W.A. Stone Termite's Alternatives to Fumigation 1539 Sterling Ct., Escondido, CA Tel Fax Registration #: PR3032

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1 W.A. Stone Termite's Alternatives to Fumigation 1539 Sterling Ct., Escondido, CA Tel Fax Registration #: PR of 7 A LICENSED PEST CONTROL OPERATOR IS AN EXPERT IN HIS/HER FIELD. QUESTIONS RELATIVE TO THIS REPORT SHOULD BE REFERRED TO HIM/HER. Report #: Ordered by: Property Owner and/or Party of Interest: Report sent to: LAKSYA INC. LAURIE HEATHE Richard Johnson 1819 Edgemont St San Diego, CA LAKSYA INC. LAURIE HEATHE BRIAN STEPHENS S ON FILE COMPLETE REPORT LIMITED REPORT SUPPLEMENTAL REPORT REINSPECTION REPORT CORRECTED REPORT General Description: 1 STORY, SINGLE FAMILY RESIDENCE, WOOD FRAMED, STUCCO EXTERIOR, COMPOSITION SHINGLE ROOF, DETACHED GARAGE WITH HEAVY STORAGE, W/W FLOOR COVERINGS AND HEAVY STORAGE/DEBRIS INTERIOR, FURNISHED AND OCCUPIED. Inspection Tag Posted: Attic Other Tags Posted: NONE CURRENT VISIBLE An inspection has been made of the structure(s) shown on the diagram in accordance with the Structural Pest Control Act. Detached porches, detached steps, detached decks and any other structures not on the diagram were not inspected. Subterranean Termites Drywood Termites Fungus/Dryrot Other Findings Further Inspection If any of the above3 boxes are checked, it indicates that there were visible problems in accessible areas. Read the report for details on checked items. Key: 1 = Subterranean Termites 2 = Drywood Termites 3 = Fungus/Dryrot 4 = Other Findings 5 = Unknown Further Inspection Inspected By: Mark Tammariello License No.: OPR8128 Signature: You are entitled to obtain copies of all reports and completion notices on this property reported to the Structural Pest Control Board during the preceding two years. To obtain copies contact: Structural Pest Control Board, 2005 Evergreen Street, Suite 1500, Sacramento, CA, NOTE: Questions or problems concerning the above report should be directed to the manager of the company. Unresolved questions or problems with services performed may be directed to the Structural Pest Control Board at (916) , (800) or 43M-41 (REV. 10/01)

2 General Comments 2 of 7 WOOD DESTROYING PESTS AND ORGANISMS INSPECTION REPORT This page contains important information regarding this inspection. You should include this page when reviewing the results of the inspection as noted in the attached Wood Destroying Pests and Organisms Inspection report. A. Some structures do not comply with building code requirements or may have structural, plumbing, electrical, mechanical, heating, air conditioning or other defects that do not pertain to wood within the scope of the license of either this company or it s employees. As is common with older structures, damage may be present but may not be visible or may not require replacement (no structural weakness). Parties of interest are advised to consult with professionals in the building trade. W.A. Stone Termite s Alternatives to Fumigations makes no representation for non-structural, cosmetic or hidden damages. B. The Structural Pest Control Act requires inspection of only those areas which are visible and accessible at the time of the inspection. Some areas are recognized by the industry as inaccessible and/or for other reasons have not been inspected. These areas may include but are not limited to: interior void of hollow walls, spaces between a floor or porch deck and the ceiling below; inaccessible and/or insulated attics or portions thereof; attics with less than 18 clear crawl space, areas concealed by carpeting, appliances, furniture or cabinets; areas where there is no access without defacing or tearing out lumber, masonry or finished work, areas beneath floor coverings, areas around eaves that would require the use of an extension ladder, sub flooring and plumbing areas where the substructure is insulated. C. The exterior inspection of a structure is completed from a ground level view only. Unless otherwise noted in this report, we did not inspect fences, sheds, dog houses, playhouses, detached patios, detached wood decks, retaining walls or wood walkways, outbuilding s, trellis or other detached areas. Infestations or infections may be active in those areas without visible or accessible evidence. Carpets, furniture and appliances are not moved and windows are not opened during a routine inspection. Second story stall showers are visually inspected but NOT WATER TESTED unless there is outward evidence of leakage at the ceiling below. Sunken or below grade showers or tubs are not tested due to the type of construction. If parties of interest require information about areas that were not inspected, a further inspection may be requested and will be completed at an additional cost. W.A. Stone Termite s Alternatives to Fumigation does not certify nor guarantee against leakage, such as (but not limited to) plumbing, appliances, walls, doors, windows, any