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<br />taxation in any fonn (except for net income taxes of Lessor), Lessee will pay as they come due all taxes and governmental
<br />charges of any kind that may be assessed or levied against the Equipment, as well as all utility and other charges incurred
<br />in the operation, maintenance and use of the Equipment.
<br />
<br />7. INSURANCE. At its own expense, Lessee sha1l keep the Equipment covered against loss due to fire and the risks
<br />nonnally included in extended coverage, malicious mischief and vandalism, for not less than the Full Insurable Value of
<br />the Equipment; and Lessee shall also carry automobile insurance, including bodily injury liability and property damage
<br />liability with a single limit of not less than $1,000,000 per occurrence, or such greater or lesser amount as Lessor may
<br />from time to time require on notice to Lessee. As used herein, "Fu1l Insurable Value" means the fu1l replacement value of
<br />the Equipment or the then applicable Purchase Price designated as such on the Schedule of Payments, whichever is
<br />greater. All insurance shall be in form and amount and with companies reasonably satisfactory to Lessor. All insurance
<br />for loss or damage shall provide that losses shall be payable to Lessor and Lessee, as tJ:Jeir interests may appear, and
<br />Lessee shall utilize its best efforts to have all checks to such losses delivered to Lessor. Lessor,shall be named as an
<br />additional insured with respect to such liability insurance. Lessee shall pay the premiums and deliver to Lessor evidence
<br />satisfactory to Lessor of such insurance coverage. Each insurer shall agree, by endorsement furnished to Lessor, that (a) it
<br />will give Lessor 30 days prior written notice of the effective date of any material alteration or cancellation of such policy;
<br />and (b) insurance as to the interest of any named additional insured or loss payee other than Lessee shall not be
<br />invalidated by any actions, inactions, breach of warranty or conditions or negligence of Lessee with respect to such
<br />policy. If Lessee insures similar properties against casualty loss by self-insurance, Lessee may satisfy its obligations with
<br />respect to casualty insurance 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 compensation insurance covering all
<br />employees working on, in, near or about the Equipment, or demonstrate to the satisfaction of Lessor that adequate
<br />self-insurance is provided, and shall require any other person or entity working on, in, or near or about the Equipment to ill
<br />carry such coverage, and will furnish to Lessor certificates evidencing such coverage throughout the Lease Tenn. The Net
<br />Proceeds of the insurance required hereby shall be applied as provided in Section 8. As used herein "Net Proceeds" means
<br />the amount remaining from the gross proceeds of any insurance claim or condemnation award after deduction of all
<br />expenses (including attorney's fees) incurred in the collection of such claim or award.
<br />
<br />If Lessee is a governmental entity and does not maintain liability insurance as described above, Lessee agrees that it
<br />will maintain a program of self insurance, either alone, or in cooperation with other governmental entities, that provides
<br />coverage to Lessee in the form and amount stated above, but in any event, not less than the maximum exposure to Lessee
<br />under any applicable governmental immunity rule, regulation, statute or law. Lessee shall deliver to Lessor evidence
<br />satisfactory to Lessor of such self-insurance coverage.
<br />
<br />8. DAMAGE, DESTRUCTION AND CONDEMNATION: USE OF NET PROCEEDS. If prior to the tennination of
<br />the Lease Tenn (a) the Equipment is damaged in whole or in part ,h casualty; or (b) title to, or the temporary use of, the
<br />Equipment or the estate of Lessee 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; Lessee and Lessor will cause
<br />the Net Proceeds of any insurance claims or condemnation award to be applied to Lessee's obligations by this section. If
<br />the Equipment is not deemed to be a total loss, Lessee shall, at its expense (after the application of the Net Proceeds of
<br />any insurance claims or condemnation award), cause the repair or replacement of the Equipment. In the event of total
<br />destruction of the Equipment, Lessee shall pay to Lessor on the next rent due date (as set forth on the Schedule of
<br />Payments) which succeeds the date of such loss, an amount equal to the purchase price of the equipment less the total
<br />amount of all rents which represented equity in the equipment previously paid under this Agreement, plus rent due on
<br />such date, plus any other amounts then payable by Lessee hereunder. Upon such payment, the Lease Tenn shall
<br />tenninate, any security interest of Lessor in the Equipment shall terminate, and Lessee will acquire unencumbered title to
<br />the Equipment as provided in Section 10. If Lessee is not then in default hereunder, any portion of the Net Proceeds in
<br />excess of the amount required to pay in full Lessee's obligations as set forth in this Section shall be for the account of the
<br />Lessee. Lessee agrees that if the Net Proceeds are insufficient to pay in full Lessee's obligations as set forth in this
<br />Section, Lessee shall make such payments to the extent of any deficiency.
<br />
<br />II
<br />
<br />9. WARRANTY. Products and parts manufactured by TYMCO, INC., and all services perfonned by TYMCO, INC.,
<br />are subject to the applicable Warranty currently published by TYMCO, INC., which Warranty is, by this reference,
<br />incorporated herein. Copies of said Warranty may be obtained from any office of TYMCO, INC., or from any authorized
<br />TYMCO dealer. LESSOR MARES NO OTHER WARRANTY EXPRESS OR IMPLIED REGARDING THE
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