MAINTENANCE

If you initialed “Yes”, the instrument is covered by terms of our Monthly Maintenance Plan. If you return the instrument, the Maintenance Plan will be cancelled. If you pay off the instrument’s balance, the Maintenance Plan will continue. We will provide all required service and make all repairs necessary to keep the instrument in good playing condition as long as your payments under this Agreement are current. Work must be performed by Schmitt Music (or authorized) personnel.

FREE INSTRUMENT REPLACEMENT PLAN

Subject to the conditions stated above, if the instrument is stolen or damaged or destroyed in a vehicle or house fire, Schmitt Music will replace your instrument with a similar or comparable instrument at no additional charge. A replacement instrument may be a different brand or model. In order to obtain a replacement instrument as provided above (a) you must have a Monthly Maintenance Plan in effect and payments for the Monthly Maintenance Plan must be current, (b) your instrument trial purchase account must be current, and (c) you must provide a copy of a police department or fire department report related to the stolen or fire damaged instrument.

MAINTENANCE EXCLUSIONS

Our Monthly Maintenance Plan does not cover (a) replacement of expendable items such as reeds, oils, drumsticks, strings for orchestra instruments, etc. (b) restoration of finish on brass instruments (c) any instruments other than the one(s) listed on this Agreement (d) reimbursement for service or parts obtained from sources other than Schmitt Music Center (e) removal of minor dents (f) damage done by unskilled persons attempting repairs (g) malicious damage or destruction by owner and (h) does not include replacement of lost instrument.

SECURITY INTEREST

You hereby grant us a purchase money security interest in the property purchased in this transaction. If you default, we will send you notice of the default, and you will have 20 days after the notice in which to cure your default. If you do not cure the default within that time, we may declare the entire outstanding balance on this Agreement immediately due and payable and exercise our rights against you under the appropriate law. In the event you file bankruptcy, we may still exercise our rights against any property you purchase from Schmitt in accordance with applicable law.

CHANGE OF ADDRESS OR PHONE NUMBER

You will advise us within 30 days if you change your mailing address or phone number.

CONSENT

You agree that your cellular or other telephone number and any subsequent change in contact numbers or other means of communication (including but not limited to, electronic mail) may be used by Schmitt Music, or any debt collection agency or debt collection attorney hired by Schmitt Music to contact you directly or through an automated or predictive dialing system or prerecorded messaging system in an effort to recover any unpaid portion of your obligations to Schmitt Music.

BILLING

After your Trial Period ends, your credit/debit card will be charged monthly on the anniversary date of the delivery of the instrument until all payments have been made. If your delivery date falls on the 29th, 30th or the 31st of the month, your credit/debit card will be charged on the 28th of each month. If you return the instrument the day before your billing date and your account is current with us, no further payments will be taken.

DECLINED CREDIT/DEBIT CARD

If your credit or debit card is or will be declined or if we notify you that the information we have is no longer valid, you must provide us with another valid credit or debit card as soon as you are aware of this situation. Once we receive your new credit/debit card information, we will process a payment for the current month and any past due balances.

LATE FEE

If your payment is not received within 10 days, you will be charged a late fee based on your location: MN - $7.80; ND - $3.00; SD - $5.00; IA - $1.50; MO - $5.00; KS - $1.50; WI – 1.00.

If your location is NE - $1.50 will be charged to your account if payment is not received within 15 days of your scheduled payment.

DEFAULT

You will be in default under this Agreement if any of the following events occur: (a) You fail to make your payment when due. (b) You fail to advise us within 30 days if you change your address or phone number. (c) You file or have filed against you any bankruptcy proceeding. (d) Your credit or debit card is no longer valid or declined.

If your instrument trial purchase account becomes past due and the instrument is in the possession of Schmitt Music for repair, you agree that Schmitt Music may retain possession of the instrument until you bring the instrument trial purchase account current and provide Schmitt Music new credit/debit card information to charge for ongoing payments owed on the instrument trial purchase account. If you do not bring the instrument trial purchase account current and provide new credit/debit card information as provided above or make other arrangements with Schmitt Music within 30 days after delivery of the instrument to us, you agree that we may treat the instrument as having been returned to Schmitt Music under the Unlimited Return Option provided on the front of this Agreement and you must pay to Schmitt Music any past due balance on the instrument trial purchase account.

ATTORNEYS’ FEES AND EXPENSES

Upon default, where allowed by law, you agree to pay all costs of collection, including reasonable attorneys’ fees, court costs and expenses of repossession, that are incurred in enforcing any provision of this Agreement.

GOVERNING LAW

The Agreement will be governed by the law of the state in which you signed the agreement. The Federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of sex or marital status.

The Federal agency which administers compliance with this law concerning this store is The Federal Trade Commission, Suite 1437, 55 E. Monroe St., Chicago, IL 60603.

NOTICE Any holder of this consumer credit contract is subject to all claims and defenses which the debtor could assert against the seller of goods or services obtained pursuant hereto or with the proceeds hereof. Recovery hereunder by the debtor shall not exceed amounts paid by the debtor hereunder.