Common use of Loss and Damage Clause in Contracts

Loss and Damage. Lessee shall assume and bear the risk of loss, theft and damage (including any governmental requisition, condemnation or confiscation) to the Equipment and all component parts thereof from any and every cause whatsoever, whether or not covered by insurance. No loss or damage to the Equipment or any component part thereof shall impair any obligation of Lessee under this Lease Agreement, which shall continue in full force and effect except as hereinafter expressly provided. Lessee shall repair or cause to be repaired all damage to the Equipment. In the event that all or part of the Equipment shall, as a result of any cause whatsoever, become lost, stolen, destroyed or otherwise rendered irreparably unusable or damaged (collectively, the “Loss”) then Lessee shall, within ten (10) days after the Loss, fully inform Lessor in writing of such a Loss and shall pay to Lessor the following amounts: (i) the Monthly Lease Charges (and other amounts) due and owing under this Lease Agreement, plus (ii) one-hundred (100%) percent of the original cost of the Equipment subject to the Loss if the loss occurs in the first nine months of the Initial Term, and, thereafter, the original cost of the Equipment amortized by the subsequent Monthly Lease Charges received by Lessor during the Initial Term using an amortization rate of eight hundred and ninety (890) basis points over the interest rate of the three (3) year United States Treasury Note as reported by the Federal Reserve on the Commencement Date (collectively, the sum of (i) plus (ii) shall be the “Casualty Loss Value”). Notwithstanding the proceeding, if Lessee has provided notice to terminate the applicable Lease Schedule prior to informing Lessor in writing of a Loss and such Loss is not covered by insurance proceeds pursuant to Section 13 hereof, then Lessee shall pay two (2) times the Casualty Loss Value on the Equipment subject to such Loss. Upon receipt by Lessor of the Casualty Loss Value: (i) the applicable Equipment shall be removed from the Lease Schedule; and (ii) Lessee’s obligation to pay Lease Charges associated with the applicable Equipment shall cease. Lessor may request, and Lessee shall complete, an affidavit(s) that swears out the facts supporting the Loss of any item of Equipment.

Loss and Damage. Lessee shall assume and bear the assumes all risk of loss, theft (and damage (including any governmental requisition, condemnation or confiscation) to the Equipment and all component parts thereof from any and every cause whatsoever, whether or not covered by insurance. No loss or damage to the Equipment or any component part thereof shall impair any obligation of Lessee under this Lease Agreement, which shall continue in full force and effect except as hereinafter expressly provided. Lessee shall repair or cause to be repaired all damage to the Equipment. In the event that all or part of the Equipment shall, as a result of any cause whatsoever, become lost, stolen, destroyed or otherwise rendered irreparably unusable or damaged (collectively, the “Loss”) then Lessee shall, within ten (10) days after the Loss, fully inform promptly notify Lessor in writing of any occurrence of) any damage to or loss, theft, confiscation or destruction of any Equipment from any cause whatsoever (a “Casualty”) from the date shipped or otherwise made available to Lessee and continuing until it is returned to and accepted by Lessor in the condition required by the Lease, including Section 8 of this Agreement. If any Equipment suffers a Casualty which Lessor determines is reparable, Lessee shall at its expense promptly place the same in good repair, condition or working order. If any Equipment suffers a Casualty which Lessor determines is beyond repair or materially impairs its residual value (a “Total Loss”), Lessee shall at Lessor’s option either (a) promptly replace such Equipment with a Loss and shall pay similar item reasonably acceptable to Lessor having an equivalent value, utility and remaining useful life of such Equipment, whereupon such replacement items shall constitute Equipment for all purposes the Lease, or (b) on the Rent payment date following amounts: such Casualty (or, if none, within 30 days) pay Lessor the Stipulated Loss Value for such Equipment, together with all Rent scheduled for payment on such date, and all accrued interest, late charges and other amounts then due and owing under the Lease. Upon such payment following a Total Loss, the Lease with respect to the Equipment suffering a Total Loss shall terminate, and Lessor shall transfer all of its right, title and interest in such Equipment, free from all liens and encumbrances created by Lessor, but otherwise on an “AS-IS, WHERE-IS,” quitclaim basis. If less than all Equipment under a Schedule suffers a Total Loss, (i) the Monthly Lease Charges (and other amounts) due and owing under this Lease Agreement, plus (ii) one-hundred (100%) percent of the original cost of the Equipment subject to the Loss if the loss occurs in the first nine months of the Initial Term, and, thereafter, the original cost of the Equipment amortized by the subsequent Monthly Lease Charges received by Lessor during the Initial Term using an amortization rate of eight hundred and ninety (890) basis points over the interest rate of the three (3) year United States Treasury Note as reported by the Federal Reserve on the Commencement Date (collectively, the sum of (i) plus (ii) shall be the “Casualty Loss Value”). Notwithstanding the proceeding, if Lessee has provided notice to terminate the applicable Lease Schedule prior to informing Lessor in writing of a Loss and such Loss is not covered by insurance proceeds pursuant to Section 13 hereof, then Lessee shall pay two (2) times the Casualty Stipulated Loss Value on the Equipment subject with respect to any such Loss. Upon receipt by Lessor item of the Casualty Loss Value: (i) the applicable Equipment shall be removed from calculated by reference to the Lease allocable portion of “Lessor’s Cost” provided in the applicable Schedule; , Rent or other amount related to such item, as reasonably determined by Lessor, and (ii) Lesseethe remaining Rent under the Schedule shall be proportionately reduced as reasonably calculated by Lessor upon Lessor’s obligation to pay Lease Charges associated with receipt of the applicable Equipment shall cease. Lessor may request, and Lessee shall complete, an affidavit(s) that swears out the facts supporting the Loss of any item of Equipmentpayments described above.

Loss and Damage. Lessee shall assume and bear hereby assumes the entire risk of loss, theft and damage (including any governmental requisition, condemnation to or confiscation) to loss of the Equipment and all component parts or any item thereof from any and every cause whatsoever, whether or not covered by insurance. No loss or damage insured against, from and after the date the Equipment is delivered to the Equipment Location until returned to Lessor. No loss, theft, damage or any component part thereof destruction of the Equipment shall impair alter or relieve Lessee of any obligation of Lessee under this Lease AgreementLease, which shall continue in full force and effect except as hereinafter expressly providedeffect. Lessee shall repair or cause agrees to be repaired all give Lessor prompt notice of any damage to or loss of the Equipment. In the event that all or of damage to any part of the Equipment, Lessee shall immediately place the same in good repair at Lessee’s expense. In the event of damage to or loss of the Equipment shallor any item thereof, as a result and irrespective of payment from any cause whatsoeverinsurance coverage maintained by the Lessee, become lostbut applying full credit therefor, stolen, destroyed or otherwise rendered irreparably unusable or damaged (collectively, the “Loss”) then Lessee shall, within ten at the option of Lessor, (10a) days after place the LossEquipment in good repair, fully inform condition and working order or (b) replace the Equipment with identical equipment in good repair, condition and working order and transfer clear title to such replacement equipment to Lessor, whereupon such replacement equipment shall be deemed the Equipment for all purposes hereof, or (c) pay Lessor in writing of such a Loss and shall pay to Lessor cash the following amountsfollowing: (i) the Monthly Lease Charges (and other amounts) all amounts due and owing under by Lessee to Lessor with respect to this Lease Agreement, up to the date of the loss; plus (ii) one-hundred the total amounts due for the remaining term of this Lease attributable to said items; plus (100%iii) percent Lessor’s estimate of the original cost of Lessor’s residual interest in the Equipment subject to the Loss if the loss occurs in the first nine months as of the Initial Term, and, thereafter, the original cost of the Equipment amortized by the subsequent Monthly Lease Charges received by Lessor during the Initial Term using an amortization rate of eight hundred and ninety (890) basis points over the interest rate of the three (3) year United States Treasury Note as reported by the Federal Reserve on the Commencement Date (collectively, the sum of (i) plus (ii) shall be the “Casualty Loss Residual Value”), which will be determined at Lessor’s sole discretion. Notwithstanding the proceedingUpon Lessor’s receipt of such payment, if Lessee has provided notice to this Lease shall terminate the applicable Lease Schedule prior to informing Lessor in writing of a Loss and such Loss is not covered by insurance proceeds pursuant to Section 13 hereof, then Lessee shall pay two (2) times the Casualty Loss Value on the Equipment subject only with respect to such Loss. Upon receipt by Lessor of the Casualty Loss Value: (i) the applicable Equipment shall be removed from the Master Lease Schedule; and (ii) Lessee’s obligation to pay Lease Charges associated with the applicable Equipment shall cease. Lessor may requestAgreement Rev. 08-04-2017 Page 6 so paid for, and Lessee shall completebecome entitled to title thereto, an affidavit(s) AS IS, WHERE IS, and without any warranty whatsoever, express or implied. Proceeds of insurance shall be paid to Lessor with respect to such repairable damage to the Equipment and shall, at the election of Lessor, be applied either to the repair of the Equipment by payment by Lessor directly to the party completing the repairs, or to the reimbursement of Lessee for the cost of such repairs; provided, however, that swears out Lessor shall have no obligation to make such payment or any part thereof until receipt of such evidence as Lessor shall deem satisfactory that such repairs have been completed and further provided that Lessor may apply such proceeds to the facts supporting the Loss payment of any item rent or other sum due or to become due hereunder if at the time such proceeds are received by Lessor there shall have occurred any Event of EquipmentDefault or any event which with lapse of time or notice, or both, would become and Event of Default.

Loss and Damage. Lessee shall assume and bear the risk of loss, theft and damage (including any governmental requisition, condemnation or confiscation) to the Equipment and all component parts thereof from any and every cause whatsoever, whether or not covered by insurance. No loss or damage to the Equipment or any component part thereof shall impair any obligation of Lessee under this Lease Agreement, which shall continue in full force and effect except as hereinafter expressly provided. Lessee shall repair or cause to be repaired all damage to the Equipment. In the event that all or part of the Equipment shall, as a result of any cause whatsoever, become lost, stolen, destroyed destroyed, depleted or otherwise rendered irreparably unusable, damaged or consumed, which shall include Equipment that would be rendered unusable or damaged by the act of deinstalling for return to Lessor (e.g. leasehold improvements of real estate etc.) (collectively, the “"Loss”") then Lessee shall, within ten (10) days after the LossLoss has been determined, fully inform Lessor in writing of such a Loss and shall pay to Lessor the following amounts: (i) the Monthly Lease Charges (and other amounts) then currently due and owing under this Lease Agreement, plus (ii) one-hundred (100%) percent of the original cost of the Equipment subject to the Loss if the loss occurs in either the installation period or during the first nine months of the Initial Term, and, thereafter, the original cost of the Equipment amortized by the subsequent Monthly Lease Charges received by Lessor during the Initial Term using an amortization rate of eight hundred and ninety (890) basis points over the interest rate of the three (3) year United States Treasury Note as reported by the Federal Reserve on the Commencement Date (collectively, the sum of (i) plus (iiH) shall be the “"Casualty Loss Value”"). If the Loss occurs after the Initial Term, (ii) above shall be the remaining unamortized balance as of the end of the Initial Term without thither amortization (the "Terminal Casualty Loss Value"). Notwithstanding the proceedingforegoing, if Lessee has provided notice to terminate the applicable Lease Schedule prior to informing Lessor in writing of a Loss and such Loss is not covered by insurance proceeds pursuant to Section 13 hereof, then Lessee shall pay two (2) times the Casualty Loss Value on the Equipment subject to such Loss. Upon receipt by Lessor of the Casualty Loss Value: (i) the applicable Equipment shall be removed from the Lease Schedule; and (ii) Lessee’s 's obligation to pay Lease Charges associated with the applicable Equipment shall cease. Lessor may request, and Lessee shall complete, an affidavit(s) that swears out the facts supporting the Loss of any item of Equipment.

Loss and Damage. (a) The Lessee shall assume and bear the risk of loss, theft loss and damage (including any governmental requisition, condemnation or confiscation) to the Equipment and all component parts thereof from any and every cause whatsoever, whatsoever whether or not covered by insurance. No loss or damage to the Equipment or any component part thereof shall impair any obligation obligations of the Lessee under this Lease Agreement, which shall continue in full force and effect except as hereinafter expressly provided. The Lessee shall repair or cause to be repaired all damage to the Equipment. . (b) In the event that all or part of the Equipment shall, as a result of any cause whatsoevercause, other than an act or omission of the Lessor, become lost, stolen, destroyed or otherwise rendered irreparably unusable or damaged (collectivelydamaged, as determined by the “Loss”) Lessee, then the Lessee shall, within ten (10) days after the Lossit shall have made such determination, fully inform the Lessor in writing of such a Loss loss or damage and shall pay to the Lessor the following amounts: (i) then casualty value of the Monthly Lease Charges (equipment, together with all Rent and any other amounts) sums past due or becoming due to and owing under including the date of such payment. Upon payment of said amounts this Lease Agreement, plus shall terminate. (iic) one-hundred (100%) percent If the Vessels or the Equipment is taken by requisition or governmental action as a result of the original cost Lessee's operation of the Vessels or by virtue of any actions arising by, through or under the Lessee or its agents or contractors, the Lessee shall be responsible for obtaining the release of the Equipment, and Rent shall continue until the Lessor receives any insurance proceeds for such requisition. (d) NOTWITHSTANDING ANY PROVISIONS TO THE CONTRARY CONTAINED IN THIS SECTION 7 OR ELSEWHERE IN THIS LEASE, IF THERE IS ANY PARTIAL OR TOTAL OR CONSTRUCTIVE OR COMPROMISED TOTAL LOSS OF ANY OF THE VESSELS OR THE EQUIPMENT DURING THE PERIOD OF THIS LEASE, THE LESSEE HEREBY AGREES TO INDEMNIFY AND HOLD HARMLESS THE LESSOR FOR AND AGAINST ANY INSURANCE DEDUCTIBLES AND UNINSURED LOSSES INCURRED BY THE LESSEE. ALL SUCH INSURANCE SHORTFALLS SHALL BE PAID BY LESSEE TO LESSOR ON DEMAND. (e) If, at the time of scheduled redelivery of the Equipment subject to the Loss if the loss occurs in the first nine months of the Initial Term, and, thereafterunder this Lease, the original cost Equipment is damaged or otherwise in need of repair or other work to restore it to pre-hire condition as set forth herein the Lessee shall continue to pay Rent during such repairs and other work and the Equipment amortized by the subsequent Monthly Lease Charges received by Lessor during the Initial Term using an amortization rate of eight hundred and ninety (890) basis points over the interest rate of the three (3) year United States Treasury Note as reported by the Federal Reserve on the Commencement Date (collectively, the sum of (i) plus (ii) shall not be the “Casualty Loss Value”). Notwithstanding the proceeding, if Lessee considered redelivered until it has provided notice been restored to terminate the applicable Lease Schedule prior to informing Lessor in writing of a Loss and such Loss is not covered by insurance proceeds pursuant to Section 13 hereof, then Lessee shall pay two (2) times the Casualty Loss Value on the Equipment subject to such Loss. Upon receipt by Lessor of the Casualty Loss Value: (i) the applicable Equipment shall be removed from the Lease Schedule; and (ii) Lessee’s obligation to pay Lease Charges associated with the applicable Equipment shall cease. Lessor may request, and Lessee shall complete, an affidavit(s) that swears out the facts supporting the Loss of any item of Equipmentsaid pre-hire condition.

