RENT. Lessee agrees to pay Lessor the rental payments as set forth on the Rental Agreement page of this lease. Lessee shall pay an amount equal to the rent for the first rental term in advance (no less than one week’s rent). Subsequent rental payments shall be made within ten (10) days of mailing of an invoice from Lessor to Lessee.

INSPECTION AND USE. Lessee acknowledges that it shall inspect the Equipment prior to use and notify Lessor of any defects. Lessee represents that it understands proper use of the Equipment and that the Equipment shall only be used by persons competent in its operation. Lessee shall use the Equipment in compliance with all laws, rules and regulations of the jurisdictions wherein the Equipment is located,  including any license, permit or permission required from any governmental or regulatory agency. Lessee shall not make any modifications,  changes or additions to the Equipment without Lessor’s prior written consent. If the Equipment becomes unsafe or in disrepair. Lessee shall  discontinue use and notify Lessor. In the event that such condition is the result of normal use. Lessor will replace such Equipment with similar  Equipment in good working order, if available. Lessor is not responsible for any incidental or consequential damages arising out of delays  caused by such condition or arising out of Lessee’s use of the Equipment.

DISCLAIMER OF WARRANTIES. Lessor has not made and does not make any representations, warranty, promise, or covenant, express or implied, as to the condition, quality, durability, capability, function, performance, or suitability of the equipment, its merchantability, or its fitness for any particular purpose.

PROHIBITED USES. Use of the Equipment in violation of this Lease shall constitute a breach of this Lease, including without limitation:
(i) use for illegal purpose or in an illegal manner,
(ii) use when the Equipment is in bad repair or is unsafe,
(iii) improper or unintended use or misuse,
(iv) use by anyone other than Lessee or its employees, without Lessor’s prior written consent, and
(v) use at any location outside of Canada without Lessor’s prior written consent.

INDEMNIFICATION. Lessee Agrees to indemnify and hold Lessor harmless from and against all losses, damages, injuries, claims, demands and expenses, including attorneys’ fees, of any nature, arising out of the use, misuse, condition, repair, storage, return or operation of any of the Equipment while out of Lessor’s possession.

ASSIGNMENT. Lessee shall not assign, sublet, lend, transfer, pledge or hypothecate this Lease or the Equipment without Lessor’s Prior written approval.

RETURN OF EQUIPMENT. Upon expiration or earlier termination of this Lease, Lessee, at its sole cost and expense, shall return the Equipment to Lessor in good repair and working order, reasonable wear and tear excepted, by delivering said Equipment to the address specified by Lessor. If the Equipment is not received by Lessor on the day of termination of this Lease, Lessee shall pay the per diem charge specified on  page one of this Lease, until such Equipment is received by Lessor. Any extension of the term of this Lease must be agreed upon by the parties  in writing.

INSURANCE. During the term of this Lease and until return of the Equipment to Lessor, Lessee shall provide, maintain, and pay for insurance against the loss, theft or damage of the Equipment for the full replacement value of the Equipment and shall maintain public liability and property damage insurance, all in amounts and forms satisfactory to Lessor and naming Lessor as the loss payee and additional insured.

TITLE. This Lease is not a contract of sale. Title to the Equipment shall remain in Lessor and all replacement parts shall become the property of Lessor.

REPOSSESION AND COLLECTION COSTS. Lessor shall be entitled to inspect the Equipment during Lessee’s regular business hours. Upon any breach of this Lease, including a failure to pay rent, Lessor may terminate this Lease by written notice to Lessee, take possession of and remove the Equipment, wherever such Equipment is located, without any liability for any claim, damage, or trespass arising from such removal. Lessee agrees to pay all reasonable cost of collection, including attorneys’ fees, court costs and other expenses incurred by Lessor in  enforcing Lessor’s rights under this Lease.

RISK OF LOSS AND DAMAGE. Lessee shall bear the entire risk of loss, theft, damage or destruction of the Equipment for any reason whatsoever. Lessee agrees to pay for any damage to or loss of the Equipment, regardless of cause, reasonable wear and tear excepted, while the Equipment is out of the possession of Lessor. Accrued rental charges cannot be applied against the purchase or cost of repair of any damaged or  lost Equipment. Equipment damaged beyond repair will be paid for at its fair market value when rented. The cost of repairs shall be paid for by  Lessee, whether performed by Lessor, or at Lessor’s option, by others.

SEVERABILITY. The provisions of this Lease shall be severable so that the invalidity, unenforceability or waiver of any of the provisions shall not affect the remaining provisions.

MERGER. This Lease is the final expression of the parties’ agreement and understanding and is a complete and exhaustive statement.

PURCHARE OPTION. The Lessee purchase the equipment from the lessor under the terms and conditions outlined in “Schedule B” attached.