Rental Contract

This Rental Contract is by and between customer and Southwestern Equipment LLC, TRS Equipment Rental (Herein after TRS). NOTICE: FAILURE TO RETURN EQUIPMENT TO TRS AT THE ABOVE REFERENCED ADDRESS (HEREIN “RENTAL CENTER”) WITHIN SEVENTY-TWO (72) HOURS OF THE EXPIRATION DATE OF THIS CONTRACT IS A VIOLATION OF ARIZONA CODE 13-1806. A deposit is required on all rentals, unless waived by TRS.

Payment is due in full for all charges at the time of rental. Payment is due in full immediately for any additional charges during the rental. You are

charged for time on rental until equipment is returned to rental center and return is verified. No after hours returns accepted. All delivered equipment must be called off rental. Equipment will be charged for whether used or not. THE RENTAL DOES NOT INCLUDE FUEL. A REFUELING CHARGE OF $8.00 PER GALLON WILL BE CHARGED ON ALL EQUIPMENT RETURNED NOT FULL. A charge will be added for items requiring cleaning upon return.

THE CUSTOMER IS RESPONSIBLE FOR ALL TIRE DAMAGE AND COSTS OF REPAIR. The customer will be charged for any unscheduled service calls. All rentals are for local use only. EQUIPMENT RENTAL IS SUBJECT TO CONDITIONS AND TERMS ON THE FRONT AND REVERSE SIDES OF THIS CONTRACT. The operation and safety of the equipment has been explained to me. I understand how to operate the equipment and the safety

requirements. If towing equipment, I understand the information and safety requirements stated in the towing guidelines. Maximum traveling speed is 45mph when towing and hauling equipment. A rental cancellation fee of 25% may apply if order is canceled less than 24hrs before rental start (Sec. 5)

ACCIDENTAL DAMAGE WAIVER IS REQUIRED unless rental center has a certificate of insurance from customer naming TRS as additional insured. For an additional fee of 14% of the total rental, rental center agrees to waive claims for damage to rental items as specified in this contract. Not all damage is covered. Refer to (Sec. 17) on the reverse side. Accidental damage waiver is not insurance.

In consideration of hiring of the vehicles and/or equipment (herein “the equipment”) described on the front of this contract it is agreed as follows:

1. DEPOSIT. Customer acknowledges that one of the purposes and intent of the deposit is to secure and guarantee complete performance of Customer’s obligations under the contract.

2. WARNING. The use of false or fictitious identification to obtain the equipment or the failure to return the equipment upon the expiration of this contract may be considered a theft, resulting in criminal prosecution. Expiration date shall mean “return date”.

3. POSSESSION/TITLE. Customer’s right to possession of the equipment terminates on the return date indicated on the front of this contract. Retention of Possession after this date constitutes a material breach of this agreement. Time is of the essence of this agreement. Any extension of this agreement must be agreed upon in writing. Title to the equipment is and shall remain in TRS. If the equipment is not returned and/or is levied

upon for any reason whatsoever. TRS may retake said items without further notice or legal process and use whatever force is reasonably necessary to do so. Customer hereby agrees to indemnify, defend and hold TRS harmless from any and all claims, damages and costs arising from such retaking and/or levy. If equipment is levied upon, Customer shall notify TRS immediately.

4. RECEIPT/INSPECTION OF EQUIPMENT. Customer hires the equipment on an “as is" basis. Customer acknowledges that he has personally inspected the equipment prior to its leaving retail center (regardless of point of delivery) and finds it suitable for his needs. Customer acknowledges receipt of all items listed in this agreement in good working order and repair and that he understands its proper operation and use without further instructions regarding operation and use from TRS. Customer acknowledges that he has had an opportunity to inspect all hitches, bolts, safety chains. hauling tongues and other devices and materials used to connect the equipment to Customer’s vehicle (and that Customers vehicle is adequate for such use), if any, and Customer declares that he has received the equipment in a secure and operative condition.

