1. TITLE OF LESSOR AND OBLIGATION TO RETURN

Equipment is the property of Lessor and except as otherwise provided shall be returned by Customer in the same condition as received, ordinary wear and tear excepted, to the place from which rented on the day specified or sooner upon Lessor’s demand.

2. PAYMENTS AND RATES

Customer shall pay Lessor on demand at the office designated herein all rental, mileage, transportation, fuel, service and other charges in accordance with this Agreement, all sales and use taxes imposed in respect to Equipment and this Agreement, and Customer shall also be liable to pay interest as provided for herein together with Lessor’s legal costs on a solicitor and own client basis incurred in enforcing any terms of this Agreement.  The basic daily, weekly and monthly rental shall entitled Customer to a maximum of one-shift use (8 hours per day; 40 hours per week; 160 hours per month).  Use in excess of one shift will be payable at the hourly rate of 1/16^th of the daily charge (for a daily rental); 1/80^th of the weekly charge (for a weekly rental) and 1/320^th of the monthly charge (for a monthly rental) plus taxes, Lessor shall have a lien as allowed by law for charges incurred hereunder upon premises and improvements upon which Equipment is employed Rentals are F.O.B.  Lessor’s office designated herein unless otherwise specified.  Transportation charges from such location to destination and return and all loading assembling and dismantling charges shall be paid by Customer.

3. PERMITTED USER

Equipment shall be used solely in customer’s business and kept only at its place of business or job site, and shall not be moved without prior written consent of Lessor Equipment shall be used only within its rated capacity and by careful and competent personnel.  Customer shall maintain and provide, when requested, Lessor with records of personnel using and particulars of use of Equipment, Customer shall also notify Lessor if assistance is required.  Equipment shall Not be used or operated.

• to carry persons for hire
• to carry persons other than drivers or helpers employed by Customer, (unless authorised by Lessor on Page 1), who shall ride only within the cab, and then only if such carriage is lawful
• to transport property for hire, unless Customer obtains all permits and licences
• in violation of any laws or ordinance or in any speed contest, and
• for the carrying or hauling of explosives or other hazardous articles

Equipment is used in violation of any of the terms herein or the Rental Agreement is secured from the Lessor by any misrepresentation or if Equipment is used for any illegal purpose or in furtherance thereof it is declared that any use thereof is without Lessor’s permission.

4. SERVICE

Customer shall perform and pay for all normal periodic and other basic servicing, adjustments and lubrication of Equipment, including but not limited to, checking of Equipment before each shift, checking and maintaining crankcase, transmission and cooling systems daily, checking fire pressure and battery fluid and charge levels weekly.  If Equipment fails to operate properly or needs repair, Customer shall immediately ease using and notify Lessor.

5. DAMAGE TO EQUIPMENT INSURANCE

With respect to Equipment, all loss of or damage thereto from any cause whatsoever while on rental or in customer’s care, custody and control, whether or not due to fault of customer, including but not limited to Lessor’s negligence, fire, floor, theft, comprehensive losses, collision and upset, and Acts of God, shall be the sole responsibility of Customer and shall be paid Lessor promptly upon demand.  In any case Customer shall also be liable to the Lessor for loss and expense of Lessor including consequential loss if Equipment is used or operated without Lessor’s permission or in breach of the terms herein or is lost or damaged under any of the following circumstances.

(i)      use or operation of Equipment or improper loading with a load exceeding the rated capacity of Equipment or improperly securing such load or improper coupling,

(ii)     failure of customer to perform or pay for all normal periodic and other basic service, adjustments and lubrication of equipment,

(iii)    operation or use of Equipment in a manner inconsistent with the Manufacturer’s instructions,

(iv)    loss or damage to Equipment during periods of riot, strike or civil commotion,

(v)     reckless, careless or abusive operation or use,

(vi)    striking overhead objects, and any such use of operation, whether or not Equipment is damage, is a use in violation of this Agreement

The Customer shall keep the Equipment in good and substantial repair and condition and replace all missing, damaged or broken equipment or parts thereof with the Lessor’s products or such products approved by the Lessor in Writing and in default of doing so, the Customer shall permit Lessor to take possession of the Equipment or the damage or broken parts for the purpose of having repairs carried out.  The costs of repair shall be borne by the Customer together within the case of repairs by a third party at Lessor’s request an addition 15% over the cost of repairs

Rental shall continue during the time when the Equipment is under repair.  Customer further agrees, at Customer’s sole expense, to secure and maintain in force during the entire form of this Agreement, and so long as the Equipment is not returned, insurance satisfactory to Lessor for the benefit of Lessor against all the risk set out in this paragraph.  The amount of insurance shall be for the agreed replacement value of the equipment as stated on Page 1 in case of deficientcy in recovering from insurance company Customer remains liable to pay the difference between the insurance value of Equipment and insurance monies actually received, by the Lessor.  Lessor may at its absolute discretion claim from Customer all losses suffered without first resorting to the insurers.

