MULTI-PAYMENT PURCHASE AGREEMENT

Transcription

1 MULTI-PAYMENT PURCHASE AGREEMENT Lease Agreement Number: Lessor/Owner: DreamCloud LLC Address: 2000 University Avenue, Palo Alto California Phone: 1(888) 8-NECTAR Website: Lessee/Purchaser: Address: Phone: This Rental Purchase Agreement ( Agreement or Lease ) is entered into by and between DreamCloud LLC ( Lessor ) and [ ] ( Lessee ) (collectively referred to as the Parties ) on [ ] (the Effective Date ). The Agreement includes the terms and conditions and the right of the Parties in accordance with state and federal law. In referring to the Parties individually, this Agreement may use you, your, or Purchaser to refer to Lessee, and may use we, our, us, merchant, or Owner to refer to Lessor and its successor and assigns. The Parties agree as follows: 1. Certain Defined Terms. a. Cash Price means the price (exclusive of applicable sales or use taxes) at which the Mattress may be purchased from the Lessor as of the Effective Date and without entering into this Lease Agreement. b. Cost of Rental means the amount over the Cash Price that you will pay by entering into this Agreement and making all regular payments. c. Mattress means the [ ] mattress, Model Number [ ], you are renting pursuant to this Agreement. d. Rental Period means the duration of the Lease if all regulatory scheduled payments are made. e. Total of Payments means the amount you must pay to own the Mattress if all regular payments are made. 2. The Mattress. You are renting the Mattress, which is new and unused and has not been rented previously. The Cash Price of the Mattress is $[ ]. The Cash Price does not include applicable sales or use taxes. 3. Nature of Obligation and State Specific Disclosures. You are renting the Mattress. You will not own the Mattress until you make all of the regularly scheduled payments or you use the Early Purchase Option described in Paragraph 4.a. and in Exhibit A of this Agreement.

2 CALIFORNIA NOTICE. You are renting the Mattress. You will not own it until you make all of the regularly scheduled rental payments or you use the Early Purchase Option. You do not have the right to keep the Mattress if you do not make the required rental payments or do not use the Early Purchase Option. If you miss a payment, we can repossess the Mattress, but, you may have the right to the return of the same or similar merchandise. You should read the additional terms below for other fees such as late payment fees and return fees, that may apply. COLORADO NOTICE. Do not sign this before you read the entire Agreement, including any writing on the reverse side, even if otherwise advised. Do not sign this if it contains any blank spaces. You are entitled to an exact copy of any agreement you sign. You have the right to exercise an early buy-out option (referred to as the Early Purchase Option) as provided in this Agreement. Exercise of this option may result in a reduction of your total cost to acquire ownership under this Agreement. If you elect to make weekly rather than monthly payments and exercise your purchase option, you may pay more for the leased property. DELAWARE NOTICE. Notice to the Lessee: (1) Do not sign this lease-purchase Agreement before you read it or if it contains any blank space. (2) You are entitled to a completely filled in copy of this Agreement. (3) Under the law, you have the right to exercise an early-purchase option [referred to herein as the Early Purchase Option], which will result in a lower cost to acquire ownership. FLORIDA NOTICE. Do not sign this rental-purchase Agreement before you read it or if it contains any blank spaces. You are entitled to an exact copy of the rental-purchase Agreement you sign. Keep it to protect your legal rights. HAWAII NOTICE. Do not sign this before you read the entire Agreement, including any writing on the reverse side, even if told you do not need to. Do not sign this if it contains any blank spaces. You are entitled to an exact copy of any agreement you sign. You have the right to exercise any early buy-out option [referred to herein as the Early Purchase Option] as provided in this Agreement. Exercise of this option may result in a reduction of your total cost to acquire ownership under this Agreement. If you elect to make weekly rather than monthly payments and exercise your purchase option, you may pay more for the leased property.

