WHAT IS NOT COVERED:

Administrator: LOTSolutions, Inc.

10751 Deerwood Park Blvd., Suite 200 | Jacksonville, FL 32256

(888) 202-5518 | www.4repairs.net

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4WC-BADCOCK ALLPROD (07/2021)

SERVICE AGREEMENT

4WC-BADCOCK ALLPROD (07/2021)

This Agreement is not a Contract of Insurance or a Warranty subject to the Federal Magnuson-Moss Act

PLEASE READ THIS AGREEMENT CAREFULLY, as it describes the protection You will receive in return for Your payment of the purchase price of this Agreement and it contains a

Dispute Resolution/Arbitration Agreement and Class Action Waiver. You must keep this Agreement, Your sales invoice and receipt from the Selling Retailer for the product(s)

You purchased, as You may be required to produce them to obtain service and coverage under this Agreement. You must maintain Your Covered Product, according to

recommendations or requirements, if any, of the manufacturer’s warranty or the Selling Retailer. Refer to Your sales invoice or receipt to determine the term of this Agreement. You

acknowledge Your understanding of the Limited Applicability of the Federal Magnuson-Moss Warranty Act as set out below in this Agreement.

NOTICES: (1) THE PURCHASE OF THIS AGREEMENT IS NOT REQUIRED TO EITHER PURCHASE YOUR COVERED PRODUCT OR TO OBTAIN FINANCING; (2) THIS

AGREEMENT DOES NOT REPLACE NOR EXTEND THE MANUFACTURER’S WARRANTY OR SELLING RETAILER’S LIMITED PRODUCT WARRANTY, IF ANY, ON YOUR

COVERED PRODUCT.

I. DEFINITIONS:

(1) “Accidental Damage From Handling (ADH)”: A single, unexpected, sudden, and unintentional event and does not include accumulated damage from continual or multiple

events.

(2) “Administrator”: LOTSolutions, Inc., 10751 Deerwood Park Blvd., Suite 200, Jacksonville, FL 32256 (888-202-5518).

(3) “Covered Product”: Only the consumer product(s) with respect to which You purchased this Agreement, as listed on Your sales invoice or receipt from the Selling Retailer.

(4) “Mechanical/Electrical Breakdown”: An operational, mechanical, or electrical failure due to a defect in materials or workmanship, normal wear and tear, or caused by a direct

result of a power surge.

(5) “Selling Retailer”: The entity selling the Covered Product and this Agreement as defined on Your sales invoice or receipt.

(6) “Term”: The Term of this Agreement commences upon the date of delivery of the Covered Product and continues for a period indicated on Your sales invoice or receipt from the

Selling Retailer or when the Limit of Coverage Liability is reached or the Covered Product is replaced, whichever occurs first. In the event Your Covered Product is being

serviced by an authorized service center when this Agreement expires, the term of this Agreement will be extended, for this loss, until covered repair has been completed.

(7) “We”, “Us” “Our” “Obligor”, “Provider” and “Service Provider”: The company obligated under this Agreement, 4Warranty Corporation, 10751 Deerwood Park Blvd., Suite

200, Jacksonville, FL 32256 (888-202-5518), in all states except in Florida where it is Lyndon Southern Insurance Company, 10751 Deerwood Park Blvd., Suite 200,

Jacksonville, FL 32256 (800) 888-2738, Florida License No. 03698.

(8) “You”, “Your”, “Service Agreement Holder” and “Agreement Holder”: The purchaser of the Covered Product(s).

II. COVERAGES: Coverage for some benefits under this Agreement begin on the date of delivery of the Covered Product; all other coverage begins upon the expiration of the shortest

portion of the manufacturer’s warranty or the Selling Retailer’s limited product warranty. This Agreement is inclusive of the manufacturer’s warranty or the Selling Retailer’s limited

product warranty, it does not replace the manufacturer’s warranty or the Selling Retailer’s limited product warranty but provides certain additional benefits during the term of the

manufacturer’s warranty or the Selling Retailer’s limited product warranty. After the manufacturer’s warranty or the Selling Retailer’s limited product warranty expires, the Agreement

continues to provide some of the manufacturer’s or the Selling Retailer’s benefits as well as certain additional benefits listed within this Agreement’s terms and conditions. Refer to

Your sales invoice or receipt for the purchase of this Agreement to determine the term of this Agreement, whether You purchased a Replacement or Repair Plan. This Agreement

does not cover repair or replacement of Your Covered Product for any of the causes or provide coverage for any losses set forth below in section - “EXCLUSIONS – WHAT IS NOT

COVERED”.

WHAT IS COVERED:

A. For Furniture: We will cover only the following defects or damage to Your Covered Product:

Manufacturer Defects - coverage begins upon the expiration of the shortest portion of the manufacturer’s warranty or the Selling Retailer’s limited product

warranty:

(1) Checking, cracking or peeling of the finish on solid wood, wood veneered or wood laminated furniture;

(2) Warping, cracking, breaking or separation of frame and frame components such as braces, legs, panels, trim and base molding, drawers and drawer guides, leaf and

leaf tracks, tension supports, arms, aprons, pedestal and trestle base and legs, spindles and beams (except faux stone, marble and granite);

(3) The breaking or bending of mechanisms, springs and coils; and

(4) Failure of electrical components including clocks, motors and hydraulics.

