DEALERSHIP REFERENCE GUIDE December 12

DEALERSHIP REFERENCE GUIDE December 12-1 -

Table of Contents Section A What is the ZERO Plan Page 4 Description of the Program A-1 What Products are Eligible for Financing A-2 Contact Information for the Dealership A-3 Section B Dealership Sales Tools Pages 5-9 Dealer Sales Tool CD B-1 How to use the Dealer Sales Tool CD B-2 Contents of the Dealer Sales Tool CD B-3 Updates B-4 How to Save the dealership name in the Forms Builder B-5 Find Everything at www.the-zero-plan.com B-6 Section C ZERO Plan Terms and Guidelines Pages 10-12 Balance to Finance Determines the Terms C-1 Determine the Remaining Coverage Terms C-2 Down Payment Requirement C-3 Customer Repayment Term C-4 Dealership Fee to use the ZERO Plan C-4 Sample of Exhibit A Terms and Guidelines C-6 Section D Other Rules and Guidelines Pages 13-14 Matching of Sales Price D-1 Matching of Dates D-2 Multiple Purchasers D-3 Information on Forms D-4 Use of Current Forms or Forms Builder D-5 Multiple Products on Single Note D-6 Dealership Representations Regarding Program D-7 Lien Holder Requirement D-8 Section E Customer Payment Options Pages 15-16 Two Options to Present to Customers E-1 Sample of Customer Repayment Form E-2 Section F Creating the Required Forms Pages 17-19 Two Forms to Create F-1 Three Methods to Complete Forms F-2 Instructions on Completing Forms F-3 Section G How the Dealership Gets Paid Pages 20-21 Review of Required Documents G-1 Creating the Document Packet G-2 Delivery to Universal Lenders G-3 Calculation of Dealer Proceeds & Payment G-4 FACT SHEET Dealer Cash Flow G-5-2 -

Section H Customer Service Page 22 It Starts at the Dealership H-1 Collection Notices H-2 Customer CURE Letter and Dealership involvement H-3 Paid Account H-4 Section I Cancellation of Financed Products Pages 23-27 Dealership Responsibility I-1 Calculation of Refund What is Due to Universal Lenders I-2 Cancellation Due to Customer Request I-3 Sample Request to Cancel Customer Request I-4 Sample Request to Cancel Universal Lenders Request I-5 Right to Offset I-6 FACT SHEET Effect of Cancellation on Dealer Profit I-7 Section J ZERO Plan Menu Page 28-29 Description of Program J-1-3 -

Section A What is The ZERO Plan A-1 Description of the Program The ZERO Plan is a zero percent payment program designed specifically for the automotive, RV and power sports industries. The ZERO Plan is a turn key program that gives retailers the opportunity to offer zero percent financing to their customers to aid in the sale of ancillary products such as extended service contracts. A-2 What Products Are Eligible for Financing The products that are eligible for financing using The ZERO Plan must first be approved by Universal Lenders LLC. A list of approved products can be found in the password protected area at www.the-zero-plan.com. In general, products that allow for the customer to cancel the coverage and receive a pro rated refund of unearned premium are eligible provided they recognize a lien holder s right to cancel the coverage for non payment by the customer. Examples of products that may meet this criterion are Extended Service Contracts, Tire & Wheel Protection, Ding & Dent Protection. To determine if a product meets the eligibility criterion please contact Universal Lenders LLC. A-3 Contact Information for Dealership Use Contact Information on Universal Lenders LLC Phone 866-954-1050 Fax 773-889-4508 Email info@universallenders.net Website www.the-zero-plan.com Mail 1140 W Lake Street Suite 202 Oak Park IL 60301 or P.O. Box 4179 Oak Park IL 60303 Hours Monday - Friday 9:00 AM to 6:00 PM CST - 4 -

