or

Part 2-Liens, Encumbrances and Claims

The following is a complete and correct statement of the amount amounts of any and all indebtedness secured by liens or other encumbrances of any nature, legal or equitable, which are held any person, firm or corporation against the equipment, items Nos. 1 through

(Continue, if necessary, on the reverse side or on separate sheets.)

$9-16.5002-3 Outline of agreement for rental of third

party-owned contruction equipment.

Note: This form of agreement is for use where an ERDA prime cost-type construction contractor rents construction equipment (without operator) from a third party.

Whereas, the lessee has entered into a contract, dated

(hereinafter called the "construction contract"), with the United States of America (hereinafter called the "Government"), represented by the Energy Research and Development Administration hereinafter called "ERDA"), for the performance of certain construction work in connection with the construction_

at

and

Whereas, the lessor is the owner of certain construction plant and equipment (hereinafter called the "equipment"), listed on the attached Schedule 1 attached to and made a part of this agreement; and

Whereas, the lessee desires to rent the equipment for use in performing the construction contract:

Now, therefore, in consideration of the mutual covenants and conditions herein set forth, it is agreed as follows:

Article I--Equipment rented. The lessor agrees to furnish for use by the lessee in the performance of the construction contract the equipment itemized in Schedule 1 at time specified as follows:

Each item of the equipment shall be clearly marked with the identification number assigned to it on Schedule 1. The lessor and the lessee may from time to time amend Schedule 1 by deleting or adding items.

Article II--Payments. Payments shall be made by the lessee to the lessor at monthly intervals on invoices rendered by the lessor for:

(a) Rental. Rental of equipment, for rental periods determined in accordance with the article entitled "Rental Period" and at the rates set forth in Schedule 1 applied in accordance with the article entitled "Application of Rates."

(b) Transportation.

Transportation of equipment in accordance with the article entitled "Transportation."

(c) Repair. Maintenance, repair, and replacement of equipment to the extent provided in the articles entitled "Conditions of Equipment" and Protection of Equipment--Steps to be Taken in Event of Loss."

Article III--Application of rates. The rates set forth in Schedule 1 shall be applied in accordance with the following rules:

(a) Basis of rates. Rates are based upon one shift of 8 hours per day, 40 hours per week, or 176 hours per month (30 consectutive days).

(b) Apportionment of rates. The monthly rate and its pro rata shall apply to all rental periods of 1 month or more. The weekly rate and its pro rata shall apply to all rental periods of 1 week or more up to 1 month. The daily rate and its pro rata shall apply to all rental periods up to 1 week.

(c) Overtime. If the equipment is rented by the day, the rate for overtime is one-sixteenth (1/16) of the daily rate for each hour of use in any day in excess of 8 hours; if it is rented by the week, the rate for overtime is one-eightieth (1/80) of the weekly rate for each hour of use in any week in excess of 40 hours; and if it is rented by the month, the overtime rate is one-three hundred and fifty-second (1/352) of the monthly rate for each hour of use in excess of 176 hours in any one 30-consecutive-day period.

(d) Insurance. Rental rates include the cost of insurance or self-insurance covering loss of or damage to the equipment during rental periods as indicated in Schedule 1 and copy of policy attached. The lessor agrees to maintain this insurance coverage for loss damage to the equipment during the entire term of this agreement.

or

Note: When rates do not include the cost of insurance or selfinsurance, substitute the following paragraph:

"Rental rates do not include any factor representing the cost of insurance or self-insurance covering loss of or damage to the equipment during rental periods."

Article IV--Rental period. The rental period for which rental is payable for an item of equipment shall consist of a base period, beginning upon the date stipulated in a written notice from the lessee to the lessor that the lessee has accepted the item of equipment at the jobsite, and ending upon date stipulated in a written notice from the lessee to the lessor that use of the item of equipment is terminated, subject to the following additions, deductions, and conditions.

(a) In-transit time. There shall be added to the base period (1) the actual in-transit time of inbound transportation from the point of shipment to the jobsite, not exceeding the time required for such transportation by commercial carrier via the most expeditious routing available, of any item of equipment subsequently accepted by the lessee, and (2) the actual in-transit time of outbound return transportation from the jobsite to the original point of inbound shipment, or other destination at equal or less distance from the jobsite, not exceeding the time required for such transportation by commercial carrier via the most expeditious routing available, of any item of equipment whose use has been terminated by the lessee.

