Common use of SERVICE CONTRACT PRICING Clause in Contracts

SERVICE CONTRACT PRICING. Prior to the Effective Date, the parties will determine a pricing schedule for extended service contracts which will be charged to each Xxxxxxxx Group dealership. The pricing schedule, determined for each product line, will be the amount determined by the following formula: (A x B) + (C x D) where: A = the percentage of all service contracts written by the Xxxxxxxx Group in 1998 with Xxxx & Associates. B = the price charged by Xxxx & Associates for that product line less the inception rebate paid by Xxxx & Associates (in 1998, this inception rebate was paid to Diamond Financial and was $15.00 on new vehicles and $40.00 on used vehicles). C = the percentage of all service contracts written by the Xxxxxxxx Group in 1998 with Western National. D = the price charged by Western National for that product line less the inception rebate paid by Western National (in 1998, this inception rebate was paid to Diamond Financial and was $50.00 on both new and used vehicles).