EQUIPMENT RENTAL AGREEMENT

IN CONSIDERATION OF the mutual covenants and promises in this Agreement: the receipt and sufficiency of which consideration is hereby acknowledged; the Lessor leases the Equipment to the Lessee: and the Lessee leases the Equipment from the Lessor on the following terms:

Definitions

The following definitions are used but not otherwise defined in this Agreement:

“Casualty Value” means the market value of the Equipment at the end of the Term or when in relation to a Total Loss, the market value the Equipment would have had at the end of the Term but for the Total Loss. The Casualty Value may be less than but will not be more than the original purchase price of the Equipment.

2. “Equipment” means any machinery, attachment, trailer, or other item rented from Lessor.

3. “Total Loss” means any loss or damage that is not repairable or that would cost more to repair than the market value of the Equipment.

Lease

2. The Lessor agrees to lease the Equipment to the Lessee: and the Lessee agrees to lease the Equipment from the Lessor in accordance with the terms set out in this Agreement.

Term

3. The Agreement commences on the day that the equipment is picked up or delivered to the Lessee and will continue until the equipment has been returned to or picked up by the Lessor (the “Term”).

Rent

4. The rent: inclusive of sales tax and theft/total loss insurance: will be paid in advance for the full term that the Lessee plans to rent the equipment (the ‘Rent”).

Use of Equipment

5. Inspection- Lessee shall inspect the equipment prior to receipt thereof. Unless Lessee specifies any defect at that time, Lessee agrees that it shall be conclusively presumed, as between Lessor and Lessee, that Lessee has fully inspected and acknowledged that the equipment is in full compliance with the terms of this agreement, in good condition and repair, and that Lessee is satisfied with and has accepted the equipment in such good condition and repair. Lessor shall have the right at any time to enter the premises occupied by the equipment and shall be given free access thereto and afforded necessary facilities for the purpose of inspection. It is specifically noted that hoses connecting attachments can easily be damaged or pinched. Lessee has been notified to take extra precaution with regard to hose routing to prevent pinching/pulling.

6. The Lessee will use the Equipment in a good and careful manner and will comply with all of the manufacturer’s requirements and recommendations respecting the Equipment and with any applicable law: whether local: state or federal respecting the use of the Equipment, including: but not limited to, environmental and copyright law. Lessee understands that the equipment owner’s manual from the manufacturer shall be the only all-inclusive source for safe operation practices. Lessee is encouraged to consult with Lessor for any hands on assistance prior to taking delivery of the equipment but this does not circumvent the need to read and follow the owner’s manual. Lessee shall not remove, disfigure or cover up any numbering, lettering, or insignia displayed upon the equipment. Lessee shall not modify or alter the equipment. Lessee shall operate the equipment with the proper care and respect due without neglect and see that the equipment is not subjected to careless, unusually or needlessly rough usage. Ordinary wear and tear resulting from proper use thereof alone expected. Lessee specifically assumes responsibility for tire and track repair and any associated loss related to such failure as failure of tires and track are typically related to air pressure loss or impact damage.

Safety- I certify that I have been instructed on basic proper use of the machinery being leased. I have access to a manual and shall consult it for further details before operating the machine. I have been instructed of the proper safety equipment to be used when operating this machine. I have been given the opportunity to purchase or lease the required safety equipment and have no further questions regarding the operation of this equipment.

7. The Lessee will use the Equipment for the purpose for which it was designed and not for any other purpose.

8. Unless the Lessee obtains the prior written consent of the Lessor: the Lessee will not alter: modify or attach anything to the Equipment unless the alteration: modification or attachment is easily removable without damaging the functional capabilities or economic value of the Equipment.

Repair and Maintenance of Equipment

9. The Lessee will: at the Lessee’s own expense: keep the Equipment in good repair: appearance and condition: normal and reasonable wear and tear excepted. The Lessee will supply all parts that are necessary to keep the Equipment in such a state. On weekly and monthly rentals Lessee shall be responsible for routine maintenance of equipment on a daily basis including checking oil and coolant where applicable. On chippers contact Lessor for grease points & knife maintenance. Lessee shall perform a daily visual inspection of equipment and notify lessor of any defects.

10. Lessor shall be notified if any repairs are to be made to the equipment. All repairs are to be made by the Lessor or his designated assignee. Return of broken machine to lessor shall be lessee’s responsibility. Upon return to the lessor, lessor shall inspect the machine and make the machine operational or provide a like kind replacement or pro-rate out remaining contract if the failure is not caused by neglect by operator. If lessor provides a working replacement upon notice of broken machine the contract shall continue and the amount of time lost from drop at lessor until lessor offers ready for pick up shall be extended onto the rental contract as extra time at no charge. Any repairs needed due to normal wear and tear shall be at Lessors expense. If damage is determined to be due to abuse, misuse or neglect the cost of repairs and lost time shall be paid by Lessee including labor, material, parts, shipping and service calls. Thrown tracks shall be lessee’s responsibility unless result of broken tracks or failed undercarriage system. Mechanics assistance if requested shall be charged at $140 per hour. Upon receipt of such invoices, the Lessee will immediately reimburse the Lessor for the actual expense of those repairs.

