GENERAL CONDITIONS OF RENTAL OR SALE TRANSACTION

DEFINITION
The word OWNER, as used hereafter refers to International Boring Inc., or its assigns with respect to any sale, contract to any sale, contract of sale, rent-purchase or rental transaction as reflected on the reverse side hereof. The word CUSTOMER refers to any person, firm or corporation, whether one or more, negotiating the transaction referred to on the reverse side hereof. The word EQUIPMENT as used hereafter refers to all goods, wares and merchandise listed on the reverse side hereof. The word TRANSACTION refers to any sale, contract of sale, rent-purchase or rental, or any combination thereof, of the goods, ware and merchandise listed on the reverse side hereof.

LIABILITY
Customers shall defend, indemnify and hold harmless owner from and against any and all losses, liabilities, damages, injuries, claims, demands, cost, and expenses including attorney's fees, arising out of or connected with the possession, use, operation or installation of the listed equipment or any of the same, including but not limited to any and all claims of or liabilities to third parties arising out of the abandonment, conversion, secretion, concealment or unauthorized sale of any of the listed equipment by customer or its agents or employees, or the confiscation of the same. Further, customers shall immediately report any accident involving said equipment to owner and deliver to owner a true copy of every process, pleading, notice or paper of any kind received by customer or any employee thereof relating to any claim, suit or proceeding connected with any accident or event involving any of the listed equipment, and neither customer nor his agents or employees shall aid or abet the assertion of any such claim, suit or proceeding and customer shall cooperate fully with owner and its insurer in investigating and defending same.

TITLE
So long as title to any of the above listed equipment shall remain in owner, customer agrees to accept full responsibility and liability for any freezing, fire, theft, wind storm, hail storm, flood, riot, insurrection, strike, explosion, upset, damages while being transported, (loaded or unloaded), or for any cause whatsoever other than ordinary wear and tear, and all damages to listed equipment due to improper operation, maintenance and/or lubrication; to return all equipment and accessories to owner's warehouse, in as good condition as when received, ordinary wear and tear expected, upon demand; to pay for repairs or replacements of all parts damaged by misuse, or all other extraordinary damage done; to notify owner if the listed equipment, or any portion thereof is in use for more than eight hours in one day, fifty-six hours in one week, or two hundred forty hours in one month, and to pay owner, a pro-rata portion of any applicable rental rate for the extra use of said equipment; to hold owner free and harmless for all taxes and other public or private charges against or upon listed equipment, whenever and wherever levied, due to its use beyond the limits or Harris County, Texas; to comply with and conform to all laws, ordinances and regulations relating to the possession, use, maintenance or installation of said equipment, and to save owner harmless against actual or asserted violations thereof and pay all cost and expenses of every character occasioned by or arising out of such use; not to sell, assigned, transfer, sublet or part with the possession of said equipment either directly or indirectly; not to permit or commit any act whereby said equipment or any part thereof shall or may be seized, taken by execution, attached, removed, destroyed or injured; that owner shall not be liable for loss or damage to any property of customer or any other person which may have been in on, or attached to any of the listed equipment either before or after its return to owner whether or not related to the negligence of owner or its agents, servants, or employees and customers shall assume all risk of such loss or damage, waive all claims thereof against owner, and defend, indemnify and hold owner harmless from all claims arising out of such loss or damage, that if any of the listed equipment is returned to owner at any place other than owners address as shown on the reverse side hereof, or at a place designated by owner, to pay to owner a reasonable return service charge; that during the term of any rental or rent-purchase owner may demand the return of all or any portion of the listed equipment at anytime, and if in owner's judgment such demand might not be complied with, owner may repossess said equipment and terminate the rental or rent-purchase thereof without liability for any loss or damage which customer may sustain as a result of such demand, termination or repossession; that owner.s acceptance of partial or delinquent payments, or failure of owner to exercise any right or remedy, shall not be a waiver of any obligation of customer or right of owner, or constitute a waiver of any other similar default subsequently occurring, that customer shall be in default, hereunder upon his failure to comply with or perform any one or more of the above covenants or agreements or upon customer's death, dissolution, termination of existence, insolvency, business failure, appointment or a receiver for any part of the listed equipment, assignment for the benefit of creditors or the commencement of any proceeding under any bankruptcy or insolvency law by or against customer or guarantor or surety for customer, that without limitation of any other provision of this agreement, customer shall be solely liable for and shall indemnify and hold owner harmless from all fines, penalties and forfeitures imposed under any federal, state, municipal or other statute, law, ordinance, rule or regulation; that so long as he shall not be in default hereunder, customer shall have exclusive possession, control and use of the listed equipment for the entire period of any contracts of sale, rent-purchase or rental, and customer shall have completely assumed full responsibility to the public and any regulatory body having jurisdiction.

REPOSSESSION
In case of default of any of the terms of this agreement, owner, its agents, servants or assigns, may at its option enter the premises where listed equipment is used or any premises where said equipment may be found and remove same therefrom, without notice or demand, and without being guilty of any trespass or wrong, and owner shall not be liable for any damages because of such removal of said equipment, and customer agrees to pay all expenses incident to said removal. Further, customer agrees to pay an additional fifteen percent of any amount of money due and unpaid tom owner, as a collection charge, in the event of any default in payment whereby it becomes necessary for owner to place customer's account in the hands of an attorney for collection.

MISCELLANEOUS
Both owner and customer agree that time is of the essence hereof and that all rights and remedies herein contained are accumulative and not alternative; and the parties further agree that performance and payment hereunder shall be made in Wichita, Wichita County, Texas and that it is in their intention and covenant that this agreement and performance and payment hereunder and all its suits and special proceedings hereunder be construed in accordance with and under and pursuant to the laws of the State of Texas, and in any action, special proceeding or other proceeding that may be brought arising out of, in connection with, or by reason of this argument, the laws of the State of Texas shall be applicable and shall govern to the exclusion of the law of any other forum, without regard to the jurisdiction in which any action or special proceeding may be instituted, and further that venue shall rest in Wichita County, Texas, or any other county in the State of Texas to be selected by the owner.

RENTAL CAPTURE POLICY
0-60 DAYS (0-2 MOS) .............................................80% MONTHLY RENT APLLIES
61-90 DAYS (2-3 MOS) ...........................................70% MONTHLY RENT APPLIES
91-120 DAYS (3-4 MOS) .........................................60% MONTHLY RENT APPLIES
121-150 DAYS (4-5 MOS) .......................................50% MONTHLY RENT APPLIES
151 DAYS & BEYOND ...................................................................................NONE


DISCLAIMER
I have inspected the above described equipment and found it in good working order and without defects. I have received instructions on the operation of this equipment and assume full responsibility of this equipment.

RENTAL CHARGES COMMENCE ON THE DAY OF SHIPMENT AND CEASE ON THE DAY OF RETURN TO OUR WAREHOUSE IN HOUSTON, TEXAS. THERE IS A MINIMUM CHARGE ON ALL RETURN EQUIPMENT AND NO RENTAL EQUIPMENT CAN BE CAPTURED WITHOUT IBI'S AUTHORIZATION. NOMERCHANDISE IS SUBJECT TO RETURN FOR CREDIT OR ADJUSTMENT WITHOUT IBI'S AUTHORIZATION. I AGREE TO THESE TERMS.