SAMPLE. Annual Payment Terms and Conditions (page 1 of 3):

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THIS SERVICE CONTRACT TOGETHER WITH THE CERTIFICATE OF COVERAGE AND STATE

VARIATIONS FORM SET FORTH THE ENTIRE TERMS AND CONDITIONS OF THIS SERVICE CONTRACT.

SERVICE CONTRACT PROVISIONS

Various provisions in this Service Contract restrict coverage. Read the entire Service Contract carefully to determine rights, duties and what is and is not covered.

Throughout this Service Contract the words “you” and “your” refer to the Service Contract Holder shown in the Certificate of Coverage, and any other person qualifying as a Service Contract Holder under this Service Contract. The words, “we,” “us” and “our” refer to Service Net Warranty, LLC, the company contractually obligated to you to perform services under this Service Contract where in accordance with and as allowed by state law. If this Service Contract is purchased in Florida or Oklahoma, Service Net Solutions of Florida, LLC is contractually obligated to you to provide service under this Service Contract.

This is not an insurance policy. The Administrator is Service Net Warranty, LLC. The Administrator will assist you in understanding your coverage benefits from the day you enroll in this program. If your Covered Equipment needs repair for operational or mechanical failure, you are required to call the toll-free number listed on the front of this Service Contract or submit your claim in writing to: Service Net Warranty, 650 Missouri Ave., Jeffersonville, IN 47130. With any correspondence, please provide your daytime phone number and claim number if applicable. The expiration date and price of this Service Contract are listed on the face of this Service Contract. There are some limitations of coverage. You should review the entire terms and conditions of this Service Contract for details.

I. COVERAGE AGREEMENT

In consideration of the payment of the Service Contract purchase price, and subject to all Service Contract terms, conditions and exclusions contained herein, the parties agree as follows:

A. We shall pay on your behalf for the cost of covered services performed by an Authorized Servicer, in excess of the Service Fee, to repair or replace Covered Equipment in the event of a Breakdown that arises within your Dwelling.

II. GENERAL DEFINITIONS

A. “Authorized Servicer” means the technician assigned to you by us, in the event of a Breakdown, to perform repair or replacement services to Covered Equipment on our behalf.

B. “Breakdown” means the mechanical or electrical failure of a Covered Component of Covered Equipment to perform the function for which it was designed under normal conditions.

C. “Claim” means a demand to repair an individual Covered Component of Covered Equipment. D. “Covered Component” means an essential part of Covered Equipment that enables the Covered Equipment to perform the function for which it was designed under normal conditions.

E. “Covered Equipment” means an item or the equipment listed in the Certificate of Coverage attached to this Service Contract. Covered Equipment shall be located in or on the Dwelling and shall be owned by you. F. “Service Fee” means the amount you shall be required to pay, as shown on the Certificate of Coverage, prior to the commencement of diagnostic service per Claim.

G. ”Dwelling” means the single-family residence of which you are the owner that is your primary residence, used for residential purposes only and that is listed on the Certificate of Coverage.

1. A Dwelling other than a condominium or co-op apartment shall consist of: The entire structure, including the foundation and any attached garage, and any area in which a heat pump, central air conditioning compressor is located. The Dwelling shall include any area directly adjacent or connected to the building in which the Dwelling is located that contains a heat pump or central air conditioning compressor that is only used to heat or cool any common areas or units other than the Dwelling.

2. A condominium or co-op apartment Dwelling shall consist of: The interior living spaces of the condominium or co-op apartment and shall not include any common or shared areas maintained by the condominium or co-op association. The Dwelling shall include any area directly adjacent or connected to the building in which the Dwelling is located that contains a heat pump or central air conditioning compressor that is only used to heat or cool the interior living spaces of the condominium or co-op apartment.

III. GENERAL CONDITIONS

A. Service Contract Term: This is an annual Service Contract. Coverage under this Service Contract commences on the EFFECTIVE DATE as shown on the Certificate of Coverage and ends on the EXPIRATION DATE as shown on the Certificate of Coverage unless: (1) cancelled by you or us, or (2) your Dwelling is no longer eligible for coverage under the conditions set forth herein, in which case you are responsible for notifying us that your Dwelling is no longer eligible for coverage pursuant to Section III. Q. below.

B. Service Contract Territory: This Service Contract shall apply only to Breakdowns that take place inside Dwellings located in the United States.

C. Service Contract Liability Period: The Limits of Liability (both aggregate and sub-limits) described in this Service Contract and set forth on the Certificate of Coverage shall apply for each twelve (12) month period beginning on the Effective Date and, with respect to any renewal of this Service Contract, each successive twelve (12) month period beginning on the applicable Effective Date of renewal (each such period, a “Service Contract Liability Period”).

D. Limits of Liability: The Aggregate Limit of Liability is the most we shall pay for all repairs and/or replacements under this Service Contract during the Service Contract Liability Period. The Aggregate Limit of Liability of this Service Contract is shown on the Certificate of Coverage. In addition to the Aggregate Limit of Liability, this Service Contract includes sub-limits, where indicated, for specific Covered Equipment as set forth in Paragraph F. Repair or Replacement and Section IV. Coverage Descriptions, as applicable. E. CUSTOMERS WILL BE SUBJECT TO A 30 (THIRTY) DAY WAITING PERIOD IN WHICH NO CLAIMS OR LOSSES THAT OCCUR PRIOR TO THE CONTRACT DATE OR WITHIN THE FIRST 30 (THIRTY) DAYS OF THE CONTRACT WILL BE COVERED.

F. Multiple Units: This Service Contract provides coverage for only one of each type of Covered Equipment except for Section IV., A. Heating Equipment and B. Electric Central Air Conditioning/Heat Pump. G. Repair or Replacement: We shall have the sole right to determine whether Covered Equipment shall be repaired or replaced. If we determine that Covered Equipment cannot be repaired, we shall, at our sole option either:

1. Be responsible for the purchase, delivery and, if applicable, installation of replacement equipment of similar features, capacity and efficiency, but not for matching dimensions, brand or color; or

2. Offer a check in an amount equal to our cost to purchase, deliver, and if applicable, install replacement

equipment of similar features, capacity and efficiency. Our cost may be less than retail cost.

3. For replacement of Covered Equipment our maximum liability for each unit of Covered Equipment is listed in Section IV. The aggregate limit of liability per Service Contract shall be $5,000. If we determine that Covered Equipment is to be repaired and you do not wish to have the item repaired, you may request the cash value, in the form of a check, equal to our cost to repair the Covered Equipment.

Parts used to repair equipment may either be new or refurbished at Our sole option. Service may be performed by subcontractors. Non-original manufacturer’s parts may be used for repair of the Product if the manufacturer’s parts are unavailable or more costly.

