Common use of Loss or Damage Clause in Contracts

Loss or Damage. Borrower assumes the entire risk of loss to the Collateral through use, operation or otherwise. Borrower hereby indemnifies and holds harmless Lender from and against all claims, loss of Loan payments, costs, damages, and expenses relating to or resulting from any loss, damage or destruction of the Collateral, any such occurrence being hereinafter called a "Casualty Occurrence." No later than the first payment date following such Casualty Occurrence, or, if there is no such payment date, no later than thirty (30) days after such Casualty Occurrence, Borrower shall, at its election, either: (a) repair the Collateral returning it to good operating condition, or (b) replace the Collateral with Collateral acceptable to Lender in its reasonable discretion, in good condition and repair taking all steps required by Lender to perfect Lender's first priority security interest therein, which replacement Collateral shall be subject to the terms of this Security Agreement, or (c) on the first day payment is due on any Note following the Casualty Occurrence, or if there is no such payment date, thirty (30) days after such Casualty Occurrence, pay to Lender an amount equal to the Balance Due (as defined below) for each lost or damaged item of Collateral. The Balance Due for each such item is the sum of: (i) all amounts for each item which may be then due or accrued to the payment date, plus (ii) as of such payment date, an amount equal to the product of the fraction specified below times the sum of all remaining payments under the respective Note, including the amount of any mandatory or optional payment required or permitted to be paid by Borrower to Lender at the maturity of the Note. The numerator of the fraction shall be the collateral value (as set forth on the applicable Note) of the item and the denominator shall be the aggregate collateral value of all items under the Note. Upon the making of such payments, Lender shall release such item of Collateral from its lien hereunder.

Loss or Damage. Borrower assumes Lessee agrees to assume and bear the entire risk of any partial or complete loss with respect to the Collateral through useEquipment from any and every cause whatsoever including theft, operation loss, damage, destruction or otherwisegovernmental taking, whether or not such loss is covered by insurance or caused by any default or neglect of Lessee. Borrower hereby indemnifies and holds harmless Lender from and against all claims, Lessee agrees to give Lessor prompt notice of any damage to or loss of Loan payments, costs, damagesany Equipment, and expenses relating to unless such loss constitutes an Event of Loss, Lessee shall promptly cause the affected part or resulting from any loss, damage or destruction parts of the CollateralEquipment to be replaced or restored as required by Section 6 hereof. If any item of Equipment is lost, any such occurrence being hereinafter called a "Casualty Occurrence." No later than the first payment date following such Casualty Occurrencetotally destroyed, or, if there is no such payment date, no later than thirty damaged beyond repair (30) days after such Casualty Occurrence, Borrower shall, at its election, either: (a) repair the Collateral returning it to good operating condition, or (b) replace the Collateral with Collateral acceptable to Lender as determined by Lessee in its reasonable discretionjudgment, in good condition and repair taking all steps required by Lender to perfect Lender's first priority security interest therein, which replacement Collateral shall be subject to the terms Lessor's approval) or taken by governmental action (an "Event of this Security AgreementLoss"), or (c) on the first day payment is due on any Note following the Casualty OccurrenceLessee shall promptly give Lessor written notice thereof, or if there is no such payment date, thirty (30) days after such Casualty Occurrence, and Lessee shall pay to Lender Lessor within thirty days (the "Loss Payment Date") of said Event of Loss an amount equal to the Balance Due (as defined below) for each lost or damaged item sum of Collateral. The Balance Due for each such item is the sum of: (i) all amounts for each the Stipulated Loss Value of such item which may be then due of Equipment computed as of the rent payment date with respect to such item of Equipment on or accrued to immediately preceding the payment date, plus date of such Event of Loss; and (ii) as of such payment date, an amount equal to the product of the fraction specified below times the sum of all remaining payments under the respective Note, including the amount of any mandatory or optional payment required or permitted to be paid by Borrower to Lender at the maturity of the Note. The numerator of the fraction shall be the collateral value (as set forth on the applicable Note) of the item rent and the denominator shall be the aggregate collateral value of all items under the Note. Upon the making of such payments, Lender shall release other amounts due and owing hereunder for such item of Collateral Equipment on or prior to the Loss Payment Date. Upon payment of such amount to Lessor, the lease of such item of Equipment hereunder shall terminate, and Lessor will transfer to Lessee, Lessor's right, title and interest in and to such item of Equipment, on an "as-is, where-is" basis, without recourse and without representation or warranty, express or implied, other than a warranty that the Equipment is free and clear of any liens created by Lessor. "Stipulated Loss Value" shall mean, with respect to any item of Equipment, the amount determined by multiplying the total amount paid by Lessor for such item of Equipment, which amount shall be set forth in the applicable Supplement (the "Lessor's Cost") by the percentage set forth in Schedule A to such Supplement opposite the applicable rent payment date. Except as expressly provided in the immediately preceding paragraph, the total or partial destruction of any Equipment or the total or partial loss of use or possession thereof to Lessee shall not release or relieve Lessee from its lien hereunderthe duty to pay the rent herein provided, however Lessor shall, upon receiving satisfactory evidence of restoration of the Equipment, promptly pay Lessee the proceeds of any insurance or compensation received by reason of such damage. Lessor shall not be obligated to undertake by litigation or otherwise the collection of any claim against any person for loss or damage to the Equipment.

Loss or Damage. Borrower assumes Lessee shall bear the entire risk of loss any disappearance of, damage to the Collateral through use, operation or otherwise. Borrower hereby indemnifies and holds harmless Lender from and against all claims, loss of Loan payments, costs, damages, and expenses relating to or resulting any item of Equipment from any loss, damage or destruction of the Collateral, any such occurrence being hereinafter called cause whatsoever (a "Casualty Occurrence." No later than the first payment date following such "). Lessee shall promptly notify Lessor in writing of any Casualty Occurrence. Upon a Casualty Occurrence: (a) if the affected Equipment is repairable, orLessee shall, at Lessee's expense, promptly restore the Equipment to good repair, condition and working order in accordance with the manufacturer's recommendations and to the reasonable satisfaction of Lessor; or (b) if there the affected Equipment is no an actual or constructive total loss or otherwise is not repairable, Lessee shall pay to Lessor on or before the next Periodic Rent Payment Date (such payment date, no later than thirty (30the "Casualty Payment Date") days after such Casualty Occurrence, Borrower shall, at its election, either: (a) repair the Collateral returning it to good operating condition, or (b) replace the Collateral with Collateral acceptable to Lender in its reasonable discretion, in good condition and repair taking all steps required by Lender to perfect Lender's first priority security interest therein, which replacement Collateral shall be subject to the terms of this Security Agreement, or (c) on the first day payment is due on any Note following the Casualty Occurrence, or if there is no such payment date, thirty (30) days after such Casualty Occurrence, pay to Lender an amount equal to the Balance Due (as defined below) for each lost or damaged item sum of Collateral. The Balance Due for each such item is the sum of: (i) all amounts for each item due and unpaid under the applicable Lease as of the Casualty Payment Date (including all Periodic Rent payments in respect of such Equipment, which may shall be then due or accrued pro rated to the payment dateCasualty Payment Date, and any indemnity obligations), plus (ii) as the present value of all future Periodic Rent payments for such payment dateEquipment, discounted on an amount annual basis at a discount rate equal to the product ask yield to maturity of the fraction specified below times U.S. Treasury Xxxx issue maturing in 180 days (or the sum issue maturing closest thereto), as published in the Wall Street Journal for the immediately preceding Rent Payment Date (or the next preceding business day if such date is not a business day), which Lessee agrees is a commercially reasonable rate (the "Discount Rate") from the scheduled payment dates to the Casualty Payment Date, plus (iii) the present value of all remaining payments the greater of (x) the anticipated residual value of the affected Equipment at the end of the relevant Lease Term, as determined by the Lessor for purposes of calculating the relevant Periodic Rent and Purchase Option Price or (y) the then expected fair market value of the affected Equipment at the end of the relevant Lease Term, in each case discounted on an annual basis at the Discount Rate from the expiration of the Lease Term to the Casualty Payment Date; provided, that if the Purchase Option Price is a fixed amount, the value calculated pursuant to the foregoing clause (iii) shall not exceed the present value of such fixed Purchase Option Price, discounted on an annual basis at the Discount Rate from the expiration date of the relevant Lease term to the Casualty Payment Date. If Lessee is required to repair the affected Equipment pursuant to clause (a) of the foregoing sentence, the insurance proceeds actually received by Lessor, if any, pursuant to Section 8 hereof shall be applied first to pay any amounts then due under this Agreement or any Lease and then shall be paid to Lessee upon proof satisfactory to Lessor that such repair has been completed as required herein. In the respective Noteevent Lessee is obligated to pay to Lessor the amounts set forth in clause (b) of the foregoing sentence, including Lessee shall be entitled to a credit against such amounts equal to the amount of any mandatory or optional insurance proceeds actually received by Lessor, if any, pursuant to Section 8 hereof on account of such Equipment and upon payment required or permitted to be paid by Borrower to Lender at the maturity in full of the Note. The numerator of the fraction shall be the collateral value (as all amounts set forth in such clause (b), Lessor shall assign to Lessee and Lessee's insurers, as their interests may appear, all of Lessor's interest in such Equipment on the applicable Note) of the item an as is, where is basis, without representation or warranty, express or implied, and the denominator shall be the aggregate collateral value of all items under the Note. Upon the making Lease in respect of such payments, Lender Equipment shall release such item of Collateral from its lien hereunderterminate.

