Rental contract

PRIOR DECLARATION:

Location Ferrento is referred to in this contract as the “Lessor” or the “Seller” depending on the nature of the contract.

TERMS AND CONDITIONS

1. Term of contract

This contract is for the term stipulated on the reverse and begins on the date the lessee receives the equipment, unless another date is stipulated in this contract.

2. Rental period

All equipment is rented for a minimum of one day, unless otherwise specified. For the purposes of this contract, rental periods are as follows:1 day means: 24 hours -1 week means: 7 days - 1 month means: 28 days

The lessee shall, for all purposes, be presumed to have had the use of the rented machinery or accessories from the day he takes possession of them until the day he returns them to the lessor. The lessee undertakes to notify the lessor of any excess of the permitted use of the leased equipment and such excess will be invoiced to the lessee.

3. Examination of the leased equipment

The lessee declares that he/she has personally examined the rented equipment and accessories and has found them to be in perfect order and in good working order. He further acknowledges that the equipment is suitable for his needs and that he is familiar with its operating instructions. He/she undertakes to check its operation and to notify the lessor of any defect.

4. Rent

The lessee shall pay the lessor the rate stipulated overleaf for each piece of equipment for the duration of the contract. If, at the expiration of the contract, the lessee keeps the equipment with the consent of the lessor, the contract will then be extended until the equipment is returned to the lessor under the same terms and conditions as provided in this contract. The Lessor may, after giving one day's written notice to the Lessee, at any time terminate the contract so extended and repossess the Equipment and, for such purpose, enter upon any premises to remove the said Equipment, without prejudice to all its other rights and remedies under this contract and the Act.

5. Reservation of Ownership

The lessee (buyer) specifically acknowledges that the lessor (seller) is and remains the exclusive owner of all goods leased or sold to it. In the case of the sale of goods, the transfer of ownership shall not take place upon the formation of the contract of sale or upon the taking of possession of the said goods, but only when all sums due under the said contract have been paid in full to the lessor (seller). However, the lessee (buyer) shall be liable for loss or otherwise of the goods sold from the time of taking possession thereof. Any default by the lessee will result in forfeiture of the benefit of any term. The lessee (seller) may then, at its option, take back all goods sold and retain, as liquidated damages, any sum paid on account for said goods, or claim from the lessee (buyer) and surety any sum due by the latter under this contract, plus interest. The lessee (purchaser) shall only be entitled to use the equipment in accordance with the terms and conditions of this contract. The lessee may not move the equipment from the place of use mentioned overleaf without the prior written consent of the lessor.

6. Destruction, loss, theft and fire

Total loss, theft, fire, or destruction of the equipment will not terminate the contract and the lessee (purchaser) will pay the rent as long as the equipment has not been returned to the lessor (seller) or the value of the equipment has not been paid to the lessor (seller). Furthermore, the lessee (buyer) agrees to immediately notify the lessor (seller) and the police of any loss, theft or destruction of the equipment. The parties agree that the value of the leased equipment will be the replacement cost at the time of loss.

7. Delay

Inability or delay, not caused by the Lessor's fault, to use the rented equipment shall not relieve the Lessee from payment of the rental charges agreed upon on the reverse side of this contract and the Lessee shall not be entitled to claim any compensation from the Lessor.

8. Expiry of contract

Upon expiration of the contract, or upon early termination, the lessee (purchaser) shall return the equipment to the lessor (seller) at the lessor's (seller's) address listed on the reverse side in the same condition as when received by the lessee (purchaser), with the exception of normal wear and tear. Failing this, the lessor and any person authorized by the latter may, without notice, repossess the equipment, and for this purpose may enter any premises to remove the said equipment. It shall be the responsibility of the lessee to establish whether and when the equipment has been returned.

9. Use, maintenance and repair

The lessee (purchaser) warrants that the equipment will be used for the purposes for which it is intended and by persons qualified to do so, and will follow the instructions received from the lessor's (seller's) representative. The lessee shall, at its own expense, keep the equipment in good working order and in good repair, and shall be liable for all damage to said equipment. Lessor shall also become the owner of any parts added or used as replacements. The lessee agrees to give the lessor access to the equipment or to any person authorized by the lessor for the purpose of inspecting the equipment. The lessee shall permit all repairs of any kind and shall not be entitled to any reduction in rent. The lessee shall pay all fees, taxes, penalties, or other charges relating to the possession or use of the equipment.

10. Indemnification

The lessee agrees to fully indemnify and hold harmless the lessor from and against any and all claims, demands or actions

taken against the Lessor for any loss, injury or damage including any loss of profit or other consequential damages suffered by the Lessor, its employees, representatives or third parties by reason of the presence or absence of the Equipment.

11. Exclusion of liability

The lessor shall not be liable for any damage, loss or injury caused by the rented item during its use. Any fault of a third party, act of God or force majeure in such circumstances may not be invoked by the lessee against the lessor. The Lessor shall not be liable for any damage or injury caused by latent defects or system malfunctions on any rented equipment and the Lessor shall not be liable to indemnify the Lessee against any claim, demand or action for any such loss, injury or direct or indirect damage, loss of profit claimed against the Lessee by third parties. At no time shall Lessor be liable for any injury, delay or damage caused by the use and condition of said equipment or for any other event beyond Lessor's control. The lessee shall be held responsible for the use of the rented items, as well as for any damage caused to said items. He assumes all risks inherent in the operation and use of these objects. Furthermore, the lessee agrees to comply with provincial and municipal codes when using cylinders, tanks or any other pressurized containers, and to close them after use.

