become due; provided that, with respect to any such taxes and charges that may lawfully be paidin
installments over a period of years, Lessee will be obligated to pay only such installments that accrue
during the Lease Term.
Section 22. Insurance. At its own expense, Lessee will maintain (a) casualty insurance insuring the
Equipment against loss or damage by fire and all other risks covered by the standard extended coverage
endorsement then in use in the State and any other risks reasonably required by Lessorin an amount at
least equal to the then applicable Purchase Price of the Equipment, (b) liability insurance that protects
Lessor from liability in all events in form and amount satisfactory to Lessor, and (c) workers’
com pensation coverage as required by the laws of the State; provided that, with Lessor’s prior written
consent, Lessee may self-insure against the risks described in clauses (a) and (b). Lessee shall also
provide or cause to be provided to Lessor payment and performance bonds from the Vendor, each naming
Lessor asa dual obligee andissued by a surety company rated “A” or better by AM Best in an amount
equal to the Equipment. Allinsurance proceeds from casualty losses will be payable as hereinafter
provided. Lessee will furnish to Lessor certificates evidencing such coverage throughout the Lease Term.
All such casualty and liability insurance will be with insurers that are acceptable to Lessor and will
contain a provision to the effect that such insurance will not be cancelled or modified materially without
first giving written notice thereof to Lessor at least ten days in advance of such cancellation or
modification. Allsuch casualty insurance will name Lessor as a loss payee and an additional insured. All
such liability insurance will name Lessor as an additional insured.
Section 23. Advances. In the event Lessee fails to maintain the insurance required by this Agreement,
pay taxes or charges required to be paid by it under this Agreement or fails to keep the Equipment in good
repair and operating condition, Lessor may (but will be under no obligation to) purchase the required
policies of insurance and pay the cost of the premiums on the thereof, pay such taxes and charges and
make such Equipment repairs or replacements as are necessary and pay the cost thereof. All amounts so
advanced by Lessor will become additional rent for the then current Original Term or Renewal Term.
Lessee agrees to pay such amounts with interest thereon from the date paid at the rate of 10% per annum
or the maximum permitted by law, whichever is less.
Section 24. Financial Information. Upon request, Lessee shall furnish or cause to be furnished to
Lessor, at Lessee’s expense, as soon as available after the close of each fiscal year, the audited financial
statement of Lessee at the close of and for such fiscal year, allin reasonable detail, with supporting
schedules, audited by and with the report of Lessee’s auditor (the “Audit”), which may be in electronic
.pdf format. In the event the Audit is filed on the MSRB’s “EMMA” website, to satisfy this requirement
Lessee may email a link to the posted Audit to Lessor. The electronic Audit or EMMA link may be sent
to the following email address (or such other address as Lessor supplies to Lessee in writing):
Yvonne 2.foley@capitalone.com (Yvonne Foley). In the event that the Audit is not available, Lessee will
furnish unaudited financial statements to Lessorin the manner describedin this Section, and will then
supply the Audit immediately upon the availability thereof.
Section 25. Release and Indemnification. To the extent permitted by law, Lessee will indemnify,
protect and hold harmless Lessor from and against any and all liability, obligations, losses, claims and
damages whatsoever, regardless of cause thereof, and expenses in connection therewith (including,
without limitation, counsel fees andexpenses and any federal income tax and interest and penalties
connected therewith imposed on interest received) arising out of or as the result of (a) the entering into
this Agreement, (b) the ownership of any item of the Equipment, (c) the manufacturing, ordering,
acquisition, use, operation, condition, purchase, delivery, rejection, storage or return of any item of the
Equipment, (d) any accident in connection with the operation, use, condition, possession, storage or
return of any item of the Equipment resulting in damage to property or injury or death to any person or
(e) the breach of any covenant herein or any material misrepresentation contained herein. The
indemnification arising under this paragraph will continue in full force and effect notwithstanding the full
payment of all obligations under this Agreement or the termination of the Lease Term for any reason.
Section 26. Risk of Loss. Lessee assumes, from and including the Commencement Date, allrisk of loss
of or damage to the Equipment from any cause whatsoever. No such loss of or damage to the Equipment
nor defect therein nor unfitness or obsolescence thereof will relieve Lessee of the obligation to make Rental
Payments or to perform any other obligation under this Agreement.
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