Loss and Damage. (a) Lessee shall assume and bear assumes the risk of loss, theft direct and consequential loss and damage (including any governmental requisition, condemnation or confiscation) to the Equipment and from all component parts thereof from any and every cause whatsoevercauses. Except as provided in this Section 11 for discharge upon payment of Stipulated Loss Value, whether or not covered by insurance. No no loss or damage to the Equipment or any component part thereof shall release or impair any obligation obligations of Lessee under this Lease AgreementLease. Without limiting Sections 5, which 7, 8, 13 or any other provision hereof, Lessee agrees that Lessor shall continue not incur any liability to Lessee for any loss of business, loss of profits, expenses, or any other Claims resulting to Lessee by reason of any failure of or delay in full force and effect except as hereinafter expressly provided. Lessee delivery or any delay caused by any non-performance, defective performance, or breakdown of the Equipment, nor shall repair Lessor at any time be responsible for personal injury or cause to be repaired all damage to the loss or destruction of any other property resulting from the Equipment. In the event that all of loss or part damage to any item of the Equipment shallwhich does not constitute a Total Loss, as a result of any cause whatsoever, become lost, stolen, destroyed or otherwise rendered irreparably unusable or damaged (collectively, the “Loss”) then Lessee shall, within ten (10) days after at its sole cost and expense, promptly repair and restore such item of Equipment to the Losscondition required by this Lease. Provided that no Default or default has occurred and is then continuing, fully inform upon receipt of evidence reasonably satisfactory to Lessor in writing of completion of such repairs, Lessor will apply any net insurance proceeds received by Lessor on account of such loss to the cost of repairs. Upon the occurrence of a Total Loss and during the Term of this Lease, Lessee shall give prompt notice thereof to Lessor. On the next date for the payment of Basic Rent, Lessee shall pay to Lessor the following amounts: (i) Rent due on that date plus the Monthly Lease Charges (and other amounts) due and owing under this Lease Agreement, plus (ii) one-hundred (100%) percent Stipulated Loss Value of the original cost item or items of the Equipment with respect to which the Total Loss has occurred and any other sums due hereunder with respect to that Equipment (less any net insurance proceeds or net condemnation award actually paid to Lessor to compensate it for such Total Loss). Upon Lessor's receipt of such payment in good collected indefeasible funds with respect to an Equipment Schedule, such Equipment Schedule and the obligation to make future payments of Basic Rent thereunder shall terminate solely with respect to the Equipment or items thereof so paid for and (unless any insurer shall otherwise demand) Lessor shall be deemed to have conveyed all of its right, title and interest therein to Lessee "AS IS, WHERE IS" and otherwise subject to Section 7 hereof. Stipulated Loss Value shall be determined as of the next date on which a payment of Basic Rent is or would be due after a Total Loss if or other termination of the loss occurs subject Equipment Schedule, after payment of any Basic Rent due on such date, and the applicable percentage factor shall be that which is set forth on the SLV Schedule with respect to such Basic Rent payment. (b) Notwithstanding the foregoing or any other provision hereof to the contrary, in the first nine months event any item(s) of Equipment suffers a Total Loss and the insurance carrier providing coverage obtained by Lessee against such Total Loss, has as a result of such Total Loss, agreed in writing to pay to Lessor as the sole loss payee proceeds of such coverage in an amount equal to the Stipulated Loss Value (determined as of the Initial TermBasic Rent payment date next preceding such Total Loss, andbut otherwise in accordance with the preceding clause(b)), thereafter, the original cost of the Equipment amortized by the subsequent Monthly Lease Charges received by Lessor during the Initial Term using an amortization rate of eight hundred and ninety (890) basis points over the interest rate of the three (3) year United States Treasury Note as reported by the Federal Reserve on the Commencement Date (collectively, the sum of (i) plus (ii) shall be the “Casualty Loss Value”). Notwithstanding the proceeding, if Lessee has provided notice to terminate the applicable Lease Schedule prior to informing Lessor in writing of a Loss and such Loss is not covered by insurance proceeds pursuant to Section 13 hereof, then Lessee shall pay two (2) times the Casualty Loss Value on the Equipment subject to such Loss. Upon receipt by Lessor of the Casualty Loss Value: (i) the applicable Equipment shall be removed from the Lease Schedule; and (ii) Lessee’s 's obligation to pay Lease Charges associated with future installments of Basic Rent for such item(s) of Equipment suffering a Total Loss shall cease as of the applicable Equipment shall cease. Lessor may requestBasic Rent payment date preceding the Total Loss thereof, and Lessee shall completethereupon be relieved of its obligation to pay the Stipulated Loss Value thereof; provided, that (i) Lessee has given prompt written notice of such Total Loss to Lessor and the appropriate insurer(s) (which notice shall include Lessee's written election that it intends that this clause(b) shall apply to such Total Loss); (ii) no default or Default occurs prior to Lessor's receipt of all amounts due from Lessee and such insurer pursuant hereto in good collected indefeasible funds; (iii) such insurer neither (A) repudiates its obligation to the amount required above or fails to pay such amount to Lessor in good collected indefeasible funds within 90 days after the date of the Total Loss, nor (B) suffers an affidavit(sevent of the type described in Section 14(a)(iv); and (iv) Lessee takes all actions as shall be requested by Lessor with respect to the insurance coverage, or otherwise necessary to facilitate the payment of the insurance proceeds required above. Upon the failure of any of the conditions set forth in the proviso in the preceding sentence, Lessee shall immediately be liable to and pay to Lessor the full amounts that swears out would otherwise have been due pursuant to paragraph (a) of this Section 11. To the facts supporting extent Lessee's obligation to pay the Stipulated Loss Value of any item of EquipmentEquipment is satisfied by Lessor's receipt of insurance proceeds as provided above, and not by funds in such amount paid by Lessee in the manner required herein, Lessor shall have no obligation to convey such item of Equipment to Lessee.

Loss and Damage. Lessee shall assume and bear the risk of loss, theft and damage (including any governmental requisition, condemnation or confiscation) to the Equipment and all component parts thereof from any and every cause whatsoever, whether or not covered by insurance. No loss or damage to the Equipment or any component part thereof shall impair any obligation of Lessee under this Lease Agreement, which shall continue in full force and effect except as hereinafter expressly provided. Lessee shall repair or cause to be repaired all damage to the Equipment. In the event that all or part of the Equipment shall, as a result of any cause whatsoever, become lost, stolen, destroyed or otherwise rendered irreparably unusable or damaged (collectively, the “Loss”) then Lessee shall, within ten (10) days after the Loss, fully inform Lessor in writing of such a Loss and shall pay to Lessor the following amounts: (i) the Monthly Lease Charges (and other amounts) due and owing under this Lease AgreementAgreement at the time of the Loss, plus (ii) one-hundred (100%) the applicable percent of the original cost of the Equipment subject to the Loss if the loss occurs in the first nine months (or Event of the Initial TermDefault, and, thereafter, the original cost of the Equipment amortized by the subsequent Monthly Lease Charges received by Lessor during the Initial Term using an amortization rate of eight hundred and ninety (890as defined hereinafter) basis points over the interest rate of the three (3) year United States Treasury Note as reported by the Federal Reserve shown on the Commencement Date casualty loss table part of a particular Lease Schedule (collectively, the sum of (i) plus (ii) shall be the “Casualty Loss Value”). Notwithstanding the proceeding, if Lessee has provided notice to terminate the applicable Lease Schedule prior to informing Lessor in writing of a Loss and such Loss is not covered by insurance proceeds pursuant to Section 13 hereof, then Lessee shall pay two (2) times the Casualty Loss Value on the Equipment subject to such Loss. Upon receipt by Lessor of the Casualty Loss Value: (i) the applicable Equipment shall be removed from the Lease Schedule; Schedule and (ii) Lessee’s obligation to pay Lease Charges associated with the applicable Equipment shall cease. Lessor may request, and Lessee shall complete, an affidavit(s) that which swears out the facts supporting the Loss of any item of Equipment.

Loss and Damage. Lessee shall assume and at all times after signing this Lease bear the entire risk of loss. theft, theft and damage (including any governmental requisition, condemnation or confiscation) to destruction of the Equipment and all component parts thereof equipment from any and every cause whatsoever, whether and no loss, theft, damage or not covered by insurance. No loss destruction of the equipment shall relieve Lessee of the obligation to pay rent or damage to comply with any of the Equipment or any component part thereof shall impair any obligation of Lessee other obligations under this Lease Agreement, which shall continue in full force and effect except as hereinafter expressly provided. Lessee shall repair or cause to be repaired all damage to the EquipmentLease. In the event that all or of damage to any part of the Equipment shallequipment, as a result Lessee shall immediately place the same in good repair at Lessee’s expense. If Lessor determines that any part of any cause whatsoever, become the equipment is lost, stolen, confiscated, destroyed or otherwise rendered irreparably unusable or damaged (collectivelybeyond repair, Lessee shall at lessee’s option, do one of the “Loss”) then Lessee shall, following within ten (10) 10 days after Lessor’s notification: (a) Replace the Loss, fully inform same with like equipment in good repair acceptable to Lessor; or (b) Pay Lessor in writing of such a Loss and shall pay to Lessor cash the following amountsfollowing: (i) the Monthly Lease Charges (and other amounts) all amounts due and owing by Lessee to Lessor under this Lease Agreement, plus accrued and unpaid as of the earlier of the date of final payment of all amounts due herein or the date of entry of judgment in favor of Lessor; (ii) one-hundred the accelerated balance of the total amounts due for the remaining term of this Lease attributable to said item, discounted to present value at a discount rate of nine percent (1009%) percent as of the original cost earlier of the Equipment subject to date of final payment of all amounts due herein or the Loss if the loss occurs date of entry of judgment in the first nine months favor of the Initial Term, and, thereafter, the original cost of the Equipment amortized by the subsequent Monthly Lease Charges received by Lessor during the Initial Term using an amortization rate of eight hundred and ninety (890) basis points over the interest rate of the three (3) year United States Treasury Note as reported by the Federal Reserve on the Commencement Date (collectively, the sum of (i) plus (ii) shall be the “Casualty Loss Value”). Notwithstanding the proceeding, if Lessee has provided notice to terminate the applicable Lease Schedule prior to informing Lessor in writing of a Loss and such Loss is not covered by insurance proceeds pursuant to Section 13 hereof, then Lessee shall pay two (2) times the Casualty Loss Value on the Equipment subject to such Loss. Upon receipt by Lessor of the Casualty Loss Value: (i) the applicable Equipment shall be removed from the Lease ScheduleXxxxxx; and (iiiii) Lesseethe Lessor’s obligation estimate as of the time this Lease was entered into of Lessor’s residual interest in the equipment discounted to pay Lease Charges associated with present value at a discount to the applicable Equipment shall ceasepresent value at a discount rate of nine percent (9%) as of the earlier of the date of final payment of all amounts due herein or the date of entry of judgment in favor of Xxxxxx. Upon Lessor may requestreceipt of payment as set forth above, and Lessee shall completebe entitled to title to the equipment without any warranties. If insurance proceeds are used to fully comply with this paragraph, an affidavit(s) that swears out the facts supporting the Loss balance of any item such proceeds shall go to the Lessee to compensate for loss of Equipmentuse of the equipment for the remaining term of this Lease.

Loss and Damage. Lessee shall assume and bear the assumes all risk of loss, theft (and damage (including any governmental requisition, condemnation or confiscation) to the Equipment and all component parts thereof from any and every cause whatsoever, whether or not covered by insurance. No loss or damage to the Equipment or any component part thereof shall impair any obligation of Lessee under this Lease Agreement, which shall continue in full force and effect except as hereinafter expressly provided. Lessee shall repair or cause to be repaired all damage to the Equipment. In the event that all or part of the Equipment shall, as a result of any cause whatsoever, become lost, stolen, destroyed or otherwise rendered irreparably unusable or damaged (collectively, the “Loss”) then Lessee shall, within ten (10) days after the Loss, fully inform promptly notify Lessor in writing of any occurrence of) any damage to or loss, theft, confiscation or destruction of any Equipment from any cause whatsoever (a “Casualty”) from the date shipped or otherwise made available to Lessee and continuing until it is returned to and accepted by Lessor in the condition required by the Lease, including Section 8 of this Agreement. If any Equipment suffers a Casualty which Lessor and Lessee reasonably determine is reparable, Lessee shall at its expense promptly place the same in good repair, condition or working order. If any Equipment suffers a Casualty which Lessor and Lessee reasonably determine is beyond repair or materially impairs its residual value (a “Total Loss”), Lessee shall at Lessor’s option either (a) promptly replace such Equipment with a Loss and shall pay similar item reasonably acceptable to Lessor having an equivalent value, utility and remaining useful life of such Equipment, whereupon such replacement items shall constitute Equipment for all purposes the Lease, or (b) on the Rent payment date following amounts: such Casualty (or, if none, within 30 days) pay Lessor the Stipulated Loss Value for such Equipment, together with all Rent scheduled for payment on such date, and all accrued interest, late charges and other amounts then due and owing under the Lease. Upon such payment following a Total Loss, the Lease with respect to the Equipment suffering a Total Loss shall terminate, and Lessor shall transfer all of its right, title and interest in such Equipment, free from all liens and encumbrances created by Lessor, but otherwise on an “AS-IS, WHERE-IS,” quitclaim basis. If less than all Equipment under a Schedule suffers a Total Loss, (i) the Monthly Lease Charges (and other amounts) due and owing under this Lease Agreement, plus (ii) one-hundred (100%) percent of the original cost of the Equipment subject to the Loss if the loss occurs in the first nine months of the Initial Term, and, thereafter, the original cost of the Equipment amortized by the subsequent Monthly Lease Charges received by Lessor during the Initial Term using an amortization rate of eight hundred and ninety (890) basis points over the interest rate of the three (3) year United States Treasury Note as reported by the Federal Reserve on the Commencement Date (collectively, the sum of (i) plus (ii) shall be the “Casualty Loss Value”). Notwithstanding the proceeding, if Lessee has provided notice to terminate the applicable Lease Schedule prior to informing Lessor in writing of a Loss and such Loss is not covered by insurance proceeds pursuant to Section 13 hereof, then Lessee shall pay two (2) times the Casualty Stipulated Loss Value on the Equipment subject with respect to any such Loss. Upon receipt by Lessor item of the Casualty Loss Value: (i) the applicable Equipment shall be removed from calculated by reference to the Lease allocable portion of “Lessor’s Cost” provided in the applicable Schedule; , Rent or other amount related to such item, as reasonably determined by Lessor, and (ii) Lesseethe remaining Rent under the Schedule shall be proportionately reduced as reasonably calculated by Lessor upon Lessor’s obligation to pay Lease Charges associated with receipt of the applicable Equipment shall cease. Lessor may request, and Lessee shall complete, an affidavit(s) that swears out the facts supporting the Loss of any item of Equipmentpayments described above.

Loss and Damage. Lessee shall assume and bear the risk of loss, theft and damage (including any governmental government requisition, condemnation or confiscation) to the Equipment and all component parts thereof hereof from any and every cause whatsoever, whether or not covered by insurance. No loss or damage to the Equipment or any component part thereof shall impair any obligation of Lessee under this Lease Agreement, which shall continue in full force and effect except as hereinafter expressly provided. Lessee shall repair or cause to be repaired all damage to the Equipment. In the event that all or part of the Equipment shall, as a result of any cause whatsoever, become lost, stolen, destroyed or otherwise rendered irreparably unusable or damaged (collectively, the “"Loss”") then Lessee shall, within ten (10) days after the Loss, fully inform Lessor in writing of such a Loss and shall pay to Lessor the following amounts: (i) the Monthly Lease Charges (and other amounts) due and owing under this Lease AgreementAgreement at the time of the Loss (or Event of Default, as defined hereinafter), plus (ii) one-hundred (100%) percent of the original cost of the Equipment subject to the Loss if the loss occurs in the first nine months (or Event of the Initial TermDefault, and, thereafter, the original cost of the Equipment amortized as defined hereinafter) multiplied by the subsequent Monthly Lease Charges “Percent of Original Cost.” The Original Cost of a particular item of Equipment shall be Lessee’s original purchase price of such item at the time of its purchase or payment to the applicable vendor by Lessor, plus additional or related charges such as taxes, delivery and freight, installation, maintenance, etc. The Percent of Original Cost shall be the Per Payment Factor multiplied by the number of lease payments Lessor has received by Lessor from Lessee during the Initial Term using an amortization rate subtracted from 112 and then divided by 100. The Per Payment Factor is the sum of eight hundred and ninety (890) basis points over the interest rate of the three (3) year United States Treasury Note as reported 112 multiplied by 0.7 divided by the Federal Reserve on number of Monthly Lease Charges that are due during the Commencement Date Initial Term (collectively, the sum of (i) plus (ii) shall be the “Casualty Loss Value”). Notwithstanding the proceeding, if Lessee has provided notice to terminate the applicable Lease Schedule prior to informing Lessor in writing of a Loss and such Loss is not covered by insurance proceeds pursuant to Section 13 hereof, then Lessee shall pay two (2) times the Casualty Loss Value on the Equipment subject to such Loss. Upon receipt by Lessor of the Casualty Loss Value: (i) the applicable Equipment shall be removed from the Lease Schedule; and (ii) Lessee’s obligation to pay Lease Charges associated with the applicable Equipment shall cease. Lessor may request, and Lessee Xxxxxx shall complete, an affidavit(s) that ), which swears out the facts supporting the Loss of any item of Equipment.

Loss and Damage. Lessee shall assume and bear hereby assumes the entire risk of loss, theft and damage (including any governmental requisition, condemnation to or confiscation) to loss of the Equipment and all component parts or any item thereof from any and every cause whatsoever, whether or not covered by insurance. No loss or damage insured against, from and after the date the Equipment is delivered to the Equipment Location until returned to Lessor. No loss, theft, damage or any component part thereof destruction of the Equipment shall impair alter or relieve Lessee of any obligation of Lessee under this Lease AgreementLease, which shall continue in full force and effect except as hereinafter expressly providedeffect. Lessee shall repair or cause agrees to be repaired all give Lessor prompt notice of any damage to or loss of the Equipment. In the event that all or of damage to any part of the Equipment, Lessee shall immediately place the same in good repair at Lessee’s expense. In the event of damage to or loss of the Equipment shallor any item thereof, as a result and irrespective of payment from any cause whatsoeverinsurance coverage maintained by the Lessee, become lostbut applying full credit therefor, stolen, destroyed or otherwise rendered irreparably unusable or damaged (collectively, the “Loss”) then Lessee shall, within ten at the option of Lessor, (10a) days after place the LossEquipment in good repair, fully inform condition and working order or (b) replace the Equipment with identical equipment in good repair, condition and working order and transfer clear title to such replacement equipment to Lessor, whereupon such replacement equipment shall be deemed the Equipment for all purposes hereof, or (c) pay Lessor in writing of such a Loss and shall pay to Lessor cash the following amountsfollowing: (i) the Monthly Lease Charges (and other amounts) all amounts due and owing under by Lessee to Lessor with respect to this Lease Agreement, up to the date of the loss; plus (ii) one-hundred the total amounts due for the remaining term of this Lease attributable to said items; plus (100%iii) percent Lessor’s estimate of the original cost of Lessor’s residual interest in the Equipment subject to the Loss if the loss occurs in the first nine months as of the Initial Term, and, thereafter, the original cost of the Equipment amortized by the subsequent Monthly Lease Charges received by Lessor during the Initial Term using an amortization rate of eight hundred and ninety (890) basis points over the interest rate of the three (3) year United States Treasury Note as reported by the Federal Reserve on the Commencement Date (collectively, the sum of (i) plus (ii) shall be the “Casualty Loss Residual Value”), which will be determined at Lessor’s sole discretion. Notwithstanding the proceedingUpon Lessor’s receipt of such payment, if Lessee has provided notice to this Lease shall terminate the applicable Lease Schedule prior to informing Lessor in writing of a Loss and such Loss is not covered by insurance proceeds pursuant to Section 13 hereof, then Lessee shall pay two (2) times the Casualty Loss Value on the Equipment subject only with respect to such LossEquipment Master Lease AgreementRev. Upon receipt by Lessor of the Casualty Loss Value: (i) the applicable Equipment shall be removed from the Lease Schedule; and (ii) Lessee’s obligation to pay Lease Charges associated with the applicable Equipment shall cease. Lessor may request08-04-2017Page 6 so paid for, and Lessee shall completebecome entitled to title thereto, an affidavit(s) AS IS, WHERE IS, and without any warranty whatsoever, express or implied. Proceeds of insurance shall be paid to Lessor with respect to such repairable damage to the Equipment and shall, at the election of Lessor, be applied either to the repair of the Equipment by payment by Lessor directly to the party completing the repairs, or to the reimbursement of Lessee for the cost of such repairs; provided, however, that swears out Lessor shall have no obligation to make such payment or any part thereof until receipt of such evidence as Lessor shall deem satisfactory that such repairs have been completed and further provided that Lessor may apply such proceeds to the facts supporting the Loss payment of any item rent or other sum due or to become due hereunder if at the time such proceeds are received by Lessor there shall have occurred any Event of EquipmentDefault or any event which with lapse of time or notice, or both, would become and Event of Default.

