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<br />Page 5 <br /> <br />7. INSURANCE. At its own expense, Lessee ahall keep the Equipment covered against 10s8 <br />due to fire and the risks normally includeq in extended coverage, malicious mischief and <br />vandalism, for not les8 than the Full Insurable Value of the Equipment; and Lessee shall <br />also carry automobile insurance, including bodily injury liability and property damage <br />liability with a single limit of not leoo than $1,000,000 per occurrence, or such greater <br />or lesser amount as Lessor may from time to time require on notice to Lessee. As used <br />herein, "Full Insurable Valuc" means the full replacement value of the.Equipment or the <br />then applicable Purchase Price designated as Buch on the Schedule of Payments, whichever <br />is greater. All insurance shall be in form and amount and with companies reasonably <br />satisfactory to Lessor. All insurance for 10s8 or damage shall provide that losses shall <br />be payable to Lessor and Lesace, ao their interests may appear, and Lessee shall utilize <br />its best efforts to have all checks to Buch losses delivered to Lessor. Lessor shall be <br />named as an additional insured with respcct to such liability insurance. Lessee shall <br />pay the premiums and deliver to Lessor evidence satisfactory to Lessor of Buch insurance <br />coverage. Each insurer shall agree, by endorsement furnished to Lessor, that (a) it will <br />give Lessor 30 days prior written notice of the effective date of any material alteration <br />or cancellation of such policy; and (b) insurance as to the interest of any named <br />additional insured or loss payee other than Lcssee shall not be invalidated by any <br />actions, inactions, breach of warranty or conditions or negligence of Lessee with respect <br />to such policy. If Lessee insures similar properties against casualty 108s by <br />self-insurance, Lessee may satisfy its obligations with respect to casualty insurance <br />hereunder by providing self-insurance with respect to the Full Insurable Value of the <br />Equipment by means of an adequate insurance fund. Lessee shall carry workmen's <br />compensation insurance covering all employees working on, in, near or about the <br />Equipment, or demonstrate to the satisfaction of Lessor that adequate self-insurance is <br />provided, and shall require any other person or entity working on, in, or near or about <br />the Equipment to carry such coverage, and will furnish to Lessor certificates evidencing <br />such coverage throughout the Lease Term. The Net Proceeds of the insurance required <br />hereby shall be applied as provided in Section 8. As used herein "Net proceeds" means <br />the a~ount remaining from the gross proceeds of any insurance claim or condemnation award <br />after deduction of all expenses (including attorney's fees) incurred in the collection of <br />such claim or award. <br /> <br />If Lessee is a governmental entity and does not maintain liability insurance as <br />described above, Lessee agrees that it will maintain a program of self insurance, either <br />alone, or in cooperation with other governmental entities, that provides coverage to <br />Lessee in the form and amount stated above, but in any event, not les8 than the maximum <br />exposure to Lea see under any applicable governmental immunity rule, regulation, statute <br />or law. Lessee shall deliver to LeeDor evidence oatisfactory to Lessor of such <br />self-insurance coverage. <br /> <br />8. DAMAGE, DESTRUCTION AND CONDEMNATION: USE OF NET PROCEEDS. If prior to the <br />termination of the Lease Term (a) the Equipment io damaged in whole or in part by <br />casualtYi or (b) title to, or the temporary use of, the Equipment or the estate of Lessee <br />or Lessor in the Equipment shall be taken under the exercise of the power of eminent <br />domain by any governmental body or by any person acting under governmental authority; <br />Lessee and Lessor will cause the Net Proceedo of any insurance claims or condemnation <br />award to be applied to Lessee's obligations by this section. If the Equipment is not <br />deemed to be a total loss, Lessee shall, at ita expense (after the application of the Net <br />Proceeds of any insurance claims or condemnation award), cause the repair or replacement <br />of the Equipment. In the event of total destruction of the Equipment, Lessee shall pay <br />to Lessor on the next rent due date (as set forth on the Schedule of Payments) which <br />succeeds the date of such loss, an amount equal to the purchase price of the equipment <br />