forth above plus any applicable sales and use tax thereon beginning on the Rent Commencement Date and continuing on the same day
of each subsequent month during the Initial Term. If the actual cost of the Equipment is more or less than the Total Cost as shown
above, the amount of each installment of rent will be adjusted up or down to provide the same yield to Lessor as would have been
obtained if the actual cost had been the same as the Total Cost.
Lessee is obligated only to pay basic rental payments and other amounts due under this Lease as may lawfully be made from funds
budgeted and appropriated for that purpose. Should Lessee fail to budget, appropriate or otherwise make available funds to pay the
basic rental payments and other amounts due under this Lease for any fiscal period during the Term of this Lease (an “Event of Non-
Appropriation”), this Lease shall be deemed terminated at the end of Lessee’s then current fiscal period. Lessee agrees to deliver notice
to Lessor immediately (and in no case later than 30 days prior to the end of Lessee’s then current fiscal period) of the occurrence of an
Event of Non-Appropriation under this Lease. If an Event of Non-Appropriation occurs with respect to this Lease, Lessee shall return the
Equipment in accordance with paragraph 11. Lessee currently intends, subject to this paragraph, to pay all basic rental payments for
the Initial Term of the Lease, and reasonably believes that legally available funds in an amount sufficient to pay all basic rental
payments and other amounts due during the Initial Term of this Lease can be obtained. Lessee currently intends to do all things
lawfully within its power to obtain and maintain legally available funds from which the basic rental payments and other amounts due
under this Lease may be paid, including making provision for such payments to the extent necessary in each budget or appropriation
request submitted and adopted in accordance with applicable provisions of law. Notwithstanding anything herein to the contrary, the
decision whether or not to budget and appropriate funds and continue the term of this Lease is within the discretion of the governing
body of Lessee.
Lessor and Lessee understand and intend that the obligation of Lessee to pay basic rental payments under this Lease shall constitute a
current expense of Lessee and shall not in any way be construed to be a debt of Lessee in contravention of any applicable constitutional
or statutory limitations or requirements concerning the creation of indebtedness by Lessee, nor shall anything contained herein
constitute a pledge of the general tax revenues, funds or monies of Lessee.
If any payment, whether for rent or otherwise, is not paid within ten (10) days of when due, Lessor may impose a late charge of 5% of
the amount past due (or the maximum amount permitted by applicable law if less). Payments thereafter received shall be applied first
to delinquent installments and then to current installments.
3. SECURITY DEPOSIT. Upon execution of this Lease, Lessee shall pay to Lessor the Security Deposit, if any, set forth above.
Lessor may apply any security deposit toward any obligation of Lessee, and shall return any unapplied balance to Lessee without
interest upon full satisfaction of Lessee's obligations.
4. NO WARRANTIES. Lessee agrees that it has selected each item of Equipment based upon its own judgment and disclaims any
reliance upon any statements or representations made by Lessor. LESSEE ACKNOWLEDGES THAT: LESSOR IS NOT THE
MANUFACTURER OF THE EQUIPMENT NOR THE MANUFACTURER'S AGENT NOR A DEALER THEREIN; THE EQUIPMENT IS OF A SIZE,
DESIGN, CAPACITY, DESCRIPTION AND MANUFACTURE SELECTED BY LESSEE; LESSEE IS SATISFIED THAT THE EQUIPMENT IS
SUITABLE AND FIT FOR ITS PURPOSES; AND LESSOR HAS NOT MADE AND DOES NOT MAKE ANY WARRANTY WITH RESPECT TO THE
EQUIPMENT, EXPRESS OR IMPLIED AND LESSOR SPECIFICALLY DISCLAIMS ANY WARRANTY OF MERCHANTABILITY OR OF FITNESS