Loss or Damage. Borrower assumes the entire risk of loss to the Collateral through use, operation or otherwise. Borrower hereby indemnifies and holds harmless Lender from and against all claims, loss of Loan payments, costs, damages, and expenses relating to or resulting from any loss, damage or destruction of the Collateral, any such occurrence being hereinafter called a "Casualty Occurrence." No later than the first payment date following such Notwithstanding any Casualty Occurrence, orthe Loan to which such casualtied item of Collateral is subject shall continue in full force and effect without any abatement in the monthly payment due. Borrower shall, if there is no such payment dateat its election, (a) no later than thirty (30) days after such Casualty Occurrence, Borrower shall, at its election, either: (a) Occurrence repair the Collateral returning it to good operating condition, or (b) no later than thirty (30) days after such Casualty Occurrence replace the Collateral with Collateral acceptable to Lender in its reasonable discretion, in good condition and repair taking all steps required by Lender to perfect Lender's first priority security interest therein, which replacement Collateral shall be subject to the terms of this Security Agreement, or (c) on the first day next regular monthly payment is due on any Note following the Casualty Occurrencedate which falls after such thirty (30) days, or if there is no such payment date, thirty (30) days after such Casualty Occurrence, Occurrence pay to Lender an amount equal to the Balance Due (as defined below) for each lost or damaged item of Collateral. The Balance Due for each such item is the sum of: (i) all amounts for each item which may be then due or accrued to the payment date, plus (ii) as of such payment date, an amount equal to the product of the fraction specified below times the sum of all remaining payments under the respective Note, including the amount of any mandatory or optional payment required or permitted to be paid by Borrower to Lender at the maturity of the NoteNote discounting to present value the amounts in (ii) at a rate of 6% per annum compounded monthly on the basis of a 360 day year ("Discount Rate"). The numerator of the fraction shall be the collateral value (as set forth on the applicable Note) of the item and the denominator shall be the aggregate collateral value of all items under the Note. Upon the making of such payments, Lender shall release such item of Collateral from its lien hereunder.

Loss or Damage. Borrower assumes the entire risk of loss to the Collateral through use, operation or otherwise. Borrower hereby indemnifies and holds harmless Lender from and against all claims, loss of Loan payments, costs, damages, and expenses relating to or resulting from any loss, damage or destruction of the Collateral, any such occurrence being hereinafter called a "Casualty Occurrence." No later than the first payment date following such Casualty Occurrence, or, if there is no such payment date, no later than thirty sixty (3060) days after such Casualty Occurrence, Borrower shall, at its election, either: (a) repair the Collateral returning it to good operating condition, or (b) replace the Collateral with Collateral acceptable to Lender in its reasonable discretion, in good condition and repair taking all steps required by Lender to perfect Lender's first priority security interest therein, which replacement Collateral shall be subject to the terms of this Security Agreement, or (c) on the first day payment is due on any Note following the Casualty Occurrence, or if there is no such payment date, thirty (30) days after such Casualty Occurrence, pay to Lender an amount equal to the Balance Due (as defined below) for each lost or damaged item of Collateral. The Balance Due for each such item is the sum of: (i) all amounts for each item which may be then due or accrued to the payment date, plus (ii) as of such payment date, an amount discounted to present value at 6% equal to the product of the fraction specified below times the sum of all remaining payments under the respective Note, including the amount of any mandatory or optional payment required or permitted to be paid by Borrower to Lender at the maturity of the Note. The numerator of the fraction shall be the collateral value (as set forth on the applicable Note) of the item and the denominator shall be the aggregate collateral value of all items under the Note. Upon the making of such payments, Lender shall release such item of Collateral from its lien hereunder.

Loss or Damage. Borrower assumes the entire The risk of loss or damage to the Collateral through useReal Property and Improvements by reason of any insured casualty during the period up to the Closing shall be borne by Seller; however, operation Seller shall not have the risk of loss for any uninsured loss or otherwisedamage. Borrower hereby indemnifies If the Real Property and holds harmless Lender from Improvements or any part of the Real Property and against all claims, loss Improvements is damaged or destroyed (notice of Loan payments, costs, damageswhich shall be given to Buyer by Seller after receipt by Seller of notice of such damage or destruction), and expenses relating to or resulting from any loss, the damage or destruction can reasonably be repaired or replaced by Seller prior to the Closing and the cost of the Collateralforegoing shall be less than $500,000.00, any such occurrence being hereinafter called a "Casualty Occurrence." No later than then Seller shall restore the first payment damage or destruction to as nearly the condition existing prior to the date following such Casualty Occurrence, or, if there of the damage or destruction as is no such payment date, no later than thirty (30) days after such Casualty Occurrence, Borrower shall, at its election, either: (a) repair the Collateral returning it to good operating condition, or (b) replace the Collateral with Collateral acceptable to Lender in its reasonable discretionreasonably practicable. If, in good condition and repair taking all steps required by Lender to perfect Lender's first priority security interest thereinSeller’s reasonable judgment, which replacement Collateral shall the damage or destruction cannot reasonably be subject repaired or replaced prior to the terms of this Security Agreement, or (c) on the first day payment is due on any Note following the Casualty OccurrenceClosing, or if there the cost of the foregoing shall exceed or shall reasonably be expected to exceed (as evidenced by a cost estimate from a reputable company obtained by Seller), the sum of $500,000.00, or if the loss or damage is no such payment datean uninsured loss or damage, thirty then Seller shall notify Buyer thereof and Buyer shall have the option, upon notice to Seller, given within ten (3010) days after such Casualty Occurrenceof Seller’s notice, pay to Lender an amount equal to the Balance Due (as defined below) for each lost or damaged item of Collateral. The Balance Due for each such item is the sum ofeither: (i) close the purchase, in which event Seller shall, at Closing, deliver to Buyer any insurance proceeds collected by Seller or assign to Buyer without recourse, representation or warranty, all amounts of Seller’s right, title and interest in and to such insurance proceeds, if any, and Buyer shall assume responsibility for each item which the repair or replacement, as the case may be then due be, of the damage or accrued destruction to the payment dateReal Property and Improvements, plus which obligation shall survive the Closing; or (ii) as of such payment dateterminate this Agreement. In the event Buyer does not make the election within the ten (10) day period provided for above, an amount equal then Buyer shall be deemed to have elected to continue this Agreement and close title to the product purchase of the fraction specified below times Property. If Buyer elects to terminate the sum Agreement, Seller shall have the option, upon written notice to Buyer, sent within ten (10) days after Buyer’s termination notice, to send notice to Buyer that it intends to repair the damage, in which event Seller shall have the right to extend the Closing date for a period not to exceed ninety (90) days to perform the repair. If Seller does not elect to repair the damage after its receipt of Buyer’s termination notice, then upon such termination, all remaining payments under rights and obligations of the respective Note, including the amount of any mandatory or optional payment required or permitted to be paid by Borrower to Lender at the maturity of the Note. The numerator of the fraction parties under this Agreement shall be the collateral value (null and void, except as set forth on the applicable Note) of the item otherwise expressly provided in this Agreement with respect to rights and the denominator shall be the aggregate collateral value of all items under the Note. Upon the making of such payments, Lender shall release such item of Collateral from its lien hereunderobligations that survive a termination.

Loss or Damage. Borrower assumes the entire risk of loss to the Collateral through use, operation or otherwise. Borrower hereby indemnifies and holds harmless Lender from and against all claims, loss of Loan payments, costs, damages, and expenses relating to or resulting from any loss, damage or destruction of the Collateral, any such occurrence being hereinafter called a "Casualty Occurrence." No later than the first payment date following such Casualty Occurrence, or, if there is no such payment date, no later than thirty (30) days after such Casualty Occurrence, Borrower shall, at its election, either: (a) repair the Collateral returning it to good operating condition, or (b) replace the Collateral with Collateral acceptable to Lender in its reasonable discretion, in good condition and repair taking all steps required by Lender to perfect Lender's first priority security interest therein, which replacement Collateral shall be subject to the terms of this Security Agreement, or (c) on the first day payment is due on any Note following the Casualty Occurrence, or if there is no such payment date, thirty (30) days after such Casualty Occurrence, pay to Lender an amount equal to the Balance Due (as defined below) for each lost or damaged item of Collateral. The Balance Due for each such item is the sum of: of (i) all amounts for each item which may be then due or accrued to the payment date, plus (ii) as of such payment date, an amount equal to the product of the fraction specified below times the sum of all remaining payments under the respective Note, including the amount of any mandatory or optional payment required or permitted to be paid by Borrower to Lender at the maturity of the Note. The numerator of the fraction shall be the collateral value (as set forth on the applicable Note) of the item and the denominator shall be the aggregate collateral value of all items item under the Note. Upon the making of such payments, Lender shall release such item of Collateral from its lien hereunder.