Section B Dealership Sales Tools B-1 Dealership Sales Tool CD When a dealership enrolls in The ZERO Plan a Dealership Sales Tool CD is delivered to the dealership with an initial supply of forms in a start-up kit. This CD contains files that are invaluable to the dealership s rollout of The ZERO Plan program and supplies tools for the continuing success of the program. B-2 How to Use the Dealership Sales Tool CD The Dealership Sales Tool CD requires a window based computer, Microsoft Word and Adobe Reader 9.0 or newer (available for free download at www.adobe.com) Most companies have windows based computers loaded with the Adobe reader and Microsoft Word. The CD contains one folder called The ZERO Plan. Once the disk is loaded an installation program will install the files and put an icon on your desktop for easy access. This CD should be installed on each computer where The ZERO Plan is to be used. B-3 Contents of the Dealership Sales Tool CD A Menu System that you may want to use to aid in selling service contracts or vehicle products to service customers or CASH buyers. A Sales Pricing Program (displayed in Excel or HTML Format) that will compute a product policy sales price if you enter the product cost and desired profit net of our fee. Open the folder named Compute Sales Price Tools ZERO Plan logos for use in promotional materials, dealer websites and brochures. Open the folder named ZERO Plan Logos A Forms Builder document which allows you to print the Note & Contract and Payment Authorization Form from their PC to a printer bypassing the DMS system. Open the folder named Current Forms. See B-5 below for instructions on how to add your dealership information to the Forms Builder. Current versions of the Note & Contract and Customer Payment Form are available should you run out of your forms supply. Open the folder named Current Forms FACT Sheets that answer all the common questions about The ZERO Plan. Open the folder named Fact Sheets - 5 -

Create a Dealer Brochure. Use this tool to customize a ZERO Plan brochure to fit your needs or use as a proof to have the brochure professionally printed. Open the folder named Create a Brochure ZERO Plan Terms and Guidelines. Contains the current guidelines to be used when pricing a product using 0% financing. Complete Dealership Reference Guide. Answers any and all questions concerning The ZERO Plan from A to Z. B-4 Updates Each year (or sooner if necessary) the dealership will receive a new Dealership Sales Tool CD updated with the most current information, forms and new programs. Generally the updates are sent to the Controller or Office Manager. Please update all personal computers as soon as possible B-5 How to Add Your Dealership s information to the Forms Builder. Normally the dealership will never save any entered data in the Forms Builder so that each time the Forms Builder is opened is clear of all prior transactions and is ready for the transaction at hand. The only exception to this is when the dealership saves their own information in the Forms Builder so that the retailer name, address and representative information does not have to be entered for each transaction In order to accomplish the saving of this retailer information please follow the steps below. 1. Find the ZERO Plan Forms Builder on the desktop and click it to open. - 6 -

2. Once the forms builder is displayed enter your dealership s name and address as shown below. Then enter your name in the box to the right as shown below. Once the entries are complete click the SAVE icon located on the left side of the task bar as shown. 3. Close ZERO Plan folder. When using the ZERO PLAN Forms Builder in the future the dealership and employee name will displayed and not have to be entered each time a sale is entered. - 7 -

B-6 Find Everything at www.the-zero-plan.com Universal Lenders LLC provides a website for both the ZERO Plan customer and our business partners. Below is a screen shot of the Customer Section(Sample dated 2-2011): It is suggested that dealership employees refer customer questions to customer section of our website. If one of our FAQ items does not address their question they can email Universal Lenders LLC with their specific concern. - 8 -

The Business partner section is password protected. When your dealership enrolled with Universal Lenders a password and user name were assigned. If you do not know your dealership s password or user name please contact us. Once the user name and password are entered the following screen displays: As you can see from the screen shot above this site has everything a dealership will need to utilize their ZERO Plan product to help them increase sales and provide customer service. Should you have any questions about our website please contact our office. - 9 -

