Rent to Own Drill Rig Contract

This contract entered into between

Whereas, ______________________________________________________________
(hereafter Renter) desires to possess and have the use of a borehole drilling rig owned by
___________________________________________(hereafter Owner) and described as
follows

Make__________________________. Model _________________________

Chassis no_____________________ Engine no______________________

Registration no__________________

Whereas, the parties have agreed that Renter shall take possession of the drill rig on
_________________ and have the use of the drill rig for a period of 10 months to the
____________________when all terms and conditions of this agreement have been fulfilled,
and

Whereas, Renter and Owner intend that ownership of the drill rig shall transfer to Renter upon
the full completion of this agreement,

Now, therefore, the parties agree as follows:

Renter shall pay Owner the sum of US$6 500 (six thousand five hundred dollars) per
fortnight for the first 2 month's of this contract signing and then the sum of US$13 000-00
( thirteen thousand dollars) per month of the eight months following the first two months
and the sum to be paid on the 2nd day of each month for rental of the drill rig.

The parties agree that the purchase price of the drill rig is US$130 000-00 ( one hundred and
thirty thousand dollars)

The parties agree that US$13 000-00 ( thirteen thousand dollars) of each month's rent
payment shall be applied towards purchase of the drill rig.

The parties agree that ownership of the drill rig shall transfer to Renter upon Renter's
completion of US$130 000-00 ( one hundred and thirty thousand dollars) payments as
described above.

The parties agree that if Renter fails to complete the contemplated purchase of the drill rig for
any reason, no refunds or credits shall be due to Renter.

Renter shall maintain the drill rig, at Renter's expense, in clean, good working order. Small
repairs like tyre puncher or change of burst tyre.

Renter shall indemnify and hold harmless Owner against any and all claims, damages, or
actions arising from Renter's possession or use of the drill rig.
The owner shall take charge of all servicing of the drill rig and also take care of all major repairs
to the drill rig.

If Renter fails to make a payment within 3 days of its due date, Renter agrees to surrender the
drill rig to Owner upon the Owner's demand.

If Renter fails to make a payment 5 days of its due date, Renter agrees that Owner shall have
the right to enter Renter's property for the purpose of taking possession of the rented drill rig.

In witness to their agreement to the terms of this contract, the parties affix their signatures
below:

____________________________________ _________________________________

Owner, signature & date Renter, signature & date

Address_____________________________ Address___________________________
City _____________________________ City, ___________________________

Witness_____________________________. Witness _____________________________

______________________________. _____________________________