Loss or Damage. Borrower assumes the entire risk of loss to the Collateral through use, operation or otherwise. Borrower hereby indemnifies and holds harmless Lender from and against all claims, loss of Loan payments, costs, damages, and expenses relating to or resulting from any loss, damage or destruction of the Collateral, any such occurrence being hereinafter called a "Casualty Occurrence." No later than the first payment date following such Casualty Occurrence, or, if there is no such payment date, no later than thirty (30) days after such Casualty Occurrence, Borrower Borrower, shall, at its election, either: (a) repair the Collateral returning it to good operating condition, or (b) replace the Collateral with Collateral acceptable to Lender in its reasonable discretion, in good condition and repair taking all steps required by Lender to perfect Lender's first priority security interest therein, which replacement Collateral shall be subject to the terms of this Security Agreement, or (c) on the first day payment is due on any Note following the Casualty Occurrence, or if there is no such payment date, thirty (30) days after such Casualty Occurrence, pay to Lender an amount equal to the Balance Due (as defined below) for each lost or damaged item of Collateral. The Balance Due for each such item is the sum ofof : (iI) all amounts for each item which may be then due or accrued to the payment date, plus (ii) as of such payment date, an amount equal to the product of the fraction specified below times the sum of all remaining payments under the respective Note, including the amount of any mandatory or optional payment required or permitted to be paid by Borrower to Lender at the maturity of the Note. The numerator of the fraction shall be the collateral value (as set forth on the applicable Note) of the item and the denominator shall be the aggregate collateral value of all items under the Note. Upon the making of such payments, Lender shall release such item of Collateral from its lien hereunder.

Loss or Damage. Borrower Lessee hereby assumes and shall bear the entire risk of loss (including theft, requisition of use, erasure or inoperability) or destruction of or damage to the Collateral through useEquipment from any and every cause whatsoever, operation whether or otherwisenot insured, until the Equipment is returned to Lessor. Borrower hereby indemnifies No such loss or damage shall relieve Lessee from any obligation under this Agreement or any Lease hereunder, which shall continue in full force and holds harmless Lender from and against all claims, loss effect. In the event of Loan payments, costs, damages, and expenses relating damage to or resulting from any loss, damage loss or destruction of the CollateralEquipment (or any part thereof), any Lessee shall promptly notify Lessor in writing of such occurrence being hereinafter called a "Casualty Occurrence." No later than the first payment date following such Casualty Occurrence, or, if there is no such payment date, no later than thirty (30) days after such Casualty Occurrence, Borrower fact and shall, at its electionthe option of Lessor, either: (a) repair restore the Collateral returning it same to good operating conditionrepair, or condition and working order, (b) replace the Collateral Equipment with Collateral like equipment in good repair, condition and working order, acceptable to Lender in its reasonable discretionLessor and transfer clear title to or a right to use, in good condition and repair taking all steps required by Lender as appropriate, such replacement Equipment to perfect Lender's first priority security interest thereinLessor, which replacement Collateral whereupon such Equipment shall be subject to the terms of this Security AgreementLease and be deemed the Equipment for purposes hereof, or (c) on the due date for the next Lease Payment or upon the expiration of the Lease, whichever first day payment is due on any Note following the Casualty Occurrence, or if there is no such payment date, thirty (30) days after such Casualty Occurrenceoccurs, pay to Lender an amount equal to the Balance Due (as defined below) for each lost or damaged item of Collateral. The Balance Due for each such item is the sum ofLessor: (i) all amounts for each item which the stipulated loss value therefor as may be specified in the Lease ("Stipulated Loss Value") plus all Lease Payments then due due, or accrued to the payment date, plus (ii) as if the Lease does not provide for Stipulated Loss Value, the present value of such the total of all unpaid Lease Payments for the entire Lease Term plus the estimated fair market value of the Equipment at the end of the originally scheduled Lease Term or the agreed upon purchase option price, if any, all of which shall be discounted to the date of payment date, by Lessee at an amount annual rate equal to the product lesser of six percent (6%) or the rate then available for United States Treasury obligations having an average life equal to the remaining Lease Term ("Present Value Rate"), whereupon the Lease shall terminate with respect thereto. All proceeds of insurance received by Lessor as a result of such loss or damage shall, where applicable, be applied toward the replacement or repair of the fraction specified below times Equipment or the sum of all remaining payments under the respective Note, including the amount of any mandatory or optional payment required or permitted to be paid by Borrower to Lender at the maturity of the Note. The numerator obligations of the fraction shall be the collateral value (as set forth on the applicable Note) of the item and the denominator shall be the aggregate collateral value of all items under the Note. Upon the making of such payments, Lender shall release such item of Collateral from its lien Lessee hereunder.

Loss or Damage. Borrower Lessee assumes the entire risk of loss to the Collateral Equipment through use, operation or otherwise. Borrower Lessee hereby indemnifies and holds harmless Lender Lessor from and against all claims, loss of Loan rental payments, costs, damages, and expenses relating to or resulting from any loss, damage or destruction of the CollateralEquipment, any such occurrence being hereinafter called a "Casualty Occurrence." No later than Casualty Occurrence shall relieve Lessee from the obligation to pay rent or from any other obligation under the Lease. Within thirty (30) days after such Casualty Occurrence, Lessee shall either (a) repair the Equipment, returning it to good operating condition; or Co) replace the Equipment with identical equipment in good condition and repair, the title to which shall vest in Lessor and which thereafter shall be subject to the terms of this Lease; or (c) pay to Lessor (I) on the first rental payment date following such the Casualty Occurrence, or, if there is no such rental payment date, no later than thirty (30) days after such Casualty Occurrence, Borrower shall, at its election, either: (a) repair the Collateral returning it any unpaid accrued amounts relating to good operating condition, or (b) replace the Collateral with Collateral acceptable to Lender in its reasonable discretion, in good condition and repair taking all steps required by Lender to perfect Lender's first priority security interest therein, which replacement Collateral shall be subject such Equipment due Lessor under this Lease up to the terms date of this Security Agreement, or (c) on the first day payment is due on any Note following the Casualty Occurrence, and (ii) upon the earlier of (A) the receipt of insurance proceeds with respect to such Casualty Occurrence, or if there is no such payment date, (B) within thirty (30) days after of such Casualty Occurrence, pay to Lender an amount a sum equal to the Balance Due (Casualty Value as defined below) set forth in the Casualty Value table attached to each Schedule hereto for each lost or damaged item such Equipment; provided, however, nothing set forth in this sentence shall be deemed to relieve Lessee of Collateral. The Balance Due for each such item is the sum of: (i) all amounts for each item which may be then due or accrued obligation to continue to pay scheduled rental payments as they relate to the payment date, plus (ii) Equipment that was the subject of the Casualty Occurrence as of such payment date, an amount equal payments become due and payable prior to the product date that the Casualty Value with respect thereto is paid to Lessor in accordance with this section nor shall any provision of this sentence be deemed to provide that Lessee's obligation to pay the fraction specified below times the sum of all remaining payments under the respective Note, including Casualty Value shall be limited to the amount of any mandatory or optional payment required or permitted to be paid by Borrower to Lender at the maturity of the Note. The numerator of the fraction shall be the collateral value (as set forth on the applicable Note) of the item and the denominator shall be the aggregate collateral value of all items under the Noteinsurance proceeds that Lessee receives. Upon the making of such paymentspayment, Lender the term of this Lease as to each unit of Equipment with respect to which the Casualty Value was paid shall release such item of Collateral from its lien hereunderterminate.

Loss or Damage. Borrower assumes bears the entire risk of loss to the Collateral through useloss, operation or otherwise. Borrower hereby indemnifies and holds harmless Lender from and against all claims, loss of Loan payments, costs, damages, and expenses relating to or resulting from any losstheft, damage or destruction of Equipment in whole or in part from any reason whatsoever (“Casualty Loss”). No Casualty Loss to Equipment shall relieve Borrower from the Collateralobligation to pay the installment payments or from any other obligation under this Agreement. In the event of Casualty Loss to any item of Equipment, any such occurrence being hereinafter called a "Casualty Occurrence." No later than Borrower shall immediately notify Lender of the first payment date following such Casualty Occurrence, or, if there is no such payment date, no later than thirty (30) days after such Casualty Occurrence, same and Borrower shall, if so directed by Lender, immediately repair the same. If Lender reasonably determines that the Equipment has suffered a Casualty Loss beyond repair or a Casualty Loss that substantially and permanently reduces the fair market value of the Equipment (“Lost Equipment”), then Borrower, at its electionthe option of Lender, eithershall: (a1) repair immediately replace the Collateral returning it Lost Equipment with similar equipment in good repair, condition and working order free and clear of any Liens, convey to good operating conditionLender a security interest in such replacement equipment, and deliver to Lender such documents to evidence such conveyance and the International Interest and shall make such filings and registrations with the FAA and the International Registry (and hereby consents to such registrations with the International Registry) with respect thereto as Lender requests, in which event such replacement equipment shall automatically be Equipment under this Agreement; or (b) replace the Collateral with Collateral acceptable to Lender in its reasonable discretion, in good condition and repair taking all steps required by Lender to perfect Lender's first priority security interest therein, which replacement Collateral shall be subject to the terms of this Security Agreement, or (c2) on the first day installment payment due date that is due on any Note following at least 30 days but no more than 60 days after the date of the Casualty Occurrence, or if there is no such payment date, thirty Loss (30) days after such Casualty Occurrence“Loss Payment Due Date”), pay to Lender an amount equal to all accrued and unpaid principal, interest, late charges and other amounts then due and payable by Borrower under this Agreement or the Balance Note plus 102% of the remaining principal balance of the Note as of the Loss Payment Due (Date as defined below) for each lost or damaged item determined by Lender’s records which shall not be considered a penalty. Upon payment by Borrower of Collateral. The Balance Due for each such item is the sum of: (i) all amounts for each item which may be then due or accrued to under the payment dateabove clause (2), plus (ii) as of such payment date, an amount equal to the product all security interests of the fraction specified below times Lender in the sum of all remaining payments Lost Equipment, including those under the respective NoteInternational Registry, including the amount of any mandatory or optional payment required or permitted to be paid by Borrower to Lender at the maturity of the Note. The numerator of the fraction shall be the collateral value (as set forth on the applicable Note) of the item and the denominator shall be the aggregate collateral value of all items under the Note. Upon the making of such payments, Lender shall release such item of Collateral from its lien hereunderwill terminate.