FOR A PARTICULAR PURPOSE, OR AS TO THE QUALITY, CONDITION OR CAPACITY OF THE EQUIPMENT OR THE MATERIALS IN THE
EQUIPMENT OR WORKMANSHIP OF THE EQUIPMENT, LESSOR'S TITLE TO THE EQUIPMENT, OR ANY OTHER REPRESENTATION OR
WARRANTY WHATSOEVER. LESSOR SHALL NOT BE LIABLE TO LESSEE FOR ANY LOSS, DAMAGE, OR EXPENSE OF ANY KIND OR
NATURE CAUSED, DIRECTLY OR INDIRECTLY, BY ANY EQUIPMENT OR THE USE OR MAINTENANCE THEREOF OR THE FAILURE OR
OPERATION THEREOF, OR THE REPAIR, SERVICE OR ADJUSTMENT THEREOF, OR BY ANY DELAY OR FAILURE TO PROVIDE ANY SUCH
MAINTENANCE, REPAIRS, SERVICE OR ADJUSTMENT, OR BY AN INTERRUPTION OF SERVICE OR LOSS OF USE THEREOF OR FOR ANY
LOSS OF BUSINESS HOWSOEVER CAUSED. LESSOR SHALL NOT BE LIABLE FOR DAMAGES OF ANY KIND INCLUDING ANY LIABILITY
FOR CONSEQUENTIAL DAMAGES ARISING OUT OF THE USE OF OR THE INABILITY TO USE THE EQUIPMENT. No defect or unfitness of
the Equipment, and no failure on the part of the manufacturer or the shipper of the Equipment to deliver the Equipment or any part
thereof to Lessee shall relieve Lessee of the obligation to pay rent or any other obligation hereunder. Lessor shall have no obligation in
respect of the Equipment and shall have no obligation to install, erect, test, adjust or service the Equipment. Lessee shall only look to
persons other than Lessor such as the manufacturer, vendor or carrier thereof should any item of Equipment for any reason and in any
way be defective. To the extent permitted by the manufacturer and/or vendor and provided Lessee is not in default under the Lease,
Lessor shall make available to Lessee all manufacturer and/or vendor warranties with respect to the Equipment.
5. TAXES. Unless Lessee has provided Lessor with evidence necessary to sustain an exemption therefrom, Lessee shall promptly pay
when due all sales, use, property, excise and other taxes and all license and registration fees now or hereafter imposed by any
governmental body or agency upon the Equipment or its use, purchase, ownership, delivery, leasing, possession, storage, operation,
maintenance, repair, return or other disposition of the Equipment, or for titling or registering the Equipment, or upon the income or
other proceeds received with respect to the Equipment or Lease or the rentals hereunder; provided, however, that Lessee shall not be
required to pay taxes on or measured by the net income of Lessor. Upon request by Lessor, Lessee shall prepare and file all tax returns
relating to taxes for which Lessee is responsible hereunder which Lessee is permitted to file under the laws of the applicable taxing
jurisdiction. Upon the expiration or earlier termination of the Lease, Lessee shall pay to Lessor any such taxes accrued or assessed but
not yet due and payable.
6. INDEMNITY. To the extent permitted by applicable law and subject to the provisions of paragraph 2 hereof, Lessee hereby agrees
to indemnify and hold Lessor harmless (on an after-tax basis) from and against any and all claims, losses, liabilities (including
negligence, tort and strict liability), damages, judgments, obligations, actions, suits and all legal proceedings, and any and all costs and
expenses in connection therewith (including attorneys' fees) arising out or in any manner connected with, or resulting directly or
indirectly from, the Equipment, including, without limitation, the manufacture, purchase, lease, financing, selection, ownership, delivery,
rejection, non-delivery, transportation, possession, use, storage, operation, condition, maintenance, repair, return or other disposition of
the Equipment or with this Lease, including without limitation, claims for injury to or death of persons and for damage to property,
whether arising under the doctrine of strict liability, by operation of law or otherwise, and to give Lessor prompt notice of any such claim
or liability, excluding any such Claims arising out of Lessor’s gross negligence or willful misconduct.