Loss and Damage. Lessee hereby assumes and shall assume and bear the entire risk of loss, damage, theft and damage (including any governmental requisitionor destruction, condemnation partial or confiscation) to complete, whether or not insured against, of the Equipment and all component parts thereof from any and every cause whatsoever, whether or not covered by insurancewhatsoever from the date of delivery of the Equipment to Lessee. No loss loss, damage, theft or damage to destruction of the Equipment or any component part thereof shall impair relieve Lessee of any obligation of Lessee under this Lease AgreementLease, which shall continue in full force and effect except as hereinafter expressly provided. Lessee shall repair or cause to be repaired all damage to the Equipmenteffect. In the event that all or part an item of the Equipment shallshall become subject to Total Loss, as a result of any cause whatsoever, become lost, stolen, destroyed or otherwise rendered irreparably unusable or damaged (collectively, the “Loss”) then Lessee shall, shall inform Lessor in writing in regard thereto within ten (10) days after the Loss, fully inform Lessor in writing of such a Total Loss and Lessee shall pay to Lessor the following amounts: (i) the Monthly Lease Charges (and other amounts) due and owing under this Lease AgreementLessor, plus (ii) one-hundred (100%) percent of the original cost of the Equipment subject in cash, an amount equal to the then Stipulated Loss if Value thereof no later than the loss occurs in the first nine months of the Initial Term, and, thereafter, the original cost of the Equipment amortized by the subsequent Monthly Lease Charges received by Lessor during the Initial Term using an amortization rate of eight hundred and ninety (890) basis points over the interest rate of the three (3) year United States Treasury Note as reported by the Federal Reserve on the Commencement Date (collectively, the sum earlier of (i) plus five (5) days after Lessee receives payment for the Total Loss or (ii) within thirty days (30) after Lessee informs Lessor of such Total Loss; PROVIDED, HOWEVER, that such amount shall be reduced if and to the “Casualty Loss Value”). Notwithstanding extent that Lessor or any Transferee has received proceeds from the proceeding, if insurance required to be maintained by Lessee has provided notice to terminate the applicable Lease Schedule prior to informing Lessor in writing of a Loss and such Loss is not covered by insurance proceeds pursuant to Section 13 hereof12 hereof as a result of such Total Loss, then and Lessor agrees that if such insurance proceeds are paid to Lessor after Lessee shall pay two (2) times has paid the Casualty Stipulated Loss Value on in full, Lessor shall within ten (10) days thereafter reimburse to Lessee the Equipment subject proceeds thereof, such reimbursement not to exceed the Stipulated Loss Value amount paid by Lessee related to such Total Loss. Upon receipt by Lessor Where a single amount for the payment of the Casualty Loss Value: (i) the Basic Rent is set forth on an applicable Equipment shall be removed from the Lease Schedule; and (ii) Lessee’s obligation to pay Lease Charges associated with the applicable Equipment shall cease. Lessor may request, and Lessee shall complete, an affidavit(s) that swears out the facts supporting the Loss of any Rental Schedule for more than one item of Equipment, and less than all such items are subject to a Total Loss, such Basic Rent due thereafter shall be apportioned among such items in accordance with their portion of the Total Equipment Cost on such Rental Schedule, and the Stipulated Loss Value payable shall be equal on a percentage basis to such apportioned Basic Rent. Upon such payment of the Stipulated Loss Value for any item(s) leased hereunder, this Lease shall terminate with respect to such item(s) and Basic Rent shall thereafter xxxxx proportionately.

Loss and Damage. 17.1 Throughout the Lease Period the Lessee shall assume and bear the full risk of any loss, theft and damage (including any governmental requisitiondestruction, condemnation hi-jacking, theft, condemnation, confiscation, seizure or confiscation) to the Equipment and all component parts thereof from any and every cause whatsoever, whether or not covered by insurance. No loss requisition of or damage to the Equipment Aircraft and of any other occurrence of whatever kind which shall deprive the Lessee or the operator of the Aircraft for the time being of the use, possession or enjoyment thereof. (a) The Lessee shall give the Lessor immediate (and, in any event, within seven (7) days after such occurrence) notice in writing of any such occurrence as is referred to in clause 17.1 (other than repairable damage the likely cost of rectification of which will not exceed in aggregate Two million Dollars ($2,000,000), or in relation to any Engine One million Dollars ($1,000,000)) or any component part other occurrence of whatever kind which shall deprive the Lessee or the operator of the Aircraft for the time being of the use, possession or enjoyment thereof. (b) The Lessee shall supply to the Lessor all necessary information, documentation and assistance which may reasonably be required by the Lessor in connection with making any claim under the Insurances. (a) If the Aircraft shall become a Total Loss during the Lease Period, the Lessee shall pay, or procure that the insurers pay, to the Lessor being loss payee under the Insurances on the date insurance proceeds are paid in full but in any case within ninety (90) days (or such longer period as may be agreed) of the date on which the Total Loss occurred, the Agreed Value as at the date of payment thereof together with all amounts of Rent and any other amounts then due and payable under the Lessee Documents. If the Lessor receives any monies paid pursuant to the Insurances in excess of the Agreed Value it shall impair immediately pay such excess to the Lessee. (b) For the purposes of this Agreement a Total Loss shall be deemed to have occurred: (i) in the case of an actual total loss, at noon (London time) on the actual date the Aircraft was lost or, if such date is not known, noon (London time) on the day on which the Aircraft was last heard of; (ii) in the case of any obligation of Lessee the events described in sub-paragraph (a) of the definition of Total Loss (other than an actual total loss), upon the date that notice claiming the loss of the Aircraft is given to the relevant insurers, unless the insurers do not forthwith admit such claim, when such Total Loss shall be deemed to have occurred at the date and time at which either a total loss is subsequently admitted by the insurers or a competent court or arbitration tribunal issues a judgment to the effect that a total loss has occurred; (iii) in the case of any of the events described in sub-paragraph (b) of the definition of Total Loss, upon the date of occurrence of such destruction, damage or cessation; (iv) in the case of Compulsory Acquisition, upon the date upon which the relevant requisition of title or other compulsory acquisition, requisition, appropriation, expropriation, deprivation or confiscation occurs; and (v) in the case of any of the events described in sub-paragraph (d) of the definition of Total Loss, upon the expiry of the period of ninety (90) days referred to in such sub-paragraph (d) after the date upon which the relevant hijacking, theft, condemnation, confiscation, capture, detention, seizure or requisition for use or hire occurred. 17.4 SAS BV shall continue to pay Rent on the days and in the amounts required under this Agreement notwithstanding any Total Loss Provided Always that no further instalments of Rent shall become due after the date on which all sums due under clause 17.3(a) shall have been paid in full, and on such date the Lease AgreementPeriod shall terminate and the Lessor shall assign to the Lessee or its nominee all claims against third parties relating to the Aircraft arising from the Total Loss. 17.5 In the event of repairable damage to the Aircraft or any of the Engines, or an Engine Loss all insurance moneys which may be payable by the insurers of the Aircraft shall continue be paid to the Lessee who shall be obliged to ensure that such damage shall (if it has not already) be made good or repaired or put in full force and effect except as hereinafter expressly provided. hand for repair or, in the case of an Engine Loss, the Lessee shall repair utilise the relevant insurance moneys in payment of the purchase price of a replacement Engine Provided always that if a Relevant Event has occurred and is continuing, the Lessor shall be entitled, as loss payee under the Insurances, to receive any insurance moneys and such insurance moneys may be applied in or towards settlement of any amounts owing by the Lessee or SAS BV to the Lessor under any Lessee Document. 17.6 In the event of repairable damage to the Aircraft or any of the Engines, or an Engine Loss, and if the insurance moneys paid in respect thereof are insufficient to pay the cost or estimated cost of making good or repairing such damage or the cost of purchasing a replacement Engine, the Lessee will pay the deficiency. 17.7 Replacement Engine(s) Upon the occurrence of an Engine Loss under circumstances in which there has not also occurred a Total Loss, the Lessee shall give the Lessor written notice promptly after becoming aware thereof and shall, within sixty (60) days after the occurrence of such Engine Loss, convey or cause to be repaired all damage conveyed to the EquipmentLessor, as replacement for such Engine, title, free and clear of all Encumbrances other than Permitted Liens, to a Replacement Engine. In Prior to or at the event time of any such conveyance, the Lessee will (a) furnish the Lessor with a bill of sale with respect to such Replacement Engine and (b) take such other actions and furnish such other certificates and documents as the Lessor may reasonably require in order to ensure that the Replacement Engine is duly and properly conveyed to the Lessor and leased to the Lessee to the same extent as the Engine replaced thereby and leased hereunder. For all or purposes hereof such engine shall, after such transfer, be deemed part of the Equipment shall, property leased hereunder and shall be deemed an "Engine" as a result defined herein. Upon full compliance by the Lessee with the terms of any cause whatsoever, become lost, stolen, destroyed or otherwise rendered irreparably unusable or damaged (collectivelythis clause 17.7, the “Loss”) then Lessee shall, within ten (10) days after the Loss, fully inform Lessor in writing of such a Loss and shall pay to Lessor the following amounts: (i) the Monthly Lease Charges (and other amounts) due and owing under this Lease Agreement, plus (ii) one-hundred (100%) percent lease hereunder of the original cost replaced Engine with respect to which such Engine Loss occurred shall cease and title to such Engine shall thereupon vest in the Lessee or the Lessee's nominee free and clear of all rights of the Equipment subject Lessor and any Lessor's Liens. No Engine Loss with respect to the Loss if the loss occurs any Engine which is replaced in the first nine months of the Initial Term, and, thereafter, the original cost of the Equipment amortized by the subsequent Monthly Lease Charges received by Lessor during the Initial Term using an amortization rate of eight hundred and ninety (890) basis points over the interest rate of the three (3) year United States Treasury Note as reported by the Federal Reserve on the Commencement Date (collectively, the sum of (i) plus (ii) shall be the “Casualty Loss Value”). Notwithstanding the proceeding, if Lessee has provided notice to terminate the applicable Lease Schedule prior to informing Lessor in writing of a Loss and such Loss is not covered by insurance proceeds pursuant to Section 13 hereof, then Lessee shall pay two (2) times the Casualty Loss Value on the Equipment subject to such Loss. Upon receipt by Lessor of the Casualty Loss Value: (i) the applicable Equipment shall be removed from the Lease Schedule; and (ii) Lessee’s obligation to pay Lease Charges associated accordance with the applicable Equipment provisions of this clause 17.7 shall cease. Lessor may request, and Lessee shall complete, an affidavit(s) that swears out result in any increase or decrease of Rent or the facts supporting the Loss of any item of EquipmentAgreed Value.

Loss and Damage. Lessee shall assume and bear the risk of loss, theft and damage (including any governmental government requisition, condemnation or confiscation) to the Equipment and all component parts thereof hereof from any and every cause whatsoever, whether or not covered by insurance. No loss or damage to the Equipment or any component part thereof shall impair any obligation of Lessee under this Lease Agreement, which shall continue in full force and effect except as hereinafter expressly provided. Lessee shall repair or cause to be repaired all damage to the Equipment. In the event that all or part of the Equipment shall, as a result of any cause whatsoever, become lost, stolen, destroyed or otherwise rendered irreparably unusable or damaged (collectively, the “Loss”) then Lessee shall, within ten five (105) days after the Loss, fully inform Lessor in writing of such a Loss regard thereto and shall pay to Lessor the following amounts: (i) the Monthly Lease Charges (and other amounts) due and owing under this Lease AgreementAgreement at the time of the Loss, plus (ii) one-hundred twelve (100112%) percent of the original cost of the Equipment subject to the Loss if the loss occurs in the first nine months of the Initial Term, and, thereafter, the original cost of the Equipment amortized by the subsequent Monthly Lease Charges received by Lessor during the Initial Term using an amortization rate of eight hundred and ninety (890) 350 basis points over the interest rate of the three (3) year United States Treasury Note as reported by the Federal Reserve The Wall Street Journal on the Commencement Date (collectively, the sum of (i) plus (ii) shall be the “Casualty Loss Value”). Notwithstanding the proceeding, if Lessee has provided notice to terminate the applicable Lease Schedule prior to informing Lessor in writing of a Loss and such Loss is not covered by insurance proceeds pursuant to Section 13 hereof, then Lessee shall pay two (2) times the Casualty Loss Value on the Equipment subject to such Loss. Upon receipt by Lessor of the Casualty Loss Value: (i) the applicable Equipment shall be removed from the Lease Schedule; and (ii) Lessee’s obligation to pay Lease Charges associated with the applicable Equipment shall cease. Lessor may request, and Lessee shall complete, an affidavit(s) that ), which swears out the facts supporting the Loss of any item of Equipment.

Loss and Damage. (a) Lessee shall assume and bear assumes the risk of loss, theft direct and consequential loss and damage (including any governmental requisition, condemnation or confiscation) to the Equipment from all causes. Except as provided in this Section for discharge upon payment of Stipulated Loss Value and all component parts thereof from any and every cause whatsoeverthe other specified amounts, whether or not covered by insurance. No no loss or damage to the Equipment or any component part thereof shall release or impair any obligation obligations of Lessee under this Lease Agreement, which shall continue in full force and effect except as hereinafter expressly provided. Lessee shall repair or cause to be repaired all damage to the EquipmentLease. In the event that all of loss or part damage to any item of Equipment which does not constitute a Total Loss (as hereinafter defined), Lessee shall, at its sole cost and expense, promptly repair and restore such item of the Equipment shallto the condition required by this Lease. (b) Provided that no default or Default has occurred and is continuing, as a result upon receipt of evidence reasonably satisfactory to Lessor of completion of such repairs, Lessor will apply any net insurance proceeds received by Lessor on account of such loss to the cost of repairs. (c) Upon the occurrence of the actual or constructive total loss of any cause item of the Equipment, or the loss, disappearance, theft or destruction of any item of the Equipment or damage to any item of the Equipment to such extent as shall make repair thereof uneconomical or shall render any item of the Equipment permanently unfit for normal use for any reason whatsoever, become lostor the condemnation, stolenconfiscation, destroyed requisition, seizure, forfeiture or otherwise rendered irreparably unusable other taking of title to or damaged use of any item of the Equipment or the imposition of any Lien thereon by any governmental authority (collectivelyas established to the reasonable satisfaction of Lessor, the a “Total Loss”) then ), during the term of this Lease, Lessee shallshall give prompt notice thereof to Lessor. On the next rent payment date, within ten (10) days after the Loss, fully inform Lessor in writing of such a Loss and Lessee shall pay to Lessor the following amounts: (i) rent then due plus the Monthly Lease Charges (and other amounts) due and owing under this Lease Agreement, plus (ii) one-hundred (100%) percent Stipulated Loss Value of the original cost item or items of the Equipment subject with respect to which the Total Loss has occurred and any other sums due hereunder with respect to that Equipment (less any insurance proceeds or condemnation award actually received by Lessor). (d) Upon payment by Lessee of the amounts required under subsection (c) above, this Lease and the obligation to make future rental payments shall terminate solely with respect to the Loss if Equipment or items thereof so paid for and (to the loss occurs extent applicable) Lessee shall become entitled thereto “AS IS WHERE IS” without warranty, express or implied, with respect to any matter whatsoever, Lessor shall deliver to Lessee a xxxx of sale transferring and assigning to Lessee without recourse or warranty, all of Lessor’s right, title and interest in and to the first nine months of Equipment. Lessor shall not be required to make and may specifically disclaim any representation or warranty as to-the Initial Term, and, thereafter, the original cost condition of the Equipment amortized by or any other matters. (e) As used in this Lease, “Stipulated Loss Value” shall mean the subsequent Monthly Lease Charges received by Lessor during the Initial Term using an amortization rate of eight hundred and ninety (890) basis points over the interest rate product of the three Total Cost (3) year United States Treasury Note as reported by the Federal Reserve set forth on the Commencement Date applicable Equipment Schedule) of the Equipment and the applicable percentage factor set forth on the Schedule of Stipulated Loss Values attached to the Equipment Schedule. Stipulated Loss Value shall be determined as of the next date on which a payment of rent is or would be due after a Total Loss or other termination of an Equipment Schedule, after payment of any rent due on such date, and the applicable percentage factor shall be that which is set forth with respect to such rent payment. After payment of the final payment of rent due under the original term of this Lease and during any renewal term thereof, Stipulated Loss Value shall be determined as of the date of termination of such Equipment Schedule (collectivelyabsent any renewal thereof) or, if during a renewal term, on the sum next date on which a payment of (i) plus (ii) rent is or would be due after a Total Loss or other termination of such renewal term, after payment of any rent due on such date, and the applicable percentage factor shall be the “Casualty last percentage factor set forth on the Schedule of Stipulated Loss Value”)Values attached to such Equipment Schedule. Notwithstanding Whenever the proceeding, if Lessee has provided notice to terminate the applicable Lease Schedule prior to informing Lessor in writing of a Loss and such Loss is not covered by insurance proceeds pursuant to Section 13 hereof, then Lessee shall pay two (2) times the Casualty Stipulated Loss Value on the is due under such Equipment subject to Schedule, all other amounts owing such Loss. Upon receipt by Lessor of the Casualty Loss Value: (i) the applicable Equipment shall be removed from the Lease Schedule; Schedule are also due and (ii) Lessee’s obligation to pay Lease Charges associated with the applicable Equipment shall cease. Lessor may request, and Lessee shall complete, an affidavit(s) that swears out the facts supporting the Loss of any item of Equipmentpayable.