Loss or Damage. Borrower assumes shall advise Lender in writing within ten (10) days of the entire risk occurrence of loss to any material damage, loss, theft, destruction or governmental confiscation or appropriation of any item of the Collateral through use, operation or otherwise. Borrower hereby indemnifies (an “Event of Loss”) and holds harmless Lender from and against all claims, loss of Loan payments, costs, damages, and expenses relating to or resulting from any loss, damage or destruction of the Collateral, any circumstances and extent of such occurrence being hereinafter called a "Casualty Occurrence." No later than the first payment date following such Casualty Occurrence, or, if there is no such payment date, no later than Event of Loss. Within thirty (30) days after such Casualty Occurrencereceipt of notice from Lender, Borrower shall (at Lender’s option) either: (1) replace the item of Collateral having suffered the Event of Loss with equipment which is free and clear of all Liens and has a value and utility at least equal to the item of Collateral having suffered the Event of Loss, and such replacement collateral shall immediately be deemed “Collateral” hereunder and subject to the security interest granted by Borrower herein; or (2) prepay the Obligations to the extent attributable to the unpaid portion of the Obligations funded with respect to the item of Collateral, if applicable, having suffered the Event of Loss (as reasonably determined by Lender). If any item of Collateral is damaged and such damage can be repaired, Borrower shall (at its expense) promptly effect such repairs. Proceeds of insurance shall be paid to Lender with respect to such reparable damage to the Collateral and shall, at its electionthe election of Lender, either: (a) be applied either to the repair of the Collateral returning it by payment by Lender directly to good operating conditionthe party completing the repairs, or (b) replace to the reimbursement of Borrower for the cost of such repairs; provided, however, that Lender shall have no obligation to make such payment or any part thereof until receipt of such evidence as Lender shall deem satisfactory that such repairs have been completed, and further provided that Lender may apply such proceeds to the payment of any installment or other sum due or to become due under this Agreement if at the time such proceeds are received by Lender there shall have occurred and be continuing any Default or Event of Default. All accessories, parts and replacements for or which are added to or become attached to the Collateral with shall immediately be deemed incorporated in the Collateral acceptable to Lender in its reasonable discretion, in good condition and repair taking all steps required by Lender to perfect Lender's first priority security interest therein, which replacement Collateral shall be subject to the terms of this Security Agreement, or (c) on the first day payment is due on any Note following the Casualty Occurrence, or if there is no such payment date, thirty (30) days after such Casualty Occurrence, pay to Lender an amount equal to the Balance Due (as defined below) for each lost or damaged item of Collateral. The Balance Due for each such item is the sum of: (i) all amounts for each item which may be then due or accrued to the payment date, plus (ii) as of such payment date, an amount equal to the product of the fraction specified below times the sum of all remaining payments under the respective Note, including the amount of any mandatory or optional payment required or permitted to be paid security interest granted by Borrower to Lender at the maturity of the Note. The numerator of the fraction shall be the collateral value (as set forth on the applicable Note) of the item and the denominator shall be the aggregate collateral value of all items under the Noteherein. Upon the making of such paymentsreasonable advance notice, Lender shall release such item of have the right to inspect the Collateral from its lien hereunderand all maintenance records thereto, if any, at any reasonable time.

Loss or Damage. Borrower assumes the entire risk If, prior to Closing, there is Twenty-Five Thousand and No/I 00 Dollars ($25,000.00) or more of loss damage to the Collateral through useProperty by fire or other casualty, operation whether or otherwise. Borrower hereby indemnifies and holds harmless Lender from and not insured against all claimsby Seller under its property damage insurance policy, loss Seller shall promptly give Purchaser notice of Loan payments, costs, damagessuch fact, and expenses relating Purchaser may elect to terminate this Contract within seven (7) days after receiving written notice from Seller of the occurrence of such casualty. If Purchaser so elects to terminate this Contract, it shall give Seller written notice within ten (10) days after receipt of notice of the occurrence of the casualty (with the Closing date to be postponed, if necessary, to give both parties the benefit of the full ten (10) day period), and the Xxxxxxx Money shall be returned to Purchaser and this Contract shall terminate and be null and void and of no further force or resulting from any losseffect. Failure of Purchaser to notify Seller within ten (10) days that Purchaser has elected to terminate this Contract shall be deemed to mean that Purchaser has elected not to terminate this Contract. If Purchaser has elected not to terminate this Contract in the event of $25,000.00 or more of damage to the Property, Purchaser shall proceed to Closing and shall pay the full purchase price and receive all insurance proceeds payable as a result of such damage or destruction (except for the amount of rental loss insurance applicable to the Collateral, any such occurrence being hereinafter called a "Casualty Occurrence." No later than period prior to the first payment date following such Casualty Occurrence, or, if there is no such payment closing date, no later than thirty (30) days after such Casualty Occurrence, Borrower shall, at its election, either: (a) repair the Collateral returning it to good operating condition, or (b) replace the Collateral with Collateral acceptable to Lender in its reasonable discretion, in good condition and repair taking all steps required by Lender to perfect Lender's first priority security interest therein, which replacement Collateral shall be subject paid to and retained by Seller), together with a credit against the terms of this Security Agreement, or (c) on the first day payment is due on any Note following the Casualty Occurrence, or if there is no such payment date, thirty (30) days after such Casualty Occurrence, pay to Lender Purchase Price in an amount equal to the Balance Due (as defined below) for each lost or damaged item of CollateralSeller’s insurance deductible amount. The Balance Due for each such item is the sum of: (i) all amounts for each item which may be then due or accrued If prior to the payment dateClosing date there is less than $25,000.00 of damage or destruction to the Property by fire or other casualty which is covered by insurance, plus (ii) this Contract shall not terminate, and Purchaser shall proceed to Closing, and shall pay the full purchase price and receive all insurance proceeds payable as a result of such payment datedamage or destruction, together with a credit against the Purchase Price in an amount equal to the product of the fraction specified below times the sum of all remaining payments under the respective Note, including Seller’s insurance deductible amount (except for the amount of any mandatory or optional payment required or permitted rental loss insurance applicable to the period prior to the closing date, which shall be paid to and retained by Borrower Seller). Until the Closing, Seller agrees to Lender at maintain the maturity existing insurance coverage and until Closing all risk of the Note. The numerator of the fraction loss shall be the collateral value (as set forth on the applicable Note) of the item and the denominator shall be the aggregate collateral value of all items under the Note. Upon the making of such payments, Lender shall release such item of Collateral from its lien hereunderupon Seller.

