The undersigned Lessee(s) are leasing the Trailer described below from the independent dealer (Lessor), named below. As used in this Agreement, “Lessee(s)” means the person(s) (whether one or more) signing this Agreement as Lessee(s). The term “Lessor,” means the Lessor. The term “Lease” means this Trailer Lease With Right To Own Option Agreement and “Trailer” means the leased trailer described below.

A. DESCRIPTION OF LEASED MOTOR VEHICLE:

Amount Due at Lease Signing or Delivery (itemized below)* $ ____________ 

Lessee’s first                                         periodic payment of $                        is due on SIGNING OR DELIVERY, followed                    by payments of $                     due on the_______________ of each __________________ starting___________________________. 

The total of all Lessee’s periodic payments is $______________ 

Other Charges (not part of Lessee’s periodic payment) Disposition fee .....……..………..$_________ 

Other Fees/Taxes……………………...$_________ 

Total $_________ 

Total of Payments (The amount Lessee will have paid by the end of the Lease) $___________

Gross capitalized cost. The agreed upon value of the vehicle of ($                ) and any items Lessee pays over the Lease term (such as service contracts, insurance) ($                ) and (any outstanding prior credit or lease balance ($            ). If Lessee wants an itemization of this amount, please check this box [  ]…...........................................................................................................................................................................$______________ 

Capitalized cost reduction. The amount of any net trade-in allowance, rebate, noncash credit, or cash Lessee pays that reduces the gross capitalized cost….....................................................................................................................................................................................……-$______________ 
Adjusted capitalized cost. The amount used in calculating Lessee’s base periodic payment….......................................................= $______________ 
Residual value. The value of the vehicle at the end of the Lease used in calculating Lessee’s base periodic Lease payment..….- $______________ 
Depreciation and amortized amounts. The amount charged for the vehicle’s decline in value through normal use and for other items paid over the Lease.....................................................................................................................................................................................................= $______________ 
Total of base periodic payments. The depreciation and any amortized amounts........................................................................... .= $_____________ 
Lease payments. The number of periodic payments in Lessee(s) Lease.............................................................................................÷ ______________ 
Base periodic payment ……………....……...…....…………...………………………………………………….....……………………………………………………= $______________ 
Security Reserve Payment. Weekly payment to be applied to the security reserve............……………..................................…………..+$______________ 
Periodic sales/use tax ................................................................................................................................... Rate:_____________ % ........+$______________ 
Total periodic payment ……………………………………………………………………………………………………………………………………......………..........=$______________ 

Early Termination. Lessee(s) may have to pay a substantial charge and/or forfeit the security reserve set forth in Section 25 if this Lease is ended early. The actual charge will depend on when and why the Lease is terminated. The earlier Lessee(s) end the Lease the greater this charge is likely to be. 

Other Important Terms. See all pages of this Lease, “Exhibit A” and all attached “Addenda”, which are incorporated by reference into this Lease as if fully stated herein, for additional information relating to early termination, maintenance responsibilities, warranties, late and default charges, insurance and any security interests, if applicable and other important lease terms making all “One Single Document/Lease/Agreement”. 

2. Delinquency Charges. If Lessee(s) do not pay any periodic payment in full within 2 (two) business days after it is due, Lessee(s) agree to pays Lessor a delinquency charge of $10.00. 

ADDITIONAL PROVISIONS: 

3. Insurance. INSURANCE FOR PHYSICAL DAMAGE AND INSURANCE FOR LIABILITY FOR BODILY INJURY AND PROPERTY DAMAGE CAUSED TO OTHERS IS NOT INCLUDED IN THIS LEASE. Lessee(s) are required to purchase and maintain insurance for the benefit of the public and the Lessor. Lessee agrees to provide and maintain in force the Required Insurance coverage in (at least) the amount and types specified in this Lease. Lessee(s) are also required to add Leasing by Adams, LLC as an additional insured and payee on Lessee(s) policy. Lessee(s) shall provide an accurate insurance binder before the lease is signed within 24 hours of the policy going into effect. Failure to do so shall result in immediate breach of this Lease and provides the Lessor the right of immediate possession of the vehicle. 

