Appendix B ~2a INSTRUMENTALLY STRINGS usic Building Toll Free: 800-555-5555 1 Of 2 8 N. Cello Street Local: 517-555-1111 usic City, IN 98765 FAX: 517-555-1717 ww.IS.com e-mail: instrumentallystrings.net w A A T A0 0 0 A0 0 A0 0 T A T 0 0, 0, . Al 00 0 A 00 0 INSTRUMENT RENTAL AGREEMENT Al T Tl T8 Ml 0 0. 0 0 43 i 017 P T T o e IDENTIFICATION OF INSTRUMENT: Instrument 1.D. Number Type of Bow Type of Case ACKNOWLEDGEMENT: The renter hereby affirms that from the time of possession of the unit identified above from Instrumentally Strings (hereinafter referred to as 1.S.), that the unit is in good repair and playing condition. PAYMENT PROVISIONS: The renter agrees that for the entire contract time period, they will provide to LS. a valid credit card number to which all rental fees may be charged. Monthly rental fees are charged in advance on the twenty-second day of each month. The renter agrees to allow LS. to charge the provided credit card for all expenses as described in this document, until such time as the instrument is returned to 1.S. The initial payment will be credited to the credit card upon shipment or receipt of the instrument, and will consist of a deposit (equal to two month's rent) and the rental fee will be prorated to cover the remaining days of the month in which the instrument is originally rented. Subsequent monthly payments will be automatically credited to the credit card on the twenty-second day of each calendar month. OBLIGATION FOR UNIT: The renter assumes full responsibility for the rental unit: this includes any and all repairs not covered under the maintenance plan described below, including the full cost of replacement for instruments which are lost, stolen, or damaged beyond LS. repair. MAINTENANCE FEE: The monthly payment includes a REQUIRED maintenance fee (for repair and protection against loss). This fee covers normal wear and tear items such as nicks, scratches, bow repairs, open seams, and sticking or slipping of pegs. It also covers repairs due to accidental damage. The maintenance fee does not include the cost of replacing broken strings, or the repair of damage due to personal negligence or willful intent. Loss or theft of an instrument must be reported to the local police department and documented with the receipt of said agency and submitted to I.S. within 30 days of said occurrence. The renters of lost or stolen instruments, or instruments which are accidentally damaged beyond repair, will be charged a negligence fee as follows: Violins or Violas - $150.00, Cello - $225.00, and Basses - $275.00. Repair of rental instruments, bows, and cases may only be performed by an LS. authorized repair professional. Damaged instrument cases and bows are assessed an additional fee. LATE PAYMENTS & PENALTY FEES: The renter is liable for a retrieval fee of $45.00, in addition to rental and late fees (including a 21% finance charge on balances over thirty days past due) and any other expenses/costs associated from the enforcement of the terms of this agreement. All renters who are two months in arrears on payments or fail to comply with the terms of this agreement will accelerate their rental agreement into an automatic purchase agreement with the full purchase price due upon demand with no additional notice required. Additional costs which may be incurred by the renter for failure to honor this agreement include, but are not limited to: freight/shipping charges, attorney fees, replacement of instrument costs, collection fees, and/or court costs. ADDRESS CHANGE: Renters agree to contact LS. within ten days regarding all address changes. OWNERSHIP CREDIT: 1.S. permits 100% of the accrued rental fees (excluding the maintenance fee) to be applied toward the purchase of any new Instrumentally Strings instrument, up to a maximum of 50% of the original purchase price of the new instrument. Ownership credit expires 90 days from the end of the rental agreement. AUTOMATIC RENEWAL: This agreement proceeds for an initial minimum term of 3 months and automatically renews for successive three month terms. I hereby attest that I have read, understand, and agree to the above terms, provisions, and conditions. I hereby agree to allow IS.to verify my credit score, Parent/Guardian Signature: Date: S.S. Number: Student Signature: Date: S.S. Number: 7 Appendix B2 WHAT CONCERNS? 1. Is this a valid and enforceable contract? Why or why not