H. Recall period: All service work performed is subject to a recall period of ninety (90) days on parts and thirty (30) days on labor. In the event service work performed under this Service Contract should fail during the recall period, we will arrange for the necessary repairs without requiring you to pay an additional Service Fee. I. Access: We shall not be responsible for reconfiguring space to accommodate replacement equipment when equipment of identical dimensions is not readily available. We shall not be responsible for the costs of gaining access to diagnose or repair a Breakdown. We shall not be responsible for restoration of any wall coverings, floor coverings, cabinets, countertops, tiling, paint or the like nor for the repair of any cosmetic defects.

J. Other Coverages: If a Claim covered by this Service Contract is also covered by another Service Contract, warranty, insurance policy, manufacturer’s recall, or the subject of any legal action, we shall pay only for the amount of the cost to repair or replace such Covered Equipment in excess of the amount due from that other insurance, warranty, service contract, manufacturer’s recall, or the subject of any legal action. In no event, however, shall we pay more than the applicable Limit of Liability.

K. What to Do in the Event of a Breakdown: Your Duties:

1. IF YOU SMELL GAS OR SMOKE, OR FEEL THAT YOU ARE IN IMMEDIATE DANGER, LEAVE YOUR DWELLING IMMEDIATELY AND CONTACT YOUR LOCAL POLICE, FIRE DEPARTMENT OR UTILITY COMPANY PRIOR TO CONTACTING US.

2. Contact our Customer Service Representative at the toll free number indicated on the Certificate of Coverage. Customer Service Representatives are available 24 hours a day, 365 days a year. If you fail to contact us prior to commencing service, coverage will not be provided.

3. Give a complete description of the problem, Covered Equipment involved, and specify if it is an emergency situation. Special efforts will be made to expedite service in emergencies.

After You Contact Us:

1. When notified by you of a covered Breakdown that has created an unsafe condition, WE SHALL USE BEST EFFORTS TO PROVIDE EMERGENCY SERVICE.

2. Our Customer Service Representative shall use best efforts to notify an Authorized Servicer and that Authorized Servicer shall promptly contact you to schedule a mutually convenient appointment during normal business hours:

a. Within 48 hours of your Claim on weekends and holidays; or

b. By 10:00 a.m. the next business day if your Claim is made after normal business hours.

3. Services will be performed without any requirement that Claim forms or any application be filed prior to the rendering of service.

4. You shall be required to pay for any permits required by local, state or federal law or ordinance and for any costs incurred for crane rentals or police required for us to gain access to Covered Equipment or to complete the repair or replacement of Covered Equipment.

5. You shall be required to pay the Service Fee prior to our establishing service. Payment must be via check, credit card or debit card. Inability to pay this Service Fee will result in a delay of service until such time you are able to make the payment.

L. YOU ARE REQUIRED TO CONTACT US PRIOR TO THE INITIATION OF SERVICE. WE SHALL NOT BE LIABLE FOR UNAUTHORIZED SERVICE.

M. Transfer of Your Service Contract: This Service Contract may not be transferred. If you sell, transfer, or otherwise cease occupying your Dwelling, you must notify us of your cancellation of this Service Contract in accordance with Paragraph Q. Cancellation.

N. Our Right to Recover Payment: If we pay for the repair or replacement of Covered Equipment under this Service Contract and you have a right to recover against another party, your rights shall become our rights. You shall do whatever is necessary to enable us to enforce these rights. We shall recover our costs in excess of the Service Fee(s), after we repair or replace the Covered Equipment.

O. We reserve the right to obtain a second opinion prior to authorizing a repair or replacement at our expense.

P. Concealment or Fraud: This entire Service Contract shall be void if, whether before or after a Claim, you have:

a. Intentionally concealed or misrepresented any material fact or circumstance; or b. Engaged in fraudulent conduct; or

c. Made false statements concerning this Service Contract. Q. Cancellation:

1. The Service Contract Holder shown in the Certificate of Coverage may cancel this Service Contract at any time for any reason by mailing to AIG Home Protection Program, Attn: Cancellations, 650 Missouri Avenue, Jeffersonville, IN 47130, or delivering to us advance written notice of cancellation. Cancellation shall be effective as of the date of the postmark.

2. If you cancel this Contract within sixty (60) days of the date purchased, you will receive a refund of the full purchase price less any claims. If you cancel this Contract thereafter, you will be refunded the remaining days of coverage on a monthly prorated basis, less costs for service performed (if applicable). If this Service Contract has been in effect for more than sixty (60) days or is a renewal of a Service Contract issued by us, this Service Contract may not be canceled by us except for one or more of the following reasons: a. Nonpayment;

b. Material misrepresentation or fraud; or

c. The risk has changed substantially since the Service Contract was issued. 3. Written notice of cancellation shall be mailed by us to you at least:

a. Ten (10) days prior to the effective date of cancellation if this Service Contract is canceled for nonpayment; b. Thirty (30) days prior to the effective date of cancellation if this Service Contract is canceled for any other reason.

4. Written notice of cancellation, including the reasons for cancellation, shall be mailed to you at your mailing address shown on the Certificate of Coverage. Notice of cancellation will state the effective date of cancellation. The Service Contract Term will end on that date.

R. Renewal:

This Contract is renewable at our sole discretion. If you wish to renew this Contract, please call the toll free

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number listed on the front of this Contract. The only dwelling that is afforded coverage under this Service

Contract is the Dwelling listed on the Certificate of Coverage. Once you no longer own the Dwelling listed on the Certificate of Coverage, or such Dwelling otherwise ceases to meet the qualifications for coverage set forth herein, then your eligibility for coverage under this Service Contract ceases. Your coverage will continue until the EXPIRATION DATE unless You notify us that Your Dwelling is no longer eligible for coverage. You are solely responsible for notifying us that your Dwelling is no longer eligible for coverage so that your coverage can be terminated and you can receive a refund of the remaining days of coverage on a monthly prorated basis, less costs for service performed (if applicable).Reimbursement Insurance Policy: This Plan is secured by a contractual liability or reimbursement insurance policy provided by Illinois National Insurance Company 500 W. Madison St. 30th Floor, Chicago, IL 60601, (800) 250-3819 in all states with the exception of AR, CA, FL, MS, NC, NY, OK, and VA which are covered by New Hampshire Insurance Company , located at 175 Water Street 25th Floor, New York, NY 10038. Telephone 1-800-250-3819. If, within sixty (60) days after proof of loss has been filed, we have not paid a covered claim, provided you with a refund, you are otherwise dissatisfied, or we are no longer a going concern, you may make a claim directly to the insurance company. Please enclose a copy of your plan when sending correspondence to the Insurer.

S. Parts: Parts used to repair Covered Equipment may either be new or refurbished at our sole option. Service may be performed by subcontractors.

IV. COVERAGE DESCRIPTIONS A. Heating Equipment:

1. We shall provide coverage of up to a maximum of $2,500 per Service Contract Liability Period. Customer is responsible for any costs in excess of $2,500. Covered components shall be limited to: All equipment and parts that affect the heating operation of your gas or electrical forced air furnace, or oil or gas fired boiler that heat the Dwelling unless specifically excluded under Paragraph A. 2. below or Section V. GENERAL EXCLUSIONS of this Service Contract.

