DRAGONFLY CYCLING BIKE LEASE AGREEMENT

THIS DRAGONFLY CYCLING BIKE LEASE AGREEMENT (this “Lease”) is made and entered into as of the Effective Date (as defined on Exhibit A) by and between DRAGONFLY CYCLING, INC. a California corporation DBA Dragonfly Cycling (“Lessor”) and Lessee (as defined on Exhibit A).

1. Lease. Lessor hereby leases to Lessee and Lessee hereby leases from Lessor subject to the terms and conditions of this Lease, the Bike (“Bike”) more fully described on the Statement of Work attached as Exhibit A hereto.

2. Term. The term of this Lease shall commence as of the effective Date of this Lease and shall continue in effect for the Terms (as defined on Exhibit A). Lessor may terminate this Lease at any time.

3. Pick-up and Drop-off of Bike. Lessee is responsible for pick-up and drop-off of the Bike. The Bike shall be returned to Lessor no later than twenty-four (24) hours after the Lessor has requested the return of the Bike. Any Bike return request will be made via email and/or phone call from Lessor to Lessee. Should the Lessee not continue the lease of the Bike, the Bike shall be returned to Lessor no later than one (1) hour prior to the close of business of the expiration date of this Lease (the “Drop-off Time”). If the Bike is not returned with the Drop-off Time, then Lessee may be subject to late fees or surcharges as deemed appropriate by Lessor. If pick-up and drop-off by Lessee is not possible, delivery can be arranged for an additional fee.

4. Rent. Lessee shall make payments to Lessor during the Term, as rental for the Bike as described on Exhibit A (“Rent”). The first payment of Rent is due prior to the first rental period unless otherwise agreed upon in in writing by the parties. Lessee must have an active credit card on file with Lessor to lease the Bike.

5. Security Deposit. Lessee shall make a Security Deposit payment in the amount of $150.00 to Lessor at the start of the Term. Such Security Deposit shall be returned to Lessee within ten (10) days after the expiration or termination of this Lease, less any amounts deducted from the Security Deposit related to, but not limited to, damage to the Bike, late fees, early termination of the Lease, or any costs required to be paid by Lessee related to Lessee’s indemnification obligations pursuant to Section 10 of this Lease. Any amounts deducted from the Security Deposit shall be made at the sole discretion of the Lessor. Lessee may not use the Security Deposit at as any or part of any Rent payments.

6. Use. The Bike shall be used and operated by Lessee only, and Lessee shall not permit any other party to use the Bike. Lessee shall use the Bike in accordance with all applicable operating instructions and applicable governmental laws, rules and regulations.

7. Maintenance. Lessor shall provide the Bike to Lessee in clean, good condition and working order, with ordinary wear and tear expected. Lessee may not make any adjustments, repairs, alterations, modifications or replacements concerning the Bike, all of what shall be the responsibility of Lessor at all times, and Lessee agrees to notify Lessor immediately of any Bike issues, problems or damage. Unless Lessee gives Lessor notice of any defect within twenty-four (24) hours after receipt of the Bike, it shall be conclusively presumed that such Bike was delivered in good operating condition.

8. Ownership. The Bike is and shall at all times be the property of Lessor. Lessee shall have no right, title, or interest therein except as set forth in the Lease. The Bike is and shall at all times be and remain, personal property, and Lessee agrees to take all action necessary or reasonably requested by Lessor to ensure that the Bike shall remain personal property.

9. Disclaimer of Warranties. LESSEE LEASES THE BIKE “AS IS.” LESSOR MAKES NO WARRANTIES, EXPESS OR IMPLIED, CONCERNING THE BIKE, INCLUDING, WITHOUT LIMITATION, ANY WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE OR OF MERCHANTABILITY. So long as no Event of Default has occurred and is continuing, Lessor hereby assigns to Lessee and Lessee shall have the benefit of, any and all manufacturer’s warranties, service agreements and patent indemnities, if any, with respect to the Bike, provided however, that Lessee’s sole remedy for the breach of any such warranty, indemnification or service agreement shall be against the manufacture of such Bike and not against Lessor.

10. Indemnification. Lessee shall indemnify and defend and hold Lessor, its successors and assigns harmless from and against, any and all liabilities, obligation, losses, damages, claims and all costs and expenses thereof (including reasonable legal fees and expenses) in any way relation to or arising out of this Lease or the Bike, including, without limitation, the purchase, ownership, transportation, delivery, installation, leasing, possession, use, operation, maintenance, storage and return of such Bike, however arising, in connection with any event occurring during the Term, excepting, however, any liabilities, obligations, losses, damages, and claims resulting solely from the negligence and willful misconduct of Lessor. Lessee shall give Lessor, its successors or assigns prompt notice of any occurrence, event or condition in connection with which Lessor its successors or assigns may be entitled to indemnification hereunder.

