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-19- <br />first giving written notice thereof to Lessor at least thirty (30) days in advance of such <br />cancellation or modification. <br />Section 7.03. Risk of Loss. Whether or not covered by insurance or self-insurance, Lessee <br />hereby assumes all risk of loss of, or damage to and liability related to injury or damage to any <br />persons or property arising from the Equipment from any cause whatsoever, and no such loss of <br />or damage to or liability arising from the Equipment shall relieve Lessee of the obligation to <br />make the Rental Payments or to perform any other obligation under this Agreement. Whether or <br />not covered by insurance or self-insurance, Lessee hereby agrees to reimburse Lessor (to the <br />fullest extent permitted by applicable law, but only from legally available funds) for any and all <br />liabilities, obligations, losses, costs, claims, taxes or damages suffered or incurred by Lessor, <br />regardless of the cause thereof and all expenses incurred in connection therewith (including, <br />without limitation, counsel fees and expenses, and penalties connected therewith imposed on <br />interest received) arising out of or as a result of (a) entering into this Agreement or any of the <br />transactions contemplated hereby (except to the extent caused by Lessor’s own gross negligence <br />or willful misconduct), (b) the ordering, acquisition, ownership use, operation, condition, <br />purchase, delivery, acceptance, rejection, storage or return of any item of the Equipment, (c) any <br />accident in connection with the operation, use, condition, possession, storage or return of any <br />item of the Equipment resulting in damage to property or injury to or death to any person, and/or <br />(d) the breach of any covenant of Lessee under or in connection with this Agreement or any <br />material misrepresentation provided by Lessee under or in connection with this Agreement. The <br />provisions of this Section 7.03 shall continue in full force and effect notwithstanding the full <br />payment of all obligations under this Agreement or the termination of the Lease Term fo r any <br />reason. <br />Section 7.04. Surety Bonds; Lessee to Pursue Remedies Against Contractors and <br />Sub-Contractors and Their Sureties. Lessee shall secure from each Vendor directly employed by <br />Lessee in connection with the acquisition, construction, installation, improvement or equipping <br />of the Equipment, a payment and performance bond (“Surety Bond”) executed by a surety <br />company authorized to do business in the State, having a financial strength rating by A.M. Best <br />Company of “A-” or better, and otherwise satisfactory to Lessor and naming Lessor as a <br />co-obligee in a sum equal to the entire amount to become payable under each Vendor <br />Agreement. Each bond shall be conditioned on the completion of the work in accordance with <br />the plans and specifications for the Equipment and upon payment of all claims of subcontractors <br />and suppliers. Lessee shall cause the surety company to add Lessor as a co-obligee on each <br />Surety Bond, and shall deliver a certified copy of each Surety Bond to Lessor promp tly upon <br />receipt thereof by Lessee. Any proceeds from a Surety Bond shall be applied in accordance with <br />such Surety Bond to the payment and performance of the Vendor’s obligations in accordance <br />with the related Vendor Agreement and, if for whatever reason such proceeds are not so applied, <br />first to amounts due Lessor under this Agreement, and any remaining amounts shall be payable <br />to Lessee. <br />In the event of a material default by any Vendor under any Vendor Agreement in <br />connection with the acquisition, construction, maintenance and/or servicing of the Equipment or <br />in the event of a material breach of warranty with respect to any material workmanship or <br />performance guaranty with respect to the Equipment, Lessee will promptly proceed to exhaust its <br />298