D & D Oilfield Rentals (the Lessor) hereby leases to the party named on the Rental Agreement (the Lessee) or its agents, the drill pipe, tools and/or other equipment described in the Rental Agreement upon the terms and conditions herein after set forth and as described in the Rental Agreement:
Term:
1) The Rental Agreement shall become effective from the date of delivery/pickup of the equipment to the Lessee or its agents therein and shall remain in full force and effect for a period determined between the Lessor and the Lessee.
2) All equipment outlined in the Rental Agreement shall be returned to D&D Oilfield Rentals by the Lessee upon completion of project, at the place from which it was originally obtained.
3) The Lessee agrees that the Lessor can terminate the Rental Agreement at any time without notice to the Lessee should the Lessee not adhere to the Terms and Conditions of the Agreement. If such event should occur the Lessee agees to return all equipment noted in the Rental Agreement immediately on demand. Any damages, repairs or replacement costs due to the use/misuse of any equipment noted in the Rental Agreement shall be the sole responsibility of the Lessee or its agents.
4) The Lessor exercises extreme precaution to keep all equipment in perfects condition but does not gauruntee it.
Rent:
1) The rental rate for equipment outlined in the Rental Agreement shall be the amount set forth in D&D Oilfield's Brochure. All charges are due and payable net 30 days following the date of the invoice. Interest will be calculated on past due accounts at the maximum rate allowable by law.
2) Well conditions, which prevent satisfactory operations of the equipment, do not relieve the Lessee of its responsibility for rental charges.
Transportation:
1) All transportation charges shall be borne by the Lessee.
Use and Risk:
1) All pipe and tools are run at the Lessee's risk.
2) The Lessee agree that the Lessor shall not be liable for any damage, whether subsurface or not, to any property of the Lessee or any property upon which the Lessee is lawfully in occupation of, caused by such drill pipe, tools and other equipment and whether or not caused by the sole negligence of the Lessor.
3) The Lessee hereby agrees to hold harmless and to indemnify the Lessor and its employees from and against all claims by any person, Firm or Corporation for any personal injuries or property damage whether subsurface or not and whether or not caused by such equipment or by the sole negligence of the Lessor.
4) All equipment lost or damaged beyond repair will be paid for by the Lessee at the new replacement cost including any expense incurred by the Lessor due to currency exchange rate differences. All damaged equipment which may be repaired will be repaired and paid for by the Lessee including any service charges to service valves and other equipment and any third party expenses incurred by the Lessor in repairing and servicing the equipment.
5) Any damaged equipment that is being repaired will be charged at half rental rate until it is ready for service and any equipment that is lost by the Lessee will be charged at full rental rate until the same is replaced.
Maintenance:
1) The Lessee assumes all responsibility for equipment while out of possession of the Lessor and agrees to return such equipment to the Lessor in such condition as it was when initially rented. Normal wear and tear from reasonable use thereof is expected.
Applicable Law:
1) This lease is made and shall be governed by the laws of the Province of Alberta and the parties hereto acknowledge and agree in the event of any dispute to submit to the jurisdiction of the courts of Alberta.
Entire Agreement:
1) The said Rental Agreement and these annexed terms, together with D&D Oilfield's Brochure constitute the whole of the agreement made between the Lessor and Lessee and no variation, alteration or modification of its terms shall be accepted unless agreed to by all parties in writing.