**STAGE GEAR HARDWARE RENTALS — SECURITY DEPOSIT TERMS**

The Security Deposit is a refundable protection option for customers who do not have qualifying insurance and prefer not to pay the non-refundable Damage Waiver fee. You pay a deposit before your rental, BMD holds it through the return inspection, and it is refunded if the equipment comes back in good condition, on time, and with everything included.

## Security Deposit at a Glance

- **Amount:** 50% of equipment MSRP replacement value
- **Minimum:** $1,000
- **Maximum:** $10,000
- **Refundable:** Yes, if all conditions are met

**Payment options**

- Check: No processing fee
- Credit/debit card: +3.5% non-refundable fee
- Refund method: Check or ACH only
- Refund timeline: Up to 60 days from return

**Full refund requires:**

- All items returned
- Equipment passes inspection
- Returned on time
- No outstanding balances

**Deposit does NOT cover:**

- Damage above deposit amount
- Theft (full MSRP still owed)
- 3.5% card processing fee
- Card processing fee refund

## 1. Deposit Amount

### 1.1 Base Calculation

The deposit is fifty percent (50%) of the total MSRP replacement value of all Equipment on your order. Your equipment's MSRP replacement value is displayed on the product page and confirmed on your order form at checkout.

### 1.2 Minimum and Maximum

| Limit | Amount | When It Applies |
| --- | --- | --- |
| Minimum | $1,000 | When 50% of MSRP falls below $1,000, the deposit is set at $1,000. |
| Maximum | $10,000 | When 50% of MSRP exceeds $10,000, the deposit is capped. You remain liable for damage or loss above $10,000. |

## 2. Payment Methods

You have two options for paying the Security Deposit:

### Option A — Pay by Check

No processing fee. Make check payable to:

> Broadway Media Distribution, Inc.
> 105 W 86th Street, #218
> New York, NY 10024

Write your Order Number on the memo line. Equipment will not ship until the check is received and cleared.

### Option B — Pay by Credit or Debit Card

A 3.5% processing fee applies. It is charged immediately at checkout and is non-refundable — it is retained by BMD regardless of whether the deposit itself is refunded.

**Important:** Deposit refunds are issued by check or ACH bank transfer. If you pay by card, your refund will NOT come back to your card.

## 3. Refund Timeline

Here is the complete timeline from the moment you return equipment to the moment you receive your refund. Every step applies to every rental — the only variable is whether the equipment passes inspection and whether any deductions apply.

| Step | Event | Detail |
| --- | --- | --- |
| 1 | Return Deadline | You must drop off all Equipment at UPS by 12:00 p.m. your local time on the Return Due Date (Monday). Late fees begin immediately if this deadline is missed. |
| 2 | BMD Receives Equipment | BMD logs receipt of your shipment. The 30-day inspection window begins on this date. |
| 3 | Return Inspection | BMD's Asset Manager performs a full diagnostic inspection. Target: 10 Business Days. Hard deadline: 30 calendar days from receipt. If BMD does not complete the inspection within 30 days, BMD forfeits the right to assess any damage charges and must return your full deposit. |
| 4 | BMD Notifies You | BMD sends you the inspection result — Pass or Fail. If Fail, you receive a Deposit Deduction Notice with itemized charges and photographic evidence. |
| 5 | Refund Issued | Full or partial refund processed within 30 days of inspection completion. Issued by check or ACH — not to your credit card. Maximum time from return to refund: 60 days. |

## 4. Conditions for a Full Refund

You are entitled to a full refund of your Security Deposit (less the 3.5% processing fee if you paid by card) when all four of the following conditions are met:

1. All Equipment, accessories, cables, cases, foam inserts, and components listed on your Order Form are returned to BMD.
2. Equipment passes the Return Inspection — no damage beyond Normal Wear and Tear is found.
3. Equipment is delivered to UPS by 12:00 p.m. in your local time zone on the Return Due Date. Late fees are not assessed.
4. No other amounts are outstanding under your rental agreement.

## 5. What Can Be Deducted From Your Deposit

BMD may only deduct from your Security Deposit for the following categories of charges. BMD cannot deduct for any reason not listed here.

| Category | Basis for Charge | Important Notes |
| --- | --- | --- |
| Damage / Repair | Cost of repair, or MSRP replacement value if repair is not possible — whichever is lower. | Not charged for Normal Wear and Tear. Damage under $125 waived at BMD's discretion. |
| Missing Items | MSRP replacement value of any item, accessory, cable, case, or component not returned. | Individual items valued under $100 are not assessed. |
| Late Fees | Prorated daily rental rate for each day Equipment was not scanned into UPS by 12:00 p.m. on the Return Due Date. | Capped at MSRP replacement value of the late item. |
| Other Amounts Due | Any other amounts owed under your Rental Agreement (e.g., expedited shipping costs caused by your COI delay). | Itemized in the Deposit Deduction Notice. |

## 6. Refund Method

Security Deposit refunds are NOT issued by credit card reversal. If a refund is due, BMD will remit it by check or ACH bank transfer to the account information you provide at checkout. The 3.5% processing fee is non-refundable in all circumstances. If ACH information is not provided, BMD will issue a refund by mailed check to the billing address on file.

This Security Deposit Form is incorporated into and made part of the Stage Gear Hardware Rental Agreement between Broadway Media Distribution, Inc. and Customer.