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<br />Section 11.2. Assignaent and Subleasing by Lessee. Neither this Lease nor Lessee/s interest in the Equipment may be
<br />assigned by Lessee without the written consent of Lessor. However,the Equipment may be subleased by Lessee, in whole or in part,
<br />without the consent of Lessor, subject, however, to each of the following conditions:
<br />( i) This Lease and the obligation of Lessee to make Rental Payments hereunder, shall remain
<br />obligations of Lessee.
<br />(ii) The sublessee shall assume the obligations of Lessee hereunder to the extent of the interest
<br />subleased.
<br />( Hi) Lessee shall, wi thin thirty (30) days after the deli very thereof, furnish or cause to be
<br />furnished to Lessor a true and cOlllplete copy of such sublease.
<br />(ivl No sublease by Lessee shall cause the Equipment to be used for a purpose other than a
<br />governmental function authorized under the provision of the Constitution and laws of the state,
<br />(v) No sublease shall cause the Interest component of the Rental Payments due with respect to the
<br />Equipment to become includible in gross income of the recipient for federal income tax
<br />purposes.
<br />Section 11.3. Restriction on Mortgage or Sale of Equiplent by Lessee. Except as provided in Section 11.2, Lessee will
<br />live mortgage, sell, assign, transfer or convey the Equipment or any portion thereof during the Term of this Lease, or remove
<br />the same from its boundaries, without the written consent of Lessor.
<br />ARTICLE XII
<br />EVENTS OF DEFAULT MID REMEDIES
<br />Section 12.1. Events of Default Defined, The following shall be "events of default" under this Lease and the terms
<br />"events of default" and "default" shall mean, whenever they are used in this Lease, with respect to the Equipment, anyone or
<br />more of the following events:
<br />(i) Failure by Lessee to pay Rental Payment or other payment required to be paid under this Lease at the time specified
<br />herein and the continuation of said failure for a period of three (3) days after telephonic or telegraphic notice given by Lessor
<br />that the payment referred to in such notice has not been received, such telephonic or telegraphic notice to be subsequently
<br />confirmed in writing, or after written notice.
<br />(H) Failure by Lessee to observe and perfon any covenant, condition or agreement on its part to be observed or
<br />perfoned, other than as referred to in Clause (i) of this Section, for a period of thirty (30) days after written notice
<br />specifying such failUre and requesting that it be remedied has been give to Lessee by Lessor, unless Lessor shall agree in
<br />writing to an extension of such time prior to its expiration: provided, however, if the failure stated in the notice cannot be
<br />corrected within the applicable period, Lessor will not unreasonably withhold its consent to an extension of such time if
<br />corrective action is instituted by Lessee within the applicable period and diligently pursued until the default is corrected.
<br />(iii) The filing by Lessee of a voluntary petition in bankruptcy, or failure by Lessee promptly to lift any execution,
<br />garnishment or attachment of such consequence as would impair the ability of Lessee to carryon its governmental function or
<br />adjudication of Lessee as a bankrupt, or assignment by Lessee for the benefit of creditors, or the entry by Lessee into an
<br />agreement of composition with creditors, or the approval by a court of competent jurisdiction of a petition applicable to Lessee
<br />in any proceedings instituted under the provisions of the Federal Bankruptcy Statute, as amended, or under any similar acts which
<br />hereafter be enacted.
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<br />e provisions of this Section 12.1 and Section 12.2 are subject to the following limitation: if by reason of force majeure
<br />Lessee is unable in whole or in part to carry out its obligations under this Lease with respect to the Equipment Group, other
<br />than its obligation to pay Rental Payments with respect thereto which shall be paid when due notwithstanding the provisions of
<br />this paragraph, Lessee shall not be deemed in default during the continuance of such inability. The term "force majeure" as
<br />used herein shall mean, without limitation, the following: acts of God: strikes, lockouts or other labor disturbances: acts
<br />of public enemies: orders or restraints of any kind of the government of the United states of America or the state or their
<br />respective departments, agencies or officials, or any civil or military authority: insurrections: riots; landslides; earthquakes;
<br />fires; storms: droughts; floods: explosions; breakage or accident to machinery, transmission pipes or canals~ or any other cause
<br />or event not reasonably within the control of Lessee and not resulting from its negligence. Lessee agrees, however, to remedy
<br />with all reasonable dispatch the cause or causes preventing Lessee from carrying out its obligations under this Lease; provided
<br />that the settlement of strikes, lockouts and other labor disturbances shall be entirely within the discretion of Lessee and
<br />Lessee shall not be required to make settlement of strikes, lockouts and other labor disturbances by acceding to the demands
<br />of the opposing party or parties when such course is in the judgment of Lessee unfavorable to Lessee,
<br />Section 12.2. ReJedies on Default. Whenever any event of default referred to in Section 12,1 hereof shall have
<br />happened and be continuing with respect to the Equipment, Lessor shall have the right, at its option and without any further
<br />demand or notice, to take one or any combination of the following remedial steps:
<br />(i) Lessor, with or without terminating this Lease, may declare all Rental Payments due or to become due during the
<br />Original Term or the Additional Term of this lease in effect when the default occurs to be immediately due and payable by
<br />Lessee, whereupon such Rental payments shall be immediately due and' payable.
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