Common use of Extended Warranties Clause in Contracts

Extended Warranties. (a) Retailer will be permitted to finance on Accounts gift certificates, cash cards and stored value cards so long as Retailer (i) remains in compliance with the terms of this Agreement, and (ii) the amount of gift certificates, cash cards and stored value cards financed on Accounts during any calendar quarter remains at or below [**Confidential portion has been omitted pursuant to a request for confidential treatment and has been filed separately with the Commission] of total Net Program Sales for such quarter. ** Confidential portions have been omitted pursuant to a request for confidential treatment by Haverty Furniture Companies, Inc. pursuant to Rule 24B-2 under the Securities Exchange Act of 1934. (b) Except as set forth below in this Section 11, Retailer will not permit the sale of extended warranties or ▇▇▇▇▇▇▇ contracts, or any other future service or delivery obligation, to be charged to Accounts without Bank’s prior written consent; provided, however, Bank hereby consents, as of the Effective Date, to Retailer’s offering of extended warranties to Accountholders under an extended warranty program provided by Guardsman, a business unit of The Valspar Corporation, and underwritten by The Valspar Corporation (including any replacement thereto as contemplated below, the “Extended Warranty Program”). Retailer shall notify Bank promptly (and in advance to the extent practicable) of any material change in the Extended Warranty Program after the Effective Date, or of Retailer’s intention to select a new insurer, underwriter or other financially responsible party. Retailer will only be permitted to continue to finance extended warranties or service contracts on Accounts under the Extended Warranty Program, or to expand the Extended Warranty Program to add another insurer or underwriter (or replace the existing insurer or underwriter) if the insurer, underwriter or other financially responsible party has, (i) in the case of an insurer or underwriter, a rating of “Secure” or better, as determined by the A.M. Best rating service (or any successor rating service thereto or, if A.M. Best ceases to publish such ratings, any similar rating provided by a rating service reasonably determined by Bank), or, (ii) in the case of any other financially responsible party, a credit rating of “BBB” (as determined by Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc. (or any successor thereto or, in Bank’s discretion, any similar rating determined through a rating system reasonably determined by Bank) (each of the foregoing minimum ratings are referred to here▇▇ ▇▇ ▇▇▇ “Financial Strength Threshold”). Retailer shall be responsible for ensuring that (x) all extended warranties and service contracts financed on Accounts, and (y) the administration of such extended warranties and service contracts by the insurer, underwriter or other financially responsible party, fully comply with all applicable laws, rules and regulations. If at any time the insurer or underwriter of the Extended Warranty Program fails to satisfy the Financial Strength Threshold, Bank may notify Retailer that Bank is no longer willing to authorize, and within thirty (30) days after Bank’s written notice thereof Retailer shall cease, financing on Accounts warranties provided under such Extended Warranty Program. (c) Nothing in this Section 11 shall restrict Retailer from selling products subject to normal manufacturer’s warranties included in the standard purchase price.

