such excess shall be charged at 1/176th of the monthly rate for each hour in excess of 176 worked in any 28 consecutive day period; 1/40th of the weekly rate for each hour in excess of 40 worked in any one weekly period; 1/8th of the daily rate for each hour worked in excess of 8 hours in any one day. 

(e) After the minimum monthly or weekly rental period has expired, the rental payable for a fraction of any succeeding period shall be the proportionate part of the applicable rental rate according to the number of calendar days in such fraction.  (f) Rental rates shall not be subject to any deduction for any non-working time during the rental period, nor because the Lessee returns the equipment to the Lessor before the expiration of such Guaranteed Rental Period.

3.  PAYMENT:  Rentals payable under this Agreement shall be paid monthly when the rental is at a monthly rate, otherwise weekly, and in either case shall be payable in advance at the address of the Lessor.  The rental is payable before delivery of the equipment to the Lessee of his (its) agent or carrier and on succeeding monthly or weekly dates thereafter running from the date of delivery.  Overdue payments shall bear interest at a rate equal to the prime rate of interest charged by the Bank of Montreal to its favoured commercial costumers plus two percent (2%), but the acceptance of this interest shall not be a waiver of the Lessor’s right hereunder stipulated to terminate this Agreement.

4.  LOADING, UNLOADING AND TRANSPORTATION:  The Lessor, at its own expense, shall load the equipment for transit to the Lessee and unload it upon return, and shall pay all demurrage charges accruing at its own shipping or receiving point.  The Lessee at his (its) own expense, shall do all other loading, unloading, installing, dismantling and hauling, and shall pay all demurrage charges accruing at its own shipping or receiving points.  The Lessee shall pay all transportation charges from and to the Shipper’s shipping and receiving points.  If shipping instructions are not furnished by the Lessee, the Lessor may ship the equipment in accordance with its own judgment.

5.  MAINTENANCE, OPERATIONS AND REPAIRS:  The Lessee declares that he or its employees understand the operation of the equipment.  The Lessee shall not remove, alter, disfigure or cover up any numbering, lettering or insignia displayed upon the equipment, and shall ensure that the equipment is not subjected to careless or needlessly rough usage, and shall at the Lessee’s own expense maintain and ultimately return to the Lessor the equipment and its appurtenances in good repair and operating condition.  Without limiting the generality of the foregoing, the Lessee shall, at the Lessee’s own expense, during the term of this rental pay the cost of:  (a) all fuel, oil and lubricants required to operate the equipment (b) all repairs, and replacement parts including labour charges, required to be made to the equipment in order to keep it in good repair and running order.

6.  (a) RUBBER-TIRED MACHINERY: The wear and cost of repairs of cuts and punctures is to the Lessee’s account and shall be payable to the Lessor on demand.  Tire wear shall be determined by the percentage of wear incurred during the rental period as fixed by independent appraisal to be obtained promptly by the Lessor following termination of the rental period.

(b) CRAWLER/TRACK TYPE EQUIPMENT:  Track wear in excess of 3% per month, on average, during the rental period shall be payable by the Lessee to the Lessor, on demand, at the end of the rental period.

(c) BUCKET WEAR AND BUCKET REPAIR:  Bucket wear and the cost of repairs to return the bucket to its original condition at the beginning of the rental period shall be payable by the Lessee to Lessor, on demand, at the end of the rental period.

7.  DAMAGE TO THE EQUIPMENT:  The Lessee agrees to indemnify the Lessor against all loss and damage to the equipment hereby obtained, during the rental period, based on the value of such equipment stated in the Details of Equipment.  The Lessor shall give notice to the Lessee as soon as possible of any claim of the Lessor under this paragraph.

8.  LIABILITY OF THE LESSEE:  The Lessee shall indemnify the Lessor against all loss, expense, penalties, damages, condemnations and law costs which the Lessor may suffer or may be required or condemned to pay for personal injuries (including death) and/or property damage suffered by any person by reason of the operation, handling, transportation or use of the equipment by or whilst in the hands of the Lessee or the latter’s employees, agents, or carriers.

