Addendum to VCCIOnline.com terms of use

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1 Addendum to VCCIOnline.com terms of use Volkswagen Pre-Owned Direct & Audi Pre-Owned Direct Private Label Terms of Use Please note that effective January 15, 2015 this addendum applies only to purchases made by Volkswagen and Audi franchise dealers for purchases made on the private label website VCCIonline.com. They are a supplement to the terms of use guided by the ADESA Canada auction policies. All items listed in this document supersede any comparative items covered in the ADESA Canada auction policies. However, any purchases of vehicles on DealerBlock or at a physical auction will be subject to the standard ADESA Canada Auction Policies. ARBITRATION PERIODS Exclusively for Franchise Dealers; the Regular Arbitration period for purchases on VCCIonline.com is now 3 business days after delivery of the vehicle. ONLINE USER ID AND PASSWORD MANAGEMENT Knowingly providing use of your user ID and password by parties other than the registered Franchise Dealer to which the user ID and password have been assigned to, for the purpose of conducting transactions in Closed Sale venues is prohibited. Breach of this policy may result in a suspension of your Auction privileges. CLOSED SALE PARTICIPATION The Closed Sale venue is an exclusive access privilege provided to Franchise Dealers for the purpose of acquiring vehicles for their Used Vehicle Retail operations. Any purchase(s) of vehicles for the purpose of wholesaling to non-franchise dealers within 30 days of purchase date is prohibited. Breach of this policy may result in a suspension of your Auction privileges.

2 Volkswagen Finance Arbitration Guidelines 2015 Arbitrating your Auction Purchase What you need to know

3 Clearing up any concerns Arbitration Claim Time Limits If the vehicle you have purchased is not as described or has evidence of undeclared damages, you are required to contact the respective Auction Arbitration Department to submit a claim. Vehicles are sold in more than one venue and are subject to the time limits and arbitration policies set out within the respective auction. Please note that the arbitration policy is in place to cover major vehicle issues and not necessarily those that would be repaired under normal Certified / Safety inspection requirements. For all other arbitrations, the minimum threshold is $ per item. The following items do not qualify for Arbitration: General Reconditioning Items include: (i) OEM specified scheduled maintenance; (ii) tire wear or condition; (iii) brake wear or condition; (iv) springs; (v) shocks; (vi) conventional suspension; (vii) clutch failure on standard or manual transmission; (viii) engine or rear-end noises that are typical of a particular model or manufacturer; (ix) upholstery/carpet stains; (x) wipers, brake pads, brake shoes, rotors, belts, hoses, lubricants, fluids, timing belts, bulbs, filters, struts and (xi) similar items. Normal Exterior Wear and Tear: damage that would be considered normal wear and tear given the distance travelled and age of the Vehicle and is not easily seen, such as scratches that do not break the paint, minor nicks, cuts and/or scuffs. Please remember to use discretion when submitting an arbitration for these instances. Arbitration Claim Time Limits: Please note the following stipulations / criteria before submitting your case for arbitration as per the relevant Auction Policies (most popular concerns): Seller Disclosure Requirements Issue Accident Repair (2 or more replaced adjacent panels) Unibody/Frame, Altered or Repaired Regular Arbitration Period Regular Arbitration Period Volkswagen Pre- Owned Direct *Volkswagen Dealers Only 1 Business Day 3 Business Days Extended Arbitration Period 7 Business Days Not Actual Kilometers (previously TKU or inoperative odometer Transmission Problem 1 Business Day 3 Business Days 7 Business Days Electrical Problems 1 Business Day 3 Business Days Quattro/4Motion System is inoperable 1 Business Day 3 Business Days ABS Problem 1 Business Day 3 Business Days

4 Volkswagen Pre-Owned Direct Auction Purchases: *Beginning April 1 st, 2015 Volkswagen Finance introduced a two day extension on the Regular Arbitration Period offered on vehicles purchased at Volkswagen Pre-Owned Direct. This was introduced to provide franchisees a longer period to perform a general assessment after receiving their purchase. Exclusive to Volkswagen dealers and only available when purchased on Volkswagen Pre-Owned Direct. For further information, please feel free to browse the Auction Policy resources available online at: ADESA_Canada_Aribitration_Policies Manheim_Canada_Arbitration_Policies Arbitrating your vehicle purchase Who to contact If the vehicle you have purchased is not as described or has evidence of undeclared damages, you are required to contact the respective Auction Arbitration Department to submit a claim. For vehicles purchased through Volkswagen Pre-Owned Direct submitting a claim can easily be completed online or by phone. 1. From your Home screen on Volkswagen Pre- Owned Direct select My Transactions then Open a Case. 2. Complete and submit the online form case. 3. Enter VIN along with description and Submit. 4. Customer Connection team will contact you within one business day.

