Whereas the customer on the reverse of this agreement will here further be referred to as CLIENT and Holzmueller Corp. will here further be referred to as HC:

1. CLIENT assumes all risk and responsibility for the proper selection of Equipment and the use and operation of Equipment and agrees to comply with all Federal, State, and Local laws and regulations, all industry standards, and shall be responsible for providing proper safety devices and equipment to safeguard users, operators, and bystanders from any possible risk from Equipment herein rented or sold. Items listed on the reverse of this contract are for the purposes of installation in safe and adequate facilities. CLIENT is responsible for becoming familiar with operating procedures, proper use, and care of the Equipment and will not under any circumstances alter the Equipment or use it for any purpose other than that for which it was manufactured or designed. HC reserves the right to refuse rentals, sales, and service at its sole discretion.

2. HC makes every effort to ensure proper working condition of the Equipment but does not guarantee Equipment against failure of any kind. Any and all failures of Equipment must be reported to HC’s service and repair department immediately via phone at 415-826-8383 x 263. No monies will be refunded or credited to CLIENT without immediate notification of failure to HC while agreement is in effect. Calls to the service department from the CLIENT regarding HC equipment failure, ensuing in a dispatch of a service technician, and which are found to be issues resulting from operator error, will result in a labor charge to the CLIENT. Equipment rental fees are to cover ordinary wear only. HC has the right to examine and test such Equipment upon its return to determine any unusual wear or damages whether from use, transport, or handling. HC reserves the right to retain all payments and deposits for a period, not to exceed (15) days after the termination of the applicable rental agreement for this purpose.

4. Reposession. Any failure of payment upon terms agreed or disregard of any of these listed conditions will terminate this agreement and will give HC the right to remove said Equipment from the location or site of use, whether or not affixed to the realty or any building and CLIENT will be responsible for all labor, handling, and all transportation charges in addition to the full amount of the actual and potential rental.

5. Returns. CLIENT agrees to return Equipment by date stipulated on reverse of this agreement. Rental extensions are at the sole discretion of HC. Failure to return Equipment by date stipulated will result in accrual of rental fees and possible replacement charges. CLIENT rental fees of Equipment will not apply toward replacement fees. Early returns of any or all unused rental items are not subject to refunded rental fees. Returns of sales items are limited to boxed or poly-bagged items within (30) days of purchase and will be assessed a restocking fee. All sales items must return unused an in original packaging and shall be accompanied by a copy of this contract and applicable sales receipt. Credits will be issued by check to the CLIENT within (15) days of the return and are at the sole discretion of HC. CLIENT assumes all responsibility for the proper selection, description, and manufacturer type of special order items and accepts all responsibility for items ordered or purchased by HC on behalf of the CLIENT. All sales of special order items are final and non-returnable.

6. Warranties. HC makes no warranties, expressed or implied as to any matter whatsoever including without limitation the condition of the equipment, its merchantability, or its fitness for a particular purpose.

7. Indemnification. CLIENT agrees to indemnify and hold harmless HC, its agents and representatives, from any and all claims, actions, suits, proceedings, and costs arising out of, connected with, or resulting from the Equipment, including and without limitation, the manufacture, item selection, delivery, possession, use, and operation of the Equipment.

8. Inspection. HC may at any time during regular business hours, and with prior notice, enter the premises where the Equipment is located for the purpose of inspecting the Equipment or observing its use. CLIENT will give HC immediate notice of any attachment, claim and delivery or any judicial process affecting any item of Equipment and will, whenever requested by HC, advise HC of the exact location of the Equipment. HC reserves the right to determine when and if HC personnel will be required to supervise operation of Equipment at the sole expense of the CLIENT.

9. Risk of Loss. CLIENT hereby assumes the entire risk of loss and damage to the Equipment from any cause whatsoever. No loss or damage to the Equipment or any part thereof will impair any obligation of CLIENT under this agreement which will continue in full force and effect. In the event of any damage, loss, theft, or destruction, or other casualty affecting any item of the Equipment, CLIENT at the option of HC will (a) place the Equipment in good repair, and working order; or (b) replace the Equipment with similar Equipment in good repair and working order; or, if the Equipment is determined by HC to be lost, stolen or destroyed beyond repair, CLIENT will pay HC the stipulated loss value as set forth on the front of this agreement, as well as all unpaid rental applicable to such item of Equipment.

10. Security Deposit. HC shall have the right to use the security deposit given by CLIENT hereunder to remedy any default under this agreement or to compensate HC for damage to the Equipment, up to or including the full replacement value. HC will notify the customer of any charges to the security deposit within fifteen (15) days of the termination of this agreement, provided LESSEE has fully performed all its obligations hereunder. The acceptance of the return of the Equipment will not be a waiver by HC of any claims it may have against CLIENT, including claims for latent damage of the Equipment.

11. Insurance. The CLIENT shall at the request of HC provide, at his own cost and expense, but for the benefit of HC, insurance on the property listed on the reverse of this form against loss, damage by fire, water, acts of vandalism, terrorism, or acts of God, with a reputable, qualified insurance company prior to taking possession of Equipment. If HC, by reason of such insurance shall receive any sum of money, such amounts may be retained and applied by it towards the repair or replacement of the Equipment, or it may remove the damaged Equipment and, in lieu thereof, substitute other Equipment of like kind and quality and any such Equipment whether repaired or substituted shall be subject to all terms, provisions, and conditions herein.

12. Ownership. The Equipment is, and will at all times remain, the exclusive property of HC. CLIENT will keep the Equipment free from any marks or labeling, which might be interpreted as a claim of ownership by any party other than HC. Without the prior written consent of HC, CLIENT will not (a) assign, transfer, or pledge this agreement, the Equipment, or any part thereof, or interest therein; or (b) sublet or lend the Equipment or any part thereof, or permit the Equipment to be used by anyone other than CLIENT or CLIENT’s employees.

13. Applicable Law. This agreement will be interpreted under the laws of the State of California as applied to agreements executed and performed wholly in California. CLIENT also agrees to pay all attorney fees and all reasonable court costs and all damages to HC upon failure of payment or collection of charges, and failure to perform under any of the provisions listed.

14. Time of the Essence. Time is of the essence in carrying out the terms, provisions, covenants and conditions contained in this agreement.