CONDITIONS OF HIRE - AIRCON RENTALS PTY LTD

1. Definitions In these conditions of Hire:

a) The "Owner" is Aircon Rentals Pty Ltd;
b) The "Hirer" is the person or company identified on the front hereof;
c) "Equipment", unless a contrary intention appears, includes all goods, articles, air conditioning and equipment, supplied by the Owner to the Hirer for a fee pursuant to this contract;
d) "Offhire Number" is the number given to the Hirer when the Hirer notifies the Owner in writing or by phone that the equipment is available for return and the location at which it shall be available;
e) The "Period of Hire" shall:--

i) commence from

A) the commencement date and time shown overleaf; or
B) the time the Equipment is delivered to the Hirer, whichever is the later;

and ii) cease

A) when the equipment is returned to the Owner (either on the date and at the time specified overleaf or 24 hours from the date of commencement of the Period of Hire); or
B) at the time an "Offhire" number is given; or
C) on the Owner repossessing the Equipment pursuant to Condition 7 of these Conditions.

2. Use of Equipment

a)

i) The Hirer shall at all times use the Equipment in a skilful and proper manner and shall at his own expense service and clean the Equipment and maintain the Equipment in good and substantial repair and condition, reasonable wear and tear excepted;
ii) The whole or any part of the cost incurred by the Owner arising out of any failure by the Hirer to properly clean the Equipment will be added to the invoice total.

b) Before using the Equipment the Hirer shall examine the Equipment and satisfy himself as to the quality and fitness for the purpose of the Equipment. If in any way the Equipment is defective or unsuitable for the purpose of the Hirer:-

i) it shall be returned immediately to the Owner with the written notice of the defect or unsuitability; or
ii) the Hirer shall notify the Owner who shall exchange the Equipment.

c) The Hirer acknowledges that he is not relying upon any representations made by or on behalf of the Owner in respect of the Equipment or its performance.

3. Freight

The Hirer shall be responsible for freight and other charges whether incurred by the Owner or the Hirer in respect of the delivery and return of the Equipment PROVIDED THAT the Owner shall be responsible for freight and other charges in respect of the Equipment where it is returned due to a breakdown or failure and not by the Hirer's negligence or misuse.

4. Damage to Equipment and Loss of Equipment

a) During the Period of Hire the Hirer shall be responsible for any loss or damage to the Equipment whether such loss is caused by the negligence of the Hirer or any person under his control or for any other reason whatsoever except that caused by reasonable wear and tear, PROVIDED THAT where an "Offhire" number has been given the Hirer's responsibility shall continue until the Equipment is picked up by the Owner or for 72 hours from the receipt of the "Offhire" number, whichever is the earlier.

b) Where the Hirer is responsible for the damage to or loss of the Equipment the whole or any part of the cost of replacement or repair to the Equipment will be added to the invoice total.

c) Where Equipment is not returned to the Owner by the Hirer, or an "Offhire" number is not sought from the Owner, within 2 days of the expiration for the Period of Hire the Owner may forfeit the Deposit and shall be at liberty to immediately notify the police of the circumstances and at the cost and expense of the Hirer recover possession of the Equipment (to which recovery the provisions of clause 7 (b) & (c) shall apply) and may take any civil or criminal action as it deems necessary for the recovery of possession of the Equipment or the current list price of the Equipment at the commencement of the Period of Hire. The Owner shall not be responsible to the Hirer for any loss or damage, injury, fines or costs incurred or sustained by the Hirer in respect of any costs, losses or damages arising from such actions.

d) The Hirer indemnifies the Owner in respect of all actions, claims, suits, demands or expenses arising out of or in connection with the use of the Equipment by the Hirer or any person under his control during the Period of Hire.

5. Hiring Charges

Hiring charges at the rate specified overleaf shall commence from the commencement of Period of Hire and shall continue until the Period of Hire ceases.

