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ADDITIONA( "?ROVISIONS CONCERNING RIGHTS OF— AE PARTIES
<br />7. DEFAULT & IESSOR'S REMEDIES 10. TITLE - Title to the Equipment shall pass to Lessee immediately upon
<br />acceptance of tht Equipment by Lessee, subjed to Lessor's security
<br />7.1 The occurrence of One or more of the foilowing events shall interest. Upon termination of this Lease under Section 9, Section 5.1
<br />constitute an Event of Default, whether occurring voluntarily, or Section 7, tide to the Equipment shall revert to Lessor.
<br />by operatlon of; law`or pursuant to any order of any court or
<br />govemmental agency:
<br />7.1.1 Failure by Lessee to' pay any Lease Payment within thirty (30)
<br />days of the tlme spedfied;
<br />7.1.2 Lessee's failure to rnmply with any other covenant, condidon or
<br />agreement of.Lessee hereunder for a period of thirty (30) days
<br />after nottce ttiereof.'?:
<br />;' 7.1.3 Lessee shall r make, •< permit or suffer any unauthorized
<br />assignment; transfer or other disposition of this Lease, or any
<br />interest herein' or of any item(s) of the Equipment or interest
<br />therein; ,, -
<br />7.1A Any other event, the occurrence of which causes Lessor to
<br />deem itself insecure.
<br />7.2 Upon the occurrence,of any Event of Default specified herein,
<br />Lessor may exercise any or all of the following remedies:
<br />7.2.1 Enforce thls Lease by appropriate action to collect amounts due
<br />or to become due hereunder, by acceleratlon or othervvise.
<br />7.2.2 Terminate this `Agreement and repossess the Equipment, in
<br />which event Lessee shall be Ilable for any amounts payable
<br />hereunder through the date of such termfnation and all costs
<br />and expenses :(induding, but not Iimited to reasonable
<br />attomeys' fees) incuned by Lessor in connecdon therewith.
<br />7.2.3 Sell the Equipment at'public or prlvate sale or rent or lease the
<br />equtpment;r_ In the' event the proceeds of such sale, less the
<br />costs of repossessfon (including reasonable attomeys' fees and
<br />the rnsts of sale) and intemal allocated costs and less any past
<br />due Lease ^ Payment5 or interest owing by Lessee ((the
<br />"disposition'credit"), do not equal the applicable Termination
<br />Value on the current, Lease Payment date, then Lessee shall be
<br />Jlabie for the difference between said disposition credit and
<br />such Terminatlon Value.
<br />7.2.4 Pursue and exercise any other remedy available At law or in
<br />equity, in which event Lessee shall be liable for any and all
<br />costs and expenses (induding but not limited to reasonable
<br />' attomeys' fees) incurred by Lessor in connectfon therewith.
<br />8. INTEREST ON DEFAULT - If Lessee faits to pay any Lease
<br />Payments(s) specifled in Section i within ten (10) days after the date
<br />due, Lessee shall pay Lessor fnterest on such delinquent Lease
<br />Payment(s) from the due date until paid at the lower of twelve percent
<br />(12%) per annum or the highest rate permitted by law.
<br />9. ASSIGNMENT & SUBLEASE
<br />LESSEE `SHALL NOT SELL; ASSIGN, TRANSFER, PLEDGE OR
<br />HYPOTHECATE ;THIS LEASE, THE EQUIPMENT OR ANY PART
<br />THEREOF, OR:' ANY INTEREST THEREIN, OR PERMIT THE
<br />" EQUIPMENT OR AY PART THEREOF TO BE USED BY ANYONE
<br />OTHER THAN LESSEE OR ITS EMPLOYEES. EXCEPT TO ITS
<br />CORPORATE AFFILIATES, LESSOR SHALL NOT SELL, ASSIGN,
<br />TRANSFER, PLEDGE OR HYPOTHECATE THIS LEASE TO
<br />ANYONE.
<br />11. SECURITY INTEREST - As security for Lessee's covenants and
<br />obligations under this Lease, Lessee grants to Lessor and its assignee
<br />a securiry Interest in the Equipment and all attachments, additlons,
<br />accessions and substitutlons to or for the Equipment. lessor may flle
<br />any financing statements that lessor deems necessary to perfect its
<br />interest in the equipment.
<br />12. LOSS OR DAMAGE TO EQUIPMENT - All risk of loss or damage to
<br />the Equipment is assumed by Lessee until it is retumed to Lessor. In
<br />the event of total loss of the Equipment, Lessee shall pay Lessor the
<br />Termination Value shown on the Payment Schedule for the cument
<br />Lease Payment date, less proceeds of insurance and salvage value of
<br />the Equipment.
<br />13. INSURANCE
<br />13.1 Lessee, at its own expense, will carry Comprehensive General
<br />Liabiliry (nsurance including rnntractual liability with minimum
<br />limits of $1,000,000 bodily injury each occurrence and $250,000
<br />property damage each occurrence. Lessee also agrees to have its
<br />Insurer include Lessor and its assigns as Additional Insureds.
<br />13.2 Lessee, at lts own expense, shall keep the Equipment insured
<br />against all risk of physical damage for no less than its actual cash
<br />value. Such insurance shall include a loss payable dause made
<br />out in favor of the Lessor, and the proceeds of same insurance, at
<br />the option of Lessor, shall be apptled toward the replacement,
<br />restoraqon or repalr of said Equ(pment, or to payment of any
<br />obligation to Lessee hereunder. PAYMENT OF ANY INSURANCE
<br />PROCEEDS SHALL NOT AFFEGT LESSEE'S OBLIGATIONS UNDER
<br />SECTIONy 12, INCLUDING ITS OBLIGATION TO PAY ANY
<br />DIFFERENCE BETWEEN TERMINATION VALUE/OPTION PRICE
<br />AND INSURANCE PROCEEDS AND SALVAGE PROCEEDS
<br />RECEIVED BY LESSOR. Altematively, upon prior approval by
<br />Lessor, Lessee may meet this requirement by furnishing Lessor
<br />with satisfactory proof of self-insurance and of Lessee's abiliry to
<br />meet its obligations hereunder.
<br />13.3 Lessee shall deliver to Lessor certificates or other evidence
<br />satisfactory to Lessor that insurance is maintained as required
<br />under Section 13.1 and 13.2 until Lessee fs no longer liable for
<br />loss or damage to the Equipment as provided in Section 12
<br />hereof. Such insurance shall be effective from the date of the
<br />Lease and shall Include a dause obligating the insurer to give
<br />Lessor not less than fifteen (15) days prior written notice of any
<br />material change in or cancellation of the insurance. If Lessee fails
<br />to deliver evidence of physical damage insurance or to maintain
<br />such insurance in force until Lessee is no longer liable for loss or
<br />damage to the Equipment under Section 12, it is understood that
<br />the Lessor may, bust shall not be obligated to purchase such
<br />insurance. Lessee agrees to pay the cost thereof at such time as
<br />Lessor demands or to have the cost thereof added to the Lease
<br />Payments due hereunder, at the sole discretion of Lessor.
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