Section 2 – Agreement to Rent
ARC
agrees to rent to the Customer, and the Customer agrees to rent from ARC, the
mobile satellite equipment, hereafter designated Equipment, described above,
and except as otherwise provided herein, will continue until the end of the
Effective Dates of Rental. The customer
agrees to use the rental equipment with ARC’s Globalstar services.
There is a $50 cancellation fee on all rental orders cancelled.
Section 3 – Term
The
term of this agreement begins on the Effective Date, as shown above, and except
as otherwise provided herein, will continue until the equipment is returned to
ARC as noted in the terms of the effective date.
Section 4 – Payments & Charges
4.1 Rental Charges – Customer agrees to pay applicable rental charges and any
other applicable fees IN ADVANCE
prior to shipment to customer designated shipping address. A security deposit reserve as noted in
Section 4.2 will be taken by ARC as security for the return of the Equipment in
good condition. A reserve is not a
charge and Customer agrees to the acquisition of this reserve by signing this
agreement. The Customer will return the
Equipment at the end of the Rental Effective Date and will pay a daily rental
rate until returned. Card will also be
charged the applicable airtime charges (for calls made during the rental
period) plus 3.5% Federal Excise Tax.
ARC will present the Customer with an itemized call detail record for
all calls made by the rental phone usually within 30 to 90 days after the end
of the rental. Until ARC receives the
Equipment, the Customer shall remain bound by the obligations of this
Agreement.
4.2 Security Deposit/Reserve – A reserve against the Customer’s credit card may be made as
stated above on or before the Effective Date.
This reserve may be maintained by ARC and will be applied against any
default of Customer in payment of rent or for damage or loss of the Equipment
or other payment due ARC which is chargeable to the Customer. Currently ARC charges $450 for the Motorola
9505a as a reserve. Once the account has
been finalized and charges paid, remaining deposit will be credited back to the
same credit card.
4.3 Test and/or Repair Charge – If returned equipment appears broken due to misuse, a test
and repair charge of up to $50.00 may be charged for inspection, testing, and
minor repairs required returning the Equipment to service. This charge will be payable at the end of
this Agreement. If the terminal can not be
repaired, the customer will be notified and will be responsible for the
designated replacement cost of the terminal.
If insurance was purchased, this charge will apply to the deposit.
4.4 Other Costs – In addition to the applicable equipment rental charge and
airtime, the Customer also agrees to be charged for any additional equipment
selected above and for shipping. The
Customer agrees to pay ARC any shipping costs for delivery of the Equipment to
the Customer (as indicated above), and the Customer will pay for shipping costs
for return of the Equipment to ARC’s designated storage location. The shipping charges noted above are for shipment
to any location in the Continental United States only. ARC utilizes FEDEX, USPS, and other couriers
for rental shipments.
4.5 Data Transmission Use &
Dropped Calls – Due to the technical nature of data
setups and the inherent sophistication of data transmission through a variety
of operating systems, ARC makes no representation as to the success of data
calls through the system. Customer
agrees that all data attempts, regardless of ultimate successful transmission
and termination will be paid for and no credits will be given in the event of
dispute of this nature. Along with
potential incorrect use (i.e.: next to a building/obstruction), the Iridium
system (a low earth orbiting satellite constellation) has inherent flaws and
anomalies that can create dropped calls of either voice or data nature. Dropped calls will not be credited. ARC can provide data setup technical support
beyond the normal provided setup instructions at an additional charge. Please consult with a sales representative
for more details.
4.6 Taxes, etc. – Customer will either pay directly for any taxes or
governmental fees such as, use, property, excise, customs duty, or other taxes,
license fees, assessments, permits, or commissioning and registration fees
relating to the shipment, activation and rental of the Equipment.
