TERMS • CONDITIONS • DEFINITIONS

RENTAL PACKAGE: The rental package includes the instrument plus optional accessories. The rental package does NOT include a fire and theft replacement (LDW) agreement nor does it include a repair/service policy. The customer is responsible for maintaining the instrument in playing condition and is financially responsible for the replacement price in case of loss. See section below for Replacement (LDW) and Service Policies/Options. The rented instruments must be kept in the location address on the reverse side unless written authorization from Melhart’s allows the change to move the instrument to a different location.

RENTAL RENEWAL OPTION: This rental agreement is for one month and is renewable each month when payment is received. To automatically renew the rental on a monthly basis, the customer must make sure autopay is completed.

RETURN OPTION: The instrument may be returned at any time and the rental agreement will be terminated AT such time; all payments must be up to date. The minimum monthly rental period is one month. No rental fees will be prorated or refunded. Instruments must be returned to the store and/or company representative. All returns must be documented and receipt secure by the customer. DO NOT LEAVE THE INSTRUMENT AT SCHOOL WITHOUT PROPER ADVANCE AUTHORIZATION FROM MELHART’S. ALL ACCESSORIES INCLUDED WITH THE INSTRUMENT MUST BE RETURNED AT SAME TIME OF RETURNING INSTRUMENT; OTHERWISE, MISSING ITEMS MUST BE PAID AT TIME OF RETURN OR BE PAID BY THE AUTOPAY ON FILE.

BASE RENTAL FEE: The base monthly rental fee is the instrument rental only and shall be determined by deducting the monthly sales tax and monthly maintenance and replacement fees (LDW) from the total monthly rental due and invoice fee if applicable.

EXCHANGE OPTION: If the student on the reverse side of the agreement changes instruments in the music class, the rented music instrument may be exchanged for another music instrument listed on the reverse side of the agreement for an instrument of the same age if customer returns rental instrument. The retail price and the rental payment price, if different, may be adjusted according to the price of the exchanged instrument price. “Rental fees may not be applied toward an instrument of a different type (i.e. a trumpet for guitar......etc.)” Rental principal amount that paid for fractional size stringed instruments may be used toward larger string instruments of equal or larger value.

PURCHASE OPTION OF SEMI-PRO OR PROFESSIONAL INSTRUMENT: While renting the instrument, the customer has the option of purchasing the rental or an in stock “step up” instrument. The base rental fees can be applied to the ownership of a “step up” model instrument of similar key and type. The price on a “step up” shall be calculated by taking the manufacturer’s suggested retail price at the time of purchase for the instrument selected minus the base monthly rental fees paid in plus sales tax. This “step up” option is not automatic: it is the customer’s option to exercise. The rented instrument must be returned with only normal wear.

OPTIONAL LOSS DAMAGE WAIVER (LDW) “This rental agreement offers an optional loss damage waiver for an additional charge to cover your responsibility for loss of or damage to the merchandise. You do not have to purchase this coverage. Before deciding whether or not to purchase this loss damage waiver, you may consider whether your homeowners’ or casualty insurance policy affords you coverage for loss of or damage to rental merchandise and the amount of the deductible you would pay under your policy.” LDW does not cover loss or damage to the merchandise that is caused by an unexplained disappearance of the merchandise, damage that is intentionally caused by the customer, or damage that results from the consumer’s willful or wanton misconduct. In the event of THEFT or FIRE, the instrument will either be replaced with an instrument of the same age after the loss or the rental agreement canceled at the company’s discretion so long as payments are current. There is no loss deductible dollar amount. This agreement covers only instruments. This agreement does not cover partial loss such as bows or other expendable items such as reeds, straps, lubricants, mallets, sticks, etc. If your instrument should be destroyed by fire or loss due to theft, you must provide our accounting department a notarized Police or Fire Report within 14 working days of the incident. This replacement policy will terminate when the rental agreement is terminated, delinquent, or canceled. Allow a minimum of 14 days for replacement. Payments must be current for this coverage to be in effect.

OPTIONAL SERVICE POLICY: This rental agreement offers an optional service policy. While you are renting this instrument, we will maintain the instrument in playing condition, provided damages are not willful or due to negligence and provided that payments are current at the time of damages. Maintenance coverage shall include adjustments, pads, replacement of broken parts of instrument, case repair, dents on brass instruments (that inhibit playing condition), repair of cracked joints on wood clarinets; replacement of broken bridges on violins, cellos and basses; re-hair of bows or stringed instruments; replacements of broken drum heads. Maintenance does NOT include restoration of finishes or replacement if unexpendable or accessory items such as reeds, straps, lubricants, etc. Any and all repairs and replacements must be made by Melhart’s or our designated agent. This repair and maintenance agreement is paid monthly and will be canceled if payments are not current. No other repair shop may work on this instrument and any repair, damage, or alteration so incurred shall be fully chargeable to the customer. This repair/ maintenance agreement will terminate when the rental agreement is terminated, delinquent, or canceled. Melhart’s has final authority to determine repairs or need of repairs.

AUTHORIZATION OF CHARGE CARD / BANK DRAFT: The customer herein authorizes Melhart’s to deduct payment from a specified credit card, debit card, or bank account (Bank Draft ACH) on the First Day of each month for the rental payment, plus any incurring charges (late fees, past due payments, NSF’s, merchandise not returned, etc.). If payment is not successfully withdrawn from the account on the first day of the month, an NSF fee up to $50 will be added. Instruments Returned with payments due and accessories not returned may be deducted from auto pay accounts. You authorize us to apply your method of payment, in accordance with applicable law, to satisfy any and all amounts. Melhart’s may debit account for accessories not returned after instrument is returned. Customer will accept this withdraw authorization for any future changes for credit card, debit card, or bank drafting information. You also acknowledge and agree that you are required to maintain current credit card, debit card, or bank drafting information with us and agree to notify us whenever there is a change in such information - such as a change in the card number or the expiration date. Failure to submit any new auto pay information to keep account current can result in collection or legal action.

AUTHORIZATION FOR LATE CHARGES AND PICK UP (IN CASE OF DELINQUENCY): THE INSTRUMENT RENTED IS THE PROPERTY OF MELHART MUSIC. THE RENTED INSTRUMENT MAY NOT BE SOLD, RENTED, OR PAWNED. THE CUSTOMER HEREIN AUTHORIZES MELHART’S AND ITS REPRESENTATIVES TO PICK-UP THE COMPANY’S INSTRUMENT FROM THE SCHOOL OR ANY OTHER LOCATION IN CASE OF DELINQUENCY OF PAYMENT. If any payment is more than 10 days late, Melhart’s may charge up to $50.00 Collection fee for late, NSF, or non payment transaction fee.

Non-payment of rental or timely return of rental may be subject to criminal prosecution of Texas Penal Code 31:04 or any other applicable law. The rental instrument is in a rental pool and not for sale.

CREDIT INQUIRY: This is your authorization to make whatever credit inquiries you deem necessary in connection with this rental agree tand that you will retain this credit application whether or not it is approved. I authorize you to answer questions about your credit experience with me.