Loss and Damage. Lessee 21.1 Notwithstanding Clause 6.1, the Ship shall assume and bear throughout the Charter Period be in every respect at the risk of the Charterer who shall bear all risks howsoever arising whether of navigation, operation and maintenance of the Ship or otherwise and of any other occurrence of whatever kind which shall deprive the Charterer of the use, possession or enjoyment thereof provided however that nothing in this Clause 21.1 shall restrict any claim by the Charterer against the Owner for any default of the Owner in respect of its obligations under Clause 6.1. (a) If the Ship shall become a Total Loss during the Charter Period, the Charterer shall pay, or procure that the insurers pay, to the Owner within one hundred and twenty (120) days (or such longer period as may be agreed) of the Total Loss Date, the Termination Sum as at the Total Loss Date together with interest thereon calculated at the Relevant Rate of Interest from the Total Loss Date to the date of payment and together with all amounts of charterhire and any other amounts then due and payable under this Charterparty and the other Relevant Documents. (b) For the purposes of this Charterparty a Total Loss shall be deemed to have occurred on the following date ("Total Loss Date"): (i) in the case of an actual total loss, theft at noon (London time) on the actual date the Ship was lost, or if such date is not known, noon (London time) on the day on which the Ship was last reported; (ii) in the case of a constructive total loss of the Ship, upon the date and damage at the time notice of abandonment of the Ship is given to the insurers of the Ship for the time being (including any governmental provided a claim for such constructive total loss is admitted by the insurers) or, if the insurers do not admit such a claim at the date and time at which a constructive total loss is subsequently adjudged by a competent court of law to have occurred; (iii) in the case of a compromised or arranged total loss, at the date upon which a binding agreement as to such compromised or arranged total loss has been entered into by the insurers of the Ship; (iv) in the case of Compulsory Acquisition, upon the date upon which the relevant compulsory acquisition, requisition, condemnation appropriation, expropriation, deprivation or confiscation occurs; and (v) in the case of any of the events described in sum paragraph (c) of the definition of Total Loss, upon the expiry of the period of thirty (30) days referred to in such sub-paragraph (c) after the date upon which the relevant hijacking, theft, condemnation, confiscation) , capture, detention, seizure or requisition for use or hire occurred. 21.3 The Charter Period shall terminate on the Total Loss Date and, subject to the Equipment and all component parts thereof from any and every cause whatsoever, whether or not covered payment by insurance. No loss or damage the Charterer to the Equipment Owner of all amounts of charterhire then due and payable under this Charterparty, the Charterer shall cease to be under any liability to pay charterhire (but not any other amounts) thereafter becoming due and payable under this Charterparty or any component part thereof shall impair any obligation of Lessee under this Lease Agreement, which shall continue in full force and effect except as hereinafter expressly provided. Lessee shall repair or cause to be repaired all damage to the Equipment. other Relevant Documents. 21.4 In the event that all or part of the Equipment shallCompulsory Acquisition of the Ship after Delivery, all Requisition Compensation received by the Owner shall be applied by the Owner (or, if receded by the Charterer, shall be held in trust by the Charterer for application) in accordance with Clause 21.5. 21.5 All moneys received by the Owner as loss payee under the Insurances from insurers or others in respect of a result Total Loss shall be applied by the Owner subject to Clause 10.4 as follows: 45 52 (a) Firstly, in or towards settlement of any cause whatsoever, become lost, stolen, destroyed or otherwise rendered irreparably unusable or damaged (collectively, the “Loss”) then Lessee shall, within ten (10) days after the Loss, fully inform Lessor in writing of such a Loss and shall pay to Lessor the following amounts: (i) the Monthly Lease Charges (and other amounts) amounts due and owing by the Charterer to the Owner under this Lease Agreement, plus (ii) one-hundred (100%) percent Charterparty or any of the original cost of the Equipment subject to the Loss if the loss occurs in the first nine months of the Initial Term, and, thereafter, the original cost of the Equipment amortized by the subsequent Monthly Lease Charges received by Lessor during the Initial Term using an amortization rate of eight hundred and ninety (890) basis points over the interest rate of the three (3) year United States Treasury Note as reported by the Federal Reserve on the Commencement Date (collectively, the sum of (i) plus (ii) shall be the “Casualty Loss Value”). Notwithstanding the proceeding, if Lessee has provided notice to terminate the applicable Lease Schedule prior to informing Lessor in writing of a Loss and such Loss is not covered by insurance proceeds pursuant to Section 13 hereof, then Lessee shall pay two (2) times the Casualty Loss Value on the Equipment subject to such Loss. Upon receipt by Lessor of the Casualty Loss Value: (i) the applicable Equipment shall be removed from the Lease Schedule; and (ii) Lessee’s obligation to pay Lease Charges associated with the applicable Equipment shall cease. Lessor may request, and Lessee shall complete, an affidavit(s) that swears out the facts supporting the Loss of any item of Equipment.other Relevant Documents;

Loss and Damage. Lessee The undersigned further acknowledges and expressly understands that Lessor, VENCORE SOLUTIONS LLC (hereinafter “VENCORE”), is in no way responsible for the availability, delivery, installation, service, maintenance or repair of any of the equipment described in the Lease. The undersigned agrees that failure of the supplier or the installer of said equipment to deliver or install it, or failure of the equipment to perform properly or failure of the supplier and/or installer of said equipment to render service and/or make necessary repairs shall assume not be deemed grounds for nonpayment of any rental payments, nor for non-performance of any term and/or condition of the Lease whatsoever. The undersigned further acknowledges and bear it is expressly understood that any agreement for the risk availability, installation, service, maintenance or repair of losssaid equipment is strictly between the supplier and the undersigned and that VENCORE shall be held harmless by the undersigned for any loss whatsoever which may be occasioned by any problem with the availability, theft and damage (including any governmental requisitioninstallation, condemnation service, maintenance or confiscation) to the Equipment and all component parts thereof repair of said equipment or from any and every cause whatsoever, whether or not covered claim of any nature made by insurance. No loss or damage to the Equipment undersigned or any component part thereof other party. The undersigned agrees that even though the equipment included in the Lease has not been either delivered nor installed, the undersigned shall impair any obligation begin and continue to make payments required by the terms of Lessee under this the Lease Agreementas if the equipment had been delivered and installed on the date thereof. The undersigned further acknowledges that VENCORE has made no representations nor warranties regarding when, which shall continue in full force and effect except as hereinafter expressly provided. Lessee shall repair or cause if ever, said equipment is to be repaired all damage to the Equipmentdelivered or installed. In the event that all or part THE UNDERSIGNED HEREBY ACKNOWLEDGES THAT THE ABOVE HAS BEEN READ AND THAT A COMPLETED, LEGIBLE COPY OF THE SAME HAS BEEN RECEIVED. LESSEE: LESSOR: By: X /s/ Xxxxx Xxxxxx By: /s/ Xxxxx Xxxxxx Xxxxx Xxxxxx Title: CEO & CHAIRMAN Title: Managing Director Date x 5-7-05 Date: ______________ It is hereby agreed this X 7 day of the Equipment shallX May 20X05, as by and between IsoRay, Inc., a result Delaware Corporation of any cause whatsoever000 Xxxxx Xxxxxx, become lostXxxxx 000, stolenXxxxxxxx, destroyed or otherwise rendered irreparably unusable or damaged XX 00000 (collectively, the “LossDebtor”) then Lessee shalland VENCORE SOLUTIONS LLC of 0000 XX Xxxxx Way, within ten Suite 350, Lake Oswego, OR 97035 (10) days after the Loss, fully inform Lessor in writing of such a Loss and shall pay to Lessor the following amounts: (i) the Monthly Lease Charges (and other amounts) due and owing under this Lease Agreement, plus (ii) one-hundred (100%) percent of the original cost of the Equipment subject to the Loss if the loss occurs in the first nine months of the Initial Term, and, thereafter, the original cost of the Equipment amortized by the subsequent Monthly Lease Charges received by Lessor during the Initial Term using an amortization rate of eight hundred and ninety (890) basis points over the interest rate of the three (3) year United States Treasury Note as reported by the Federal Reserve on the Commencement Date (collectively, the sum of (i) plus (ii) shall be the “Casualty Loss ValueSecured Party”). Notwithstanding the proceeding, if Lessee has provided notice to terminate the applicable Lease Schedule prior to informing Lessor in writing of a Loss and such Loss is not covered by insurance proceeds pursuant to Section 13 hereof, then Lessee shall pay two (2) times the Casualty Loss Value on the Equipment subject to such Loss. Upon receipt by Lessor of the Casualty Loss Value: (i) the applicable Equipment shall be removed from the Lease Schedule; and (ii) Lessee’s obligation to pay Lease Charges associated with the applicable Equipment shall cease. Lessor may request, and Lessee shall complete, an affidavit(s) that swears out the facts supporting the Loss of any item of Equipment.):

Loss and Damage. (a) Lessee shall assume and bear assumes the risk of loss, theft direct and consequential loss and damage (including any governmental requisition, condemnation or confiscation) to the Equipment and from all component parts thereof from any and every cause whatsoevercauses. Except as provided in this Section 11 for discharge upon payment of Stipulated Loss Value, whether or not covered by insurance. No no loss or damage to the Equipment or any component part thereof shall release or impair any obligation obligations of Lessee under this Lease AgreementLease. Without limiting Sections 5, which 7, 8, 13 or any other provision hereof, Lessee agrees that Lessor shall continue not incur any liability to Lessee for any loss of business, loss of profits, expenses, or any other Claims resulting to Lessee by reason of any failure of or delay in full force and effect except as hereinafter expressly provided. Lessee delivery or any delay caused by any non-performance, defective performance, or breakdown of the Equipment, nor shall repair Lessor at any time be responsible for person injury or cause to be repaired all damage to the loss or destruction of any other property resulting from the Equipment. In the event that all of loss or part damage to any item of the Equipment shallwhich does not constitute a Total Loss, as a result of any cause whatsoever, become lost, stolen, destroyed or otherwise rendered irreparably unusable or damaged (collectively, the “Loss”) then Lessee shall, within ten (10) days after at its sole cost and expense, promptly repair and restore such item of Equipment to the Losscondition required by this Lease. Provided that no Default or default has occurred and is then continuing, fully inform upon receipt of evidence reasonably satisfactory to Lessor in writing of completion of such repairs, Lessor will apply any net insurance proceeds received by Lessor on account of such loss to the cost of repairs. Upon the occurrence of a Total Loss and during the Term of this Lease, Lessee shall give prompt notice thereof to Lessor. On the next date for the payment of Basic Rent, Lessee shall pay to Lessor the following amounts: (i) Rent due on that date plus the Monthly Lease Charges (and other amounts) due and owing under this Lease Agreement, plus (ii) one-hundred (100%) percent Stipulated Loss Value of the original cost item or items of the Equipment with respect to which the Total Loss has occurred and any other sums due hereunder with respect to that Equipment (less any net insurance proceeds or net condemnation award actually paid to Lessor to compensate it for such Total Loss). Upon Lessor's receipt of such payment in good collected indefeasible funds with respect to an Equipment Schedule, such Equipment Schedule and the obligation to make future payments of Basic Rent thereunder shall terminate solely with respect to the Equipment or items thereof so paid for and (unless any insurer shall otherwise demand) Lessor shall be deemed to have conveyed all of its right, title and interest therein to Lessee "AS IS, WHERE IS" and otherwise subject to Section 7 hereof. Stipulated Loss Value shall be determined as of the next date of which a payment of Basic Rent is or would be due after a Total Loss if or other termination of the loss occurs subject Equipment Schedule, after payment of any Basic Rent due on such date, and the applicable percentage factor shall be that which is set forth on the SLV Schedule with respect to such Basic Rent payment. (b) Notwithstanding the foregoing or any other provision hereof to the contrary, in the first nine months event any item(s) of Equipment suffers a Total Loss and the insurance carrier providing coverage obtained by Lessee against such Total Loss, has as a result of such Total Loss, agreed in writing to pay to Lessor as the sole loss payee proceeds of such coverage in an amount equal to the Stipulated Loss Value (determined as of the Initial TermBasic Rent payment date next preceding such Total Loss, andbut otherwise in accordance with the preceding clause (b)), thereafter, the original cost of the Equipment amortized by the subsequent Monthly Lease Charges received by Lessor during the Initial Term using an amortization rate of eight hundred and ninety (890) basis points over the interest rate of the three (3) year United States Treasury Note as reported by the Federal Reserve on the Commencement Date (collectively, the sum of (i) plus (ii) shall be the “Casualty Loss Value”). Notwithstanding the proceeding, if Lessee has provided notice to terminate the applicable Lease Schedule prior to informing Lessor in writing of a Loss and such Loss is not covered by insurance proceeds pursuant to Section 13 hereof, then Lessee shall pay two (2) times the Casualty Loss Value on the Equipment subject to such Loss. Upon receipt by Lessor of the Casualty Loss Value: (i) the applicable Equipment shall be removed from the Lease Schedule; and (ii) Lessee’s 's obligation to pay Lease Charges associated with future installments of Basic Rent for such item(s) of Equipment suffering a Total Loss shall cease as of the applicable Equipment shall cease. Lessor may requestBasic Rent payment date preceding the Total Loss thereof, and Lessee shall completethereupon be relieved of its obligation to pay the Stipulated Loss Value thereof; provided, that (i) Lessee has given prompt written notice of such Total Loss to Lessor and the appropriate insurer(s) (which notice shall include Lessee's written election that it intends that this clause (b) shall apply to such Total Loss); (ii) no default or Default occurs prior to Lessor's receipt of all amounts due from Lessee and such insurer pursuant hereto in good collected indefeasible funds; (iii) such insurer neither (A) repudiates its obligation to the amount required above or fails to pay such amount to Lessor in good collected indefeasible funds within 90 days after the date of the Total Loss, nor (B) suffers an affidavit(sevent of the type described in Section 14(a)(iv); and (iv) Lessee takes all actions as shall be requested by Lessor with respect to the insurance coverage, or otherwise necessary to facilitate the payment of the insurance proceeds required above. Upon the failure of any of the conditions set forth in the proviso in the preceding sentence, Lessee shall immediately be liable to an pay to Lessor the full amounts that swears out would otherwise have been due pursuant to paragraph (a) of this Section 11. To the facts supporting extent Lessee's obligation to pay the Stipulated Loss Value of any item of EquipmentEquipment is satisfied by Lessor's receipt of insurance proceeds as provided above, and not by funds in such amount paid by Lessee in the manner required herein, Lessor shall have no obligation to convey such item of Equipment to Lease.

Loss and Damage. Lessee shall assume and bear the risk of loss, theft and damage (including any governmental requisition, condemnation or confiscationconfiscation ) to the Equipment and all component parts thereof from any and every cause whatsoever, whether or not covered by insurance. No loss or damage to the Equipment or any component part thereof shall impair any obligation of Lessee under this Lease Agreement, which shall continue in full force and effect except as hereinafter expressly provided. Lessee shall repair or cause to be repaired all damage to the Equipment. In the event that all or part of the damage to the Equipment. In the event that all or part of the Equipment shall, as a result of any cause whatsoever, become lost, stolen, destroyed or otherwise rendered irreparably unusable or damaged (collectively, the “"Loss”") then Lessee shall, within ten (10) days after the Loss, fully inform Lessor in writing of such a Loss and shall pay to Lessor the following amounts: (i) the Monthly Lease Charges (and other amounts) due and owing under this Lease AgreementAgreement at the time of the Loss, plus (ii) one-hundred twelve (100112%) percent of the original cost of the Equipment subject to the Loss if the loss occurs in the first nine months of the Initial Term, and, thereafter, the original cost of the Equipment amortized by the subsequent Monthly Lease Charges received by Lessor during the Initial Term using an amortization rate of eight hundred and ninety (890) 350 basis points over the interest rate of the three (3) year United States Treasury Note as reported by the Federal Reserve The Wall Street Journal on the Commencement Date (collectively, the sum of (i) plus (ii) shall be the “"Casualty Loss Value”"). Notwithstanding the proceeding, if Lessee has provided notice to terminate the applicable Lease Schedule prior to informing Lessor in writing of a Loss and such Loss is not covered by insurance proceeds pursuant to Section 13 hereof, then Lessee shall pay two (2) times the Casualty Loss Value on the Equipment subject to such Loss. Upon receipt by Lessor of the Casualty Loss Value: (i) the applicable Equipment shall be removed from the Lease Schedule; and (ii) Lessee’s 's obligation to pay Lease Charges associated with the applicable Equipment shall cease. Lessor may request, and Lessee shall complete, an affidavit(s) that which swears out the facts supporting the Loss of any item of Equipment.

Loss and Damage. Lessee shall assume and bear the risk of loss, theft and damage (including any governmental requisition, condemnation or confiscation) to the Equipment and all component parts thereof from any and every cause whatsoever, whether or not covered by insurance. No loss or damage to the Equipment or any component part thereof shall impair any obligation of Lessee under this Lease Agreement, which shall continue in full force and effect except as hereinafter expressly provided. Lessee shall repair or cause to be repaired all damage to the Equipment. In the event that all or part of the Equipment shall, as a result of any cause whatsoever, become lost, stolen, destroyed destroyed, depleted or otherwise rendered irreparably unusable, damaged or consumed, which shall include Equipment that would be rendered unusable or damaged by the act of deinstalling for return to Lessor (e.g. leasehold improvements of real estate etc.) (collectively, the “Loss”) then Lessee shall, within ten (10) days after the Loss, fully inform Lessor in writing of such a Loss and shall pay to Lessor the following amounts: (i) the Monthly Lease Charges (and other amounts) then due and owing under this Lease Agreement, plus (ii) one-hundred (100%) percent of the original cost of the Equipment subject to the Loss if the loss occurs in either the installation period or during the first nine months of the Initial Term, and, thereafter, the original cost of the Equipment amortized by the subsequent Monthly Lease Charges received by Lessor during the Initial Term using an amortization rate of eight hundred and ninety (890) basis points over the interest rate of the three (3) year United States Treasury Note as reported by the Federal Reserve on the Commencement Date (collectively, the sum of (i) plus (ii) shall be the “Casualty Loss Value”). Notwithstanding If the proceedingLoss occurs after the Initial Term, if Lessee has provided notice to terminate (ii) above shall be the applicable Lease Schedule prior to informing Lessor in writing remaining unamortized balance as of a Loss and such Loss is not covered by insurance proceeds pursuant to Section 13 hereof, then Lessee shall pay two the end of the Initial Term without further amortization (2) times the “Terminal Casualty Loss Value on the Equipment subject to such LossValue”). Upon receipt by Lessor of the Casualty Loss Value: (i) the applicable Equipment shall be removed from the Lease Schedule; and (ii) Lessee’s obligation to pay Lease Charges associated with the applicable Equipment shall cease. Lessor may request, and Lessee Xxxxxx shall complete, an affidavit(s) that swears out the facts supporting the Loss of any item of Equipment.

