I. TERMS

1. Lessor – SIA “ĀTRAIS TORŅU SERVISS”, Reg. No. 40003726915, legal and actual address: Riga, Kārļa Ulmaņa gatve 1, Riga, LV-1004.
2. Lessee – a natural or legal person who has concluded a Lease Cooperation Agreement with the Lessor and on the basis of which the inventory belonging to the Lessor is transferred to the Lessee for a fee, in accordance with the terms of the Lease Cooperation Agreement.
3. Deed of transfer of acceptance – concluded between the Lessor and the Lessee for the transfer of the inventory for rent or the acceptance of the inventory back from the Lessee, which specifies the list of the inventory, its value and the rental fee.
4. Service – risk protection service regarding inventory damage, which, for an additional fee, together with the Lease cooperation agreement between the Lessor and the Lessee, determines the reduction of material liability in connection with the damage or complete destruction of the leased (leased) inventory during the lease term.
5. Agreement – an addendum to the Leasing Cooperation Agreement on inventory damage risk protection concluded on the basis of these terms and acceptance transfer acts.
   Parties – Lessor and Lessee.
6. Party – Lessor or Lessee individually.
7. Territory coverage – Republic of Latvia

II. GENERAL RULES

1. The parties note that
   1. 1.1. The lessee is obliged to keep the leased inventory in order during the inventory lease, to return the inventory in no worse condition than it was at the beginning of the lease term, taking into account normal wear and tear, and to compensate for damages
      1.2. The rental cooperation agreement stipulates that the Lessee is in all cases responsible for the loss, destruction or damage of the inventory, as well as the obligation to compensate the Lessor for the value of the (damaged, worn) inventory or individual parts.
      1.3. The lessee is and remains responsible for the inventory, but wants to reduce the risk of loss for the compensation amount in case of destruction, damage or loss of the inventory or its parts;
      1.4. The agreement on the risk program is valid if the deed of transfer of inventory acceptance includes a reservation on the risk program and the Lessee has complied with the terms of the Lease Cooperation Agreement, these rules and the Lessee has paid the invoices submitted by the Lessor within the term specified in the Lease Cooperation Agreement.
      1.5. In any case, the Lessor reduces the Lessee’s financial responsibility for damage or complete destruction of the leased (leased) inventory during the lease term by no more than 90%, the Lessee’s responsibility under any circumstances remains at 10% (Lessee’s own risk) of the total amount of damages calculated by the Lessor . The Lessee shall pay compensation in the amount of 10% (Lessee’s own risk) in accordance with the invoices provided by the Lessor, in compliance with the terms of the Lease Cooperation Agreement.
      1.6. The risk program is applied only if the Lessee is not compensated for the loss based on the Lessee’s insurance contract and if the insurance contract has not been concluded.

III. RISK PROGRAM RULES

1. The risk program for the Parties is valid in the Republic of Latvia, unless the Parties have agreed otherwise in writing.
2. The risk program is applicable to the inventory specified in the act of transfer of acceptance, which, in accordance with the terms of the Lease Cooperation Agreement, has been transferred to the use (possession) of the Lessee.
3. The risk program operates from the moment when the Lessor has handed over, but the Lessee has accepted the inventory with the act of transfer of acceptance until the moment the inventory is returned to the Lessor and the Parties have drawn up the act of transfer of acceptance of return.
4. The risk program partially releases the Lessee from the contractual responsibility towards the Lessor, which results from the terms and conditions of the Lease Cooperation Agreement concluded between the Parties. As part of this risk program, the Lessee is assigned a minimum excess of EUR 300.00 (three hundred euros).
5. The risk program covers the inventory repair expenses, but in some cases the total value of the inventory in case of damage.
6. Within the framework of the risk program, the Lessor undertakes to release or reduce the Lessee’s financial responsibility towards the Lessor, the cause of which is sudden and unforeseeable damage or destruction of the inventory, except for the exceptions specified in these regulations.
7. Exceptions to the application of the risk program in relation to the Lessee’s financial responsibility:

