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claim or award made under the terms of insurance policies <br />referred to in this Agreement.) paid because of loss or damage to <br />the Equipment, shall pass to Lessor at the time Lessee sends to <br />Lessor a written notice of termination. <br />Lessee shall hold title to the Equipment free of any <br />security interest of Lessor when Lessee completes the schedule of <br />payments specified in the Supplementary Schedule together with <br />the purchase option price. <br />(6) PROPERTY INTEREST IN THE EQUIPMENT: Lessee hereby <br />grants to Lessor a security interest in this Agreement; in the <br />Equipment; in any additions, repairs, replacements, substitutions <br />and modifications to the Equipment; and in all - proceeds of the <br />foregoing, including any net insurance proceeds paid because of <br />loss or damage to the Equipment, to the extent necessary to <br />secure Lessee's payment obligations to Lessor. However, Lessor <br />shall have no security interest in any additions or modifications <br />made by Lessee to the Equipment that can be removed without <br />damaging the Equipment or diminishing the value of the Equipment, <br />or in the proceeds of any such additions or modifications. <br />Lessee shall execute, at Lessor's request and expense, a <br />financing statement and other related documents that are <br />reasonably necessary under Article 9 of Chapter 25 (the Uniform <br />Commercial Code) of the North Carolina General Statutes to <br />perfect the above - described security interest by filing and to <br />maintain that security interest in perfected form. The Equipment <br />shall remain personal property whether or not it becomes attached <br />to any real property. If Lessor supplies Lessee with labels <br />4 <br />