Stains - coverage begins on the date of delivery of the Covered Product:

(1) Accidental stains, except as noted in “EXCLUSIONS – WHAT IS NOT COVERED”, to area rugs, fabric, vinyl or leather (except nubuck, suede and buffed leather) and

umbrellas as a result of normal spills from food and beverage and human or pet biological stains (except perspiration and hair and body oils); ball point pen ink, nail

polish caused by a single incident.

Accidental Damage - coverage begins on the date of delivery of the Covered Product:

(1) Accidental Punctures or rips to fabric, leather, wicker or vinyl from external causes caused by a single incident;

(2) Accidental Chipping or gouges to wood and other case good surfaces (except faux stone, marble or granite) that penetrate the finish exposing the substrate caused by

a single incident;

(3) Accidental breakage and loss of silvering to mirrors; accidental breakage of glass caused by a single incident; accidental breakage of lamps (excluding bulbs);

(4) Minor burn marks from a single incident caused solely by cigarette, cigar or a tobacco pipe;

(5) Liquid marks or rings to wood, wood veneered, or wood laminate surfaces caused from household food and beverages, caused by a single incident;

(6) Heat marks on solid wood, wood veneered and wood laminate surfaces from normal household items, caused by a single incident. Heat marks means the

discoloration, blistering or bubbling of the wood finish due to heat, and does not include char, scorch or singe marks; and

(7) One-time breakage of umbrella or umbrella mechanism.

We do not guarantee color match on fabric, leather, vinyl or wood finishes.

B. For Adjustable Bed Power Base - coverage begins on the date of delivery of the Covered Product: This Agreement covers only the Adjustable Bed Power Base.

During the term of this Agreement, We will only pay:

(1) The cost of labor to repair or replace the powerbase lifting and lowering mechanism; and

(2) The cost of labor and parts to repair or replace only the electrical components of the powerbase including the lift (drive) motor, massage motor (if applicable), AC/DC

transformer (if applicable), remote control and receiver, junction box, power-down box and accessories (including lights, USB ports and built-in speakers) when

required due to a mechanical or electrical breakdown including those experienced during normal wear and tear.

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C. For Appliances, Electronics and Lawn & Garden Equipment - coverage begins upon the expiration of the shortest portion of the manufacturer’s warranty or the

Selling Retailer’s limited product warranty: In the event of a Mechanical or Electrical Breakdown of the Covered Product(s), this Agreement provides for the labor

and/or parts necessary to repair Your Covered Product, or at Our sole discretion, a replacement for Your original Covered Product. In order to be eligible for coverage

under this Agreement, the Covered Product must:

(1) Be purchased as a new or factory-refurbished, manufactured for used for used in the United States, and come with a valid U.S. manufacturer’s warranty at time of

purchase;

(2) Be solely intended for routine personal/residential use and NOT in a heavy commercial, industrial, rental or educational institution; and

(3) NOT be covered under any insurance, warranty, guarantee and/or service agreement providing the same benefits as outlined herein.

D. For All Other Products - coverage begins on the date of delivery of the Covered Product: This Agreement provides coverage for parts and labor costs to repair or

replace Your Covered Product where the problem is the result of a Mechanical or Electrical Breakdown caused by:

(1) Normal wear and tear; and

(2) Defects in materials or workmanship.

Parts will be replaced at Our option with those of like kind and quality as determined by Us and may be new or remanufactured. If the Covered Product (1) cannot be repaired,

(2) if the cost of the repair exceeds the original purchase price of the Covered Product, or (3) if the parts are no longer available or are discontinued by the manufacturer, Your

affected item will be replaced with a product of similar features as determined by Us, not to exceed the purchase price of the Covered Product, excluding sales tax, delivery and

installation costs. YOU ARE RESPONSIBLE FOR ANY SALES TAX, DELIVERY AND INSTALLATION COSTS ASSOCIATED WITH A REPLACEMENT ITEM.

(1) ACCIDENTAL DAMAGE FROM HANDLING (“ADH”) - coverage begins on the date of delivery of the Covered Product: If You purchased an Agreement that includes

ADH Coverage, Your Covered Product is protected against ADH per the product specific details below based on the Term length selected. ADH only covers operational or

mechanical failure caused by ADH and does not include protection against theft, mysterious disappearance, misplacement, viruses, reckless, abusive, willful or intentional conduct

associated with handling and use of the Covered Product, cosmetic damage and/or other damage that does not affect the unit functionality, damage caused during shipment

between You and Our service providers and any other limitations listed in the “EXCLUSIONS – WHAT IS NOT COVERED” section of this Agreement. Any resultant damage from

the type of treatment referred to in Section – EXCLUSIONS – WHAT IS NOT COVERED is NOT covered by this Agreement. The use of this coverage requires an explanation of

where and when the accident occurred as well as a detailed description of the actual event. Failure to provide this information may result in claim denial. ADH coverage is limited

to one (1) repair or replacement during the Term of this Agreement.

(2) SURGE PROTECTION - coverage begins on the date of delivery of the Covered Product: This Agreement provides coverage for a Mechanical or Electrical Breakdown of

Your Covered Product resulting from a power surge.

(3) FOOD LOSS (for refrigerator/freezer Covered Products ONLY) - coverage begins on the date of delivery of the Covered Product: Coverage under this Agreement includes

reimbursement for food loss of perishable items that require refrigeration or freezing resulting from a covered claim for Your Covered Product. Benefits are limited to a maximum

of $200 per covered service repair.