(b) Trial period. If initial inspection by the lessee discloses that the condition of an item of equipment is doubtful, it will not be accepted by the lessee without a trial period of operation to prove such item upon terms and conditions agreed upon by the lessor and the lessee and approved by ERDA. If the equipment is found unacceptable in the trial period, no rental, transportation, or other expenses will be due the lessor.

(c) Delay due to repairs. (1) The time required for repair of equipment shall be deducted from the base period if such repair is necessitated by willful misconduct or lack of good faith on the part of the lessor, if an individual, or the partners or corporate officers of the lessor, or a supervising representative of the lessor, or made necessary by defects not reasonable ascertainable on initial inspection by the lessee.

(2) If arrangements are made for the lessor to repair an item of equipment, the withdrawal of such item from work for necessary repairs (due to causes other than those mentioned in the preceding paragraph) subsequent to acceptance of the item by the lessee shall not interrupt the running of the base period unless the lessee or ERDA finds that due diligence in effecting the repairs or in returning the item to use has not been exercised. In the latter event the time found to have been excessive shall be deducted from the base period.

(d) Time for repairs on termination. In the event the lessee in accordance with the article entitled "Condition of Equipment" elects to effect repair or replacement of an item of equipment prior to scheduled return shipment of the item, the time required for such repair or replacement shall be added to the base period.

Article V--Transportation. Inbound transportation of equipment, f.o.b. cars from the original point of shipment to the jobsite, and outbound return transportation of equipment f.o.b. cars to the original point of shipment or to another destination selected by the lessor at equal or less distance from the jobsite, shall be at the expense of the lessee, subject to the following conditions:

(a) Limitation on return transportation. The lessee shall not bear any expense for outbound return transportation in excess of the amount paid for inbound transportation to the jobsite, except additional amounts approved by ERDA representing or equivalent to increase in freight rates applicable to the route to the original point of shipment.

(b) Limitation on long distance transportation. Transportation over a distance in excess of 500 miles shall be subject to the approval of the lessee and ERDA.

The expense

(c) Transportation by other than common carrier. borne by the lessee hereunder for transportation by a method other than common carrier shall be the actual expense of such transportation as shown by evidence satisfactory to the lessee and ERDA, but shall in no case exceed the amount which would be paid for such transportation by a suitable and available common carrier unless otherwise authorized by the lessee and ERDA.

(d) Loading and unloading. Only such costs of loading and unloading equipment as are incurred at the job site shall be borne by the lessee.

(e) Equipment not in required condition. The lessee shall not bear the expense of transportation of any item of equipment which arrives at the job site in a condition which does not fulfill the requirements of the article entitled "Condition of equipment" and which is not placed in the condition required under that article by the lessor at the lessor's expense within a reasonable time.

Article VI Condition of equipment (a) Condition on delivery. The equipment shall, on delivery at the job site, be in good operating condition to render efficient, economical and continuous service and shall be equipped with necessary and required safety devices according to ICC regulations and other applicable Federal and State laws. Each item of the equipment shall have been registered by the lessor at the lessor's own expense with all Federal, State, and local authorities requiring registration, and registration plates or other evidence of registration shall be displayed in accordance with the requirements of the registering authority. The cost of subsequent registration shall also be borne by the lessor. If any item of equipment on arrival at the job site is not in the condition required by this paragraph, its use on the work shall not be permitted unless and until it is placed in the condition required by this paragraph at the lessor's expense and within a reasonable time. If any such item is not placed in the condition required by this paragraph within a reasonable time the lessee may reject the item and require its removal from the job site, and in that event, the lessee shall not be liable for rental, transportation, or any other expense in connection with such item.

(b) Condition on the job.

Maintenance and repair necessary to keep accepted equipment in the condition required for its operation until use of the equipment is terminated by the lessee, and replacement (at the value agreed upon by the lessor and the lessee with the approval of ERDA at or prior to the time of acceptance by the lessee and set forth in the initial inspection report, less depreciation) of accepted equipment lost or destroyed during such time, shall be at the expense of the lessee. Except, however, such maintenance, repair, or replacement will not be at the expense of the lessee. Except, however, such maintenance, repair, or replacement will not be at the expense of the lessee if it is made necessary by loss or damage covered by any policy of insurance (or self-insurance), or caused by wilful misconduct or lack of good faith on the part of the lessor, if an individual, or the partners or corporate officers of the lessor, of a supervising representative of the lessor, or is made neccessary by defects not reasonably ascertainable on initial inspection by the lessee.

90-136 O-77-29