THIS SPECIALIZED 20' CONTAINER RENTAL AGREEMENT made in Charlottetown, Queens County, Province of Prince Edward Island, relates to the rental of a specialized twenty-foot (20') container (being a container fitted with side doors or other features beyond those of a regular container) (the 'Container'). Between Lessor, AUSTIN MCQUAID RENTAL & LEASING INC., and the Lessee.
RENT
The Lessee shall pay rent to the Lessor, in advance, at the rate of $300.00 plus applicable taxes per month. The payment of rent is due on the 1st day of each month. Notwithstanding that rent is due on the 1st day of each month, the Lessee shall have until the seventh (7th) day of the month to pay the rent by a method other than the credit card on file, failing which the credit card on file shall be charged in accordance with the PAY RENT covenant set out below.
DELIVERY CHARGE
The Lessee shall pay the Lessor a fee for the delivery of the Container or other equipment, each time that the Container or other equipment are delivered, placed, or picked up. The Lessee shall pay a delivery fee of $100.00 (One-Hundred dollars) plus applicable taxes within the Charlottetown area; $115.00 (One-Hundred and Fifteen dollars) an hour plus applicable taxes for areas located outside of the Charlottetown area (within Queens County); $125.00 (One Hundred and Twenty-Five dollars) plus applicable taxes for areas located in Prince and Kings Counties. The Lessee acknowledges that there may, from time to time, be increases to the delivery fee. The Lessee shall be provided with at least thirty (30) days’ notice of any increase in delivery fees.
MILEAGE CHARGE
In addition to any delivery fees charged, the Lessee shall pay the Lessor a mileage fee associated with transporting the Container or other equipment, each time that the Container or other equipment is moved. The mileage fee will be calculated per kilometer at a rate to be determined at the time the Container or other equipment is being transported. The Lessee will be advised of the applicable mileage fee associated with transporting the Container or other equipment prior to the charge being incurred by the Lessee. The Lessee acknowledges that the mileage fee may be different for each time that the Container or other equipment is transported.
FUEL SURCHARGE
In addition to any delivery fees and mileage fees charged, the Lessee shall pay the Lessor a fuel surcharge on all charges associated with transporting the Container or other equipment. The fuel surcharge is calculated as a percentage of the applicable delivery fees and mileage fees, based on the prevailing price of diesel fuel (CAD per litre) at the time the Container or other equipment is transported, in accordance with the following schedule:
Diesel Price (CAD/L) Fuel Surcharge
$0.00 – $1.60 0.00%
$1.61 – $1.70 1.00%
$1.71 – $1.80 2.00%
$1.81 – $1.90 3.00%
$1.91 – $2.00 4.00%
$2.01 – $2.10 5.00%
$2.11 – $2.20 6.00%
$2.21 – $2.30 7.00%
$2.31 – $2.40 8.00%
$2.41 – $2.50 9.00%
$2.51 – $2.60 10.00%
$2.61 – $2.70 11.00%
$2.71 – $2.80 12.00%
$2.81 – $2.90 13.00%
$2.91 – $3.00 14.00%
The Lessee acknowledges and agrees that the fuel surcharge may change from time to time in accordance with the prevailing price of diesel fuel, and that the fuel surcharge applicable to each transport may differ. The Lessee will be advised of the applicable fuel surcharge prior to the charge being incurred by the Lessee.
EQUIPMENT
The Lessee has examined the equipment and finds it to be in good condition.