Section C ZERO Plan Terms & Guidelines Note: At the end of this section you will find C-6 Sample Terms & Guidelines. This is a sample of what is supplied to each dealership. The Terms and Guidelines are normally updated once a year and the dealership will receive an updated and current version at that time. The sample found in C-6 may not be the most current version. Please refer to the sample as you review C-1 thru C-5 C-1 Balance to Finance Determines the Terms To determine which Terms are to be used for a transaction you must first determine if the transaction has a customer Balance to Finance (Definition: Sale price + Sales Tax Down Payment) that is under $1500.00 If the customer Balance to Finance is under $1500.00 then the table with a heading of Balance to Finance Under $1500.00 should be used. If the customer Balance to Finance is over $1500.00 then the table headed Balance to Finance : Over $1500.00 should be used. C-2 Determine the Remaining Coverage Term The table requires that you determine how many months and miles of the remaining term of the product coverage the customer is going to receive. Normally the stated months and mileage of coverage, such as 60 months or 75,000 miles, begin on the sale date of the product and from the current mileage on the vehicle. The term Remaining is important in some cases. If the product s start point goes back in time to a delivery date instead of the product sale date or if the mileage coverage starts at zero miles instead of the miles on the vehicle at the time of sale, then you must determine how many months and miles a customer will receive from the sale date of the product policy. Once you determine the Remaining coverage you can determine the remaining terms. If the Service Contract effective date is more than a year past then prior authorization is required from Universal Lenders. C-3 Down Payment Requirement The down payment requirement found in the table is a Minimum Down Payment Requirement. The more money a customer pays as a down payment the more likely the customer is to pay all of his installment payments which in turn will reduce profit charge backs. Also you will see in C-5 below that the Dealer Fee may be reduced as the customer pays more money as a down payment. The Down Payment is calculated by multiplying the minimum required down payment percentage by the Total Sales Price (Definition: Sale Price + Sales Tax). - 10 -

C-4 Customer Repayment Term The table will determine which monthly repayment term will apply to the transaction. For those policies with at least 36 months or 36000 miles of remaining coverage the customer repayment term may be 9, 12, 15, 18 or 24 months. For a customer to be eligible to receive 15 or 18 month repayment terms the Balance to Finance must be at least $1500.00. To keep the Dealer Fee low the dealership should attempt to keep the repayment term at 12 months even if a customer is eligible to choose 15 or 18 months. C-5 Dealership Fee to use The ZERO Plan The table determines the amount of fees a dealership pays to use The ZERO Plan. For Balance to Finance (Definition: Sale price + Sales Tax Down Payment) amounts under $1500.00 there is a flat dollar fee. For Balance to Finance amounts $1500.00 or more the dealer fee is calculated as a percentage of the Balance to Finance. To determine the fee that applies to your dealership you also must be aware of the volume of business that Universal funds each month. When monthly volumes averages 6 contracts per month a discounted fee schedule applies..when the volume exceeds 20 contracts per month the lowest fees apply. Commonly owned dealerships or groups can combine their monthly volume to secure the lowest rates. In the sample found in C-6 the Level A Dealer Fee is 11% for 12 months. As an example, if the Balance to Finance is $2000.00 then the Dealer Fee would be $220.00 (Calculation: $2000 multiplied by 11% = $220.00). The fee is paid when the dealership receives the proceeds from the sale of the Customer Note to Universal Lenders LLC. Using the example above if the Balance to Finance is $2000.00 and the Dealer Fee is $220.00 then when the Customer Note is presented to Universal Lenders LLC for purchase the dealership will receive a check for $1780.00 which represents the Balance to Finance less the Dealer Fee. - 11 -

C-6 Sample Terms and Guidelines - 12 -

Section D Other Rules and Guidelines D-1 Matching the Sales Price The sales price found on the product policy plus any sales tax must match the sales price and sales tax entered on the Customer Note & Contract. D-2 Matching of Dates The date found on the product policy must match the date entered on the Customer Note & Contract. D-3 Multiple Purchasers If the product policy has listed more than one purchaser then all the purchasers need to be entered on the Customer Note & Contract. There also needs to be additional and unique residence, social security number and telephones information entered on the customer Note & Contract for each purchaser. D-4 Information on Forms The Customer Note & Contract is the legal document that requires the customer to make payments on the product sold by the dealership. Every data field found on the Customer Note & Contract needs to be filled in with customer, dealer, financial or product information. There are no fields that may be left blank! If you are unclear what to enter then contact Universal Lenders LLC. D-5 Use of Current Forms or Form Builders Universal Lenders LLC supplies its dealerships with Customer Note & Contract forms and Customer Payment Authorization forms. In the alternative, Universal Lenders LLC also supplies a Forms Builder program that a dealership can use to create customer forms on plain paper. When a new version of the forms or Forms Builder program is supplied to the dealership they should be used immediately. All older version forms should be discarded. If a dealership is using the Forms Builder then the newest version of the program should be used immediately. The most current versions of all our forms may be found in the password protected portion of our website at www.the-zero-plan.com - 13 -