(4) LAUNDRY/CLEANING SERVICES (for clothes washer/clothes dryer Covered Products ONLY) - coverage begins on the date of delivery of the Covered Product:

Coverage includes reimbursement of laundry expenses in the event Your Covered Product is determined by Us to be rendered inoperable for more than seven (7) consecutive

days of Our authorized servicer’s initial on-site visit. This benefit is limited to a maximum reimbursement amount of twenty-five dollars ($25.00) per covered claim. Proof of

payment for the laundry expenses is required.

(5) LIMIT OF COVERAGE LIABILITY: Our Limit of Coverage Liability for Your Covered Product under this Agreement is the cost of authorized repairs, or replacement as

determined by Us, with a product of similar features, provided however, in no event will Our total liability for repairs or replacement exceed Your purchase price for the Covered

Product, excluding sales tax, diagnostic fees, delivery and installation costs. Upon replacement, there is no longer any obligation for the replaced product under this Agreement.

SERVICE COSTS, TRIP CHARGES, BREAKDOWN CHARGES, INSPECTION FEES, DIAGNOSTIC FEES OR ESTIMATE CHARGES FOR REPAIRS NOT COVERED UNDER

THIS AGREEMENT ARE YOUR RESPONSIBILITY.

(6) NO LEMON POLICY: During the term of this Agreement, and subject to Our Limit of Coverage Liability, after three (3) service repairs have been completed on the same

component of an individual Covered Product and that Covered Product component requires a fourth repair, as determined by Us, We will replace it with a product of comparable

performance or pay You the remaining Limit of Coverage Liability. If We replace Your Covered Product or pay You the remaining Limit of Coverage Liability, there is no longer

any obligation for the replaced product under this Agreement.

(7) HOW TO GET SERVICE: You must contact the Administrator for the appropriate authorized service center.

• Call the toll-free number at (888) 202-5518 between the hours of 8:00 AM and 5:00 PM eastern standard time or go online to www.4repairs.net. All repairs must be

authorized by the Administrator prior to performance of work. Claims on unauthorized repairs may be denied. You may be asked for a credit card number prior to service

being performed. Many oversights, which are not covered under this Agreement, can be due to simple circumstances such as the Covered Product not being switched on,

being unplugged, a fuse blown, or circuit breaker tripped at the junction box. For a Covered Product that uses batteries as the prime power supply, check that the batteries

do not need replacing or recharging. If You refuse service on a covered item after We have dispatched the repair servicer to Your location, You will be billed for that

servicer’s applicable trip charge.

• EMERGENCY SERVICE: Emergency Service is available for the following items ONLY: REFRIGERATORS; FREEZERS; HUMIDIFIERS; DEHUMIDIFIERS; AIR

CONDITIONERS; HEATERS/FURNACES; MICROWAVE OVENS (ONLY IF A CONVENTIONAL OVEN IS NOT AVAILABLE); CONVENTIONAL OVEN (ONLY IF A

MICROWAVE OVEN IS NOT AVAILABLE). If after 5:00 PM Eastern Time, You require service, You may contact any manufacturer authorized service repair facility

listed online or in Your local phone book. Mail Administrator Your original repair bill and a copy of this Agreement for reimbursement. ALL COVERAGES AND

EXCLUSIONS IN THIS AGREEMENT WILL APPLY.

• We would like to contact You regarding the status and progress of Your claim via an email or text message. During Your initial claim contact the Administrator, You will be

asked to confirm Your acceptance of receiving email or text messages. You can opt-out of receiving an email or text message at any time by contacting the Administrator

at badcock@fortegra.com or (888-202-5518) or “Text STOP to end.”

(8) SERVICE DELIVERABLES: You will receive service on Your Covered Product as described below:

• Carry-In: Unless otherwise provided in this Agreement, Covered Products must be delivered and picked up by You at Our authorized service center during normal business

hours.

• In-Home/On-Site: Service will be performed in Your home or On-Site. The authorized service center may opt to remove the Covered Product to perform service in-shop.

Your Covered Product will be returned upon completion. Additional time and mileage charges for in-home repairs outside of twenty-five (25) contiguous land miles or the

normal service radius of the authorized service center are not covered by this Agreement and are Your responsibility.

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• Depot: Administrator will provide You with a prepaid shipping label for You to ship Your failed product to Our repair facility. Your Covered Product must be properly

protected with bubble wrap or other protective materials. We are not responsible for and have no liability for product damaged in shipping. Your repaired product will be

mailed back to You at no charge.

• Reimbursement: If We are reimbursing You for rental expense or accidental damage, You are responsible for paying the rental or repair service facility directly for rentals,

any repairs, replacement parts, diagnosis fees, trip charges, sales tax and installation. Once Your Covered Product is repaired You may file a claim with Us for

reimbursement. We are not responsible for delay in service or loss of use of Your Covered Product, quality of service or workmanship or defective replacement parts

provided by the servicer.

How to file a reimbursement claim: You must mail or fax 904-215-8017 Administrator a copy of the completed rental or repair invoice. The service facility or rental invoice

must include the make, model and serial number of Your Covered Product, the reason for repair and cause of loss of Your Covered Product, and Your name, address, and

phone number. We will reimburse You as indicated above in this Agreement.