Loss or Damage. Borrower assumes the entire risk In case of loss or damage by fire or otherwise to the Collateral through useReal Property or any part thereof, operation Borrower will forthwith notify Lender of same and Lender may make proof of such loss if the same is not promptly made by Borrower or otherwiseif Lender deem it desirable to do so. Borrower hereby indemnifies and holds harmless Lender from and against all claimsis authorized to adjust, loss of Loan payments, costs, damagescollect, and expenses relating to or resulting from any losscompromise, damage or destruction of the Collateral, any such occurrence being hereinafter called a "Casualty Occurrence." No later than the first payment date following such Casualty Occurrence, or, if there is no such payment date, no later than thirty (30) days after such Casualty Occurrence, Borrower shall, at its election, either: (a) repair the Collateral returning it to good operating condition, or (b) replace the Collateral with Collateral acceptable to Lender in its reasonable discretion, all claims under insurance policies covering the loss in good condition and repair taking all steps required by Lender question. All such insurance proceeds otherwise payable to perfect Lender's first priority security interest therein, which replacement Collateral Borrower shall be paid directly and solely to Lender and each insurance company is authorized and directed to make such payment directly and solely to Lender, and the insurance policies shall so stipulate. Notwithstanding anything to the contrary herein, provided no Event of Default has occurred, Borrower shall be entitled to compromise and settle, and retain the insurance proceeds from, any casualty loss of $100,000.00 or less as to an insured casualty loss for any given parcel of the Real Property but not to exceed an aggregate of $500,000.00 for the entire Property so long as Borrower provides written notice to Lender and uses any proceeds and any additional funds as may be required to fully restore the portion of the Property at issue. All insurance proceeds may, subject to the terms sentence immediately below, be applied either to the reduction of the indebtedness under this Agreement and the Notes, without prepayment premium or penalty of any kind, or to the restoration, repair, replacement or rebuilding of the portion of the Real Property so damaged in such manner as Lender may determine, and any application thereof to the indebtedness shall not release or relieve any Borrower from making the payments or performing the other agreements and obligations herein required until the indebtedness is paid in full. If and only so long as no Event of Default has occurred and is continuing hereunder and provided that the insurance proceeds, when combined with the portion of this Security AgreementLoan not yet disbursed, or are sufficient in Lender’s judgment, after first deducting and paying the expenses, if any, incurred by Lender in the collection of the proceeds Loan Agreement Loan Nos. 196914 and 196915 Gladstone Land Portfolio 75738955.8 0053564-00150 of the insurance, to otherwise pay all costs and expenses relating thereto and to this Loan (cincluding the payment of interest and other carrying costs) on the first day payment is due on any Note following the Casualty Occurrence, or if there is no such proceeds are not sufficient as above provided, provided that Borrower deposit with Lender, the amount of such deficiency, as determined by Lender within ten (10) Business Days of demand therefor and further provided that the Borrower shall not claim that, notwithstanding such payment dateto Lender, thirty (30) days after it had no liability to pay any or some portion of such Casualty Occurrenceproceeds to Lender, pay then the balance of the proceeds, plus any amounts deposited by Borrower, will be held and disbursed by Lender, from time to Lender an amount equal to time, for the Balance Due (purpose of the repair, restoration, building or rebuilding of the Real Property in accordance with Lender’s customary disbursement procedures as defined below) for each lost or damaged item of Collateral. The Balance Due for each such item is the sum of: (i) all amounts for each item which may be then due or accrued to the payment date, plus (ii) as of such payment date, an amount equal to the product of the fraction specified below times the sum of all remaining payments under the respective Note, including the amount of any mandatory or optional payment required or permitted to be paid by Borrower to Lender at the maturity of the Note. The numerator of the fraction shall be the collateral value (as set forth on the applicable Note) of the item and the denominator shall be the aggregate collateral value of all items under the Note. Upon the making of such payments, Lender shall release such item of Collateral from its lien hereunderin effect.

Loss or Damage. Borrower assumes the entire risk (a) Event of loss Loss with Respect to the Collateral through useAircraft. Upon the occurrence of any Event of Loss with respect to the Airframe and/or Aircraft, operation or otherwise. Borrower hereby indemnifies and holds harmless Lender from and against all claims, loss of Loan payments, costs, damages, and expenses relating to or resulting from any loss, damage or destruction Lessee shall notify Lessor within five (5) days of the Collateraldate thereof. On (i) the second (2nd) Basic Rent Date immediately following the date of such notice, any or (ii) if such occurrence being hereinafter called a "Casualty Occurrence." No later than Event of Loss occurs after the first payment date following such Casualty OccurrenceLast Basic Rent Date, or, if there is no such payment date, no later than thirty within sixty (3060) days after such Casualty Occurrence, Borrower shall, at its election, either: notice (aany such date described in subclause (i) repair the Collateral returning it to good operating condition, or (bii) replace above the Collateral with Collateral acceptable "Casualty Payment Date"), Lessee shall pay to Lender in its reasonable discretionLessor any Rent then due, in good condition and repair taking all steps required by Lender to perfect Lender's first priority security interest thereinplus the Casualty Value of the Aircraft determined as of the Casualty Payment Date, which replacement Collateral (but if the Casualty Payment Date is after the last Basic Rent Date, the Casualty Value for such date shall be subject to the terms of this Security Agreement, or (c) on the first day payment is due on any Note following the Casualty Occurrence, or if there is no such payment date, thirty (30) days after such Casualty Occurrence, pay to Lender an amount equal to the Balance Due Lessor's Cost multiplied by the applicable percentage set forth on Schedule No. 3 for the last Basic Rent Date or the corresponding Basic Rent number), together with interest at the Late Payment Rate for the period (if any) from the Casualty Payment Date through the date of payment. Upon making the applicable payment required hereby, Lessee's obligation to pay further Basic Rent for the Aircraft subsequent to such payment shall cease, but Lessee shall remain liable for, and pay as defined below) for each lost or damaged item and when due, all Supplemental Rent. If recoverable, Lessor shall be entitled to recover possession of Collateralthe Aircraft and to any salvage value in excess of the Casualty Value paid to Lessor, but subject to the requirements of any third party insurance carrier in order to settle an insurance claim. The Balance Due for each such item is the sum of: (i) Lessor shall be entitled to receive and retain all amounts for each item which payable by the Manufacturer with respect to a Return to Manufacturer or by any governmental authority with respect to any Requisition of Use, as the case may be, except that such amounts received in good collected funds shall be then due or accrued applied against Lessee's obligation to the payment datepay Casualty Value or, plus so long as no Event of Default has occurred, remitted to Lessee (ii) as of such payment date, an amount equal up to the product of the fraction specified below times the sum of all remaining payments under the respective Note, including the amount of any mandatory or optional payment required or permitted to be the Casualty Value paid by Borrower Lessee to Lender at the maturity of the NoteLessor in good and indefeasible funds). The numerator of the fraction Lessor shall be the collateral value (as set forth on the applicable Note) under no duty to Lessee to pursue any claim against any Person in connection with an Event of the item and the denominator shall be the aggregate collateral value of all items under the Note. Upon the making of such payments, Lender shall release such item of Collateral from its lien hereunderLoss.

Loss or Damage. Borrower assumes the entire risk (a) Event of loss Loss with Respect to the Collateral through useAircraft. Upon the occurrence of ------------------------------------------ any Event of Loss with respect to the Airframe and/or Aircraft, operation or otherwise. Borrower hereby indemnifies and holds harmless Lender from and against all claims, loss of Loan payments, costs, damages, and expenses relating to or resulting from any loss, damage or destruction Lessees shall notify Lessor within five (5) days of the Collateraldate thereof. On (i) the next Basic Rent Date following the date of such notice, any or (ii) if such occurrence being hereinafter called a "Casualty Occurrence." No later than Event of Loss occurs after the first payment date following such Casualty OccurrenceLast Basic Rent Date, or, if there is no such payment date, no later than within thirty (30) days after such Casualty Occurrence, Borrower shall, at its election, either: notice (aany such date described in clause (i) repair the Collateral returning it to good operating condition, or (bii) replace above, the Collateral with Collateral acceptable "Casualty Payment ---------------- Date"), ---- SUNTRUST LEASING CORPORATION -------------------------------------------------------------------------------- Lessees shall pay to Lender in its reasonable discretionLessor the Basic Rent payable as of the Casualty Payment Date, in good condition and repair taking all steps required by Lender to perfect Lender's first priority security interest thereinany other Rent then due, which replacement Collateral plus the Casualty Value of the Aircraft determined as of the Casualty Payment Date (but if the Casualty Payment Date is after the last Basic Rent Date, the Casualty Value for such date shall be subject to the terms of this Security Agreement, or (c) on the first day payment is due on any Note following the Casualty Occurrence, or if there is no such payment date, thirty (30) days after such Casualty Occurrence, pay to Lender an amount equal to the Balance Due Lessor's Cost multiplied by the applicable percentage set forth on Schedule No. 3 for the last Basic Rent Date or the corresponding Basic Rent number), together with interest at the Late Payment Rate for the period (if any) from the Casualty Payment Date through the date of payment. Upon making the applicable payment required hereby, Lessees' obligation to pay further Basic Rent for the Aircraft subsequent to such payment shall cease, but each Lessee shall remain liable for, and pay as defined below) for each lost or damaged item and when due, all Supplemental Rent. If recoverable, as between Lessor and Lessees, Lessees shall be entitled to recover possession of Collateralthe Aircraft and to any salvage value in excess of the Casualty Value paid to Lessor, but subject to the requirements of any third party insurance carrier in order to settle an insurance claim. The Balance Due for each such item is the sum of: (i) Lessor shall be entitled to receive and retain all amounts for each item which payable by the Manufacturer with respect to a Return to Manufacturer or by any governmental authority with respect to any Requisition of Use, as the case may be, except that such amounts received in good collected funds shall be then due applied against Lessees' obligation to pay Casualty Value or, so long as no Event of Default has occurred, remitted to either or accrued to the payment date, plus (ii) as of such payment date, an amount equal to the product both of the fraction specified below times the sum of all remaining payments under the respective Note, including Lessees (up to the amount of any mandatory or optional payment required or permitted to be the Casualty Value paid by Borrower Lessees to Lender at the maturity of the NoteLessor in good and indefeasible funds). The numerator of the fraction Lessor shall be the collateral value (as set forth on the applicable Note) under no duty to Lessees to pursue any claim against any Person in connection with an Event of the item and the denominator shall be the aggregate collateral value of all items under the Note. Upon the making of such payments, Lender shall release such item of Collateral from its lien hereunderLoss.

