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<br />tile budget is not approved. It is Lessee's intent to make LeHse Payments for the full
<br />Lease Term if funds are legally available therefore, and in tha t regard Lessee represents
<br />that the use of the Equipment is essential to its proper, efficient and economic
<br />operation.
<br />
<br />4. NONAPPROPlUATION OF FUNDS. In ttle event no funds or insufficient funds
<br />are appropriated and budgeted or are otherwise avaiJnble by any meHns whatsoever in any
<br />fiscal period for Lease Payments due under this Lease, then tile Lessee will immediately
<br />notify the Lessor or its assignee of such occurrence and this L!::'tse shall t~;t'fn ina te on the
<br />last day of the fiscnl period for which appropriations were received without penalty or
<br />esxpense to Lessee of any kind whatsoever, except as to the pOi'tions of Lease PaYi,,"cnts
<br />herein agreed upon for which funds shall havc been appropriated and budgeted or are
<br />otherwise available. In the event of such termination, Lessee agrees to peaceably
<br />surrenrler possession of the Eqllipment to Lessor or its assignee on the da te of such
<br />termination, packed for shipment in accordance with manufacturer specifications and
<br />freight prepaid and insured to any location in the continental United States designated by
<br />Lessor. Lessor will havc all legal and cquitablc rights and rcmedies to takc posscssion of
<br />the Equipment.
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<br />Notwithstanding the foregoing, Lessee agrees that: (i) it will not cancel this
<br />Lease under the provisions of this Section if any funds are appropriated to it, 01' by it, for
<br />the acquisition, retention or operation of the Equipment or other equipment performing
<br />functions similar to the Equipment for the fiscal period in which such termination occurs
<br />or the next succeeding fiscal period thereafter and (ji) it will not during the Lease Term
<br />give priority in the applieation of funds to any other functionally similar equipment. This
<br />paragraph will not be construed so as to permi t Lessee to term inate this Lease in order
<br />to acquire any other equipment or to allocate funds directly 0[' indirectly to perform
<br />essentially tile same application for which the Equipment is intended.
<br />
<br />5. LIMITATION ON WARRANTIES. Lessee acknowledges and agrees that the
<br />Equipment is of a size, design, and capacity selected by Lessee, that Lessor is neither a
<br />manufacturer nor a vendor of such equipment and that LESSOR HAS NOT MADE, AND
<br />DOES NOT HEREBY MAKE, ANY REPRESENTATION, WARRANTY, OR COVENANT,
<br />EXPRESS OR IMPLIED, WITH RESPECT TO THE MERCHANTABILITY, CONDITION,
<br />QUALITY, DURABILITY, DESIGN, OPERATION, FITNESS FOR USE, OR SUITABILITY
<br />OF THE EQUIPMENT IN ANY RESPECT WHATSOEVER OR IN CONNECTION WITH OR
<br />FOR THE PURPOSES AND USES OF LESSEE, OR ANY OTHER REPRESENTATION,
<br />WARRANTY, OR COVENANT OF ANY KIND OR CHARACTER, EXPRESS OR IMPLIED,
<br />WITH RESPECT THERETO, AND LESSOR SHALL NOT BE OBLIGATED Oil LIABLE
<br />FOR ACTUAL, INCIDENTAL, CONSEQUENTIAL, OR OTHER DAMAGES OF OR TO
<br />LESSEE OR ANY OTHER PERSON OR ENTITY ARISING OUT OF OR IN CONNECTION
<br />WITH TIlE USE OR PERFORMANCE OF TilE EQUIPMENT ,\ND TilE MAINTENANCE
<br />THEREOF.
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<br />Lessor hereby assigns to Lessee during the Lease Term, so long as no Event of
<br />Default bas occurred hereunder and its" continuing, all manufacturer's warranties, if any,
<br />expressed or implied with respect to the Equipment, and Lessor authorizes Lessee to
<br />obtain the customary services furnished in connection with such warranties at Lessee's
<br />expense.
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