Extended Warranties. (a) Retailer will be permitted to finance on Accounts gift certificates, cash cards and stored value cards so long as Retailer (i) remains in compliance with the terms of this Agreement, and (ii) the amount of gift certificates, cash cards and stored value cards financed on Accounts during any calendar quarter remains at or below [**Confidential portion has been omitted pursuant to a request for confidential treatment and has been filed separately with the Commission] of total Net Program Sales for such quarter. ** Confidential portions have been omitted pursuant to a request for confidential treatment by Haverty Furniture Companies, Inc. pursuant to Rule 24B-2 under the Securities Exchange Act of 1934. (b) Except as set forth below in this Section 11, Retailer will not permit the sale of extended warranties or ▇▇▇▇▇▇▇ service contracts, or any other future service or delivery obligation, to be charged to Accounts without Bank’s prior written consent; provided, however, Bank hereby consents, as of the Effective Date, to Retailer’s offering of extended warranties to Accountholders under an extended warranty program provided by Guardsman, a business unit of The Valspar Corporation, and underwritten by The Valspar Corporation (including any replacement thereto as contemplated below, the “Extended Warranty Program”). Retailer shall notify Bank promptly (and in advance to the extent practicable) of any material change in the Extended Warranty Program after the Effective Date, or of Retailer’s intention to select a new insurer, underwriter or other financially responsible party. Retailer will only be permitted to continue to finance extended warranties or service contracts on Accounts under the Extended Warranty Program, or to expand the Extended Warranty Program to add another insurer or underwriter (or replace the existing insurer or underwriter) if the insurer, underwriter or other financially responsible party has, (i) in the case of an insurer or underwriter, a rating of “Secure” or better, as determined by the A.M. Best rating service (or any successor rating service thereto or, if A.M. Best ceases to publish such ratings, any similar rating provided by a rating service reasonably determined by Bank), or, (ii) in the case of any other financially responsible party, a credit rating of “BBB” (as determined by Standard & Poor’s Ratings Services, a division of The McGraw▇▇▇▇▇▇-Hill ▇▇▇▇ Companies, Inc. (or any successor thereto or, in Bank’s discretion, any similar rating determined through a rating system reasonably determined by Bank) (each of the foregoing minimum ratings are referred to here▇▇ ▇▇ ▇▇▇ herein as the “Financial Strength Threshold”). Retailer shall be responsible for ensuring that (x) all extended warranties and service contracts financed on Accounts, and (y) the administration of such extended warranties and service contracts by the insurer, underwriter or other financially responsible party, fully comply with all applicable laws, rules and regulations. If at any time the insurer or underwriter of the Extended Warranty Program fails to satisfy the Financial Strength Threshold, Bank may notify Retailer that Bank is no longer willing to authorize, and within thirty (30) days after Bank’s written notice thereof Retailer shall cease, financing on Accounts warranties provided under such Extended Warranty Program. (c) Nothing in this Section 11 shall restrict Retailer from selling products subject to normal manufacturer’s warranties included in the standard purchase price.

Extended Warranties. (a) Retailer will be permitted to finance on Accounts shall not permit the sale of any gift certificates, cash gift cards and or stored value cards so long (collectively referred to herein as the “Value Cards”) (or the reloading of any such card) charged to Accounts at any time between the date that is the thirtieth (30th) consecutive day after the S&P Debt Rating has been at or below BB and the date that is the thirtieth (30th) consecutive day after the S&P Debt Rating has been at or above BB+. All purchases of Value Cards financed on Accounts must be subject to the Base Rate. Retailer shall not permit the remaining value of any Value Cards to be redeemed for cash unless Retailer provides advance written notice to Bank of such cash redemption policy. Within thirty (30) days after receiving such notice, Bank may elect, upon written notice to Retailer, to terminate Retailer’s ability to permit the sale of Value Cards to be charged to Accounts. Retailer shall not permit Value Cards to be used for payment on the Accounts. Except for the extended warranty plan provided by Guardsman, a division of The Valspar Corporation, as such plan exists on the date hereof, Retailer shall not permit the sale of any extended warranties or service contracts to be charged to Accounts unless (i) remains in compliance