All of Alberta Oilfield Rental Inc.'s rental equipment is run at the risk of the party named on the rental agreement (lessee).

Alberta Oilfield Rentals (lessor) will take all precautions to ensure that the rental equipment is in perfect condition before it is provided to the lessee. However, this does not eliminate risks.

The lessee is liable for any damages to rental equipment or property which is in their possession. The lessor is not responsible for any personal injury or property damage whether or not caused by such equipment or by the sole negligence of the lessor.

The lessee assumes all responsibility of rental equipment while out of the possession of the lessor and is required to return the equipment in the same condition as the affective lease date. Normal wear and tear is acceptable.

All lost or damaged equipment beyond repair will be paid for by the lessee at the new replacement cost as well as any costs accrued by the lessor, including transportation costs.

The lessee is responsible for all repairs and servicing of damaged equipment as well as any costs accrued by the lessor, including transportation costs. Any damaged equipment will be charged at half of the rental cost to the lessee while being repaired or replaced. The lessee will be responsible for the full rental costs of lost equipment until it is replaced.

Work site conditions that prevent satisfactory operation of equipment does not negate the lessee's responsibility for rental charges.

This lease is governed by 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.

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