Common use of SURRENDER OF EQUIPMENT Clause in Contracts

SURRENDER OF EQUIPMENT. Whenever Lessee is required or permitted to return Equipment, Lessee will (or, at Lessor’s request, Lessee will have the Manufacturer or another party acceptable to Lessor), at Lessee’s expense, deinstall, inspect, and properly pack the Equipment, and return the Equipment to Lessor by such common carrier as Lessor may specify, to a destination within the continental United States of America specified by Lessor, accompanied by the relocation inventory or similar form completed by the deinstaller. However, if the return destination is more than 1,000 miles from the original or final Equipment Location (whichever is closer to the return destination), Lessee’s freight expense in returning the Equipment shall be limited to the amount that would be incurred if the return destination were within such a distance. Lessor is not required to accept any return of Equipment more than one month before the end of the Term. Any return of Equipment accepted by Lessor releases Lessee of its leasehold rights and possessory interest in the Equipment, but will not otherwise constitute a termination of the Term or this Lease or Lessee’s related obligations. When received by Lessor, the Equipment shall be in good working order, cosmetically good, and in the same condition as when shipped to Lessee, reasonable wear and tear excepted, and, except for personal computers, at the Manufacturer’s minimum acceptable and current engineering level, and certified by the Manufacturer as eligible for the Manufacturer’s generally available maintenance contract at then prevailing rates without the need for Lessor to incur any repair, rehabilitation, or certification expense (‘Maintenance Certified’). Lessee will be liable to Lessor for all expenses Lessor incurs or would incur in placing the Equipment in the condition required by this Lease (whether or not Lessor actually does place the Equipment in such condition), up to the Fair Market Value of the Equipment. Any additions to the Equipment not removed before return shall become Lessor’s exclusive property (lien free) or, at Lessor’s option and Lessee’s expense, removed and returned to Lessee or sold, destroyed, or otherwise disposed of, all without liability to Lessee, and the Equipment restored to its original condition. For personal computers, Lessee shall have the option, when returning Equipment at or after the end of the Base Term, in lieu of any complete system of original Equipment it would otherwise be required to return (‘Original Equipment’), of returning a comparable complete system of substitute equipment, which: is owned by Lessee free of encumbrances; was acquired by Lessee in the ordinary course of business and not for purposes of being substitute equipment under this Lease; is of the same model, manufacturer, configuration, and value (as determined by Lessor) as the Original Equipment; and is in the condition required by this Lease for the return of Original Equipment (‘Substitute Equipment’). In order to exercise this option, Lessee must in the Exercise Notice given under Section 6 state that it is returning Substitute Equipment and identify (by equipment type and serial number) both the Substitute Equipment being returned and the Original Equipment being substituted for. Upon the return by Lessee of any equipment as Substitute Equipment under this Lease, Lessee represents and warrants that: Lessor shall have good and marketable title to the Substitute Equipment, free of encumbrances; and such equipment shall satisfy the requirements of being Substitute Equipment under this Lease. Upon the return of Substitute Equipment in compliance with the terms of this paragraph. Lessee shall be entitled to Lessor’s interest in the Original Equipment.

SURRENDER OF EQUIPMENT. Whenever Upon the date of expiration or final ---------------------- termination of the lease as to any Unit, and provided Lessee is required shall have not exercised its right to purchase the Equipment or permitted extend the Lease Term for the Equipment under Section 17 hereof with respect to return Equipmentsuch Unit, Lessee will (orshall, at Lessor’s request, Lessee will have the Manufacturer or another party acceptable to Lessor), at Lessee’s its own cost and expense, deinstall, inspect, and properly pack the Equipment, and return the deliver possession of such Unit of Equipment to Lessor in accordance with the provisions of Subsection 7(c) hereof and this Section 12. Within ninety (90) days prior to such expiration or final termination, the Lessee will permit the Lessor or any person designated by it, including the authorized representative or representatives of any prospective purchaser of any such common carrier as Lessor may specifyUnit of Equipment, to a destination within inspect the continental United States same. All movement, inspection and storage of America specified by Lessor, accompanied by the relocation inventory or similar form completed by the deinstaller. However, if the return destination is more than 1,000 miles from the original or final Equipment Location (whichever is closer to the return destination), Lessee’s freight expense in returning the Equipment shall be limited to the amount that would be incurred if the return destination were within each such a distance. Lessor is not required to accept any return Unit of Equipment more than one month before is to be at the end risk and expense of the TermLessee. Any return of Equipment accepted by Lessor releases Lessee of its leasehold rights and possessory interest in the Equipment, but will not otherwise constitute a termination of the Term or this Lease or Lessee’s related obligations. When received by LessorUpon redelivery, the Equipment shall be in good repair, condition and working order, cosmetically good, order and in the same condition as when shipped to Lesseerequired by the terms and provisions of this Equipment Leasing Agreement including, reasonable wear and tear exceptedbut not limited to, and, except for personal computers, at the Manufacturer’s minimum acceptable and current engineering levelSection 7 hereof, and certified by the Manufacturer as eligible for the Manufacturer’s generally available maintenance contract at then prevailing rates without the need for Lessor to incur will be free of all liens or encumbrances of any repair, rehabilitation, or certification expense (‘Maintenance Certified’)nature whatsoever excluding Permitted Liens. Lessee will be liable shall have the obligation to Lessor for all expenses Lessor incurs or would incur restore any such Unit which is not in placing compliance with the provisions of this Equipment in Leasing Agreement to the condition required by this Lease (whether or such provisions before Lessor shall be required to accept redelivery thereof. In the event that any Unit is not Lessor actually does place the Equipment in such condition), up to the Fair Market Value of the Equipment. Any additions to the Equipment not removed before return shall become accepted for redelivery by Lessor’s exclusive property (lien free) or, at Lessor’s option and Lessee’s expense, removed and returned to Lessee or sold, destroyed, or otherwise disposed ofany person designated by it, all without liability to Lessee, and on the Equipment restored to its original condition. For personal computersdate required herein, Lessee shall have the option, when returning Equipment at or after the end of the Base Term, in lieu of any complete system of original Equipment it would otherwise be required to return (‘Original Equipment’), of returning pay Lessor Redelivery Rent for such Unit on a comparable complete system of substitute equipment, which: is owned by Lessee free of encumbrances; was acquired by Lessee in the ordinary course of business and not monthly basis until accepted for purposes of being substitute equipment under this Lease; is of the same model, manufacturer, configuration, and value (as determined redelivery by Lessor, but in no event shall such redelivery period exceed six (6) as months. Upon the Original Equipment; and is expiration of such six (6) month period, if such Equipment has not been delivered to Lessor in the condition and repair required by this Lease for the return of Original Equipment (‘Substitute Equipment’). In order to exercise this optionherein, Lessee must in the Exercise Notice given under Section 6 state that it is returning Substitute Equipment and identify (by equipment type and serial number) both the Substitute Equipment being returned and the Original Equipment being substituted for. Upon the return by Lessee of any equipment as Substitute Equipment under this Lease, Lessee represents and warrants that: Lessor shall have good and marketable title to the Substitute Equipment, free of encumbrances; and such equipment shall satisfy the requirements of being Substitute Equipment under this Lease. Upon the return of Substitute Equipment in compliance with the terms of this paragraph. Lessee shall be entitled to Lessor’s interest in the Original Equipmentdefault hereunder.