5 Arbitration Contact Information: Sale Venue Contact Name Contact Tel Contact Volkswagen Pre-Owned Direct Volkswagen Finance Arbitrations Customer Connection VCCI Arbitrations ADESA Vancouver Arbitration Department Manheim Toronto Rick Townsend ADESA Toronto Arbitration Department ADESA Montreal Arbitration Department ADESA Quebec City Arbitration Department ADESA Halifax Arbitration Department Please be sure to have all necessary documentation ready when submitting an arbitration (please refer to next page). This allows Volkswagen Finance or the respective auction venue to make a decision for a concession / sale unwind quickly and efficiently. Arbitrating your vehicle purchase Your Responsibilities / Required Documentation Submission times for all documentation is critical. A lag time in producing required proof of expenses and vehicle condition may result in the decline of the arbitration. Inspect your purchase when received. Although vehicles have been inspected prior to being sold, instances can happen that could affect the overall condition of your purchase. Some vehicles may not have been through a mechanical inspection in some time. Performing an inspection prior to any reconditioning will ensure and protect you from any surprises. Examples of some common cases are undisclosed damage, a major mechanical issue, or a drivetrain modification deeming the vehicle with a TD1 status. TD1 status is a warranty key used to identify engine modification and denying any future powertrain warranty. In our experiences, TD1 warranty keys are not identified until after purchase and in most instances cannot be detected until a scan is performed. Vehicles suspected of having these modifications should be thoroughly inspected and scanned. These are just a few reasons of why an inspection is critical prior to any reconditioning. Please expedite all necessary paperwork upon arrival of vehicle on your premise. (Within 3 business days on Volkswagen Pre-Owned Direct and 1 business day for all other venues) in order for your arbitration case to be reviewed with sufficient grounds for concession/sale unwind. Any reconditioning charges incurred will not be compensated.

6 Please note that the timeframe to inspect, determine and notify for any accident repair/frame damage vehicles is 7 days. Volkswagen Finance, through the auction arbitration office, must receive the necessary documentation within this timeframe. Volkswagen Pre-Owned Direct Purchases NEW Beginning September 1 st The information gathered and reported in the grounding checklist can impact both buyer and seller. Errors and/or omissions on the Turn In Checklist are the responsibility of the grounding dealer. Items identified and resulting in an arbitration can and will result in adjustments being assessed against the grounding dealer s Volkswagen Advantage program earning or via direct billing. In addition to the standard arbitration items, vehicles noted on the Turn In Checklist are subject to arbitration ONLY when the Vehicle Release and Bill of Lading are completed. The Vehicle Release and Bill of Lading are available when your Volkswagen Pre-Owned Direct purchase is completed. Turn In Checklist items should be verified and signed by both buyer and grounding dealer at the time of pick up. To process an arbitration in a timely fashion, both Volkswagen Finance and the respective auction require the following documentation to process the concession/sale unwind: Pictures of any undisclosed damages or flaws either cosmetic or mechanical - for any Volkswagen Pre- Owned Direct arbitration Copy of an estimate for any repairs required. Please ensure to include Volkswagen OEM part numbers for any parts used in the estimate Copy of the Vehicle Release and Bill of Lading (if applicable) Copy of the transport bill (if applicable) Advise the arbitration office of the vehicle s current location

7 Physical Auction Purchases ADESA / MANHEIM Vehicles purchased at physical auction are not eligible for arbitrations on announced conditions / claims or cosmetic imperfections (previous repaint / repair that does not constitute accident repair / frame damage) Pictures of any undisclosed damages or flaws either cosmetic or mechanical - for any Volkswagen Finance arbitration Copy of an estimate for any repairs required. Please ensure to include Volkswagen OEM part numbers for any parts used in the estimate Copy of the transport bill (if applicable) Advise the arbitration office of the vehicle s current location Arbitrating your vehicle purchase Claims / Goodwill Volkswagen Finance continues to provide our buyers with the highest level of transparency in every venue we participate. We understand that arbitration policies are created based on industry best practices and instances can sometimes occur that would result in your claim being refused. If your arbitration is denied and you feel the case should be re-opened, please do so by reaching out to your Volkswagen Finance Business Development Manager. British Columbia Kimberly Champagne Alberta, Saskatchewan, Manitoba Jeff McKee Ontario West David Loveless Ontario East & Metro Chris Hsu West Quebec Benoit Moreau East Quebec Stéphane Sédillot Ottawa & Atlantic Robert Caven If you have any questions, concerns or comments, please do not hesitate to contact any member of your Volkswagen Finance Remarketing Team: Robert Hodge, National Remarketing Manager Chris Haraburda, Remarketing Operations Manager Francois Landry, Remarketing Sales Specialist

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