Application for Certificate of Title for Leased Motor Vehicle

Motor Vehicle or Automobile Lease between Individuals

This Motor Vehicle Lease, is made on this day of 20

between of hereinafter referred to as Lessor, and

of hereinafter referred to as Lessee.

1. Lessor hereby leases to Lessee, and Lessee hereby leases from Lessor, the motor Vehicle described as follows

• New or used:
• Year and model: and
• Number of cylinders:
• Make or trade name:
• Body type:
• Model number or series:
• Manufacturer's Serial Number:
• Motor Number:

Said motor Vehicle is hereinafter referred to as the Vehicle.

2. Lessee shall pay as lease payments for the Vehicle $ per month in advance on the day of each month during the term of this Lease. All Lease payments shall be made by Lessee to Lessor at Lessor's address set forth above in this Lease or to such other person or organization as Lessor shall designate to Lessee in writing, or as designated in writing to Lessee by an assignee of this Lease pursuant to Section 15. Lease payments for the first month shall be prorated from the date of delivery. Interest at % may be charged by Lessor on Lease payments not paid when due.

3. Security Deposit. Lessee shall deposit with Lessor $ as security for the performance by Lessee of the terms and conditions of this Lease. If Lessee fully complies with all terms, the deposit shall be refunded to Lessee on termination of the Lease. Should Lessee fail to comply with any of the terms, such deposit may be applied by Lessor to payment of the costs and expenses, including attorney's fees, incurred by Lessor as a result of such default; such deposit, however, shall not be considered as payment for Lease payments due, nor shall it release Lessee from the obligation to make such Lease payments or from any of the obligations assumed by Lessee.

3. Valuation and Depreciation. The agreed value of the Vehicle at the time of its delivery to Lessee is $ . Depreciation shall be computed on the basis of % per month of the original agreed value from the date of delivery of the Vehicle.

4. Delivery of Vehicle. Lessor shall use all reasonable diligence to deliver the Vehicle to Lessee on the execution of this Lease, but shall not be liable to Lessee for any failure or delay in obtaining the Vehicle or making delivery, if Lessor shall have exercised reasonable diligence in attempting to make such delivery.

5. Lessee shall not use or permit the use of the Vehicle in a negligent or improper manner or in violation of any law, or so as to void any insurance covering the Vehicle, or as a public or private carrier, or permit the Vehicle to become subject to any lien, charge, or encumbrance.

6. Licensing and Registration. The Vehicle subject to this Lease shall bear license plates and the title shall be registered in the name of Lessor. The annual registration or license fees shall be paid by Lessee. Unless otherwise specified, Lessor, where required, shall register the Vehicle in conformance with the laws of . Local registration or registration of the Vehicle in other states shall be at the expense of Lessee.

7. Obligation to Insure. Insurance covering loss by in the amount of $ will be maintained by If Lessee shall fail to pay for or provide any insurance specified as the responsibility of Lessee, Lessor at his option may pay for such insurance and add the amount paid to the next monthly Lease payment due from Lessee. Lessee will promptly notify Lessor of any accident or incident that may result in an insurance claim.

8. Maintenance and Repairs. Unless otherwise agreed in writing by the parties, all service, materials, and repairs in connection with the use and operation of the Vehicle during the term of this Lease, including but not limited to gasoline, oil, batteries, repairs, maintenance, tires, and towing necessary for its proper use and operation, shall be at expense of Lessee. Lessee agrees to maintain the Vehicle in accordance with all service intervals recommended by the manufacturer of the Vehicle. Lessee shall take the Vehicle to the appropriate factory-authorized dealer for all service and repairs under the manufacturer's warranty. Lessor shall not be liable for repairs, nor shall any such repairs be charged to Lessor.

9. Miscellaneous Charges. Lessee agrees to pay all storage charges, parking charges, and fines incurred in connection with the Vehicle. Lessee will pay any fees (including vehicle registration and inspection fees) or taxes that may be imposed with respect to the Vehicle by any constituted governmental authority as the result of Lessee's use or intended use of the Vehicle.

10. Risk of Loss and Damage. Lessee shall bear all risks of damage to or loss of the Vehicle, or any portions of the Vehicle, not covered by insurance. All replacements, repairs, or substitutions of parts or equipment shall be at the cost and expense of Lessee and shall be accessions to the Vehicle. Lessee, at all times and at Lessee's expense, shall keep the Vehicle in good working order, condition, and repair, reasonable wear and tear excepted. The Lease payments on the Vehicle shall not be prorated or abated while it is being serviced or repaired.

11. Indemnity of Lessor. Lessee agrees to indemnify Lessor against all claims, losses, causes of action, and expenses, including attorney fees and legal expenses, arising from the use, maintenance, and operation of the Vehicle.

12. Termination of Lease. This Lease will terminate on or at any time after the first months of the term, provided Lessee has given Lessor days' advance notice in writing of intent to terminate and is not in default. On return of the Vehicle at the place and in the condition specified in Section 14, Lessor and Lessee will agree as to its then present value; if Lessor and Lessee cannot so agree within days after the return of the Vehicle, then the issue of present valuation shall be determined by Arbitration as set forth in Section 16 below. Should the total of the then present value be more than the depreciated value (as defined in this Lease), then such excess, less % of the agreed value, shall be paid to Lessee. If it be less than the depreciated value, then Lessee will pay the difference to Lessor, plus % of the agreed value. Depreciated value means the original agreed value less the monthly depreciation set forth in this Agreement, multiplied by the number of months and fractions of a month elapsed between the time of delivery of the Vehicle to Lessee and its return to Lessor.

