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<br />condition, use, operation or return of the Equipment. Specifically, without limiting the foregoing, Lessee shall indemnify and hold
<br />Lessor harmless from and against all claims, to the extent applicable, of trademark, patent and copyright infringement, and of the
<br />wrongful use of trade secrets or proprietary information in any form, against all claims for property damage, personal injury or
<br />wrongful death, and against all claims that the Equipment or any part thereof is or has become a fixture with respect to any real
<br />property. Lessee's obligations hereunder will survive the expiration of this Lease with respect to events occurring or alleged to
<br />have occurred prior to the return of the Equipment to Lessor at the end of the term hereof, if Lessee does not purchase the same.
<br />Lessee shall promptly notify Lessor of any claim or action subject to the provisions of this Section that is brought or threatened
<br />against Lessee. Lessor shall have the right, at Lessor's sole discretion, to intervene in any such claim or action and to be defended
<br />with legal counsel of Lessor's choice.
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<br />12. FINANCIAL REPORTING REQUIREMENTS. Lessee shall maintain a standard, modern system of accounting that
<br />reflects the application of generally accepted accounting principles consistently applied. Lessee shall furnish to Lessor within one
<br />hundred eighty (180) days of the close of each fiscal year, Lessee's audited financial statements. Lessee shall furnish Lessor such
<br />fA.rlitional financial information, including, but not limited to, budgets, from time to time specified by Lessor in such form and with
<br />h certifications as Lessor may require.
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<br />13. INSURANCE. Throughout the term of this Lease, and until Lessor has received possession ofthe Equipment upon
<br />its return to Lessor or until Lessee purchases the Equipment if and as permitted under the terms set forth herein and in the
<br />Equipment Schedule, Lessee, at its expense, shall (a) keep the Equipment insured against collision (if applicable) loss, damage,
<br />fire and theft, with extended or combined additional coverage, in such amounts as Lessor may from time to time specifY;
<br />(b) maintain liability insurance in amounts satisfactory to Lessor concerning any property damage, personal injury or fatality that
<br />may result from the possession, use or operation of the Equipment; and (c) keep the Equipment insured against such other risks
<br />in such amounts as Lessor may from time to time specifY. All such insurance policies shall name Lessor as an additional insured.
<br />Lessee shall, on request of Lessor, deliver to Lessor the policies or other evidence of such insurance satisfactory to Lessor, with
<br />a standard (non-attribution) long form endorsement attached thereto or indicated therein, showing loss proceeds, if any, payable
<br />directly to Lessor, all in form satisfactory to Lessor, together with receipts for the paid premiums thereunder. The loss proceeds
<br />of such insurance, to the extent permitted by law, shall be paid directly to Lessor and such proceeds, less any costs and expenses
<br />incurred or paid by Lessor in the collection thereof, shall be applied, at the election of Lessor, either toward repair or replacement
<br />of the Equipment damaged, destroyed, lost or stolen or to payment of any rental payment or other amount payable by Lessee
<br />hereunder (including, but not limited to, any "Casualty Payment," as defined below), whether or not then due. For purposes of
<br />this Section, participation in the Texas Municipal League Intergovernmental Risk Pool shall constitute coverage.
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<br />Lessee will carry workmen's compensation insurance covering all employees working on, in or about the Equipment.
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<br />Lessee shall cause all insurance policies required under the terms of this Section to (a) provide by endorsement on the policies
<br />that no cancellation, alteration, change, lapse or expiration thereof shall be effective as to Lessor for thirty (30) days after receipt
<br />hXl Lessor of written notice thereof; (b) provide that the insurers shall hold harmless and waive any rights of subrogation against
<br />;sor; (c) be primary without right of contribution from any other insurance which is carried by Lessor; (d) waive any rights of
<br />off, counterclaim or other deduction against Lessor; (e) provide that Lessor shall have no obligation or liability for premiums,
<br />commissions, assessments or calls in connection with such insurance; and (f) provide that such policies will not be invalidated by
<br />any act or omission of Lessee or any other additional insured, and shall insure Lessor and its assigns, regardless of any breach or
<br />violation of any warranty, declaration, condition or covenant contained in such policies by Lessee or any other additional insured.
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<br />14. LOSS, DAMAGE OR DESTRUCTION OF EQUIPMENT. Lessee shall bear all risk of damage, destruction, loss
<br />of possession or theft of the Equipment or any part thereof, and no such event shall cause any abatement or release whatsoever in
<br />Lessee's liability to pay rent or to perform other covenants as provided herein. In the event that any Equipment is lost, stolen,
<br />condemned by any governmental authority, if applicable, totally destroyed, damaged beyond repair or permanently rendered unfit
<br />for use (each an "Event of Loss"), then Lessee shall promptly notifY Lessor of the occurrence of such Event of Loss and shall pay
<br />or cause to be paid to Lessor, not later than the earlier to occur of (a) the date that is ninety (90) days subsequent to the date such
<br />Event of Loss occurred or (b) the date of receipt of insurance proceeds in respect of such Event of Loss, a "Casualty Payment"
<br />(defined below) in respect of the Equipment as to which there has occurred such Event of Loss. In addition, Lessee shall continue
<br />to pay all rental payments that become due and payable on such Equipment after the date that such Event of Loss has occurred and
<br />prior to the date that the Casualty Payment thereon is actually received by Lessor. If Lessee shall have timely paid all such rental
<br />payments on such Equipment, all rental payments thereon that became due and payable prior to the date such Event of Loss
<br />occurred, and the Casualty Payment that is due and payable with respect thereto, then the liability of the Lessee to pay rent for such
<br />Equipment shall be discharged. For purposes of this Lease, "Casualty Payment" means, with respect to any item of Equipment
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