CONTAINER AND OTHER EQUIPMENT USAGE LIABILITY
The Lessee shall assume all risks associated with the operation and use of the Container or other equipment of the Lessor, including the placement of said Container or other equipment. The Lessee shall be responsible and liable for any and all damage including, without limiting the generality of the foregoing, all bodily injury or property damage, arising from the use or operation of the Container or other equipment, including any act or omission of the Lessor, its employees, assignees or agents, other than any damage caused by or resulting from equipment failure. The Lessor, its employees, assignees or agents, when delivering or operating the Container or other equipment to the Lessee, and on behalf of the Lessee, shall not be responsible or liable for any damage arising from their use or operation of the Container or other equipment. Further, it is agreed and acknowledged by the Lessee that if the Lessee instructs the Lessor to take the Container or other equipment off of gravel or pavement and the Lessor, Container or other equipment becomes stuck as a result, the Lessee shall be responsible for getting the Lessor, Container or other equipment unstuck, which shall include, but is not limited to, any tow fees which may be incurred. It is further agreed and acknowledged by the Lessee that if the Lessee builds around the Container or other equipment or blocks access, including but not limited to, by planting a tree, flower bed, septic, or fence, that the Lessee will be responsible for either purchasing the Container or other equipment at the then going rate or to pay any additional charges associated with renting and operating further equipment, such as a cane, to remove the Container or other equipment.
The Lessee acknowledges and agrees that during any move or transport of the Container or other equipment, including any move undertaken as part of a repossession, the Lessor shall not be responsible or liable for any shifting of, or damage to, the contents caused by or resulting from insufficient or improper packing, loading, or securing of the contents by the Lessee. It is the Lessee’s sole responsibility to ensure that all contents are adequately packed, loaded, and secured so as to withstand movement.
LESSEE’S COVENANTS
The Lessee covenants with the Lessor as follows:
1. PAY RENT - To pay rent in accordance with the provisions of this agreement. The Lessee shall at all times keep a valid credit card on file at the offices of the Lessor as a condition of this agreement. The Lessee may pay rent by cheque, cash, e-transfer, wire transfer, or credit card; however, any payment made by a method other than the credit card on file must be received by the Lessor no later than the seventh (7th) day of the month. If payment has not been received by the seventh (7th) day of the month, the Lessee authorizes the Lessor to automatically charge the full outstanding balance, plus applicable taxes, to the credit card on file on the seventh (7th) day of the month, or on the next business day if the seventh (7th) falls on a weekend or holiday, without further notice. The Lessee further authorizes the Lessor, as an ongoing right, to charge the credit card on file for any and all amounts that remain unpaid more than seven (7) days after they become due — including rent, applicable taxes, delivery fees, mileage fees and any other charges owing under this agreement — and to re-attempt any such charge from time to time until all outstanding amounts are paid in full. If the rent remains unpaid after the credit card on file has been charged, whether because the charge is declined or otherwise, the Lessor may commence its lockout procedure with respect to the Container or other equipment, and the Lessee shall have no right of access to the Container or other equipment until all outstanding amounts, plus applicable taxes, are paid in full. The lockout procedure — including the Lessor’s right to cut off the Lessee’s lock, secure the equipment with the Lessor’s own lock, apply a lockout fee, and re-take possession — is set out in the RE-ENTRY proviso below. The Lessee’s credit card will not be charged rent if the Lessee ceases to rent a Container or other equipment from the Lessor.
2. RETURN OF EQUIPMENT - To return the Container and all attachments and parts belonging thereto in the same condition as received, ordinary wear excepted. The Lessee shall return the Container clean and free of debris, product, and residue. Any clean out required as a result of seafood, or any other extensive cleaning required, will be billed to the Lessee at a rate of $150.00 per hour plus HST, subject to a minimum charge of $200.00 plus HST.
3. COMPENSATION FOR DAMAGE - To make good or compensate the Lessor for any damage to the Container or other equipment caused by the negligent, reckless or willful conduct of the Lessee, the Lessee’s servants, agents, employees, licensees or invitees. Furthermore, the Lessee agrees to report any damage to the Container or other equipment to the Lessor within twenty-four (24) hours of the damage occurring.
4. ENTRY BY LESSOR - To permit the Lessor on twenty-four (24) hours’ notice to enter the Container at any reasonable time for the purpose of inspecting the Container. The Lessee shall waive the twenty-four (24) hour notice in the case of an emergency.
