INDEMNITY
Lessee agrees to and does hereby indemnify and hold Arthur Freyer Lighting, (hereafter known as AFL) its officers and employees, harmless from and against any and all losses, damages, demand of liability of any kind or nature whatsoever, including legal expenses arising from the use, condition (including without limitation latent and other defects) of operation of the equipment or vehicles rented, and by whomsoever used or operated such equipment and/or vehicle during the term hereof. This indemnity shall continue in full force and effect during and after the rental term specified herein.

INSURANCE

Lessee shall secure and maintain (a) All Risk Physical Damage insurance coverage for collision and upset and comprehensive losses to the equipment rented from AFL hereunder, and (b) Comprehensive General Liability and Business Automobile Liability insurance both in an amount of not less than $1,000,000. Combined Single limit for personal injury, bodily injury and property damage. The Comprehensive General Liability form shall include the coverage parts for broad form contractual liability. The Business Automobile Liability policy shall include coverage for Hired an Non-Owned Automobile Liability and Physical Damage. Lessee shall provide Certificate of Insurance, signed by an authorized representative of the Lessee's insurance company, evidencing that Lessee is in compliance with the insurance provisions of this Agreement. Lessee shall have the insurance company providing coverage required hereunder add the interest of AFL as Additional Insured and Loss Payee as AFL's interest may appear in reference to any and all equipment provided by AFL under the terms and conditions of this Agreement. Any insurance certificate provided in accordance with this Agreement shall stipulate that AFL shall receive 30 days written notice of cancellation from the insurance company providing the required coverage prior to any cancellation or reduction in the limits of liability; each such certificate issued to AFL shall stipulate that the coverages indicated on the insurance certificate shall be primary coverage and not contributing with any other insurance maintained by AFL. It is agreed that Lessee's insurance coverage shall commence at the time any of the AFL's equipment leaves AFL's premises and shall remain in full force and effect until the equipment is returned to the premises of AFL unless AFL shall stipulate that such equipment is to be returned to a specific location other than AFL's premises.

Lessee shall provide to AFL a CURRENT CERTIFICATE OF INSURANCE PRIOR to delivery of equipment and/or vehicle for a term which covers the rental period. Notwithstanding this section of the Rental Agreement, Lessee shall remain primarily liable to AFL for full performance under this Lease.

LOSS & DAMAGE
If the equipment and/or vehicle is returned to AFL in damaged or non-working condition, the Lessee will be charged for repairable damage, including parts, labor and applicable sales taxes.

In the event that any equipment and/or vehicle is lost, stolen, destroyed or otherwise disappears, or is not returned, Lessee will pay to AFL the REPLACEMENT COST of said equipment and/or vehicle.

The liability for lost, damaged, destroyed or missing equipment and/or vehicles shall belong to the Lessee, no matter the circumstances, or whomever is determined to be to blame.

TITLE
Title to equipment and/or vehicle is retained by Arthur Freyer Lighting. Lessee covenants that it will not assign, pledge or encumber equipment and/or vehicle in any manner, nor permit any liens to become effective thereon.

INSPECTION BY ARTHUR FREYER LIGHTING
Inspection of equipment and/or vehicle while in the possession of Lessee may occur at any time by AFL or its designated agent during the term of this Lease. Lessee shall make arrangements as necessary to permit AFL or its agent access to the rented equipment and/or vehicle. A breach of this clause shall be deemed material, and entitles AFL to exercise any of the remedies set forth in this lease.

DEFAULT & BREACH OF TERMS
In the event of a default by Lessee in in payment of equipment and/or vehicle rental billing, or Lessee's breath of any terms of this lease, or if Lessee assigns or attempts to assign equipment and/or vehicles to any interest therein (as security, pledge, or otherwise) or lien or encumbrance is placed against equipment and/or vehicle by anyone claiming rights against Lessee, or if Lessee becomes insolvent or executes an assignment for the benefit of creditors, or if a petition of bankruptcy is filed by or against Lessee, or if Lessee misuses, mishandles or damages equipment and/or vehicle or attempts to remove equipment and/or vehicle from the State of California without the prior written consent of AFL, then AFL may, at its discretion, exercise its rights under the terms of this agreement.