Model furniture lease disclosure. Date _________ These disclosures are provided pursuant to the Federal Consumer Leasing Act. 1. LESSOR(S) _________ LESSEE(S) _________ 2. Description of leased property [is attached]. Item Color Stock No. Mfg. Qty. ...................................... ...................................... ...................................... ...................................... ..................................... ...................................... ...................................... ...................................... ...................................... ..................................... ...................................... ...................................... ...................................... ...................................... ..................................... 3. Total Payment Deposit at Inception. —Refundable Security Deposit —Advance Monthly Payment of _________ —Delivery Charge $........................... ................................................................................................................................................................... 4. Term of the lease: _________ The first monthly payment of $_____ is due on _________; _________ subsequent payments of $_____ on the _________ of each month thereafter. 5. Total Monthly Payment. $........................... 6. Total of Monthly Payments. $........................... 7. Total of Other Charges Payable to Lessor: —Pick-up Charge $_____ —_________ $_____ $........................... 8. Fees and Taxes. Total amount you will pay during the term for official fees and taxes. $........................... 9. Insurance. —You (lessee) agree to provide insurance coverage of the following types in the following amounts: _________ —We (lessor) agree to provide the following types and amounts of insurance coverage: _________ Total premium cost: $........................... —You agree to pay a waiver fee of $_____ per month in lieu of insurance. Total Waiver Fee: $........................... 10. Maintenance. $........................... You are responsible for the following maintenance of the leased property: _________ We are responsible for the following maintenance of the leased property: _________ 11. Warranties. The leased property is subject to the following express warranties: _________ 12. Standards for Wear and Use. The following standards are applicable for determining unreasonable or excessive wear and use of the leased property: _________ 13. Early Termination and Default. (a). You may terminate this lease before the end of the lease term under the following conditions: _________ The charge for such early termination is _________. (b). We may terminate this lease before the end of the lease term under the following conditions: _________ Upon such termination we shall be entitled to the following charge(s): _________ 14. Security Interest. We reserve a security interest of the following type in the property listed below to secure performance of your obligations under this lease: _________ 15. Late Payments. The charge for late payments is _________. 16. Option to Purchase. (You have an option to purchase any or all items of the leased property at the following times: _________ If at the end of the term, the price will be $_____. If prior to the end of the term, the price will be $_____.) [You have no option to purchase the leased property.] Instructions for Completion of Model Furniture Lease Disclosures GENERAL INSTRUCTIONS Completion of this form may be facilitated by reference to the following instructions. Any question as to the permissibility or accuracy of a specific disclosure may be answered by reference to Regulation M, 12 CFR Part 213. Information which is required to be disclosed may be estimated if the information is unknown or unavailable, provided that the informations is clearly identified as an estimate and the estimate is based on the best information available and is reasonable. Any inapplicable disclosures should be deleted. This form is based on a monthly periodic payment. Any lessor whose lease contemplates a different payment period should change the form where it refers to "monthly" amounts to read "weekly" or other time period, as appropriate. All numerical amounts must be stated in figures and shall be printed in not less than the equivalent of ten point type or elite typewritten numerals or legibly handwritten. Paragraph numbers need not be printed in ten point type or its equivalent. SPECIFIC INSTRUCTIONS Item 1. The disclosures must be made on a written dated statement. All lessors and lessees must be identified by name. If, for example, one person arranges the lease and another person enters into the lease, both must be identified as lessors. An address may augment the identification but need not be supplied as part of the disclosure form. Item 2. This disclosure provides a brief description of the leased items. In the left column the name of the item should appear. The relevant entry should be made in the appropriate box in the columns to the right of the names of the items as indicated by the column headings. All of the descriptive elements in the column headings, except the one labeled "Item," are examples only. Those which are inapplicable to a lease plan may be deleted. Other descriptive column headings may be added (as indicated by the blank columns) if the lessor desires. Item 3. This disclosure shows the total amount of any initial payment the customer must make when the lease is consummated. The components of the initial payment must be identified and may, at the lessor's option, be itemized with respect to dollar amount. Additional components may be added to the list, as necessary, by use of the blank check box. The "Advance Monthly Payment" is the total of all amounts collected at the inception of the lease which are to be attributed to a monthly payment(s). For example, if the first month's rental payment is collected at the inception, the form might read "Advance Monthly Payment of the first month's rent" or a similar phrase. If the last month's payment, or any other payment in the nature of rental for a portion of the term, is collected at the inception, appropriate language should be provided to describe the components of the "Advance Monthly Payment." Item 4. This item discloses the term of the lease, the date of the first periodic payment and the dates or periods of all subsequent periodic payments. The blank spaces should be filled in with the appropriate terms. For example, after the phrase "Term of this lease:" the lessor may place the words "24 months" or "April 2, 1977, through April 2, 1979," as appropriate. In the blank spaces provided after the phrase "The first monthly payment of:" should be the appropriate amount and date. The first monthly payment may be part or all of the "Advance Monthly Payment" disclosed under Item 3. The phrase "subsequent payments of" should be preceded by the appropriate number of payments and followed with the appropriate terms, such as "$100.00 on the 2d of each month thereafter." Item 5. This term discloses the payment the lessee must make each month. The component parts of the monthly payment may but need not be itemized as to amount. Item 6. This item discloses the total of the monthly payments payable over the term of the lease. This figure is computed by multiplying the amount of the monthly payment in Item 5 by the number of subsequent payments in Item 4 and adding to that product the amount of the first monthly payment. Item 7. This item discloses the total of other charges payable to the lessor. This excludes charges for official fees, taxes, insurance and charges disclosed as totals under other items. The individual components must be identified and itemized as to amount. A blank check box is provided in order to add to the list, as necessary. Item 8. This item discloses the total amount to be paid by the lessee during the lease term for taxes and other official fees. Item 9. This item provides alternative methods of disclosing insurance coverage. It provides a disclosure for situations in which the lessee provides the coverage, in which case the types and amounts of coverage must be specified. It provides a disclosure for situations in which the lessee procures coverage through the lessor, in which case the types, amounts and costs of coverage must be specified. It also provides for disclosure of a fee in lieu of insurance. Item 10. This item provides for disclosure of the maintenance and servicing responsibilities of the parties. These responsibilities may be allocated either to the lessor or to the lessee, or may be divided between them. Item 11. This item discloses all express warranties applicable to the leased property made by the manufacturer or lessor and available to the lessee. A brief identification of the warranty must be supplied. A reference to the standard manufacturer's warranty would suffice. Item 12. This item discloses standards for wear and use established by the lessor. The lessor is permitted, but not required, to set such standards. Item 13. This item discloses the conditions under which the lessee may terminate the lease prior to the end of the lease term. It also discloses the amount or method of determining the amount of the charge which the lessee must pay for early termination. This item should disclose the conditions under which the lessor may terminate the lease prior to the end of the term, such as default. This item should also be used to disclose the amount or method of determining the amount of default charges. The charges or method of determining the charges for early termination by the lessor other than for lessee's default should be separately specified in this item. Item 14. This disclosure of the security taken must include, in the space provided, a brief identification of the types of security interests and an identification of the property covered by each such interest. Item 15. This disclosure indicates the amount or method of determining the amount of any charges for late payment. Item 16. This item provides alternative disclosures covering the several options a lessor may offer to a lessee to purchase the leased property. A lessor should use the disclosures applicable to the lease plan used. For example, if no option to purchase is offered, only the last sentence of the item should be used. If the lessor offers an option to purchase, the times at which it may be exercised must be supplied. The price must be disclosed for an option exercised at the end of the term and the price or method of computing the price for an option exercised during the lease term must be supplied.