5. COSTS, EXPENSES, FEES AND CHARGES: Lessee agrees to pay all costs, expenses, fees, charges, fines, tickets, penalties and taxes (other
<br /> than federal and state income taxes on the income of Lessor)incurred in connection with the titling, registration,delivery, purchase, sale, rental, use or
<br /> operation of the Vehicles during the Term. If Lessor, Servicer or any other agent of Lessor incurs any such costs or expenses, Lessee agrees to
<br /> promptly reimburse Lessor for the same.
<br /> 6. LICENSE AND CHARGES: Each Vehicle will be titled and licensed in the name designated by Lessor at Lessee's expense. Certain other charges
<br /> relating to the acquisition of each Vehicle and paid or satisfied by Lessor have been capitalized in determining the monthly rental,treated as an initial
<br /> charge or otherwise charged to Lessee. Such charges have been determined without reduction for trade-in, exchange allowance or other credit
<br /> attributable to any Lessor-owned vehicle.
<br /> 7. REGISTRATION PLATES,ETC.: Lessee agrees,at its expense,to obtain in the name designated by Lessor all registration plates and other plates,
<br /> permits,inspections and/or licenses required in connection with the Vehicles,except for the initial registration plates which Lessor will obtain at Lessee's
<br /> expense. The parties agree to cooperate and to furnish any and all information or documentation,which may be reasonably necessary for compliance
<br /> with the provisions of this Section or any federal,state or local law, rule,regulation or ordinance. Lessee agrees that it will not permit any Vehicle to be
<br /> located in a state other than the state in which such Vehicle is then titled for any continuous period of time that would require such Vehicle to become
<br /> subject to the titling and/or registration laws of such other state.
<br /> 8. MAINTENANCE OF AND IMPROVEMENTS TO VEHICLES:
<br /> (a) Lessee agrees,at its expense,to(i)maintain the Vehicles in good condition, repair, maintenance and running order and in accordance with all
<br /> manufacturer's instructions and warranty requirements and all legal requirements and(ii)furnish all labor, materials, parts and other essentials required
<br /> for the proper operation and maintenance of the Vehicles. Any alterations,additions,replacement parts or improvements to a Vehicle will become and
<br /> remain the property of Lessor and will be returned with such Vehicle upon such Vehicle's return pursuant to Section 4. Notwithstanding the foregoing,
<br /> so long as no Event of Default has occurred and is continuing, Lessee shall have the right to remove any additional equipment installed by Lessee on a
<br /> Vehicle prior to returning such Vehicle to Lessor under Section 4. The value of such alterations, additions,replacement parts and improvements will in
<br /> no instance be regarded as rent. Without the prior written consent of Lessor, Lessee will not make any alterations, additions, replacement parts or
<br /> improvements to any Vehicle which detract from its economic value or functional utility. Lessor will not be required to make any repairs or replacements
<br /> of any nature or description with respect to any Vehicle,to maintain or repair any Vehicle or to make any expenditure whatsoever in connection with any
<br /> Vehicle or this Agreement.
<br /> (b) Lessor and Lessee acknowledge and agree that if Section 4 of a Schedule includes a charge for maintenance, (i)the Vehicle(s) covered by
<br /> such Schedule are subject to a separate maintenance agreement between Enterprise Fleet Management, Inc. and Lessee and(ii)Lessor shall have no
<br /> liability or responsibility for any failure of Enterprise Fleet Management, Inc. to perform any of its obligations thereunder or to pay or reimburse Lessee
<br /> for its payment of any costs and expenses incurred in connection with the maintenance or repair of any such Vehicle(s).
<br /> 9. SELECTION OF VEHICLES AND DISCLAIMER OF WARRANTIES:
<br /> (a) LESSEE ACCEPTANCE OF DELIVERY AND USE OF EACH VEHICLE WILL CONCLUSIVELY ESTABLISH THAT SUCH VEHICLE IS OF A
<br /> SIZE, DESIGN, CAPACITY, TYPE AND MANUFACTURE SELECTED BY LESSEE AND THAT SUCH VEHICLE IS IN GOOD CONDITION AND
<br /> REPAIR AND IS SATISFACTORY IN ALL RESPECTS AND IS SUITABLE FOR LESSEE'S PURPOSE. LESSEE ACKNOWLEDGES THAT LESSOR
<br /> IS NOT A MANUFACTURER OF ANY VEHICLE OR AN AGENT OF A MANUFACTURER OF ANY VEHICLE.