REQUIRED INSURANCE PROVISIONS. The Lessor has no responsibility for insuring the Vehicle, or as to any substitute vehicle provided by or on behalf of Lessor. Lessee(s) will provide, at least, the following insurance coverage (“REQUIRED INSURANCE”) on the vehicle, at all times during the term of this Lease, including any extensions or renewals: LIABILITY, COLLISION and COMPREHENSIVE insurance coverage (including fire and theft coverage) must be at the minimum or greater amount set forth in the applicable state law for leased vehicles with a COLLISION and COMPREHENSIVE deductible not the exceed $500.00. Lessee(s) agree to provide the insurance at own expense according to law and by a duly licensed insurance company of Lessee(s) choice, who is acceptable to Lessor, from Lessor’s list of approved insurance providers, and may be provided through existing policies that Lessee(s) owns or controls. Lessee(s) also agrees to name Lessor, or our assignee, as loss payee and additional insured. The insurance company must send notices to both the additional insured and the loss payee providing at least 10 days advance notice to Lessor of any cancellation or other material change in coverage. Lessee(s) shall promptly contact Lessor in writing if any of the insurance provider information changes. All accidents or collisions/comprehensive events shall be immediately reported to and will be coordinated by Lessor, or this Lease is in immediate default. Lessee(s) shall appoint Lessor, through Lessor’s appointed officer or employee, as Lessee(s) attorney in fact, to endorse Lessee(s) name on any check Lessor receives as insurance proceeds. This power of attorney is coupled with any interest and is irrevocable until all obligations Lessee(s) owe under this Lease are paid in full. Lessee(s) are responsible for any loss amount Lessee(s) insurance company does not pay including Lessee(s) deductible. 

NOTICE: Liability insurance coverage for bodily injury, property damage and trailer damage caused to others is not included in this Lease. 

NOTICE: The Lease is IMMEDIATELY in DEFAULT and the Trailer is subject to IMMEDIATE RECOVERY, WITHOUT NOTICE if the required insurance is not IN-FORCE AT ALL TIMES during the term of this Lease and/or the Lessee(s) failed to add the Lessor as an additional insured and loss payee
(or as otherwise provided or limited by applicable law). 

4. Maintenance. During the Lease, Lessee(s) will be solely responsible for maintaining and servicing the Trailer to keep it in good condition and for payment of all maintenance, service, and operating expenses.. Lessee(s) shall contact Lessor prior to performing any maintenance on the Trailer.  Lessee(s) may only use mechanics, repair facilities and the materials/methods to be used as approved by the Lessor.  Lessee(s) shall provide Lessor a copy of all receipts and records of any repairs..  Failure to maintain the Trailer shall result in breach of this Lease. 

5. Damage, Repairs, Loss, Destruction, Alterations, Modifications: The Lessee(s) agree to maintain the Trailer in good working order. Any and all repairs to the Trailer must be performed by the Lessee(s) at Lessee(s) sole expense. The Lessor will not be responsible for any costs of repairs performed by Lessee(s) or at its request even though Lessor retains title to the Property. Lessee(s) are also responsible for any damage, repairs, loss, destruction, seizure or theft of the Trailer during this Lease. Lessee(s) will notify Lessor promptly of any such damage, loss, destruction, seizure or theft. If Lessor determines that any damage to the Trailer is reasonably repairable, Lessee(s) shall have all damage and repairs to the Trailer promptly repaired at Lessee(s) expense (after receiving prior written approval from Lessor as to the repair facility, work to be done and materials/methods to be used).  If Lessor is conducting the repair, Lessee(s) shall pay Lessor within thirty (30) days of the repair if Lessor pays or performs the repair.  Failure to do so shall result in a default of this Lease. Should the Lessee(s) default pursuant to this Agreement, the security reserve set forth in Section 23 of this Agreement shall be returned to the Lesee absent any costs incurred. 