5. ASSIGN OR SUBLET - Not to assign this agreement or sublet the Container or other equipment without the prior written consent of the Lessor.
6. USE OF PREMISES - To use the Container or other equipment solely for the purposes agreed upon, with care and according to instructions. For greater clarity, the Lessee agrees not to place damaging chemicals, hazardous materials, flood damaged items, smoke damaged items, or salt within the Container. The Lessee further agrees not to place any items on the roof of the Container, not to drill or cut any holes in the Container, and not to affix any banners, signs, or other markings to the Container. The Lessee agrees and acknowledges that if they use the Container for any prohibited purposes, they will be responsible for either the repair of said Container or be required to purchase said Container, depending on the amount of damage resulting from the prohibited usage.
7. NOT TO AFFECT INSURANCE - Not to do or omit or permit to be done or omitted on or in the Container and other equipment anything which shall cause the rate of insurance upon the Container or other equipment to be increased and if the rate of insurance upon the Container or other equipment shall be increased by reason of anything done or omitted or permitted to be done or omitted by the Lessee or anyone permitted by the Lessee to be upon the Container or other equipment, the Lessee shall on demand pay to the Lessor the amount of such increase.
8. LESSEE’S INDEMNITY - To indemnify and save harmless the Lessor, its employees, assignees, directors or agents, including any said individuals who may assist with the Container or other equipment on behalf of the Lessor, against and from any and all claims, demands, losses, damages, actions, suits or proceedings of every nature and kind whatsoever by any person, firm, or corporation, including, without limiting the generality of the foregoing, all claims for bodily injury or property damage, arising from the conduct or any work or by or through any act or omission of the Lessee or any assignee, agent, contractor, servant, employee, invitee, or licensee of the Lessee, including the use of any of the Lessor’s Containers or other equipment, and against and from all costs, counsel fees, expenses and liabilities incurred in or about any such claim.
9. INSURANCE - To maintain proper and adequate insurance on all property owned by the Lessee and situate in the Container or other equipment.
10. REEFER UNITS - During the rental of any reefer units the Lessee is held liable for damaged product, fuelling, temperature monitoring and adjustment. Further, in the event the unit fails or is vandalized, the Lessor is not liable for product or items in said unit.
LESSOR’S COVENANTS
The Lessor covenants with the Lessee as follows:
ACCESS
1. To permit the Lessee, its servants, agents, employees, licensees and invitees to have access to the Container and other equipment for the purpose of ingress to and egress from the Container or other equipment.
2. To provide the Lessee with at least thirty (30) days’ written notice of any increase in rent, which may not be applicable until the expiration of the Term.
PROVISOS
OVERHOLDING
1. If the Lessee, with the consent of the Lessor, remains in possession of the Container or other equipment after the date fixed for the expiration of the term or any renewal thereof without any further written agreement, the Lessee shall be deemed to be occupying the Container or other equipment on a month to month basis, and subject to Rent payable in advance on the first day of each month in the same monthly amount of Rent payable by the Lessee during the last month of the term of the Container Rental Agreement and the Lessee shall not be allowed to terminate this agreement until he has first given the Lessor twenty-four (24) hours written notice of his intention to do so; and otherwise, upon the same terms and conditions in this Container Rental Agreement.
OPTION FOR LEASE EXTENSION
2. Provided that if the Lessee has during the term hereof paid the rent hereby reserved including additional rent as herein provided, performed all and every of the covenants provisos and agreements herein contained on the part of the Lessee to be paid and performed, the Lessee shall have the right to renew this Lease upon the same terms and conditions, including this option to renew, subject to the following exception:
a) The rent upon renewal shall be as mutually agreed upon by the Lessor and Lessee, being the intention of the Parties hereto to reflect the then prevailing lease rates for comparable property, and failing agreement, then as established by arbitration as hereinafter provided. The right of renewal herein contained may be exercised providing the Lessee by notice in writing to the Lessor, which notice shall be served upon the Lessor at least thirty (30) days prior to the expiration of this Container Rental Agreement.