2. We shall not provide coverage for: Humidifiers, heating capacities exceeding 5 tons or 150,000 BTU’s, improperly sized heating units, thermostats, electronic components, condenser casings, , electronic air cleaners, grills, registers, radiators, baseboard casings, mismatched components, concrete encased pipes or tubes, fireplaces, wood or coal burning stoves, inserts and chimneys, coal conversion units, solar heating systems, fuel storage tanks, energy conservation units, pressure regulators, geo-thermal systems, glycol systems, piping or tubing related to any radiant heating system, condensate lines or failures and blockages. B. Electric Central Air Conditioning/Heat Pump

1. We shall provide coverage of up to a maximum of $2,500 per Service Contract Liability Period. Customer is responsible for any costs in excess of $2,500. Covered components shall be limited to: All parts that affect the cooling operation of up to two units/two heat pumps which provide air flow through central ductwork, including evaporative coolers and built-in wall unit unless specifically excluded under Paragraph B. 2. below or Section V.GENERAL EXCLUSIONS of the Service Contract.

2. We shall not provide coverage for: Water towers, gas air conditioning systems, heating or cooling capacities exceeding 5 tons or 150,000 BTU’s, condenser casings, condenser pads, condenser slabs, registers and grills, filters, electronic air cleaners, window units, non-ducted wall units, humidifiers, roof jacks, stands, evaporative cooling pads, improperly sized units, chillers or solar air conditioning systems. C. Primary Kitchen Appliances:

1. We shall provide coverage of up to a maximum of $3,000 per Service Contract Liability Period. Customer is responsible for any costs in excess of $3,000. Covered components shall be limited to: All mechanical and electrical components and parts that affect the operation of the following appliances unless specifically excluded under Paragraph C. 2. below or Section V. GENERAL EXCLUSIONS of this Service Contract: a. Built-In Dishwasher (as defined by manufacturer’s specifications);

b. Oven/Range/Cooktop/ Wall Oven; and

c. Built-In Microwave Oven (as defined by manufacturer’s specifications).

2. We shall not provide coverage for: Meat probe assemblies, portable or countertop units, rotisseries, sensi-heat burners, rollers, soap dispensers, racks, shelves, baskets, buckets, glass or ceramic cooking surfaces, dishwashers and microwave ovens not specifically designed by the manufacturer to be built-in. D. Laundry Appliances:

1. We shall provide coverage of up to a maximum of $2,500 per Service Contract Liability Period. Customer is responsible for any costs in excess of $2,500. Covered components shall be limited to: All mechanical and electrical components and parts that affect the operation of the following appliances unless specifically excluded under Paragraph D. 2. below or Section V. GENERAL EXCLUSIONS of this Service Contract: a. Clothes Washer; and

b. Clothes Dryer; or

c. Stackable Clothes Washer/Clothes Dryer.

2. We shall not provide coverage for: Lint screens, venting, soap dispensers, baskets, inner and outer tubs, buckets, plastic mini tubes, and damage to clothing.

E. Primary Kitchen Refrigerator:

1. We shall provide coverage of up to a maximum of $3,000 per Service Contract Liability Period. Customer is responsible for any costs in excess of $3,000. Covered components shall be limited to: All mechanical and electrical equipment and parts that affect the operation of the unit unless specifically excluded under Paragraph E. 2. below or Section V. GENERAL EXCLUSIONS of this Service Contract.

2. We shall not provide coverage for: Buckets, stand-alone freezers, drawers, condenser housing, food spoilage, rollers, racks, and shelves.

F. Water Heater (Gas or Electric):

1. We shall provide coverage of up to a maximum of $1,500 per Service Contract Liability Period. Customer is responsible for any costs in excess of $1,500. Covered components shall be limited to: Burner tubing, internal tank, draft hood, gas shut-off valve (manual), main burner, pilot assembly, pilot tubing, relief valve (drain piping not included), spill switch, thermocouple, thermostat control (ECO, magnetic hood), vent connector (galvanized only), water shut-off valve, electric elements, electric thermostats or electronic ignition system unless specifically excluded under Paragraph F. 2. below or Section V.GENERAL EXCLUSIONS of this Service Contract.

2. We shall not provide coverage for: Energy conservation units or solar water heating systems, external holding or storage tanks, and instant hot water heaters.

V. GENERAL EXCLUSIONS We shall not provide coverage for:

A. Insulation, routine maintenance, filters, touch pad assemblies (unless they affect the primary function of the unit), remote transmitters, soap dispensers, remote controls, interior lining, removable attachments

and hoses, doors, door glass, hinges, springs, handles, knobs, dials, seals and/or gaskets, condenser pads, timers and clocks (unless they affect the primary function of the unit), flues, vents, power vents, flue vents, jacks, stands, exhaust fans, ductwork, transitions, plenums, light bulbs, light fixtures, sludge pumps, concrete encased equipment or systems.

B. Replacement or restoration of items including, but not limited to, cabinets, wall coverings, walls, floors, floor coverings, stone, countertops, stainless steel, accessories and/or add-ons options not essential to the basic function of Covered Equipment.

C. Claims arising out of rust, corrosion, mold, mildew, fungus, chemical or sedimentary buildup. D. Electronic computerized, energy, light and appliance management systems (“Smart appliances/ systems”) are not covered.

E. Claims arising out of pre-existing breakdowns, inadequate or excessive water pressure, inadequate capacity, improper installation, previous repair, unauthorized repair, power failure, electrical surge or overload, neglect, lack of maintenance, animal or insect infestation, structural defects, cosmetic defects, any modification to the equipment or appliance, or conditions that arise outside the Dwelling.

F. Systems, appliances or equipment located in common areas, commercial property, rental property, mobile homes, house boats, residential property used for commercial or rental purposes (including, but not limited to, day care centers, nursing/care facilities), fraternity/sorority houses, any property with shared heating, air conditioning, plumbing or electrical systems, or commercial equipment even if modified for residential use.

G. Claims arising out of war, riot, civil commotion, nuclear hazard, fire, flood, smoke, collapse, vandalism, misuse or abuse, theft, explosion, lightning, freeze, volcanic eruption, windstorm, earthquake, earth movement, settlement, mudslide, land subsidence, hail or other acts of God/nature.

H. We shall not be liable for consequential or incidental damages nor for failure to provide timely service due to conditions beyond our control; including but not limited to, delays in obtaining parts or equipment and labor difficulties.

I. Upgrades to your Covered Equipment or any additional expenses incurred in order to comply with local, state or federal building codes or other laws or regulations, or service involving hazardous or toxic materials, asbestos or lead. For purposes of this exclusion, hazardous or toxic materials do not include freon when it is associated with a Breakdown of covered equipment, unless freon leak is caused by internal or external tubing corrosion.