III. EXCLUSIONS - WHAT IS NOT COVERED: (A) Products not originally covered by a manufacturer’s warranty; (B) Product repairs that should be covered by the

manufacturer’s warranty or Selling Retailer’s limited product warranty or are a result of a recall, regardless of the manufacturer’s ability to pay for such repairs; (C)

Cleaning; Periodic checkups; preventive maintenance; (D) Any and all pre-existing conditions that occur prior to the effective date of this Agreement; (E) Parts or

repairs due to normal wear and tear unless tied to a Mechanical or Electrical Breakdown, and items normally designed to be periodically replaced by You during the

life of the Covered Product, including but not limited to batteries, light bulbs, etc.; (F) Damage from abuse, misuse, mishandling, introduction of foreign objects into

the Covered Product, unauthorized modifications or alterations to a Covered Product; failure to follow the manufacturer’s instructions; external causes of any kind,

including third party actions; fire; theft; insects; animals; exposure to weather; windstorm; sand; dirt; hail; earthquake; flood; water; acts of God or consequential loss

of any nature; (G) Loss or damage caused by war; invasion; act of foreign enemy; hostilities; civil war; rebellion; riot; strike; labor disturbance; lockout; or civil

commotion; (H) Incidental, consequential or secondary damages or delay in rendering service under this Agreement; loss of use during the period that the Covered

Product is at an authorized service center or awaiting parts; (I) Any product used in a commercial setting or rental basis; (J) Non-functional or aesthetic parts including

but not limited to frames, cabinets, doors, hinges, plastic parts, knobs, rollers, baskets; scratches, peeling & dents; (K) Unauthorized repairs and/or parts; (L) Cost of

installation, setup, diagnostic charges, removal or reinstallation of the Covered Product, except as provided herein; (M) Accessories used in conjunction with a

Covered Product including remote controls (except for Adjustable Bed Power Base Plans, remote controls are covered); (N) Any other loss other than a covered

Mechanical or Electrical Breakdown; (O) Service where no problem can be found; noises; squeaks; Mechanical or Electrical Breakdowns which are not reported during

the term of this Agreement;

• Specific to Furniture – Manufacturer Defects: In addition to any applicable exclusions listed above, We do not cover damage caused by or due to (1)

Natural grains and/or markings on wood and/or leather, including but not limited to scars, insect bites, brand marks, embossing, wrinkles; stress tears;

split leathers used in seat cushions, back cushions or top inside arm areas; suede, buffed or nubuck leathers; cracking, peeling or scaling of leather,

wicker and vinyl; (2) Except as noted in “WHAT IS COVERED”, Fabric; tears and wear-through, punctures, scratches, dents, burns, dirt, or color-fading or

discoloration; zippers; (3) Shrinkage from cleaning; (4) Rust or corrosion.

• Specific to Furniture – Stains & Accidental Damage: In addition to any applicable exclusions listed above, We do not cover damage caused by or due to (1)

Stains or damage resulting from dye; bleach, paint, acid or corrosive products; nail polish remover; crayon, permanent marker, chewing gum;

accumulation and buildup of stains and soil over time, including darkened areas where the body comes into contact with the upholstery; perspiration and

body or hair oils; fading, soiling or damage caused by pets (other than bodily fluids); stain or damage from use of cleaning products not approved by the

manufacturer or Us; normal soiling; mold and mildew; stains of unknown origin; “X” coded and non-colorfast fabrics and leather; stains or damage to the

material caused by the owner’s failure to use reasonable caution and care to protect the Covered Product; and (2) Stains or damage occurring prior to and

during delivery or setup of Your Covered Product, or when the Covered Product is in storage, or being moved into or out of storage, or being moved within

or between residences; dye transfer; stains caused by medical incontinence; stains or damage caused by independent contractors or maintenance

personnel; stains from leaks in appliances, sky lights or roof.

• Specific to Furniture Products Designed for Outdoor Use: In addition to any applicable exclusions listed above, We do not cover damage caused by or due

to (1) Damage from power washing or exposure to salt or salt water; (2) pollen, tree sap and lotions; and (3) wicker fraying not caused by a single incident.

• Specific to Adjustable Bed Power Base: In addition to any applicable exclusions listed above, We do not cover damage caused by or due to (1) Mattresses,

box springs, bed frame and frame components, bed rails, headboard and footboard or any other component not specifically listed as covered in “WHAT IS

COVERED”; (2) Damage or breakdown caused by improper assembly or obstructions; service calls for educational purposes; programming remotes;

failure of remote or powerbase to operate properly due to interference with radio or other signals; (3) retainer bars; (4) any claim related to ADH, unless the

ADH optional coverage upgrade has been purchased as confirmed on Your sales invoice or receipt.

• Specific to Appliances and Electronics: In addition to any applicable exclusions listed above, We do not cover damage caused by or due to (1) non-

operating or external parts, e.g. protective glass; housings; insulation; conduit; frames; cabinets; knobs; dials; drawers; handles; shelves; doors; hinges;

light bulbs; projection bulbs; filters; hoses; (2) any installed accessory item, e.g., gas or electronic connectors; (3) any antennae or antennae system; any

expansion of the channel or frequency range capabilities of the Covered Product; circuit adjustments required to receive any particular station; service or

adjustments due to changes in external power or water supply; water and power connectors and connections; reception or normal signal; (4) Speakers,

except surround-sound home theater; remote controls; phonograph cartridges and stylus; headphones; (5) burned-in image in CRT, PLASMA, LCD or any

other type of display; (6) defrost drain tubes; (7) any claim related to ADH, unless the ADH optional coverage upgrade has been purchased as confirmed on

Your sales invoice or receipt.