Section 5 – Equipment Use, Site & Inspection
Customer
shall be responsible for obtaining any license, permit, or permission from any
governmental or regulatory agency which may be necessary for or imposed upon the
operation of the Equipment. Operation is
legally allowed in many countries outlined in the ARC website
www.allroadcommunications.com
(Coverage section). The customer will
exercise due care in and will permit only qualified personnel to use and
operation shall be only according to written instructions provided by ARC. Customer will not use or operate the
Equipment in any illegal manner or for any illegal purpose nor in violation of
any law, ordinance, or regulation. The
customer will keep ARC advised of the changes to the Specified Equipment’s site
or usage location. The Customer will
permit ARC or its Agent to inspect the Equipment during the term of this
agreement at any reasonable time.
Section 6 – Warranty
ARC
warrants that each item of equipment will be suitable for normal operation and
use at the time of delivery. ARC MAKES
NO OTHER REPRESENTATION OR WARRANTY OF ANY KIND, EXPRESSED OR
IMPLIED, WRITTEN OR ORAL, AS TO ANY MATTERS WHATSOEVER. ARC DISCLAIMS ANY AND ALL IMPLIED WARRANTIES
OF MERCHANTABILITY, OR FITNESS FOR ANY PARTICULAR PURPOSE.
Section 7 – Ownership & Security Interest
7.1 Ownership – Customer acknowledges that ARC is and shall remain the
owner of the Equipment until title is conveyed to the customer by an attached
separate lease/sale or sale agreement.
Customer will protect ARC’s ownership rights against claims, liens, and
other encumbrances by Customer’s creditors or other claimants against the
Customer. The Customer will not remove,
obliterate, or obscure markings which identify ARC as owner of the Equipment.
7.2 Security Interest – Customer will execute and deliver to ARC documents and
forms which are reasonably necessary or desirable to protect ARC’s ownership
and interest in the Equipment, including finance statements under the Uniform
Commercial Code.
Section 8 – Insurance and Risk of Loss
8.1 Insurance – ARC offers insurance against equipment damage if selected
on equipment accessories section, but not against loss. Customer may seek their own insurance against
loss from their Home, Business, or other insurance providers.
8.2 Risk of Loss – Customer will bear the responsibility for all malfunctions,
failures, damages to or loss of Equipment, except for manufacturing defects and
normal wear and tear covered under Section 9.
In the event of any such loss or damage, the Customer will promptly give
ARC notice thereof and the Customer will elect one of the following options:
(i) Pay to ARC an amount equal
to the Stipulated Equipment Value or fraction thereof for the damaged or lost
equipment. In such case, the rental
charges and other obligations of the Customer shall continue until the payment
is made. After payment is made, his Agreement
will terminate as to the Equipment involved; or
(ii) Request that ARC repair or replace the damaged or lost
equipment, and pay to ARC the cost of such repair or replacement. In such case the rental charges and other
obligations of the Customer shall continue during the period of repair or until
replacement. If ARC is unable to repair
or replace the Equipment then option (i) shall apply.
In
any case, the amount to be paid to ARC shall be reduced by any applicable
insurance proceeds paid to ARC pursuant to Section 9.1 of this Agreement.
Section 9.1 – Maintenance
9.1 Normal Maintenance – ARC
or its authorized agent will be the exclusive source to maintain the Equipment
and will maintain the Equipment in operational condition. Customer will deliver the Equipment to ARC or
its agent for maintenance and Customer will pay all costs for shipment to ARC
or its agent and shall be liable for any loss or damage during
transportation. ARC or its agent will
return the Equipment to the Customer and shall be liable for any loss or damage
during transportation. When available,
and requested by the Customer, maintenance may be effected at the at the
Customer’s location, in which case Customer will pay for the transportation and
labor costs of ARC or its authorized agents in accordance with the standard
rates in effect. Such maintenance will
be provided without charge to the Customer for malfunctions and failures due to
manufacturing defects and normal wear and tear.
Maintenance required for other malfunctions and failure or damage such
as caused by improper power source, abuse, accident, improper operation or
abnormal conditions of operation is covered in Section 8.2.
Malfunction
or failure of operation covered by this section will entitle the Customer to a
reduction in rental charges on a pro-rated basis for a period commencing on the
day the malfunction or failure is reported to ARC in sufficient detail to
enable ARC or its agent to commence necessary repairs and ending on serviceable
condition. In no event will ARC be
liable for any loss of profits, indirect, consequential or other damages
resulting from any failure of the Equipment.
