Terms & Conditions

The Customer and the Lessor have mutually agreed as follows:

This Agreement - As used herein, "this Agreement" means the Rental Application and Agreement or Lease/Rent-to-own or Lease/Option Agreement appearing on the front side hereof together with these Standard Terms and Conditions.

The Rental Agreement - The Lessor hereby leases to the Customer, and the Customer hereby hires and leases from the Lessor, the instrument or instruments described on the front side of this Agreement together with any parts and accessories relating thereto or described on the front side of this agreement (the "instruments").  The customer will not acquire any title or ownership in the instruments and hereby acknowledges that title and ownership of the instruments remain with the Lessor at all times.

Term - The term of this Agreement (the "Term") shall commence on the Start Billing Date disclosed on the front side of this Agreement and shall continue thereafter on a month-to-month (or yearly in the case of a long-term lease) basis on the terms and conditions contained herein until the instruments have been returned to the possession of the Lessor.  The Customer may return the instruments to the Lessor at any time and the Term shall expire on the day immediately preceding the monthly anniversary of the Start Billing Date next following the day that the Customer returns the instruments to the Lessor.  All instruments must be returned directly to the Lessor.

Payments - The Lease/Rental Amount disclosed on the front side of this Agreement plus the requisite amounts for maintenance & insurance, GST and PST shall be due and payable by the Customer to the Lessor in advance on each month from the Start Billing Date during the Term.  The Customer shall pay interest on all overdue amounts calculated at the rate of 1.5% monthly.  The Customer shall pay to the Lessor all charges set out in this Agreement promptly without deduction or set off.  The customer shall pay all costs incurred by the Lessor for returned pre-authorized credit card payments and will be subject to an additional administrative fee.  A $35.00 NSF fee will be charged to all returned payments and multiple returned payments may be subject to an additional administrative fee.

Rental Loss or Damage - If the Customer has selected a Rental program choice as Rent-to-Rent, the Customer shall bear full responsibility for loss of the instruments and for any and all damage caused to the instruments during the Term, reasonable wear and tear are expected, and shall indemnify and save harmless the Lessor for any and all costs associated with any such loss or damage.  The instruments shall be returned to the Lessor at the end of the Term in good mechanical and physical condition, except for reasonable wear and tear.  The Customer shall pay all costs incurred by the Lessor in the Lessor's discretion to put the instruments in such condition.

Loss of Use - The Lessor shall not be liable whatsoever if the Customer is deprived of the use or possession of the instruments for any reason whatsoever including without limitation, theft, repossession, damage or mechanical breakdown and occurrence of such events shall not relieve the Customer of its obligations contained herein including the obligation to pay the Rental Amounts or Lease Amounts.

Theft and Damage Insurance - If the Customer has purchased insurance as indicated on the front of this agreement, insurance is available to cover theft of and/or damage to instruments.  By supplying a police report for theft and/or damage (mysterious disappearance excluded) the instruments will be repaired or replaced with any instrument or instruments of equal value.  Such theft and/or damage insurance is nullified when default of any payment occurs. 

Covenants - The Customer agrees (a) to lease the instruments as provided herein for the Term and to pay the Lessor rent for the use of the instruments as provided herein; (b) not to permit and liens or security interests, possessory or otherwise to be registered or charged against the instruments; (c) to be liable for and pay on demand to the Lessor (i) all losses or damages, including legal costs arising from the negligence, conversion, abandonment, improper sale or concealment of the instruments by the Customer, the Customer's family or third parties, and (ii) any damages and costs resulting from any breach of this Agreement by the Customer; (d) to return the instrument immediately to the Lessor upon the termination of the Term for any reason; (e) to notify the Lessor within 15 days of any change of address or phone number, or any other change in the Customer's account status; and (f) to be responsible for all transportation and freight costs whatsoever with respect to the delivery of the instruments to the customer at the commencement of the Term and with respect to the return of the instruments to the Lessor upon the termination of the Term for any reason.

Termination - The Customer agrees that, if at any time this Agreement is terminated for any reason, the Customer will immediately pay to the Lessor (a) whatever amount may be necessary to place the instruments in the condition as is required by this Agreement including the cost of physical and mechanical repairs; (b) all amounts owing to the Lessor under the provisions hereof; (c) all costs and expenses incurred by the Lessor, including legal costs, to enforce the provisions of this Agreement.

Repossession - The Lessor shall have the right to immediately retake and repossess the instruments with or without process of law and terminate this Agreement, if (a) the Customer defaults in making any of the required rent or other payments when due; (b) the Customer fails to comply with any of the terms, covenants, conditions and understandings herein; or (c) the Customer becomes insolvent or any proceedings be taken in bankruptcy, whether voluntary or otherwise, or by way of receivership.  The Customer waives all claims to damages or expenses in respect of such seizure and repossession.  In any event, the Lessor's obligations to provide the instruments shall terminate but the Customer shall still remain liable and shall pay to the Lessor forthwith any required rent or other payments hereunder, together with the cost and incidental to such seizure and repossession as well as any other obligations undertaken by the Lessor.

General - (a) The Lessor may assign this Agreement without the consent of the Customer.  The Customer may not assign this Agreement without the prior written consent of the Lessor which consent may be arbitrarily withheld.  (b) This Agreement shall ensure to the benefit of and be binding upon the parties and their respective heirs, executors, administrators, successors and permitted assigns.  (c) Notices to be given pursuant to this Agreement shall be effectively given by being delivered by personal delivery or by sending the same by registered mail, to the other party at the last known address of such party.  (d) This Agreement constitutes the entire agreement between the parties and the Customer acknowledges that neither the Lessor nor its representatives have made any representations to the Customer regarding the instruments or the matters dealt with in this Agreement other than those expressed in this Agreement.

Lessor Authorization - This Agreement shall not be binding upon the Lessor for any purpose until the Lessor delivers the instruments to the Customer.

Credit Card Authorization - The Customer hereby authorizes billing of payments due under this Agreement against the Customer's Visa or MasterCard should the Customer's account become more than thirty (30) days in arrears.

Credit Investigation - The Customer hereby consents to the Lessor conducting a personal investigation and credit check upon the Customer.

Customer Lease Buyout - When not in default of any of the Customer's obligations hereunder and the Customer has a Lease/Rent-to-own or Lease/Option Agreement, the Customer shall have the option to purchase the instruments for an amount (the "Buy-Out Amount") calculated as the Purchase Value of the instruments, as disclosed on the front side of this Agreement; PLUS interest on the monthly outstanding balance at the monthly interest rate shown on the front of this agreement; LESS 100% of the rent (exclusive of applicable taxes) paid by the Customer at the time of the Customer's exercise of this option; PLUS all applicable taxes.

The Customer may periodically receive correspondence from the Lessor.

GST #R105028054 (St. John's Music Ltd.)

March 2008