FarrWest Rental Agreement

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The following are terms and conditions that apply to the rental of equipment by the Customer from FarrWest Environmental Supply, Inc. (FarrWest). By accepting the Equipment furnished under this Agreement, the Customer whose name appears on this Agreement accepts and agrees to these terms and conditions. Any modifications to the Terms and Conditions must be in writing and signed by an authorized Manager of FarrWest.

1.0 RENTAL OF EQUIPMENT

FarrWest hereby rents to Customer, and Customer hereby hires and rents from FarrWest equipment for the term and at the rates agreed upon. The term “Equipment” includes all related Accessories, Manuals, and all other items delivered to the Customer Pursuant to this Agreement.

2.0 CONDITION, MAINTENANCE & REPAIR OF EQUIPMENT

2.1 FarrWest shall deliver the equipment to the Customer cleaned, calibrated, and in good working condition. For the purposes of this section 2 “Delivery” of the equipment will be deemed to occur upon the transfer of the equipment to the Customer or its agents, representative, or employee. Note that shipping, atmospheric, and environmental conditions may affect the calibration of the equipment. FarrWest recommends calibration of the equipment to manufacturer specification prior to use. If equipment is received not in good operation condition, defects or discrepancies in the equipment must be reported to FarrWest by phone or in writing by facsimile or email within two (2) hours of receipt of the equipment by the Customer, its agents, representative, or employee. Failure to make such notification will conclusively deem that the equipment was received as ordered, in good operating condition, accepted by the Customer, and full rental fees will be charged.

2.2 If the equipment is not received in good operating condition at no fault to the Customer, and the Customer advises FarrWest as provided in section

2.1 above, FarrWest shall (at its sole discretion) either repair equipment or supply replacement equipment. The obligation of FarrWest to repair or replace the equipment as provided herein, are Customers sole and exclusive remedies. In no event shall FarrWest be liable for “Back Charges”, direct, indirect, special, incidentals, or consequential damages, (including loss of profits) whether based on contract, any legal theory, or project down time.

2.3 FarrWest makes no warranty, expressed or implied, that the equipment is fit for any particular purpose.

3.0 PAYMENT TERMS

Rental will be billed when the rental Equipment is returned to FarrWest. Rentals to companies that do not have a line of credit with FarrWest will be paid in advance at the time of delivery of the Equipment. Rental charges will continue beyond the specified rental term until the Equipment is returned to FarrWest or Customer reimburses FarrWest for the replacement cost of the Equipment.

4.0 SHIPPING AND DELIVERY

All shipping costs, including cost of insurance, are payable by Customer. FarrWest will prepay and add to the invoice all shipping and handling charges. All costs associated with the return of the equipment are the responsibility of Customer. FarrWest will ship the equipment via ground service unless otherwise instructed by Customer. ALL RISK OF LOSS AND DAMAGE SHALL PASS TO CUSTOMER UPON DELIVERY OF EQUIPMENT AS DEFINED IN SETION 2.1 ABOVE. FarrWest shall not be liable for delays due to causes beyond its control including, but not limited to, Acts of Nature, Acts of Government, Labor Disputes, Delay in Transportation, Delivery, or Non-Delivery by FarrWest Suppliers.

5.0 RENTAL PERIOD

When equipment is shipped the billing period begins the day the shipment is received and ends the day the equipment is returned/shipped to FarrWest . FarrWest considers one-week rental to be five (5) working days, ie: Monday through Friday. When equipment is picked up, by the Customer, its agents, representative, or employee at a FarrWest facility the rental-billing period begins upon the hour of delivery. If the Customer returns the equipment the following day, within twenty-four (24) hours the time it was delivered, the Customer will be billed for a single day’s rental. Equipment returned after twenty-four (24) hours from delivery will be billed as a two (2) day rental. There is no proration for partial days.

6.0 TECHNICAL SUPPORT

Should Customer have difficulty with the operation of the rental equipment during the rental period, Customer agrees to contact FarrWest for instruction or diagnostic aid within two (2) hours of any apparent malfunction. At no time will FarrWest be responsible for return shipping charges for the rental equipment. Rental credit will be issued only if; (1) FarrWest receives notice of malfunction within two (2) hours; (2) the malfunction is not due to the Customer’s abuse, misuse, or unfamiliarity with the equipment; (3) the equipment is returned by overnight delivery service; and (4) FarrWest service department confirms that the equipment is in fact inoperable.

7.0 USE OF THE EQUIPMENT

7.1 (1) Customer agrees with respect to the use of the equipment only for the purpose for which it was intended by the manufacturer; (2) to use the equipment in a safe and proper manner; (3) To return the equipment to FarrWest at the end of the rental period in the same condition as when delivered to the Customer, reasonable wear and tear excepted; (4) Not to abuse the equipment or engage in any practice in connection with the operation of the equipment which might reasonably be expected to increase the cost of its maintenance and upkeep; (5) To permit only qualified agents, representatives, or employees of Customer to operate equipment and to maintain sole and absolute control over such operators; (6) To notify FarrWest in writing as soon as possible of any theft, fire, accident, or damage, or claims by third parties of litigation action against FarrWest or Customer involving the rental equipment; (7) Not to permit any alterations, additions, improvements, or modifications to the equipment.

