Terms Of Agreement

Notice to the Lessee:

It is understood:

1. That I, the Lessee reserve the right to return the instrument to Dunkley Music, Boise or Dunkley Music, Twin Falls at any time without any further obligation; however, termination of this agreement will not release me from the obligation of paying all past due payments.

2. Repairs – Defects in workmanship or materials are warranted for 90 days. All labor costs for regulation and adjustment during this period are the responsibility of the Lessor. After the warranty period all repairs are the responsibility of the Lessee. Accounts with VIP maintenance must be current for covered repairs to be performed at no cost to you the Lessee.

3. Loss or Damage – The Lessee shall bear the entire risk of loss or damage to the instrument, unless maintenance plan is currently in effect. For the Maintenance plan to be in effect your account must be current. In some instances where the instrument is a total loss(vandalism, theft, fire, etc.) you must obtain a copy of a filed police report noting the loss of the instrument and fax or mail this to us, in order to have a replacement instrument assigned to you within your VIP Maintenance Plan.

4. Service Charge – If the Lessee fails to pay any payment to Lessor, within ten days of the due date. Lessor shall then add to the Lessee’s account a late charge of $10.00. If Lessor has to pick up the instrument or payment there will be a $25.00 service charge. Any returned checks shall cause a charge of $25.00 to be added to the Lessee’s account.

5. Default and Repossession – If the Lessee fails to pay when due any payment or other amount required herein to be paid by the Lessee, or if the Lessee fails to perform any other provision hereof within ten (10)days after Lessor shall have demanded in writing performance thereof, or if a petition is filed by or against the Lessee under the Bankruptcy Act, or if the Lessee has breached any other lease and agreement between the Lessor and the Lessee, Lessor, its successors, or assigns, shall have the right to exercise anyone or more of the following remedies: (i) Lessor may recover from the Lessee all payments and other amounts due hereunder, (ii) Lessor may take possession of any or all instruments wherever same may be located, without demand or notice, without any court order or other process of law, and without liability to Lessor for any damages occasioned by taking of possession, and without any liability to the school when picked up at school. Any such taking of possession shall constitute a termination of this agreement and shall not release the Lessee from the obligation of past due payments. (iii) Lessor may recover from the Lessee, with respect to any and all instruments, all payments and other amounts due and to become due, including attorney’s fees incurred in taking possession of the instrument.

6. The Lessee agrees that the title to the instrument remains at all times with the Lessor, and the Lessee receives use and possession of the instrument for successive specified terms so long asspecified rental payments are made on or before the due date, and customer fully complies with all agreements and conditions herein, and unless this agreement is terminated as provided herein.

7. Trade in Value – At any time the Lessee may trade to a similar band instrument and may apply half of all rental equity towards the newinstrument.

8. Removal – If the Lessee moves from the city and state of the above address, the Lessor, its successors, or assigns, shall have the right to exercise any one or more of the following: (i) Lessor may require the immediate payment in full of all amounts owing on the instrument, and any amounts hereafter they become due, (ii) Lessor may require the immediate return of the instrument to the Lessor, freight prepaid, (iii) Lessor may grant the Lessee the right to enjoy the conditions and agreements of this contract at the new address, city and state of the Lessee’s residence.

9. Termination and Purchase – Both parties reserve the right to terminate this Agreement at the end of any pay period. Lessee may do so by returning the instrument to Lessor PRIOR to the last day of the pay period.Termination is effective as of the first day of the month following the month in which Lessee returns the instrument in good working order. If Lessee pays in a timely manner all monthly payments and service charges, title will pass to Lessee. If Lessee wishes to purchase the instrument within the first 120 days, this rent-to-own agreement will be voided and all monthly payments made hereunder will be applied to the purchase price of the instrument as if this agreement was never executed.

INSTRUMENT RENTAL FEES ARE NOT PRORATED AND ARE NONREFUNDABLE