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<br />interests, under this Lease. <br /> <br />10. MAINTENANCE AND REPAIRS. Lessee, at its own cost and expense, shall (a) maintain and keep the Equipment <br />and all components thereof in good repair, condition and working order and in good condition as to appearance and mechanical <br />performance, ordinary wear and tear from authorized use excepted, (b) make all reasonable and necessary repairs, (c) purchase <br />replacements for and replace worn or defective components of the Equipment, so as to keep the Equipment in good mechanical and <br />working order, and (d) cause the Equipment and all components thereof to meet the applicable standards of any applicable <br />governmental agency with jurisdiction over Lessor, Lessee or the Equipment whether or not such requirements, by their terms, are <br />normally imposed upon Lessee. Lessee shall pay for any and all replacement parts and components required by this section, and all <br />such replacement parts and components shall be free and clear of all liens and encumbrances. Title to all such replacement parts and <br />components shall immediately pass to Lessor upon installation thereof. <br /> <br />11. ALTERATIONS. Without the prior written consent of Lessor, Lessee shall not make any alterations, additions or <br />improvements to the Equipment, except that Lessee shall make any and all alterations and additions to the Equipment that are required <br />by any governmental authority having relevant jurisdiction, if such alterations or additions are required to comply with health, safety or <br />environmental standards. All additions and improvements of whatsoever kind or nature made to the Equipment shall belong to and <br />become the property of Lessor upon the expiration, or earlier termination of this Lease. <br /> <br />12. NO WARRANTIES BY LESSOR. LESSEE HAS SELECTED BOTH (A) THE EQUIPMENT AND (B) THE PERSON <br />OR ENTITY FROM WHOM LESSOR IS TO ACQUIRE THE EQUIPMENT OR THE RIGHT TO POSSESSION AND USE OF THE <br />EQUIPMENT (THE "VENDOR"). LESSOR MAKES NO WARRANTY, EITHER EXPRESS OR IMPLIED, AS TO ANY MATTER <br />WHATSOEVER, INCLUDING, WITHOUT LIMITATION, THE DESIGN OR THE CONDITION OF THE EQUIPMENT OR ITS <br />MERCHANTABILITY OR ITS FITNESS FOR ANY PARTICULAR PURPOSE, AND, AS TO LESSOR, LESSEE LEASES THE <br />EQUIPMENT "AS-IS". LESSOR HAS ONLY THE TITLE TO THE EQUIPMENT THAT WAS CONVEYED TO LESSOR BY LESSOR'S <br />PREDECESSOR IN TITLE, AND THAT TITLE IS FREE FROM LIENS AND ENCUMBRANCES THAT AROSE FROM AN ACT OR <br />OMISSION OF LESSOR OTHER THAN A CLAIM OF ANY PERSON OR ENTITY BY WAY OF INFRINGEMENT OR THE LIKE. <br />LESSOR MAKES NO OTHER WARRANTY WITH RESPECT TO TITLE TO THE EQUIPMENT. IF ANY ITEM OF EQUIPMENT IS <br />NOT PROPERLY INSTALLED, DOES NOT OPERATE AS REPRESENTED OR WARRANTED BY THE VENDOR AND/OR THE <br />MANUFACTURER, OR IS UNSATISFACTORY FOR ANY REASON, LESSEE SHALL MAKE ANY CLAIM ON ACCOUNT THEREOF <br />SOLELY AGAINST SUCH VENDOR AND/OR MANUFACTURER AND SHALL, NEVERTHELESS, PAY LESSOR ALL RENTS <br />PAYABLE UNDER THIS LEASE. LESSOR HEREBY AGREES TO ASSIGN TO LESSEE, SOLELY FOR THE PURPOSE OF MAKING <br />AND PROSECUTING ANY SUCH CLAIM, ALL OF THE RIGHTS WHICH LESSOR HAS AGAINST SUCH VENDOR AND/OR THE <br />MANUFACTURER FOR BREACH OF WARRANTY OR OTHER REPRESENTATION REPRESENTING THE EQUIPMENT. <br />LESSEE'S OBLIGATION TO PAY RENTALS UNDER THIS LEASE IS IRREVOCABLE, ABSOLUTE, UNCONDITIONAL, AND <br />INDEPENDENT OF LESSOR'S OBLIGATIONS UNDER THIS LEASE, AND SHALL NOT BE SUBJECT TO ANY REDUCTION, <br />OFFSET OR COUNTERCLAIM. LESSOR SHALL NOT BE LIABLE FOR ANY DIRECT OR CONSEQUENTIAL DAMAGES <br />INCURRED BY LESSEE AS A RESULT OF ANY BREACH OF WARRANTY OR REPRESENTATION WITH RESPECT TO THE <br />EQUIPMENT AND LESSOR SHALL NOT BE