INSPECTION CONTRACT (THIS IS A CONTRACT - PLEASE READ IT CAREFULLY) Inspection No: Date: Time: Inspection Address (Property): City: State: Zip: Client Name: Address: E-Mail: City: State: Zip: Phone:

This Inspection Contract herein referred to as the “Contract”, between Your Company Name, a California corporation, herein referred to as the “Company” and Client, whose name is/are, indicated above and is effective as of the date it has been last executed by the parties hereto.

In consideration of the Inspection Fee (defined herein) and for other good and valuable consideration, the adequacy and receipt of which are acknowledged, the parties hereto hereby agree as follows:

INSPECTION PARAMETERS The Company will make a limited visual inspection of the prominently visible and accessible areas of the Property and Client shall provide the Company access to the Property. The inspection is a reasonable effort to assess the DURABILITY and SERVICEABILITY of the components of the Property in its present state as these items significantly affect the value, desirability, habitability, or safety of the Property, subject to the limitations in this Contract. "Significantly" as used herein means a condition that is "important or consequential"- a deteriorated condition for which the expense to repair would exceed $500.00. The Company’s analysis is limited to our written report. The report does not evaluate style, aesthetics or location of the Property. The Company will attempt to be reasonably accurate and thorough by pointing out both the strong and weak points of the Property. Ownership brings with it the certainty that failures and repairs will occur. The Company will not be able to predict such occurrences. Operable conditions of mechanical, electrical, plumbing devices or other items are surmised only from the visible evidence. No maintenance services, removal of cowlings or destructive discovery will be performed by the Company. If the Company locates evidence of an item that is not serviceable or creates doubt for our inspector, we will suggest the Client contact a licensed tradesperson to investigate further or make repairs. This could require an additional fee to the appropriate specialist and may require, among other things, servicing equipment and/or destructive discovery. The Company’s inspection is not conducted to detect every problem or condition that may exist in the building. Cosmetic deficiencies are to be considered obvious to the parties and may not be included in the inspection report. It is understood that if such a listing is desired, that service is beyond the parameters of a regular inspection and requires an additional fee in addition to a separate written Contract Client is encouraged to be at the Property at the time of the inspection or arrive near the completion of the Company’s inspection, so the inspector can review the inspection report with Client in person. If an additional visit to the Property is required, it will be billed at the Company’s hourly rate. The inspection will be performed in accordance with the Standards of Practice of the American Institute of Inspectors®, a copy of which can be viewed at www.inspection.org and the terms of which are incorporated in this Contract. For equipment and components which are not to be operated or tested, refer to the Standards of Practice. Buyers are always at risk. THE VISUAL INSPECTION MAY ILLUMINATE SOME AREAS OF RISK, BUT CANNOT ELIMINATE THEM. PARAMETERS OF THE INSPECTION ARE LIMITED TO CONDITIONS EXISTING ON THE DAY OF THE INSPECTION AND THE COMPANY IS NOT LIABLE FOR NON-VISIBLE, OBSCURE OR CONCEALED FAULTS. Claims for concealed conditions, whether intentional or unintentional, must be made against the seller of the property. The most conscientious visual inspection is not capable of determining all conditions that actually exist within a facility. The Company makes a random evaluation of some components and cannot move furniture, etc., to obtain access. Some items which the Company’s inspection cannot address include, but are not limited to:

1. Improperly made wiring connections; Random outlets or switches that do not function 2. Concealed cracks in fireplaces, chimneys, flue liners or combustion chambers 3. Leaks that occur intermittently or only under unusual conditions 4. The inner-workings of mechanical items including combustion chambers 5. The adequacy or capacity and air distribution of heating and cooling systems 6. Dual pane window thermo-seal failure unless obvious signs of clouding, staining or moisture is present at the time of Page 1 of 4 inspection 7. Underground or concealed systems or components 8. Yard and garden sprinkler systems 9. The operation of safety/security bars on doors or windows 10. Security and Fire Systems

Although there are many items that the Company’s inspector might detect if given enough time, the evaluation is also limited by a reasonable investment of the inspector's time for the fee paid. Hazardous materials are beyond the scope of the Company’s inspection and the inspector is not an environmental expert. If asbestos, electro-magnetic fields, fiberglass, formaldehyde, hazardous wastes, lead, radon, soil contamination, molds and mildew or the quality of drinking water and waste disposal are a concern, please contact an appropriate expert. Although the Company may note material deterioration or insect infestation, Client should obtain a separate "Wood Destroying Pest and Organism Report" for those occurrences that affect the structure. Dual pane windows that do not show obvious evidence of moisture between panes at the time of inspection are beyond the scope of the inspection.