3 IOWA NOTICE. Do not sign this before you read the entire Agreement, including any writing on the reverse side, even if otherwise advised. Do not sign this if it contains any blank spaces. You are entitled to an exact copy of any agreement you sign. You have the right to exercise any early buy-out option [referred to herein as the Early Purchase Option] as provided in this Agreement. Exercise of this option may result in a reduction of your total cost to acquire ownership under this Agreement. If you elect to make weekly rather than monthly payments and exercise your purchase option, you may pay more for the leased property. MAINE NOTICE. You will be renting this Mattress. You will not acquire equity or ownership rights in the property unless you make all payments necessary to acquire ownership. MICHIGAN NOTICE. This Agreement is regulated by state law and may be enforced by the attorney general or by private legal action. NEW MEXICO NOTICE. Do not sign this Agreement before you read it or if it contains blank spaces. You are entitled to a copy of the Agreement you sign. NEW YORK NOTICE. You are renting the Mattress. You will not own it until you make all of the regularly scheduled rental payments or you use the earlypurchase option [referred to herein as the Early Purchase Option]. You do not have the right to keep the Mattress if you do not make required rental payments or do not use the Early Purchase Option. If you miss a payment, the Lessor can repossess the Mattress, but you may have the right to the return of the same or similar merchandise. See the Agreement for an explanation of your rights. NORTH DAKOTA NOTICE. Do not sign this before you read the entire Agreement, including any writing on the reverse side, even if told you do not need to. Do not sign this if it contains any blank spaces. You are entitled to an exact copy of any agreement you sign. OHIO NOTICE. This lease-purchase Agreement is regulated by state law and may be enforced by the attorney general or by private legal action.

4 PENNSYLVANIA NOTICE. You are renting the Mattress. You will not own it until you make all of the regularly scheduled rental payments or you use the early-purchase option [referred to herein as the Early Purchase Option]. You do not have the right to keep the Mattress if you do not make required rental payments or do not use the Early Purchase Option. Subject to your grace periods and reinstatement rights, the Lessor may repossess the Mattress if you fail to make rental payments as scheduled. Your rights and responsibilities are fully explained in this rental-purchase Agreement. WYOMING NOTICE. Do not sign this Agreement before you read it or if it contains blank spaces. You are entitled to a copy of the Agreement you sign. 4. Lease Term; Payments; Purchase Rights. The initial term of this Agreement commences on the Effective Date and runs for a period of three (3) months, and unless this Agreement ends in accordance with Paragraph 9, it will automatically renew at the end of each thencurrent term for an additional term of three (3) months or such shorter period of time as may be necessary in order for you to pay the Total of Payments under this Agreement (collectively, the Term ). Your first payment must be made on the Effective Date (or, in our discretion, the next business day) and, so long as this Agreement remains in force, an additional payment will be charged on the monthly anniversary of the Effective Date (or, in our discretion, the next business day). 1 No. of Payments Payment Amount Sales/Use Tax Total Single payment [ ] $[ ] $[ ] $[ ] Total of Payments $[ ] $[ ] $[ ] This Agreement will end at the end of the Rental Period and you will own the Mattress if you have made all regular payments as shown above. The Cost of Rental for the Mattress under this Agreement, or the Total of Payments under the Agreement in excess of the Cash Price of the Mattress, is $[ ] before sales/use taxes. You will not acquire ownership rights in the Mattress unless you comply with the ownership terms of this Agreement or elect to utilize the Early Purchase Option as explained below in Paragraph 4.a. and in Exhibit A of this Agreement. The total number and dollar amount of payments necessary to acquire ownership of the Mattress, disclosed as the Total of Payments in the table above and in the Disclosure Table above the signature line of this Agreement, do not include other fees permitted by applicable law, such as late payment fees. You should read this Agreement for an explanation of any applicable additional fees. If you want to purchase the Mattress or similar property now, you should consider cash or credit terms that may be available to you. a. Early Purchase Option. Instead of making regular rental payments equal to the Total of Payments, you can purchase the Mattress at any time this Agreement remains in 1 If the Effective Date falls on one of the last days of a month and any other month does not have the number of days necessary for a true monthly anniversary of the Effective Date, then the last day of such month shall be considered the monthly anniversary of the Effective Date. For example, if your Effective Date happens to be July 31 st, the September monthly anniversary of the Effective Date shall be September 30 th because September does not have thirty-one (31) days.