• Specific to Computers and Peripheral Equipment: In addition to any applicable exclusions listed above, We do not cover damage caused by or due to (1)

overheating caused by accumulation of dust, vermin or fan blockage; misuse and abuse; (2) any storage media damaged by malfunctioning parts; improper

installation of computer components or peripherals; repair or replacement of upgraded computer components when repair or replacement is required due

to incompatibility of parts or incorrect installation; damage caused from refilled ink cartridges; (3) broken or cracked LCD/display screens in notebooks or

other portable monitors unless the ADH optional coverage upgrade has been purchased as confirmed on Your sales invoice or receipt; burned-in image in

CRT, LCD or any other type of display; application programs; operating software; other software; loss of data or restoration of programs; (4) corruption of

any program; data or setup information resident on any hard drives and internal or external removable storage devices, as a result of the malfunctioning or

damage of an operating part, or as a result of any repairs or replacement under this Agreement; (5) toner and ink cartridges; cables; (6) dropping; food and

beverage spills for laptops/tablets unless the ADH optional coverage upgrade has been purchased as confirmed on Your sales invoice or receipt.

• Specific to Lawn & Garden Equipment and Power Tools: In addition to any applicable exclusions listed above We do not cover (1) Normal wear and tear

unless tied to a Mechanical or Electrical Breakdown; tune-ups; damage caused by neglect; improper operation; installation; maintenance; use of an

accessory or part not manufactured or sold by an authorized dealer of the manufacturer; operation with fuels, oils or lubricants which are not suitable for

use with the Covered Product; alteration or removal of parts; water entering engine cylinder(s) through exhaust system or carburetor(s); spark plugs; brake

pads or lining; hoses; hose clamps; belts; batteries; shock absorbers; tires; cutting blades; gauge wheels; wheel balancing; alignments; cleaning of fuel

and coolant systems; removal of carbon, varnish, sludge, or contaminants; necessary fuel and ignition system calibrations and adjustments; (2) We do not

cover repair caused by normal product vibration; routine maintenance; fuses; filters; consumables; bulbs; exterior power cords; cosmetic adjustment or

replacement; shell separating or cracking; paint changes; corrosion; rust; (3) We do not cover any repair for grinding of valves to increase compression; oil

consumption; stuck rings; shipping or freight; burned valves; tuliped valves; adhesives; shop supplies; road service calls; environmental charges;

miscellaneous charges; internal or external corrosion, electrolysis, salt or any other environmental condition; inadequate or improper storage/lay up; loss

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or damage to optional equipment; (4) any claim related to ADH, unless the ADH optional coverage upgrade has been purchased as confirmed on Your sales

invoice or receipt.

IV. CONDITIONS:

RENEWAL: This Agreement is not renewable.

TRANSFERABILITY: This Agreement is transferable at no charge by the original purchaser for the balance of the original Agreement term. The Covered Product may be

registered by mailing information to the Administrator, including the Agreement number, date of new ownership, new owner’s name, complete address, and telephone number.

DEDUCTIBLE: This Agreement has a $0 deductible.

TERRITORIES: The Agreement territory is limited to the United States of America, including the District of Columbia, only. It does not include Mexico, Canada or U.S. Territories

including but not limited to Guam, Puerto Rico, or U.S. Virgin Islands.

SUBROGATION: If We pay or render service for a loss, We may require You to assign Us Your rights of recovery against others. We will not pay or render service for a loss if

You impair these rights to recover. Your rights to recover from others may not be waived. You will be made whole, subject to the terms of this Agreement before We retain any

amount We may recover.

CANCELLATION: You may cancel this Agreement for any reason at any time. If You cancel Your Agreement within thirty (30) days of receipt of Your Agreement You must

return to the Selling Retailer for a full refund. If You cancel after thirty (30) days of receipt of Your Agreement, You must return to the Selling Retailer for a pro-rata refund. You

will receive a pro-rata refund based on the time expired less a twenty-five-dollar ($25) cancellation fee, or ten percent (10%) of the Agreement Purchase Price (whichever is less),

less the cost of claims paid. Should the Selling Retailer not be available You should contact the Administrator. We may not cancel this Agreement except for fraud, material

misrepresentation, or non-payment by You, or if required to do so by a regulatory authority. Notice of such cancellation will be in writing and given at least thirty (30) days prior to

cancellation. If We cancel, the return premium is based upon one hundred percent (100%) of the unearned pro-rata premium.

LIMITED APPLICABILITY OF THE FEDERAL MAGNUSON MOSS WARRANTY ACT: You agree and acknowledge that You have paid an additional fee for this Agreement that

is separate and apart from the purchase price You paid for the Covered Product(s). Because of that separately stated consideration, You agree and acknowledge that this

Agreement is not part of the basis of the bargain for Your purchase of the Covered Product(s). You further agree and acknowledge that We, and the Administrator under this

Agreement, are not the supplier of the Covered Product(s). Consequently, this Agreement is not a “written warranty” under the federal Magnuson Moss Warranty Act. As a

result, this Agreement is not subject to the provisions of the Magnuson Moss Warranty Act that apply only to a “written warranty”.

