WARRANTY TERMS

WARRANTY CONTRACT TERMS AND CONDITIONS

PLEASE READ CAREFULLY

NOTE: The rate charged for this contract is not subject to regulation by the Florida Office of lnsurance.

MODERN AIR CONDITIONING & APPLIANCE SERVICE CO., INC. ("MAC") agrees to furnish mechanical parts and labor necessary to service the specific equipment described on the face of this Contract at the customer
address indicated, in accordance with the following:

1. Service will be rendered Monday through Friday 8:30 a.m. to 5:00 p.m. as schedule permits, EXCEPT HOLIDAYS. EMERGENCY WEEKNIGHTS, WEEKEND AND HOLIDAY SERVICE is limited to non-containable a/c water leaks & non-functioning refrigerators. (A non-refundable fee will be charged for any other service requested.)

2. MAC's sole obligation shall be limited to furnishing new or reconditioned mechanical parts & labor for equipment specified on the face of this Contract, subject to the other provisions of this Contract and among other things, does NOT include parts, service or maintenance for the following:

a. Appliance cabinets, electrical and plumbing lines beyond the equipment, drain pans, heat recovery units, time delays, surge suppressors, hoses or any ductwork.

b. Moving, removing or relocating the equipment. Customer must provide clear access to the equipment.

c. Parts or labor required by the enforcement of existing or future codes, building regulations ordinances, or similar rules including government regulations affecting repair or conversion of refrigeration equipment.

d. Refinishing, repair or replacement of any cabinet parts, shelves, drawers, plastic or porcelain parts, knobs, light bulbs, batteries, filters, coils, glass, glass tops on ranges, clocks, gaskets, washer transmissions. R12 freon, sealed systems and compressors in refrigerators, R22 freon, digital thermostats or timers, refrigeration lines in ceilings, walls or floors, gas lines or gas valves on gas furnaces or appliances, oil furnaces, water valves, a/c valves, faucets, shower or faucet cartridges, solid state circuit boards, circuit breakers, rusted, corroded or oxidized components, variable speed a/c motors and modules, data communicating systems, XI3 DC motors, ultraviolet lights, cleaning of coils, internally or externally restricted coils, a/c isolation to find leak in refrigerant line by isolating main pipes, and noise or smell not affecting function. R410-A freon will be limited to five (5) pounds per year. R22 freon is available on a C.O.D. basis only, if attainable.

e. Compressors over 3 ton unless extra tonnage is specifically listed on a separate line on the face of this Contract and purchased in addition to standard a/c with compressor coverage. Compressors will NOT be replaced if: the unit is over 12 years old, the filters are impacted, and/or if coil clean is needed and compressor stops functioning after customer was notified, but did not have coil cleaned within thirty (30) days.

f. Exchange, shipping and core fees for parts, warranted by the manufacturer or otherwise, replaced under this agreement.

3. MAC will furnish LABOR ONLY to repair microwave ovens or microprocessors on covered equipment. Customer will be advised if parts are required and will be responsible for the cost of parts, to be paid in full upon completion of repair. (Deposit on special order parts required.)

4. MAC will not be responsible for repair or replacement of compressors where age or tonnage is misstated on the face of this Contract or if compressor is located in a closed space like an attic.

5. MAC reserves exclusive right to determine when equipment is obsolete or non-repairable and MAC will not be responsible for the repair or replacement of any such equipment after that determination. If cost to repair exceeds value of equipment, the repair will not be made.

6. Material or labor not covered by the Contract, including but not limited to items listed in Sections 2 and 3, will be furnished by MAC at an additional charge when authorized by the Customer, and Customer agrees that all extras will be paid for upon completion. Replaced parts and equipment are the property of MAC. (Deposit on special orders required.)

7. Customer may add equipment to this Contract at Contract renewal time with MAC approval.

8. This Contract is transferable to a new owner of the covered equipment at the same Customer address upon written notice to MAC and payment of a transfer fee in the amount of $25.00.

9. MINOR Plumbing and Electrical Coverage Option: PLUMBING (inside dwelling/up to 2 bathrooms) covers parts and labor for rubber and silicone washers and seals inside standard faucets and in toilet tank; stoppages in drains, toilets, sinks, tubs or traps within 5 feet of fixture except where removal of fixture is necessary. MAC assumes no responsibility for damage caused by rust or corrosion. One-piece toilet assemblies are LABOR ONLY. ELECTRICAL covers parts and labor for standard wall switches and outlets, circuit breakers and short circuits in wall switches and outlets inside the dwelling, if accessible. Dimmer switches, Zinsco and Stab-Lok breakers are excluded.

10. Customer may cancel this Contract after payment of the full premium by WRITTEN NOTICE to MAC. Customer will then be entitled to a retum of premium of no less than 90% of unearned pro rata premium less any claims paid or less the cost of repairs made on behalf of the warranty holder prior to such cancellation. MAC reserves the right, at any time, to cancel this contract by written notice to the Customer, and in those cases, Customer will be entitled to receive 100% of unearned pro rata premium, less any claims paid or less the cost of repairs made on behalf of the warranty holder. MAC may at its option, cancel this Contract if the premium is not received by the due date indicated on the face of this Contract.

11. The liability of MAC shall be limited to the performance of services, by authorized employees of MAC, in accordance with this Contract. MAC shall not, in any case, be liable for special, incidental, indirect or consequential damages arising from the breach of warranty, breach of contract, negligence or any other legal theory. Further, Customer agrees that MAC will not be responsible for loss or damage, consequential or direct, arising from the operation or failure of the equipment or its controls, moving equipment, Customer's negligence or improper usage, or matters beyond MAC's control, including, without limitation, delays in obtaining parts, obsolescence of equipment or parts, labor strikes, acts of God, water contamination, mold or mildew, oxidation, corrosion, rust or other such matters.

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