RENEWABLE RENT TO OWN" MUSIC DEVELOPMENT AGREEMENT

1. INITIAL PAYMENT: The first monthly payment is due upon the completion of this agreement, payable in advance.

2. RENTAL PAYMENTS: Payment is due monthly on the contract date. You will only receive a monthly statement as a regular reminder when payment is not received by the due date; we do not bill. We recommend signing up for Automatic Monthly Payments with a card to ensure no payments are missed.  Payments will be applied first to late fees and any other charges due and then to sales tax and rental payments. Payments are applied to past due payments first, then to current payments. You are responsible for all monthly payments, even if you do not receive a bill. Rental fees are not contingent on practice, school schedules or time in the repair shop.

3. OTHER FEES: A late fee of $5.00 will be charged for each monthly payment that is 15 days past due. There are no other financing charges and there are no interest charges. A $25 fee will be applied to all bounced check payments.

4. REPAIR & REPLACEMENT PROGRAM: Lessee hereby agrees to assume liability against fire, theft or damage (reasonable wear accepted) throughout the rental period, unless Lessee elects the optional Repair & Replacement Program.

5. FRACTIONAL SIZE STRING POLICY: In a continuous rental program for a single student with a string instrument smaller than a full size, we will apply 100% of your principal payments on all fractional sized instruments towards a full size instrument of the same type.

6. RETURN OPTION/EARLY TERMINATION: Lessee may terminate this agreement at any time without penalty by returning the instrument in good condition, fair wear and tear accepted. Returning to our retail store directly is recommended. If you are unable to return to our store contact us for alternate return options. DO NOT LEAVE THE INSTRUMENT AT SCHOOL WITHOUT ADVANCE AUTHORIZATION FROM DAVID FRENCH MUSIC. Music teachers and third parties are not responsible for the return of instrument. Lessee is responsible for the instrument until it is returned to us.  All monthly rental payments and other charges must be paid to date at the time of return. Rental payments are not prorated and therefore cannot be refunded.

7. DISCOUNTED PURCHASE OPTION: Instrument may be purchased at any time for a 30% discount. This is calculated by deducting paid principal from the original instrument price on this contract, subtracting 30% from the balance and paying the difference plus applicable tax.

8. DEFAULT & REPOSSESSION: Non-payment of one month's rental shall terminate this agreement, and DAVID FRENCH MUSIC CO., INC. reserves the right to retain possession of the instrument on sight or demand. DAVID FRENCH MUSIC CO., INC. reserves the right to charge past due rental fees and late charges to your credit card using information provided to us. The lessee agrees to pay all costs and expenses incurred in collection including attorney's fees, collections and court costs.

9. TITLE: Title of ownership remains with DAVID FRENCH MUSIC CO., INC. through rental period. When regular payments equal the agreed purchase price of the instrument, title thereto will pass from David French Music co., Inc. to the lessee. If lessee declares bankruptcy, we retain title, and the instrument must be returned to us immediately.

COMPREHENSIVE REPAIR AND REPLACEMENT PROGRAM (R&R) (optional)

All new instruments leased or sold carry a manufacturer's limited warranty against defects from faulty materials or workmanship. In addition to this warranty David French Music Co., Inc. will provide the following protection, during the rental period, for an additional monthly charge. Repair and replacement fees paid during the lease do not apply to the purchase of the instrument. This comprehensive repair and replacement program with David French Music Co., Inc. is available only during the rental period and will not be provided when the lease ends. Failure to pay the repair and replacement fees will terminate the repair and replacement coverage automatically.

The instrument will be replaced with one of equal quality at no charge in case of loss by fire or theft. THEFT MUST BE REPORTED TO LAW ENFORCEMENT AUTHORITIES AND TO THE DAVID FRENCH MUSIC COMPANY WITHIN 48 HOURS AFTER DISCOVERY OF LOSS. Loss by fire must be reported to the fire department and to the David French Music Company within 48 hours of loss. Lessee will be required to furnish a certified copy of the report to the David French Music Company within 10 days.

All adjustments and repairs will be made to keep the instrument in proper playing condition, including replacement of parts. Coverage does not apply to willful or deliberate destruction by the Lessee nor the deterioration of appearance which does not affect the performance of the instrument, such as scratches, minor dents, and finish. Excluded from the coverage are drumheads, drumsticks, strings, replacement of expendable accessories, and routine cleaning of instruments. The David French Music Co., Inc., or approved affiliate, must perform all services.