11. The Lessee may, but is not obligated to: enforce any warranty that the Lessor has against the supplier or manufacturer of the Equipment. The Lessee will enforce such warranty or indemnity in its own name and at its own expense.

Warranties

12. The Equipment will be in good working order upon delivery.

13. DISCLAIMER OF WARRANTIES. LESSOR, IS NOT THE MANUFACTURER OF THE EQUIPMENT AND MAKES NO WARRANTIES, EXPRESS OR IMPLIED, AS TO ANY MATTER WHATSOEVER, INCLUDING, WITHOUT LIMITATION, THE CONDITION OF THE EQUIPMENT, ITS MERCHANTABILITY, ITS DESIGN, ITS CAPACITY, ITS PERFORMANCE, ITS MATERIAL, ITS WORKMANSHIP, ITS FITNESS FOR ANY PARTICULAR PURPOSE, OR THAT IT WILL MEET THE REQUIREMENTS OF ANY LAWS, RULES, SPECIFICATIONS, OR CONTRACTS WHICH PROVIDE FOR SPECIFIC APPARATUS OR SPECIAL METHODS. LESSOR FURTHER DISCLAIMS ANY LIABILITY WHATSOEVER FOR LOSS, DAMAGE, OR INJURY TO LESSEE OR THIRD PARTIES AS A RESULT OF ANY DEFECTS, LATENT OR OTHERWISE, IN THE EQUIPMENT. AS TO LESSOR, LESSEE LEASES THE EQUIPMENT “AS IS”. LESSOR SHALL NOT BE LIABLE IN ANY EVENT TO LESSEE FOR ANY LOSS, DELAY, OR DAMAGE OF ANY KIND OR CHARACTER RESULTING FROM DEFECTS IN, OR INEFFICIENCY OF, EQUIPMENT HEREBY LEASED OR ACCIDENTAL BREAKAGE THEREOF.

Loss and Damage

14. To the extent permitted by law: the Lessee will be responsible for risk of loss: theft: damage or destruction to the Equipment from any and every cause. Lessor shall not be responsible for loss or damage to property, material, or equipment belonging to Lessee, its agents, employees, suppliers, or anyone directly or indirectly employed by Lessee while said material property, or equipment is in Lessor’s care, custody, control or under Lessor’s physical control. Lessee is encouraged to obtain appropriate equipment, material, or installation floater insurance against such risk of loss. Lessee and its insurers waive all rights of subrogation against Lessor for losses.

15. If the Equipment is lost or damaged: the Lessee will continue paying Rent: will provide the Lessor with prompt written notice of such loss or damage and will: if the Equipment is repairable: put or cause the Equipment to be put in a state of good repair: appearance and condition.

16. In the event of Total Loss of the Equipment: the Lessee will provide the Lessor with prompt written notice of such loss and will pay to the Lessor all unpaid Rent for the Term plus the Casualty Value of the Equipment: at which point ownership of the Equipment passes to the Lessee.

Ownership, Right to Lease and Quiet Enjoyment

17. The Equipment is the property of the Lessor and will remain the property of the Lessor.

18. The Lessee will not encumber the Equipment or allow the Equipment to be encumbered or pledge the Equipment as security in any manner.

19. The Lessor warrants that the Lessor has the right to lease the Equipment according to the terms in this Agreement.

20. The Lessor warrants that as long as no Event of Default has occurred: the Lessor will not disturb the Lessee’s quiet and peaceful possession of the Equipment or the Lessee’s unrestricted use of the Equipment for the purpose for which the Equipment was designed.

Insurance

21. THEFT/TOTAL LOSS INSURANCE WAIVER. Lessee will be charged mandatory 10% insurance surcharge unless Lessee has proof of commercial rental insurance coverage totaling more than equipment cost on file with Lessor. Insurance has a $2500 deductible per item to be paid by Lessee in the event of a claim. Lessee retains responsibility to take reasonable precautions to protect the equipment. Waiver does not cover equipment damage caused by lessee, vandalism, modification, misuse, abuse of damaged hoses, lights, gauges, tires, tracks, dents, and scratches. Lessee shall operate equipment in a manner consistent with the manufacturer’s instructions and shall not overload or exceed rated capacity. Insurance covers damage to equipment leased, not caused by negligence or misuse. Damages or losses that are not made known to the Lessor promptly may not be liable for coverage. Failure to properly secure equipment or promptly report theft to authorities and Lessor will leave Lessee responsible for loss. Liability of potential damages caused while operating equipment is assumed by Lessee and is not covered. Repairs shall be charged to the card on file. In house repairs are $140 per hour. Service calls related to improper use, towing fees due to stuck equipment, and cleaning fees for excessively muddy equipment shall also be charged to card on file.

Taxes

22. The Lessee will report and pay all taxes: fees and charges associated with the Equipment, with the use of the Equipment: and with revenues and profits arising out of the use of the Equipment: including, but not limited to, sales taxes, property taxes: and license and registration fees. The Lessee will pay any and all penalties and interest for failure to pay any tax, fee or charge on or before the date on which the payment is due. The Lessee will pay any and all penalties and interest for failure to report required information to any taxing authority with jurisdiction over the Lessee or the Equipment. If the Lessee fails to do any of the foregoing: the Lessor may: but is not obligated to: do so at the Lessee’s expense.

