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� the creati�n of any lien, cl�arge, security interest or other encumbrance upon any assets of Lessee or on
<br /> the Equipment pursuant to any instrument to tvhich Lessee is a party or by which it or its assets may
<br /> ' be bound.
<br /> 7. Loss and Damage. l.essee hereby assumes and shall bear the entire risk of loss and dama;e,
<br /> �vhether or not insured against, to the �quipment from any and every cause whatsoever. No loss or damage
<br /> to the Equipment or any Pa�-t tl�ereof shall impair any obligation of Lessee under this I.ease, �vhich sLall
<br /> continue in full force and effect until Lessee shall have performed under paragraph (a), (b) or (c) belo�v.
<br /> In the event of loss or damage of any kind to the Equipment, or any part thereof, Lessee, at Lessor's option,
<br /> shall:
<br /> (a) Place the same in good repair,condition and�vorl:ina order; or
<br /> (b) Replace the same with similar new property in good repair, condition and working order; or
<br /> (c) Pay Lessor therefor in cash the "Stipulated Loss Value" as set forth below and upon such pay-
<br /> ment, this Lease shall terminate with respect to the rquipment or part thereof so paid for, and Lessee
<br /> thereupon shall become entitled to such Fquipment or part thereof. The "Stipulated Loss Value" shall
<br /> � equal the aggregate of the total remaining rentals due for the Equipment at the time of such loss plus
<br /> the option purchase price specified in Paragraph 19.
<br /> � 8. Insurance. Lessee, at its own expense, shall insure the Equipment against all risks and in such
<br /> amounts as I,essor shall reasonably require (but not less than the Stipulated Loss Value) with carriers
<br /> acceptable to Lessor, sha11 maintain a loss payable endorsement,in favor of Lessor affording to Lessor I
<br /> such additional Protection as Lessor shall reasonably require, and shall maintain liabilitv insurance satisfactory
<br /> to Lessor. All such insurance shall name Lessor and Lessee as insureds, and the policies shall provide that
<br /> they inay not be cancelled or aitered without at least ten (10) days' prior written notice to Lessor.
<br /> 9. Indemnity. Lessee agrees to and does hereby indemnify Lessor and Lender against, and hold
<br /> Lessor and Lender harmless from, any and all claims, actions, suits, proceedinns, costs, expenses, damages
<br /> and liabilities, including attorneys' fees, arising out of, connected with, or resulting from this Lease, or the
<br /> F_qtYipment, including, without limitation, the manufacture, selection, delivery, possession, use, operation or
<br /> return thereof.
<br /> 10. Taxes. Lessee shall keep the Equipment free and clear of all levies, liens and encumbrances
<br /> and shall declare and pay all license fees, registration f.ees, assessments, char�es and taxes (Municipal, State
<br /> and Federal) including, but not limited to, sales, use, excise and real and personal property taaes, except anci
<br /> ea:cluding,however,any ta�:es on or measured by Lessor's income.
<br /> 11. Lessee's Failure to Pay Taxes, Insurance, Etc. Should Lessee fail to make any payment or
<br /> do any act as herein provided, then Lessor shall Iiave the right, but not the obligation, without notice to or
<br /> deinand upon Lessee, and without releasing Lessee from any obligation hereunder, to inake or do the same, :
<br /> and to pay, purchase, contest or compromise any encumbrance, charge or lien which in the judgment of
<br /> • Lessor appears to effect the Equipment, and in exercising any such rights, incur any liability and extend
<br /> whatever amotmts in its absolute discretion it may deem necessary therefor. All sums so incurred or expended
<br /> by Lessor shall be �vithout deinand immediately duc and payable by Lessee and shall bear interest at ttie rate
<br /> of ten percent (10°fo) per annum.
<br /> 12. Equipment Is Fersonal Property. Lessee covenants and agrees that the Equipment is, and shall
<br /> at all times be and remain, personal property. If requested by Lessor, T essee �vill obtain, prior to delivery
<br /> of any unit of the EquiPment, a certificate in foriii satisfactory to Lessee, from all landlords and mortgagees
<br /> of premises �,vherein t.he Fquipment may be located waiving any claim �vith respect to the Equipment. '
<br /> 13. Designation of Ownership. If at any time during the term hereof the Lessor suPplies Lessee
<br /> with labels, plates or other markings st�ting that tlie Equipment is o«med by Lessor; Lessee shall affi�: and
<br /> keep tlie sarne upon a prominent I�lace on the �quipment. L,essor may request, and Lessee anrees to sign,
<br /> LTniform Commercial Code Financing Statements or to e�ecute and file any atid all instruinents necessary
<br /> to perfect Lessor's or Lender's interest in this Leasc, the payments due heretmder and the I:quipment.
<br /> 2
<br /> Form CEL
<br /> 1C:CO-3/7I74
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