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2004-292A
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2004-292A
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20. PREPAYMENT OPTION. Upon thirty (30) days prior written notice from Lessee, and provided that there is no Event of <br /> Default, or an event which with notice or lapse of time, or both, could become an Event of Default, then existing, Lessee will <br /> have <br /> the right to purchase the Equipment prior to the Termination Date on any Lease Payment Date set forth in Schedule B by paying <br /> to <br /> Lessor, on such date, the Concluding Payment as set forth in Schedule B. Upon satisfaction by Lessee of such purchase conditions, <br /> Lessor will transfer any and all of its right, title and interest in the Equipment to Lessee AS IS, WITHOUT <br /> WARRANTY , <br /> EXPRESS OR IMPLIED . <br /> 21 . TAX ASSUMPTION ; COVENANTS. Lessee hereby covenants with respect to this Lease that ( i) neither the payment of the <br /> Lease Payments hereunder nor any portion thereof is secured by any interest in property used or to be used in a trade or <br />business of a <br /> non-exempt person (within the meaning of Section 103 of the Code) or in payments with respect to such property or is <br /> derived from <br /> payments with respect to property, or borrowed money, used or to be used ina trade or business of a non-exempt person <br /> (within the <br /> meaning of Section 103 of the Code) ; (ii) no portion of the Equipment will be used directly or indirectly in any trade or business <br /> carried <br /> on by any non-exempt person (within the meaning of Section 103 of the Code); (iii) it will not take any action or permit or <br /> suffer any <br /> action to be taken or condition to exist if the result of such action or condition would be to cause its obligation <br /> to make Lease <br /> Payments to be guaranteed, directly or indirectly, in whole or in part, by the United States or by any agency <br /> or instrumentality <br /> thereof; ( iv) it will neither take any action (including, without limitation, entering into any lease, <br /> sublease , output contract, <br /> management contract, take-or-pay contract oc other arrangement) nor omit to take any action if the result of such action or omission <br /> would be to cause the interest portion of each Lease Payment to become includable in the income of Lessor for purposes of federal, <br /> state or local income tax ; (v) it will provide (or cause to be provided) to Lessor such other information as Lessor <br /> may reasonably <br /> request from Lessee to enable Lessor to fulfill tax filing, audit and litigation obligations, including, but not limited <br /> to, federal and <br /> state income tax filing obligations ; (vi) it will timely file a statement with respect to this Lease in the form required by Section <br /> 149(e) <br /> of the Internal Revenue Code of 1986 , as amended (the "Code"); and (vii) neither take any action or omit to take any <br />action if the <br /> result of such action or omission would be to cause this Lease to be an " arbitrage bond " within the meaning of Section <br /> 148 of the <br /> Code . If this Lease is accompanied by an Escrow Agreement, Lessee will execute and deliver to Lessor an Arbitrage Certificate <br /> ( in <br /> the form provided by Lessor) . <br /> If Lessor receives notice, in any form, from the Internal Revenue Service or it is determined based on an opinion of independent <br /> tax counsel selected by Lessor and approved by Lessee, which approval shall not be unreasonably withheld, that the interest portion <br /> of any Lease Payment is includable in the income of Lessor for purposes of federal, state or local income tax, Lessee , <br />at its option, <br /> shall either ( i) pay the Concluding Payment as provided in Section 20 hereof and terminate the Lease or ( ii) within <br /> 30 days after <br /> notice from Lessor, pay Lessor an amount which will restore to Lessor its after-tax yield as contemplated by this transaction from <br /> the <br /> date that the interest portion became taxable through the date of such additional rental payment and will further pay additional rent <br />to <br /> Lessor on each succeeding Lease Payment Date in such amount as will maintain Lessor ' s after-tax yield as contemplated <br /> by this <br /> transaction. <br /> 22. NOTICES. All notices to be given under this Lease shall be made in writing and mailed by certified mail, <br />return receipt <br /> requested, to the other party at its address set forth herein or at such address as the party may provide in writing from <br /> time to time . <br /> Any such notice shall be deemed to have been received five days subsequent to mailing. <br /> 23. SECTION HEADINGS. All section headings contained herein are for the convenience of reference only and are not <br /> intended to define or limit the scope of any provision of this Lease. <br /> 24. GOVERNING LAW. This Lease shall be construed in accordance with, and governed by, the laws of the state of the <br /> Equipment Location . <br /> 25. DELIVERY OF RELATED DOCUMENTS. Lessee will execute or provide, as requested by Lessor, such other <br /> documents and information as are reasonably necessary with respect to the transaction contemplated by this Lease. <br /> [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] <br /> FLLease <br /> Rev . July 1 , 2001 <br /> 02/02/05 4 : 14 PM <br /> Pale 6 of 7 <br />
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