6. PUBLIC LIABILITY INSURANCE

Customer shall at its expense for so long as the Equipment is not returned maintain in force a policy of public liability and property damage insurance with liability limits and subject to terms approved by Lessor against its liability for damage sustained by any person or persons, including but not limited to employees of Customer, as a result of the maintenance, possession, ownership, use, operation, storage, erection, dismantling, servicing or transportation of such Equipment.  Customer shall, on demand, furnish Lessor a certificate of such insurance, which may be cancelled or modified except with written consent of Lessor.  Customer agrees to abide by the provisions of said policy and to notify Lessor and insurer of any accident or occurance involving Equipment immediately by telephone and thereafter to Promptly report to them in writing all information relevant thereto Customer, its agents and employees shall co-operate fully with Lessor and Customer’s insurer in the investigation, prosecution and/or defence of any claim or suit and shall do nothing to impair or invalidate the applicable insurance coverage.  Lessor’s acquiescence in Customer’s certificate(s) of insurance shall not be a waiver of Customer’s insurance obligations hereunder.

7. INDEMNITY

Customer shall defend, indemnify and hold harmless Lessor, its subsidiary and affiliated companies, their officers, agents and employers, against all loss, liability and expense including legal fees by reason of bodily injury including death and property damage, sustained by any person or persons, including but not limited to employees of Customer or any other claim or demand arising out of or as a result of the maintenance, possession, ownership, use, operation, storage, erection dismantling, servicing or transportation of Equipment, whether such bodily injury, death or property damage are due to claimed to be due to any negligence of Lessor, employees or agents of Lessor or any other person.

8. COMPLIANCE WITH LAWS

Customer shall at its expense comply with all state, federal and local laws and regulations affecting Equipment and its operation, erection, design and transportation, including licensing and building code requirements, and shall defends, indemnify and hold Lessor harmless from all loss, liability or expense resulting from actual or asserted violations of any such loss, requirements or regulations.

9. CUSTOMER TO ASSUME ALL RISKS

This is a contract of rental only, is not assignable by Customer, and Customer shall not be deemed and agent or employee of Lessor for any purpose.  Customer shall not suffer any liens or encumbrances to attach to Equipment and shall defend, indemnity and hold Lessor harmless from all loss, liability and expense by reason thereof.  Use of Equipment by other than Customer or its employees approved in writing in advance by Lessor shall be at Customer’s sole risk.  Lessor shall not be liable for loss or damage to any property left, stored, loaded or transported by Customer or any other person in or upon Equipment, whether or not due to the negligence Lessor, its agents and employees.

• At any time, whether Equipment than be in the physical possession of Customer, or Lessor or anyone else or
• At any place, including without limitation any of Lessor’s garages or locations.

Customer hereby assumes all risk of such less or damage and waves all claims against Lessor by reason on thereof, and agrees to indemnify and hold Lessor, its agents and employess, harmless from and against all claims arising out of such loss or damage and from and against all loss, liabilities and expense coused or arising out of Customer’s failure to comply with the terms of this Agreement.

10. NO LIABILITY FOR LESSOR

Lessor will in no event have liabilities for damage as a result of the supplying of Equipment or its use or the furnishing of any service hereunder.

11. ENTIRE AGREEMENT/TIME OF ESSENCE

This instrument expresses the entire Agreement between the parties. Customer execution of their instrument and/or acceptance of delivery of any part of Equipment to be furnished hereunder will constitute Customer’s acceptance of the provisions contained herein and the exclusion of any terms and conditions otherwise stated by Customer or contained in Customer’s purchase documents which conflict with or limit the provisions contained herein. Time shall be of the essence of this Rental Agreement insofar as it relates to obligation or requirements to be performed by Customers.

12. NOTICE OF LOSS, THEFT OR DAMAGE

In the event of a loss, theft or damages to Equipment, Customer agrees to notify Lessor immediately by telephone and thereafter  a promptly report in writing to Lessor and the public authorities (where required by law or by Lessor or in order to inform insurance) all information relating thereto. Customer shall cause its agent and employees to give Lessor and public authorities proper and full information and assistance in the investigation and prosecution of any matter resulting from said loss, theft or damaged.

13. TERMINATION AND CONSEQUENCES

If Customer fails to pay any sum due herein or fails to observe or perform any obligation as term or provision or his part to be observed or perform or commit or suffers on act of bankruptcy or being company, any step taken or to have Customer wound up or a distress or execution is threatened or levied upon or against Customer or Equipment or do or permits  any act endangering safety of equipment or if Lessor shall deem itself in secure by any change of circumstances relating to Customer then in each and every such case Lessor can forthwith terminate this agreement for all purposes and retake possession of Equipment and for this purpose, Lessor may enter premises where Equipment is located and render inoperative or remove same with or without process of law and without notice or liability to Customer. Termination shall be without prejudice to any remedies or claims which Lessor other wise has under this Agreement and customer shall pay.

