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<br />8. Disclaimer of Warranties. LESSOR MAKES NO WARRANTIES OR REPRESENTATIONS,
<br />EXPRESS OR IMPLIED, AS TO THE VALUE, DESIGN, CONDITION, MERCHANTABILITY OR
<br />FITNESS FOR A PARTICULAR PURPOSE OF THE EQUIPMENT.
<br />9. Assignment of Manufacturer's Warranties. Notwithstanding the foregoing, Lessor hereby
<br />agrees to assign to Lessee, solely for the purpose of making any such claim, all of Lessor's rights against the
<br />manufacturer or supplier of the Equipment for breach of warranty or other representation regarding the
<br />Equipment to the extent the same are assignable.
<br />6. Disclaimer of Damages. LESSOR EXPRESSLY DISCLAIMS ANY LIABILITY FOR
<br />CONSEQUENTIAL, SPECIAL OR INCIDENTAL DAMAGES. WHERE, DUE TO OPERATION OF
<br />LAW, CONSEQUENTIAL, SPECIAL OR INCIDENTAL DAMAGES CANNOT BE EXCLUDED,
<br />THEY ARE EXPRESSLY LIMITED IN AMOUNT TO ANY RENTAL PAYMENTS MADE
<br />HEREUNDER.
<br />7. Ownership of Equipment. Title to the Equipment is and shall remain solely and exclusively in
<br />Lessor. The Equipment shall remain personal property whether or not it becomes attached to any real
<br />property.
<br />8. Attorneys' Fees. In the event that any amounts due under this Lease are collected after maturity by
<br />or through an attorney at law, Lessee agrees to pay Lessor's reasonable attorneys' fees, court costs and other
<br />costs of collection.
<br />9. Liens, Fines and Taxes. Lessee shall keep the Equipment free and clear of all levies, liens and
<br />security interests and shall pay all fines, charges and taxes of any nature which may be imposed upon the
<br />ownership, leasing, rental, sale, purchase, possession or use of the Equipment, excluding all taxes on or
<br />measured by Lessor's net income but including taxes attributable to the lease term but not due and payable at
<br />the termination of the Lease.
<br />10. Indemnitv. Lessee shall indemnify and save Lessor harmless from and against any and all
<br />liabilities, obligations, losses, damages, claims, demands, penalties, costs and expenses, including
<br />reasonable attorneys' fees and expenses, of whatever kind and nature, arising from or related to the use,
<br />condition, operation, ownership, delivery, leasing, sale or return of the Equipment.
<br />11. Assignment or Sublease: Binding Effect. Without Lessor's prior written consent, Lessee shall not
<br />assign, transfer, pledge, or otherwise dispose of the Equipment, this Lease or any interest therein. Lessor
<br />may at any time without notice to Lessee assign, sell or encumber the Equipment, and/or any of its rights
<br />under this Lease. This Lease shall inure to the benefit of and be binding upon Lessor and Lessee and their
<br />respective heirs, legatees, personal representatives, successors and assigns.
<br />12. Default. Lessee shall be in default under this Lease upon the happening of any one of the following
<br />"Events of Default": (i) Lessee's failure to make any payment of rent within ten (10) days after the due date
<br />thereof; (ii) the institution by or against Lessee of proceedings under any bankruptcy, insolvency,
<br />reorganization or similar legislation; (iii) the making of any false or misleading statement, oral or written, by
<br />or on behalf of Lessee, or the omission by or on behalf of Lessee to state a material fact with respect to this
<br />Lease; or (iv) any other breach or failure of Lessee to observe or perform any of its obligations under this
<br />Lease provided that Lessor has given Lessee written notice of such breach or failure and Lessee has failed to
<br />cure such breach or failure within thirty (30) days of such notice. Default of any provision of this lease also
<br />shall be considered default on the Performance Agreement contemporaneously entered into by the parties,
<br />including Frontier's representation that it will continue to operate its North Carolina facilities during the
<br />term of the Performance Agreement.
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