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• use, condition (including, but not limited to, latent and other defects and whether or not
<br /> discoverable by Lessee or Lessor), operation, ownership, leasing or return, regardless of where,
<br /> how and by whom operated, or any failure on the part of Lessee to perform or comply with any
<br /> conditions of this Agreement. Lessee's obligations contained in this paragraph shall survive the
<br /> termination or cancellation of this Agreement or the expiration of the term of any schedule.
<br /> In addition to other payments to be made pursuant to this Agreement, Lessee shall
<br /> indemnify and hold Lessor harmless from and against, and shall pay Lessor, as additional
<br /> payment, on demand, an amount equal to, all license, assessments, sales, use, real or personal
<br /> property, gross receipts or other assessments, taxes, levies, imposts, duties and charges, if any
<br /> together with any penalties, fines or interest thereon imposed against or on Lessor, Lessee or the
<br /> Equipment by any governmental authority upon or with respect to the Equipment or the
<br /> purchase, ownership, possession, operation, return or sale of, or receipt of payments for, the
<br /> Equipment, except any Federal or state income taxes, if any, payable by Lessor. Lessee may
<br /> contest any such taxes prior to payment provided such contest does not involve any risk of sale,
<br /> forfeiture or loss of the Equipment or any interest therein.
<br /> 21.Prepayment Purchase. At the end of the lease term for Equipment covered by an
<br /> Equipment Schedule, provided all rental payments have been made under such Equipment
<br /> Schedule and there is no default or event which with the giving of notice or lapse of time, or
<br /> both, could become a default under the Agreement, any interest of Lessor to the Equipment
<br /> subject to such Equipment Schedule shall be transferred to the Lessee or released. Provided all
<br /> rental payments under this Agreement are paid to date, Lessee may prepay for Equipment under
<br /> • an Equipment Schedule and purchase the interest of Lessor in the Equipment at the end of any
<br /> month during the lease term by payment of:
<br /> (a) the outstanding principal balance due under the Amortization Schedule
<br /> attached to the applicable Equipment Schedule (or any substitute amortization schedule in effect
<br /> in accordance with Paragraph 12)plus accrued interest to date;
<br /> (b) the cost of any required inspections, examinations, or certifications of the
<br /> Equipment; and
<br /> (c)the cost of any repairs, modifications, or adjustments required as a result of the
<br /> inspections, examinations,or certifications referred to in(b)above.
<br /> Such option shall be exercisable by written notice to Lessor not less than thirty
<br /> (30) days prior to the prepayment purchase date. The closing shall be held on the specified
<br /> prepayment purchase date, or on the next following business day if such day is a Saturday,
<br /> Sunday or legal holiday, at the Principal Offices of Lessor, at which time Lessor shall deliver to
<br /> Lessee a release of any interest of the Lessor in the Equipment subject to such Equipment
<br /> Schedule to Lessee. Upon payment in full of all amounts due with respect to all Equipment
<br /> identified in a particular Equipment Schedule and release of any interest by the Lessor of its
<br /> interest in such Equipment to the Lessee, this Agreement shall terminate with respect to such
<br /> Equipment for which payment has been made in full (but shall remain in force with respect to
<br /> any other Equipment identified in another Equipment Schedule for which payment in full has not
<br /> • been made.)
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