7.2 RENTAL OF PUMPS & ACCESSORIES All pumps, (2” & 4”), and accessories have been thoroughly cleaned and checked to be in proper working condition upon delivery, pumps can experience failure or breakdown if not operated per manufacturer’s recommendations. Pumps should not be allowed to operate in sandy or silty environments. Pumps should only be operated when submersed. If a Redi FLO 2 pump is to be operated in any well larger than two (2) inches in diameter, a cooling shroud should be used to prevent damage due to overheating.PUMPS ARE NOT DESIGNED AND SHOULD NOT BE USED TO DEVELOP WELLS. FarrWest cannot control the field conditions under which the rental pumps are used and therefore cannot guarantee 100% runtime performance or against the possibility of cross contamination between wells or from prior rental use. Customer will be charged full rental rates unless notified of a failure beyond operator control within two (2) hours of pump failure. Any replacement of damaged motor pumps caused by misuse will be charged to customer in addition to the cost of rental.

8.0 CUSTOMER OBLIGATIONS

Customer warrants that it understands and is familiar with the field operation of the equipment. FarrWest is not responsible for project downtimes due to lack of operator experience or training. The equipment shall be returned to FarrWest in good condition and repair, wear from reasonable and proper use expected. Customer is responsible for damage to equipment due to abuse, misuse, or negligence and agrees to pay any charges to repair or replace equipment so damaged, along with any shipping charges. Repair rates will be charged at $65.00 per hour plus the cost of repair parts. Customer is responsible for loss or damage of the equipment from theft, fire, mysterious disappearance, loss in shipping, or any other cause. In accepting liability for the safe keeping of all rental equipment, Customer agrees to pay FarrWest the replacement cost of any new such equipment, which Customer is for any reason, unable to return to FarrWest at the end of the rental period.

9.0 DECONTAMINATION

Customer is required to protect the rental equipment from environmental contamination, and if necessary, to decontaminate the rental equipment. In cases where the equipment is exposed to regulated, hazardous, or toxic substances it is mandatory that FarrWest personnel be notified that substance may be present. Failure to decontaminate the rental equipment will result in a decontamination fee of not less than $65.00.

10.0 LIABILITY

Customer assumes all risk and liability for the loss or damage to the rental equipment, for death or injury to any person or property of another, and for all risks and liabilities arising from the use, operation, possession, or storage of the rental equipment prior to return of the equipment to FarrWest. Nothing in the Agreement shall authorize Customer or any other person or entity to operate any of the equipment so as to impose any liability or other obligation on FarrWest.

11.0 INDEMNIFICATION

Customer shall hold FarrWest along with any third party owner, harmless from and indemnify them against any and all claims of any nature whatsoever by reason of negligent operation, possession, storage, or shipment of the rental equipment.

12.0 DEFAULT

Upon a default by Customer of any of its obligations under this Agreement the Customer agrees as follows: (1) To immediately return all equipment to FarrWest: (2) Without legal process allows FarrWest right of access to any premises under control of Customer in order for FarrWest to take possession of the equipment: (3) If FarrWest elects to recover possession of the equipment, Customer shall remain liable to FarrWest for any damages resulting to FarrWest from Customers breach of this Agreement despite such recovery possession of the equipment with or without termination of this Agreement.

13.0 NOTIFICATIONS

Any required notice shall be given in writing to FarrWest Corporate Offices located at 108 Commercial Place, Suite 200 ~ Schertz, Texas ~ 78154. Facsimile is acceptable (210) 566-1897, Attention Rental Department. FarrWest shall provide notices to Customer at the address, telephone, and facsimile numbers noted on the Customer record.

14.0 ASSIGNMENT

Neither FarrWest nor the Customer may assign or transfer any rights, duties, or obligations herein without prior written consent of the other, and any purported attempt to do so shall be null and void.

15.0 OWNERSHIP

The rental equipment remains the property of FarrWest. Customer shall not remove, deface, or obscure ownership decals on rental equipment or Accessories.

16.0 PURCHASE RIGHTS

Customer has no purchase rights or purchase options under this Agreement.

17.0 WAIVERS

Should FarrWest choose not to exercise any of its rights that shall not constitute or be deemed a waiver or forfeiture of such rights.

18.0 GOVERMENTAL JURISDICTION

FarrWest will be notified in writing of any binding U.S. Government procurement regulations that will affect this contract. This Agreement shall be governed by the laws of the State of Texas.

19.0 ERRORS

Stenographic, typographic, and / or clerical errors in this Agreement are subject to correction and Customer hereby agrees to re-execute any document that requires correction or signature.

20.0 ENTIRE AGREEMENT

This Agreement constitutes the entire Agreement between FarrWest and Customer pertaining to the subject matter hereof and supersedes all prior and contemporaneous agreements, understandings, negotiations, and discussions, whether oral or written. Where conflict exists between the terms and conditions of this Agreement and any purchase order, work order, or other terms of the Customer, the terms and conditions of this FarrWest Agreement shall prevail.