with the terms Retailer’s obligations thereunder are fully underwritten or guaranteed by one or more companies which may not be an affiliate of this Agreement, Retailer and which are otherwise reasonably acceptable to Bank; and (ii) Bank shall have previously approved the amount financing of gift certificates, cash cards and stored value cards financed on Accounts during any calendar quarter remains at or below [**Confidential portion has been omitted pursuant to a request for confidential treatment and has been filed separately with the Commission] of total Net Program Sales for such quarter. ** Confidential portions have been omitted pursuant to a request for confidential treatment by Haverty Furniture Companies, Inc. pursuant to Rule 24B-2 under the Securities Exchange Act of 1934items in writing (which approval may be withheld in Bank’s sole discretion). (b) Except Bank’s consent to the foregoing warranty or service contract program is subject to ongoing review by Bank and may be withdrawn if Bank determines at any time, in its sole discretion, that the underwriter’s financial condition or the terms and conditions of such warranties or contracts create or may create a financial risk of loss to Bank. Bank shall have the right to review periodically any such warranty or service contract program or provider to assess its financial condition (and Retailer shall reasonably cooperate with such audits as set forth below in this Section 11appropriate). Notwithstanding the foregoing to the contrary, Retailer will not permit the sale of extended warranties provided by Bank or ▇▇▇▇▇▇▇ contracts, or any other future service or delivery obligation, to an affiliate of Bank may be charged to Accounts without Bank’s prior written consent; provided, however, Bank hereby consents, as of the Effective Date, to Retailer’s offering of extended warranties to Accountholders under an extended warranty program provided by Guardsman, a business unit of The Valspar Corporation, and underwritten by The Valspar Corporation (including any replacement thereto as contemplated below, the “Extended Warranty Program”). Retailer shall notify Bank promptly (and in advance to the extent practicable) of any material change in the Extended Warranty Program after the Effective Date, or of Retailer’s intention to select a new insurer, underwriter or other financially responsible party. Retailer will only be permitted to continue to finance extended warranties or service contracts on Accounts under the Extended Warranty Program, or to expand the Extended Warranty Program to add another insurer or underwriter (or replace the existing insurer or underwriter) if the insurer, underwriter or other financially responsible party has, (i) in the case of an insurer or underwriter, a rating of “Secure” or better, as determined by the A.M. Best rating service (or any successor rating service thereto or, if A.M. Best ceases to publish such ratings, any similar rating provided by a rating service reasonably determined by Bank), or, (ii) in the case of any other financially responsible party, a credit rating of “BBB” (as determined by Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc. (or any successor thereto or, in Bank’s discretion, any similar rating determined through a rating system reasonably determined by Bank) (each of the foregoing minimum ratings are referred to here▇▇ ▇▇ ▇▇▇ “Financial Strength Threshold”)Accounts. Retailer shall be responsible for ensuring that (x) all any Value Cards and, even where approved by Bank, any extended warranties and or service contracts financed on Accounts, and (y) the administration of such extended warranties and service contracts by the insurer, underwriter or other financially responsible partycontracts, fully comply with all applicable laws, rules and regulationsApplicable Laws. If at any time the insurer or underwriter of the Extended Warranty Program fails to satisfy the Financial Strength Threshold, Bank may notify Retailer that Bank is no longer willing to authorize, and within thirty (30) days after Bank’s written notice thereof Retailer shall cease, financing on Accounts warranties provided under such Extended Warranty Program. (c) Nothing in this Section 11 6.10 shall restrict Retailer from selling products subject to normal manufacturer’s warranties included in as long as no additional seller’s warranties are provided. In addition to Bank’s chargeback rights hereunder and Retailer’s indemnification obligations under Section 12.1, Retailer shall indemnify Bank for any loss (including the standard purchase pricecosts of attorney’s fees and disbursements) relating to any claim or claims for failure of Retailer or of a third party with or through which Retailer has contracted, if any, to provide the warranty or service offered or sold by or through Retailer, even if such warranty or services were approved by Bank.