RE-ENTRY
3. If the rent hereby reserved, or any part thereof, shall be in arrears or if the Lessee shall make default in the observance or performance of any of the Lessee’s covenants or agreements contained in this agreement and such arrears or default shall continue for a period of seven (7) days, then the Lessor may give the Lessee notice requiring the Lessee to pay the arrears or remedy the default within fourteen (14) days of receipt of notice. If the Lessee fails to pay the arrears or remedy the default within such period, the Lessor may re-enter and repossess the Container or other equipment and the term hereby granted shall thereupon be terminated. In exercising its right of re-entry, the Lessor may cut off and remove the Lessee’s lock from the Container or other equipment and place the Lessor’s own lock thereon in order to secure the contents and ensure that the contents are not removed while any amounts remain outstanding, and the Lessee shall be responsible for the replacement of their own lock. A lockout fee of $75.00 plus applicable taxes shall be applied to the Lessee’s account each time the Lessor exercises its right of re-entry or commences the lockout procedure. In addition, the Lessee and Lessor agree to be bound by the Warehousemen’s Lien Act (Prince Edward Island). The Lessor shall have a lien on all goods and property stored in the Container or other equipment for the arrears of rent and any other amounts owing under this agreement, and may retain, and ultimately sell, such goods and property to satisfy the amounts owing, all in accordance with the Warehousemen’s Lien Act. Upon re-entry or upon the commencement of the lockout procedure, the Lessor may remove the Container or other equipment and return it to the Lessor’s yard, and all charges associated with such removal and return, including without limitation delivery fees and mileage fees, shall be applied to the Lessee’s account and shall be payable by the Lessee.
ABANDONMENT
4. If the Lessee fails to pay the rent or any other amounts owing under this agreement, and the Lessor is unable to obtain any communication from the Lessee for a period of three (3) consecutive months despite the Lessor having made reasonable attempts to contact the Lessee, then the Container or other equipment, together with any goods and property stored therein, shall be deemed to have been abandoned by the Lessee. Upon such deemed abandonment, the Lessor may re-take possession of the Container or other equipment and may remove, store, sell, or otherwise dispose of any goods and property stored therein, and apply the proceeds of any such sale to the amounts owing by the Lessee, all in accordance with the Warehousemen’s Lien Act (Prince Edward Island) and applicable law, without further liability to the Lessee.
NOTICE
5. Any notice or communication to be given by any party to the others hereunder, including for purposes of issues with Containers or contracts, shall be deemed to be duly given when served upon such party or sent by registered mail to the Lessor at their place of business and to the Lessee at the address provided above.
COUNTERPARTS / ELECTRONIC SIGNATURE
6. This Agreement may be executed and then delivered by facsimile or electronic transmission and that this Agreement may be signed in counterparts and such counterparts once executed and delivered shall be read together and be deemed to be a single agreement. This Agreement may be executed by facsimile, .pdf signature, or any other form of electronic signature by any party and such signature shall be binding for all purposes hereof without delivery of an original signature being thereafter required.
EXECUTION
Execution of Container Rental Agreement and Waiver by Lessee:
I/We, have read the entire Container Rental Agreement provided above and I/We confirm that I/We understand and agree to be bound by the terms herein. Without limiting the generality of the Container Rental Agreement: I/We agree to hold harmless and indemnify the Lessor and/or any Lessor employees, assignees or agents, including those who may assist in the use or operation of the Containers or other equipment of the Lessor, for all losses or damages arising from the conduct or any work or by or through any act or omission of the Lessor or any assignee, agent, contractor, servant, employee, invitee, or licensee of the Lessor, including but not limited to damage to any property or person resulting from the conduct or any work or by or through any act or omission use or operation or work associated with the Containers or other equipment of the Lessor.