J. Claims for breakdowns of any item not specifically listed as covered in Section IV. Coverage Descriptions or arising out of the action or inaction of any component or peripheral that is not covered under this Service Contract.

K. Breakdowns that occur prior to the Effective Date or after this Service Contract expires or is otherwise no longer valid.

L. The cost to obtain any permits required by local, state or federal law or ordinance to repair or replace Covered Equipment.

M. Any costs associated with restoring areas affected by us in order to gain access to Covered Equipment. N. Any costs associated with the disposal of parts, equipment or appliances replaced by us as a result of a covered Claim.

O. Any costs associated with electrical or plumbing systems.

P. Equipment where the serial plate attached to the equipment is removed, defaced or made illegible. VI. STATE VARIATIONS

Certain states have specific conditions; conditions listed on the State Variations Form and/or the Certificate of Coverage may apply to you.

Alabama Residents: The use of non-original manufacturer’s parts is allowed under this Contract. If no claim has been made under this Contract, You may return this Contract within twenty (20) days of the date the Contract was mailed to You, or within ten (10) days of delivery if the Contract was delivered to you at the time of sale. In such a case, this Contract will be void and the Administrator will refund to You the full amount of the purchase price of this Contract. A ten percent (10%) penalty per month applies to any refund not paid or credited within forty-five (45) days after return of the service contract. This right to void the Contract is not transferable and applies only to the original Contract purchaser. In the event that We cancel this Contract for any reason, except nonpayment of the Contract fee or a material misrepresentation by you, We shall provide You with written notice of such cancellation at least five days prior to the effective date of the same. Arizona Residents: We will not cancel or void this Contract due to preexisting conditions, prior use or unlawful acts relating to the product or misrepresentation by Us or Our subcontractors. Neither We, Our assignees, nor Our subcontractors will cancel or void coverage under this Contract due to Our failure to provide correct information or Our failure to perform the services or repairs provided in a timely, competent, and workmanlike manner. The Provider is Service Net Warranty, LLC located at 650 Missouri Ave., Jeffersonville, IN 47130, Telephone number 1-800-343-4441.

California Residents: If You cancel this Contract within 30 days from the date of receipt, You will receive a full refund of the purchase price less the cost of any claims paid. If You cancel this Contract, You must provide written notice of cancellation to the Administrator at the address below. Informal dispute resolution is not available under this Contract. The Administrator is Service Net Warranty, LLC located at 650 Missouri Ave., Jeffersonville, IN 47130.

Connecticut Residents: This Contract is automatically extended while the product is being repaired. You may cancel this Contract if You return the product or the product is sold, lost, stolen, or destroyed. Resolution of Disputes: If You purchased this Service Contract in Connecticut, You may pursue arbitration to settle disputes between You and the provider of this Contract. You may mail Your complaint to: State of Connecticut, Insurance Department, P.O. Box 816, Hartford, CT 06142-0816, Attn: Consumer Affairs. The written complaint must describe the dispute, identify the price of the product and cost of repair, and include a copy of this Contract.

Florida Residents: If You cancel this Contract, return of premium will be based upon ninety percent (90%) of unearned pro rata premium less any claims that have been paid or less the cost of repairs made on Your behalf. If We cancel this Contract, return of premium will be based upon one hundred percent (100%) of unearned pro rata premium. The rate charged for this service contract is not subject to regulation by the Florida Office of Insurance Regulation.

Georgia Residents: The Administrator may not cancel this Contract except for fraud, material misrepresentation or non-payment by You. Notice of such cancellation will be in writing and given at least thirty (30) days prior to cancellation. You may cancel this Contract at any time. Cancellation will comply with Section 33-24-44 of the Georgia Code. Claims paid shall not be deducted from any refund owed.

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Item O. Concealment or Fraud should be amended to read: Concealment or Fraud: There will be no

coverage under this service contract, whether before or after a claim, you have: 1. Intentionally concealed or misrepresented any material fact or circumstance; or 2. Engaged in fraudulent conduct; or 3. made false statements concerning this service contract. Exclusion E. should be amended to read: Claims arising out of preexisting breakdowns known to you, inadequate or excessive water pressure, inadequate capacity, improper installation, previous repair, unauthorized repair, power failure, electrical surge or overload, neglect, lack of maintenance, animal or insect infestation, structural defects, cosmetic defects, any modification to the equipment or appliance, or conditions that arise outside the Dwelling.

Hawaii Residents: Any refund not made within forty-five (45) days shall include a ten percent (10%) per month penalty. This contract does not cover consequential damages or pre-existing conditions. In the event We cancel this contract, we shall provide five (5) days prior notice of such cancellation which notice shall include the effective date of cancellation.

Illinois Residents: If no claim has been made under this Contract, You may return this Contract within thirty (30) days of the date of contract purchase. The obligor, Service Net Warranty, LLC, is the party responsible for honoring cancellation requests. This Contract does not cover failure resulting from normal wear and tear. Indiana Residents: Proof of payment for this Contract constitutes proof of payment to the insurer identified in the Coverage and Term section, reverse, for reimbursement insurance coverage specified in that section. Michigan Residents: If the performance of this Service Contract is interrupted because of a strike or work stoppage at the company’s place of business, the effective period of the Service Contract shall be extended for the period of the strike or work stoppage.

NEVADA RESIDENTS: You are entitled to a “Free Look” period for this Contract. If You decide to cancel this Contract within thirty (30) days of purchase, You are entitled to a one hundred percent (100%) refund of any fees paid. No cancellation of this Contract may become effective until at least fifteen (15) days after a notice of cancellation is mailed to You at Your last known address. If We fail to pay the cancellation refund within 45 days of Your written request We will pay You a penalty of ten percent (10%) of the purchase price for each thirty (30) day period or portion thereof that the refund and any accrued penalties remain unpaid. If the contract has been in effect for 70 days or more, We can only cancel this Contract due to (1) unauthorized repairs which result in a material change in the nature or extent of the risk, occurring after the first effective date of the current Contract, which causes the risk of loss to be substantially and materially increased beyond that contemplated at the time the Contract was issued or last renewed; (2) Discovery of fraud or material misrepresentation by the holder in obtaining the service contract, or in presenting a claim for service; (3) An act or omission by You or a violation by You of any condition of the service contract, which occurred after the effective date of the service contract and which substantially and materially increases the service required under the service contract. This Service Contract contains exclusions and limitations to coverage but not reasons for which the contract itself may be cancelled. If the manufacturer’s warranty becomes dishonored during the term of this Contract, We will continue to provide any other coverage under this Contract, unless such coverage is otherwise excluded by the terms of this Contract. If Your covered failure results in a loss of heating, cooling, or electrical power to Your air conditioner or refrigerator/freezer, repairs on Your covered product will commence within 24 hours after You report your claim. If these repairs cannot be completed within three (3) calendar days, We will send You a report indicating the status of these repairs. No deductions of any type shall be made from any refund owed as a result of cancellation and or buyout.

