This document sets forth the terms and conditions under which Pelgas, Inc. (“Pelgas”) will deliver propane gas and perform services for you (the “Customer”) at your delivery address (the “Location”) on file in Pelgas’s records. These terms and conditions are not subject to change by the Customer. Customer’s request for or acceptance of deliveries of propane from Pelgas, Pelgas’ performance of services requested by the Customer and/or Customer’s use of leased Pelgas equipment constitutes acceptance of and assent to these terms and conditions.

1. Customer Responsibilities. Customer is solely responsible for the installation, servicing, repair and regular inspection and maintenance of the gas appliances and gas piping system used with any rented or owned equipment at their Location. Customer agrees to notify Pelgas in writing any time a change is made to the gas system. Customer agrees that only properly trained qualified technicians will service their gas system and anytime that a problem is suspected, Customer will call Pelgas immediately. Customer understands that any time any change is made to their gas system (for example, an appliance is added, removed or changed out) or Customer’s system runs out of gas, a leak check must be performed by a trained technician before the system is placed back into operation. Leak checks are also required whenever the gas system is interrupted for any reason. A responsible adult must be present when a leak check is conducted. Pelgas is not responsible for any service work performed by anyone outside of Pelgas. Pelgas may, but is not obligated to, inspect the gas piping system and any Customer owned or rented propane related equipment. If Pelgas determines that any of the same are not in safe condition or not in compliance with industry standards, Pelgas may terminate propane service immediately. Pelgas shall have no liability or responsibility for any inspections it makes unless such actions constitute gross negligence or willful misconduct. Customer shall be responsible for all repairs and replacements that are required. Customer will provide access to storage tank for delivery truck and driver.

When deliveries are on an automatic-delivery scheduled route, Pelgas will use commercially reasonable efforts to deliver propane to Customer so that Customer maintains an adequate supply of propane. Tanks will be filled to the 80% + level at each delivery. Automatic-delivery is not a guaranty or promise that Customer will not run out of propane. A Customer’s propane supply will vary according to Customer’s fuel requirements, which depend upon Customer’s uses and weather. Due to this, Pelgas cannot anticipate nor predict the rate at which Customer will use its propane supply. Thus, Customer is ultimately responsible for monitoring their propane supply and should notify Pelgas immediately if Customer’s supply is at risk of running out. Customer understands and agrees that Pelgas shall not have any liability if Customer runs out of propane and Pelgas shall not be liable for any damages resulting from such event.

2. Propane Safety Brochure. Customer acknowledges receipt of the propane safety brochure entitled “Important Propane Safety Information”. It contains important safety information that must be shared with all members of the household. Customer agrees to read, share and understand the “Important Propane Safety Information” brochure. If Customer does not have this brochure, contact Pelgas and one will be mailed to you. Combustible gas detectors and carbon monoxide detectors are available at many retail stores. With proper placement and maintenance, they can provide an added measure of safety. Always follow all manufacturers’ instructions.

3. Credit Check. Customer authorizes Pelgas to obtain credit information regarding Customer from credit reporting agencies at any time.

4. Landlords. Landlords are responsible for maintaining a safe system. Pelgas must be notified of any tenant change and a system check with leak check must be performed on the system prior to new tenant occupancy. Landlord agrees to provide propane safety brochures to any tenant or third party that occupies the Location.

5. Assigns and Successors, Amendment. These terms and conditions are binding on Pelgas and Customer and their respective permitted assigns and successors. Pelgas may amend these terms and conditions at any time upon notice to Customer. Any such amendment will become effective thirty (30) days after Customer is sent such notice. Customer’s acceptance of propane deliveries or services from Pelgas, and/or use of equipment after notice of any such amendment also constitutes acceptance of such amendment.

6. [NOTE: THIS SECTION ONLY APPLIES TO CUSTOMERS WHO HAVE SIGNED A PROPANE GAS CONTRACT WITH PELGAS] Contracted Gallons/Miscellaneous. Pelgas agrees to sell to Customer, and Customer agrees to purchase from Pelgas, the number of gallons of propane gas at the purchase price noted on the Propane Gas Contract. Receipt is acknowledged of 10 cents down per gallon with the balance due at the time of delivery. The delivery period is September 1, 2019 through March 31, 2020, and is to the Customer only. If at any time, any unpaid balance is past due, Pelgas may declare the contract null and void and apply any remaining deposit against the Customer’s unpaid balance. Customer must remain in good credit standing during the entire term of the contract. If customer fails to complete the contract within the delivery period, Pelgas may, at its discretion, declare a default, at which time all gallons not taken may be subject to a storage carry over charge (as determined by Pelgas), of not less than 10 cents per gallon. Additional charges may apply if the posted price at that time is less than the contracted price. Any propane used by Customer above the contracted gallons shall be billed at the posted rate.

7. Service Charge/Attorney Fees/Excuse. All account balances must be paid within thirty (30) days after the invoice date. Unpaid balances are subject to a service charge equal to one and one-half percent (1-1/2%) per month, corresponding to an annual percentage rate of eighteen percent (18%). Both parties agree that Pelgas is entitled to collect attorneys’ fees and related costs if an action is undertaken to collect a past due account. Neither party is responsible for failure or performance if prevented from doing so by acts of God, floods, fires, explosions or storms; transportation difficulties, or strikes; exhaustion, reduction, allocation, unavailability or delay in delivery of propane or any other cause beyond its control.

8. Liability Limitations. Pelgas shall not be liable for indirect, special, punitive, incidental or consequential damages (including, but not limited to, damages for loss of business, lost profits or investment, or the like) whether based on breach of contract, tort (including negligence), product liability or otherwise, and even if Pelgas or its representatives have been advised of the possibility of such damages, and even if any remedy set forth herein is found to have failed of its essential purpose. This limitation of liability is a fundamental element of the basis of the bargain between Pelgas and customer, and Customer acknowledges that Pelgas would not have been able to provide the propane AND PERFORM SERVICES at the prices referenced without such limitation. in addition, The liability of Pelgas shall in all instances be limited to three (3) times the total amount paid by Customer TO PELGAS during the prior twelve (12) month period. PELGAS IS NOT LIABLE FOR ANY LOSS SUSTAINED BY CUSTOMER AS A RESULT OF THE EXHAUSTION OF CUSTOMER’S PROPANE SUPPLY, INCLUDING, WITHOUT LIMITATION, DAMAGE TO CUSTOMER’S HOME OR PROPERTY RESULTING FROM WATER DAMAGE FROM FROZEN PIPES.

9. Indemnification. Subject to the limitations set forth in Section 8 above, both Pelgas and Customer agree to indemnify, defend and hold the other harmless from and against any and all claims, liens, demands, suits, damages and liabilities for personal injuries and/or property damage, arising out of or caused by a breach of these terms and conditions, a failure to comply with applicable law, or any negligent act or omission on the part of that party, its agents or employees.

10. Governing Law. These terms and conditions shall be governed by, enforced in accordance with, and interpreted under, the substantive laws of the State of Iowa, without reference to conflicts of laws principles that might refer to the law of another jurisdiction.

11. Severability. If any provision of these terms and conditions shall be held invalid, illegal or unenforceable to any extent, the remainder of these terms and conditions (other than the affected provision) shall be enforceable to the fullest extent permitted by law.

12. Entire Agreement. These terms and conditions (together with the Propane Gas Contract, if applicable), contain the entire understanding of the parties with respect to its subject matter and supersede all prior agreements, arrangements and understandings relating to the subject matter hereof.