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WHAT IS NOT COVERED

  • 1.

    Any part not specifically listed in the Plan Coverage section.

  • 2.

    5 YEAR/100K POWER TRAIN: COVERAGE IS AFFORDED AFTER 90 DAYS AND 1000 MILES (UNLESS APPLICABLE SURCHARGE APPLIED) FROM THE EFFECTIVE DATE AND MILEAGE OF THIS CONTRACT. FAILURE(S) THAT OCCUR WITHIN THIS PERIOD ARE CONSIDERED A PRE-EXISTING CONDITION AND ARE NOT COVERED. FOR ALL OTHER PLAN COVERAGES, COVERAGE IS AFFORDED ONLY AFTER 30 DAYS AND 1000 MILES FROM THE EFFECTIVE DATE AND MILEAGE OF THIS AGREEMENT. FAILURE(S) THAT OCCUR WITHIN THIS PERIOD WILL BE CONSIDERED A PRE-EXISTING CONDITION AND ARE NOT COVERED.

  • 3.

    Repair work performed without the authorization of the Obligor. Shop fees and handling fees.

  • 4.

    Any loss when the Vehicle’s odometer has been tampered with, altered, allowed to remain nonfunctional, disconnected or broken.

  • 5.

    Incidental or consequential damages or loss caused by a breakdown of components (or otherwise) including property damage, personal injury, inconvenience, and loss of Vehicle use. Punitive damages are also expressly excluded. Covered components when damage is caused by non-covered components. Damage caused by torn boots.

  • 6.

    Repairs covered by the manufacturer warranty on the covered Vehicle, manufacturer recalls, and factory service bulletins. Any warranty on parts and/or labor from any party other than the Obligor supersedes this Contract. If the Vehicle or specific components on the Vehicle have a warranty, You are responsible for seeking coverage from the entity that provides the warranty. You are then subject to the terms and conditions of that warranty. The Obligor has no liability for that repair or any costs or inconvenience associated with that repair.

  • 7.

    Repairs required because of collision, abuse, operation without proper lubrication or coolant, road conditions, misuse, negligence, exposure, alterations, lift-kits and oversized tires (unless option is applied), racing, accidents, fires, floods, riots, acts of vandalism, theft, or terrorism. Any other losses normally covered by causality insurance.

  • 8.

    Repairs required due to lack of proper and responsible maintenance, abuse through improper towing, and abuse through continued operation of an impaired Vehicle that shows signs of a clear mechanical problem. Any repair required due to normal wear and tear (unless option is applied).

  • 9.

    Repairs required due to overheating, regardless of the cause of overheating, or repairs required due to loss of fluids, regardless of the cause of the loss of fluids. These include, but are not limited to, loss of engine oil, coolant, transmission fluid, freon, power steering fluid, or axle grease.

  • 10.

    Covered components that are still performing the function for which they were designed.

  • 11.

    Any repair to valves or worn piston rings where the malfunction is low compression and/or oil consumption.

  • 12.

    No coverage will be granted under this contract for any damage caused by failure to maintain the Vehicle to the standards of the manufacturer. This includes, but is not limited to: failures resulting from aftermarket modifications. Examples include, but are not limited to: suspension lift kits (unless applicable option is applied), superchargers, nitrous oxide kits, GPS systems, lighting accessories, and stereo systems.

  • 13.

    Manual transmission claims will not be covered if, at the time of failure, the clutch components are worn to the extent that replacement is required.

  • 14.

    Pre-existing conditions are not covered by this service contract.

DUTY OF PURCHASER WHEN MECHANICAL BREAKDOWN OCCURS When a Mechanical Breakdown occurs, the purchaser shall protect the Vehicle, whether or not such Mechanical Breakdown is covered by this service contract. Any further damage to covered or non-covered parts of the Vehicle due to purchaser’s failure to protect shall not be recoverable under this service contract. Continued operation of the Vehicle after any mechanical failure shall in all cases constitute a failure to protect the Vehicle. Failure to protect the Vehicle is not limited to continued operation after mechanical failure. Other acts of neglect by the purchaser may constitute a failure to protect. Regular maintenance service as recommended by the Vehicle manufacturer is a condition of this service contract.

