Lessee herewith deposits with Lessor the sum of __________ as and for a Security Deposit (the “Security Deposit). If the Security Deposit listed above is less than _______, then in addition to the Section 1H weekly payment, Lessee shall pay to Lessor a weekly fee (a “Deposit Shortfall Fee”) to be allocated toward the Security Deposit. The Deposit Shortfall Fee shall be equal to the difference between ______ and the Security Deposit divided by 52, and will be indicated on Lessee’s monthly statement, as shown in Section 1G “Weekly Payment-First 52 payments”. Lessee shall pay such Deposit Shortfall Fee until the Security Deposit totals _________. Attached as Exhibit B hereto is an illustrative example of a Deposit Shortfall calculation (for Exhibit B hereto [Lessor reserves the right to increase the required Security Deposit upon 7 days written notice to Lessee.] Said Security Deposit shall be held by Lessor in a non-segregated account, without interest accruing thereon, in order to secure Lessee's performance of its obligations hereunder. The parties herewith further agree that in no event shall said security be intended to limit or otherwise establish the measure of Lessor's damage under any of the terms hereunder. Should Lessee default in the payment of any obligations due hereunder, and should said default continue for seven (7) days, Lessor in its discretion may apply such sums as necessary from said Security Deposit to any default by Lessee hereunder. Said Security Deposit may be used to pay, for example, and not by way of limitation, delinquent monthly payments; any sales, use, or excise taxes, fines or other penalties incurred; repossession fees and/or legal costs, expenses and attorneys’ fees incurred by Lessor in the performance of this Lease; or payments or obligations due or reimbursement for any other damages sustained by Lessor including any physical damage to the subject Vehicle or liability incurred in connection with the use thereof. In the event that Lessor in its discretion makes application of any amounts of said Security Deposit to any of Lessee's financial obligations referred to above, Lessee shall deposit with Lessor upon demand made, such amounts as are necessary to restore the amount of Security Deposit to its original amount. Failure by Lessee to maintain said Security Deposit in the amount listed herein shall constitute a default by said Lessee of this Lease and a breach thereof entitling Lessor to the exercise of all available remedies hereunder.
Provided Lessee is not in default, as defined herein, Lessor agrees that it will return to Lessee the amount of the Security Deposit less any amounts remaining due and owing Lessor (including early termination fees) by Lessee under this Lease or any other agreements with Lessor or its
MVLUBER Page 11 of 21 rev 3/4/14 v.7.25.14 affiliates. Return of the Security Deposit is further conditioned upon Lessee returning the subject Vehicle in the condition called for in Section 8. Any deduction for repairs or substandard return condition shall be made at Lessor's retail shop rates.
In the event that Lessee elects to purchase the subject Vehicle pursuant to any option set forth in Section 7 hereafter, any Security Deposit due and owing to Lessee may be applied to and credited against any option price as set forth therein, at Lessor’s discretion.
The Lessee has the option to purchase the Vehicle. Under this option to purchase, if Lessee is not in default, on the expiration of the Lease or sooner as agreed to by Lessor, the Lessee shall have the right to purchase the Vehicle (or require Lessor to sell it to Lessee's designee), in its condition and at its location at that time. Such option may only be exercised by written notice in fact received by Lessor within 15 days of the expiration of this Lease or as agreed to by Lessor, as the case may be. If Lessee exercises its purchase right, the price payable by Lessee shall be the sum of __________ plus tax, plus all rentals and other amounts then past due under this Lease. In the event that Lessee does not exercise said option in a timely manner, Lessee shall be deemed to have elected to return the Vehicle to Lessor and to terminate this Lease. An Administrative Fee set forth in Section 1O will be payable upon termination of this Lease.