Extended Warranties. (a) Retailer will be permitted to TDFS agrees that Merchant may finance on Accounts gift certificatesextended warranties, cash cards and stored value cards so long as Retailer (i) remains in compliance with the terms of this Agreement, and (ii) the amount of gift certificates, cash cards and stored value cards financed on Accounts during any calendar quarter remains at or below [**Confidential portion has been omitted pursuant to a request for confidential treatment and has been filed separately with the Commission] of total Net Program Sales for such quarter. ** Confidential portions have been omitted pursuant to a request for confidential treatment by Haverty Furniture Companies, Inc. pursuant to Rule 24B-2 under the Securities Exchange Act of 1934. (b) Except as set forth below in this Section 11, Retailer will not permit the sale of extended warranties or ▇▇▇▇▇▇▇ service contracts, or similar arrangements (“Extended Warranties”) that are self-administered on Cards without the prior written consent of TDFS. However, in the event that Merchant elects to offer Extended Warranties provided by third parties, Merchant acknowledges that it may not finance such Extended Warranties on Cards without the prior written consent of TDFS. For sake of clarification, nothing in this section prohibits Merchant from offering any standard manufacturer’s warranty that is included with the purchase price of its products. In the event that TDFS consents to an Extended Warranty, Merchant will be responsible for ensuring that all aspects of the Extended Warranty comply with Applicable Law. In addition, TDFS will have the right to withdraw its approval, and prohibit the use of any Extended Warranty, if (A) the warranty obligations cease to be fully insured by a company acceptable to TDFS; (B) the financial condition of the entity insuring the obligations, or providing the services, deteriorates; or (C) TDFS reasonably determines that the continued financing of Extended Warranties presents an enhanced risk of losses. In addition to Extended Warranties, Merchant agrees not to finance any other future service or delivery obligation, to be charged to Accounts on Cards without Bank’s the prior written consentconsent of TDFS. During the Term of this Agreement, and for a period of twenty-four (24) months after termination of this Agreement, Merchant agrees to cause an insurance company, that is reasonable acceptable to TDFS, to name TDFS as a third party beneficiary in a contractual liability insurance policy, in a form reasonably acceptable to TDFS, for no less than ten million US Dollars (US$10,000,000) of coverage. The contractual liability insurance policy must (i) provide TDFS, as a third party beneficiary, rights to enforce the policy; provided(ii) require the insurer to notify TDFS if Merchant has failed to renew the insurance policy at least 45 days before the expiration of the insurance policy and allow TDFS to pay for a renewal term of the policy before it expires, howeverwithout any lapse in coverage. Merchant shall deliver to TDFS, Bank hereby consentswithin twenty-one (21) days after the Effective Date and at the end of each Program Year, a certificate of insurance on which TDFS is named as a third party beneficiary with respect to such insurance policy. TDFS acknowledges that ▇▇▇▇ Indemnity Company and the contractual liability insurance policy as of the Effective Date, Date of such insurance company are acceptable. TDFS may not require Merchant to Retailer’s offering of extended warranties to Accountholders under an extended warranty program provided by Guardsman, a business unit of The Valspar Corporation, and underwritten by The Valspar Corporation use another insurance company unless (including any replacement thereto as contemplated below, the “Extended Warranty Program”). Retailer shall notify Bank promptly (and in advance to the extent practicablea) of any material change in the Extended Warranty Program after the Effective Date, or of Retailer’s intention to select a new insurer, underwriter or other financially responsible party. Retailer will only be permitted to continue to finance extended warranties or service contracts on Accounts under the Extended Warranty Program, or to expand the Extended Warranty Program to add another insurer or underwriter (or replace the existing insurer or underwriter) if the insurer, underwriter or other financially responsible party has, (i) in the case of an insurer or underwriter, a rating of “Secure” or better, as determined by the A.M. Best rating service (or any successor rating service thereto or, if A.M. Best ceases to publish such ratings, any similar rating provided by a rating service reasonably determined by Bank), or, (ii) in the case of any other financially responsible party, a credit rating of “BBB” (as determined by Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc. (or any successor thereto or, in Bank’s discretion, any similar rating determined through a rating system reasonably determined by Bank) (each of the foregoing minimum ratings are referred to here▇▇ ▇▇ ▇▇▇ “Financial Strength Threshold”). Retailer shall be responsible for ensuring that Indemnity Company no longer provides coverage substantially equivalent to such insurance policy, or (xb) all extended warranties and service contracts financed on Accounts, and (y) the administration of such extended warranties and service contracts by the insurer, underwriter or other financially responsible party, fully comply with all applicable laws, rules and regulations. If at any time the insurer or underwriter of the Extended Warranty Program ▇▇▇▇ Indemnity Company fails to satisfy meet the Financial Strength Thresholdcapital reserves, Bank may notify Retailer that Bank is no longer willing to authorizeor any other financial requirements, and within thirty (30) days after Bank’s written notice thereof Retailer shall cease, financing on Accounts warranties provided under such Extended Warranty Programimposed by any jurisdiction in which it conducts business. (c) Nothing in this Section 11 shall restrict Retailer from selling products subject to normal manufacturer’s warranties included in the standard purchase price.