5 force (the Early Purchase Option ) by paying (i) any past due amounts; plus (ii) an amount equal to the Early Purchase Option Price shown in Exhibit A (the Early Purchase Option Price ); plus (iii) any applicable sales/use taxes on the Early Purchase Option Price. The Early Purchase Option Price is determined by the formula set forth in Exhibit A. Exhibit A provides the amount required to exercise your Early Purchase Option after each payment, assuming you make each periodic rental payment on time. 5. Late Payments and Fees. If you fail to make any payment by the scheduled date, you will have a grace period of seven (7) days from the scheduled date to make full payment, after which time a late fee will be assessed in accordance with the laws of your state of residence, as set forth in Exhibit B. This fee will be assessed for each scheduled payment that is not made within seven (7) days of the scheduled date. We will not charge any fee that is not set forth in this Agreement or any fee that is not reasonable and actually incurred by us. A late fee will be collected only once on any accrued rental payment, no matter how long it remains unpaid. A late fee will not be assessed against a rental payment that is timely made, even though an earlier late fee has not been paid in full. 6. Default and Reinstatement. You are in breach of this Agreement if you fail to make any payment within the grace period as defined in Paragraph 5. However, unless you default on two consecutive payments, you may reinstate this Agreement without losing any of your rights by paying us all amounts you owe, including all past due rental payments and any applicable late fees within sixteen (16) days. Or, if you return or tender the Mattress to us and we do not permit you to keep it during such period, you have the right to reinstatement within one year after the scheduled payment date. Upon reinstatement, we will return the Mattress to you, if it is available. If not, we will provide substitute merchandise of comparable quality, age, condition, and warranty coverage, and the same brand, if available, all as required by law. Depending on your state of residence, a reinstatement fee may be charged to your account. This section does not prevent us from attempting to repossess the Mattress during the reinstatement period. However, such repossession does not affect your right to reinstate. We reserve the right to deny your reinstatement only if you have defaulted in making payments in three consecutive occasions, if you have stolen or unlawfully disposed the rental property, of it you have intentionally, willfully, wantonly, or recklessly damaged the Mattress. 7. Payment Method/Authorization. By executing this Agreement and completing and executing the Bank Account/Card Authorization information on Exhibit C of this Agreement, you authorize regularly scheduled charges to your account or payment card consistent with the payments described in this Agreement. You will be charged the amount indicated below each billing period. A receipt for each payment will be provided to you by electronic mail and the charge will appear on your bank account or payment card statement. You agree that no prior-notification will be provided unless the date or amount changes, in which case you will receive notice from us at least ten (10) days prior to the payment being collected. 8. Damage to and Protection of the Mattress. a. Duty of Lessor to Maintain the Mattress. If required by state law, during the Lease Term of this Agreement, we will maintain the Mattress in good working order without charging any fee in addition to the payments set forth in the Disclosure Table. In the event that we receive notice from you that the Mattress is not functioning properly, we will repair or replace the Mattress within the time required by law. If repairs cannot be completed to your reasonable satisfaction within thirty (30) days after we receive notice from you or within any longer period to which you voluntarily agree, we

6 will permanently replace the Mattress. All replacement merchandise will be of comparable quality, age, condition, and warranty coverage, if available. All of the Parties rights and obligations under this Agreement and applicable laws that applied to the Mattress will apply to any replacement merchandise. We will not charge you or hold you liable for any rental payment for any period of time during which the Mattress or any substitute merchandise is not in good working order. b. Mattress Damage Due to Fault of Lessee. The protections of Paragraph 8a, above, do not apply to the repair of damage resulting from your intentional, willful, wanton, reckless, or negligent conduct (which we have the burden of establishing). If: (i) the Mattress is damaged due to your negligent, reckless, or intentional acts; (ii) the Mattress is stolen, there is no evidence of burglary and you fail to establish your lack of participation in the theft; or (iii) you do not return the Mattress to us when required to do so, you must pay us, in addition to all other amounts you owe us, the least of: (A) the amount you would need to pay to acquire the Mattress; (B) the fair market value of the Mattress as of the date of loss; and (C) the cost to repair the Mattress, if applicable. c. Transferability of Existing Warranties. Upon acquiring ownership rights in the Mattress, any existing warranty provided by the manufacturer, distributor, or seller of the Mattress will be transferred by us to you, if allowed by the terms of the warranty. 9. Termination. a. Lessor s Right to Terminate. Subject to Paragraph 4 of this Agreement, we may end this Agreement and recover the Mattress (i) at our discretion; or (ii) if you breach this Agreement. b. Lessee s Right to Terminate. You may end this Agreement at the end of any thencurrent Term that is not the conclusion of the Lease Term, without penalty, by giving us notice at least thirty (30) days before the end of the then-current term, by returning the Mattress in good repair or making the Mattress available to us at the end of the then-current term and by paying us an amount equal to any amounts you owe us at the time of termination including the Lease Origination Fee. 10. Lessee s Right to Cancel. You may cancel this transaction, without any penalty or obligation, within three (3) business days of signing this Agreement or at any time if you have not yet taken possession of the Mattress. To cancel this transaction, you must notify us in writing by mailing and delivering a signed and dated copy of the Notice of Cancellation, provided as Exhibit D, or in similar form, to us at the address provided above. If you cancel, any other property traded in, any payments made by you under the Agreement, and any negotiable instrument executed by you will be returned within ten (10) days following receipt by us of your cancellation notice, and any security interest or collateral arising out of this transaction will be cancelled. If you cancel, you must make the Mattress available to us, in substantially as good condition as when received. If you fail to make the Mattress available to us, or if you agree to return the Mattress to us and fail to do so, then you remain liable for performance of all obligations under this Agreement. 11.Marketing Opt-Out. We may share your name and contact information, and information about your performance under this Agreement, with affiliated and non-affiliated companies that extend credit to consumers. You have the right to prevent our sharing of this information. To exercise this right, you must notify us in writing in accordance with Paragraph 13.