New Mexico Residents: You may return this service contract within 20 days of the date this service contract was mailed to You, or within 10 days if the service contract was delivered to You at the time of sale. If You made no claim, the service contract is void and the full purchase price will be refunded to You. A 10% penalty per month will be added to a refund that is not made within 60 days of Your return of the service contract. These provisions apply only to the original purchaser of the service contract.

New York Residents: You may return this Contract by mailing it to the attention of the Administrator at the address listed on the back of this contract. A ten percent (10%) penalty per month will be added to a refund that is not made within thirty (30) days of return of the Contract to Us.

North Carolina Residents: The purchase of this Contract is not required either to purchase or to obtain financing for a home appliance. The Administrator may not cancel this Service Contract except for non-payment by You or for violation of any of the terms and conditions of this Contract.

Ohio Residents: Repairs cannot exceed the purchase price of the product; the total payment(s) for all claims under this Contract shall not exceed the original retail price of the covered product(s).

Oklahoma Residents: This Contract is not issued by the manufacturer or wholesaler company marketing the product. This Contract will not be honored by such manufacturer or wholesale company. The Administrator is Service Net Warranty, LLC located at 650 Missouri Ave., Jeffersonville, IN 47130. This is not an Insurance Contract. The coverage afforded under this contract is not guaranteed by the Oklahoma Insurance Guaranty Association. In the event the contract is canceled by the warranty holder, return of the provider fee shall be based upon ninety percent (90%) of the unearned pro rata provider fee less the actual cost of any service provided under the service warranty contract. In the event the contract is canceled by the association, return of premium shall be based upon one hundred percent (100%) of unearned pro rata provider fee less the actual cost of any service provided under the service warranty contract.

Oregon Residents: The Obligor and Administrator is Service Net Warranty, LLC, IN. 47130, Telephone number 1-800-343-4441.

Rhode Island Residents: Claims may only be made directly against the provider identified in this Contract. No claim may be made against any insurer identified in this Contract.

South Carolina Residents: This contract does not cover consequential damages or pre-existing conditions. A ten (10%) percent per month penalty shall apply to any cancellation refund not made within forty-five (45) days of the date cancellation was requested. In the event We cancel this Contract, we shall provide prior notice of such cancellation at least fifteen (15) days before the effective date of cancellation. Such notice shall state the effective date of cancellation and the reason for cancellation. Complaints or questions about this Contract may be directed to the South Carolina Department of Insurance, P.O. Box 100105, Columbia, South Carolina 29202-3105, telephone number 803-737-6180.

Tennessee Residents: This Contract is automatically extended while the product is being repaired.

Texas Residents: This contract is issued by a Residential Service Company licensed by the Texas Real Estate Commission. Complaints about this contract or company may be directed to the Texas Real Estate Commission at P.O. Box 12188, Austin, TX 78711-2188, (512) 936-3049. The purchase of a residential service contract or home warranty contract is optional and similar coverage may be purchased from other residential service companies or insurance companies authorized to conduct business in Texas. Any reference to “deductible” is hereby deleted and replaced with “service fee”.

Utah Residents: This service contract or warranty is subject to limited regulation by the Utah Insurance Department. To file a complaint, contact the Utah Insurance Department. Coverage afforded under this Contract is not guaranteed by the Utah Guaranty Fund. We can cancel this Contract during the first sixty (60) days, by mailing to You a notice of cancellation at least ten (10) days prior to the effective date of cancellation except that We can also cancel this Contract during such time period for nonpayment of premium by mailing You a notice of cancellation at least ten (10) days prior to the effective date of cancellation. After sixty (60) days have elapsed, We may cancel this Contract by mailing a cancellation notice to You at least thirty (30) days prior to the effective date of cancellation for cancellations due to any of the following reasons: (a) material misrepresentation; (b) substantial change in the risk assumed, unless You should reasonably have foreseen the change or contemplated the risk when entering into the Contract; or (c) substantial breach of contractual duties, conditions, or warranties. The notice of cancellation must be in writing to You at Your last known address and contain all of the following: (1) the Contract number; (2) the date of notice; (3) the effective date of cancellation; and (4) a detailed explanation of the reason for cancellation. If Your covered failure results in a loss of heating, cooling, or electrical power to Your air conditioner or refrigerator/freezer, repairs on Your covered product will commence within 24 hours after You report your claim by calling the number above. For any Product failure which is not reported prior to the expiration of this Contract will be considered if You can provide valid reason (examples; hospitalized, incapacitated, etc.) for delay of notice. Section III (O) does not apply to you.

Vermont Residents: If no claim has been made under this Contract, You may return the Contract within 20 days of the date of receipt and receive a full refund of the purchase price of this Contract.

Washington Residents: This right to void the Contract is not transferable and applies only to the original Contract purchaser. A ten percent (10%) penalty per month will be added to a refund that is not made within thirty (30) days of return of the Contract to Us. If We cancel this Contract for any reason, We must mail You written notice of such cancellation at least twenty-one (21) days prior to the effective date of such cancellation and state the true and actual reason for the cancellation. You are not required to wait before filing a claim directly with the insurer of this contract.

Wisconsin Residents: THIS CONTRACT IS SUBJECT TO LIMITED REGULATION BY THE OFFICE OF THE COMMISSIONER OF INSURANCE. Obligations of the provider under this service contract are insured under a service contract reimbursement insurance policy. A service contract may be cancelled by a provider only for nonpayment of the provider fee, material misrepresentation by the contract holder to the provider or administrator, or substantial breach of duties by the service contract holder relating to the covered product or its use. The provider shall mail a written notice to the service contract holder at the last-known address of the service contract holder contained in the records of the provider at least 5 days prior to cancellation by the provider, (b), The notice under par. (a) shall state the effective date of the cancellation and the reason for the cancellation, (c), If a

service contract is cancelled by the provider for a reason other than nonpayment of the provider fee, the provider shall refund to the service contract holder 100 percent of the unearned pro rata provider fee, less any claims paid, (d) The provider may charge a reasonable administrative fee for the cancellation which may not exceed 10 % of the provider fee. You may, within twenty (20) calendar days of the delivery of this Contract, reject and return this Contract for a full refund if no claim has been made. The right to void this service contract is not transferable and shall apply only to the original service contract purchase. After twenty (20) days, If You cancel this contract, You will be refunded the remaining days of coverage on a monthly prorated basis, less claims or service performed. If We fail to credit a refund within forty-five (45) days after return of the service contract, a ten percent (10%) penalty per month applies to any refund not paid or credited. We will not deny your claim solely because you did not obtain preauthorization if we are not prejudiced by your failure to notify us. In the event of a total loss of property, You can cancel this contract and receive a pro rata refund, less any claims paid. Section III (M & O) does not apply to Wisconsin residents. The Service Contract Provider is Service Net Warranty, LLC, located at 650 Missouri Ave., Jeffersonville, IN 47130.

