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during the applicable year in which such payments are due.
<br />(d) A portion of each payment of rent is paid as, and represents payment of, interest, and the
<br />balance of each payment of rent is paid as, and represents payment of, principal. The applicable Schedule for each item
<br />of Equipment sets forth the interest component and principal component of each payment of rent during the Lease Term.
<br />(e) Lessee shall have the right to prepay, in part or in whole, the rent due under the Lease, on
<br />any date hereafter at a price equal to the principal component hereof outstanding as of such date, plus accrued
<br />interest to the date fixed for prepayment, without penalty or premium.
<br />4. NET LEASE; OBLIGATION TO PAY RENT UNCONDITIONAL This is a net lease. All rent and other
<br />sums payable by Lessee shall be paid promptly when due without notice or demand of any character. Except as
<br />p ro v i d e d i n S e c t i o n 2(c) he r e o f, Lessee's obligation for the payment of rent hereunder is and shall be absolute
<br />and unconditional and shall not be subject to any reduction, offset, counter - claim, abatement, suspension, deferment
<br />or diminution for any reason whatsoever, including without limitation any destruction or damage to the Equipment any
<br />limitation of or interference with the use or possession of the Equipment or any component thereof (including any such
<br />limitation or interference arising out of any defect in Lessor's title to the Equipment), condemnation or requisition of the
<br />Equipment or any component thereof, or any other occurrence or circumstance (whether similar or dissimilar to those
<br />enumerated) which prevents the Lessee from using, possessing or enjoying the Equipment, any breach by Lessor of the
<br />terms and conditions of the Lease shall not abate, alter, suspend, or modify Lessees' independent duty to pay rent and
<br />other charges. Lessee waives {a} any and all existing and future claims and offsets against rent or other payments due to
<br />Lessor under this Lease, (b) all rights now or hereafter conferred by statute or otherwise to terminate or surrender this
<br />Lease or the Equipment or any component of the Equipment, and (c) any abatement, suspension, deferment, diminution or
<br />reduction of any rent or other sums payable hereunder on account of any such occurrence.
<br />5. LESSEES' INSPECTION: CONCLUSIVE PRESUMPTIONS. Lessee shall inspect each item of Equipment
<br />within three (3) business days after receipt thereof. Unless Lessee within such period of time gives written notice to Lessor
<br />specifying any defect in or other proper objection to the Equipment, Lessee agrees that it shall be conclusively presumed,
<br />as between Lessor and Lessee, that (a) Lessee has received and has fully inspected the Equipment, (b) Lessee has
<br />acknowledged that the Equipment is in good condition and repair, and (c) Lessee is satisfied with and has accepted
<br />the Equipment in such good condition and repair and as satisfactory in all respects forthe purposes of this Lease.
<br />If Lessor so requests Lessee shall furnish Lessor a written statement (1) setting forth the matters stated in
<br />clauses "(a)," "(b)," and "(c)," and (2) approving the contract or invoice for such Equipment, and (3) requesting Lessor
<br />to pay Vendor the purchase price thereof.
<br />6. USES AND LOCATION.
<br />(a) Lessee shall use the Equipment in a careful and proper manner, only in the normal and ordinary
<br />course of Lessee's business, and Lessee shall comply with, and shall use the Equipment in accordance with, (1) any
<br />and all state, federal, and local laws, rules, regulations, statutes and ordinances applicable to Lessor and /or Lessee
<br />relating to the use, possession, operation, licensing, registration, maintenance or inspection of the Equipment, (2)
<br />inspection policies in effect with respect to the Equipment, (3) warranties of any and all vendors and manufacturers with
<br />respect to the Equipment or any component thereof, and (4) operating instructions furnished by any and all
<br />manufacturers, vendors and other suppliers of the Equipment.
<br />(b) Lessor shall have the right to inspect the Equipment and observe its use during normal business
<br />hours and any other reasonable time and, to the extent permitted by law, enter into and upon the premises where the
<br />Equipment may be located for such purpose. Lessee shall maintain possession of each Item of Equipment at, and shall
<br />not remove any item of Equipment from, its location as shown on the Schedule for that item of Equipment without
<br />Lessor's prior written consent. Lessee shall give Lessor immediate notice of any attachment or otherjudicial process
<br />affecting any item of Equipment and title to such item, whenever requested by Lessor, shall advise Lessor of the exact
<br />location of each Item of Equipment.
<br />TITLE; SECURITY INTEREST
<br />(a) Upon Lessee's acceptance of any Equipment under this Agreement, title to the equipment shall
<br />vest in Lessee, subject to Lessor's security interest therein and all of Lessor's other rights under this Agreement.
<br />(b) As collateral security for the Secured Obligations Lessee hereby grants to Lessor a first priority
<br />security interest in any and all of the Equipment. Lessee agrees to execute and deliver to Lessor all necessary documents
<br />to evidence and perfect such security interest, including without limitation, Uniform Commercial Code (UCC) financing
<br />statements and any amendments thereto.
<br />(c) "Secured Obligations" means Lessee's obligations to pay all rent payments and all other amounts
<br />due and payable under the Municipal Lease Agreement.
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