7 12.Credit Reporting. We may report information about your performance under this Agreement to credit bureaus (and other parties as permissible by law). Late payments, missed payments, or other defaults on this Agreement may be reflect in your credit report. If you believe that any information about this Agreement that we have furnished to a consumer reporting agency is inaccurate, or if you believe that you have been the victim of identity theft in connection with this or any agreement made by us, send us a notice in accordance with Paragraph 13. In your notice: (i) provide your name, mailing address, phone number, and Agreement number; (ii) identify the specific information that is being disputed; (iii) explain the basis for the dispute; and (iv) provide any supporting documentation you have that substantiates the basis of the dispute. If you believe that you have been the victim of identity theft, submit an identity theft affidavit or identity theft report. 13.Notices. All notices under this Agreement must be provided in writing by mail (or electronic mail in the case of the Lessee) to a Party at the address provided above. 14.No Requirement to Purchase Insurance. You are not required to purchase insurance or liability damage waiver for the Mattress, including insurance from or through us or from any insurer owned or controlled by us. 15.Assignment. We may sell, transfer, or assign this Agreement. You may not sell, transfer, or assign this Agreement without our prior written consent. You may not sell, assign, mortgage, pawn, pledge, encumber, hock, or otherwise dispose of the Mattress during the Lease Term of this Agreement. 16.Right to Take Possession. If you are in breach of this Agreement, we have the right to take possession of the Mattress without breaching the peace. You agree to pay all costs we incur in taking possession of the Mattress to the extent permitted by applicable law. 17.Accord and Satisfaction. Any statement accompanying your payment to the effect that your balance is paid in full will not bind us. Our deposit of any such payment will not constitute an accord and satisfaction, and we may apply the payment to your account. 18.Governing Law. This Agreement is governed by the laws of [ regard to conflict of law principles. ] without 19.Reduced Rental Payments. If involuntary job loss, involuntary reduced employment, illness, pregnancy, or disability has caused your income to be interrupted or significantly reduced, you have the right to make reduced rental payments if you have already made at least half of the total scheduled rental payments and want to continue to use the Mattress. You must provide us with evidence of the amount and cause of the interruption of reduction of income. If rental payments are reduced, the total dollar amount of payments necessary to acquire ownership of the Mattress will not be increased, but the number of payments necessary to acquire ownership will be increased accordingly and the rights and duties of both Parties will not otherwise be affected. When your income is restored, we may increase the amount of rental payments, but in no event shall rental payments exceed the originally disclosed amount of rental payments. 20.Consent to Receipt of Electronic Communications. By executing this Agreement, you consent to the receipt of all communications via electronic mail, other than those communications by law to be sent via other methods of delivery (e.g., hand delivery). 21.Entire Agreement. This agreement constitutes the entire Agreement between you and us concerning your rental and potential purchase Mattress.

