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FEB -23-98 15:31 FROM:MARK PRESSMAN ASSOC io:4154210755 PAGE 14/15
<br />SECTION 6.6 12amagetS2 or Destruction 9f_X&Lui*=en1 If after receipt of possession
<br />of any Equipment by Lessee, such Equipment is lost, stolen, destroyed or damaged beyond repair,
<br />Lessee shall as soon as practicable after such event either: (i) replace the same at Lessee's sole cost
<br />and expense with an equipment or equal or greater value to the Equipment immediately prior to the time
<br />of the loss occurrence, such replacement equipment to be subject to Lessor's reasonable approval,
<br />whereupon the replacement shall be substituted in this Lease by appropriate endorsement; or (ii) pav
<br />the applicable Purchase Option Price of the Equipment as set forth on Exhibit B. Lessee shall notify
<br />Lessor of which course of action it will take within fifteen (15) days after the loss occurrence_ if
<br />Lessee fails or refuses to notify Lessor within the required period, Lessor may, at its option, declare
<br />the Purchase Option Price applicable to the Equipment set forth on Exhibit B immediately due and
<br />payable, and Lessee shall be obligated to pay the same. The Net Proceeds of all insurance payable
<br />with respect to the Equipment shall be available to Lessee and shall be used to discharge Lessee
<br />obligation under this Section. On payment of the Purchase Option Price, this Lease shall no longer
<br />apply to such Equipment and Lessee thereupon shall become entitled to the Equipment AS IS,
<br />WITHOUT WARRANTIES, EXPRESS OR IMPLIED, INCLUDING WARRANTIES OF
<br />:MERCHANTABILITY OF FITNESS FOR ANY PARTICULAR PURPOSE OR FITNESS FOR
<br />THE USE CONTEMPLATED BY LESSEE, except that the Equipment shall not be subject to any lien
<br />or encumbrance created by or arising through Lessor.
<br />ARTICLE VII
<br />OTHER OBLIGATION OF LESSEE
<br />SECTION 7.1 lhsg; Permits. Lessee shall exercise due care in the installation, use,
<br />operation and maintenance of the Equipment, and shall not install, use, operate or maintain the
<br />Equipment improperly, carelessly, in violation of any State and Federal Law or for a purpose or in a
<br />manner contrary to that contemplated by this Lease. Lessee shall obtain all permits and licenses
<br />necessary for the installation, operation, possession and use of the Equipment. Lessee shall comply
<br />with all State and Federal Laws applicable to the installation, use, possession and operation of the
<br />Equipment, and if compliance with any such State and Federal Law required changes or additions to be
<br />made to the Equipment, such changes or additions shall be made by Lessee at its expense.
<br />SECTION 7.2 Min n f E i m by Lessee shall, at its own
<br />expense, maintain, preserve and keep the Equipment in good repair, working order and condition. and
<br />shall from time o time make all repairs and replacements necessary to keep the Equipment in such
<br />condition_ Lessor shall have no responsibility for any of these repairs or replacements.
<br />SECTION 7.3 Taxes, Other GovernMent i _har2ts and.Uti.litC arses. Except
<br />as expressly limited by this Section, Lessee shall pay all taxes and other charges of any kind which are
<br />at any time lawfully assessed or levied against or with respect to the Equipment, the Rental Payments
<br />or any part thereof, or which become due during the 'term of this Lease, whether assessed against
<br />Lessee or Lessor. Lessee shall also pay when due all bas, water, steam, electricity, heat, power,
<br />telephone, and other charges incurred in the operation, maintenance use, occupancy and upkeep of the
<br />Equipment, and all special assessment and charges lawfully trade by any governmental body for
<br />public improvements that may be secured by a lien on the Equipment; provided that with respect to
<br />special assessments or other governmental charges that may lawfully be paid in installments over a
<br />period of years, Lessee shall be obli_ated to pay only such installments as are required to be paid
<br />durin` the Term of this Lease as and when the same become due. Lessee shall not be required to pay
<br />anv federal, state or local income, inheritance, estate, succession, transfer, gift, franchise, gross
<br />receipts. profit, excess profit, capital stock, corporate, or other similar tax payable by Lessor, its
<br />successors or assigns, unless such tax is made in lieu or or as a substitute for any tax, assessment or
<br />charge which is the obligation of Lessee under this Section_ Lessee may, at its own expense and in its
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