13. Termination as a Result of Default. Time is of the essence of this Agreement. Lessor, at its option, may by written notice to Lessee declare this Lease in default on the happening of any of the following:

• Default by Lessee in payment or performance of any of Lessee's obligations;
• A proceeding in bankruptcy or under any law for relief of debtors involving Lessee or the Vehicle;
• Voluntary assignment of Lessee's interest in this Agreement;
• Involuntary transfer of Lessee's interest in this Agreement by operation of law; or
• Expiration or cancellation of any policy of insurance agreed to be paid for by Lessee, or the cessation in force according to its original terms of such insurance, or of any extension or renewal of the insurance, during the entire term of this Lease. On declaration by Lessor that Lessee is in default under this Lease, the Vehicle shall be surrendered and delivered to Lessor, and Lessor may take possession of it wherever it may be found, with or without process of law, and for that purpose may enter on the premises of Lessee. On default, Lessee and Lessee's successor in interest, whether by operation of law or otherwise, shall have no right, title, or interest in the Vehicle, or its possession or use, and Lessor shall retain all Lease payments and other sums paid by Lessee under this agreement with respect to the Vehicle. Lessor shall then proceed as provided in Section 12; in such event, there shall be deducted from the agreed value attorney's fees incurred by Lessor in the enforcement of its rights, plus % of the original value. Any surplus or deficiency resulting shall be paid to or paid by Lessee as provided in Section 12. The rights and remedies of Lessor under this Agreement are not exclusive, but cumulative and in addition to all other rights and remedies provided by law.

14. Return of Vehicle. On expiration of the Lease term, or earlier termination of the Lease as provided in this Lease, Lessee shall return the Vehicle to Lessor in the same condition as when received, less reasonable wear and tear, at or any other location mutually agreed on by the parties.

15. Assignment. Lessee agrees not to assign, transfer, sublet, pledge, or encumber any of his rights under this Lease, or the Lease itself. Lessee consents to and authorizes Lessor's assignment of all rentals, charges, and other amounts payable by Lessee to Lessor, or to become payable under this Agreement. If Lessor so assigns the sums agreed to be paid by Lessee to the rights of assignee to receive the sums shall be free from all defenses, setoffs, and counterclaims of every kind that Lessee may be entitled to assert against Lessor, but Lessee may separately assert such claims against Lessor. Notwithstanding such assignment, assignee shall not assume any of the obligations of Lessor. This Lease and the rights and interests of Lessee are subordinate to any security agreement executed by Lessor and any such assignment covering the Vehicle.

16. Mandatory Arbitration. Notwithstanding the foregoing, and anything herein to the contrary, any dispute under this Agreement shall be required to be resolved by binding arbitration of the parties hereto. If the parties cannot agree on an arbitrator, each party shall select one arbitrator and both arbitrators shall then select a third. The third arbitrator so selected shall arbitrate said dispute. The arbitration shall be governed by the rules of the American Arbitration Association then in force and effect.

17. Waiver. Failure of Lessor in any one or more instances to insist on the performance of any of the terms of this Lease, or to exercise any right or privilege conferred in this Lease, or the waiver of any breach of any terms of this Lease shall not subsequently be construed as a waiver of such terms, which shall continue in force as if no such waiver had occurred.

18. Limitation of Warranties. There are no warranties, expressed or implied, by Lessor to Lessee, except as contained in this Agreement, and Lessor shall not be liable for any loss or damage to Lessee, nor to anyone else, of any kind and however caused, whether by any vehicle, its repair, maintenance, or equipment, or its failure, or by interruption of service or use of any vehicle.

19. Severability. The invalidity of any portion of this Agreement will not and shall not be deemed to affect the validity of any other provision. If any provision of this Agreement is held to be invalid, the parties agree that the remaining provisions shall be deemed to be in full force and effect as if they had been executed by both parties subsequent to the expungement of the invalid provision.

20. Governing Law. This Agreement shall be governed by, construed, and enforced in accordance with the laws of the State of

21. Notices. Unless provided herein to the contrary, any notice provided for or concerning this Agreement shall be in writing and shall be deemed sufficiently given when sent by certified or registered mail if sent to the respective address of each party as set forth at the beginning of this Agreement.

22. Entire Agreement. This Agreement shall constitute the entire agreement between the parties and any prior understanding or representation of any kind preceding the date of this Agreement shall not be binding upon either party except to the extent incorporated in this Agreement.

23. Modification of Agreement. Any modification of this Agreement or additional obligation assumed by either party in connection with this Agreement shall be binding only if placed in writing and signed by each party or an authorized representative of each party.

24. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all of which together shall constitute but one and the same instrument.

25. Compliance with Laws. In performing under this Agreement, all applicable governmental laws, regulations, orders, and other rules of duly-constituted authority will be followed and complied with in all respects by both parties.

WITNESS our signatures as of the day and date first above stated.