7.1. as a result of terrorism (terrorism – acts of terrorism or their result, regardless of any other causes that, by chance or otherwise, have contributed to the occurrence of losses, damages or expenses. In the context of this condition, terrorism is understood as violence or dangerous activity that threatens human life, material or intangible property or infrastructure, with the intent to influence any government or to keep the public or any part thereof under the power of fear.);
7.2. in the event of war, military invasion, civil war, insurrection, revolution, sedition, military or other usurpation of power;
7.3. strike, riot, resistance movement, curfew or siege or other cases and events followed by siege or curfew;
7.4. due to confiscation, forced takeover, requisition, nationalization and/or other coercive orders from the government and/or local authority;
7.5. due to the use of inappropriate and/or low-quality materials or parts;
7.6. Due to malicious intent, illegal activity or gross negligence of employees of the lessee who use the inventory;
7.7. due to violations of applicable laws, building regulations, technical operation and/or fire safety regulations;
7.8. due to blasting works;
7.9. due to testing, overloading, experimentation or using the inventory for any other purposes and works other than those for which the inventory is intended;
7.10. if the inventory is used while under the influence of alcohol, narcotic substances or other toxic/psychotropic substances, this also applies to cases where the manager of the inventory has avoided or refused to check the effects of alcoholic beverages, narcotic, psychotropic or other intoxicating substances, or these substances used after a traffic accident until such inspection is performed;
7.11. for the same reason, which has previously caused losses that have been compensated within the framework of the risk program, if after the occurrence of the first case of loss, the Lessee has received specific and reasonable recommendations from the Lessor regarding the elimination of the reasons that caused the loss, but the Lessee has not taken appropriate measures to eliminate the existing defect ;
7.12. if the defect or other hazard that caused the subsequent loss was known or should have been known to the Lessee before the risk program came into force or within a reasonable period of time (so that the risk could be eliminated) before the occurrence of the loss;
7.13. due to the influence of electromagnetic field and/or electromagnetic radiation (including radiation);
7.14. as a result of exposure to ionizing radiation or radioactive pollution, nuclear fuel, nuclear waste, nuclear weapons, nuclear substances;
7.15 due to fraud, misappropriation or extortion;
7.16. for equipment located or working in close proximity to water on ships, platforms, pontoons, barges and transfer stations;
7.17. for inventory that is used without management/use rights or necessary qualifications for the relevant inventory, if such qualification or management/use rights are required in accordance with regulatory enactments;
7.18. inventory that has been subleased;
7.19. consequential damages of any kind (including but not limited to: sanctions, fines, lost profits and/or downtime costs);
7.20. loss or damage resulting from any criminal offense other than theft, robbery or vandalism within the meaning of the terms of this Risk Program;
7.21. loss or damage caused by theft, robbery or vandalism, if the inventory is left unlocked outside of working hours, the security systems installed are not activated or are not properly supervised.
7.22. The Lessee has not paid the Lessor’s invoices in accordance with the procedures specified in the Lease Cooperation Agreement;
7.23. The lessee has not reported the fact of loss within 24 hours after the event or learning about such an event;
7.24. provided false information about the circumstances of the loss or its extent;
7.25. the cause of the loss is inappropriate and incorrectly chosen work methods, or non-compliance with the provisions of the installation and use instructions, regulatory acts, the Lease Cooperation Agreement and the resulting documents;
7.26. losses related to regularly replaceable parts (for example: damage to drills, knives, tires, saws or other cutting blades, ropes, tapes, chain batteries, connecting wires and cables, flexible pipes and similar parts, if this is the only damage to the inventory.
7.27. losses resulting from minor external defects in the inventory, such as scratches or graffiti or removal of stickers;
7.28. damages incurred or cleaning costs incurred from sandblasting, painting, plastering or other similar work resulting in significant soiling of inventory, including concrete or asphalt stains;
7.29. it is not possible to find out the extent of the loss or the circumstances of its occurrence.

1. In case of loss of inventory, the Lessee undertakes to report to the Lessor without undue delay, but no later than 24 hours after the occurrence of the event or learning about such an event, by performing the following mandatory actions:
   1. 8.1. to implement such measures to prevent the increase of the incurred losses;
      8.2. reports to the police, the fire and rescue service, the State Labor Inspectorate or another institution (state environmental service, etc.), which performs the relevant rescue work or investigates the circumstances of the accident, in accordance with the procedures established by the laws and regulations, taking into account the nature of the accident;
      8.3. records the circumstances of the occurrence of the loss, such as the state registration number plate of the vehicle of the other participant in the accident, data of witnesses, conditions of the place of occurrence of the loss and other information that may be useful for clarifying the circumstances;
      8.4. as far as possible, take photos or videos;
      8.5. to the extent possible, everything possible must be done to ensure the acquisition of evidence proving the damage or loss and the fault of third parties;
      8.6. informs the Lessor, providing him with a description of the circumstances of the accident, an assessment of the amount of damage and other information that may be useful for clarifying the circumstances;

IV. MANDATORY ACTION IN THE EVENT OF DAMAGE TO THE INVENTORY

1. Ensure that people near the inventory are protected from any danger and are safe.
2. As a result of the accident, first aid must be provided, it must be immediately reported to the emergency service by phone number 112, if there is a person injured, and one must act in accordance with the instructions given by it.
3. Carry out such a set of measures that maintain the general safety and help prevent the increase of losses and the preservation of the Lessor’s property.
4. Takes other reasonable measures that could reasonably be expected in the relevant situation, guided by the circumstances.
5. In accordance with the procedures established by the regulatory acts, taking into account the nature of the accident, reports to the police, fire and rescue service or another institution (state environmental service, etc.), which performs the relevant rescue work or investigates the circumstances of the accident.
6. Records the circumstances of the occurrence of the loss, for example, the state registration number plate of the vehicle of the other participant in the accident, witness data, the circumstances of the place of occurrence of the loss and other information that may be useful for clarifying the circumstances;
7. Informs the Lessor, providing him with a description of the circumstances of the accident, assessment of the amount of damage and other information that may be useful for clarifying the circumstances and agrees with the Lessor on further action.