A. Scheduled Termination and Redelivery
If Lessee does not exercise Lessee’s option to purchase the Vehicle, then on the expiration of this Lease or its sooner termination by Lessor, (because of Lessee's default or as otherwise permitted), then the Lessee shall return the Vehicle to Lessor at a location designated by the Lessor and pay any past due amounts and any amount for excess wear and tear that is not ordinary wear and tear as well as the Section 2N mileage charge and the Section 1O Administrative Fee. Ordinary wear and tear and excess wear and tear is defined in Exhibit A attached hereto.
B. Early Termination Liability
In addition to the amounts owed under Section 5, in the event Lessor declares the Lease terminated or Lessee terminates this Lease prior to expiration of the Lease term, Lessee shall owe any past due amounts any amount for excess wear and tear that is not ordinary wear and tear described in Section 8A, , the Section 1OAdministrative Fee and, if the Lessee has not paid all weekly payments that would come due through the scheduled end of the Lease term, an Early Termination Surcharge as follows:
MVLUBER Page 12 of 21 rev 3/4/14 v.7.25.14
• Year 1 $_______ Year 2 $__________ Year 3 $_________ Year 4 $__________
A Lessee that returns a Vehicle voluntarily at a time and location designated by Lessor before Lessor incurs any Vehicle locating or recovery costs will not owe Lessor for costs of repossession, transportation and storage under Section 5(3)(iii). If the Lease terminates due to a Total Loss and Lessor receives insurance proceeds in the amount of the actual cash value of the Vehicle, Lessee will owe all past due amounts under Section 5 and will be required to pay any deductible, but will not owe amounts for excess wear and tear that is not ordinary wear and tear described in Section 8A, the Section 1O Administrative Fee, or the Early Termination Surcharge (“GAP Waiver”). Except as provided below, the GAP Waiver will not apply if the Total Loss is the result of fraudulent or criminal acts, confiscation by law enforcement, failure to report theft to police in a police report or if the Total Loss occurred outside the United States or due to gross negligence, or if Lessee failed to provide any insurance information or documents requested by Lessor or insurer. Notwithstanding the above sentence, in New York, the Gap Waiver will not apply only if the Total Loss is the result of fraudulent or criminal acts.
C. Odometer Disclosure Statement
Lessee must provide a signed written statement of the correct odometer reading of mileage on the Vehicle on termination of the Lease including upon Lessee purchase of the Vehicle as required under federal law and Lessee understands that failure to do so may result in fines and/or imprisonment. Lessee will pay Lessor for any loss, costs, claims or expenses incurred by Lessor as a result of Lessee’s failure to promptly provide such correct odometer disclosure statement.
D. Notice of Liability After Total Loss
This is to notify Lessee that the proposed lease of Vehicle that you intend to lease from Lessor DOES NOT RELIEVE YOU FROM RESPONSIBILITY FOR PAYMENT OF THE FULL PURCHASE OPTION PRICE, REDUCED BY THE NET AMOUNT OF ANY INSURANCE PROCEEDS RECEIVED BY US, in case of the total loss of the Vehicle. The purchase option price includes the stated lump sum and all remaining lease payments for the balance of the entire term, less the part of future lease payments allocated to the cost of insurance, if the Lessor provides insurance.