Loss and Damage. Lessee shall assume and bear the risk of loss, theft and damage (including any governmental requisition, condemnation or confiscation) to the Equipment and all component parts thereof from any and every cause whatsoever, whether or not covered by insurance. No loss or damage to the Equipment or any component part thereof shall impair any obligation of Lessee under this Lease Agreement, which shall continue in full force and effect except as hereinafter expressly provided. Lessee shall repair or cause to be repaired all damage to the Equipment. In the event that all or part of the Equipment shall, as a result of any cause whatsoever, become lost, stolen, destroyed or otherwise rendered irreparably unusable or damaged (collectively, the “Loss”) then Lessee shall, within ten (10) days after the Loss, fully inform Lessor in writing of such a Loss and shall pay to Lessor Lessor, to the extent permitted by law and subject to the annual appropriation provision of Section 28(i), the following amounts: (i) the Monthly Lease Charges (and other amounts) due and owing under this Lease AgreementAgreement at the time of the Loss (or Event of Default, as defined hereinafter), plus (ii) one-hundred (100%) percent of the original cost Original Cost of the Equipment subject to the Loss if the loss occurs in the first nine months (or Event of the Initial TermDefault, and, thereafter, the original cost of the Equipment amortized as defined hereinafter) multiplied by the subsequent Monthly Lease Charges “Percent of Original Cost.” The Original Cost of a particular item of Equipment shall be Lessee’s original purchase price of such item at the time of its purchase or payment to the applicable vendor by Lessor, plus additional or related charges such as taxes, delivery and freight, installation, maintenance, etc. The Percent of Original Cost shall be the Per Payment Factor multiplied by the number of lease payments Lessor has received by Lessor from Lessee during the Initial Term using an amortization rate subtracted from 112 and then divided by 100. The Per Payment Factor is the sum of eight hundred and ninety (890) basis points over the interest rate of the three (3) year United States Treasury Note as reported 112 multiplied by 0.8 divided by the Federal Reserve on number of Monthly Lease Charges that are due during the Commencement Date Initial Term (collectively, the sum of (i) plus (ii) shall be the “Casualty Loss Value”). Notwithstanding the proceeding, if Lessee has provided notice to terminate the applicable Lease Schedule prior to informing Lessor in writing of a Loss and such Loss is not covered by insurance proceeds pursuant to Section 13 hereof, then Lessee shall pay two (2) times the Casualty Loss Value on the Equipment subject to such Loss. Upon receipt by Lessor of the Casualty Loss Value: (i) the applicable Equipment shall be removed from the Lease Schedule; and (ii) Lessee’s obligation to pay Lease Charges associated with the applicable Equipment shall cease. Lessor may request, and Lessee shall complete, an affidavit(s) that which swears out the facts supporting the Loss of any item of Equipment.

Loss and Damage. Lessee shall assume and bear the risk of loss, theft and damage (including any governmental requisition, condemnation or confiscation) to the Equipment and all component parts thereof from any and every cause whatsoever, whether or not covered by insurance. No loss or damage to the Equipment or any component part thereof shall impair any obligation of Lessee under this Lease Agreement, which shall continue in full force and effect except as hereinafter expressly provided. Lessee shall repair or cause to be repaired all damage to the Equipment. In the event that all or part of the Equipment shall, as a result of any cause whatsoever, become lost, stolen, destroyed or otherwise rendered irreparably unusable or damaged (collectively, the “Loss”) then Lessee shall, within ten (10) days after the Loss, fully inform Lessor in writing of such a Loss and shall pay to Lessor the following amounts: (i) the Monthly Lease Charges (and other amounts) due and owing under this Lease AgreementAgreement at the time of the Loss, plus (ii) one-hundred twelve (100112%) percent of the original cost of the Equipment subject to the Loss if the loss occurs in the first nine months (or Event of the Initial TermDefault, and, thereafter, the original cost of the Equipment as defined hereinafter) amortized by the subsequent Monthly Lease Charges received by Lessor during the Initial Term using an amortization rate of eight hundred and ninety (890) 350 basis points over the interest rate of the three (3) year United States Treasury Note as reported by the Federal Reserve The Wall Street Journal on the Commencement Date (collectively, the sum of (i) plus (ii) shall be the “Casualty Loss Value”). Notwithstanding the proceeding, if Lessee has provided notice to terminate the applicable Lease Schedule prior to informing Lessor in writing of a Loss and such Loss is not covered by insurance proceeds pursuant to Section 13 hereof, then Lessee shall pay two (2) times the Casualty Loss Value on the Equipment subject to such Loss. Upon receipt by Lessor of the Casualty Loss Value: (i) the applicable Equipment shall be removed from the Lease Schedule; and (ii) Lessee’s obligation to pay Lease Charges associated with the applicable Equipment shall cease. Lessor may request, and Lessee shall complete, an affidavit(s) that which swears out the facts supporting the Loss of any item of Equipment.

Loss and Damage. Lessee shall assume and bear the risk of loss, theft and damage (including any governmental government requisition, condemnation or confiscation) to the Equipment and all component parts thereof hereof from any and every cause whatsoever, whether or not covered by insurance. No loss or damage to the Equipment or any component part thereof shall impair any obligation of Lessee under this Lease Agreement, which shall continue in full force and effect except as hereinafter expressly provided. Lessee shall repair or cause to be repaired all damage to the Equipment. In the event that all or part of the Equipment shall, as a result of any cause whatsoever, become lost, stolen, destroyed or otherwise rendered irreparably unusable or damaged (collectively, the “"Loss”") then Lessee shall, within ten (10) days after the Loss, fully inform Lessor in writing of such a Loss and shall pay to Lessor the following amounts: (i) the Monthly Lease Charges (and other amounts) due and owing under this Lease AgreementAgreement at the time of the Loss (or Event of Default, as defined hereinafter), plus (ii) one-hundred (100%) percent of the original cost of the Equipment subject to the Loss if the loss occurs in the first nine months (or Event of the Initial TermDefault, and, thereafter, the original cost of the Equipment amortized as defined hereinafter) multiplied by the subsequent Monthly Lease Charges “Percent of Original Cost.” The Original Cost of a particular item of Equipment shall be Lessee’s original purchase price of such item at the time of its purchase or payment to the applicable vendor by Lessor, plus additional or related charges such as taxes, delivery and freight, installation, maintenance, etc. The Percent of Original Cost shall be the Per Payment Factor multiplied by the number of lease payments Lessor has received by Lessor from Lessee during the Initial Term using an amortization rate subtracted from 112 and then divided by 100. The Per Payment Factor is the sum of eight hundred and ninety (890) basis points over the interest rate of the three (3) year United States Treasury Note as reported 112 multiplied by 0.75 divided by the Federal Reserve on number of Monthly Lease Charges that are due during the Commencement Date Initial Term (collectively, the sum of (i) plus (ii) shall be the “Casualty Loss Value”). Notwithstanding the proceeding, if Lessee has provided notice to terminate the applicable Lease Schedule prior to informing Lessor in writing of a Loss and such Loss is not covered by insurance proceeds pursuant to Section 13 hereof, then Lessee shall pay two (2) times the Casualty Loss Value on the Equipment subject to such Loss. Upon receipt by Lessor of the Casualty Loss Value: (i) the applicable Equipment shall be removed from the Lease Schedule; and (ii) Lessee’s obligation to pay Lease Charges associated with the applicable Equipment shall cease. Lessor may request, and Lessee Xxxxxx shall complete, an affidavit(s) that ), which swears out the facts supporting the Loss of any item of Equipment.

Loss and Damage. 17.1 Notwithstanding Clause 6.1 (Lessor's Warranties and Manufacturer's Warranties), throughout the Lease Period the Lessee shall assume and bear the full risk of any loss, theft and damage (including any governmental requisitiondestruction, condemnation hijacking, theft, condemnation, confiscation, seizure or confiscation) to the Equipment and all component parts thereof from any and every cause whatsoever, whether or not covered by insurance. No loss requisition of or damage to the Equipment Aircraft and of any other occurrence of whatever kind which shall deprive the Lessee or the operator of the Aircraft for the time being of the use, possession or enjoyment thereof. (a) The Lessee shall give the Lessor prompt notice in writing of any component part thereof such occurrence as is referred to in Clause 17.1 other than repairable damage the likely cost of rectification of which will not exceed in aggregate $[ ]*, or, in relation to any Engine, $[ ]* in aggregate. (b) The Lessee shall impair supply to the Lessor all necessary information, documentation and assistance which may be reasonably requested by the Lessor in connection with making any obligation claim under the Insurances. (a) If the Aircraft shall become a Total Loss during the Lease Period, the Lessee shall pay, or procure that the insurers pay, to either the Head Lessor, the Lessor or the Lenders (as the Lessor may direct in writing) being loss payee under the Insurances within ninety (90) days (or such longer period as may be agreed) of the date on which the Total Loss occurred, the Agreed Value together with all amounts of rent and any other amounts then due and payable under this Agreement. (b) For the purposes of this Agreement a Total Loss shall be deemed to have occurred: (i) in the case of an actual total loss, at noon (London time) on the actual date the Aircraft was lost or, if such date is not known, noon (London time) on the day on which the Aircraft was last heard of; (ii) in the case of any of the events described in sub-paragraph (a) of the definition of Total Loss (other than an actual total loss), upon the date that notice claiming the loss of the Aircraft is given to the relevant insurers, unless the insurers do not forthwith admit such claim, when such Total Loss shall be deemed to have occurred at the date and time at which either a total loss is subsequently admitted by the insurers or a competent court or arbitration tribunal issues a judgment to the effect that a total loss has occurred; (iii) in the case of any of the events described in subparagraph (b) of the definition of Total Loss, upon the date of occurrence of such destruction, damage or rendering unfit; (iv) in the case of Compulsory Acquisition, upon the date upon which the relevant requisition of title or other compulsory acquisition, requisition, appropriation, expropriation, deprivation or confiscation occurs; and (v) in the case of any of the events described in sub-paragraph (d) of the definition of Total Loss, upon the expiry of the period of ninety (90) days referred to in such subparagraph (d) after the date upon which the relevant hijacking, theft, condemnation, confiscation, capture, detention, seizure or requisition for use or hire occurred. 17.4 The Lessee shall continue to pay rent on the days and in the amounts required under this Agreement notwithstanding any Total Loss; provided always that no further installments of rent shall become due after the date on which all sums due under Clause 17.3(a) shall have been paid in full, and the Lease Period shall terminate on the date of such payment. Upon such termination of the Lease Period and following payment of the Agreed Value, the Lessor shall make a payment to the Lessee in the amount described in paragraph 5 of Letter Agreement No. 1. to the extent that Lessor received insurance proceeds or Requisition Compensation with respect to such Total Loss in excess of the amounts required to be paid by Lessee under this Lease AgreementClause 17.3(a) and, which for the avoidance of doubt, Lessor shall continue in full force and effect except as hereinafter expressly provided. Lessee shall repair be entitled to apply such excess insurance proceeds or cause to be repaired all Requisition Compensation for the purpose of making such payment. 17.5 In the event of repairable damage to the Equipment. Aircraft or any of the Engines, or the loss or destruction of any Engine (when no Total Loss has occurred), the Lessor or the Lenders as loss payee under the Insurances shall either pay any insurance moneys received by it or them to the Lessee upon the Lessee furnishing evidence to the Lessor that such damage has been made good or repaired or put in hand for repair or, in the case of the loss or destruction of any Engine, utilize the relevant insurance moneys in the purchase of a replacement Engine provided always that if a Relevant Event has occurred and is continuing, the Lessor shall be entitled to require that such insurance moneys be applied in or towards settlement of any amounts owing by the Lessee to the Lessor under this Agreement. 17.6 In the event that all of repairable damage to the Aircraft or part any of the Equipment shallEngines, as or the loss or destruction of an Engine (when no Total Loss has occurred), and if the insurance moneys paid in respect thereof are insufficient to pay the cost or estimated cost of making good or repairing such damage or the cost of purchasing a result of any cause whatsoever, become lost, stolen, destroyed or otherwise rendered irreparably unusable or damaged (collectivelyreplacement Engine, the “Loss”Lessee will pay the deficiency. 17.7 Any Requisition Compensation on account of a Compulsory Acquisition received at any time by Lessor or by Lessee from any governmental authority or any other source will be directed or paid to Lessor (if not already received by Lessor) then Lessee shall, within ten and applied by Lessor as follows: (10a) days after the Loss, fully inform Lessor in writing so much of such a Loss and payments as shall pay to Lessor not exceed the following amounts: (i) the Monthly Lease Charges (Agreed Value and other amounts) due and owing under this Lease Agreement, plus (ii) one-hundred (100%) percent of the original cost of the Equipment subject to the Loss if the loss occurs in the first nine months of the Initial Term, and, thereafter, the original cost of the Equipment amortized amounts payable by the subsequent Monthly Lease Charges received by Lessor during the Initial Term using an amortization rate of eight hundred and ninety (890) basis points over the interest rate of the three (3) year United States Treasury Note as reported by the Federal Reserve on the Commencement Date (collectively, the sum of (i) plus (iiLessee pursuant to Clause 17.3(a) shall be applied in reduction of Lessee's obligation to make such payments to the “Casualty Loss Value”). Notwithstanding extent not already paid by Lessee and, to the proceedingextent such payments are fully paid by such application or have already been made in full by Lessee, to reimburse the Lessee; (b) the remaining balance, if any, shall be paid to the Lessee has provided notice up to terminate the applicable Lease Schedule prior an amount equal to informing Lessee's Interest (if any) minus any amount paid by Lessor in writing of a Loss and such Loss is not covered by insurance proceeds to Lessee pursuant to Section 13 hereof, then Lessee shall pay two Clause 17.4. and (2c) times the Casualty Loss Value on the Equipment subject to such Loss. Upon receipt by Lessor of the Casualty Loss Value: (i) the applicable Equipment any amount remaining thereafter shall be removed from the Lease Schedule; and (ii) Lessee’s obligation to pay Lease Charges associated with the applicable Equipment shall cease. Lessor may request, and Lessee shall complete, an affidavit(s) that swears out the facts supporting the Loss of any item of Equipmentretained by Lessor.

Loss and Damage. Lessee hereby assumes and shall assume and bear the entire risk of loss, damage, theft and damage (including any governmental requisitionor destruction, condemnation partial or confiscation) to complete, whether or not insured against, of the Equipment and all component parts thereof from any and every cause whatsoever, whether or not covered by insurancewhatsoever from the date of delivery of the Equipment to Lessee. No loss loss, damage, theft or damage to destruction of the Equipment or any component part thereof shall impair relieve Lessee of any obligation of Lessee under this Lease AgreementLease, which shall continue in full force and effect except as hereinafter expressly providedeffect. In the event of loss or damage of any kind to any item of Equipment, Lessee shall repair promptly notify Lessor of such event and, at Lessor's option, Lessee shall, at its own cost and expense, (i) use all reasonable efforts to place the same in good repair, condition and working order to the satisfaction of Lessor within 30 days of such loss or damage unless Lessor shall determine that such item has been irreparably damaged, in which case Lessor may elect to shorten or terminate said 30-day period, or (ii) replace such Equipment with like equipment in good repair, condition and working order and, upon prior written notice to Lessor, cause such replacement equipment to be repaired all damage delivered to and installed at a location otherwise permitted hereunder and give clear title thereto by appropriate instrument to Lessor, which replacement equipment shall be subject to the Equipmentterms and conditions hereof, including, without limitation, Section 4(b) hereof. In the event Lessee has fully complied to Lessor's reasonable satisfaction with the requirements of the previous sentence, Lessor shall return to Lessee (without interest) the insurance proceeds, if any, paid to Lessor as a result of such loss or damage under the insurance policies required pursuant to Section 12 hereof. In the event that all any item of Equipment shall become subject to a Total Loss, Lessee shall inform the Lessor in writing in regard thereto within thirty (30) days after such Total Loss and Lessee shall pay to Lessor, in cash, an amount equal to the Stipulated Loss Value thereof as set forth in Schedule C hereto as the case may be; provided, however, that such amount shall be reduced if and to the extent that Lessor or part of any Transferee has received proceeds from the Equipment shall, insurance required to be maintained by Lessee pursuant to Section 12 as a result of any cause whatsoever, become lost, stolen, destroyed or otherwise rendered irreparably unusable or damaged (collectively, the “Loss”) then Lessee shall, within ten (10) days after the such Total Loss, fully inform and Lessor in writing of agrees that if such a Loss and shall pay insurance proceeds are paid to Lessor after Lessee has paid Stipulated Loss Value in full, Lessor shall reimburse Lessee the following amounts: (i) proceeds thereof, such reimbursement not to exceed the Monthly Lease Charges (and other amounts) due and owing under this Lease Agreement, plus (ii) one-hundred (100%) percent Stipulated Loss Value amount paid by Lessee related to such Total Loss. Where a single amount for the payment of the original cost of the Equipment subject to the Loss if the loss occurs in the first nine months of the Initial Term, and, thereafter, the original cost of the Equipment amortized by the subsequent Monthly Lease Charges received by Lessor during the Initial Term using an amortization rate of eight hundred and ninety (890) basis points over the interest rate of the three (3) year United States Treasury Note as reported by the Federal Reserve Basic Rent is set forth on the Commencement Date (collectively, the sum of (i) plus (ii) shall be the “Casualty Loss Value”). Notwithstanding the proceeding, if Lessee has provided notice to terminate the applicable Lease Schedule prior to informing Lessor in writing of a Loss and such Loss is not covered by insurance proceeds pursuant to Section 13 hereof, then Lessee shall pay two (2) times the Casualty Loss Value on the Equipment subject to such Loss. Upon receipt by Lessor of the Casualty Loss Value: (i) the applicable Equipment shall be removed from the Lease Schedule; and (ii) Lessee’s obligation to pay Lease Charges associated with the applicable Equipment shall cease. Lessor may request, and Lessee shall complete, an affidavit(s) that swears out the facts supporting the Loss of any cover page hereof for more than one item of Equipment, and less than all such items are subject to a Total Loss, such Basic Rent shall be apportioned among such items in accordance with their original list prices, and the Stipulated Loss Value shall be based on such apportioned Basic Rent. Upon such payment of Stipulated Loss Value for any item(s) hereunder, this Lease shall terminate with respect to such items(s) and Basic Rent shall thereafter xxxxx proportionately.