23. Notwithstanding any other provision of this Agreement: the Lessee will not be required to pay any tax: fee or charge if the Lessee is contesting the validity of same in the manner prescribed by the legislation governing the imposition of same, or in the absence of a prescribed form: in a reasonable manner. However: the Lessee will indemnify and reimburse the Lessor for damages and expenses incurred by the Lessor arising from or related to the Lessee’s failure to pay any tax: fee or charge: regardless of whether the Lessee is contesting the validity of the same or not.

24. If the Lessee fails to pay any and all taxes: fees: and charges mentioned in this Agreement and the Lessor: on behalf of the Lessee: pays the same: the Lessee will reimburse the Lessor for the cost upon notification from the Lessor of the amount.

Indemnity

25. Lessee shall indemnify Lessor against, and hold Lessor harmless from, any and all claims, actions, suits, proceedings, costs, expenses, damages, and liabilities, including attorney’s fees and costs, arising out of, connected with, or resulting from the equipment or the Lease, including without limitation, the manufacture, delivery, leasing, renting, control, use, operation, maintenance or return of the equipment. Lessee shall further indemnify lessor, and hold Lessor harmless from all loss and damage to the equipment during the rental period. Lessee recognizes and agrees that included in this indemnity clause, but not by way of limitation, is Lessee’s assumption of any and all liability for injury: disability and death of workmen and other persons caused by the operation, use, control, handling, or transportation of the equipment during the Rental Period.

Default

26. The occurrence of any one or more of the following events will constitute an event of default (“Event of Default”) under this Agreement:

Remedies

27. On the occurrence of an Event of Default: the Lessor will be entitled to pursue any one or more of the following remedies (the “‘Remedies”):

Additional Documents

28. Upon written demand by the Lessor, the Lessee will execute and deliver to the Lessor documents required by the Lessor to protect the Lessor’s interest in the Equipment including: but not limited to: the documents necessary to file a UCC financing statement.

Entire Agreement

29. This Agreement will constitute the entire agreement between the Parties. Any prior understanding or representation of any kind preceding the date of this Agreement will not be binding on either Party except to the extent incorporated in this Agreement.

Address for Notice

30. Service of all notices under this Agreement will be delivered by text or sent by registered mail or courier to the address on lease agreement.

Interpretation

31. Headings are inserted for the convenience of the Parties only and are not to be considered when interpreting this Agreement. Words in the singular mean and include the plural and vice versa. Words in the masculine mean and include the feminine and vice versa.

Governing Law

32. It is the intention of the Parties to this Agreement that this Agreement and the performance under this Agreement: and all suits and special proceedings under this Agreement: be construed in accordance with and governed: to the exclusion of the law of any other forum: by the laws of the State of Georgia (the “State”), without regard to the jurisdiction in which any action or special proceeding may be instituted.

Severability

33. If there is a conflict between any provision of this Agreement and the applicable legislation of the State of Georgia (the “Act”), the Act will prevail and such provisions of the Agreement will be amended or deleted as necessary in order to comply with the Act. Further, any provisions that are required by the Act are incorporated into this Agreement.

34. In the event that any of the provisions of this Agreement are held to be invalid or unenforceable in whole or in part: those provisions to the extent enforceable and all other provisions will nevertheless continue to be valid and enforceable as though the invalid or unenforceable parts had not been included in this Agreement and the remaining provisions had been executed by both Parties subsequent to the expungement of the invalid provision.

Service Range

35. We provide service assistance within a 30 mile radius. If you take equipment outside our local service area we cannot provide service assistance on site. Machinery must be returned for repair. Repairs due to the operator will be billed to the lessee.

General Terms

35. This Agreement may be executed by counterparts. Facsimile signatures are binding and are considered to be original signatures.

36. Time is of the essence in this Agreement.

37. This Agreement will extend to and be binding upon and inure to the benefit of the respective heirs, executors: administrators: successors and assigns: as the case may be: of each Party to this Agreement.

38. Neither Party will be liable in damages or have the right to terminate this Agreement for any delay or default in performance if such delay or default is caused by conditions beyond its control including: but not limited to Acts of God, Government restrictions, wars: insurrections, natural disasters: such as earthquakes: hurricanes or floods and/or any other cause beyond the reasonable control of the Party whose performance is affected.

Notice to Lessee

39. NOTICE TO THE LESSEE: This is a lease. You are not buying the equipment. Do not sign this Agreement before you read it. You are entitled to a completed copy of this Agreement when you sign it.

PLEASE CONSIDER THE FOLLOWING LIST OF SAFETY GEAR REQUIRED TO OPERATE EQUIPMENT

• Steel toe shoes.
• Gloves.
• Safety glasses.
• Ear plugs or muffs.
• Hard hat.
• Chainsaw chaps (when cutting or using chainsaw-equipped equipment).
• Harness (when work at height is required).