D-6 Multiple Products on a Single Note One Customer Note & Contract can finance more then one approved product policy. To determine which set of Terms and Guidelines apply to a multi product Customer Note & Contract the product policy with the shortest monthly term and miles sets the requirements. As an example if the multiple products financed on a single Customer Note & Contract consisted of a 7 year/75000 mile service contract, a 5 year/60,000 mile Tire & Wheel policy and a 2 year/24000 mile Dent & Ding policy and the total sale price of the three exceeded $1500.00, then the Terms & Guidelines found in the $1500.00 and Over Table for 24 month/24000 mile coverage term would apply. In addition each of the three administrators, Agreement Numbers and Product Descriptions would need to be included on the Customer Note & Contract form. D-7 Dealership Representations Regarding the Program Each dealership offering The ZERO Plan has executed a dealer agreement which states: The ZERO Plan is intended to provide that the customer will incur no finance charge when purchasing a Vehicle Product. Dealer accordingly agrees to offer customers the same price on all Vehicle Products whether they choose to participate in the ZERO Plan to finance a portion of the price or they choose to pay the full price in cash or its equivalent. Dealer agrees that under no circumstances will there be a price reduction on a Vehicle Product offered to a customer who elects not to participate in the ZERO Plan. There are many State and Federal laws and regulations governing consumer transactions. Failure of dealership employees to adhere to the dealer agreement provisions could put the dealership at risk of legal liability. D-8 Lien Holder Requirement Every product policy financed using The ZERO Plan must list Universal Lenders LLC as the Lien Holder on the product policy form. The form must also list the address of Universal Lenders LLC. This requirement is absolutely necessary and no Customer Note & Contract will be purchased from the dealership without Universal Lenders LLC noted as the Lien Holder. - 14 -

Section E Customer Payment Options E-1 Three Options to present to the Customers There are three options for making loan payments a customer may choose from. They are: MONTHLY REMITTANCE Customer is supplied with a coupon book to remit their payments monthly via the mail. The customer will receive their coupon book when Universal Lenders LLC receives the loan document package from the dealership. AUTOMATIC WITHDRAWAL Also known as ACH Payment, this option allows Universal Lenders LLC to withdraw the monthly payment from the customer s checking or savings account. This option requires the customer to sign a Customer Payment Authorization Form. This form needs to be included in the loan document package sent to Universal Lenders LLC. A sample of the form can be found in E-2 below. CREDIT CARD PAYMENT Payments will be charged to the customer s credit card each month on the due date. This option requires the customer to sign a Customer Payment Authorization Form. There is a $4.00 per transaction convenience fee charged each time a payment is taken. This form needs to be included in the loan document package sent to Universal Lenders LLC. - 15 -