MECHANICAL BREAKDOWN COVERAGE Repairs will be made with parts of the like kind and quality as determined by the Obligor. It is expressly understood that replacement parts and/or components NEED NOT BE NEW, but may be “used’ or “rebuilt” as determined by the Obligor and will be guaranteed serviceable. A breakdown is described as the failure of a part because of the clear defect therein rendering the covered part incapable of performing the function for which it was designed. REDUCED OPERATING PERFORMANCE DUE TO WEAR AND TEAR IS NOT A MECHANICAL BREAKDOWN AND IS NOT COVERED BY THIS SERVICE CONTRACT (unless optional surcharge is applied).

CANCELLATION The purchaser may cancel this Agreement by first notifying the seller where the Agreement was purchased and by receiving from them an odometer statement indicating the odometer reading at the date of the request for cancellation. The odometer statement along with a short letter stating the reason for cancellation and current date must then be faxed or mailed to Alpha Warranty Services. Cancellation requests with incomplete information will not be processed.

If the purchaser cancels this Agreement within the first thirty (30) days, Alpha Warranty Services will refund the entire wholesale purchase price, less any claims paid. If this Agreement is canceled after the first thirty (30) days, Alpha Warranty Services will refund the unearned wholesale purchase price to the purchaser calculated on a pro rata basis. The refund will be equal to the lesser amount produced using either the number of days the Agreement was in force or the number of miles the Vehicle was driven prior to cancellation, less any claims paid and an administration fee of fifty dollars ($50). The seller is responsible for their portion of the service contract refund.

If the Vehicle or this Agreement have been financed, the Lienholder shown on the service contract may cancel this Agreement for nonpayment or if the Vehicle is declared a total loss or is repossessed. This right of cancellation does not confer ownership of this Agreement to the Lienholder or otherwise entitle the Lienholder to performance under this Agreement. In the event that the cost of this Agreement is part of a retail sales contract, then the lender of the said sales contract shall be sole payee of any refund check. In the case of a total loss or repossession, the Lienholder shall be the sole payee of any refund check.

Alpha Warranty Services may cancel this Agreement based on one or more of the following reasons: (A) nonpayment of the Agreement purchase price by the purchaser or seller; (B) a material misrepresentation made by the purchaser or seller; or (C) a substantial breach of duties by the purchaser or the seller relating to the Vehicle or its use. If this Agreement is cancelled by Alpha Warranty Services, the refund will be the unearned wholesale purchase price to the purchaser calculated on a pro rata basis. The refund will be equal to the lesser amount produced using either the number of days the Agreement was in force or the number of miles the Vehicle was driven prior to cancellation, less a cancellation fee of fifty dollars ($50). The seller is responsible for their portion of the service contract refund. Your state may differ; see State Endorsements.

MAINTENANCE To obtain the benefits provided under this service contract, it is the responsibility of the Contract Holder to have the engine oil and engine oil filter changed by a licensed service/repair facility according to manufacturer’s specifications as outlined in the Vehicle owner’s manual. The manufacturer’s recommended service schedule will be considered the maximum allowable interval between maintenance services required by this Contract. If the manufacturer of Your vehicle does not have a written maintenance schedule for oil changes then the maximum allowable interval between oil changes must not exceed six (6) months or six thousand (6,000) miles. In addition, You must maintain all other covered components (transmission flushes, lubrication, software updates and reprogramming, timing belt/chain, filters, etc.) (severe maintenance schedule may need to be followed if conditions apply) as outlined in the Vehicle owner’s manual. Proper documentation and verifiable receipts for all maintenance and repairs will be required in the event of a claim, (handwritten receipts will not be accepted). If Your repair facility is not capable of providing computer-generated receipts, it is Your responsibility to contact the Obligor with the following information on the day the service is completed: repair facility performing the service, services performed, date of service, and mileage at service. Handwritten receipts will not be accepted if the Obligor is not contacted at the time of the service.

Initial

_____________________________________________________ Seller’s signature

_______________________________________________________ Purchaser’s acceptance of the above terms

Alpha Warranty Services, Inc

Page 3 of 7

AWS-DMTSCH-111010

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