Common use of Liability for Loss and Damage Clause in Contracts

Liability for Loss and Damage. Lessee shall be responsible for any loss of or damage to the Equipment during the Term of the Lease caused by Xxxxxx’s gross negligence or willful misconduct, after the Final Acceptance Date, ordinary wear and tear excepted. If the Equipment is lost, stolen, or damaged while in Xxxxxx’s possession, Xxxxxx will promptly notify the Lessor of such event. In the event of such loss or damage, Lessee, at its option, shall: (i) repair the Equipment to return it to good working order; or (ii) replace the Equipment with an Equipment of the same type and condition or with a later model (upon the Lessor’s written approval), in good condition and working order, free and clear of all liens and encumbrances; or (iii) pay the Lessor the then-current Fair Market Value (for purposes of this Appendix B “Fair Market Value” shall mean the price the Equipment would sell for on the open market immediately before the loss of or damage to the Equipment has occurred) of the Equipment, less any rental payments previously made. In no event shall Lessee’s aggregate liability for any loss of or damage to the Equipment exceed the then-current Fair Market Value of the Equipment.

Liability for Loss and Damage. Lessee shall be responsible for any loss of or damage to the Equipment during the Term of the Lease caused by Xxxxxx’s gross negligence or willful misconduct, after the Final Acceptance Date, ordinary wear and tear excepted. If the Equipment is lost, stolen, or damaged while in Xxxxxx’s possession, Xxxxxx will promptly notify the Lessor of such event. In the event of such loss or damage, Lessee, at its option, shall: (i) repair the Equipment to return it to good working order; or (ii) replace the Equipment with an Equipment of the same type and condition or with a later model (upon the Lessor’s written approval), in good condition and working order, free and clear of all liens and encumbrances; or (iii) pay the Lessor the then-current Fair Market Value (for purposes of this Appendix B STCs “Fair Market Value” shall mean the price the Equipment would sell for on the open market immediately before the loss of or damage to the Equipment has occurred) of the Equipment, less any rental payments previously made. In no event shall Lessee’s aggregate liability for any loss of or damage to the Equipment exceed the then-current Fair Market Value of the Equipment.