type of seepage, roof or deck coverings. D. This company renders no guarantee whatsoever, against infection, infestation or any other adverse condition which may exist in such areas or may become visibly evident in such areas after the inspection date. In the event that damage or infestation noted in this report is later found to extend further than visibly noted, an additional bid may be given. E. If requested, a reinspection of the structure will be performed. Such requests must be within four (4) months of the date of this inspection. The reinspection fee shall not exceed the cost of the original inspection fee. If our firm is requested to reinspect work completed by others, there shall be a $75.00 for each return trip to reinspect work completed by others. F. If you choose to contract directly with another company, this firm will not in any way be responsible for an act or omission in the performance of work that you directly contract with another company. G. If person s other than this firm complete repairs, it is recommended that any lender be consulted regarding guarantee requirements. W.A. Stone Termite WILL NOT make any statements as to quality of workmanship nor will we guarantee work which is completed by someone other than our company. IF AN ESCROW IS INVOLVED AND OUR FIRM IS REQUESTED TO REINSPECT WORK COMPLETED BY OTHERS, OUR FIRM WILL ISSUE A BUYER S DISCLOSURE NOTICE STATING WHICH ITEMS WERE NOT COMPLETED BY OUR FIRM. It is suggested that while an area is opened for repairs, our firm be contacted to inspect the adjacent wood members. CONSUMER ADVISORY: THIS WOOD DESTROYING PESTS & ORGANISM REPORT DOES NOT INCLUDE MOLD OR ANY MOLD LIKE CONDITIONS. NO REFERENCE WILL BE MADE TO MOLD OR MOLD LIKE CONDITIONS. MOLD IS NOT KNOWN AS A WOOD DESTROYING ORGANISM AND IS OUTSIDE THE SCOPE OF THIS REPORT AS DEFINED BY THE STRUCTURAL PEST CONTROL ACT. IF YOU WISH FOR THIS PROPERTY TO BE INSPECTED FOR MOLD OR MOLD LIKE CONDITIONS, YOU ARE ADVISED TO CONTACT AN INDUSTRIAL HYGIENIST. SECTION 1: Area(s) where there is evidence of active infestation, infection or conditions that have resulted in or from infestation or infection SECTION 2: Area(s) where there are conditions that are likely to lead to infestation or infection but where no visible evidence of such was found. SECTION 3: FURTHER INSPECTION RECOMMENDED: Area(s) that are defined with a recommendation to inspect area(s) which during the original inspection were not accessible to the inspector. These items cannot be defined as Section 1 or Section 2.

3 3 of 7 WOOD DESTROYING PESTS AND ORGANISMS INSPECTION REPORT WHAT IS A WOOD DESTROYING PEST AND ORGANISM INSPECTION REPORT? READ THIS DOCUMENT. IT EXPLAINS THE SCOPE AND LIMITATIONS OF A STRUCTURAL PEST CONTROL INSPECTION AND A WOOD DESTROYING PEST AND ORGANISM INSPECTION REPORT. Items in this report are designed to eliminate damage as a result of wood destroying pests and organisms and any adverse conditions which may lead to the same. This inspection is not designed to bring the dwelling into existing local code compliance. Any additional information regarding same will have to be obtained from the local building department. Any additional required work is subject to a supplemental report and additional cost. Thank you for selecting W.A. Stone Termite & Pest Control, Inc. to perform a structural pest control inspection on your property. Our inspector has determined that your property would benefit from the safe applications of chemical s commonly used for structural pest control. In accordance with the laws and regulations of the State of California, we are required to provide you and any occupants with the following information prior to any application of chemicals at this property. Please take a few moments to read and become familiar with the content. State law requires that you be given the following information: CAUTION--PESTICIDES ARE TOXIC CHEMICALS. Structural Pest control Operators are licensed and regulated by the Structural Pest Control Board, and apply pesticides which are registered and approved for use by the California Department of Food and Agriculture and the United States Environmental Protection Agency. Registration is granted when the state finds that based on scientific evidence, there are no appreciable risks weighed by the benefits. The degree of risks depends on the degree of exposure, so exposure should be minimized. If within 24 hours following pesticide application, you experience symptoms similar to common seasonal illness comparable to the flu, contact your physician or poison control center and your pest control operator immediately. For further information, contact any of the following: W.A. STONE TERMITE & PEST CONTROL (800) San Diego County Health Department (619) San Diego Poison Control (800) San Diego County Agricultural Comissioner (858) Structural Pest Control Board (916) The chemical(s) which may be used on your