5. RENTAL PERIOD/RATE/PAYMENT. Rental period is for a maximum of twenty-four (24) hours unless a longer term is specified in the “return date". Rental charges begin immediately upon delivery of the equipment to the location directed by the Customer or upon equipment leaving retail center, whichever happens first. Rental charges end upon return of the equipment to retail center in an acceptable condition. If the equipment is

returned prior to the end of the minimum rental period. the rental due shall be for the entire minimum rental period. TRS may terminate rental at any time and retake the equipment without further notice in case of violation by Customer of any terms or conditions of this agreement. Customer agrees to pay any collection costs and attorneys fees incurred in collection of this account or any dispute arising under this agreement. Customer agrees to pay service charge of 2% per month on unpaid balance. Rental rates are based upon single shift usage (8 hours per day. 40 hours per week, and 160 hours per month). If Customer makes greater use of the equipment it is agreed that the additional usage will be charged. Further more, rental cancellation by customer less than 24hrs before contract start may incur a 25% cancellation fee at TRS’s discretion.

6. ORDINARY WEAR AND TEAR. “Ordinary wear and tear” shall mean only the normal deterioration of the equipment caused by ordinary, reasonable and proper use of the equipment on a one-shift basis. Customer shall be responsible for all damage not caused from ordinary wear and tear.

7. COMPLIANCE WITH LAWS/USE OF EQUIPMENT. Customer agrees not to use or allow anyone to use the equipment for any illegal purpose, in any illegal manner or in an unsafe manner. Customer acknowledges that TRS has no physical control over the use of the equipment. Customer agrees at its sole cost and expense to comply with all municipal. county, state and federal laws, ordinances and regulations (including O.S.H.A.) which may apply to the use of the equipment during the rental period. Customer further agrees to pay all licenses, fees, permits or taxes arising from use of the equipment, including any subsequently determined to be due. Customer shall not allow any person who is not qualified and who has not received and understands safety and operating instructions, and who does not utilize all safety equipment required, to operate the equipment or use the equipment. Customer shall not allow any person to use or operate the equipment when it is in need of repair or when it is in an unsafe condition or situation; modify, misuse, harm or abuse the equipment; permit any repairs to the equipment without TRS‘s written permission; or, allow a lien to be placed upon the equipment. Customer agrees to check filters, oil, fluid levels, air pressure, clean and visually inspect the equipment at least daily and to discontinue use and immediately notify TRS when equipment is found to need repair or maintenance. Customer acknowledges that TRS has no responsibility to inspect the equipment while it is in Customers possession. If the equipment becomes unsafe or requires repair Customer shall discontinue using it and notify TRS immediately.

8. RETURN OF EQUIPMENT. Customer agrees to return the equipment to retail center during regular business hours no later than “return date" in as good condition as when received, ordinary wear and tear excepted. TRS may implement a cleaning fee at its discretion if equipment is returned dirty, equal to current hourly labor rate multiplied by the number of hours required to complete the cleaning process.9. DISCLAIMER OF WARRANTIES. TRS makes no warranty of merchantability or fitness for any particular use or purpose, either express or implied. There is no warranty or representation that the equipment is fit for Customer’s particular intended use, or that it is free of latent defects. TRS shall not be responsible to Customer or any third party for any loss. damage or injury caused by, resulting from, or in any way attributable to the operation of, use of, or any failure of the equipment. TRS shall not be responsible for any defect or failure unknown to TRS. Customer's sole remedy for any failure of or defect in the equipment shall be termination of the rental charges at the time of failure provided that Customer notifies TRS immediately of such failure and returns the equipment to Rental Center within twenty-four (24) hours of such failure.

10. PURCHASE ORDERS. The use of Customer's purchase order number on this agreement is for the Customer's convenience and identification only.

11. SUBLETTING/LOCATION OF EQUIPMENT. Customer agrees not to sublet, loan or assign the equipment. Customer shall not move the equipment from the address at which Customer represented it was to be used.

12. DEFAULT. Should Customer in any way fail to observe or comply with any provision of this agreement. TRS may, at its sole option, exercise any and all of the following remedies:

(a) Termination of this agreement.

(b) Retake the equipment.

(d) Pursue any of the remedies available to TRS (exercise of any remedy available to TRS shall not constitute an election of remedies or a waiver of any additional remedies to which TRS may be entitled).