9.  LIABILITY OF THE LESSOR:  The liability of the Lessor is limited to its express obligation to deliver the equipment in good condition and working order and the Lessor shall not be liable for any direct or indirect loss or damage of the Lessee arising from any subsequent failure of the equipment or from its lack of suitability for the work it may be required to perform.

10.  INSPECTION:  Before the equipment is loaded for transit to the Lessee, the Lessee may require an inspection thereof made by a competent authority, and if the equipment is proven not to be substantially in the condition required by this Agreement, the cost of the inspection shall be paid by the Lessor.  If the Lessee fails to have such an inspection made, the equipment shall be presumed for all purposes hereof to be in good condition and running order when delivered to the Lessee or his agent.  The Lessor shall have the right at any time to enter upon the premises or place where the equipment is located and shall be given free access thereto and afforded all necessary facilities for the purposes of inspecting the equipment.  Upon return of the equipment, the Lessor will, at the Lessee’s expense (payable on demand), complete a Return Inspection, an oil change, necessary filter changes and lubrication.

11.  TITLE:  Title to the equipment shall at all times remain in the Lessor and nothing contained in this Agreement shall be deemed to have the effect of conferring upon the Lessee any right or title whatsoever in or to the equipment other than that of a Lessee with an option to purchase.  The Lessee shall give the Lessor immediate notice in case of any of the equipment is levied upon, or from any cause becomes liable to seizure.

12.  TERMINATION OF AGREEMENT:  Should the Lessee fail to make any payment when it becomes due or become bankrupt, or overload the equipment or tax it beyond its capacity, or fail to maintain and operate or to return the equipment as provided by the Rental Agreement of violate any other provisions hereof, the balance owing under the Rental Agreement at the option of the Lessor shall immediately become due and payable and in addition, the Lessor may in its opinion terminate this Rental Agreement without notice to the Lessee, re-take possession of the equipment without becoming liable for trespass and recover all rentals due and full damages for any injury to and all expenses incurred in retaking possession of the equipment.

13.  INSURANCE:  The Lessee shall at his (its) own expense provide insurance in the name of the Lessor and Lessee in an amount satisfactory to the Lessor (including a loss payable endorsement) against liability for bodily injuries including death and or property damage arising from all use of the equipment and to protect the Lessor against all loss of or damage to the equipment to the value stated in the Details of Equipment.  Insurance shall be in effect from delivery date to date of redelivery to the Lessor.  Proof of insurance shall be delivered to the Lessor prior to the delivery date and on all renewal dates.

14.  BOND:  If requested by the Lessor, the Lessee at his (its) own expense, shall furnish a bond in form satisfactory to the Lessor in the amount of the value of the equipment as shown in the Details of Equipment to ensure fulfillment of the Agreement.

15.  SUB-LETTING AND ASSIGNMENT:  The Lessee shall not be entitled to sublet or assign any of his (its) rights under this Agreement or in or to any of the equipment hereby rented without the written consent of the Lessor previously obtained but the Lessor shall be entitled to assign his (its) rights hereunder or in and to any of the equipment hereby rented subject to the observance by the assignee of all the obligations of the Lessor hereunder.

16.  NOTICE:  Any notice to be given by one party hereto to the other shall be in writing and mailed by prepaid registered post to the other party at the address shown in this Agreement and such notice shall be deemed to have been received by the addressee on the juridical day next following that on which same has been so mailed.

17.  LIENS:  The Lessee shall not at any time suffer or permit any charge or lien whether possessively or otherwise to exist against the equipment and shall keep the equipment free of all taxes (including Municipal Taxes whether assessed in the name of the Lessor or Lessee), liens and encumbrances.  If the Lessee fails after demand of the Lessor to pay off any such lien charge or encumbrance the Lessor may pay the same and recover the amount of any such payment with interest of 24% per annum from the Lessee on demand.

18.  TIME OF THE ESSENCE:  Time is of the essence of this Rental Agreement.

19.  TAX POSITION:  The Lessor makes no representation to the Lessee as to the manner in which rents paid under this Agreement will be treated in calculating the Lessee’s Income Tax.

20.  DAMAGE:  A 12% charge is applied to all rental invoices for fire, theft or vandalism.  This can only be waived by following item 13 above.  A police report is required to verify any fire, theft or vandalism claims.  

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