COMPLIANCE CODE The inspection is one of "serviceability", not code compliance. By necessity, the inspection deals with existing structures, which may have older types of wiring, plumbing, heating, etc. As an illustration, today most local building departments require ground fault interrupter circuits, insulation in the exterior walls, anchor bolts and many other items which have not always been included in the building codes. Facilities without these installations can be "serviceable", even though they do not meet current code requirements (or may not even be desirable for modern life styles). The Company does not warrant that building code requirements were complied with at the time of construction. WARRANTIES Each party warrants that (a) it has the power to enter into and perform this Contract and this Contract’s execution has been duly authorized by all necessary corporate action, (b) this Contract constitutes a valid and binding obligation on each party, enforceable in accordance with its terms, (c) no consent or approval of any other person or governmental authority is necessary for this Contract to be effective and (d) neither the execution or delivery of this Contract nor the consummation of the transactions contemplated by it would constitute a default or violation of the parties’ articles of incorporation, bylaws or any license, lease, franchise, mortgage, instrument or other Contract. THERE ARE NO WARRANTIES THAT EXTEND BEYOND THIS CONTRACT. THE COMPANY DISCLAIMS ANY WARRANTY OF ANY OTHER KIND, INCLUDING ANY WARRANTY THAT ANY ITEMS AND SYSTEMS INSPECTED ARE MERCHANTABLE OR FIT FOR A PARTICULAR PURPOSE. YOU SHOULD NOTE The conditions stated in the report are not repair requirements or even suggestions. Some items in the report are, by definition, subjective and the opinion only of The Company stating the relative conditions encountered. The Company will neither make repair suggestions nor comment on the quality of materials and workmanship. Decisions regarding maintenance or repairs shall be made by Client in consultation with an appropriate professional of Client’s choice.

The inspector is not required to perform any of the following as part of a real estate inspection:

Obtain or review information from any third-parties including, but not limited to: government agencies (such as permits), component or system manufactures (INCLUDING PRODUCT DEFECTS, RECALLS OR SIMILAR NOTICES). DISPUTE RESOLUTION If a component or system of the home inspected by the Company is reported as requiring replacement or repair by a second party after the inspection and Client questions the accuracy or adequacy of the report, Client will inform the Company in writing by certified mail, within ten business days of discovery and allow the Company to re-inspect to the extent necessary to investigate the claim before repairs or replacements are performed. If the Client repairs or replaces the item before the Company has had the opportunity to re-inspect it, the Company is absolved of all responsibility for the cost, repair or replacement of that component or system. If emergency repairs are performed for health, safety or to prevent further damage or destruction prior to re-inspection, upon providing credible documentation of event and repairs Client shall be excused from the re-inspection clause, “If the client repairs or replaces the item before the Company has had the opportunity to re-inspect it, the Company is absolved of all responsibility for the cost, repair or replacement of that component or system.” Each party to this Contract will make its best effort to provide in any contract related to this Contract that the parties to the related contract shall participate in the dispute resolution procedure set forth in this Contract. Each party to this Contract shall furnish proof to all other parties to this Contract of the related Contract in a timely manner. Any party failing to bind third parties to the dispute resolution procedure established by this Contract shall indemnify, defend and hold harmless the other party against all liability, claims, costs, loss, damage, settlement and expense (including reasonable attorney fees, accounting fees, expert witness Page 2 of 4 fees, costs, and expenses) incurred because of such failure. Before invoking the dispute resolution mechanism set forth below, a party shall serve on the other party to the Contract (a) a written notice of the claim, by certified mail, specifying the exact amount claimed and the provision of the Contract or other authority for the claim; and (b) a copy of all supporting documents. Within ten business days after service, the responding party shall serve on the serving party (a) a written response, setting out its position and specifying the contract or other provisions relied on; and (b) a copy of all supporting documents. Within fifteen business days after service of the response, the parties shall meet to discuss resolution of the claim. The written claim notice and response and the documents produced, but not the discussion, shall be admissible in any subsequent proceeding. After negotiation, either party may invoke the dispute resolution procedure set forth below. Next, before invoking the binding dispute mechanism set forth below, the parties shall first participate in non-binding mediation of any dispute arising under this Contract. The initiating party shall submit to the responding party a written list of five prospective mediators with relevant experience and working for one or more mediation firms. The responding party shall choose one of such prospective mediators as the actual mediator and shall provide written notice to the initiating party of its choice within ten days of service of the written list. The mediation shall be held at the Property. The cost of mediation shall be borne by the parties equally. At least ten business days before the date of the mediation, each side shall provide the mediator with a statement of its position and copies of all supporting documents. Each party shall send to mediation a person who has authority to bind the party. If a party has participated in the mediation and is dissatisfied with the outcome, that party may invoke the binding dispute resolution provisions set forth below. Next, if the dispute has not been resolved, the parties shall submit such dispute to final and binding arbitration. The party demanding arbitration shall submit a written notice to the other party, proposing the name of an arbitrator. The responding party shall have ten business days in which to respond to this notice in a written answer. If the response is not timely made, or if the responding party agrees with the person proposed as the arbitrator, then the person named by the demanding party shall serve as the arbitrator. If the responding party submits a written answer rejecting the proposed arbitrator then, unless the parties agree on an arbitrator, on the request of either party, the American Arbitration Association shall select an arbitrator. The arbitration shall take place in Sacramento, California, at a time and place selected by the arbitrator. The arbitration shall be conducted in accordance with the then-existing rules of the American Arbitration Association. The parties shall have the right to discovery in accordance with YOUR STATE Code of Civil Procedure section 1283.05. The sole and exclusive standards against which the inspection shall be judged will be the Standards of Practice as published by the American Institute of Inspectors. Exceptions to mandatory arbitration include the filing or enforcement of a mechanic's lien and the filing of judicial action to enable the recording of a notice of pending action, for attachment, receivership, injunction or other provisional remedies. Any such action shall not constitute a waiver of the right to arbitrate under this provision. Property or equipment in dispute must be made accessible for re-inspection and/or arbitration. Arbitration shall occur at the property in question. By agreement herein, no arbitration award in favor of the client shall exceed the lower amount of three times the inspection fee or $1,500. Any arbitration award in favor of the inspector shall include payment of fees at the hourly rate below for time invested by the inspector, his/her representatives, staff or principals. Before arbitration commences, each party shall pay the arbitrator half of the expected cost of the arbitration. At the conclusion of arbitration, the arbitrator may award the prevailing party some or all of the arbitration costs. Judgment on the award rendered by such arbitrator may be entered in any court having jurisdiction.

