Orange County NC Website
10 <br />8.3 "Secured Obligations" means Lessee's obligations to pay all Rent Payments and all other amounts due and payable under <br />all present and future Leases and to perform and observe all covenants, agreements and conditions (direct or indirect, absolute or <br />contingent, due or to become due, or existing or hereafter arising) of Lessee under all present and future Leases. <br />9. PERSONAL PROPERTY. All Equipment is and will remain personal property and will not be deemed to be affixed or attached to <br />real estate or any building thereon. <br />10. MAINTENANCE AND OPERATION. Lessee agrees it shall, at its sole expense: (a) repair and maintain all Equipment in good <br />condition and working order and supply and install all replacement parts or other devices when required to so maintain the Equipment <br />or when required by applicable law or regulation, which parts or devices shall automatically become part of the Equipment; and (b) <br />use and operate all Equipment in a careful manner in the nominal course of its operations and only for the purposes for which it was <br />designed in accordance with the manufacturer's warranty requirements, and comply with all laws and regulations relating to the <br />Equipment. If any Equipment is customarily covered by a maintenance agreement, Lessee will furnish Lessor with a maintenance <br />agreement by a party reasonably satisfactory to Lessor. No maintenance or other service for any Equipment will be provided by <br />Lessor. Lessee will not make any alterations, additions or improvements ( "Improvements ") to any Equipment without Lessor's prior <br />written consent unless the Improvements may be readily removed without damage to the operation, value or utility of such Equipment, <br />but any such Improvements not removed prior to the termination of the applicable Lease shall automatically become part of the <br />Equipment. <br />11. LOCATION; INSPECTION. Equipment will not be removed from or if Equipment is rolling stock its permanent base will not <br />be changed from, the Location without Lessor's prior written consent which will not be unreasonably withheld. Upon reasonable <br />notice to Lessee, Lessor may enter the Location or elsewhere during normal business hours to inspect the Equipment. <br />12. LIENS, SUBLEASES AND TAXES. <br />12.1 Lessee shall keep all Equipment free and clear of all Liens except those Liens created under its Lease. Lessee shall not <br />sublet or lend any Equipment or permit it to be used by anyone other than Lessee or Lessee's employees. <br />12.2 Lessee shall pay when due all Taxes which may now or hereafter be imposed upon any Equipment or its ownership, <br />leasing, rental, sale, purchase, possession or use, upon any Lease or upon any Rent Payments or any other payments due under any <br />Lease. If Lessee fails to pay such Taxes when due, Lessor shall have the right, but not the obligation, to pay such Taxes. If Lessor pays <br />any such Taxes, then Lessee shall, upon demand, immediately reimburse Lessor therefor. "Taxes" means present and future taxes, <br />levies, duties, assessments or other governmental charges that are not based on the net income of Lessor, whether they are assessed to <br />or payable by Lessee or Lessor, including, without limitation (a) sales, use, excise, licensing, registration, titling, gross receipts, stamp <br />and personal property taxes, and (b) interest, penalties or fines on any of the foregoing. <br />13. RISK OF LOSS. <br />13.1 Lessee bears the entire risk of loss, theft, damage or destruction of any Equipment in whole or in part from any reason <br />whatsoever ( "Casualty Loss "). No Casualty Loss to any Equipment shall relieve Lessee from the obligation to make any Rent <br />Payments or to perform any other obligation under any Lease. Proceeds of any insurance recovery will be applied to Lessee's <br />obligations under this Section 13. <br />13.2 If a Casualty Loss occurs to any Equipment, Lessee shall immediately notify Lessor of the same and Lessee shall, unless <br />otherwise directed by Lessor, immediately repair the same. <br />13.3 If Lessor determines that any item of Equipment has suffered a Casualty Loss beyond repair ( "Lost Equipment "), then <br />Lessee shall either: (a) immediately replace the Lost Equipment with similar equipment in good repair, condition and working order <br />free and clear of any Liens (except Lessor's Liens), in which event such replacement equipment shall automatically be Equipment <br />under the applicable Lease, and deliver to Lessor true and complete copies of the invoice or bill of sale covering the replacement <br />equipment; or (b) on earlier of 60 days after the Casualty Loss or the next scheduled Rent Payment date, pay Lessor (i) all amounts <br />owed by Lessee under the applicable Lease, including the Rent Payments due on or accrued through such date plus (ii) an amount <br />equal to the Termination Value as of the Rent Payment date (or if the Casualty Loss payment is due between Rent Payment dates, then <br />as of the Rent Payment date preceding the date that the Casualty Loss payment is due) set forth in the Payment Schedule to the <br />applicable Lease. If Lessee is making such payment with respect to less than all of the Equipment under a Lease, then Lessor will <br />provide Lessee with the pro rata amount of the Rent Payment and Termination Value to be paid by Lessee with respect to the Lost <br />Equipment and a revised Payment Schedule. <br />13.4 To the extent not prohibited by State law, Lessee shall bear the risk of loss for, shall pay directly, and shall defend <br />against any and all claims, liabilities, proceedings, actions, expenses (including reasonable attorney's fees), damages or losses arising <br />Page 3 of 6 <br />