Loss or Damage. Borrower (a) Lessee hereby assumes and is solely responsible for, during the term of the Lease and thereafter during any storage period in accordance with Section 6 until returned as provided for herein, the entire risk of loss to the Collateral through use, operation and or otherwise. Borrower hereby indemnifies and holds harmless Lender from and against all claims, loss of Loan payments, costs, damages, the Equipment and expenses relating to for each and every accident or hazard resulting from any therefrom and all losses and damages associated therewith howsoever arising. (b) In the event of the total loss, destruction, theft or damage or destruction beyond repair (determined without reference to the remaining term with respect thereto) of the Collateral, Equipment or any such occurrence being hereinafter called Item during the period referred to the preceding subsection 8(a) (a "Casualty Occurrence." No later than the first payment date following such Casualty Occurrence"), or, if there is no such payment date, no later than thirty (30) days after such Casualty Occurrence, Borrower shall, at its election, either: (a) repair the Collateral returning it Lessee will pay to good operating condition, or (b) replace the Collateral with Collateral acceptable to Lender in its reasonable discretion, in good condition and repair taking all steps required by Lender to perfect Lender's first priority security interest therein, which replacement Collateral shall be subject to the terms of this Security Agreement, or (c) Lessor on the first day payment is earlier of the next due on any Note date for rent following the Casualty Occurrence, Occurrence or on the last day of the term with respect to such Equipment (or if there is no such payment datethe term has expired or has been canceled, thirty (30) days after such the Casualty Occurrence, pay to Lender ) an amount equal to the Balance Due (as defined below) for each lost or damaged item of Collateral. The Balance Due for each such item is the sum of: (i) all amounts for each item which may be rent then due or accrued to the payment date, plus (ii) as of such payment date, an amount equal to the product Stipulated Loss Value of such Equipment as of such due date. Upon payment of such amounts, and provided no default exists hereunder, Lessee will be entitled to recover possession of such Item and title thereto will vest in Lessee free and clear of the fraction specified below times right and interest of Lessor. (c) In the sum event of damage to any Item of Equipment which does not amount to a Casualty Occurrence, Lessee will give prompt notice of such damage to Lessor and, at Lessee's sole cost and expense, Lessee will promptly repair such Item, restoring it to its previous condition and the condition assuming Lessee had met all remaining payments under the respective Noteof its obligations required for maintenance hereunder. Provided Lessee is not in breach or default of this Lease, including the amount any proceeds of insurance received by Lessor with respect to any mandatory or optional payment required or permitted to such loss will be paid over by Borrower Lessor to Lender at Lessee or vendor as Lessee designates to the maturity of the Noteextent necessary to reimburse Lessee for costs incurred and paid by Lessee in repairing such damaged Equipment, but only upon evidence satisfactory to Lessor that such repairs have been accomplished. The numerator of the fraction shall be the collateral value (as set forth on the applicable Note) of the item and the denominator shall be the aggregate collateral value of all items under the Note. Upon the making of such payments, Lender shall release such item of Collateral from its lien hereunder.EXHIBIT 10.3

Loss or Damage. Borrower assumes the entire risk of loss to the Collateral through use, operation or otherwise. Borrower hereby indemnifies and holds harmless Lender from and against all claims, loss of Loan payments, costs, damages, and expenses relating to or resulting from any loss, damage or destruction of the Collateral, any such occurrence being hereinafter called a "Casualty Occurrence." No later than the first payment date following such Casualty Occurrence, or, if there is no such payment date, no later than thirty (30) days after such Casualty Occurrence, Borrower shall, at its election, either: (a) repair the Collateral returning it to good operating condition, or (b) replace the Collateral with Collateral acceptable to Lender in its reasonable discretion, in good condition and repair taking all steps required by Lender to perfect Lender's first priority security interest therein, which replacement Collateral shall be subject to the terms of this Security Agreement, or (c) on the first day payment is due on any Note following the Casualty Occurrence, or if there is no such payment date, thirty (30) days after such Casualty Occurrence, pay to Lender an amount equal to the Balance Due (as defined below) for each lost or damaged item of Collateral. The Balance Due for each such item is the sum of: (i) all amounts for each item which may be then due or accrued to the payment date, plus (ii) as of such payment date, an amount equal to the product of the fraction specified below times the sum of all remaining payments under the respective Note, including the amount of any mandatory or optional payment required or permitted to be paid by Borrower to Lender at the maturity of the Note. The numerator of the fraction shall be the collateral value (as set forth on the applicable Note) of the item and the denominator shall be the aggregate collateral value of all items under the Note. Upon the making of such payments, Lender shall release such item of Collateral from its lien hereunder.

Loss or Damage. Borrower assumes (a) You bear the entire risk of loss or damage to a Unit from the Collateral through use, operation time we purchase the Unit (or otherwise. Borrower hereby indemnifies and holds harmless Lender from and against all claims, loss of Loan payments, costs, damages, and expenses relating to or resulting from any loss, damage or destruction the beginning of the Collateral, any such occurrence being hereinafter called a "Casualty Occurrence." No later than the first payment date following such Casualty Occurrence, orLease Term, if there earlier) until the Unit is no such payment datereturned to us or purchased by you in accordance with this Lease. Should any loss or damage occur, no later than thirty (30) days after such Casualty Occurrence, Borrower shall, at its election, either: (a) repair you will not be released from your obligations under the Collateral returning it to good operating condition, Lease or any other Lease Document. (b) replace the Collateral with Collateral acceptable You will provide prompt, written notice to Lender in its reasonable discretion, in good condition and repair taking all steps required by Lender to perfect Lender's first priority security interest therein, which replacement Collateral shall be subject to the terms us of this Security Agreement, or (c) on the first day payment is due on any Note following the Casualty Occurrence, or if there is no such payment date, thirty (30) days after such Casualty Occurrence, pay to Lender an amount equal to the Balance Due Total Loss (as defined below) or any material damage to any Unit. Any such notice will include any damage reports provided to any governmental authority, an insurer, or the Supplier, and any documents pertaining to the repair of such damage, including copies of work orders and all invoices for each lost related charges. (c) Without limiting any other term in this Lease, you will promptly repair all damage that does not constitute a Total Loss, to restore the Unit to the condition required by this Lease. (d) A Unit has incurred a "Total Loss" upon: (i) the disappearance, theft or damaged item destruction or any other total loss of Collateralsuch Unit; (ii) damage to the Unit that is uneconomical to repair; or (iii) the condemnation, confiscation, or other taking of title to or use of a Unit or the imposition of any lien on such Unit by any governmental authority. The Balance Due On the next Rent due date following a Total Loss (a "Loss Payment Date"), you will pay us the Monthly Rent due on that date plus the Casualty Loss Value of the Unit with respect to which the Total Loss has occurred (the “Lost Units”), together with any Other Payments due with respect to the Lost Units. Until such payment is made, you will continue to pay us the Monthly Rent on the due dates set forth in Section 4. Upon making the full payment required on the Loss Payment Date, your obligation to pay future Monthly Rent on the Lost Units will terminate, but you will remain liable for each such item is all Monthly Rent and all Other Payments on any remaining Units. Furthermore, upon receipt of the full payment required on the Loss Payment Date, we convey to you all of our right, title, and interest in the Lost Units, "AS IS WHERE IS", but subject to the requirements of any third party insurance carrier in order to settle an insurance claim. “Residual Value” means the future fair market value of a Unit at the end of the Lease Term (determined at Lease inception). "Casualty Loss Value" means the sum of: (i) the discounted present value of all amounts unpaid future Rent for each item which may be then due or accrued to the payment date, plus Lost Units; (ii) the discounted present value of the Lost Unit’s Residual Value as determined by us; and (iii) all other amounts then due under this Lease with respect to the Lost Units (including all Other Payments then owing and unpaid). If the Total Loss occurs after the final Rent due date of the Lease Term, the Casualty Loss Value will be determined as of the last Monthly Rent due date during the Lease Term. (e) We are not required to pursue any claim against any person in connection with a Total Loss or other loss or damage. (f) If we receive a payment under an insurance policy required under this Lease in connection with any Total Loss or other loss or damage to a Unit, and such payment dateis both unconditional and indefeasible, then provided you have complied with the applicable provisions of this section, we will either (i) ) if the payment results from a Total Loss, send you proceeds up to an amount equal to the product of Casualty Loss Value you previously paid us, or credit the fraction specified below times proceeds against any amounts you owe us or (ii) if the sum of all remaining payments under the respective Notepayment results from repairs made pursuant to Section 10(c), including send you proceeds up to an amount equal to the amount of any mandatory or optional payment required or permitted to be paid by Borrower to Lender at the maturity your actually incurred costs of the Note. The numerator of the fraction shall be the collateral value (as set forth on the applicable Note) of the item and the denominator shall be the aggregate collateral value of all items under the Note. Upon the making of such payments, Lender shall release such item of Collateral from its lien hereunderrepair.