All Trailer alterations/modifications/additions/removals, other than provided for elsewhere in this Agreement, must have prior written approval by Lessor(s). This includes but not limited to items like: body decorations, lifting or lowering of body, , wheels and tires, etc.         

6. Acknowledgement of Trailer Condition. By signing this Lease, Lessee(s) acknowledge that Lessee(s) are receiving the Vehicle in good operating condition and all equipment is functional, except as expressly noted on the attached Trailer Information Lease Form. 

7. Warranties. The Leased Trailer is subject to the following express or implied warranties: NONE unless at the time the Lessee(s) acquires ownership of the property, any part of a manufacturer's warranty covering the Leased property exists, such warranty will be transferred to the Lessee(s) if allowed by the terms of the warranty. In the absence of a written undertaking by Lessor, the Trailer is delivered “as is, with all faults”. Lessee(s) are not required to purchase a service contract or extended warranty as a condition of this Lease.

8. Trailer Location. Lessee(s) agree to store/garage the Trailer at Lessee(s) address stated on page 1 of this Lease or at such other address to which Lessee(s) and Lessor agree upon in writing. Such location shall not be changed without providing at least 7 days prior written notice of the change to Lessor and Lessor acknowledges in writing. Lessee(s) will breach this agreement, giving the Lessor the right to possession (or as otherwise provided or limited by applicable law) of the Trailer if this Section is not followed.

Also see Prohibited Use. 

9. Indemnity. To the fullest extent permitted by law, Lessee(s) agree to indemnify Lessor and hold Lessor and Lessor’s successors and assignees, as the case may be, harmless and free from all liability, claims, losses, demands, damages of all kinds, expenses (including reasonable attorney’s fees and costs incurred for the enforcement of this agreement and/or for the collection of any due amount), fines and penalties Lessor suffers or incurs resulting from the operation, use, condition, maintenance or recovery of the Trailer. Lessee(s) agree to pay and hold Lessor harmless for all official fees and taxes relating to the titling, registration, testing or inspection of the Trailer during the Lease and to keep the Trailer free from all fines, liens and encumbrances.

10. THIS IS A TRUE LEASE, NOT A SALE. LESSORSHIP/SECURITY INTEREST: LESSOR OWNS AND RETAINS TITLE TO THE TRAILER UNLESS THE LESSEE(S) EXERCISES HIS/HER RIGHT TO OWN OPTION. As the Lessee(s) of the Trailer, LESSEE(S) ACQUIRE NO LESSORSHIP, WHETHER LEGAL OR EQUITABLE. To secure performance of Lessee(s) Obligations under this Lease, Lessor reserves a security interest in the entire Trailer, together with all accessories and additions, including replacements. 

11. DEFINITION OF DEFAULT; OUR RIGHTS IN THE EVENT OF DEFAULT. A. Lessee(s) will be in “IMMEDIATE DEFAULT” if any of the following occurs: (1) LESSEE(S) DOES NOT KEEP IN FORCE THE INSURANCE COVERAGE THIS LEASE REQUIRES (see REQUIRED INSURANCE); (2) LESSEE(S) COMMENCE BANKRUPTCY, INSOLVENCY OR RECEIVERSHIP PROCEEDINGS OR ONE IS COMMENCED AGAINST LESSEE. Lessee(s) will be in “DEFAULT” if any of the following occurs: (3) Lessee(s) do not make Lessee(s) periodic payment on or before its due date; (4) any information in Lessee(s) application or that of a guarantor of this Lease is false or misleading , (5) Lessee(s) do not promptly or properly perform any promise or agreement under this Lease, including the following: (i), (ii) failure to properly maintain the Trailer, (iii) failure to repair the Trailer, and (iv) failure to register and license the Trailer; (6) the Trailer is lost, damaged, stolen, abandoned, confiscated by a governmental authority or subjected to undue peril and the event is not covered by insurance; or (7) Lessee(s) commits any other act that constitutes a default under applicable law or this Lease.

