Terms of Lease Agreement

1. This agreement is between Popplers Music, Inc. herein referred to as the lessor; and the undersigned, herein referred to as the lessee.

2. The legal title to the leased property shall remain with the lessor.

3. Lessee agrees to pay the lessor a level monthly fee for the use of the property, for a period not less than 1 month and not longer than 36 months.

4. Once the minimum lease period (as set forth in #3 above) has been reached, the lessee has no obligation to make all of the payments as set forth in this agreement, but may each month (a) continue the use of the property by making the next payment or (b) return the property to the lessor in good working order.

5. Lessee gives consent to the lessor to charge the credit/debit card account given below for the monthly fee if such payment is more than 10 days past due.

6. The lessee has no right to sell, sublease, mortgage, pawn, pledge, or encumber or otherwise dispose of the property.

7. The lessee shall have the opportunity to purchase the leased property at any time during the term of this agreement. A sum equal to 100% of the payments made under this agreement (not including R&M fees) shall be given as a credit toward the purchase of the leased property. An additional sum equal to 10% of the unpaid balance of the leased property will be given as a credit if the lessee purchases the leased property within 18 months of the commencement of this agreement.

8. Within six months of the commencement of this agreement, the lessee may exchange the leased property within the same classification of instruments. Classifications are BAND (includes flute, clarinet, saxophone, trumpet, trombone, or similar wind instruments), STRING (includes violin, viola, cello, and string bass) PERCUSSION (includes concert bells, snare drum, trap set, xylophone, marimba, and vibraphone) KEYBOARD (includes digital portable keyboards), and COMBO (includes fretted instruments and combo amplifiers).

9. Lessee shall have the opportunity to upgrade from the leased property by purchasing an intermediate or professional level like instrument at any time during the term of this agreement, or within 30 days of the completion of this agreement. A sum equal to 85% of the payments made under this agreement (not including R&M fees) shall be given as credit toward the upgrade purchase, up to the full value of the upgrade instrument.

10. Lessee will be in default of this agreement for the following reasons:

            a. Failure to make payment within 10 days of due date.
            b. Failure to notify lessor of change of address.
            c. Failure to notify lessor of change of credit/debit card or expiration date.
            d. Lessee becomes involved in any bankruptcy proceedings.

Upon default, lessor will make three attempts to contact lessee by telephone or in writing to recover the amount due. If satisfaction is not made after the third attempt, lessor can and will demand immediate return of the property, and terminate the lease agreement. The lessor may recover the instrument from the school without recourse to the school or its personnel.

11. Lessee agrees to pay all fees associated with the collection of the leased property if in default.