TERMS AND CONDITIONS OF RENTAL1. The cash price of the instrument and number of payments to acquire ownership will be disclosed on the contract copy

accompanying the instrument at the time of delivery.2. Early Purchase Option: At any time after the Initial Payment, the Lessee may acquire ownership of the Instrument by exercising

an early buyout option. Please call Advance Music Center at (800) 660-8652 to obtain the current Early Purchase Option amount.3. Service necessitated by normal use is included while the Instrument is on rental and the account is paid up to date.4. No one other than NEMC or Advance Music Center may service or repair the Instrument.5. Lessee agrees to advise NEMC, in advance and in writing, of any change of Lessee's address or of the address at which the

Instrument shall thereafter be kept.6. Lessee agrees to properly care for the Instrument at all times. If Lessee wishes to return the Instrument at any time, Lessee must

call Advance Music Center (800) 660-8652 for instructions. Lessee is solely responsible for the proper return of the Instrument, as instructed, in good condition with reasonable wear and tear expected.

7. On other than stringed instruments, one exchange to another Instrument may be made during the first six (6) weeks of rental. The customer is responsible for the difference in rental if the second Instrument is in a more expensive group.

8. On any exchange, exchanges are made from NEMC's current available inventory selection and issued at the current price of the Instrument supplied. Lessee's account will be adjusted accordingly. In the event of an exchange, a new Agreement must be completed and signed by the Lessee.

9. In the event of any default NEMC may, at its option, terminate this Agreement by sending written notice of termination to Lessee at the last address provided to NEMC in writing by Lessee.

10. If a default should occur and is not immediately corrected, NEMC may take any and all appropriate actions, including the institution of legal proceedings, to collect the payment of Lessee's obligations and any other damages to which NEMC may be entitled, and Lessee agrees to pay NEMC all costs, including attorneys' fees associated with such actions.

11. The Instrument is, and at all times shall remain, the property of NEMC unless Lessee should purchase the Instrument under the provisions of this Agreement. The responsibility of NEMC is to provide the Instrument and services outlined in this Agreement and nothing further is indicated or implied.

12. A monthly payment which is more than fifteen (15) days late shall incur a late charge of $5.00.13. Any check returned as non-collectible shall incur a Returned Check Fee of $25.00.14. Should any payment required by this Agreement remain unpaid for a period of more than sixty (60) days after its due date, Lessor

may charge all amounts then due and owing by the Lessee, including Late Fees and any related charge authorized by this Agreement, directly to the Lessee’s credit card listed on this Agreement.

15. If any Monthly Rental Payment remains unpaid for more than sixty (60) days, the Lessee's right hereunder to return the Instrument shall, at NEMC's option, terminate. The Instrument, in such case, shall become the property of the Lessee and the entire unpaid portion of the purchase price shall become immediately due and payable.

16. If a default should occur and the Instrument has been returned, the account may be reinstated within 90 Days of the date of return. The account may be reinstated within 180 Days if 60% or more of the Total Cost has been paid. All amounts due and owing to NEMC, including collection fees, must be paid before the reinstatement may be made and the Instrument or a similar Instrument, in NEMC's opinion, is returned to the Lessor.

17. Repairs, other than those necessitated by intentional or negligent acts or omissions, are covered by the Damage Waiver Fee EXCEPT Lessee shall be responsible for the costs of repair or replacement of expendable accessories, which include cases, reeds, drum sticks, drum heads, lubricants, and mouthpieces. In the case of damage to, or loss of the Instrument, the Lessee is liable for the lesser of the Early Purchase Option price or the Fair Market Value of the Instrument, if and as of the time it is lost, stolen, or destroyed.

18. In the event of loss of the Instrument due to fire, burglary, or robbery, payment of the Fire/Burglary Waiver Fee discharges the Lessee from liability for the return of the instrument or payment of the remaining balance on the Instrument issued. LOSSES DUE TO MYSTERIOUS DISAPPEARANCES OR AS THE RESULT OF THE INSTRUMENT BEING MISPLACED OR LEFT UNATTENDED ARE EXCLUDED. In the event of a loss, NEMC will require a fire report, a police report, or an incident report within 30 days of the loss to substantiate the loss. A report must specifically list the musical instrument as one of the items stolen or destroyed. In the event of a theft, a police report will only be accepted if it establishes breaking and entering. Such waiver does not relieve the Lessee of liability for payment to NEMC of all amounts due and owing to NEMC immediately prior to the loss. In the event of a loss which is covered by the above waiver, the Lessee may obtain a replacement instrument of similar or equal brand, age, and condition, as determined by NEMC upon payment to NEMC of a Replacement Fee equal to 20% of the remaining balance due or $100.00, whichever is greater. The Replacement Fee does not apply towards the purchase of the instrument. Upon payment of the Replacement Fee and receipt of a replacement instrument, the terms, conditions, and remaining balance of the account which is the subject of this Agreement will apply to the replacement instrument.

19. To the extent allowable NEMC will transfer the unexpired portion of all warranties provided by the manufacturer, distributor or seller of the Instrument to Lessee at the time Lessee acquires ownership of the Instrument from NEMC.

20. Failure to perform any obligation required under this Agreement shall constitute default of this Agreement.21. Damage waiver for initial 2-month rental period is $5.00 for all instruments. Annual Fire & Burglary waiver is $5.00 for all

instruments. Monthly Damage waiver fees are $3.00 for Group 1 ($4.00 for trombones), $4.00 for Group 2, $4.75 for Group 3, and $6.00 for Group 4.

Thank you for choosing NEMC and our Licensed Affiliate Advance Music Center for your rental instrument. If you have any questions or need assistance, please call

Advance Music Center: (800) 660-8652.

2011/08