In the event of Default, Lessor may, at its option, after giving any mandatory notice: (1) allow the Lessee(s) to pay all Lessor’s costs and expenses in so doing immediately on Lessor’s demand; or (2) immediately terminate this Lease and do any or all of the following after giving due notice; (i) sue Lessee(s) for damages and to recover the Trailer; (ii) take the Trailer from Lessee(s) by any method or manner permitted by law (and if there is any personal property in the Trailer, Lessor will store it at the expense of Lessee(s) or dispose of it as required by applicable law); (iii) calculate Lessee(s) liability on an early termination basis, in which case Lessee(s) agree to pay immediately the amount of liability on our demand; (iv) forfeit the security reserve for costs incurred as set forth in Section 23 to the Lessor; (v) pursue any other remedy permitted by law. 

If Lessor elects to terminate this Lease because Lessee(s) are in Default, Lessee(s) agree to pay Lessor any Lease payments that are already due to Lessor plus any other amounts owing under this Lease, whether as a result of the default or as otherwise provided or limited by applicable law.   

12. Lease Term or Lease Period. The Lease Term “Term” or Lease Period “Period” is from periodic payment to periodic payment, which shall be no longer than month to month, unless otherwise agreed upon by the Parties. 

13. Register and License the Trailer. Lessee(s) shall register and license the Trailer within thirty (30) days of delivery of the Trailer. Failure to do so may result in a default of this Agreement. 

14. Personal Guaranty for Legal Entities. If the Client is an LLC, Corporation, LLP, or other entity, then the individuals signing this Agreement hereby agree to, jointly and severally as applicable, personally guarantee the payment and collection of all fees and costs payable under this Agreement, on behalf of said entity. 

15. Multiple Leased Trailers. If the undersigned Lessee(s) have more than one trailer leased from Lessor, then a default in any of the conditions of the Lease for any trailer shall be considered a default of all the Leases for all the trailers leased by Lessee(s). 

16. Early Termination Rights.  A. Lessee(s) may voluntarily terminate this Lease, without penalty, before the end of its Term, if Lessee(s) return the Trailer to Lessor in good condition, undamaged, and pay all amounts due under the Lease through the date of termination including, without limitation, outstanding payments and excess mileage charges. B. If the Lease is terminated early because of the total loss or destruction of the Trailer, and Lessee(s) has maintained the Required Insurance within this Lease, there will be an insurance settlement. In that case, (1) Lessor will receive all the proceeds of any insurance required under this Lease and from any other person on account of the total loss or destruction of the Trailer; (2) Lessee(s) will pay Lessor all amounts past due under this Lease as of the date of our receipt of such proceeds; and (3) Lessee(s) pay Lessor the amount of the applicable insurance deductible. C. If this Lease is terminated early, because of the total loss, or destruction of the Trailer, and Lessee(s) have not maintained the Required Insurance within this Lease, Lessee(s) agree to pay an amount equal to the remaining balance of the Base Periodic Payments, Residual Value and any amounts outstanding under the Lease less the reasonable value of the salvage Trailer, unless paid by insurance. If this Lease is terminated early by the Lessee(s), the Lessee(s) shall be entitled to the security reserve absent costs incurred, provided the Lessee(s) has not breached any condition of this Agreement.

17. Return of Traler at End of Lease Term. Lessee(s) shall return the Trailer to Lessor at the address stated for the Lessor within this Lease or to such other reasonable place to Lessor tells Lessee(s). 