Wyoming Residents: Service contracts shall require the provider to permit the original service contract holder to return the service contract within twenty (20) days of the date the service contract was mailed to the service contract holder or within ten (10) days of delivery if the service contract is delivered to the service contract holder at the time of sale or within a longer time period permitted under the service contract. Upon return of the service contract to the provider within the applicable time period, if no claim has been made under the service contract prior to its return to the provider, the service contract is void and the provider shall refund to the service contract holder, or credit the account of the service contract holder, with the full purchase price of the service contract. The right to void the service contract provided in this subsection is not transferable and shall apply only to the original service contract purchaser, and only if no claim has been made prior to its return to the provider. If we cancel this Contract for reasons other than nonpayment, a material misrepresentation made by you to us or because of a substantial breach of duties by you relating to the product or its use, we will mail a written notice to you at least ten (10) days prior to cancellation. The notice of cancellation shall state the effective date of cancellation and the reason for cancellation. A ten percent (10%) penalty per month shall be added to a refund that is not paid or credited within forty-five (45) days after return of the service contract to the provider.

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THIS SERVICE CONTRACT TOGETHER WITH THE CERTIFICATE OF COVERAGE AND STATE

VARIATIONS FORM SET FORTH THE ENTIRE TERMS AND CONDITIONS OF THIS SERVICE CONTRACT.

SERVICE CONTRACT PROVISIONS

Various provisions in this Service Contract restrict coverage. Read the entire Service Contract carefully to determine rights, duties and what is and is not covered.

Throughout this Service Contract the words “you” and “your” refer to the Service Contract Holder shown in the Certificate of Coverage, and any other person qualifying as a Service Contract Holder under this Service Contract. The words, “we,” “us” and “our” refer to Service Net Warranty, LLC, the company contractually obligated to you to perform services under this Service Contract where in accordance with and as allowed by state law. If this Service Contract is purchased in Florida or Oklahoma, Service Net Solutions of Florida, LLC is contractually obligated to you to provide service under this Service Contract.

This is not an insurance policy. The Administrator is Service Net Warranty, LLC. The Administrator will assist you in understanding your coverage benefits from the day you enroll in this program. If your Covered Equipment needs repair for operational or mechanical failure, you are required to call the toll-free number listed on the front of this Service Contract or submit your claim in writing to: Service Net Warranty, 650 Missouri Ave., Jeffersonville, IN 47130. With any correspondence, please provide your daytime phone number and claim number if applicable. The expiration date and price of this Service Contract are listed on the face of this Service Contract. There are some limitations of coverage. You should review the entire terms and conditions of this Service Contract for details.

I. COVERAGE AGREEMENT

In consideration of the payment of the Service Contract purchase price, and subject to all Service Contract terms, conditions and exclusions contained herein, the parties agree as follows:

A. We shall pay on your behalf for the cost of covered services performed by an

Authorized Servicer, in excess of the Service Fee, to repair or replace Covered Equipment in the event of a Breakdown that arises within your Dwelling.

II. GENERAL DEFINITIONS

A. “Authorized Servicer” means the technician assigned to you by us, in the event of a Breakdown, to perform repair or replacement services to Covered Equipment on our behalf.

B. “Breakdown” means the mechanical or electrical failure of a Covered Component of Covered Equipment to perform the function for which it was designed under normal conditions.

C. “Claim” means a demand to repair an individual Covered Component of Covered Equipment. D. “Covered Component” means an essential part of Covered Equipment that enables the Covered Equipment to perform the function for which it was designed under normal conditions.

E. “Covered Equipment” means an item or the equipment listed in the Certificate of Coverage attached to this Service Contract. Covered Equipment shall be located in or on the Dwelling and shall be owned by you. F. “Service Fee” means the amount you shall be required to pay, as shown on the Certificate of Coverage, prior to the commencement of diagnostic service per Claim.

G. ”Dwelling” means the single-family residence of which you are the owner that is your primary residence, used for residential purposes only and that is listed on the Certificate of Coverage.

1. A Dwelling other than a condominium or co-op apartment shall consist of: The entire structure, including the foundation and any attached garage, and any area in which a heat pump, central air conditioning compressor is located. The Dwelling shall include any area directly adjacent or connected to the building in which the Dwelling is located that contains a heat pump or central air conditioning compressor that is only used to heat or cool any common areas or units other than the Dwelling.

2. A condominium or co-op apartment Dwelling shall consist of: The interior living spaces of the condominium or co-op apartment and shall not include any common or shared areas maintained by the condominium or co-op association. The Dwelling shall include any area directly adjacent or connected to the building in which the Dwelling is located that contains a heat pump or central air conditioning compressor that is only used to heat or cool the interior living spaces of the condominium or co-op apartment.

III. GENERAL CONDITIONS

A. Service Contract Term: This is a monthly Service Contract. Coverage under this Service Contract commences on the EFFECTIVE DATE as shown on the Certificate of Coverage and automatically renews every month thereafter unless: (1) cancelled by you or us, or (2) your Dwelling is no longer eligible for coverage under the conditions set forth herein, in which case you are responsible for notifying us that your Dwelling is no longer eligible for coverage pursuant to Section III.Q.(3) below. If the program is terminated by us, this Service Contract will also non-renew on the last day of the month in which you are notified that the program is terminated.

B. Service Contract Territory: This Service Contract shall apply only to Breakdowns that take place inside Dwellings located in the United States.

C. Service Contract Liability Period: The Limits of Liability (both aggregate and sub-limits) described in this Service Contract and set forth on the Certificate of Coverage shall apply for each twelve (12) month period beginning on the Effective Date and, with respect to any renewal of this Service Contract, each successive twelve (12) month period beginning on the applicable Effective Date of renewal (each such period, a “Service Contract Liability Period”).

D. Limits of Liability: The Aggregate Limit of Liability is the most we shall pay for all repairs and/or replacements under this Service Contract during the Service Contract Liability Period. The Aggregate Limit of Liability of this Service Contract is shown on the Certificate of Coverage. In addition to the Aggregate Limit of Liability, this Service Contract includes sub-limits, where indicated, for specific Covered Equipment as set forth in Paragraph F. Repair or Replacement and Section IV. Coverage Descriptions, as applicable. E. CUSTOMERS WILL BE SUBJECT TO A 30 (THIRTY) DAY WAITING PERIOD IN WHICH NO CLAIMS OR LOSSES THAT OCCUR PRIOR TO THE CONTRACT DATE OR WITHIN THE FIRST 30 (THIRTY) DAYS OF THE CONTRACT WILL BE COVERED.