LIMITATION OF LIABILITY: THIS AGREEMENT SETS OUT THE FULL EXTENT OF OUR RESPONSIBILITIES. NEITHER THE OBLIGOR NOR THE ADMINISTRATOR

SHALL BE LIABLE FOR SPECIAL, INDIRECT, INCIDENTAL, PUNITIVE OR CONSEQUENTIAL DAMAGES (INCLUDING, WITHOUT LIMITATION, DAMAGES FOR LOSS OF

BUSINESS PROFITS, BUSINESS INTERRUPTION, EXPENSES ARISING OUT OF THIRD PARTY CLAIMS, LOSS OF USE OF THE COVERED PRODUCT, INCONVENIENCE,

OR ANY OTHER LOSS), WHETHER OR NOT CAUSED BY OR RESULTING FROM BREACH OF CONTRACT, NEGLIGENCE, OR OTHER WRONGFUL ACT OR OMISSION,

EVEN IF IT HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. NEITHER THE OBLIGOR NOR THE ADMINISTRATOR AUTHORIZE ANY PERSON, ENTITY

OR SELLING RETAILER TO CREATE FOR THEM ANY OTHER OBLIGATION OR LIABILITY IN CONNECTION WITH THIS AGREEMENT.

PRIVACY POLICY: It is Our policy to respect the privacy of Our customers. For information on Our privacy practices, please review Our privacy policy at

www.fortegra.com.

DISPUTE RESOLUTION/ARBITRATION AGREEMENT AND CLASS ACTION WAIVER: PLEASE READ THIS DISPUTE RESOLUTION/ARBITRATION AGREEMENT AND

CLASS ACTION WAIVER, INCLUDING THE OPT-OUT PROVISION, CAREFULLY TO UNDERSTAND YOUR RIGHTS. IT REQUIRES THAT CLAIMS (AS DEFINED BELOW)

BE RESOLVED SOLELY THROUGH BINDING ARBITRATION ON AN INDIVIDUAL BASIS, RATHER THAN BY A JURY OR IN A CLASS ACTION.

Arbitration is a method of resolving any Claim without filing a lawsuit. In this Arbitration Agreement and Class Action Waiver (collectively including all of this section

of this Agreement), You, We, and the Administrator (the “Parties”) are agreeing to submit any and all Claims to binding arbitration on an individual basis for resolution.

This Arbitration Agreement and Class Action Waiver sets forth the terms and conditions of our agreement to binding arbitration. The Parties agree that any and all

claims, disputes and controversies arising under or related in any way to this Agreement, including but not limited to claims related to the underlying transaction

giving rise to this Agreement, claims related to the sale or fulfillment of this Agreement, and claims against any third-party (including the Selling Retailer and/or any of

its owners, shareholders, members, affiliates, subsidiaries, divisions, directors, officers, employees, representatives, successors, and assigns) arising under or related

in any way to this Agreement or the underlying transaction or the sale or fulfillment of this Agreement (collectively, “Claims”), shall be resolved by final and binding

arbitration. “Claims” shall be given the broadest meaning possible and includes, without limitation, Claims arising under contract, tort, statute, regulation, rule,

ordinance or other rule of law or equity, and Claims against any of Our or the Administrator’s owners, shareholders, members, affiliates, subsidiaries, divisions,

directors, officers, employees, representatives, successors, or assigns. “Claims” does not include a claim for public injunctive relief brought under any California

statute enacted for a public reason, provided that You are a California resident or purchased Your Service Contract in California. In arbitration, Claims are resolved by

an arbitrator and not by a judge or jury. THE PARTIES, INCLUDING YOU, WAIVE ANY RIGHT TO HAVE CLAIMS DECIDED BY A JUDGE OR JURY. In addition, except

as expressly stated in the Class Action Waiver or otherwise expressly stated herein, the arbitrator shall have exclusive authority to decide all issues related to the

enforcement, applicability, scope, validity, and interpretation of this Arbitration Agreement, including but not limited to any unconscionability challenge or any other

challenge that the Arbitration Agreement is void, voidable or otherwise invalid. Notwithstanding this agreement to arbitrate, each of the Parties retains the right to seek

remedies in small claims court to resolve any Claim, on an individual basis, within the jurisdiction of small claims court. You acknowledge Your understanding that all

Parties hereunder are waiving their rights to go to court, except for small claims court, to resolve any Claims arising under or related in any way to this Agreement.

The Parties agree and acknowledge that the transaction evidenced by this Agreement affects interstate commerce. The Parties further agree that all issues relating to

this Arbitration Agreement and Class Action Waiver, including its enforcement, scope, validity, interpretation, and implementation, will be determined pursuant to

federal substantive law and the substantive and procedural provisions of the Federal Arbitration Act (“Act”), 9 U.S.C. §§ 1-16. If federal substantive law holds that

state law should apply to any issue relating to this Arbitration Agreement and Class Action Waiver, then the law of the state where You purchased the Agreement shall

apply, without regards to conflicts of law.

CLASS ACTION WAIVER. All Claims must be brought solely in an individual capacity, and not as a plaintiff or class member in any purported class action, collective

action, representative action, mass action, private attorney general action or action on behalf of the general public, or similar proceeding (any such action is referred

to herein as a “Class Action”). NO CLAIM WILL BE ARBITRATED ON A CLASS ACTION BASIS. The Parties, including You, expressly waive any right or ability to

bring, assert, maintain, or participate as a class member in any Class Action in court, arbitration, or any other forum, and the right for anyone to do so on Your behalf.