E-2 Sample of Customer Payment Authorization Form - 16 -

Section F Creating the Required Customer Forms F-1 Forms to Create There are three forms that Universal Lenders LLC supplies the dealership with. The Customer Note & Contract is the principle form. Much like a retail installment contract, the Customer Note & Contract is the legal agreement between the customer, the dealership and Universal Lenders LLC which binds the customer to making monthly payments to pay for the vehicle product policy. The second form is the Customer Payment Authorization Form. This form is only required when a customer chooses to make their monthly payments thru automatic withdrawal (ACH) or credit card. Please refer to Section E above for further discussion on this form. The third form is an addendum to the Note & Contract that is only used when a non cancellable product is financed using the ZERO Plan. F-2 Four Methods to Create the Forms The dealership can choose from four acceptable methods for creating the two forms described above. 1. The forms can be handwritten. This is the least desirable option because handwriting can be difficult to read and mistakes can be made calculating the financial information. 2. The forms can be created by the dealership s DMS provider. ADP and Reynolds & Reynolds always have the current forms in their forms library. The dealership can request the forms from their provider and have the forms created thru the DMS provided forms printing program. This option is preferable when the transaction occurs at the time of sale in the business office. It is more difficult to use this option when the transaction takes place on the service drive, thru a business call center or in the sales departments after the sale of the vehicle has occurred. 3. The forms can be created using the Forms Builder program. Universal Lenders LLC supplies each dealership with a Forms Builder program which is loaded on the employee s computer. This method works best for all the potential transaction scenarios. This program is supplied on the Dealer Sales Tool CD referenced in Section B above. 4. The forms can be created with the ZERO Plan Menu. Review Section J below for complete details. The ZERO Plan Menu incorporates the forms builder described in 3 above. - 17 -

F-3 Instructions on Completing the Two Forms Below are the detailed instructions on how to complete each form. Although these sample instruction forms may not be the newest version of each form the information that is required will be the same. Current versions can always be found on our website at www.the-zero-plan.com - 18 -

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Section G How the Dealership Gets Paid G-1 Review of the Required Documents After the transaction has occurred and before the documents are delivered to Universal Lenders LLC it is suggested that the documents be reviewed for completeness and accuracy. Although it is Universal Lenders LLC objective to never return a loan package to a dealership, certain discrepancies can not be corrected at the Universal offices and will require that the documents be returned to the dealership. Please refer to Sections C and D above to reference the guidelines that should be checked before the document package is sent. G-2 Creating the Document Package The required documents for every loan presented to Universal Lenders LLC for payment are (i)the Customer Note & Contract, (ii)a copy of the vehicle policy(s) for each policy financed under the Customer Note & Contract, (iii) a copy of the drivers license or state issued picture identification for each signer of the Customer Note & Contract and (iv)the Addendum required for non cancellable products. If the customer(s) request a payment option using automatic withdrawal or Credit Card (See Section E above) the Customer Payment Authorization form is required as well. G-3 Delivery to Universal Lenders LLC The Document Package must be received at least 2 weeks before the first payment. The method that the document package is sent to Universal Lenders LLC determines how the payment is sent back to the dealership. If the document package is mailed then the dealer payment will be mailed. If the document package is delivered by an overnight service then the dealer payment will be sent via an overnight service. The preferred method is for the dealership to send the document package via an overnight service to insure that the original documents arrive in a timely fashion and the delivery can be tracked. Getting customers to return to the dealership to re-execute documents due to lost mail could result in a lost sale. Please refer to Section A for Universal Lenders LLC s address. G-4 Calculation of Dealer Proceeds and Payment Once the documents are received, Universal Lenders LLC will process the document package and issue payment to the dealership within seven business days. This commitment could be delayed if there are problems with the paperwork that requires additional time to correct. - 20 -

The dealership will receive an amount that is equal to the Amount to Finance found on the Customer Note & Contract less (or minus) the service fee charged by Universal Lenders LLC. The amount of the fee can be found on the most current Exhibit A to the Dealer Agreement issued by Universal Lenders LLC from time to time and referenced in Section C Terms and Guidelines above. G-5 FACT SHEET Dealer Cash Flow Universal Lenders LLC issues FACT SHEETS to answer frequently asked questions. All the FACT SHEETS can be found on the Dealer Sales Tool CD. This particular FACT SHEET may help you understand the contents of this section. - 21 -