Loss or Damage. Borrower assumes the entire shall bear all risk of loss damage, loss, theft, destruction, condemnation or seizure with respect to the Collateral, and no damage, loss, theft, destruction of, condemnation or seizure with respect to the Collateral through useor any part thereof shall affect any obligation of Borrower under the Agreement, operation or otherwisewhich shall continue in full force and effect. Borrower hereby indemnifies and holds harmless shall advise Lender from and against all claimsin writing within ten (10) days of the occurrence of any damage, loss of Loan payments, costs, damages, and expenses relating to or resulting from any loss, damage theft, destruction or destruction governmental commandeering of any Item (an “Event of Loss”) and of the Collateralcircumstances and extent of such Event of Loss. Borrower shall, any at Lender’s option, either (a) replace such occurrence being hereinafter called a "Casualty Occurrence." No later than the first payment date following such Casualty Occurrence, or, if there is no such payment date, no later than thirty (30) Item with collateral acceptable to Lender within 30 days after the Event of Loss and such Casualty Occurrencereplacement collateral shall automatically become Collateral subject to Lender’s security interest under the Agreement or (b) pay down the Obligations by an amount representing the unpaid portion of the Obligations funded in reliance of the affected Items as reasonably determined by Lender. Any insurance or condemnation proceeds received shall be paid to Lender and credited to Borrower’s obligation under this paragraph. Whenever the Collateral is damaged and such damage can be repaired, Borrower shall, at its electionexpense, either: (a) repair promptly effect such repairs as Lender shall deem necessary for compliance with paragraph 7, above. Proceeds of insurance shall be paid to Lender with respect to such reparable damage to the Collateral returning it and shall, at the election of Lender, be applied either to good operating conditionthe repair of the Collateral by payment by Lender directly to the party completing the repairs, or (b) replace the Collateral with Collateral acceptable to Lender in its reasonable discretion, in good condition and repair taking all steps required by Lender to perfect Lender's first priority security interest therein, which replacement Collateral shall be subject to the terms reimbursement of this Security AgreementBorrower for the cost of such repairs; provided, or (c) on the first day payment is due on any Note following the Casualty Occurrencehowever, or if there is that Lender shall have no obligation to make such payment date, thirty (30) days after or any part thereof until receipt of such Casualty Occurrence, pay to evidence as Lender an amount equal to the Balance Due (as defined below) for each lost or damaged item of Collateral. The Balance Due for each shall deem satisfactory that such item is the sum of: (i) all amounts for each item which repairs have been completed and further provided that Lender may be then due or accrued apply such proceeds to the payment date, plus (ii) as of such payment date, an amount equal any installment or other sum due or to the product of the fraction specified below times the sum of all remaining payments become due under the respective Note, including the amount of any mandatory or optional payment required or permitted to be paid by Borrower to Lender Agreement if at the maturity time such proceeds are received by Lender there shall have occurred and be continuing any Event of the Note. The numerator Default or any event which with lapse of the fraction shall be the collateral value (as set forth on the applicable Note) time or notice, or both, would become an Event of the item and the denominator shall be the aggregate collateral value of all items under the Note. Upon the making of such payments, Lender shall release such item of Collateral from its lien hereunderDefault.

Loss or Damage. Borrower assumes the entire risk In case of loss or damage by fire or otherwise to the Collateral through useany Facility or any part thereof, operation or otherwise. Borrower hereby indemnifies and holds harmless Lender from and against all claims, loss of Loan payments, costs, damageswill immediately notify Lender, and expenses relating Lender may make proof of such loss if the same is not promptly made by Borrower or if Lender deems it desirable to or resulting from any lossdo so. Lender is authorized to adjust, damage or destruction of the Collateralcollect, any such occurrence being hereinafter called a "Casualty Occurrence." No later than the first payment date following such Casualty Occurrenceand compromise, or, if there is no such payment date, no later than thirty (30) days after such Casualty Occurrence, Borrower shall, at its election, either: (a) repair the Collateral returning it to good operating condition, or (b) replace the Collateral with Collateral acceptable to Lender in its reasonable discretion, all claims under insurance policies covering the loss in good condition question. All insurance proceeds in excess of Seven Million Dollars ($7,000,000.00) per event or series of related events, will be paid directly and repair taking all steps required by solely to Lender and Borrower acknowledges that each insurance company is authorized and directed to perfect make such payment directly and solely to Lender's first priority security interest therein, which replacement Collateral shall be and the insurance policies will so stipulate. All insurance proceeds may, subject to the terms sentence immediately below, be applied either to the reduction of the Obligations under this Agreement or to the restoration, repair, replacement or rebuilding of the portion of the Facility so damaged in such manner as Lender may determine, and any application thereof to the indebtedness will not release or relieve Borrower from making the payments or performing the other agreements and obligations herein required until the Obligations are paid in full. If no Event of Default has occurred and is continuing hereunder and provided that (a) the insurance proceeds, when combined with the portion of this Security AgreementLoan not yet disbursed, are sufficient in Lender’s judgment, after first deducting and paying the expenses, if any, incurred by Lender in the collection of the proceeds of the insurance, to otherwise pay all costs and expenses relating to such collection and to this Loan (including the payment of interest and other carrying costs) or (cb) on the first day payment is due on any Note following the Casualty Occurrenceif such proceeds are not sufficient as above provided, or if there is no such payment dateprovided that Borrower deposits with Lender, thirty (30) days after such Casualty Occurrence, pay to Lender an amount equal to the Balance Due (as defined below) for each lost or damaged item of Collateral. The Balance Due for each such item is the sum of: (i) all amounts for each item which may be then due or accrued to the payment date, plus (ii) as of such payment date, an amount equal to the product of the fraction specified below times the sum of all remaining payments under the respective Note, including the amount of such deficiency, as determined by Lender within ten (10) business days of demand therefor and further provided that the insurance company will not claim that, notwithstanding such payment to Lender, it had no liability to pay any mandatory or optional payment required or permitted some portion of such proceeds to be paid by Borrower to Lender at Borrower, then the maturity balance of the Note. The numerator proceeds, plus any amounts deposited by Borrower, will be held and disbursed by Lender, from time to time, for the purpose of the fraction shall be the collateral value (as set forth on the applicable Note) repair, restoration, building or rebuilding of the item and the denominator shall Facility in accordance with such procedures as may be the aggregate collateral value of all items under the Note. Upon the making of such payments, Lender shall release such item of Collateral from its lien hereunderestablished by Lender.

Loss or Damage. Borrower assumes the entire risk of loss to the Collateral through use, operation or otherwise. Borrower hereby indemnifies and holds harmless Lender from and against all claims, loss of Loan payments, costs, damages, and expenses relating to or resulting from any loss, damage or destruction of the Collateral, any such occurrence being hereinafter called a "Casualty Occurrence." No later than the first payment date following such Casualty Occurrence, or, if there is no such payment date, no later than thirty (30) days after such Casualty Occurrence, Borrower shall, at its election, either: (a) repair the Collateral returning it to good operating condition, or (b) replace the Collateral with Collateral acceptable to Lender in its reasonable discretion, in good condition and repair taking all steps required by Lender to perfect Lender's first priority security interest therein, therein and (which replacement Collateral shall be subject to the terms of this Security Agreement), or (c) on the first day payment is due on any Note following the Casualty Occurrence, or if there is no such payment date, thirty (30) days after such Casualty Occurrence, pay to Lender an amount equal to the Balance Due (as defined below) for each lost or damaged item of Collateral. The Balance Due for each such item is the sum of: (i) all amounts for each item which may be then due or accrued to the payment date, plus (ii) as of such payment date, an amount equal to the product of the fraction specified below times the sum of all remaining payments under the respective Note, including the amount of any mandatory or optional payment required or permitted to be paid by Borrower to Lender at the maturity of the Note. The numerator of the fraction shall be the collateral value (as set forth on the applicable Note) of the item and the denominator shall be the aggregate collateral value of all items under the Note. Upon the making of such payments, Lender shall release such item of Collateral from its lien hereunder.

Loss or Damage. Borrower assumes the entire risk of loss to the Collateral through use, operation or otherwise. Borrower hereby indemnifies and holds harmless Lender from and against all claims, loss of Loan payments, costs, damages, and expenses relating to or resulting from any loss, damage or destruction of the Collateral, any such occurrence being hereinafter called a "“Casualty Occurrence." No later than the first payment date following such ” Notwithstanding any Casualty Occurrence, orthe Loan to which such casualtied item of Collateral is subject shall continue in full force and effect without any abatement in the monthly payment due. Borrower shall, if there is no such payment dateat its election, (a) no later than thirty (30) days after such Casualty Occurrence, Borrower shall, at its election, either: (a) Occurrence repair the Collateral returning it to good operating condition, or (b) no later than thirty (30) days after such Casualty Occurrence replace the Collateral with Collateral acceptable to Lender in its reasonable discretion, in good condition and repair taking all steps required by Lender to perfect Lender's ’s first priority security interest therein, which replacement Collateral shall be subject to the terms of this Security Agreement, or (c) on the first day next regular monthly payment is due on any Note following the Casualty Occurrencedate which falls after such thirty (30) days, or if there is no such payment date, thirty (30) days after such Casualty Occurrence, Occurrence pay to Lender an amount equal to the Balance Due (as defined below) for each lost or damaged item of Collateral. The Balance Due for each such item is the sum of: (i) all amounts for each item which may be then due or accrued to the payment date, plus (ii) as of such payment date, an amount equal to the product of the fraction specified below times the sum of all remaining payments under the respective Note, including the amount of any mandatory or optional payment required or permitted to be paid by Borrower to Lender at the maturity of the NoteNote discounting to present value the amounts in (ii) at a rate of 6% per annum compounded monthly on the basis of a 360 day year (“Discount Rate”). The numerator of the fraction shall be the collateral value (as set forth on the applicable Note) of the item and the denominator shall be the aggregate collateral value of all items under the Note. Upon the making of such payments, Lender shall release such item of Collateral from its lien hereunder.