The arbitrator may not consolidate more than one person or entity’s claims, and may not otherwise preside over any Class Action. The arbitrator shall not have the

authority to combine or aggregate multiple persons’ or entities’ Claims or discovery, to conduct a Class Action or to make an award to any person or entity not a party

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4WC-BADCOCK ALLPROD (07/2021)

to the arbitration. Notwithstanding anything to the contrary, the Parties agree that the enforcement, applicability, scope, validity, and/or interpretation of this Class

Action Waiver shall be decided by a court of competent jurisdiction and not by an arbitrator. If this Class Action Waiver is ruled unenforceable or is interpreted to not

prevent a Class Action, then the Arbitration Agreement shall be null and void, and any Claims shall proceed in a court of law and not in arbitration. The Parties agree

that if an arbitrator renders a decision regarding the enforcement, applicability, scope, validity, and/or interpretation of this Class Action Waiver, or determines that a

Class Action may proceed in arbitration, then: (1) the arbitrator has exceeded his powers, pursuant to §10(a)(4) of the FAA, by taking such action; (2) either party may

seek immediate review of that decision by a court of competent jurisdiction; and (3) a court of competent jurisdiction shall apply a “de novo” standard of review of that

decision if such standard of review is allowed by the common law or statutes of that state. The Parties, including You, agree that if for any reason a Claim proceeds to

Court, rather than arbitration, (1) the Claim will proceed solely on an individual, non-class, non-representative basis, and (2) no Party may be a class representative or

class member or otherwise participate in any Class Action.

The arbitration shall be administered by the American Arbitration Association (“AAA”). The arbitration shall be conducted pursuant to the AAA Consumer Arbitration

Rules (the “Code”). Information on AAA and a copy of the Code may be found at the following number and URL: American Arbitration Association, (800) 778-7879,

www.adr.org. The arbitration will be governed by federal substantive law and the substantive and procedural provisions of the Federal Arbitration Act (“Act”), 9 U.S.C.

§§ 1-16. If federal substantive law holds that state law should apply to any issue relating to the arbitration, then the law of the state where You purchased the

Agreement shall apply, without regards to conflicts of law. The arbitration will occur before a single, neutral arbitrator selected in accordance with the Code in effect at

the time the arbitration is commenced. If Your total damage claims (not including attorney’s fees) do not exceed $25,000, then all Claims shall be resolved by the

Code’s Procedures for the Resolution of Disputes through Document Submission, except that a Party may ask for a hearing or the arbitrator may decide that a hearing

is necessary. If a hearing is held, You have a right to attend the arbitration hearing in person, and You may choose to have any arbitration hearing held in the county

in which You live, the closest AAA location to Your residence, or via telephone. In the event that the specified arbitration forum is unavailable, the Parties may agree

on a substitute arbitration forum. If the Parties cannot agree, a court of competent jurisdiction may appoint a substitute arbitration forum. For information about how

to initiate arbitration with the AAA, the Parties may refer to the AAA Code and forms at www.adr.org or call (800) 778–7879. If You initiate arbitration with AAA, You

must pay the AAA filing fee in an amount no greater than the fee You would have to pay if You filed a complaint in federal court. We will pay any remaining Costs of

arbitration required by the Code (“Arbitration Costs”); however, if the arbitrator determines that any of your claims are frivolous, you shall bear all of the Arbitration

Costs. If We initiate arbitration against You, We will pay the AAA filing fee and the Arbitration Costs. Each party will pay his/her/its own attorney’s fees, as well as

costs relating to proof and witnesses, regardless of who prevails, unless applicable law and/or the Code gives a party the right to recover any of those fees from the

other party. An arbitration award may not be set aside except upon the limited circumstances set forth in the Federal Arbitration Act. An award in arbitration will be

enforceable under the Federal Arbitration Act by any court having jurisdiction. The time for commencing an arbitration asserting any Claim shall be determined by

reference to the applicable statute(s) of limitations, including the applicable rules governing the commencement of the limitations period, and a Claim in arbitration is

barred to the same extent it would be barred if it were asserted in court of law or equity rather than in arbitration.

If any portion of this Arbitration Agreement is deemed invalid or unenforceable, all the remaining portions of this Arbitration Agreement shall nevertheless remain valid

and enforceable, provided, however, that if any portion of the Class Action Waiver is deemed invalid or unenforceable, then this Arbitration Agreement shall be

invalidated and unenforceable in its entirety. In the event of a conflict or inconsistency between this Arbitration Agreement and Class Action Waiver and the other

provisions of this Agreement or any other agreement, this Arbitration Agreement and Class Action Waiver governs.

OPT-OUT PROVISION. YOU SHALL HAVE THE RIGHT TO OPT OUT OF THIS ARBITRATION AGREEMENT AND CLASS ACTION WAIVER BY PROVIDING WRITTEN

NOTICE OF YOUR INTENTION TO DO SO TO US WITHIN THIRTY (30) DAYS OF THE PURCHASE OF THIS AGREEMENT (THE DATE OF PURCHASE BEING INDICATED

ON YOUR SALES ORDER AND RECEIPT FROM THE SELLING RETAILER). To opt out, You must send written notice to either: (1) 10751 Deerwood Park Blvd., Suite

200, Jacksonville, FL 32256, Attn: Legal or (2) [email protected], with the subject line, “Arbitration Opt Out.” You must include in Your opt out notice: (a) Your

name and address; (b) the date You purchased Your Agreement; and (c) the Selling Retailer. If You properly and timely opt out, then all Claims will be resolved in

court rather than arbitration.

ENTIRE AGREEMENT: This is the entire Service Agreement between the parties, and no representation, promise or condition not contained herein shall modify these items.

INSURANCE:

4WARRANTY’S OBLIGATIONS TO PERFORM UNDER THIS AGREEMENT ARE INSURED BY LYNDON SOUTHERN INSURANCE COMPANY, 10751 DEERWOOD PARK

BLVD., SUITE 200, JACKSONVILLE, FL 32256 (800) 888-2738, EXCEPT IN GEORGIA AND FLORIDA.

