Rentals Terms and Conditions for Rice Resource Technologies Inc. (Rice)

1. Rental Payments

  • The Lessee agrees to pay to Rice, without set off or deduction, the rental payments in the amounts and at the times described on the Rental Order.

2. Interest

  • Interest on overdue rental payments shall be payable at the rate of 12% per month (18% per annum).

3. Acceptance

  • The Lessee shall inspect the Equipment and notify Rice of any damage or defects within 24 hours of the commencement date in paragraph 2, otherwise the Lessee shall be conclusively deemed to have accepted the Equipment and acknowledged that the Equipment is in good condition and repair and suitable for the Lessee’s purposes.

4. Covenants of Lessee

  • The Lessee agrees with Rice as follows:
    1. to use and preserve the Equipment at its own risk and in a careful, lawful and proper manner, and not to make any alterations, modifications or repairs to the Equipment without the prior written consent of Rice;
    2. to return the Equipment at the expiry of the term in the same condition in which it was rented to the Lessee;
    3. to return the Equipment to the Rice location from which it was rented (unless previous arrangements have been made);
    4. that Rice shall not be liable for any loss, costs, damages or expenses (including bodily injury or death, damage to property or economic loss) arising in any way from the Lessee’s possession or use of the Equipment;
    5. that the Equipment is and shall remain at all times the personal and moveable property of Rice;
    6. not to create or permit any liens, charges or encumbrances whatsoever against its interest in either this Rental Agreement or the Equipment;
    7. not to assign this Agreement or sublease or part with possession of the Equipment without the prior written consent of Rice;
    8. to maintain, at its own expense, insurance on the Equipment against loss or damage through fire, theft, public liability and such other perils and risks as against which a prudent owner or use would insure and in such amounts as may be reasonably required by Rice, with loss payable to Rice;
    9. accessories purchased for use with the Equipment are the sole responsibility of the purchaser; and
    10. any components damaged or spare parts which are used up while the unit is in the Lessee’s possession will constitute an extra charge.

5. Default

  • The Lessee shall be in default under this Agreement upon the happening of any of the following events:
    1. the Lessee fails to make any payment or perform or observe any covenant provided for herein;
    2. the Lessee makes an Assignment in Bankruptcy or takes the benefit of any statute now or hereafter in force for bankrupt or insolvent debtors;
    3. the Equipment is seized or attached by legal process or if distress is levied thereon; or
    4. the Equipment is, in the reasonable opinion of Rice, in danger of loss, damage or destruction.

6. Remedies on Default

  • Upon default by the Lessee hereunder Rice may, in addition to any other remedies permitted by law, exercise any or all of the following remedies:
    1. take possession of the Equipment and enter any premises for the purpose of same;
    2. declare the entire amount of the then unpaid rental payments to be immediately due and payable; and
    3. do all acts and make all expenditures necessary to remedy any breach by the Lessee hereunder and require the Lessee immediately to reimburse Rice for same.

7. Non Waiver

  • Any forbearance or indulgence by Rice in any regard whatsoever does not constitute a waiver of the term or condition to be performed by the Lessee to which the same may apply.

8. Contaminated Equipment

  • Rice will accept no responsibility or liability for contamination of any customer’s wells.

9. Applicable Law

  • The Agreement shall be governed by and construed in accordance with the laws of the Province of Alberta.