11. Waiver and Release. By signing this Agreement, Lessee hereby agrees that there are certain inherent risks and dangers in indoor cycling and exercise and in using indoor cycling and exercise equipment in association with the Bike and this Agreement. In consideration of use of the Bike, in addition to the payment of any fee or charge, Lessee hereby (1) agrees to assume full responsibility for any and all injuries or damage which are sustained or aggravated by Lessee in relation to the Bike or this agreement, (2) waive, release and forever discharge Lessor, its officers, agents, members, employees, representatives, and all others from any and all responsibility, claims, rights, causes of action and/or liability from injuries or damages to Lessee’s person or property resulting from Lessee’s use of the Bike, and (3) represents Lessee has no medical or physical condition which would prevent Lessee from using the Bike and/or put Lessee in any physical or medical danger, and have not been instructed by a physician not to do so. Lessor hereby advises Lessee that individuals with chronic disabilities or conditions are at risk in using the Bike and are advised against doing so. In addition, if in the opinion of Lessor staff, Lessee would be at physical risk using the Bike, Lessee will be denied access to the use of the Bike until Lessee furnishes Lessor with an opinion letter from Lessee’s medical doctor, at Lessee’s sole cost and expense, specifically addressing Lessor’s concerns, and stating that Lessor’s concerns are unfounded. If Lessee declines to obtain such a letter, Lessee will not be permitted to use the Bike. Lessor reserves the right to refuse service at its discretion.

12. Assignment. Lessee may not assign its rights or obligations under the Lease to any other party. Lessee shall not lend or sublease the Bike to any other party.

13. Events of Default. Each of the following shall constitute an “Event of Default” hereunder: (a) Lessee fails to make any payment of Rent or any other amount payable to Lessor when due under any Lease and such nonpayment continues for a period of twenty-one (21) days after the date Lessee receives written notice from Lessor that the payment is due and not yet paid; or (b) Lessee fails to perform or observe any other term, covenant or condition of any Lease or any document, agreement or instrument executed pursuant hereto or in connection herewith and such failure shall continue uncured for a period of two (2) days after written notice from Lessor.

14. Remedies. Upon the occurrence of any Event of Default, Lessor may, without prior notice or demand (each of which is hereby waived) exercise any of the following remedies: (a) enter up the premises where the Bike is located and repossess and remove the Bike; or (b) exercise such other remedies as may be provided by law. Notwithstanding the foregoing, if the Bike is (i) not returned to Lessor; or (ii) damaged by Lessee beyond repair, then Lessee authorizes Lessor to charge Lessee’s credit card a replacement fee of $1,700.00 or, if necessary, to commence legal action to recover the sum of $1,700.00, in addition to any attorneys’ fees or costs incurred in such enforcement action.

15. Survival of Rights. Subject to all of the terms and provisions of this Lease, all of the covenants, conditions and obligations contained in such Lease shall be binding upon and inure to the benefit of the respective permitted successors and assigns of Lessor and Lessee.

16. Miscellaneous. (a) This Lease shall be governed in all respects by, and construed in accordance with, the laws of the State of California. (b) All notices, consents, instructions or requests desired or required to be given under any Lease shall be in email and shall become effective when sent, addressed to Lessor at studio@dragonfly-cycling.com, and to Lessee at Lessee’s email address on file with Lessor. (c) The Lease and all documentation executed in connection herewith shall constitute the complete and exclusive statement of the terms of the agreement of Lessor and Lessee with respect to the Bike leased hereby and shall automatically cancel and supersede any and all prior oral or written understandings with respect thereto. (d) If any of the provisions of this Lease are declared to be invalid in any jurisdiction, such provisions shall be severed from this Lease and the remaining provisions hereof shall remain in full force and effect. (e) No Term or provision of this Lease may be amended, altered, waived, discharge or terminated except by a written instrument signed by the parties hereto. (f) This Lease may be executed in any number of counterparts, each of which, when so executed and delivered, shall be deemed an original but all such counterparts taken together shall constitute one and the same instrument. (g) The headings of this Lease shall be for convenience of reference only and shall form no part of this Lease.