12. Termination of the Contract

The Lessor may, without prejudice to all its rights and remedies under this Agreement and the Act, terminate this Agreement without the necessity of any notice if the Lessee is in arrears in the payment of rent or any other sum payable under this Agreement, if the Lessee breaches any of the other provisions under this Agreement, if the Lessee mortgages the Leased Property, if the Lessee commences proceedings under any law relating to insolvency or bankruptcy, if any proceedings are instituted against the lessee under such laws, or if a receiver, trustee or any other person with similar powers is appointed to take charge of any or all of the lessee's assets or affairs, if there is a voluntary or forced dissolution or liquidation of the lessee, if the lessee fails to pay any installment within thirty (30) days of its due date or if the lessee misuses the equipment; the lessee will no longer be in possession of the equipment. The Lessor and any person authorized by the Lessor may then, without notice, repossess the equipment and, for this purpose, enter any premises to remove said equipment. In addition, the Lessee shall immediately pay to the Lessor all rent, refunds due and accruing under this Agreement and any damages suffered by the Lessor as a result of the Lessee's breach of this Agreement, including any reasonable expenses incurred by the Lessor in enforcing this Agreement.

13. Subletting and Assignment

The Lessee shall not sublet the Equipment or any part thereof, nor assign this Agreement without the written consent of the Lessor, who may refuse for reasonable cause.

14. Chattel mortgage

The Lessee shall keep the Equipment free of any chattel mortgage, failing which the Lessee shall be liable to reimburse the Lessor for amounts paid and expenses incurred by the Lessor in obtaining release and discharge of any such mortgage.

15. Cleaning

The lessee agrees to return the rented property to the lessor in a clean and tidy condition. Failure by the lessee to comply with this obligation shall render the lessee liable for all cleaning costs.

16. Waiver of Damages

The lessee agrees to pay to the lessor, in accordance with the schedule contained in this contract, a surcharge of 9.9% of the total rent in order to be exempt from paying for damage to the leased equipment resulting from mechanical breakdown, when the lessee has proof of having acted reasonably throughout the rental period. The damage waiver does not replace the all-risk insurance that the lessee must maintain on the leased equipment at his own expense. The damage waiver does not deprive the insurer of any right of subrogation. The lessee will be presumed not to have acted reasonably, in particular, in the following cases:

17. Payment of costs

The lessee agrees to pay the legal costs, extra-judicial fees and costs of collection of all sums due as a result of this contract or the repossession of the leased property, all as a penalty clause. Furthermore, in all cases, the Lessor may claim the indemnity provided for in article 1618 of the Civil Code of Quebec.

18. Dangerous equipment

All rented equipment which generates heat, combustion, explosion or friction, or which operates with flammable or explosive materials or otherwise, must be used by the lessee under the constant and adequate supervision of a qualified operator.

19. Nullity of provisions

The invalidity of any one or more of the provisions of this contract shall not invalidate the remaining provisions of this contract.

20. Lessor's waiver

No forbearance or mitigation by Lessor in the exercise of its rights under this Agreement, or delay granted to Lessee by Lessor, shall prejudice or affect Lessor's rights under this Agreement.

21. Notices

Any notice given to the other party shall be validly given if sent by registered mail to the address of the other party set forth on the reverse side of this Agreement and any notice so given shall be presumed to have been given on the day following mailing.

22. Interpretation

Unless otherwise specified, the words Lessor (Seller) and Lessee (Buyer) wherever used in this Agreement shall mean respectively the Lessor, its administrators, executors, successors and assigns and the Lessee, its administrators, executors, successors and assigns. If there is more than one lessor or lessee, all obligations shall be joint and several.

23. Interest

All past due accounts will bear interest at the rate of 2% per month, i.e. 24% annually. Any cheque not honoured will incur a charge of $35.00 in addition to interest.

24. Consent and authorization

The lessee (purchaser) authorizes the lessor (seller) to use the imprint of his credit card, left as security when the account was opened, to pay any balance due and unpaid in accordance with the terms of this agreement and further authorizes the lessor (seller) to exchange with any information agent (credit bureau), financial institution, creditor or any person with whom the Lessee (Purchaser) has a business relationship (present or future), personal information, including financial information for the purpose of establishing or verifying the Lessee's (Purchaser's) credit history, solvency, character, reputation and any references provided by the Lessee (Purchaser).

25. Election of domicile

The parties agree that for any claim or legal proceeding for any reason whatsoever relating to this agreement, the judicial district in which the place of business of the Lessor (Seller) is located shall be the proper place for the hearing of such claim or legal proceeding, to the exclusion of any other judicial district.

26. Personal guarantee

I declare that I have read the present contract and undertake, jointly and severally, to guarantee each and every one of the obligations of the company (lessee/buyer) whose name and date appear on the face hereof with respect to any sum that the latter may owe to the lessor (seller) from now on or at any time thereafter. I further irrevocably waive the benefit of division and discussion understanding that this undertaking constitutes a continuing guarantee applicable to all debts contracted with the lessor (seller) by the lessee (buyer).