Loss and Damage. Lessee assumes all risk of, and shall promptly notify Lessor of any occurrence of, any damage to or loss, theft, confiscation or destruction of (together, “Casualty”) each Unit from any cause whatsoever from the date the Unit is shipped by the vendor or manufacturer or otherwise made available to Lessee (“Shipment Date”). If any Unit suffers a Casualty from the Shipment Date until the Acceptance Date, Lessee shall assume and bear the risk of loss, theft and damage (including pay Lessor any governmental requisition, condemnation or confiscation) to the Equipment and all component parts thereof from any and every cause whatsoever, whether or not covered by insurance. No loss or damage to the Equipment or any component part thereof shall impair any obligation of Lessee under this Lease Agreement, which shall continue in full force and effect except as hereinafter expressly provided. Lessee shall repair or cause sum required to be repaired all damage paid under any Progress Payment Agreement entered into between Lessor and Lessee in relation to the Equipmentsuch Unit. In the event that all If any Unit suffers a Casualty on or part of the Equipment after its Acceptance Date, Lessee shall, as a result if the Casualty is damage that is reparable in the judgment of any cause whatsoeverLessee, become at Lessees option either: (i) at its own expense promptly place the same in good repair, condition or working order or (ii) pay the Balance Due with respect thereto, and if the Unit is lost, stolen, confiscated, destroyed or otherwise rendered irreparably unusable or damaged beyond repair (collectively, the “Total Loss”) then Lessee shall), on the rent payment date following such occurrence (or, if none, within ten (1030 days) days pay Lessor the Balance Due therefor, together with all other amounts owing under the Lease with respect to the Unit. The “Balance Due” for each Unit is, after the LossAcceptance Date and before the Base Date for such Unit, fully inform Lessor Lessor’s Cost in writing respect of such a Loss Unit, together with all Interim Rent accrued to the date of payment and shall pay to Lessor the following amounts: (i) the Monthly Lease Charges (and all other amounts) due and amounts owing under this Lease Agreementthe Lease, plus (ii) one-hundred (100%) percent of the original cost of the Equipment subject to the Loss if the loss occurs in the first nine months of the Initial Term, and, and thereafter, the original cost of the Equipment amortized by the subsequent Monthly Lease Charges received by Lessor during the Initial Term using an amortization rate of eight hundred and ninety (890) basis points over the interest rate of the three (3) year United States Treasury Note as reported by the Federal Reserve on the Commencement Date (collectively, the sum of (i) plus (ii) shall be the “Casualty Loss Value”). Notwithstanding the proceedingpresent value, if Lessee has provided notice to terminate the applicable Lease Schedule prior to informing Lessor in writing as of a Loss and such Loss is not covered by insurance proceeds pursuant to Section 13 hereofpayment date, then Lessee shall pay two (2) times the Casualty Loss Value on the Equipment subject to such Loss. Upon receipt by Lessor of the Casualty Loss Value: (i) the applicable Equipment shall be removed from entire unpaid balance of all Base Rent for such Unit that would otherwise have accrued under the Lease Schedule; from such payment date to the end of its scheduled Base Term and (ii) Lessee’s obligation to pay Lease Charges associated with the present value, as of such payment date, of the Purchase Amount therefor as specified in the applicable Equipment Schedule, in each case, discounted at the implicit rate for the Lease reasonably determined by Lessor. Upon such payment, (a) the Lease of such Unit shall cease. Lessor may request, terminate and Lessee thereupon shall completebecome entitled to possession of such Unit and (b) Lessee shall become entitled to proceeds of insurance maintained by Lessee. If less than all Units in the applicable Schedule suffer Total Loss, an affidavit(s) that swears out the facts supporting remaining Base Rent under the Loss of any item of EquipmentSchedule shall be reduced as reasonably calculated by Lessor and notified to Lessee.

Loss and Damage. Lessee shall assume and bear 21.1 From the risk of loss, theft and damage (including delivery date until any governmental requisition, condemnation or confiscation) to the Equipment and all component parts thereof from any and every cause whatsoever, whether or not covered by insurance. No loss or damage to the Equipment or any component part thereof shall impair any obligation obligations of the Lessee under this Contract are fulfilled, any risk of damage and loss of the Lease AgreementItem shall be borne by the Lessee, which shall continue in full force and effect except as hereinafter expressly provided. no matter whether such risk is covered or not by the insurance under this Contract. 21.2 During the Leasing Term, if any loss, destroy or irreparable damage or forfeit or confiscation occurs due to any reasons (“Total Loss”), the Lessee shall repair or cause to be repaired all damage immediately notify the Lessor and pay to the EquipmentLessor on the next Rental Payment Date: (1) all the due and payable Rental and other payables on the said date; and (2) the predetermined damages corresponding to the said Rental Payment Date, and the predetermined damages is equal to the total amount of all the outstanding Rental and other payables. In The leasing contract shall be terminated after the event that Lessor received all the aforesaid payments and the Lessee need not continue to pay any Rental under this Contract any more. 21.3 The Lessor and the Lessee shall endeavor to fully cooperate with each other to pursue any and all insurance proceeds or part of other compensations. Any and all proceeds from the Equipment shall, as a result of any cause whatsoever, become lost, stolen, destroyed insurance or otherwise rendered irreparably unusable or damaged other methods (collectively, “Proceeds for the “Total Loss”) then shall be fully paid to the Lessor. If the Lessee shall, within ten (10) days after receives any Proceeds for the Total Loss, fully inform it shall be deemed that the Lessee holds such payments on behalf of the Lessor, and the Lessee shall transfer such payments to the Lessor in writing of such a reasonably shortest time. After the Lessor received all the payments provided in Article 21.2 from the Lessee, Proceeds for the Total Loss and shall pay will be transferred to Lessor the following amounts: (i) Lessee up to the Monthly Lease Charges (and other amounts) due and owing under this Lease Agreement, plus (ii) one-hundred (100%) percent amount of the original cost of the Equipment subject said payment. 21.4 If any repairable damage or detriment occurs to the Loss if the loss occurs in the first nine months of the Initial Term, and, thereafterLease Item, the original cost of Lessee shall immediately repair it. If the Equipment amortized Lessor receives any insurance proceeds for the said damage or detriment, such insurance proceeds shall be used to pay the Lessee’s expenses for repairing the said damage or detriment, however, any delinquent amount owed by the subsequent Monthly Lease Charges received by Lessee to the Lessor during the Initial Term using an amortization rate of eight hundred and ninety (890) basis points over the interest rate of the three (3) year United States Treasury Note as reported by the Federal Reserve on the Commencement Date (collectively, the sum of (i) plus (ii) shall be the “Casualty Loss Value”). Notwithstanding the proceeding, if Lessee has provided notice to terminate the applicable Lease Schedule prior to informing Lessor in writing of a Loss and such Loss is not covered by insurance proceeds pursuant to Section 13 hereof, then Lessee shall pay two (2) times the Casualty Loss Value on the Equipment subject to such Loss. Upon receipt by Lessor of the Casualty Loss Value: (i) the applicable Equipment shall be removed deducted from the Lease Schedule; and (ii) Lessee’s obligation to pay Lease Charges associated with the applicable Equipment shall cease. Lessor may request, and Lessee shall complete, an affidavit(s) that swears out the facts supporting the Loss of any item of Equipmentsaid payment.

Loss and Damage. Lessee shall assume and at all times after signing this Lease bear the entire risk of loss. theft, theft and damage (including any governmental requisition, condemnation or confiscation) to destruction of the Equipment and all component parts thereof equipment from any and every cause whatsoever, whether and no loss, theft, damage or not covered by insurance. No loss destruction of the equipment shall relieve Lessee of the obligation to pay rent or damage to comply with any of the Equipment or any component part thereof shall impair any obligation of Lessee other obligations under this Lease Agreement, which shall continue in full force and effect except as hereinafter expressly provided. Lessee shall repair or cause to be repaired all damage to the EquipmentLease. In the event that all or of damage to any part of the Equipment shallequipment, as a result Lessee shall immediately place the same in good repair at Lessee’s expense. If Lessor determines that any part of any cause whatsoever, become the equipment is lost, stolen, confiscated, destroyed or otherwise rendered irreparably unusable or damaged (collectivelybeyond repair, Lessee shall at lessee’s option, do one of the “Loss”) then Lessee shall, following within ten (10) 10 days after Lessor’s notification: (a) Replace the Loss, fully inform same with like equipment in good repair acceptable to Lessor; or (b) Pay Lessor in writing of such a Loss and shall pay to Lessor cash the following amountsfollowing: (i) the Monthly Lease Charges (and other amounts) all amounts due and owing by Lessee to Lessor under this Lease Agreement, plus accrued and unpaid as of the earlier of the date of final payment of all amounts due herein or the date of entry of judgement in favor of Lessor; (ii) one-hundred the accelerated balance of the total amounts due for the remaining term of this Lease attributable to said item, discounted to present value at a discount rate of nine percent (1009%) percent as of the original cost earlier of the Equipment subject to date of final payment of all amounts due herein or the Loss if the loss occurs date of entry of judgement in the first nine months favor of the Initial Term, and, thereafter, the original cost of the Equipment amortized by the subsequent Monthly Lease Charges received by Lessor during the Initial Term using an amortization rate of eight hundred and ninety (890) basis points over the interest rate of the three (3) year United States Treasury Note as reported by the Federal Reserve on the Commencement Date (collectively, the sum of (i) plus (ii) shall be the “Casualty Loss Value”). Notwithstanding the proceeding, if Lessee has provided notice to terminate the applicable Lease Schedule prior to informing Lessor in writing of a Loss and such Loss is not covered by insurance proceeds pursuant to Section 13 hereof, then Lessee shall pay two (2) times the Casualty Loss Value on the Equipment subject to such Loss. Upon receipt by Lessor of the Casualty Loss Value: (i) the applicable Equipment shall be removed from the Lease ScheduleXxxxxx; and (iiiii) Lesseethe Lessor’s obligation estimate as of the time this Lease was entered into of Lessor’s residual interest in the equipment discounted to pay Lease Charges associated with present value at a discount to the applicable Equipment shall ceasepresent value at a discount rate of nine percent (9%) as of the earlier of the date of final payment of all amounts due herein or the date of entry of judgment in favor of Lessor. Upon Lessor may requestreceipt of payment as set forth above, and Lessee shall completebe entitled to title to the equipment without any warranties. If insurance proceeds are used to fully comply with this paragraph, an affidavit(s) that swears out the facts supporting the Loss balance of any item such proceeds shall go to the Lessee to compensate for loss of Equipmentuse of the equipment for the remaining term of this Lease.

Loss and Damage. Lessee hereby assumes and shall assume and bear the entire risk of loss, damage, theft and damage (including any governmental requisitionor destruction, condemnation partial or confiscation) to complete, whether or not insured against, of the Equipment and all component parts thereof from any and every cause whatsoever, whether or not covered by insurancewhatsoever from the date of delivery of the Equipment to Lessee. No loss loss, damage, theft or damage to destruction of the Equipment or any component part thereof shall impair relieve Lessee of any obligation of Lessee under this Lease Agreementthe respective Lease, which shall continue in full force and effect except as hereinafter expressly providedeffect. In the event of loss or damage of any kind to any item of Equipment, Lessee shall repair promptly notify Lessor of such event and, at Lessor's option, Lessee shall, at its own cost and expense, (i) use all reasonable efforts to place the same in good repair, condition and working order to the satisfaction of Lessor within 30 days of such loss or damage unless Lessor shall determine that such item has been irreparably damaged, in which case Lessor may elect to shorten or terminate said 30-day period, or (ii) replace such Equipment with like equipment in good repair, condition and working order and, upon prior written notice to Lessor, cause such replacement equipment to be repaired all damage delivered to and installed at a location otherwise permitted under the Lease Documents and give clear title thereto by appropriate instrument to Lessor, which replacement equipment shall be subject to the Equipmentterms and conditions of the Lease Documents, including, without limitation, Section 4(b) hereof. In the event Lessee has fully complied to Lessor's reasonable satisfaction with the requirements of the previous sentence, Lessor shall return to Lessee (without interest) the insurance proceeds, if any, paid to Lessor as a result of such loss or damage under the insurance policies required pursuant to Section 12 hereof. In the event that all any item of Equipment shall become subject to a Total Loss, Lessee shall inform the Lessor in writing in regard thereto within thirty (30) days after such Total Loss and Lessee shall pay to Lessor, in cash, an amount equal to the Stipulated Loss Value thereof as the case may be; provided, however, that such amount shall be reduced if and to the extent that Lessor or part of any Transferee has received proceeds from the Equipment shall, insurance required to be maintained by Lessee pursuant to Section 12 as a result of such Total Loss, and Lessor agrees that if such insurance proceeds are paid to Lessor and (A) such proceeds equal or exceed the Stipulated Loss Value payment then due or (B) if Lessee has already paid the Stipulated Loss Value payment then due in full, Lessor shall reimburse Lessee the amount of proceeds thereof in excess of the Stipulated Loss Value payment then paid by Lessee or such insurer, as the case may be. Upon Lessor's reasonable satisfaction that any cause whatsoeverStipulated Loss Value payment or portion thereof shall be paid by an insurer to Lessor, become lost, stolen, destroyed or otherwise rendered irreparably unusable or damaged Lessor shall not require Lessee to pay such amount before sixty (collectively, the “Loss”) then Lessee shall, within ten (1060) days after such Total Loss. Where a single amount for the Loss, fully inform Lessor in writing payment of such a Loss and shall pay to Lessor the following amounts: (i) the Monthly Lease Charges (and other amounts) due and owing under this Lease Agreement, plus (ii) one-hundred (100%) percent of the original cost of the Equipment subject to the Loss if the loss occurs in the first nine months of the Initial Term, and, thereafter, the original cost of the Equipment amortized by the subsequent Monthly Lease Charges received by Lessor during the Initial Term using an amortization rate of eight hundred and ninety (890) basis points over the interest rate of the three (3) year United States Treasury Note as reported by the Federal Reserve Basic Rent is set forth on the Commencement Date (collectively, the sum of (i) plus (ii) shall be the “Casualty Loss Value”). Notwithstanding the proceeding, if Lessee has provided notice to terminate the applicable Lease Schedule prior to informing Lessor in writing of a Loss and such Loss is not covered by insurance proceeds pursuant to Section 13 hereof, then Lessee shall pay two (2) times the Casualty Loss Value on the Equipment subject to such Loss. Upon receipt by Lessor of the Casualty Loss Value: (i) the applicable Equipment shall be removed from the Lease Schedule; and (ii) Lessee’s obligation to pay Lease Charges associated with the applicable Equipment shall cease. Lessor may request, and Lessee shall complete, an affidavit(s) that swears out the facts supporting the Loss of any cover page hereof for more than one item of Equipment, and less than all such items are subject to a Total Loss, such Basic Rent shall be apportioned among such items in accordance with their original list prices, and the Stipulated Loss Value shall be based on such apportioned Basic Rent. Upon such payment of Stipulated Loss Value for any item(s) hereunder, this Lease shall terminate with respect to such items(s) and Basic Rent shall thereafter xxxxx proportionately.

Loss and Damage. Lessee shall assume and bear the risk of loss, theft and damage (including any governmental requisition, condemnation or confiscation) to the Equipment and all component parts thereof from any and every cause whatsoever, whether or not covered by insurance. No loss or damage to the Equipment or any component part thereof shall impair any obligation of Lessee under this Lease Agreement, which shall continue in full force and effect except as hereinafter expressly provided. Lessee shall repair or cause to be repaired all damage to the Equipment. In the event that all or part of the Equipment shall, as a result of any cause whatsoever, become lost, stolen, destroyed or otherwise rendered irreparably unusable or damaged (collectively, the “"Loss”") then Lessee shall, within ten (10) days after the Loss, fully inform Lessor in writing of such a Loss regard thereto and shall pay to Lessor the following amounts: (i) the Monthly Lease Charges (and other amounts) due and owing under this Lease AgreementAgreement at the time of the Loss, plus (ii) one-hundred twelve (100112%) percent of the original cost of the Equipment subject to the Loss if the loss occurs in the first nine months of the Initial Term, and, thereafter, the original cost of the Equipment amortized by the subsequent Monthly Lease Charges received by Lessor during the Initial Term using an amortization rate of eight hundred and ninety (890) 350 basis points over the interest rate of the three (3) year United States Treasury Note as reported by the Federal Reserve THE WALL STREET JOURNAL on the Commencement Date (collectively, the sum of (i) plus (ii) shall be the “"Casualty Loss Value”"). Notwithstanding the proceeding, if Lessee has provided notice to terminate the applicable Lease Schedule prior to informing Lessor in writing of a Loss and such Loss is not covered by insurance proceeds pursuant to Section 13 hereof, then Lessee shall pay two (2) times the Casualty Loss Value on the Equipment subject to such Loss. Upon receipt by Lessor of the Casualty Loss Value: (i) the applicable Equipment shall be removed from the Lease Schedule; and (ii) Lessee’s 's obligation to pay Lease Charges associated with the applicable Equipment shall cease. Lessor may request, and Lessee shall complete, an affidavit(s) that which swears out the facts supporting the Loss of any item of Equipment.