• arrears of rent due as at date of termination

(b)  any other sum payable under thia Agreement

(c) all expenses incurred by Lessor in tracing or retaking the Equipment or for enforcing Lessor’s right hereunder

(d) Lessor’s legal cost

14. PRIOR INSPECTION, WARRANTIES AND EXCLUSIONS

When provided to Customer, Equipment is in good mechanical condition. Customer shall examine Equipment promptly delivery and promptly notify Lessor of any evidence that Equipment is not in such condition. If at any time during this Agreement provided Equipment is used on mainland Singapore Equipment is found by Customer not to be in good mechanical condition as a result of conditions not the responsibility of or caused by breach, fault, or negligence of Customer, employee, agents or  independent contractors of Customer’s (including but not limited to damage by collision impact or failure of Customer to service, adjust and lubricate Equipment as required by Article 4 ), Customer will notify Lessor whereupon Lessor will then at its option.

( a ) repair or replace Equipment within a reasonable time during Lessor’s normal working hours, the rental to continue running during Equipment “ down “ time, or

( b ) remove Equipment and terminate this Agreement and refund rental charges, if any for the unexpired Agreement term less whatever is due Lessor for damage to or maintenance of Equipment which is the responsibility of Customer.

Customer agrees to provide full access to Equipment to Lessor’s representative so as to enable Lessor to meet its responsibilities hereunder. Notwithstanding the previous paragraph, Customer agrees to indemnify Lessor, its subsidiary and affiliated companies and their officers, agent and employees to the extent provided in the other officers, agent and employees to the extent provided in the other terms and conditions of this Agreement. The foregoing is lieu of :-

( a ) all warranties express, implied or statutory, including, but not limited to, the implied warranty of merchantability and the implied warranty of fitness for a particular purpose.

( b ) all obligations or liabilities on the part of Lessor for damage, including,but not limited to indirect, incidental, consequential or special damages arising out of or in connection with the leasing, maintenance, use or operation, storage, erection, dismantling or transportation of Equipment.

15. EXCUSE FOR NON PERFORMANCE

Lessor will not be liable for infringement of any type resulting from the leasing, performance or use of Equipment and services provided here under. Any failure of performance by Lessor  which is due to causes beyond Lessor’s control, including but not limited to acts of civil or military authority, Acts of God, labour difficulties, failure of transportation and delays of supplies shall not be deemed to be a default by Lessor.

16. INTEREST CHARGES

Should Customer fail to pay any sum to Lessor  when due, Customer will pay Lessor interest on such delinquent payment at the  rate of 24% per annum until payment therof, such interest to run from day to day and to accure after as well as before any judgement.

17. RETURN OF EQUIPMENT

Customer agrees to return Equipment with full fuel tank(s).  If Customer returns Equipment with the fuel tank(s) less Customer shall pay to the Lessor a sum equal to the Lessor’s posted refuelling charge at the Lessor location where Equipment returned for the number of gallons that the tank(s) is (are) short at the time of return Customer further agrees to pay for all the expenses if the Equipment becomes stuck in mud or in any other manner.

18. RECOVERY BY LESSOR

Lessor shall have the right to issue and circulate theft notice, cause warrants to be issued for the taking into custody of Customer, the agent, partner of employee, and/or take any other steps which Lessor shall reasonable deem necessary to recover Equipment which is not returned at the time specified herein or sooner as permitted by the terms of this Agreement.  Customer hereby releases Lessor from, and agrees to indemnify Lessor against all claims for damages or losses which Customer or any other party may sustain as a result of any action taken by Lessor under the preceding certain.  All charges are subject to final audit.

19. NO WAIVER

Any relaxation, forebearance, delay or indulgence given by Lessor in respect of the enforcing of any term of this Agreement or giving of time by Lessor to Customer shall not prejudice the rights, or powers of Lessor in this Agreement and any waiver by Lessor of a breach shall not operate as a waiver of subsequent of continuing or recurrent breaches.

20. SERVICE OR NOTICE

Any notice demand or originating process to the Customer under, pursuant to or arising out of this Agreement may be served upon the Customer personally or left at or sent  by post to the Customer’s last known address or registered office and if at such address shall take effect from the time of such leaving and if sent by post be conclusively deemed to have been received by the Customer within forty-eight hours after the time of posting.

Any notice required to be given by the Customer under this Agreement shall be in writing and left at or sent by prepaid registered post to the Lessor at the address stated in this Agreement of such other address as may from time to time be notified to the Customer.

21. ASSIGNMENT

The Lessor shall be entitled to assign its right, benefits and interest under this Agreement.

22. LAW APPLICABLE

The law applicable to this Agreement is the law of Malaysia.