13. RETAKING OF EQUIPMENT. If for any reason it becomes necessary for TRS to retake the equipment, TRS may utilize any and all legal processes necessary to retake the equipment without further notice.

14. INDEMNITY AGREEMENT. All work covered by this Agreement shall be at the sole risk of the Customer. Customer agrees to defend, indemnify and hold harmless TRS, its officers, directors and employees, from and against any and all liability, claims, judgments, costs, attorneys fees, or demands of litigation arising from the use, maintenance, operation, or possession of the equipment including, but not limited to, those arising from

the active negligence of TRS, it’s officers, directors and employees, from injury to or death of the Customer, Customer's employees, or any other person, or from damage to any property, save and except there shall be no obligation on the part of the Customer to defend, indemnify, and hold harmless TRS, its officers, directors, and employees, if the liability, claims, judgments, costs, attorneys fees, or demands of litigation otherwise giving rise to such obligation arise from the sole negligence or willful misconduct of TRS, it’s officers, directors, and employees. If Customer refuses to defend, indemnify and hold harmless TRS, its officers, directors and employees, and subsequently a determination is made that liability is not due to the sole negligence or willful misconduct of TRS its officers, directors, and employees, customer is obligated to reimburse any and all liability claims, judgments, costs, attorneys fees, or demands of litigation incurred by TRS, its officers, directors, and employees Customer agrees to notify TRS immediately in case of any accident and to obtain the names, addresses, telephone numbers and other pertinent information from all parties involved and all witnesses.

15. NOTICE OF NON-WAIVER/SEVERABILITY. Any failure of TRS to insist upon strict performance by Customer as regards any provision of this agreement shall not be interpreted as a waiver of TRS’s right to demand strict compliance with all other provisions of this agreement against Customer or any other person. The provisions of this agreement shall be severable so that the unenforceability, invalidity or waiver of any provision shall not effect any other provision.

16. ATTORNEY FEES. All cost and expenses incurred by TRS in connection with collecting any amount owed by customer pursuant to the provision of this contract including reasonable attorney fees, shall be paid by customer.

17. ACCIDENTAL DAMAGE WAIVER. By Customer signing acceptance of Accidental Damage Waiver on the front of this agreement and with immediate notification in the event of any accident and/or damage and the prompt submission of applicable police reports, TRS and Customer agree that TRS will waive any claim against Customer for direct physical damage to the equipment while in use by Customer. Notwithstanding the foregoing, the following conditions are excluded from coverage under Accidental Damage Waiver:

(a) Any item of equipment or part thereof which is not returned for whateverreason. including theft;

(b) Loss or damage resulting from overloading or exceeding rated capacity of the equipment;

(d) Damage to tires, tubes and wheels caused by blowout. bruises, cuts and other causes inherent in the use of the equipment;

(e) Loss due to mysterious disappearance, wrongful conversion by a person entrusted with the equipment or a shortage disclosed on inventory:

(f) Loss or damage caused by infidelity of Customer, its employees, or persons to whom the equipment is entrusted;

(g) Loss or damage resulting from misuse, abuse, failure to maintain cleanliness, proper oil, fuel, hydraulic or coolant levels, lack of lubrication or other normal servicing of equipment:

(h) All damage resulting from overturning;

(i) All damage or loss resulting from use of the equipment in violation of any provision of this agreement, violation of any law, ordinance or regulation or operation in an improper or negligent manner:

(j) Overhead damage and undercarriage damage;

(k) Damage from dirtying of equipment by paint, mud, plaster. concrete, rosin or any other material. Customer is responsible for cleaning and repainting, as required.

(I) Loss or damage while towing, hauling or transporting equipment;

(m) Loss or damage while loading or unloading equipment.

If Customer has insurance covering such loss or damage (Accidental Damage Waiver is “Null and Void”), Customer shall exercise all rights available to him under said insurance, take all action necessary to process such claim and Customer further agrees to sign said claim and any and all proceeds from such insurance shall be payable to TRS. Customer to provide TRS with complete information concerning insurance coverage

carried.