Loss and Damage. Lessee shall assume and bear the hereby assumes all risk of loss, including theft or destruction, and the risk of damage (including any governmental requisition, condemnation or confiscation) to the Equipment and all component parts thereof Equipment, from any and every cause whatsoever, whether or not such loss is covered by insurance. No loss Loss or damage to the Equipment Equipment, or any component part thereof thereof, shall impair not relieve Lessee of any obligation of Lessee under this Lease Agreement, which shall continue in full force and effect except as hereinafter expressly providedLease. Lessee shall repair or cause to be repaired all damage to the Equipment. In the event that all or part of If the Equipment shall, as a result of is damaged or destroyed in an accident or other occurrence or confiscated by any cause whatsoever, become lost, governmental authority or subjected to any lax lien or is stolen, destroyed abandoned or otherwise rendered irreparably unusable or damaged (collectivelysubjected to undue peril, the “Loss”) then Lessee shall, will notify Lessor within ten (10) days after the Loss, fully inform Lessor in writing of such occurrence or condition. If any item of Equipment is damaged and in a Loss condition which Lessor believes may be reasonably repaired, Lessee shall repair the same to good working order. If the Equipment is damaged and in a condition which Lessor believes is beyond reasonable repair, or with respect to any other occurrence or condition set forth above, Lessor may terminate this Lease with respect to that Equipment immediately. If the Lease is terminated, Lessee's termination liability shall be the sum of the following: (1) any Lease payments or other amounts due and owing as of the date of termination; plus (2) the balance of the Lease payments Lessee would have made had the lease gone to full term (less a deduction for the time value of such payments computed in accordance with The simple interest method); plus (3) the Residual Value as set forth in the Schedule(s) (less a deduction for the time value of such payments computed in accordance xxxx the simple interest method); plus (4) an amount equal to one monthly Lease payment; plus (5) any and all commissions, fees or other amounts paid by Lessor as consideration for assignment of this Lease; less the proceeds Lessor receives from the insurance provided by Lessee, if any. Lessee expressly understands and agrees that in the event of a total loss, Lessee's insurance policy may not be sufficient to completely satisfy Lessee's termination liability set forth above, and Lessee agrees that in such event Lessee shall be liable for, and shall pay to Lessor the following amounts: (i) the Monthly Lease Charges (and other amounts) due and owing under this Lease Agreement, plus (ii) one-hundred (100%) percent of the original cost of the Equipment subject to the Loss if the loss occurs in the first nine months of the Initial Term, and, thereafterupon demand therefor, the original cost of the Equipment amortized by the subsequent Monthly Lease Charges received by Lessor during the Initial Term using an amortization rate of eight hundred and ninety (890) basis points over the interest rate of the three (3) year United States Treasury Note as reported by the Federal Reserve on the Commencement Date (collectively, the sum of (i) plus (ii) shall be the “Casualty Loss Value”). Notwithstanding the proceeding, if Lessee has provided notice to terminate the applicable Lease Schedule prior to informing Lessor in writing of a Loss and such Loss is not covered by insurance proceeds pursuant to Section 13 hereof, then Lessee shall pay two (2) times the Casualty Loss Value on the Equipment subject to such Loss. Upon receipt by Lessor of the Casualty Loss Value: (i) the applicable Equipment shall be removed from the Lease Schedule; and (ii) Lessee’s obligation to pay Lease Charges associated with the applicable Equipment shall cease. Lessor may request, and Lessee shall complete, an affidavit(s) that swears out the facts supporting the Loss amount of any item of Equipment.such deficiency. DaimlerChrysler LEASE AGREEMENT Truck Financial TERMS & CONDITIONS (Continued)

Loss and Damage. Lessee hereby assumes and shall assume and bear the entire risk of loss, damage, theft and damage (including any governmental requisitionor destruction, condemnation partial or confiscation) to complete, whether or not insured against, of the Equipment and all component parts thereof from any and every cause whatsoever, whether or not covered by insurancewhatsoever from the date of delivery of the Equipment to Lessee. No loss loss, damage, theft or damage to destruction of the Equipment or any component part thereof shall impair relieve Lessee of any obligation of Lessee under this Lease AgreementLease, which shall continue in full force and effect except as hereinafter expressly provided. Lessee shall repair or cause to be repaired all damage to the Equipmenteffect. In the event that all or part an item of the Equipment shallshall become subject to Total Loss, as a result of any cause whatsoever, become lost, stolen, destroyed or otherwise rendered irreparably unusable or damaged (collectively, the “Loss”) then Lessee shall, shall inform Lessor in writing in regard thereto within ten (10) days after the Loss, fully inform Lessor in writing of such a Total Loss and Lessee shall pay to Lessor the following amounts: (i) the Monthly Lease Charges (and other amounts) due and owing under this Lease AgreementLessor, plus (ii) one-hundred (100%) percent of the original cost of the Equipment subject in cash, an amount equal to the then Stipulated Loss if Value thereof no later than the loss occurs in the first nine months of the Initial Term, and, thereafter, the original cost of the Equipment amortized by the subsequent Monthly Lease Charges received by Lessor during the Initial Term using an amortization rate of eight hundred and ninety (890) basis points over the interest rate of the three (3) year United States Treasury Note as reported by the Federal Reserve on the Commencement Date (collectively, the sum earlier of (i) plus five (5) days after Lessee receives payment for the Total Loss or (ii) within thirty days (30) after Lessee informs Lessor of such Total Loss; provided, however, that such amount shall be reduced if and to the “Casualty Loss Value”). Notwithstanding extent that Lessor or any Transferee has received proceeds from the proceeding, if insurance required to be maintained by Lessee has provided notice to terminate the applicable Lease Schedule prior to informing Lessor in writing of a Loss and such Loss is not covered by insurance proceeds pursuant to Section 13 hereof12 hereof as a result of such Total Loss, then and Lessor agrees that if such insurance proceeds are paid to Lessor after Lessee shall pay two (2) times has paid the Casualty Stipulated Loss Value on in full, Lessor shall within ten (10) days thereafter reimburse to Lessee the Equipment subject proceeds thereof, such reimbursement not to exceed the Stipulated Loss Value amount paid by Lessee related to such Total Loss. Upon receipt by Lessor such payment of the Casualty Stipulated Loss Value: (iValue for any item(s) the applicable Equipment leased hereunder, this Lease shall be removed from the Lease Schedule; terminate with respect to such item(s) and (ii) Lessee’s obligation to pay Lease Charges associated with the applicable Equipment Monthly Rent shall cease. Lessor may request, and Lessee shall complete, an affidavit(s) that swears out the facts supporting the Loss of any item of Equipmentthereafter xxxxx proportionately.

Loss and Damage. Lessee shall assume and bear 11.1. In the risk event of any loss, theft and damage (including any governmental requisition, condemnation or confiscation) to the Equipment and all component parts thereof from any and every cause whatsoever, whether or not covered by insurance. No loss or damage destruction to the Equipment or any component part thereof, or if the Equipment or any part thereof is rendered wholly or partly unfit for use in any way, then, subject as mentioned in Sub-clause 11.3, the Rentals payable under this Agreement shall impair not be abated either in whole or in part, and the Lessee shall not be released from any obligation of its other obligations as to payment or otherwise hereunder. 11.2. If the Equipment is lost, destroyed or irreparably damaged or is declared a constructive, compromised, agreed or arranged total loss from any cause whatsoever (any such occurrence being hereinafter called a "TOTAL LOSS") during the Lease Period, the Lessor and the Lessee shall proceed diligently and co-operate fully with each other in the recovery of any and all proceeds of insurance or compensation applicable thereto. Any and all amounts realized therefrom whether from insurance or otherwise (hereinafter called the "TOTAL LOSS PROCEEDS") shall be paid to the Lessor for application in accordance with Sub-clause 11.4. 11.3. On the earlier of: (a) the date on which the Total Loss Proceeds are received by the Lessor; and (b) the date one (1) month after the occurrence of the Total Loss as determined by the Lessor, the Lessee shall pay to the Lessor an amount equal to the aggregate of all the Rentals, accrued interest thereon and all other sums payable by the Lessee under this Lease AgreementAgreement less the amount of net Total Loss Proceeds (being the gross Total Loss Proceeds less any expenses incurred in connection with the collection of such proceeds and any taxes payable in respect thereof) received by the Lessor by the date 11.4. The Lessor shall apply any Total Loss Proceeds received by it as follows: (a) firstly, which shall continue in full force paying all expenses incurred in connection with the collection of such Total Loss Proceeds and effect except as hereinafter expressly provided. any taxes payable in respect thereof; (b) secondly, in paying all amounts due from the Lessee shall repair or cause hereunder; and (c) thirdly, the balance, if any, up to be repaired all damage an amount equal to the Equipment. In amount paid by the event that all or part of the Equipment shall, as a result of any cause whatsoever, become lost, stolen, destroyed or otherwise rendered irreparably unusable or damaged (collectively, the “Loss”) then Lessee shall, within ten (10) days after the Loss, fully inform Lessor in writing of such a Loss and under Sub-clause 11.3 shall pay to Lessor the following amounts: (i) the Monthly Lease Charges (and other amounts) due and owing under this Lease Agreement, plus (ii) one-hundred (100%) percent of the original cost of the Equipment subject be refunded to the Loss if the loss occurs in the first nine months of the Initial Term, and, thereafter, the original cost of the Equipment amortized by the subsequent Monthly Lease Charges received by Lessor during the Initial Term using an amortization rate of eight hundred and ninety (890) basis points over the interest rate of the three (3) year United States Treasury Note as reported by the Federal Reserve on the Commencement Date (collectively, the sum of (i) plus (ii) shall be the “Casualty Loss Value”). Notwithstanding the proceeding, if Lessee has provided notice to terminate the applicable Lease Schedule prior to informing Lessor in writing of a Loss and such Loss is not covered by insurance proceeds pursuant to Section 13 hereof, then Lessee shall pay two (2) times the Casualty Loss Value on the Equipment subject to such Loss. Upon receipt by Lessor of the Casualty Loss Value: (i) the applicable Equipment shall be removed from the Lease Schedule; and (ii) Lessee’s obligation to pay Lease Charges associated with the applicable Equipment shall cease. Lessor may request, and Lessee shall complete, an affidavit(s) that swears out the facts supporting the Loss of any item of Equipment.

Loss and Damage. Lessee shall assume and bear the assumes all risk of loss, theft (and damage (including any governmental requisition, condemnation or confiscation) to the Equipment and all component parts thereof from any and every cause whatsoever, whether or not covered by insurance. No loss or damage to the Equipment or any component part thereof shall impair any obligation of Lessee under this Lease Agreement, which shall continue in full force and effect except as hereinafter expressly provided. Lessee shall repair or cause to be repaired all damage to the Equipment. In the event that all or part of the Equipment shall, as a result of any cause whatsoever, become lost, stolen, destroyed or otherwise rendered irreparably unusable or damaged (collectively, the “Loss”) then Lessee shall, within ten (10) days after the Loss, fully inform promptly notify Lessor in writing of any occurrence of) any damage to or loss theft, confiscation or destruction of any Equipment from any cause whatsoever (a “Casualty”) from the date shipped or otherwise made available to Lessee and continuing until it is returned to and accepted by Lessor in the condition required by the Lease, including Section 8 of this Agreement If any Equipment suffers a Casualty which Lessee determines is reparable, Lessee shall at its expense promptly place the same in good repair, condition or working order. If any Equipment suffers a casualty which Lessee determines is beyond repair or materially impairs its residual value (a “Total Loss”), Lessee shall at Lessee’s option (unless an Event of Default has occurred and is then continuing, in which case it shall be at Lessor’s option) either (a) promptly replace such Equipment with a Loss and shall pay similar item reasonably acceptable to Lessor having an equivalent value, utility and remaining useful life of such Equipment, whereupon such replacement items shall constitute Equipment for all purposes the Lease, or (b) on the Rent payment xxxx following amounts: such Casualty (ior, if none. within 30 days) pay lessor the Monthly Lease Charges (Stipulated Loss Value for such Equipment, together with all Rent scheduled for payment on such dare, and all accrued interest, late charges and other amounts) amounts then due and owing under this the Lease. Upon such payment following a Total Loss. the Lease Agreement, plus (ii) one-hundred (100%) percent of the original cost of with respect to the Equipment subject to the suffering a Total Loss shall terminate, and Lessor shall transfer all of its right, title and interest in such Equipment, free from all liens and encumbrances created by Lessor, but otherwise on an “AS-IS, WHERE-IS,” quitclaim basis. if the loss occurs in the first nine months of the Initial Termless than all Equipment under a Schedule suffers a Total Loss, and, thereafter, the original cost of the Equipment amortized by the subsequent Monthly Lease Charges received by Lessor during the Initial Term using an amortization rate of eight hundred and ninety (890) basis points over the interest rate of the three (3) year United States Treasury Note as reported by the Federal Reserve on the Commencement Date (collectively, the sum of (i) plus (ii) shall be the “Casualty Loss Value”). Notwithstanding the proceeding, if Lessee has provided notice to terminate the applicable Lease Schedule prior to informing Lessor in writing of a Loss and such Loss is not covered by insurance proceeds pursuant to Section 13 hereof, then Lessee shall pay two (2) times the Casualty i)the Stipulated Loss Value on the Equipment subject with respect to any such Loss. Upon receipt by Lessor item of the Casualty Loss Value: (i) the applicable Equipment shall be removed from calculated by reference to the Lease allocable portion of “Lessor’s Cost” provided in the applicable Schedule; , Rent or other amount related to such item, as reasonably determined by Lessor, and (ii) Lesseethe remaining Rent under the Schedule shall be proportionately reduced as reasonably calculated by Lessor upon Lessor’s obligation to pay Lease Charges associated with receipt of the applicable Equipment shall cease. Lessor may request, and Lessee shall complete, an affidavit(s) that swears out the facts supporting the Loss of any item of Equipmentpayments described above.

Loss and Damage. Lessee shall assume and bear hereby assumes the entire risk of loss, theft and damage (including any governmental requisition, condemnation to or confiscation) to loss of the Equipment and all component parts or any item thereof from any and every cause whatsoever, whether or not covered by insurance. No loss or damage insured against, from and after the date the Equipment is delivered to the Equipment Location until returned to Lessor. No loss, theft, damage or any component part thereof destruction of the Equipment shall impair alter or relieve Lessee of any obligation of Lessee under this Lease AgreementLease, which shall continue in full force and effect except as hereinafter expressly providedeffect. Lessee shall repair or cause agrees to be repaired all give Lessor prompt notice of any damage to or loss of the Equipment. In the event that all or of damage to any part of the Equipment, Lessee shall immediately place the same in good repair at Lessee’s expense. In the event of damage to or loss of the Equipment shallor any item thereof, as a result and irrespective of payment from any cause whatsoeverinsurance coverage maintained by the Lessee, become lostbut applying full credit therefor, stolen, destroyed or otherwise rendered irreparably unusable or damaged (collectively, the “Loss”) then Lessee shall, within ten at the option of Lessor, (10a) days after place the LossEquipment in good repair, fully inform condition and working order or (b) replace the Equipment with identical equipment in good repair, condition and working order and transfer clear title to such replacement equipment to Lessor, whereupon such replacement equipment shall be deemed the Equipment for all purposes hereof, or (c) pay Lessor in writing of such a Loss and shall pay to Lessor cash the following amountsfollowing: (i) the Monthly Lease Charges (and other amounts) all amounts due and owing under by Lessee to Lessor with respect to this Lease Agreement, up to the date of the loss; plus (ii) one-hundred the total amounts due for the remaining term of this Lease attributable to said items; plus (100%iii) percent Lessor’s estimate of the original cost of Lessor’s residual interest in the Equipment subject to the Loss if the loss occurs in the first nine months as of the Initial Term, and, thereafter, the original cost of the Equipment amortized by the subsequent Monthly Lease Charges received by Lessor during the Initial Term using an amortization rate of eight hundred and ninety (890) basis points over the interest rate of the three (3) year United States Treasury Note as reported by the Federal Reserve on the Commencement Date (collectively, the sum of (i) plus (ii) shall be the “Casualty Loss Residual Value”), which will be determined at Lessor’s sole discretion. Notwithstanding the proceedingUpon Lessor’s receipt of such payment, if Lessee has provided notice to this Lease shall terminate the applicable Lease Schedule prior to informing Lessor in writing of a Loss and such Loss is not covered by insurance proceeds pursuant to Section 13 hereof, then Lessee shall pay two (2) times the Casualty Loss Value on the Equipment subject only with respect to such Loss. Upon receipt by Lessor of the Casualty Loss Value: (i) the applicable Equipment shall be removed from the Master Lease Schedule; and (ii) Lessee’s obligation to pay Lease Charges associated with the applicable Equipment shall cease. Lessor may requestAgreement Rev. 08-04-2017 so paid for, and Lessee shall completebecome entitled to title thereto, an affidavit(s) AS IS, WHERE IS, and without any warranty whatsoever, express or implied. Proceeds of insurance shall be paid to Lessor with respect to such repairable damage to the Equipment and shall, at the election of Lessor, be applied either to the repair of the Equipment by payment by Lessor directly to the party completing the repairs, or to the reimbursement of Lessee for the cost of such repairs; provided, however, that swears out Lessor shall have no obligation to make such payment or any part thereof until receipt of such evidence as Lessor shall deem satisfactory that such repairs have been completed and further provided that Lessor may apply such proceeds to the facts supporting the Loss payment of any item rent or other sum due or to become due hereunder if at the time such proceeds are received by Lessor there shall have occurred any Event of EquipmentDefault or any event which with lapse of time or notice, or both, would become and Event of Default.