Section H Customer Service H-1 It Starts at the Dealership It is Universal Lenders LLC intent to provide excellent customer service to the dealership s clients. The dealership should make sure the customer knows that Universal Lenders LLC is going to service their loan. The customer should be directed to the toll free phone number and address located on the Customer Note & Contract in the event they need to contact Universal Lenders LLC. It is also suggested that the dealership clearly explain that any questions involving claims and coverage of the product policy financed should be directed to the dealership and not Universal Lenders LLC. It should be clear that Universal Lenders LLC can only help with any questions about their monthly payments. Customer service starts with good communication. H-2 Collection Notices In order to reduce cancellations and profit charge backs due to customer payment defaults Universal Lenders LLC has an aggressive collection plan in place. The following correspondence reminds the customers that payments are due on time: A friendly reminder note is mailed when an account is 5 days delinquent. A Late notice is mailed when an account becomes 10 days delinquent. A certified letter with return receipt requested is mailed when an account reaches 20 days delinquent. It clearly states that payment is due within 10 days or their policy will be cancelled. This letter is referred to as a customer CURE letter. A supervisory phone call prior to cancellation. H-3 Customer CURE Letter and Dealership Involvement When the customer is mailed the CURE letter Universal Lenders LLC also faxes a copy of the CURE letter to the designated employee at the selling dealership. When a dealership is enrolled, the dealership designates an employee to receive the faxed copies of CURE letters. Universal Lenders LLC suggests that a dealership employee contact the customer in an attempt to stop a pending cancellation and chargeback. It has been proven that dealership involvement will reduce profit charge backs and cancellations. - 22 -

Section I Cancellation of Financed Products I-1 Dealership Responsibility Every dealership authorized to use The ZERO Plan has signed a dealer agreement with Universal Lenders LLC. The portion of the dealer agreement that deals with policy cancellation is found in Section C Dealer Responsibilities Paragraph 8. It reads: Upon cancellation of a VSA by the customer or for a default by the customer under the terms of the Note, Dealer agrees to timely issue a full pro rata refund based upon time, and not upon elapsed miles, made payable solely to Universal or to cause the Administrator to timely issue a full pro rata refund based upon time, and not upon elapsed miles, to Universal pursuant to the terms and conditions of the VSA. In addition, should the terms of a VSA call for a reduction in the pro rata refund amount for any claims paid under the policy, Dealer agrees to disregard these terms and pay the full pro rata refund without regard to the reduction of the refund amount by the amount of any claims paid*. *The executed Agreements contain the exact language agreed to by the parties and supersedes the above sample language. In summary the dealership when presented with a cancellation request issued by Universal Lenders LLC will timely issue the cancellation refund check made payable to Universal Lenders LLC. The calculation must be pro rated based upon time and not upon miles. In addition the calculation cannot reduce the refund amount by the amount of any paid claims. I-2 Calculation of the Refund What is Due to Universal Lenders LLC When Universal Lenders LLC notifies the dealership of a request to cancel the product policy the notification will include the amount of the current customer balance which is always less than the specific calculation for the refund based on the specific language from the product policy. The notification is faxed to the dealership and then mailed. A sample of these requests (one at customer request and one at Universal s request) can be found below in I-4 and I-6 The notification will inform the dealership of the amount of the customer account balance. In most cases the customer account balance is less then the calculated cancellation refund amount. Universal Lenders will not ask for an amount over the calculated refund per the Policy. The dealership will determine what to do with the Customer Surplus (definition: Cancellation Refund Amount minus the Customer Account Balance) based on their own state laws. - 23 -

I-3 Cancellation Due to Customer Request When a customer informs us that it is their wish to cancel the product policy and payoff their account at Universal Lenders LLC we ask the customer to put their request in writing. When the written request is received the dealership is informed via fax and mail. Universal Lenders LLC will request a check be issued for the customer account balance amount to payoff the account. The dealership needs to issue the check and send it to Universal Lenders LLC within 10 days. When the dealership receives the notification it can attempt to contact the customer to stop their request and retain its profit. Should the customer have a change of heart then a written request from the customer to reinstate the loan must be sent to Universal Lenders LLC. I-4 Cancellation Due to Customer Default In the event of a customer default, Universal Lenders LLC will notify the dealership to cancel the product policy and to issue a check to Universal Lenders LLC. The requested cancellation amount is calculated per I-2 above but is in all cases the amount that the customer owes Universal Lenders LLC at the time of the default. The dealership needs to issue the check and send it to Universal Lenders LLC within 10 days. A sample copy of the cancellation notification is found in I-5 below. - 24 -

