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L� Page 4 4. TITLE TO EQUIPMENT; SECURITY INTEREST. During the Full Lease Term, title to the Equipment shall remain vested in the Lessor. Upon exercise by Lessee of the purchase option granted in Section 10 of this Lease, Lessor shall deliver to Lessee by appropriate documents title to the Equipment, free and clear of all liens and encumbrances. In the event of a default as set forth in Section 12 or nonappropriati_on as set forth in Sectioi 2(e), Lessee will surrender possession of the Equipment to Lessor as required by Section 2(e) and release all claim or right to said Equipment accordingly. To secure the prompt payment and performance as and when due of all of Leooee's obligations hereunder, and all other obligations of Lessee to Lessor, both now in existence and hereafter created, Lessee hereby grants to Lessor a first security interest in the Equipment, and all replacementn, substitutions and alternatives thereLor and thereof and *accessions thereto and all proceeds (cash and non - cash), includi4u the proceeds of all insurance policies, thereof. Lessee agrees that with respect to the Equipment Lessor shall have all of the rights and remedies of a secured party under the Uniform Commercial Code as in effect in the State. Lessee may not dispose of any of the Equipment without the prior written consent of Lessor, notwithstanding the fact that proceeds constitute part of the Equipment. 5. USE AND MAINTENANCE. Lessee shall use the Equipment in a manner consistent with the requirements of all applicable insurance policies,, and will not change the location of any Equipment as specified in the Acceptance Certificate without the prior written consent of Lessor, which consent shall not be unreasonably withheld. Lessee shall not attach the Equipment to any other item of equipment- in such a manner that the Equipment may be deemed to have become an accession to or a part of ouch other item of Qquipment. Lessee, at its own expense, will maintain the Equipment in as good operating condition as when delivered to Lessee hereunder, ordinary wear and tear resulting from proper use thereof alone excepted, and will make all repairs reasonable necessary for ouch purpose. In addition, if any component of the equipment shall become damaged beyond repair, Lessec at its own expense, will within a reasonable time replace ouch component, with replacement components which are free and clear of all liens or right of other and have value and utility at lease equal to the components replaced. All components which are attached to the Equipment which are essential to the operation of the Equipment or which cannot be detached from the Equipment without materially interfering with the operation of the Equipment or adversely affecting the value and utility which the Equipment would have had without the addition thereof, shall immediately be deemed incorporated in the Equipment and oubject to the terms hereof as if originally leased hereunder, and subject to the security interest of Lessor in the Equipment. Lessee shall not make any material alterations to the Equipment- without the prior written consent of Lessor, which consent shall not be unreasonably withheld. Upon reasonable advance notice, Lessor shall have the right to inspect- the Equipment and all maintenance records with respect- thereto, if any, at any reasonable time during normal business hours. 6. FEES; TAXES; OTHER GOVERNMENTAL AND UTILITY CHARGES. Lessee agrees to indemnify Lessor against all titling, recordation, documentary stamp and other fees, arising at ar time prior to or during the Lease Term, upon or relating to the Equipment or this Agreement. The parties contemplate that the Equipment will be used for a governmental purpose of Lessee and that the Equipment will be exempt from all taxes presently aooessc and levied with respect to personal property. In the event that the use, possession or acquisition of the Equipment is found to be subject to taxation in any form (except for net income taxes of Lessor), Lessee will pay as they come due all taxes and governmenta charges of any kind that may be aooesoed or levied against the Equipment, as well as al utility and other charges incurred in the operation, maintenance and use of the Equipme