GEORGIA - THE OBLIGOR IS INSURED BY INSURANCE COMPANY OF THE SOUTH, 10751 DEERWOOD PARK BLVD., SUITE 200, JACKSONVILLE, FL 32256 (800) 888-

2738.

IF THE OBLIGOR FAILS TO PAY AN AUTHORIZED CLAIM WITHIN SIXTY (60) DAYS, OR IF THE OBLIGOR BECOMES INSOLVENT OR CEASES TO CONDUCT

BUSINESS DURING THE TERM OF THIS AGREEMENT, YOU MAY SUBMIT YOUR CLAIM DIRECTLY TO THE APPLICABLE INSURER AT THE ABOVE ADDRESS FOR

CONSIDERATION

STATE REQUIREMENTS AND DISCLOSURES:

Alabama: CANCELLATION section is amended as follows: A ten percent (10%) penalty per month will be applied to refunds not paid or credited within forty-five (45) days of receipt of

returned Service Agreement.

Florida: This Agreement is between the Provider, Lyndon Southern Insurance Company (License No. 03698) and You, the purchaser. CANCELLATION section is amended as follows:

If You cancel this Agreement, return of premium shall be based upon ninety percent (90%) of the unearned pro-rata premium less any claims that have been paid or less the cost of

repairs made on Your behalf. If this Agreement is cancelled by the Provider or Administrator, return of premium shall be based upon one hundred percent (100%) of the unearned

pro-rata premium less any claims that have been paid or less the cost of repairs made on Your behalf. The rate charged for this service contract is not subject to regulation by the

Florida Office of Insurance Regulation. The DISPUTE RESOLUTION/ARBITRATION AGREEMENT AND CLASS ACTION WAIVER section is amended to add the following:

Arbitration proceedings shall be conducted in the county in which the consumer resides.

Georgia: Coverage is effective upon the expiration of the shortest portion of the manufacturer’s warranty. CANCELLATION section is amended as follows: If You cancel the Agreement

within thirty (30) days of the Agreement Purchase Date, and no claim has been made, We will refund You one hundred percent (100%) of the Agreement Purchase Price. After thirty

(30) days, or if a claim has been made, We shall refund You one hundred percent (100%) of the unearned pro rata purchase price, less any claims paid, and less a cancellation fee not to

exceed ten percent (10%) of the unearned pro rata purchase price. If You cancel this Agreement within thirty (30) days of the Agreement Purchase Date, 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 the return of the Agreement to Us. We may cancel this Agreement for non-payment of

the Agreement Purchase Price, material misrepresentation, or fraud. The notice of such cancellation shall be in writing and shall be sent no less than thirty (30) days before the effective

date of such cancellation. The notice shall state the reason for, and effective date of, the cancellation. If We cancel this Agreement, We shall refund You one hundred percent (100%) of

the unearned pro rata purchase price, less any claims paid, and less a cancellation fee not to exceed ten percent (10%) of the unearned pro rata purchase price.

DISPUTE RESOLUTION/ARBITRATION AGREEMENT AND CLASS ACTION WAIVER section of this Agreement is removed. The “EXCLUSIONS-WHAT IS NOT COVERED” section

of this Agreement is amended as follows: Any and all pre-existing conditions known by You that occur prior to the effective date of this Agreement.

Mississippi: IMPORTANT NOTICE ABOUT YOUR COVERAGE:

1.) This Agreement includes a binding DISPUTE RESOLUTION/ARBITRATION AGREEMENT AND CLASS ACTION WAIVER agreement.

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4WC-BADCOCK ALLPROD (07/2021)

2.) The DISPUTE RESOLUTION/ARBITRATION AGREEMENT AND CLASS ACTION WAIVER agreement requires that any dispute related to Your coverage must be resolved by

arbitration and not in a court of law.

3.) The results of the arbitration are final and binding on You and Us.

4.) In an arbitration, one or more arbitrators, who are independent, neutral decision makers, render a decision after hearing the positions of the parties.

5.) When You become an Agreement Holder under this Agreement You must resolve any dispute related to the Agreement by binding arbitration instead of a trial in court, including

a trial by jury.

6.) Binding arbitration generally takes the place of resolving disputes by a judge and jury.

7.) Should You need additional information regarding the binding arbitration provision in the Agreement, You may contact Our toll-free assistance line at (800) 867-2216.

CANCELLATION section is amended as follows: A ten percent (10%) penalty per month will be applied to refunds not paid or credited within forty-five (45) days of receipt of returned

Service Agreement.

North Carolina: CANCELLATION section is amended as follows: We may not cancel this Agreement except for non-payment by You or for violation of any of the terms and conditions

of this Agreement.

South Carolina: If You purchased this Agreement in South Carolina, complaints or questions about this Agreement may be directed to the South Carolina Department of Insurance,

P.O. Box 100105, Columbia, South Carolina 29202-3105, telephone number 803-737-6180. CANCELLATION section is amended as follows: A ten percent (10%) penalty per month will

be applied to refunds not paid or credited within forty-five (45) days of receipt of returned Service Agreement.

Virginia: If any promise made in this Agreement has been denied or has not been honored within sixty (60) days after Your request, You may contact the Virginia Department of

Agriculture and Consumer Services, Office of Charitable and Regulatory Programs at www.vdacs.virginia.gov/food-extended-service-contract-providers.shtml to file a complaint.