I-5 Sample of Cancellation Request Due to a Customer Default - 25 -

I-6 Right to Offset The dealer agreement gives Universal Lenders LLC the right to offset monies that Universal Lenders LLC owes the dealership in order to fund cancellation requests that have not been paid in a timely fashion by the dealership. Universal Lenders LLC will only utilize the right to offset after numerous requests for dealership payment. There is a $50.00 fee that will assessed by Universal Lenders should the additional work of offsetting be required. - 26 -

I-7 FACT SHEET-Effect of Cancellation on Dealer Profit Universal Lenders LLC issues FACT SHEETS to answer frequently asked questions. All the FACT SHEETS can be found on the Dealer Sales Tool CD. This particular FACT SHEET may help you understand the contents of this section. Most Service Contract policies contain language that make the Administrator legally responsible for cancelling the Service Contract upon request by the consumer and to refund to the consumer the pro rata remaining portion of the purchase price of the service contract less an administrative fee. The Administrator normally has a dealer agreement with the selling dealer which requires the dealer to process cancellations on the Administrator's behalf. Example Sale: 24 month 24000 mile Service Contract Purchase price= $1200.00 Cost = $600.00 Dealer Profit = $600.00 24 month Cancellation fee= $50.00 Refund Calculation Summary Customer Request: Customer requests a cancellation with 12000 miles on the vehicle and12 months after delivery (50% pro rata usage). The Dealer calculates a consumer refund based on 50% prorated use equaling $600.00(1200.00 x 50%). A 50.00 cancellation fee reduces the consumer refund to 550.00. If the customer proves that the lien holder has been satisfied (Loan paid off) the dealer issues a check directly to the customer. Universal Lenders LLC (Universal) Requested Cancellation due to non payment: Cancellation Effect on Profit Customer Refund Surplus: The method of calculating the refund amount is the same as the Customer Requested Cancellation above. When the customer defaults on his loan to Universal then Universal will contact the Dealer and request a cancellation. The Dealer will issue a check made payable solely to Universal for the amount of the customer balance owed to Universal. The amount requested is less then the customer refund. After the Dealer has issued the full refund there will be a calculation made to determine what the Administrator owes the Dealer for the premium the Dealer paid to the Administrator to purchase the service contract. In the example above the dealer will seek from the Administrator 50% of the cost of the service contract purchase price totaling $300.00 less the cancellation fee they collected (<600.00 x 50%> - 50.00). The cancellation s effect on the dealer s original profit is that the dealer retains 300.00 of their profit (50% of Profit) In most cases Universal will request a refund check from the dealer which is less then the customer refund based on the policy calculation. It will be the dealership s decision on what to do with the surplus (Calculated Refund Amount Universal Requested Amount) based on their own state laws and regulations. - 27 -

Section J ZERO Plan Menu The most difficult sale for most Retailers is the Cash transaction where the customer arrives with a check from their credit union, bank or outside lender. Retailers are used to selling F&I Protection Products using a payment close as presented with the numerous Menu Systems. Menu selling has historically only been successful with those customers where the Retailer arranged financing. Selling product packages without a payment option is very difficult. Here are the results of an independent survey conducted by Automotive News. To assist our Retailers in selling F&I Products using the ZERO Plan program we now offer the ZERO Plan Menu to each of our Retailers on an optional basis. To learn more about this dynamic sales tool please continue.. - 28 -

ZERO Plan Menu The Ultimate Closing Tool for Cash Buyers & Service Drive Customers Program Description: Designed to be a stand alone menu presentation for cash buyers and service drive customers. The intension is not to replace the current menu system at the Retailer but to increase the penetration of F&I Product sales by using a specialized presentation. Internet Based and Powered by Universal Lenders Technology Partner VisionMenu. Setup, training and customer support are all included. Retailer has complete flexibility to design the product packages and pricing of each package or component within the package. Retailer can set which ZERO Plan payments & terms are displayed. The ZERO Plan Menu will complete and print the ZERO Plan forms when a package is sold. Quick and easy entry powers this menu..no more than a minute before Menu is presented. Contact Universal Lenders to enroll in this Revenue Generating Program! - 29 -