 
18. Standards for Wear and Use. When Lessee(s) returns the Trailer to Lessor, it must be in good working order and condition and not subject to "excessive wear and damage." "Excessive wear and damage" includes, but not is limited to: (1) damaged body, fenders, metal work, lights, trim or paint (2) missing equipment that was in the Trailer when delivered and has not been replaced with equipment of equal quality and design; (3) missing wheel covers, jack or wheel wrench; (4) missing or unsafe wheels or tires (including spare); (5) any tire with less than 1/8 inch of tread remaining at the shallowest point;; (6) damage or other condition that makes the Trailer unsafe or unlawful to operate; (7) any mechanical damage or other condition that causes the Trailer to operate in a noisy, rough or improper manner; and (8) any other damage not covered by insurance. Lessee(s) agree to pay the cost of all repairs needed because of excessive wear and damage and to put the Trailer in good working order and condition.

19. Assignment. A. This Lease may be sold, transferred, and assigned by Lessor without restriction, in which case Lessor’s assignee will have the same rights and responsibilities as Lessor has under this Lease. B. LESSEE(S) DO NOT HAVE ANY RIGHT TO ASSIGN, SUBLEASE OR TRANSFER THIS LEASE AND ANY ASSIGNMENT OR OTHER TRANSFER OF LESSEE(S) INTEREST UNDER THIS LEASE OR IN THE TRAILER, WHETHER VOLUNTARY OR INVOLUNTARY, IS STRICTLY PROHIBITED WITHOUT LESSOR’S PRIOR WRITTEN CONSENT. 

20. Prohibited Use. Lessee(s) agree that Lessee(s) shall not: (1) use or permit the use of the Trailer for any illegal purpose or in violation of any law; (2) use or permit the use of the Trailer for any improper purpose, including use that exceeds the Trailer manufacturer's recommendations or specifications; (3) use or permit the use of the Trailer for hire or any other commercial purposes; (4) use or permit the use of the Trailer outside of the United States at any time or (5) use or permit the use of the Trailer outside of the State in which Lessee(s) has agreed it will be stored or garaged for more than 7 consecutive days unless Lessor consents in writing. Such location shall not be changed without providing at least 7 days prior written notice of the change to Lessor and Lessor acknowledges in writing. Lessee(s) shall be in breach of this agreement, giving the Lessor the right to recovery and possession of the Trailer if this Section is not strictly followed (or as otherwise provided or limited by applicable law).

21. Inspection. Lessor reserves the right to inspect the Trailer at any reasonable time and place and Lessee(s) agree to provide Lessor with reasonable access to the Trailer for this purpose. 

22. Advances on Behalf of Lessee(s). If Lessee(s) fails to perform any duty with respect to preserving Lessor’s interest in or insuring the Trailer, Lessor may pay for the performance of such duties on Lessee(s) behalf and the amount so paid by Lessor will be added to the unpaid balance of Lessee(s) obligations under this Lease, provided that Lessor has made the payments in good faith and in a commercially reasonable manner and Lessor has given Lessee(s) written notice of the nonperformance and a reasonable opportunity after such notice to perform.

23. Option to Purchase and Security Reserve. In addition to the lease payment obligations and other obligations set forth in this Agreement, you also agree to perform and fulfill the obligations set forth in this section of the Agreement. The security reserve shall be an account that accrues interest and shall be applied to the purchase of the trailer, should you elect to do so. Lessor shall pay interest to Lessee(s) on the security reserve on at least a quarterly basis (“interest period”) beginning with receipt of the first security reserve payment. The interest shall be established on the date the interest period begins and shall be equal to the average yield of 91-day, 13-week U.S. Treasury bills, as established in the weekly auction by the Department of Treasury, or such higher rate as may be set forth by mutual agreement of the parties. Provided that you have made all Lease Payments to us as required under this Agreement, you shall have the right and privilege, at your option, to purchase the Trailer on the termination date of this Agreement or as otherwise set forth in this Agreement or an Addendum. On the exercise of this option, we and you shall duly execute and deliver all documents necessary and proper to effect transfer of ownership of the Trailer to you, free and clear of all encumbrances, security interests and liens (other than encumbrances, security interest or liens suffered or permitted by you to become effective thereon), upon payment by you in cash or certified check of all amounts owing as set forth in this Agreement. You shall, in addition to such amounts, pay us for the amount of any unexpired licenses, applicable taxes, other costs incurred and other pre-paid expenses previously paid by us for the Trailer, prorated to the date of the sale, and you shall be responsible for any sales or use tax arising from the purchase. Should you choose not to purchase the trailer, the security reserve and interest, shall be returned to you, absent any costs incurred.

