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(c) Lessee agrees to comply with all the terms and conditions of said policy of insurance and give <br /> the Lessor and the insurance company timely and adequate reports of all occurrences or accidents and <br /> further agrees to cooperate with Lessor and/or insurance company in the prosecution or defense of any and <br /> all claims arising out of the use of any Leased Property. <br /> 10. LESSEE'S OBLIGATIONS ABSOLUTE. Lessee agrees that his obligations under this <br /> Lease are absolute and shall continue in full force and effect regardless of any inability of Lessee to use the <br /> Leased Property or any part thereof for any reason including, but not limited to, war, act of God, <br /> governmental regulations, strike, loss, damage, destruction, obsolescence, failure of or delay in delivery, or <br /> any other cause, and that Lessee's obligations shall not abate due to any claim or setoff against Lessor <br /> except for those arising from a breach of this Lease by Lessor. <br /> 11. ENCUMBRANCING LEASED PROPERTY. Lessee will not directly or indirectly create or <br /> suffer to exist any mortgage, security interest, lien, encumbrance or right of others whatsoever on or with <br /> respect to the Leased Property, except such rights as are created or permitted by this Lease. <br /> 12. INDEMNITY. Lessee shall indemnify the Lessor (and Lessor's agents, employees, and any <br /> parties to which Lessor may assign this Lease) against any damage, loss, theft, or destruction of any Leased <br /> Property during the Lease, and against any and all losses, damages, injuries, claims, demands, costs and <br /> expenses (including legal expenses) of every kind and nature arising out of or connected with the use, <br /> condition (including, without limitation, any defect, whether or not discoverable by Lessor or Lessee, any <br /> negligence of Lessor whether by commission or omission, and any strict liability of Lessor) or operation of <br /> each item of Leased Property during the Lease term. Lessee shall promptly notify Lessor of any such event <br /> of which Lessee has actual notice, and Lessor shall be entitled, but shall not be obligated to participate in <br /> the defense of any such claim or demand. <br /> 13. ASSIGNMENT AND SUBLETTING. This Lease may not be assigned nor any item of <br /> Leased Property included herein be subleased by Lessee without Lessor's prior written consent, which shall <br /> not be unreasonably withheld. Lessee shall, even in the event of a permitted subletting or transfer of <br /> Lessee's rights, remain liable to Lessor for the full and prompt payment and performance of all things to be <br /> paid or done by him as provided in this Lease. Lessor may assign this Lease at any time, but shall not be <br /> relieved from any liability hereunder. Upon notice of this assignment, Lessee shall make all payments <br /> coming due thereafter to the assignee without offset or defense of any kind. <br /> 14. LESSOR'S RIGHT TO PERFORM FOR LESSEE. If Lessee fails or omits to make at the <br /> agreed time, any payment which this Lease requires Lessee to make including (without limiting the generality <br /> of the foregoing) payments of taxes and insurance premiums and payments to keep the Leased Property in <br /> as good a condition as it was when received by Lessee, ordinary wear and tear excepted, or fails to perform <br /> any of its covenants contained in this Lease, Lessor may at its option, itself make such payment or perform <br /> such covenants and expend any amounts in its absolute discretion deemed necessary. If Lessor notifies <br /> Lessee in writing that Lessor has made or will make such payment, or has performed or will perform such <br /> agreement, Lessee shall forthwith upon demand pay to Lessor the amount of such payment or Lessor's <br /> costs of such performance, and the reasonable expenses including attorney's fees and costs of Lessor <br /> incurred in connection therewith, together with interest on each such payment or expense at the rate of ten <br /> percent(10%) per annum from the date upon which Lessor makes such payment or incurs such expense. <br /> Nothing in this section shall be so construed as to impose upon Lessor any obligation to make any <br /> such payment or perform any such covenant, it being the intention of the parties that the Lessor is to have <br /> the right but not the obligation to take such action. <br /> 15. LESSOR'S REMEDIES. In the event that the Lessee shall default (and remain in default for <br /> ten (10)consecutive days) in the payment of any Periodic Rental Payment as herein provided, or breach any <br /> of the terms and conditions or provisions herein contained and continue such breach for five <br /> 3 <br />