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• Be able to stop with its service brakes in a safe distance in both forward and reverse.
<br /> • Operate without leaking any fluids.
<br /> • • Perform its designed functions in a satisfactory manner.
<br /> • All cutting units(If applicable)must be able to lower,turn on, run, raise and shut off as they are designed to do.
<br /> C. REQUIRED PURCHASE. If any item of Equipment is damaged or does not meet the standards set forth above
<br /> for the return condition of such Equipment or if the Lessee fails to discharge Lessee's obligations set forth above with
<br /> regard to any Item of Equipment, Lessee shall pay to Lessor, immediately upon demand,the Stipulated Loss Value
<br /> of such item of Equipment.
<br /> 9.TAXES. Lessee shall promptly reimburse Lessor for, or shall pay directly if so requested by Lessor, as additional
<br /> Rent, all taxes, charges and fees which may now or hereafter be imposed or levied by any governmental body or
<br /> agency upon or in connection with the purchase, ownership, lease, possession, use or location of the Equipment or
<br /> otherwise in connection with the transactions contemplated by the Lease,excluding, however, all taxes on or measured
<br /> by the net income of Lessor. Lessee agrees to reimburse Lessor for all personal property taxes immediately upon
<br /> receipt of Lessor's invoice including without limitation such taxes assessed or arising during the term of this Lease but
<br /> remitted by Lessor after the termination of this Lease. At Lessor's option, Lessee agrees to remit, along with Lessee's
<br /> rental payments under this Lease, an amount equal to a percentage of Lessor's reasonable estimate of the personal
<br /> property taxes that will be assessable against the Equipment during the succeeding tax year. Any such amounts
<br /> remitted to Lessor will be credited by Lessor against Lessee's obligations under this paragraph. Lessee will remain
<br /> obligated in the event that such amounts are insufficient to fully reimburse Lessor the actual amount of such taxes and
<br /> any surplus will be either credited to Lessee's other obligations to Lessor or returned to Lessee. If requested, Lessee
<br /> agrees to file promptly on behalf of Lessor all requested tax returns and reports concerning the Equipment In form
<br /> satisfactory to Lessor,with all appropriate governmental agencies and to mail a copy to Lessor concurrently with the
<br /> filing thereof. Lessee further agrees to keep or cause to be kept and made available to Lessor any and all necessary
<br /> records relevant to the use of the Equipment and aforesaid taxes, assessments and other governmental charges. The
<br /> obligations arising under this paragraph shall survive payment of all other obligations under this Lease and the
<br /> termination of this Lease.
<br /> 10. PURCHASE OPTION;AUTOMATIC RENEWAL. If no Default exists under this Lease, Lessee will have the option
<br /> at the end of the Initial or any renewal term to purchase all (but not less than all) of the Equipment at the Purchase
<br /> Option Price shown on the front of this Lease, plus any applicable taxes.Unless the Purchase Option is$1.00,Lessee
<br /> must give Lessor at least 180 days written notice before the end of the Initial Term that Lessee will purchase the
<br /> Equipment or that Lessee will deliver the Equipment to Lessor. If Lessee does not give Lessor such written notice or if
<br /> Lessee does not purchase or deliver all but not less than all of the Equipment In accordance with the terms and
<br /> conditions of this Lease, this Lease will automatically renew for an additional 12 month term and thereafter renew for
<br /> successive one month terms until Lessee delivers the Equipment to Lessor or Lessee exercises one of its END OF
<br /> LEASE OPTIONS. During such renewal(s)the Rental Payment will remain the same. Lessor may cancel an automatic
<br /> renewal term by sending Lessee written notice 10 days prior to such renewal term. If the Fair Market Value("FMV")
<br /> Purchase Option has been selected, Lessor will use Lessor's judgment to determine the Equipment's FMV. FMV shall
<br /> mean the retail not wholesale FMV determined solely by the Lessor. Upon payment of the Purchase Option price to
<br /> Lessor plus all applicable taxes, Lessor shall transfer it's interest In the Equipment to Lessee "AS IS,WHERE IS"
<br /> without any representations or warranties whatsoever and this Lease will terminate.
<br /> 11. LOSS OR DAMAGE. Lessee shall bear all risk of loss associated with an item of Equipment, including the theft,
<br /> destruction, or damage. No such loss shall relieve Lessee from any of its obligations under this Lease. In the event of
<br /> any loss with respect to particular Equipment, Lessee shall either. (a) place such Equipment ingood repair, condition
<br /> and working order, (b)replace such Equipment with like equipment(of the same year, make, model and accessories)
<br /> in good repair, condition and working order, or(a)pay to the Lessor the Stipulated Loss Value of such Equipment.The
<br /> 'Stipulated Loss Value' for particular Equipment shall be an amount equal to: (i) the total of all Rent and any other
<br /> amounts, if any, due with respect to such Equipment as of the date of payment of the Stipulated Loss Value, plus(ii)all
<br /> future Rent with respect to such Equipment, plus(iii)the then estimated FMV of such Equipment as of the end of the
<br /> Initial Term of Lease for such Equipment(assuming no loss or damage).
<br /> 12. INSURANCE. Lessee shall keep in effect an'Ali Risk" extended coverage property insurance policy covering the
<br /> Equipment for its full replacement value. Lessee shall also carry a comprehensive general liability insurance policy or
<br /> other similar form of third party liability coverage. Such policies shall be in form, amount and with insurers acceptable to
<br /> Lessor. The property insurance policy shall name Lessor and its assigns as Loss Payee and the general liability
<br /> insurance policy shall name Lessor and its assigns as an Additional Insured. Each policy shall provide: (a)for no less
<br /> than thirty(30) days prior written notice of cancellation or non-renewal to Lessor, and (b)that such policy shall not be
<br /> invalidated as against Lessor or its assigns for the violation of any term of the policy by Lessee. Lessee appoints
<br /> Lessor as Lessee's attorney-in-fact to request requireed Insurance coverages, make claims, receive payments and
<br /> execute and endorse all documents, checks, drafts or other Instruments necessary or advisable to secure payments
<br /> due under any policy contemplated hereby. The foregoing appointment shall not relieve Lessee from its obligations to
<br /> procure the insurance policies required herein, to make timely insurance claims and to otherwise cooperate with
<br /> insurance carriers and Lessor in seeking insurance coverage and recoveries in connection with the Equipment.
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