<br /> (b) LESSOR MAKES NO REPRESENTATION OR WARRANTY OF ANY KIND, EXPRESS OR IMPLIED,WITH RESPECT TO ANY VEHICLE,
<br /> INCLUDING,WITHOUT LIMITATION,ANY REPRESENTATION OR WARRANTY AS TO CONDITION, MERCHANTABILITY OR FITNESS FOR ANY
<br /> PARTICULAR PURPOSE, IT BEING AGREED THAT ALL SUCH RISKS ARE TO BE BORNE BY LESSEE. THE VEHICLES ARE LEASED "AS IS,"
<br /> 'WITH ALL FAULTS." All warranties made by any supplier, vendor and/or manufacturer of a Vehicle are hereby assigned by Lessor to Lessee for the
<br /> applicable Term and Lessee's only remedy,if any,is against the supplier,vendor or manufacturer of the Vehicle.
<br /> (c) None of Lessor. Servicer or any other agent of Lessor will be liable to Lessee for any liability. claim, loss, damage (direct, incidental or
<br /> consequential)or expense of any kind or nature, caused directly or indirectly, by any Vehicle or any inadequacy of any Vehicle for any purpose or any
<br /> defect(latent or patent)in any Vehicle or the use or maintenance of any Vehicle or any repair,servicing or adjustment of or to any Vehicle,or any delay
<br /> in providing or failure to provide any Vehicle, or any interruption or loss of service or use of any Vehicle, or any loss of business or any damage
<br /> whatsoever and however caused. In addition, none of Lessor, Servicer or any other agent of Lessor will have any liability to Lessee under this
<br /> Agreement or under any order authorization form executed by Lessee if Lessor is unable to locate or purchase a Vehicle ordered by Lessee or for any
<br /> delay in delivery of any Vehicle ordered by Lessee.
<br /> 10. RISK OF LOSS: Lessee assumes and agrees to bear the entire risk of loss of, theft of,damage to or destruction of any Vehicle from any cause
<br /> whatsoever ("Casualty Occurrence"). In the event of a Casualty Occurrence to a Vehicle, Lessee shall give Lessor prompt notice of the Casualty
<br /> Occurrence and thereafter will place the applicable Vehicle in good repair,condition and working order:provided. however,that if the applicable Vehicle
<br /> is determined by Lessor to be lost, stolen, destroyed or damaged beyond repair(a "Totaled Vehicle"), Lessee agrees to pay Lessor no later than the
<br /> date thirty(30)days after the date of the Casualty Occurrence the amounts owed under Sections 3(b) and 3(c)with respect to such Totaled Vehicle.
<br /> Upon such payment,this Agreement will terminate with respect to such Totaled Vehicle.
<br /> 11. INSURANCE:
<br /> (a) Lessee agrees to purchase and maintain in force during the Term, insurance policies in at least the amounts listed below covering each
<br /> Vehicle,to be written by an insurance company or companies satisfactory to Lessor, insuring Lessee, Lessor and any other person or entity designated
<br /> by Lessor against any damage,claim,suit,action or liability:
<br /> (i)Commercial Automobile Liability Insurance (including Uninsured/Underinsured Motorist Coverage and No-Fault Protection where required
<br /> by law)for the limits listed below (Note-$5,000,000 Combined Single Limit Bodily Injury and Property Damage with No Deductible is required for
<br /> each Vehicle capable of transporting more than B passengers):
<br /> State of Vehicle Registration Coverage
<br /> Connecticut, Massachusetts, Maine, New Hampshire, New $1,000,000 Combined Single Limit Bodily Injury and Property
<br /> Jersey,New York,Pennsylvania, Rhode Island, and Vermont Damage-No Deductible
<br /> Florida $500,000 Combined Single Limit Bodily Injury and Property
<br /> Damage or $100,000 Bodily Injury Per Person, $300,000 Per
<br /> Occurrence and $50,000 Property Damage (100/300/50) - No
<br /> Deductible
<br /> All Other States $300,000 Combined Single Limit Bodily Injury and Property
<br /> Damage or $100,000 Bodily Injury Per Person, $300,000 Per
<br /> Occurrence and $50,000 Property Damage (100/300/50) - No
<br /> Deductible
<br /> (ii) Physical Damage Insurance(Collision&Comprehensive): Actual cash value of the applicable Vehicle. Maximum deductible of$500 per
<br /> occurrence-Collision and$250 per occurrence-Comprehensive).
<br /> Initials: ECM Cast Page 2
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