8 TOTAL OF PAYMENTS: $[ ] You must pay this amount to own the Mattress if you make all the regular rental payments; you can buy the Mattress for less under the Early Purchase Option DISCLOSURE TABLE COST OF RENTAL: $[ ] Amount over Cash Price you will pay if you make all regular rental payments RENTAL PERIOD: [ ] Months This represents the Term of the Lease if all regularly scheduled rental payments are made; the initial term of the Lease is three (3) months CASH PRICE: $[ ] The Mattress is available at this price for cash from the Lessor AMOUNT OF EACH PAYMENT: $[ ] per month NUMBER OF PAYMENTS: [ ] BY SIGNING BELOW, YOU WILL BE SIGNING THIS LEASE, MEANING YOU AGREE TO ALL OF ITS TERMS AND ACKNOWLEDGE YOUR RECEIPT OF A COMPLETED COPY OF THIS LEASE. IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the Effective Date. DreamCloud, LLC By [Lessor name] [Lessee name]

9 EXHIBIT A EARLY PURCHASE OPTION PRICE Unless otherwise indicated for specific states in the table below, the formula to calculate the Early Purchase Option Price is: (Total of Payments less amount already paid) times fifty-five percent The following formulas will be used in states listed below to calculate your Early Purchase Option Price: Michigan New York Ohio West Virginia Early Purchase Option Price (as calculated under the formula above); provided that the Early Purchase Option Price shall not exceed the Cash Price less forty-five percent of all rental payments already made Cash Price times the number of rental payments remaining divided by the total number of rental payments The Cash Price of the Mattress less fifty percent of all rental payments already made Early Purchase Option Price (as calculated under the formula above); provided that the Early Purchase Option Price shall not exceed the Cash Price divided by the Total of Payments multiplied by the amount of remaining rental payments The chart below shows the amount required to exercise your Early Purchase Option after each payment, assuming you make each periodic payment on time. On or After Due Date of Payment No. Prior to Due Date of Payment No. Payment to Acquire Ownership Sales/Use Tax on Payment Total Payment to Exercise the Early Purchase Option 1 2 $[ ] $[ ] $[ ] 2 3 $[ ] $[ ] $[ ] 3 4 $[ ] $[ ] $[ ] 4 5 $[ ] $[ ] $[ ] 5 6 $[ ] $[ ] $[ ] 6 7 $[ ] $[ ] $[ ] 7 8 $[ ] $[ ] $[ ] 8 9 $[ ] $[ ] $[ ]

10 EXHIBIT B LATE FEES If you fail to make any payment by the scheduled date, you will have a grace period of seven (7) days from the scheduled date to make full payment, after which time a late fee of $5 will be assessed, unless you are a resident of state listed in the table below in which case the amount indicated beside such state will be assessed: California Connecticut Delaware For regularly scheduled payments $100 or greater, the late fee assessed will be $5. For regularly scheduled payments under $100, the late fee assessed will be 5 percent of the payment due, except that the late fee will never be less than $2. For regularly scheduled payments $100 or greater, the late fee assessed will be $5. For regularly scheduled payments under $100, the late fee assessed will be 5 percent of the payment due, except that the late fee will never be less than $1. The greater of $3 or 10 percent of the delinquent rental payment. Indiana $8. Maine Michigan Minnesota New York North Dakota The greater of $2 or 5 percent of the delinquent rental payment. The greater of $10 or 5 percent of the delinquent rental payment. The greater of $3 or 5 percent of the delinquent rental payment. The greater of $5 or 10 percent of the delinquent rental payment. The greater of $3 or 5 percent of the delinquent rental payment. Pennsylvania South Carolina $ The greater of $5 or 10 percent of the delinquent rental payment. Texas West Virginia For regularly scheduled payments $100 or greater, the late fee assessed will be $10. For regularly scheduled payments under $100, the late fee assessed will be 10 percent of the payment due, except that the late fee will never be less than $5. For regularly scheduled payments $300 or greater, the late fee assessed will be $15. For regularly scheduled payments under $300, the late fee assessed will be 5 percent of the payment due.

11 [Date] DreamCloud LLC 749 Occidental Avenue San Mateo, CA EXHIBIT C NOTICE OF CANCELLATION Please allow this to serve as a notice to DreamCloud LLC that I,, am cancelling Lease Agreement Number in accordance with Paragraph 9 of the Consumer Rental- Purchase Agreement. I understand that by canceling this Lease Agreement, I am obligated to make the Mattress available to DreamCloud in substantially as good condition as when received. I understand that if I fail to make the goods available, or if I fail to return the goods, I remain liable for performance of all obligations under the Lease Agreement. [Print Name] Lessee