LIABLE TO LESSEE FOR LOSS OF USE OF THE EQUIPMENT, OR FOR ANY <br />INTERRUPTION IN LESSEE'S BUSINESS OCCASIONED BY LESSEE'S INABILITY TO USE THE EQUIPMENT, FOR ANY REASON <br />WHATSOEVER. THE PROVISIONS OF THIS PARAGRAPH ARE INTENDED TO BE A COMPLETE EXCLUSION AND NEGATION <br />OF ANY EXPRESS OR IMPLIED WARRANTIES BY LESSOR WITH RESPECT TO THE EQUIPMENT, WHETHER ARISING UNDER <br />THE UNIFORM COMMERCIAL CODE OR UNDER ANY OTHER LAW NOW OR HEREAFTER IN EFFECT, OR OTHERWISE <br />EXCEPT THE LIMITED WARRANTY OF THE LESSOR WITH RESPECT TO THE TITLE TO THE EQUIPMENT, SET FORTH <br />ABOVE. <br /> <br />13. INSURANCE. Lessee shall provide, maintain and pay (a) insurance against the loss or theft of or damage to the <br />Equipment, for the amount of the Casualty Payment from time to time, naming Lessor as a loss-payee or mortgagee, and (b) public <br />liability and property damage insurance, naming Lessor as an additional insured. All such insurance shall be in form and amount and <br />with companies satisfactory to Lessor. Lessee shall deliver the poliCies of insurance or duplicates thereof or a certificate of insurance to <br />Lessor. All insurance which Lessee is required by this Lease to maintain shall provide that any loss thereunder shall be payable <br />notwithstanding any action, inaction, breach of warranty or condition, breach of declarations, misrepresentation or negligence of <br />Lessee, its employees or agents. Each such policy shall contain an agreement by the insurer that, notwithstanding lapse of any policy <br />for any reason, or right of cancellation by the insurer or any cancellation by Lessee, such policy shall continue in full force for the benefit <br />of Lessor, for at least thirty (30) days after written notice thereof to Lessor, and no alteration in any such policy shall be made except <br />upon thirty (30) days written notice of such proposed alteration to Lessor and written approval by Lessor. If Lessee fails to acquire any <br />policy of insurance required to be maintained pursuant to this paragraph, or fails to renew or replace any such policy at least twenty (20) <br />days prior to the expiration thereof, or fails to keep any such policy in full force and effect, Lessor shall have the option (but not the <br />obligation) to pay the premiums on any such policy of insurance or to take out new insurance in an amount, type, coverage and terms <br />satisfactory to Lessor. Any amounts paid therefor by Lessor shall be immediately due and payable to Lessor by Lessee upon demand <br />by Lessor. No exercise by Lessor of such options shall in any way affect the provisions of this Lease, including, but not limited to, the <br />provision that failure by Lessee to maintain the prescribed insurance shall constitute an Event of Default (as that term is defined in <br />Section 19 below). Lessee hereby assigns to Lessor all sums which become payable under any insurance covering the Equipment, <br />directs and insurer to pay all such proceeds to Lessor, and authorizes the Lessor to act as Lessee's attorney-in-fact to make claim for, <br />receive payment of and execute and endorse all documents, checks or drafts for, loss or damage under any such insurance policy. The <br />proceeds of such insurance, at the option of the Lessor, shall be applied (a) toward the replacement, restoration or repair of the <br />Equipment or (b) toward payment of the obligations of Lessee hereunder. <br /> <br />14. CASUALTY. For the purposes of this Lease, "Casualty Occurrence" shall mean any of the following events: <br /> <br />(a) The Equipment or any Item of Equipment no longer operates in the manner and for the purposes originally <br />contemplated, for any reason, and it is not made to so operate by repairs or installation of replacement parts in accordance with <br />