DATE: July 8,2002

TO: Dealers, General Managers and F&I Managers

FROM: Laura K. Reardon, CPS

RE: GE and Service Payment Plan new 18-month Payment Plan

We are pleased to announce that GE Auto Warranty Services and Service Payment Plan, Inc. (SPP) have introduced an 18-month payment plan for GE Auto Warranty Services Vehicle Service Contracts (VSCs). You will have the option to offer SPP customers either 12 or 18 monthly payments. Issuing dealerships that have previously sold SPP will be receiving letters from GE informing you of this change.

1. The 12-month payment plan:
Available for GE Auto Warranty Services VSCs with a minimum remaining term of 24 months and 24,000 miles.

The SPP Fee will be $90.00 if the amount financed is less than $2,000.00. In the event the VSC is cancelled during the payment term, the SPP Fee will remain $50.00.

The SPP Fee will be $140.00 if the amount financed is $2,000.00 or greater. In the event the VSC is cancelled during the payment term, the SPP fee will be $100.00.

2. The 18-month payment plan:

Available for all VSCs with a minimum remaining term of 36 months and 36,000 miles.

The SPP Fee will be $140.00 if the amount financed is less than $2,000.00. In the event the VSC is cancelled during the payment term, the SPP Fee will be $100.00.

The SPP Fee will be $225.00 if the amount financed is $2,000.00 or greater. In the event the VSC is cancelled during the payment term, the SPP fee will be $125.00.

All the other terms of the "Supplement to Dealer Agreement", as amended from time to time, will remain substantially the same. I will be forwarding out the new Retail Installment Contracts for the 12 or 18-month payment option.

We appreciate your business and if you have any questions, please feel free to call me at
(813) 223.0085 x21.

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