24. General. A. Lessee(s) gives Lessor permission (direct expressed consent, clear, definite, and unequivocal) to contact or communicate with Lessee(s) using any communication method (or as otherwise provided or limited by applicable law). B. Lessee(s) are liable for immediate payment of all parking tickets, tolls, fines for toll evasion, and all other fines (or as otherwise provided or limited by applicable law). C. Unless the law otherwise provides, this Lease contains the entire agreement between Lessee(s) and Lessor with regard to the Vehicle and supersedes and replaces all prior discussions, understandings and agreements. This Lease and all attached “Addenda”, which are incorporated by reference into this Lease making all “One Single Document/Lease/Agreement” may not be amended, modified, varied, or otherwise altered or extended, nor the agreements or conditions hereof waived, except by a writing signed by an authorized representative of the party against whom such amendment, modification, variation, alteration, extension, or waiver is sought to be enforced. No act or omission by Lessor, including specifically any failure to exercise any right, remedy or recourse, however often, shall be deemed to be a waiver or release of any right, remedy or recourse by Lessor. A waiver or release with reference to any one event shall not be construed as continuing, as a bar to, or as a waiver or release of, any subsequent right, remedy or recourse in the future. Further, no acceptance of any consideration or performance less than the full due amount shall be deemed to be an accord and satisfaction, settlement or release, unless Lessor expressly agrees, in writing. 

NOTICE TO LESSEE AND CO-LESSEE 
THIS IS A TRUE LEASE AGREEMENT—READ BEFORE SIGNING 

PLEASE REVIEW THESE MATTERS CAREFULLY AND SEEK INDEPENDENT PROFESSIONAL ADVICE IF LESSEE(S) HAVE. ANY QUESTIONS CONCERNING THIS TRANSACTION. BY SIGNING BELOW, LESSEE(S) ACKNOWLEDGE THAT:

A. THIS is A CLOSED-END RETAIL TRAILER LEASE AGREEMENT.
    NOTE: THIS IS A TRUE LEASE, NOT A PURCHASE AGREEMENT.

B. LESSEE(S) HAVE NO LESSORSHIP RIGHTS TO THE TRAILER. LESSEE(S) MAY EXERCISE THEIR OPTION TO OWN PURSUANT TO THIS AGREEMENT.

C. LESSEE(S) MAY PREPAY THE UNPAID BALANCE AT ANY TIME WITHOUT PENALTY.

D. THERE ARE NO VERBAL OR WRITTEN TERMS OR CONDITIONS OTHER THAN THOSE IN THIS LEASE, AND ALL ATTACHED "ADDENDA" MAKING THIS ALL "ONE SINGLE DOCUMENT/LEASE/AGREEMENT".

E. DO NOT SIGN THIS LEASE, AND ALL ATTACHED "ADDENDA" BEFORE LESSEE(S) READS AND INITIAL ALL PAGES OR IF ANY SECTION IS NOT COMPLETED OR CONTAINS ANY BLANK SPACES.

F. LESSEE(S) ARE ENTITLED TO AND ACKNOWLEDGE HAVING RECEIVED A COMPLETED EXACT COPY  OF THIS "ONE SINGLE DOCUMENT/L.EASE/AGREEMENT"

G.THIS LEASE, AND ALL ATTACHED *ADDENDA", ARE INCORPORATED BY REFERENCE INTO THIS LEASE MAKING THIS ALL "ONE SINGLE DOCUMENT/LEASE/AGREEMENT".