F. Multiple Units: This Service Contract provides coverage for only one of each type of Covered Equipment except for Section IV., A. Heating Equipment and B. Electric Central Air Conditioning/Heat Pump. G. Repair or Replacement: We shall have the sole right to determine whether Covered Equipment shall be repaired or replaced. If we determine that Covered Equipment cannot be repaired, we shall, at our sole option either:

1. Be responsible for the purchase, delivery and, if applicable, installation of replacement equipment of similar features, capacity and efficiency, but not for matching dimensions, brand or color; or

2. Offer a check in an amount equal to our cost to purchase, deliver, and if applicable, install replacement equipment of similar features, capacity and efficiency. Our cost may be less than retail cost.

3. For replacement of Covered Equipment our maximum liability for each unit of Covered Equipment is listed in Section IV. The aggregate limit of liability per Service Contract shall be $5,000. If we determine that Covered Equipment is to be repaired and you do not wish to have the item repaired, you may request the cash value, in the form of a check, equal to our cost to repair the Covered Equipment.

Parts used to repair equipment may either be new or refurbished at Our sole option. Service may be performed by subcontractors. Non-original manufacturer’s parts may be used for repair of the Product if the manufacturer’s parts are unavailable or more costly.

H. Recall period: All service work performed is subject to a recall period of ninety (90) days on parts and thirty (30) days on labor. In the event service work performed under this Service Contract should fail during the recall period, we will arrange for the necessary repairs without requiring you to pay an additional Service Fee.

I. Access: We shall not be responsible for reconfiguring space to accommodate replacement equipment when equipment of identical dimensions is not readily available. We shall not be responsible for the costs of gaining access to diagnose or repair a Breakdown. We shall not be responsible for restoration of any wall coverings, floor coverings, cabinets, countertops, tiling, paint or the like nor for the repair of any cosmetic defects.

J. Other Coverages: If a Claim covered by this Service Contract is also covered by another Service Contract, warranty, insurance policy, manufacturer’s recall, or the subject of any legal action, we shall pay only for the amount of the cost to repair or replace such Covered Equipment in excess of the amount due from that other insurance, warranty, service contract, manufacturer’s recall, or the subject of any legal action. In no event, however, shall we pay more than the applicable Limit of Liability.

K. What to Do in the Event of a Breakdown: Your Duties:

1. IF YOU SMELL GAS OR SMOKE, OR FEEL THAT YOU ARE IN IMMEDIATE DANGER, LEAVE YOUR DWELLING IMMEDIATELY AND CONTACT YOUR LOCAL POLICE, FIRE DEPARTMENT OR UTILITY COMPANY PRIOR TO CONTACTING US.

2. Contact our Customer Service Representative at the toll free number indicated on the Certificate of Coverage. Customer Service Representatives are available 24 hours a day, 365 days a year. If you fail to contact us prior to commencing service, coverage will not be provided.

3. Give a complete description of the problem, Covered Equipment involved, and specify if it is an emergency situation. Special efforts will be made to expedite service in emergencies.

After You Contact Us:

1. When notified by you of a covered Breakdown that has created an unsafe condition, WE SHALL USE BEST EFFORTS TO PROVIDE EMERGENCY SERVICE.

2. Our Customer Service Representative shall use best efforts to notify an Authorized Servicer and that Authorized Servicer shall promptly contact you to schedule a mutually convenient appointment during normal business hours:

a. Within 48 hours of your Claim on weekends and holidays; or

b. By 10:00 a.m. the next business day if your Claim is made after normal business hours.

3. Services will be performed without any requirement that Claim forms or any application be filed prior to the rendering of service.

4. You shall be required to pay for any permits required by local, state or federal law or ordinance and for any costs incurred for crane rentals or police required for us to gain access to Covered Equipment or to complete the repair or replacement of Covered Equipment.

5. You shall be required to pay the Service Fee prior to our establishing service. Payment must be via check, credit card or debit card. Inability to pay this Service Fee will result in a delay of service until such time you are able to make the payment.

K. YOU ARE REQUIRED TO CONTACT US PRIOR TO THE INITIATION OF SERVICE. WE SHALL NOT BE LIABLE FOR UNAUTHORIZED SERVICE.

L. Transfer of Your Service Contract: This Service Contract may not be transferred. If you sell, transfer, or otherwise cease occupying your Dwelling, you must notify us of your cancellation of this Service Contract in accordance with Paragraph P. Cancellation.

M. Our Right to Recover Payment: If we pay for the repair or replacement of Covered Equipment under this Service Contract and you have a right to recover against another party, your rights shall become our rights. You shall do whatever is necessary to enable us to enforce these rights. We shall recover our costs in excess of the Service Fee(s), after we repair or replace the Covered Equipment.

N. We reserve the right to obtain a second opinion prior to authorizing a repair or replacement at our expense.

O. Concealment or Fraud: This entire Service Contract shall be void if, whether before or after a Claim, you have:

1. Intentionally concealed or misrepresented any material fact or circumstance; or 2. Engaged in fraudulent conduct; or

3. Made false statements concerning this Service Contract. P. Cancellation:

1. The Service Contract Holder shown in the Certificate of Coverage may cancel this Service Contract at any time by mailing to AIG Home Protection Program, Attn: Cancellations, 650 Missouri Avenue, Jeffersonville, IN 47130, or delivering to us advance written notice of cancellation. Cancellation shall be effective as of the date of the postmark.

2. If you cancel this Service Contract during your 30-day review period, you will owe nothing; if you cancel this Service Contract at any time thereafter you will continue to be covered until the final day of the then-current coverage period in which you provide such notice of cancellation. Your cancellation will become effective the following coverage period and you will remain liable for any other fees, purchases or charges to be paid pursuant to this Service Contract. If we are unable to bill to your designated billing source for the monthly fee due for the Service Contract, we shall have the right to terminate this Service Contract in which event you will no longer have access to any of its benefits. In addition to our termination rights set forth above, we may elect in our sole discretion to keep this Service Contract in effect and suspend your access to all of its benefits until such time (if any) as we are able to bill the monthly fee to your designated billing source. The benefits included within this Service Contract require that the monthly fee be paid when due. Any alterations to your account made by you may impact your coverage under this Service Contract. . 3. We, at our sole option, may cancel this Service Contract due to non-payment. If we cancel this Contract due to non-payment, coverage ceases immediately upon receipt of notice of cancellation.

4. If this Service Contract has been in effect for more than sixty (60) days or is a renewal of a Service Contract issued by us, this Service Contract may not be canceled by us except for one or more of the

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SAMPLE

following reasons:

a. Nonpayment;

b. Material misrepresentation or fraud; or

c. The risk has changed substantially since the Service Contract was issued. 5. Written notice of cancellation shall be mailed by us to you at least:

a. Ten (10) days prior to the effective date of cancellation if this Service Contract is canceled for nonpayment; b. Thirty (30) days prior to the effective date of cancellation if this Service Contract is canceled for any other reason.

6. Written notice of cancellation, including the reasons for cancellation, shall be mailed to you at your mailing address shown on the Certificate of Coverage. Notice of cancellation will state the effective date of cancellation. The Service Contract Term will end on that date.