The Customer will not open the Equipment electronics enclosure housing,
alter or repair or permit the alteration or repair of the Equipment, or make
any attachments thereto, without the prior written approval of ARC.
Section 10 – Limitation of Liability and Indemnity
10.1 Limitation of Liability – In no event will ARC be liable to the Customer for any
incident, indirect or consequential damages however caused, whether by ARC’s
negligence or otherwise.
10.2 Indemnity – The Customer agrees to protect, indemnify, and hold
harmless ARC from and against all claims, damages, and costs including legal
expenses arising out of the Customer’s use of this Equipment.
Section 11 – Default
If
the customer fails to perform any obligation when due under this Agreement, or
otherwise defaults, ARC has the right to terminate this Agreement forthwith by
notice to the Customer. Upon such
termination, (i) the balance of the Gross Rental Amount will be due and payable
immediately and, (ii) ARC has the right, at its option, to take possession of
and remove the Equipment from service immediately. Any other damages or amount chargeable to the
Customer shall be immediately due upon such termination.
In
addition to failure to perform its obligation elsewhere stated in this
Agreement, the following shall be defaults by the Customer:
1.
Issuance of writ, attachment,
execution, or similar court process against the Customer or its property.
2.
Bankruptcy, or any application for
reorganization protection from creditors, insolvency, appointment of a receiver
or trustee whether voluntary or involuntary.
3.
Termination of the Customer’s
business.
4.
Change in management or ownership
of the Customer.
5.
If any representation prior to or
during the term of this Agreement proves to be false or misleading in any
material respect.
6.
Any action which jeopardizes ARC’s
ownership or agent / partner’s ownership rights or ability to take possession
of the Equipment.
7.
Failure to use the ARC network or
to pay communications service invoices on time.
Section 12 – Assignment
This
agreement and the rights and obligations created hereunder shall not be
reassigned by the Customer without the prior written consent of ARC All Road
Communications.
Section 13 – Notices
All
notices and other communications required or permitted to be given under this
Agreement will be in writing and will e effective when delivered personally,
when sent by confirmed fax, U.S. Mail, or certified courier addressed to the
parties at their respective addresses set forth below, unless by such notice a
different person or address shall have been designated.
If to Customer, to:
The address provided in the
“Shipping Information”
section
of the Rental Agreement. And to the
Customer’s listed fax number.
If to (ARC)
All Road Communications:
Section 14 – General
14.1 Early Returns – Under no circumstance will the Customer be granted credit
for unused time or early return of equipment.
14.2 Export Regulations – The Customer will not divert export or re-export the
Equipment to any country contrary to
14.3 Excusable Delays – If ARC’s performance of any obligation hereunder is delayed
due to reason beyond ARC’s reasonable control, the time for performance of such
obligation will be postponed for a period equal to the number of days of such
delay. In no event will ARC be liable
for any damages resulting from any delay in the delivery of any Equipment or
any delay in the performance of any maintenance.
14.4 Previous Agreements – This Agreement supersedes all prior and contemporaneous
agreements and representations made with respect to the same subject matter,
and is the entire Agreement between the parties.
14.5 Severability – In the event that any one or more provisions contained in
this Agreement should, for any reason, be held to be unenfARCeable in any
respect under the laws of the state of California, or the United State,
unenfARCeability shall not affect any other provisions of this Agreement, but
this Agreement shall be construed as if unenfARCeable provision had not been
contained herein.
14.6 Controlling Law – All questions concerning the validity, operation,
interpretation, and construction of this Agreement will be governed by and
determined in accordance with the laws of
14.7 Headings – The headings and titles to the section and paragraphs of
this Agreement are inserted for convenience only and will not be deemed a part
hereof or affecting the construction or interpretation of any provisions
hereof.
14.8 Counterparts – This Agreement may be executed in one or more counterparts,
each of which shall be deemed to be an original copy hereof.
14.9 Further Assurances – The Parties agree to perform all acts and execute all supplementary instruments or documents which may be necessary or desirable to carry out the provisions of this Agreement.