6. Breakdown and Damage to Property of and Injury to Third Parties

a)

i) In the event of a breakdown or failure of Equipment or defect in the Equipment becoming apparent during the Period of Hire, the Hirer shall return it immediately or notify the Owner.
ii) The Hirer shall not repair or attempt to repair or cause any repair to be made to the Equipment without the prior consent of the Owner.
iii) If the breakdown or failure is caused by reasonable wear and tear or a defect in the Equipment at the commencement of Hire, and was not caused or contributed to by misuse or negligence of the Hirer or any person under his control, the Period of Hire shall cease on return or notification to the Owner.

b) In no event shall the Owner be responsible for any expenditure, damage, sum for delay inconvenience or loss incurred by the Hirer (and including no liability for any consequential losses) arising out of any breakdown or failure or any defect in the Equipment whether caused by fair wear and tear, lack of repair, negligence or any other reason whatsoever.

c) No conditions or warranties as to fitness for purpose, merchantable quality, correspondence with the description or otherwise shall be implied in these Conditions of Hire except to the extent that any condition or warranty may be included or be implied by statute and may not be excluded by agreement. Any condition or provision inconsistent with such implied condition or warranty shall be of no force and effect to the extent of that inconsistency. The liability of the Owner for a breach of a condition or warranty implied in this Agreement by the Trade Practices Act, 1974 (other than pursuant to s.69 thereof) shall be limited to the replacement of the Equipment or the supply of equivalent Equipment.

7. Termination by the Owner

a) The Owner may notwithstanding the specified Period of Hire or any waiver of some previous default by the Hirer terminate this Agreement and repossess the Equipment:-

i) if the Hirer shall fail to pay any hiring charges within two days of the due date; or
ii) if the Hirer does or permits any act or thing to be done to the Equipment by way of which the Owner's right in the Equipment may be prejudiced; or
iii) if the Hirer should become or is made insolvent or bankrupt or makes any arrangement or composition with his creditor or should any order be made or resolution passed for its winding up;
iv) if the Hirer commits any breach of these Conditions of Hire.

b) For the purposes of repossessing the Equipment the Owner may enter into or upon any premises where the Equipment may be to recover the Equipment from the Hirer, without prejudice to the rights of the Owner and recover from the Hirer in respect of any claims, damages or expenses arising out of any action taken under this Clause.

c) On the Owner repossessing the Equipment and determination of the Period of Hire shall be without prejudice to any claim or demand the Owner may have against the Hirer in respect of any matter or thing arising out of the hire of Equipment AND the Hirer shall pay to the Owner hiring charges at the rate appearing overleaf for the Period of Hire up to the time of repossession.

8. Assignment

The Hirer shall not sell, transfer, assign, part with possession, mortgage, charge, encumber or deal in any other way with the Equipment or any right under these Conditions of Hire without the prior written consent of the Owner.

9. Damage Waiver

a) any sum in excess of 10% of the list price of the Equipment at the commencement of the Period of Hire in respect of any Equipment.

This waiver shall not apply to damage to Equipment in the following circumstances and the Hirer shall be responsible for and indemnify the Owner without limit against any loss or damage where:

a) in the case of all types of equipment:-

i) damage resulting from overloading, exceeding rated capacity, misuse, abuse or improper servicing of Equipment;
ii) damage caused by misappropriation or wrongful conversion by the Hirer or its employees, servants, independent contractors or agent or by any other person to whom the Equipment is entrusted by the Hirer;
iii) damage caused by the use or operation of Equipment in contravention of any of these Conditions of Hire;
iv) damage caused by the use or operation of equipment in violation of any statue (Commonwealth or State) or any regulation or by-law thereunder;
v) damage to accessories;
vi) damage to Equipment occurring for any reason whilst located, used, unloaded, transported on, over or adjoining water including, without limiting the generality hereof whilst located, used, loaded or transported over or on wharfs, bridges, barges and vessels of all kinds;
vii) the Equipment is used for a purpose for which it was not designed.

10. Payment of Charges

The Hirer shall pay the Owner on determination of the Hiring Period the following:-

i) in the case of all types of Equipment the Hiring charge;
ii) the amount of any loss or damage to the Equipment, subject to these Conditions of Hire;
iii) the amount of levies, charges or like charges paid or payable by the Owner to any government body in respect of use of the Equipment;
iv) the cost of freight and other charges incurred by the Owner or the Hirer in respect of delivery or return of the Equipment; and
v) any costs incurred by the Owner in repossessing the Equipment in accordance with these Conditions of Hire.

11. Whole Contract

Any previous negotiations, understandings, written or oral representation, warranties, memorandum or commitments in relation to the Equipment are superseded by these conditions and no amendment to these Conditions shall bind the parties unless in writing and executed by or on behalf of the Owner. Any duplicate or replacement of the Invoice and Conditions of Hire issued to the Hirer after 14 days from the date of this invoice in respect of the hire of Equipment shall be deemed to be signed by the Hirer.

12. New South Wales Law

This Agreement should be governed by and construed in accordance with the laws in force in New South Wales and the parties submit to the jurisdiction of the Courts of that State.