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<br /> Proceeds from any general liability policy shall be made payable first on behalf of the Lessor to the extent of its liability,
<br /> if any. All policies of insurance carried by Lessee, whether primary or excess, shall be primary as to any policies
<br /> maintained by Lessor. In the event that Lessee fails to provide or maintain any of the insurance policies required
<br /> hereunder, Lessor may(but shall not be obligated to)purchase such Insurance protecting Its interest in the Equipment,
<br /> on terms and conditions and with insurers and agents of Lessor's choosing; provided, however,that in no event shall
<br /> Lessor's purchase of Insurance on one or more occasions relieve Lessee of its continuing liability for risk of loss to the
<br /> Equipment or constitute a waiver of Lessee's continuing obligation to provide any of the insurance coverages required
<br /> hereunder. Insurance purchased by Lessor will not protect Lessee's interest and will protect solely Lessor's interest.
<br /> The insurance policies obtained by Lessor will not name Lessee as an insured, an additional insured, or a loss payee,
<br /> and Lessee will not be an intended beneficiary under such policies. Lessee shall be responsible to Lessor for all of
<br /> Lessor's costs and charges associated with any liability and property insurance obtained hereunder, including without
<br /> limitation: (1)premiums payable to the insurance carrier (2)administrative costs and subcontracting charges of Lessor,
<br /> (3) service fees and commissions payable to the insurance administrator, (4) finance fees payable to the finance
<br /> company for financing the insurance costs and charges, and (5) interest charges. The insurance carrier, insurance
<br /> administrator, and finance company contracted with by Lessor in connection with obtaining and administering this
<br /> insurance may be subsidiaries or affiliates of Lessor. Insurance purchased by Lessor hereunder may include
<br /> coverages beyond or in addition to the insurance required to be maintained by Lessee under this Lease Agreement
<br /> Such additional coverages may include flood and power surge coverage, among others. Lessee is free to obtain its
<br /> own insurance as required under this Lease Agreement at any time and Lessor will discontinue any insurance
<br /> coverage purchased by Lessor upon receipt of evidence of Lessee's own coverage. The costs and charges assessed
<br /> by Lessor to Lessee hereunder may be greater than the premium Lessee would be required to pay were Lessee to
<br /> obtain its own insurance. Because of increased credit risks to Lessor when not insured by Lessee, Lessee agrees to
<br /> pay to Lessor each month a risk charge stipulated and liquidated at .35% of Lessors original Equipment cost until
<br /> Lessee provides proof of compliance with Insurance requirements. In spite of the payment of such risk charge, Lessee
<br /> has no right or claim to any insurance benefits from Lessor. Lessee Is still liable for all losses, and such risk charge is
<br /> not in lieu of the insurance requirements of this Lease. Nothing herein shall be construed as obligating Lessor to obtain
<br /> insurance coverage.
<br /> 13. TITLE; RECORDING. Lessor is the owner of and will hold title to the Equipment Lessee will keep the Equipment
<br /> free of all liens and encumbrances. Unless the Purchase Option price shown on the front of this Lease is $1.00,
<br /> Lessee agrees that this transaction is a true lease. However, if this transaction is deemed to be a lease intended for
<br /> security, Lessee grants Lessor a purchase money security interest In the Equipment (including any replacements,
<br /> substitutions, additions, attachments and proceeds). Lessee will upon request deliver to Lessor signed financing
<br /> statements or other documents Lessor may request to protect its interest in the Equipment. Lessee authorizes Lessor
<br /> to file a copy of this Lease as a financing statement and appoints Lessor or Lessor's designee as attorney-in-fact for
<br /> Lessee to execute and file,on Lessee's behalf,financing statements covering the Equipment
<br /> 14. DEFAULT. Each of the following is a'Default'under this Lease: (a)Lessee fails to pay any Rental Payment or any
<br /> other payment within 5 days of its due date, (b)Lessee does not perform any of Lessee's other obligations under this
<br /> Lease or in any other agreement with Lessor and this failure continues for 5 days after Lessor has notified Lessee of it,
<br /> (c) Lessee becomes insolvent, dissolves, or assigns its assets for the benefit of creditors, or enters (voluntary or
<br /> Involuntarily) any bankruptcy or reorganization proceeding; (d) any guarantor of this Lease dies, does not perform its
<br /> obligations under the guaranty,or becomes subject to one of the events listed in clause(c)above.
<br /> 15. REMEDIES, If a Default occurs, Lessor may do one or more of the following: (a) Lessor may cancel or terminate
<br /> this Lease or any or all other agreements that Lessor has entered into with Lessee; (b)Lessor may require Lessee to
<br /> immediately pay Lessor, as compensation for loss of Lessors bargain and not as a penalty, a sum equal to(i) all
<br /> unpaid Lease Payments for the remainder of the term plus (II) the Lessor's anticipated residual Interest in the
<br /> Equipment, plus (iii) all other amounts due or that become due under this Lease; (c) Lessor may require Lessee to
<br /> deliver the Equipment to Lessor as set forth in paragraph 7; (d) Lessor or it's agent may peacefully repossess the
<br /> Equipment without court order and Lessee will not make any claims against Lessor for damages or trespass or any
<br /> other reason; and(e)Lessor may exercise any other right or remedy available at law or in equity.Lessee agrees to pay
<br /> all of Lessor's costs of enforcing Lessor's rights against Lessee, including reasonable attorney's fees. If Lessor takes
<br /> possession of the Equipment, Lessor may sell or otherwise dispose of it with or without notice, at a public or private
<br /> sale, and apply the net proceeds (after deducting all costs related to the sale or disposition of the Equipment)to the
<br /> amounts that Lessee owes Lessor. Lessee agrees that if notice of sale Is required by law to be given, 10 days notice
<br /> shall constitute reasonable notice. Lessee will remain responsible for any amounts that are due after Lessor has
<br /> applied such net proceeds.
<br /> 16. PERFORMANCE OF LESSEE'S OBLIGATIONS BY LESSOR. If Lessee fails to make any payment or perform
<br /> any act or obligation required hereunder, Lessor may, but need not, make such payment or perform such act or
<br /> obligation at the expense of Lessee. Any such expense incurred by Lessor shall constitute additional Rent due
<br /> hereunder and shall be payable by Lessee to Lessor upon demand. Such action by Lessor shall not be deemed a cure
<br /> or waiver of any default by Lessee.
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