Loss and Damage. Lessee shall assume and bear the assumes all risk of loss, theft (and damage (including any governmental requisition, condemnation or confiscation) to the Equipment and all component parts thereof from any and every cause whatsoever, whether or not covered by insurance. No loss or damage to the Equipment or any component part thereof shall impair any obligation of Lessee under this Lease Agreement, which shall continue in full force and effect except as hereinafter expressly provided. Lessee shall repair or cause to be repaired all damage to the Equipment. In the event that all or part of the Equipment shall, as a result of any cause whatsoever, become lost, stolen, destroyed or otherwise rendered irreparably unusable or damaged (collectively, the “Loss”) then Lessee shall, within ten (10) days after the Loss, fully inform promptly notify Lessor in writing of any occurrence of) any damage to or loss, theft, confiscation or destruction of any Equipment from any cause whatsoever (a “Casualty”) from the date shipped or otherwise made available to Lessee and continuing until it is returned to and accepted by Lessor in the condition required by the Lease, including Section 8 of this Agreement. If any Equipment suffers a Casualty which Lessor determines is reparable, Lessee shall at its expense promptly place the same in good repair, condition or working order. If any Equipment suffers a Casualty which Lessor determines is beyond repair or materially impairs its residual value (a “Total Loss”), Lessee shall at Lessee’s option (unless an Event of Default has occurred and is then continuing, in which case it shall be at Lessor’s option) either (a) promptly replace such Equipment with a Loss and shall pay similar item reasonably acceptable to Lessor having an equivalent value, utility and remaining useful life of such Equipment, whereupon such replacement items shall constitute Equipment for all purposes the Lease, or (b) on the next Rent payment date occurring at least 30 days following amounts: such Casualty (or, if none, within 30 days) pay Lessor the Stipulated Loss Value for such Equipment, together with all Rent scheduled for payment on such date, and all accrued interest, late charges and other amounts then due and owing under the Lease. Upon such payment following a Total Loss, the Lease with respect to the Equipment suffering a Total Loss shall terminate, and Lessor shall transfer to the Lessee all of its right, title and interest in such Equipment, free from all liens and encumbrances created by Lessor, but otherwise on an “AS-IS, WHERE-IS,” quitclaim basis. If less than all Equipment under a Schedule suffers a Total Loss, (i) the Monthly Lease Charges (and other amounts) due and owing under this Lease Agreement, plus (ii) one-hundred (100%) percent of the original cost of the Equipment subject to the Loss if the loss occurs in the first nine months of the Initial Term, and, thereafter, the original cost of the Equipment amortized by the subsequent Monthly Lease Charges received by Lessor during the Initial Term using an amortization rate of eight hundred and ninety (890) basis points over the interest rate of the three (3) year United States Treasury Note as reported by the Federal Reserve on the Commencement Date (collectively, the sum of (i) plus (ii) shall be the “Casualty Loss Value”). Notwithstanding the proceeding, if Lessee has provided notice to terminate the applicable Lease Schedule prior to informing Lessor in writing of a Loss and such Loss is not covered by insurance proceeds pursuant to Section 13 hereof, then Lessee shall pay two (2) times the Casualty Stipulated Loss Value on the Equipment subject with respect to any such Loss. Upon receipt by Lessor item of the Casualty Loss Value: (i) the applicable Equipment shall be removed from calculated by reference to the Lease allocable portion of “Lessor’s Cost” provided in the applicable Schedule; , Rent or other amount related to such item, as reasonably determined by Lessor, and (ii) Lesseethe remaining Rent under the Schedule shall be proportionately reduced as reasonably calculated by Lessor upon Lessor’s obligation to pay Lease Charges associated with receipt of the applicable Equipment shall cease. Lessor may request, and Lessee shall complete, an affidavit(s) that swears out the facts supporting the Loss of any item of Equipmentpayments described above.

Loss and Damage. Lessee shall assume and bear the risk of loss, theft and damage (including any governmental requisition, condemnation or confiscation) to the Equipment and all component parts thereof from any and every cause whatsoever, whether or not covered by insurance. No loss or damage to the Equipment or any component part thereof shall impair any obligation of Lessee under this Lease AgreementAGREEMENT, which shall continue in full force and effect except as hereinafter expressly provided. Lessee shall repair or cause to be repaired all damage to the Equipment. In the event that all or part of the Equipment shall, as a result of any cause whatsoever, become lost, stolen, destroyed or otherwise rendered irreparably unusable or damaged (collectively, the “Loss”) then Lessee shall, within ten (10) days after the Loss, fully inform Lessor in writing of such a Loss and shall pay to Lessor the following amounts: (i) the Monthly Lease Charges (and other amounts) due and owing under this Lease AgreementAGREEMENT at the time of the Loss (or Event of Default, as defined hereinafter), plus (ii) one-hundred (100%) percent of the original cost Original Cost of the Equipment subject to the Loss if the loss occurs in the first nine months (or Event of the Initial TermDefault, and, thereafter, the original cost of the Equipment amortized as defined hereinafter) multiplied by the subsequent Monthly Lease Charges “Percent of Original Cost.” The Original Cost of a particular item of Equipment shall be Lessee’s original purchase price of such item at the time of its purchase or payment to the applicable vendor by Lessor, plus additional or related charges such as taxes, delivery and freight, installation, maintenance, etc. The Percent of Original Cost shall be the Per Payment Factor multiplied by the number of lease payments Lessor has received by Lessor from Lessee during the Initial Term using an amortization rate subtracted from 112 and then divided by 100. The Per Payment Factor is the sum of eight hundred and ninety (890) basis points over the interest rate of the three (3) year United States Treasury Note as reported 112 multiplied by 0.8 divided by the Federal Reserve on number of Monthly Lease Charges that are due during the Commencement Date Initial Term (collectively, the sum of (i) plus (ii) shall be the “Casualty Loss Value”). Notwithstanding the proceeding, if Lessee has provided notice to terminate the applicable Lease Schedule prior to informing Lessor in writing of a Loss and such Loss is not covered by insurance proceeds pursuant to Section 13 hereof, then Lessee shall pay two (2) times the Casualty Loss Value on the Equipment subject to such Loss. Upon receipt by Lessor of the Casualty Loss Value: (i) the applicable Equipment shall be removed from the Lease Schedule; and (ii) Lessee’s obligation to pay Lease Charges associated with the applicable Equipment shall cease. Lessor may request, and Lessee shall complete, an affidavit(s) that which swears out the facts supporting the Loss of any item of Equipment.

Loss and Damage. Lessee shall assume and bear the risk of loss, theft and damage (including any governmental requisition, condemnation or confiscation) to the Equipment and all component parts thereof from any and every cause whatsoever, whether or not covered by insurance. No loss or damage to the Equipment or any component part thereof shall impair any obligation of Lessee under this Lease Agreement, which shall continue in full force and effect except as hereinafter expressly provided. Lessee shall repair or cause to be repaired all damage to the Equipment. In the event that all or part of the Equipment shall, as a result of any cause whatsoever, become lost, stolen, destroyed or otherwise rendered irreparably unusable or damaged (collectively, the “Loss”) then Lessee shall, within ten (10) days after the Loss, fully inform Lessor in writing of such a Loss and shall pay to Lessor the following amounts: (i) the Monthly Lease Charges (and other amounts) due and owing under this Lease AgreementAgreement at the time of the Loss (or Event of Default, as defined hereinafter), plus (ii) one-hundred (100%) percent of the original cost Original Cost of the Equipment subject to the Loss if the loss occurs in the first nine months (or Event of the Initial TermDefault, and, thereafter, the original cost of the Equipment amortized as defined hereinafter) multiplied by the subsequent Monthly Lease Charges “Percent of Original Cost.” The Original Cost of a particular item of Equipment shall be Lessee’s original purchase price of such item at the time of its purchase or payment to the applicable vendor by Lessor, plus additional or related charges such as taxes, delivery and freight, installation, maintenance, etc. The Percent of Original Cost shall be the Per Payment Factor multiplied by the number of lease payments Lessor has received by Lessor from Lessee during the Initial Term using an amortization rate subtracted from 112 and then divided by 100. The Per Payment Factor is the sum of eight hundred and ninety (890) basis points over the interest rate of the three (3) year United States Treasury Note as reported 112 multiplied by 0.8 divided by the Federal Reserve on number of Monthly Lease Charges that are due during the Commencement Date Initial Term (collectively, the sum of (i) plus (ii) shall be the “Casualty Loss Value”). Notwithstanding the proceeding, if Lessee has provided notice to terminate the applicable Lease Schedule prior to informing Lessor in writing of a Loss and such Loss is not covered by insurance proceeds pursuant to Section 13 hereof, then Lessee shall pay two (2) times the Casualty Loss Value on the Equipment subject to such Loss. Upon receipt by Lessor of the Casualty Loss Value: (i) the applicable Equipment shall be removed from the Lease Schedule; and (ii) Lessee’s obligation to pay Lease Charges associated with the applicable Equipment shall cease. Lessor may request, and Lessee shall complete, an affidavit(s) that which swears out the facts supporting the Loss of any item of Equipment.

Loss and Damage. (a) At all times, Lessee shall assume and bear the risk of loss, theft and theft, confiscation, taking, unavailability, damage (including any governmental requisition, condemnation or confiscation) to partial destruction of the Equipment and all component parts thereof shall not be released from its obligations under any and every cause whatsoever, whether Schedule or not covered by insurance. No loss or damage other Lease Document in any such event. (b) Lessee shall provide prompt written notice to the Equipment Lessor of any Total Loss or any component part thereof shall impair any obligation of Lessee under this Lease Agreement, which shall continue in full force and effect except as hereinafter expressly provided. Lessee shall repair or cause to be repaired all material damage to the Equipment. In Any such notice must be provided together with any damage reports provided to any governmental authority, the event that insurer or Supplier, and any documents pertaining to the repair of such damage, including copies of work orders, and all invoices for related charges. (c) Without limiting any other provision hereof, Lessee shall repair all damage to any item of Equipment from any and all causes, other than a Total Loss, so as to cause it to be in the condition and repair required by this Lease. (d) A “Total Loss” shall be deemed to have occurred to an item of Equipment upon the actual or part constructive total loss of any item of the Equipment, the loss, disappearance, theft or destruction of any item of the Equipment, or damage to any item of the Equipment shallthat is uneconomical to repair or renders it unfit for normal use, as a result or the condemnation, confiscation, requisition, seizure, forfeiture or other taking of title to or use of any cause whatsoeveritem of the Equipment or the imposition of any Lien thereon by any governmental authority. On the next rent payment date following a Total Loss (a “Loss Payment Date”), become lost, stolen, destroyed or otherwise rendered irreparably unusable or damaged (collectively, the “Loss”) then Lessee shall, within ten (10) days after the Loss, fully inform Lessor in writing of such a Loss and shall pay to Lessor the following amounts: Basic Rent due on that date plus the Stipulated Loss Value of the item or items of the Equipment with respect to which the Total Loss has occurred (the “Lost Equipment”), together with any Other Payments due hereunder with respect to the Lost Equipment. Upon making such payment, (i) Lessee's obligation to pay future Basic Rent shall terminate solely with respect to the items of Lost Equipment so paid for, but Lessee shall remain liable for, and pay as and when due, all Other Payments, and (ii) Lessor shall convey to Lessee all of Lessor's right, title and interest in the Lost Equipment “AS IS WHERE IS”, but subject to the requirements of any third party insurance carrier in order to settle an insurance claim. As used in this Lease, “Stipulated Loss Value” shall mean, with respect to any Equipment on a Schedule, as of the Loss Payment Date, the product of (i) the Monthly Lease Charges (sum of any accrued and other amounts) due and owing under this Lease Agreementunpaid Rent, plus (ii) one-hundred (100%) percent the present value as of such date of the original cost total Basic Rent for the then remaining term of such Schedule, plus the present value of the Equipment subject Other Payments (other than Basic Rent) to become due during the Loss if the loss occurs in the first nine months balance of the Initial Term, and, thereafter, the original cost term of the applicable Schedule, including amounts such as future taxes and the end of term purchase amount in each Equipment amortized by the subsequent Monthly Lease Charges received by Lessor during the Initial Term using an amortization rate of eight hundred and ninety (890) basis points over the interest rate of the three (3) year United States Treasury Note as reported by the Federal Reserve on the Commencement Date (collectively, the sum of (i) plus (ii) shall be the “Casualty Loss Value”). Notwithstanding the proceeding, if Lessee has provided notice to terminate the applicable Lease Schedule prior to informing Lessor in writing of a Loss and such Loss is not covered by insurance proceeds pursuant to Section 13 hereof, then Lessee shall pay two (2) times the Casualty Loss Value on the Equipment subject to such Loss. Upon receipt by Lessor of the Casualty Loss Value: (i) the applicable Equipment shall be removed from the Lease Schedule; and (ii) Lessee’s obligation the percentage of the Total Invoice Cost of the Lost Equipment divided by the Total Invoice Cost applicable to pay Lease Charges associated with such Schedule. After the final rent payment date of the original term or any renewal term of a Schedule, the Stipulated Loss Value shall be determined as of the last rent payment date during the applicable Equipment term of such Schedule. (e) Lessor shall cease. Lessor may request, and be under no duty to Lessee shall complete, an affidavit(s) that swears out the facts supporting the to pursue any claim against any person in connection with a Total Loss of any item of Equipmentor other loss or damage.

Loss and Damage. Lessee shall Lessees assume and bear the risk of loss, theft direct and consequential loss and damage (including any governmental requisition, condemnation or confiscation) to the Equipment from all causes. Except as provided in this Section for discharge upon payment of Stipulated Loss Value and all component parts thereof from any and every cause whatsoeverthe other specified amounts, whether or not covered by insurance. No no loss or damage to the Equipment or any component part thereof shall release or impair any obligation obligations of Lessee Lessees under this Lease AgreementLease. Lessees agree that Lessor shall not incur any liability to any Lessee for any loss of business, which loss of profits, expenses, or any other Claims resulting to any Lessee by reason of any failure of or delay in delivery or any delay caused by any non-performance, defective performance, or breakdown of the Equipment, nor shall continue in full force and effect except as hereinafter expressly provided. Lessee shall repair Lessor at any time be responsible for personal injury or cause to be repaired all damage to the loss or destruction of any other property resulting from the Equipment. In the event that all of loss or part damage to any item of Equipment which does not constitute a Total Loss (as hereinafter defined), Lessees shall, at their sole cost and expense, promptly repair and restore such item of the Equipment shallto the condition required by this Lease. Provided that no default or Default has occurred and is continuing, upon receipt of evidence reasonably satisfactory to Lessor of completion of such repairs, Lessor will apply any net insurance proceeds received by Lessor on account of such loss to the cost of repairs. Upon the occurrence of the actual or constructive total loss of any item of the Equipment, or the loss, disappearance, theft or destruction of any item of the Equipment or damage to any item of the Equipment to such extent as shall make repair thereof uneconomical or shall render any item of the Equipment permanently unfit for normal use for any reason whatsoever, or the condemnation, confiscation, requisition, seizure, forfeiture or other taking of title to or use of any item of the Equipment (as established to the reasonable satisfaction of Lessor; any such occurrence being herein referred to as a result "Total Loss"), during the term of any cause whatsoeverthis Lease, become lost, stolen, destroyed or otherwise rendered irreparably unusable or damaged Lessees shall give prompt notice thereof to Lessor. Within fifteen (collectively, the “Loss”) then Lessee shall, within ten (1015) days after the Total Loss, fully inform Lessees shall give Lessor in writing written notice of its election (it being understood that if Lessees fail to give such notice of election within fifteen (15) days after the occurrence of such a Loss Total Loss, Lessees shall be deemed to have elected to perform the option set forth in clause (a) below) to either make payment to Lessor or, so long as no default or Default shall have occurred and be continuing, to substitute Equipment, as provided, respectively, in alternatives (a) and (b) below: (a) On the next date for or the payment of rent, Lessees shall pay to Lessor the following amounts: (i) rent due on that date plus the Monthly Lease Charges (and other amounts) due and owing under this Lease Agreement, plus (ii) one-hundred (100%) percent Stipulated Loss Value of the original cost item or items of the Equipment subject with respect to which the Total Loss has occurred ("Destroyed Equipment") and any other sums due hereunder with respect to that Destroyed Equipment (less any insurance proceeds or condemnation award actually paid). Upon making such payment, this Lease and the obligation to make future rental payments shall terminate solely with respect to the Destroyed Equipment so paid for and (to the extent applicable) Lessees shall become entitled thereto "AS IS WHERE IS" without warranty, express or implied, with respect to any matter whatsoever. Lessor shall deliver to Lessees a xxxx of sale transferring and assigning to Lessees without recourse or warranty, all of Lessor's right, title and interest in and to the Destroyed Equipment. Lessor shall not be required to make and may specifically disclaim any representation or warranty as to the condition of the Destroyed Equipment or any other matters. As used in this Lease, "Stipulated Loss if Value" shall mean the loss occurs product of the "Equipment Cost" (as defined in the first nine months Equipment Schedule) of the Initial Termapplicable Equipment and the applicable percentage factor set forth on the Schedule of Stipulated Loss Values attached to the applicable Equipment Schedule. Stipulated Loss Value shall be determined as of the next date on which a payment of rent is or would be due after a Total Loss or other termination of the Lease as to an item of Equipment, andafter payment of any rent due on such date, thereafter, and the applicable percentage factor shall be that which is set forth with respect to such rent payment. After payment of the final payment of rent due under the original cost term of this Lease and during any renewal term thereof, Stipulated Loss Value shall be determined as of the Equipment amortized by the subsequent Monthly date of termination of this Lease Charges received by Lessor (absent any renewal thereof) or, if during the Initial Term using an amortization rate of eight hundred and ninety (890) basis points over the interest rate of the three (3) year United States Treasury Note as reported by the Federal Reserve a renewal term, on the Commencement Date (collectivelynext date on which a payment of rent is or would be due after a Total Loss or other termination of such renewal term, after payment of any rent due on such date, and the sum of (i) plus (ii) applicable percentage factor shall be the “Casualty last percentage factor set forth on the Schedule of Stipulated Loss Value”)Values attached to the Equipment Schedule. Notwithstanding Following payment of the proceedingsums due pursuant to this clause (a) by the Lessees, if Lessee the Lessor shall, provided that no default or Default has provided notice occurred and is continuing, remit to terminate the applicable Lease Schedule prior to informing Lessor in writing of a Loss Lessees any and such Loss is not covered by all insurance proceeds pursuant to Section 13 hereof, then Lessee shall pay two (2) times received by the Casualty Loss Value on the Equipment subject to Lessor for such Loss. Upon receipt by Lessor items of the Casualty Loss Value: (i) the applicable Equipment shall be removed from the Lease Schedule; and (ii) Lessee’s obligation to pay Lease Charges associated with the applicable Equipment shall cease. Lessor may request, and Lessee shall complete, an affidavit(s) that swears out the facts supporting the Loss of any item of Destroyed Equipment.