General Terms

Whitebox will only accept Finance Contracts and Vehicle Service Contracts created through the Whiteform System, unless otherwise previously approved in writing.

Length of Financing for Individual Vehicle Service Contracts

The term of each Whiteform Payment Plan Agreement shall be at least 3 months but will not exceed 24 months. Additionally, the maximum length of financing allowed for an individual contract will be as follows:

Advance Policies and Other General Provisions

Whitebox will advance the actual Dealers’ cost of the VSC including the Administrator Fee, Agent commissions, etc. and any other fees necessary to activate and finance the Vehicle Service Contract on behalf of the Dealer. This payment will be made from Whitebox directly to the Contract Administrator on behalf of the Dealer. This amount will be in accordance with and will not exceed the Dealers standard rate chart provided by Vendor and agreed to by Whitebox.

The Down Payment for each Vehicle Service Contract shall be at least $200 and must be collected by Dealer prior to Whitebox acceptance of any Account.

All installments due from the Purchaser pursuant to the Payment Plan Agreement shall be made to Whitebox by direct debit or pre-authorized draft against the Purchaser’s checking account.

The Maximum amount of an individual Vehicle Service Contract that Whitebox will accept is $2,000.

Whitebox will accept Payment Plan Agreements from any previously approved Warranty Administrator on either used or new automobiles provided that all of the terms and conditions are met. Whitebox retains the right to refuse to accept any individual Finance Service Contract.

A Whiteform Payment Plan Agreement will be deemed to be accepted by Whitebox when the following conditions are met:

1. The Dealer provides all requested data via the Whiteform system including the amount to fund;
2. A completed and signed Whiteform Payment Plan Agreement is submitted by the Dealer. This is automatically electronically submitted to Whitebox when the designated Dealer Administrator approves the contract;
3. A completed and signed electronic Vehicle Service Contract is submitted via the Whiteform System. This is automatically electronically submitted to Whitebox when the designated Dealer Administrator approves the contract. Whitebox will immediately forward a signed, electronic copy of the final contract to VSC Administrator on behalf of the Dealer;
4. The Whitebox fee is paid by the Dealer, either on-line through the Whiteform system, or by check. Whitebox will give immediate payment credit on all payments submitted directly on-line through the Whiteform system. Whitebox will give credit on paper checks when the check is deposited and clears the Whitebox bank;
5. Dealer and Vendor approve the contract through the Whiteform System.; and
6. Whitebox notifies the Dealer via e-mail that the contract is accepted for funding. Note that Whitebox will typically verify and approve completed contracts submitted for funding within 2 business days of receipt. Whitebox will typically fund contracts on behalf of the Dealer within 5 business days.

Status of Amounts Paid to Dealers

Dealer acknowledges and agree that:

Whitebox will collect monthly payments due from Purchaser on behalf of Dealer per the Vehicle Service Finance Contract. Whitebox will first apply all collected funds toward repayment of the advance of Administrator Costs for each individual account until such time as Whitebox has been repaid in full for the Vehicle Service Contract. Additional monthly collected funds will be forwarded to the Dealer on a monthly basis. Amounts due Dealer will be forwarded by the 10^th of the month for all funds collected in the prior month.

The Administrator Cost and the Dealer Profit are earned by Administrator and Dealer, as applicable, in accordance with the terms and conditions of each Vehicle Service Contract, but in no event shall exceed the amounts paid by the Purchaser of the Vehicle Service Contract; and

each Purchaser who enters into a Payment Plan Agreement with Whitebox has agreed in the Payment Plan Agreement to a lien being placed on the Vehicle Service Contract; and

pursuant to such lien placed on the Vehicle Service Contract, prior to any proceeds from cancellation of the Vehicle Service Contract being returned to Purchaser; all monies due back to the Purchaser of the Vehicle Service Contract under the cancellation provisions of the Vehicle Service Contract shall first be paid to Whitebox on the Account of Purchaser until such time at which the obligations due under the Payment Plan Agreement have been fully satisfied; and

the obligations of the Administrator to the Purchaser under the cancellation provisions of the Vehicle Service Contract shall be subject to such lien and shall immediately accrue to the benefit of Whitebox upon cancellation to the extent of the Purchaser’s Account balance as of the point in time of cancellation; and

the unearned portion of the Administrator Cost and the unearned portion of the Dealer Profit received or held by either Provider upon cancellation of each Vehicle Service Contract shall be held in trust by Administrator and/or Dealer, respectively, as trustee for the benefit of Whitebox until such time at which the Refund Amount has been paid in full to Whitebox.

Whitebox and Dealer agree that the provisions of this section are only intended to collateralize the obligations of the Purchaser to Whitebox as agreed to by the Purchaser under the terms and conditions of the Payment Plan Agreement and are not intended to create any additional liability for Dealer other than the liabilities which already exist to the Purchaser of each Vehicle Service Contract under the terms and conditions of such Vehicle Service Contract.

Cancellation

Involuntary Cancellation. If permissible by applicable law or regulations governing cancellation of vehicle service contracts or payment plan agreements, in the event a Purchaser fails to make any payment under the Payment Plan Agreement when due, pursuant to the terms of the Payment Plan Agreement, Whitebox shall send a late notice to the Purchaser. In the event Whitebox fails to receive payment, including any applicable late charges, from the Purchaser within the 10-day period following the mailing of the late notice Whitebox shall have the right, as granted by Purchaser to Whitebox under the power of attorney provisions of the Payment Plan Agreement, to cancel the related Vehicle Service Contract by sending a cancellation notice to the Purchaser, Administrator, and Dealer. In the event of any other event of default under the Payment Plan Agreement, Whitebox shall have the right to cancel the Vehicle Service Contract by sending a cancellation notice to the Purchaser, Administrator, and Dealer. Administrator agrees to cancel any Vehicle Service Contract as permitted by applicable laws upon receipt of a cancellation notice from Whitebox or Dealer.

Voluntary Cancellation. If a Vehicle Service Contract permits the Purchaser to cancel the Vehicle Service Contract and receive a full or partial refund and such Vehicle Service Contract has been purchased under the Payment Plan Program and Administrator and/or Dealer receives any notice from a Purchaser that the Purchaser elects to cancel a Vehicle Service Contract purchased under the Payment Plan Program, then Dealer and/or Administrator, whichever receives notice of cancellation, shall (1) within a reasonable time (but in no event later than the effective date of the cancellation according to the terms of the Vehicle Service Contract and/or the Payment Plan Agreement) notify Whitebox of the Purchaser's cancellation and (2)Forward to Whitebox any refund due from the VSC which has been funded by Whitebox.

Refund to Whitebox on Cancellation. In the event of a cancellation of a Vehicle Service Contract purchased using the Payment Plan Program, and assuming that all funds forwarded from the Administrator do not cover the total outstanding owed to Whitebox, the Dealer shall pay the Refund Amount to Whitebox within 10 days following the date of cancellation of the Vehicle Service Contract. The Dealer acknowledge that, the Refund Amount is all or a portion of the refund owed by the Dealer to the Purchaser of the Vehicle Service Contract and that each such Purchaser has directed (in the applicable Payment Plan Agreement) that the Refund Amount be paid to Whitebox to pay off the balance of the Account. In the event that such amounts are not paid to Whitebox by Dealer within 30 days, Whitebox retains the right to offset fees due from Whitebox to Dealer until amounts owed are met.