Q. Renewal:

1. This Service Contract shall auto-renew on a monthly basis and the Service Contract purchase price shall be paid in equal installments and charged to your designated billing source.

2. If the program is terminated by us, this Service Contract will non-renew on the last day of the month in which you are notified that the program is terminated, as applicable.

3. The only dwelling that is afforded coverage under this Service Contract is the Dwelling listed on the Certificate of Coverage. Once you no longer own the Dwelling listed on the Certificate of Coverage, or such Dwelling otherwise ceases to meet the qualifications for coverage set forth herein, then your eligibility for coverage under this Service Contract ceases. Your coverage will continue to renew on a monthly basis until you notify us that your Dwelling is no longer eligible for coverage. You are solely responsible for notifying us that your Dwelling is no longer eligible for coverage so that your coverage and monthly deductions can be terminated.

R. Reimbursement Insurance Policy: This Plan is secured by a contractual liability or reimbursement insurance policy provided by Illinois National Insurance Company in all states with the exception of AR, CA, FL, MS, NC, NY, OK, and VA, which are covered by New Hampshire Insurance Company Inc. , both located at 180 Maiden Lane, 25th Floor, New York, NY 10038, Telephone 1-800-250-3819. If, within sixty (60) days after proof of loss has been filed, we have not paid a covered claim, provided you with a refund, you are otherwise dissatisfied, or we are no longer a going concern, you may make a claim directly to the insurance company. Please enclose a copy of your plan when sending correspondence to the Insurer. S. Parts: Parts used to repair Covered Equipment may either be new or refurbished at our sole option. Service may be performed by subcontractors.

IV. COVERAGE DESCRIPTIONS A. Heating Equipment:

1. We shall provide coverage of up to a maximum of $2,500 per Service Contract Liability Period. Customer is responsible for any costs in excess of $2,500. Covered components shall be limited to: All equipment and parts that affect the heating operation of your gas or electrical forced air furnace, or oil or gas fired boiler that heat the Dwelling unless specifically excluded under Paragraph A. 2. below or Section V. GENERAL EXCLUSIONS of this Service Contract.

2. We shall not provide coverage for: Humidifiers, heating capacities exceeding 5 tons or 150,000 BTU’s, improperly sized heating units, thermostats, electronic components, condenser casings, , electronic air cleaners, grills, registers, radiators, baseboard casings, mismatched components, concrete encased pipes or tubes, fireplaces, wood or coal burning stoves, inserts and chimneys, coal conversion units, solar heating systems, fuel storage tanks, energy conservation units, pressure regulators, geo-thermal systems, glycol systems, piping or tubing related to any radiant heating system, condensate lines or failures and blockages. B. Electric Central Air Conditioning/Heat Pump

1. We shall provide coverage of up to a maximum of $2,500 per Service Contract Liability Period. Customer is responsible for any costs in excess of $2,500. Covered components shall be limited to: All parts that affect the cooling operation of up to two units/two heat pumps which provide air flow through central ductwork, including evaporative coolers and built-in wall unit unless specifically excluded under Paragraph B. 2. below or Section V.GENERAL EXCLUSIONS of the Service Contract.

2. We shall not provide coverage for: Water towers, gas air conditioning systems, heating or cooling capacities exceeding 5 tons or 150,000 BTU’s, condenser casings, condenser pads, condenser slabs, registers and grills, filters, electronic air cleaners, window units, non-ducted wall units, humidifiers, roof jacks, stands, evaporative cooling pads, improperly sized units, chillers or solar air conditioning systems. C. Primary Kitchen Appliances:

1. We shall provide coverage of up to a maximum of $3,000 per Service Contract Liability Period. Customer is responsible for any costs in excess of $3,000. Covered components shall be limited to: All mechanical and electrical components and parts that affect the operation of the following appliances unless specifically excluded under Paragraph C. 2. below or Section V. GENERAL EXCLUSIONS of this Service Contract: a. Built-In Dishwasher (as defined by manufacturer’s specifications);

b. Oven/Range/Cooktop/ Wall Oven; and

c. Built-In Microwave Oven (as defined by manufacturer’s specifications).

2. We shall not provide coverage for: Meat probe assemblies, portable or countertop units, rotisseries, sensi-heat burners, rollers, soap dispensers, racks, shelves, baskets, buckets, glass or ceramic cooking surfaces, dishwashers and microwave ovens not specifically designed by the manufacturer to be built-in. D. Laundry Appliances:

1. We shall provide coverage of up to a maximum of $2,500 per Service Contract Liability Period. Customer is responsible for any costs in excess of $2,500. Covered components shall be limited to: All mechanical and electrical components and parts that affect the operation of the following appliances unless specifically excluded under Paragraph D. 2. below or Section V. GENERAL EXCLUSIONS of this Service Contract: a. Clothes Washer; and

b. Clothes Dryer; or

c. Stackable Clothes Washer/Clothes Dryer.

2. We shall not provide coverage for: Lint screens, venting, soap dispensers, baskets, inner and outer tubs, buckets, plastic mini tubes, and damage to clothing.

E. Primary Kitchen Refrigerator:

1. We shall provide coverage of up to a maximum of $3,000 per Service Contract Liability Period. Customer is responsible for any costs in excess of $3,000. Covered components shall be limited to: All mechanical and electrical equipment and parts that affect the operation of the unit unless specifically excluded under Paragraph E. 2. below or Section V. GENERAL EXCLUSIONS of this Service Contract.

2. We shall not provide coverage for: Buckets, stand-alone freezers, drawers, condenser housing, food spoilage, rollers, racks, and shelves.

F. Water Heater (Gas or Electric):

1. We shall provide coverage of up to a maximum of $1,500 per Service Contract Liability Period. Customer is responsible for any costs in excess of $1,500. Covered components shall be limited to: Burner tubing, internal tank, draft hood, gas shut-off valve (manual), main burner, pilot assembly, pilot tubing, relief valve (drain piping not included), spill switch, thermocouple, thermostat control (ECO, magnetic hood), vent connector (galvanized only), water shut-off valve, electric elements, electric thermostats or electronic ignition system unless specifically excluded under Paragraph F. 2. below or Section V.GENERAL EXCLUSIONS of this Service Contract.

2. We shall not provide coverage for: Energy conservation units or solar water heating systems, external holding or storage tanks, and instant hot water heaters.

V. GENERAL EXCLUSIONS We shall not provide coverage for:

A. Insulation, routine maintenance, filters, touch pad assemblies (unless they affect the primary function of the unit), remote transmitters, soap dispensers, remote controls, interior lining, removable attachments and hoses, doors, door glass, hinges, springs, handles, knobs, dials, seals and/or gaskets, condenser pads, timers and clocks (unless they affect the primary function of the unit), flues, vents, power vents, flue vents, jacks, stands, exhaust fans, ductwork, transitions, plenums, light bulbs, light fixtures, sludge pumps, concrete encased equipment or systems.