LEASE AGREEMENT TERMS AND CONDITIONS
Ref. Quotation: AAM-0066-17
A. RENTAL PERIOD
i. Hire of equipment starts and finishes at the point of
leaving from and returning at the LESSORs yard.
ii. Rental duration is Monthly/Weekly or 200/50 Hrs per
month/week whichever comes first.
iii. Rental rates are based on 200/50 Hrs. per month/week,
use or no use, subject to the equipment being available.
The minimum hour stipulation is allocated as 8 hours
minimum/billable on Mondays to Saturdays on schedule
that will be provided based on operational requirement.
B. OPERATORS TIME
i. Regular daily working hour shall be from 8:00AM to
5:00PM. Work rendered by our operator beyond the
Regular Working Hours, Sundays and Holidays shall be
treated as Overtime to be billed as a separate item on
the invoice at the rate of P75.00 per hour.
C. LESSOR'S RESPONSIBILITIES
i. Cost of repairs due to normal wear and tear;
ii. Cost of service on preventive maintenance;
iii. Cost of insurance covering Total Loss or Partial Damage
of the Unit or any accessories thereon; (Limited to
Property Floater Insurance only)
iv. Provide standard PPE to all project based personnel.
Standard PPE means safety shoes, hard hat, safety
glasses and gloves as appropriate.
D. LESSEE'S RESPONSIBILITIES
i. To supply clean fuel at all times to avoid equipment fuel
system breakdown, otherwise Repairs, Labor charges
etc. will be duly accounted for and charge to the LESSEE.
ii. Oil and other lubricants for the account of the LESSEE;
Oil shall be limited to Preventive Maintenance use.
iii. Cost of loss or damages due to:
1. War, insurrection, rebellion, military uprising, or
the like;
2. Terrorist act or terrorism;
3. Equipment utilized in underground tunnels or
offshore platforms;
iv. Mobilization/Demobilization shall be for the account of
the lessee. In the case where the Lessee assumes
responsibility for the physical mob/demob of rental
unit/s, a deposit equivalent to 100% of demob cost shall
be required from the Lessee.
v. To provide shelter for the operator(s) and field
servicemen free of charge including provision for light
and water;
______________________________________
Monark Representative
Date: April 3, 2017
vi. To provide free transportation to operator(s) from
Lessee's provided housing to work area and vice versa;
vii. To provide adequate security for the Unit while on
Lessee's premises and indemnify the Lessor for any loss
or damages incurred as a consequence of neglect;
viii. To designate an official representative to sign/approve
rental data sheets such as Official Time Records (OTRs,
SMR Summary and other pertinent documents);
iv. All conceivable taxes, licenses, permits, fees, etc.
imposed by the government, national or local, or by any
of its departments, agencies or bureaus, in connection
with the use, possession or operation of the UNIT, shall,
during its possession thereof, be for the LESSEEs sole
and exclusive account.
ix. To provide working area (bay shop) and shop
equipment e.g. air compressor, welding machine, etc.
for the repair and/or preventive maintenance interval;
x. To be liable for any and all Third Party Liabilities arising
out of the rented unit operations.
E. CONSUMABLES:
i. Ground Engaging Tools (G.E.T.) or Tires are free of
charge provided that it will be consumed/ used on its
normal wear life. However, for exceptional (beyond
normal) site damage or rapid wear & tear of G.E.T. or
tire/s due to the abrasive/rough work condition, all
consumables will be replaced by the LESSOR but for the
account of the LESSEE.
ii. For equipment with tires, maintenance like vulcanizing
shall be provided and for the account of the Lessee
including transportation.
iii. Breaker Moil Point: Likewise, consumable items like
moil point or hammer tool shall be for the account of
the Lessee;
F. NON-USAGE OF EQUIPMENT
i. In case of non-usage of equipment due to stand by /
waiting time, force majeure, acts of terrorism, labor
strikes, work stoppage/downtime due to repair of Unit
caused by Lessee's negligence such as unavailability of
clean fuel, unsafe and non workable site
conditions/practices, etc. the rental shall be considered
continued and the Lessee is liable for the minimum
hours as stipulated herein;
ii. In cases of downtime caused by equipment breakdown
due to normal wear, the rental period will cease until
the unit is declared by the Lessor and accepted by the
Lessee to be operational.
G. BILLING AND PAYMENT TERMS
i. ______________________________________
Lessor shall submit an Advance Billing/s of the
guaranteed maximumCustomer Representative
hours charges prior to the start
 LEASE AGREEMENT TERMS AND CONDITIONS
Ref. Quotation: AAM-0066-17
Date: April 3, 2017

date of rental and/or prior to the cut-off period for v. The Lessor shall not be liable for any damage to any
every rental extension (if any). property of the Lessee during the course of normal
operation of the unit; Likewise, Lessor is not liable to
ii. Advance Cash Basis shall require payment prior to
any form of damages on any losses/damages incurred
delivery of the Unit representing advance rental,
by the Lessee during breakdown of the Unit;
advance operator's charges for the first rental period
and mobilization and demobilization cost; Any contract vi. The Lessor shall provide a Mechanic/Serviceman on an
extension shall likewise require equivalent advance "as needed" basis;
rental and operator's charges prior to actual operation;
vii. The Lessor shall have the right to inspect the Unit during
H. EXTENSION/TERMINATION OF CONTRACT ordinary operating hours or at any time necessary to
perform the required repairs and maintenance; For this
i. This agreement can be extended upon approval by the
purpose, the Lessee agrees to provide free access and
Lessor on written request for extension from the Lessee
facilities to the Lessor.
upon compliance of the payment terms as stated above.
The said written notice must be served not later than 10 viii. That this Agreement supersedes and terminates any
days prior to expiration to give the Lessee the assurance and all previous agreements or prior expression of
of keeping the unit, otherwise, the extension shall be intent between the parties relating to the subject
subject to availability of the unit; hereof. This Agreement expresses the complete and
final understanding of the parties with respect thereto
ii. That both parties shall have the right to terminate this
and may not be changed in any way except by an
Agreement within fifteen (15) working days upon
instrument in writing signed by both parties;
acknowledgement of the written notice under the
following grounds: ix. That this Agreement shall become effective upon
signing by both parties and shall govern until
1. Lessor's Right:
terminated;
a) If any of the provision in this Agreement has
x. That in case of litigation arising from this Agreement,
been violated by the Lessee and/or non-
the venue shall be the courts of Quezon City, having
payment of rental fees and other charges as
jurisdiction of such action, to the exclusion of all
stipulated herein;
others.
b) If at the Lessor's opinion, continued operation
shall result in accelerated damage to the unit.
2. Lessee's Right:
a) If any of the provision in this agreement has
been violated by the Lessor;
I. GENERAL:
i. Lessee agrees that under no circumstances, the Unit(s)
will be used in any unsafe manner or in violation of the CONFORME: (Signature over Printed Name)
manufacturer's stated operating standards;
ii. LESSORs operator/s has the right to refuse to operate
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the equipment under unsafe working environment
and/or equipment misapplication. Lessee will be liable Date:_________________________________
to the cost of loss or damages of the machine if Lessees
representative insist to proceed with the job/work.
iii. Lessee shall not transfer the Unit to other location(s) or
project(s) without the written consent of the Lessor;
iv. Upon termination of this contract, if for one reason or
another, the Lessor is unable to gain access to the Unit
for purposes of pull-out/demobilization, Lessor shall
have the right to continue the rental charges at the
rental rate stipulated herein until access is made
available;