Equipment Rental Agreement

The rental terms and conditions set forth in this agreement shall constitute the full and complete contract between KNR Rentals, Inc. (DBA OBX Beach Toy Rentals, located at 821 Ocean Trail Corolla, NC), hereinafter called the Lessor, and the undersigned, hereinafter called the Lessee, and no other terms or warranties, expressed or implied, shall alter the strict meaning and understanding of this agreement. Should any condition herein be in violation of a statute, such violation shall not invalidate the entire contract but only the portion, which is in violation of the statute.For the consideration set forth above, the Lessor agrees to and does herewith provide for the sole and exclusive use of the Lessee the above mentioned item, referred to in the contract as the vehicle. Lessee agrees that he/she shall hold forever harmless the Lessor, it’s agents, employees and officers from any and all claims arising out of the rental of this vehicle from any cause whatsoever.IT IS EXPRESSLY UNDERSTOOD BY AND BETWEEN THE PARTIES TO THIS AGREEMENT THAT:1. The use of this vehicle is inherently dangerous and could result in severe personal injury and/or death. Therefore, the Lessor is not responsible for any personal injury or death resulting from the use of any vehicle rented to the Lessee. The Lessee shall be solely responsible for any personal injury caused or sustained while using or in possession of the vehicle. The Lessee shall waive any claims and have no recourse whatsoever to the Lessor or any employee of Lessor for any money damages to the Lessee or any other party.2. The Lessee agrees that the vehicle will not be used, loaned, entrusted to or operated by anyone: A) Who has obtained the vehicle using false or misleading information or B) Who is not capable of safety driving the vehicle due to alcohol, drugs, or otherwise or C) To transport people or property for compensation or D) In any race, training activity, contest or illegal purpose or E) To push or tow any vehicle or object or F) In any abusive or reckless manner or on other than regular roadways. NO BEACH RIDING, STAY ON ROADWAY AT ALL TIMES and G) other than the person renting the vehicle. Only the renter is considered an authorized user of this vehicle by its owner and the vehicle will be considered stolen if operated by, appropriated by loaned/entrusted to, or found in the possession of any other person in accordance with North Carolina Statute. Use of this vehicle by anyone other than the renter will result in immediate termination of the rental and security deposit forfeited. There will be no refunds made for unused time.3. The Lessee agrees that (s)he is fully responsible for all loss if this vehicle is/are lost, stolen, destroyed. In the event of a loss, Lessee will pay the full value of such lost or stolen vehicle, which the Lessee agrees will not exceed sixteen thousand eight hundred dollars ($16,800.00).4. Lessee agrees to immediately pay for any and all damaged or missing parts or components or rented unit with deposit. Scratched, bent, cracked, or in any way altered/damaged parts and/or components will be replaced with new. Charges will include costs of parts, labor and sales tax. Lessee assumes liability for and agrees to INFORM LESSOR OF ANY PARKING VIOLATIONS AND PAY THEM UPON RETURN OF VEHICLE. A $150.00 administration fee will be added to unpaid violations. Lessee agrees to pay extended rental fees of $500/day until such a time as repairs are completed to any vehicle damaged while in the possession of the Lessee, regardless of fault. Lessee agrees to pay for extended rental time with the 

deposit and authorizes Lessor to charge Lessee’s credit card any additional monies to cover extended rental time as calculated by Lessor. Thirty days extended rental time will be applied to lost/stolen vehicles.5. The Lessee is aware that the rental of a vehicle INCLUDES NO INSURANCE OF ANY KIND and agrees to indemnify Lessor for any loss to the Lessee’s person or property or to the person or property of any person with whom the Lessee may have contact with during the term of this agreement. Further, the Lessee agrees to defend and hold harmless the Lessor, its agents, employees and officers from any suits, claim or claims brought or asserted by: reason of Lessee’s use or operation of the vehicle; any person to whom the vehicle is loaned, entrusted to, or stolen by; any third party; and to pay all costs, liens, penalties and attorney’s fees resulting therefrom, that may be levied against the Lessor arising out of Lessee’s use of the vehicle or any person vehicle is loaned or entrusted to, stolen by, or any third party; including loss or damage due to theft, fire, accident or any other cause whatsoever.6. Lessee shall not allow more than two persons on/in the vehicle at any time. The Lessee MUST NOT GO ON DUAL HIGHWAYS or any roadway with a posted speed limit greater than 35mph and abide by all established traffic regulations.7. Lessee hereby warrants that (s)he is not pregnant and WILL NOT PERMIT ANY PREGNANT PERSON ON/IN THE VEHICLE; and,8. Any rider or passenger must wear a helmet which is provided by the Lessor or their own helmet that must be DOT approved; as well as, agree to wear the seatbelt provided at all times.9. The Lessee has ridden and inspected the vehicle prior to the execution of the rental agreement and by execution of the agreement agrees that the vehicle is in good mechanical condition and has no damage or defect whatsoever other than what is noted hereon.10. Improper use of the vehicle, as determined solely by the Lessor or any agent of the Lessor, shall result in the immediate confiscation of the same. There shall be no refund of any monies paid in the event of such confiscation and deposit will be forfeited. Furthermore, there will be no refund given for any reason whatsoever (weather, etc.).By signing below, I accept this equipment rental agreement. I acknowledge that if anyone is hurt or property is damaged during my participation in this activity, I may be found by a court of law to have waived my right to a file and or maintain a law suit against KNR Rentals, Inc., Lessor, on the basis of any claim from which I released them herein. I have had sufficient opportunity to read this entire document, front page and back page. I have understood it, and agree to be bound by its terms.