Loss or Damage. Borrower assumes the entire risk In case of loss or damage by fire or otherwise to the Collateral through useReal Property or any part thereof, operation Borrower will forthwith notify Lender of same and Lender may make proof of such loss if the same is not promptly made by Borrower or otherwiseif Lender deem it desirable to do so. Borrower hereby indemnifies and holds harmless Lender from and against all claimsis authorized to adjust, loss of Loan payments, costs, damagescollect, and expenses relating to or resulting from any losscompromise, damage or destruction of the Collateral, any such occurrence being hereinafter called a "Casualty Occurrence." No later than the first payment date following such Casualty Occurrence, or, if there is no such payment date, no later than thirty (30) days after such Casualty Occurrence, Borrower shall, at its election, either: (a) repair the Collateral returning it to good operating condition, or (b) replace the Collateral with Collateral acceptable to Lender in its reasonable discretion, all claims under insurance policies covering the loss in good condition and repair taking all steps required by Lender question. All such insurance proceeds otherwise payable to perfect Lender's first priority security interest therein, which replacement Collateral Borrower shall be paid directly and solely to Lender and each insurance company is authorized and directed to make such payment directly and solely to Lender, and the insurance policies shall so stipulate. Notwithstanding anything to the contrary herein, provided no Event of Default has occurred, Borrower shall be entitled to compromise and settle, and retain the insurance proceeds from, any casualty loss of $100,000.00 or less as to an insured casualty loss for any given parcel of the Real Property but not to exceed an aggregate of $500,000.00 for the entire Property so long as Borrower provides written notice to Lender and uses any proceeds and any additional funds as may be required to fully restore the portion of the Property at issue. All insurance proceeds may, subject to the terms sentence immediately below, be applied either to the reduction of the indebtedness under this Agreement and the Notes, without prepayment premium or penalty of any kind, or to the restoration, repair, replacement or rebuilding of the portion of the Real Property so damaged in such manner as Lender may determine, and any application thereof to the indebtedness shall not release or relieve any Borrower from making the payments or performing the other agreements and obligations herein required until the indebtedness is paid in full. If and only so long as no Event of Default has occurred and is continuing hereunder and provided that the insurance proceeds, when combined with the portion of this Security AgreementLoan not yet disbursed, or are sufficient in Lender’s judgment, after first deducting and paying the expenses, if any, incurred by Lender in the collection of the proceeds of the insurance, to otherwise pay all costs and expenses relating thereto and to this Loan (cincluding the payment of interest and other carrying costs) on the first day payment is due on any Note following the Casualty Occurrence, or if there is no such proceeds are not sufficient as above provided, provided that Borrower deposit with Lender, the amount of such deficiency, as determined by Lender within ten (10) Business Days of demand therefor and further provided that Borrower shall not claim that, notwithstanding such payment dateto Lender, thirty (30) days after it had no liability to pay any or some portion of such Casualty Occurrenceproceeds to Lender, pay then the balance of the proceeds, plus any amounts deposited by Borrower, will be held and disbursed by Lender, from time to Lender an amount equal to time, for the Balance Due (purpose of the repair, restoration, building or rebuilding of the Real Property in accordance with Lender’s customary disbursement procedures as defined below) for each lost or damaged item of Collateral. The Balance Due for each such item is the sum of: (i) all amounts for each item which may be then due or accrued to the payment datein effect. Loan Agreement Gladstone 2020 Facility Loan Nos. 196915, plus (ii) as of such payment date, an amount equal to the product of the fraction specified below times the sum of all remaining payments under the respective Note, including the amount of any mandatory or optional payment required or permitted to be paid by Borrower to Lender at the maturity of the Note. The numerator of the fraction shall be the collateral value (as set forth on the applicable Note) of the item and the denominator shall be the aggregate collateral value of all items under the Note. Upon the making of such payments, Lender shall release such item of Collateral from its lien hereunder.198677 & 200539 105131550 0053564-00437

Loss or Damage. Borrower assumes Lessee shall bear the entire risk of loss any disappearance of, damage to the Collateral through use, operation or otherwise. Borrower hereby indemnifies and holds harmless Lender from and against all claims, loss of Loan payments, costs, damages, and expenses relating to or resulting any item of Equipment from any loss, damage or destruction of the Collateral, any such occurrence being hereinafter called cause whatsoever (a "Casualty Occurrence." No later than the first payment date following such "). Lessee shall promptly notify Lessor in writing of any Casualty Occurrence. Upon a Casualty Occurrence: (a) if the affected equipment is repairable, orLessee shall, at Lessee's expense, promptly restore the Equipment to good repair, condition and working order in accordance with the manufacturer's recommendations and to the reasonable satisfaction of Lessor; or (b) if there the affected Equipment is no an actual or constructive total loss or otherwise is not repairable, Lessee shall pay to Lessor on or before the next Periodic Rent Payment Date (such payment date, no later than thirty (30the "Casualty Payment Date") days after such Casualty Occurrence, Borrower shall, at its election, either: (a) repair the Collateral returning it to good operating condition, or (b) replace the Collateral with Collateral acceptable to Lender in its reasonable discretion, in good condition and repair taking all steps required by Lender to perfect Lender's first priority security interest therein, which replacement Collateral shall be subject to the terms of this Security Agreement, or (c) on the first day payment is due on any Note following the Casualty Occurrence, or if there is no such payment date, thirty (30) days after such Casualty Occurrence, pay to Lender an amount equal to the Balance Due (as defined below) for each lost or damaged item sum of Collateral. The Balance Due for each such item is the sum of: (i) all amounts for each item due and unpaid under the applicable Lease as of the Casualty Payment Date (including all Periodic Rent payments in respect of such Equipment, which may shall be then due or accrued pro rated to the payment dateCasualty Payment Date, and any indemnity obligations), plus (ii) as the present value of all future Periodic Rent payments for such payment dateEquipment, discounted on an amount annual basis at a discount rate equal to the product ask yield to maturity of the fraction specified below times U.S. Treasury Xxxx issue maturing in 180 days (or the sum issue maturing closest thereto), as published in the Wall Street Journal for the immediately preceding Rent Payment Date (or the next preceding business day if such date is not a business day), which Lessee agrees is a commercially reasonable rate (the "Discount Rate") from the scheduled payment dates to the Casualty Payment Date, plus (iii) the present value of all remaining payments the greater of (x) the anticipated residual value of the affected Equipment at the end of the relevant Lease Term, as determined by the Lessor for purposes of calculating the relevant Periodic Rent and Purchase Option Price or (y) the then expected fair market value of the affected Equipment at the end of the relevant Lease Term, in each case discounted on an annual basis at the Discount Rate from the expiration of the Lease Term to the Casualty Payment Date; provided, that if the Purchase Option Price is a fixed amount, the value calculated pursuant to the foregoing clause (iii) shall not exceed the present value of such fixed Purchase Option Price, discounted on an annual basis at the Discount Rate from the expiration date of the relevant Lease term to the Casualty Payment Date, if Lessee is required to repair the affected Equipment pursuant to clause (a) of the foregoing sentence, the insurance proceeds actually received by Lessor, if any, pursuant to Section 8 hereof shall be applied first to pay any amounts then due under this Agreement or any Lease and then shall be paid to Lessee upon proof satisfactory to Lessor that such repair has been completed as required herein. In the respective Noteevent Lessee is obligated to pay to Lessor the amounts set forth in clause (b) of the foregoing sentence, including Lessee shall be entitled to a credit against such amounts equal to the amount of any mandatory or optional insurance proceeds actually received by Lessor, if any, pursuant to Section 8 hereof on account of such Equipment and upon payment required or permitted to be paid by Borrower to Lender at the maturity in full of the Note. The numerator of the fraction shall be the collateral value (as all amounts set forth in such clause (b), Lessor shall assign to Lessee and Lessee's insurers, as their interests may appear, all of Lessor's interest in such Equipment on the applicable Note) of the item an as is, where is basis, without representation or warranty, express or implied, and the denominator shall be the aggregate collateral value of all items under the Note. Upon the making Lease in respect of such payments, Lender Equipment shall release such item of Collateral from its lien hereunderterminate.