SUBSTITUTE DISCLOSURE The inspection performed by the Company is supplemental to any real estate transfer or Seller's Disclosure Statement and shall not be used as a substitute for such Disclosure Statements.

FEES Returned checks will be subject to a $25.00 service fee. Fees collected in Escrow will include a $50.00 service charge. The fee for this inspection is (the “Inspection Fee”): $ Additional Items: Total: $ Due and payable: [ ] At the time of inspection. [ ] Invoiced, payable within 30 days [ ] At Escrow Company: ______Address: ______Phone:______Escrow #: ______Officer: ______Fax:______The Inspection Fee is for the inspection performed on the Property. Re-inspections, research, supplemental inspections or expanded reports, (including disputed issues requiring investment of time by our staff) will be charged at the rate of $100.00 per hour.

NOTE: The Company assumes no liability for and shall not be liable for mistakes, errors or omissions in judgment of any of its Page 3 of 4 representatives or any property damage beyond the cost of the inspection report. In no event will the Company be liable for loss of profits or any special, incidental or consequential damages, however caused, even if Client has been advised of the possibility of damages. The inspection performed in connection with this Contract does not include a Structural Pest and Dry Rot Inspection. GENERAL PROVISIONS Despite any statute to the contrary, any claim arising from or relating to this Contract (whether contract, tort or both) shall be brought within one year after the cause of action accrues.

The headings in this Contract are included for convenience only and shall neither affect the construction or interpretation of any provision in this Contract nor affect any of the rights or obligations of the parties to this Contract.

This Contract may be supplemented, amended or modified only by the mutual agreement of the parties. No supplement, amendment or modification of this Contract shall be binding unless it is in writing and signed by all parties.

This Contract and all other agreements, exhibits and schedules referred to in this Contract constitute(s) the final, complete and exclusive statement of the terms of the Contract between the parties pertaining to the subject matter of this Contract and supersede all prior and contemporaneous understandings or agreements of the parties. No party has been induced to enter into this Contract by, nor is any party relying on, any representation or warranty outside those expressly set forth in this Contract.

If a court or an arbitrator of competent jurisdiction holds any provision of this Contract to be illegal, unenforceable or invalid in whole or in part for any reason, the validity or enforceability of the remaining provisions or portions of them, will not be affected.

Each party has had the opportunity to participate fully in the review and revision of this Contract and has had the opportunity for counsel of its choice to do so. Any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in interpreting this Contract. Each party signing this contract represents and warrants that he or she is duly authorized and has legal capacity to execute and deliver this contract. Each party represents and warrants to the other that the execution and delivery of the contract and the performance of such party’s obligations hereunder have been duly authorized and that the Contract is a valid and legal agreement binding and enforceable in accordance with its terms.

This Contract and any dispute arising from the relationship between the parties to this Contract shall be governed by YOUR STATE law.

Agent for Buyer Seller Other: ______

Date: ______Signature: ______Print Name: ______

YOUR COMPANY NAME

Date: ______/ ______YOUR NAME & TITLE

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