property TIM-BOR--Disodium octaborate tetrahydrate TERMITIFOAM--Foaming agent; Sodium Lauryl Sulfate/Disodium Laureth 3 Sulfosuccinate, Coconut Fatty Acid, Monoethanolamide, ammonium Salt of ethoxylated and Sulfated C8-10 alcohols 36% Inert Ingredients 64% TERMIDOR SC--Fipronil: 5-amino-1(2,6-dichloro-4(trif PREMISE 75--Imidaclorprid IN THE CASE OF FUMIGATION OF THE ENTIRE STRUCTURE: Vikane (Sulfuryl Fluoride) with the warning agent CHLOROPICRIN (tear gas). Vikane is a lethal gas. NOTICE TO OWNER Under the California Mechanic s Lien Law, any Structural Pest Control Operator has a right to enforce a claim against your property. This means that after a court hearing, your property could be sold by a court officer and the proceeds of the sale used to satisfy the indebtedness. This can happen even if you have paid your contractor in full if the subcontractor, laborers or suppliers remain unpaid. To preserve their right to file a claim or lien against your property, certain claimants such as subcontractors or material suppliers are required to provide you with a document entitled Preliminary Notice. General contractor s and laborers for wages do not have to provide this notice. A Preliminary Notice is not a lien against your property. Its purpose is to notify you of persons who may have a right to file a lien against your property if they are not paid in full. NOTES, COMMENTS: The exterior surface of the roof was not inspected. If you want the water tightness of the roof determined, you should contact a roofing contractor who is licensed by the Contractor s State License Board. NOTICE: The Structural Pest Control Board encourages competitive business practices among registered companies. Reports on this structure prepared by various registered companies should list the same findings (i.e. termite infestations, termite damage, fungus damage, etc). However, recommendations to correct these findings may vary from company to company. You have the right to seek a second opinion from another company. THE CHARGE FOR SERVICE THAT THIS COMPANY MAY SUBCONTRACT TO ANOTHER REGISTERED COMPANY MAY INCLUDE THE COMPANY'S CHARGES FOR ARRANGING AND ADMINISTERING SUCH SERVICES THAT ARE IN ADDITION TO THE DIRECT COSTS ASSOCIATED WITH PAYING THE SUBCONTRACTOR. YOU MAY ACCEPT THE BID SUBMITTED BY W.A. STONE TERMITE OR YOU MAY CONTRACT DIRECTLY WITH ANOTHER REGISTERED COMPANY LICENSED TO PERFORM

4 4 of 7 THE RECOMMENDED WORK. IF YOU CHOOSE TO CONTRACT DIRECTLY WITH ANOTHER REGISTERED COMPANY, W.A. STONE TERMITE & PEST CONTROL, INC. WILL NOT IN ANY WAY BE RESPONSIBLE FOR ANY ACT OR OMISSION IN THE PERFORMANCE OF WORK THAT YOU DIRECTLY CONTRACT WITH ANOTHER TO PERFORM. YOU MAY CONTACT OUR OFFICE FOR INFORMATION (NAME, TELEPHONE NUMBER, LICENSE NUMBER, ETC.) ON ANY COMPANY WE MAY SUBCONTRACT WITH. IMPORTANT NOTICE - DUE TO RECENT EPA AND HUD REQUIREMENTS, IF YOUR STRUCTURE WAS BUILT BEFORE 1978 YOU ARE REQUIRED TO NOTIFY THIS OFFICE ( ). IN THE EVENT COMPONANTS OF THE STRUCTURE REQUIRE REPLACEMENT, LEAD RENOVATION PROTOCOL WILL/MAY BE NECESSARY. IMPORTANT NOTICE; As is common with older structures, damage may be present and not appear to require repair at this time. Parties of interest are advised to contact a licensed building professional to inspect the property for non-wood destroying issues (if any). Non-structural or cosmetic damages which are void of infection or infestation may not appear in this report.in the event other inspection companies offer opinion on the need for further repairs or make recommendation for repairs not included in this report, these additional repairs will be estimated for approval and completed at an additional fee. IMPORTANT NOTICE- PROPERTIES FOR SALE OR IN TRANSFER It is suggested that recommended corrections be corrected after all discovery has been completed. Home inspections are a professional opinion and may differ from inspector to inspector. While wood destroying pests and organisims guidelines are fairly finite, home inspection reports may not be. If another inspection agency recommends additional corrective work, this work will be completed by direction and at an additional cost to the property owner or persons of responsibility as designated in your buy- sell agreement. Please be aware that it is often more cost effective for the consumer to have this work done with/while other corrective measures are underway. OPTION 1 ***DRYWOOD TERMITE FUMIGATION WARRANTY *** W.A. Stone Termite & Pest Control, Inc. will provide a THREE (3) YEAR WARRANTY for the fumigation of drywood termite infestations identified in the Wood Destroying Pests and Organisms Report. The warranty will provide for up to 2 check-ups (ordered by the property owner), local treatment or re-fumigation as/if found necessary to control drywood termite infestations. Please review the specific warranty page included in this report. ********** OPTION 4 **DRYWOOD TERMITE LOCAL CONTROL TREATMENT WARRANTY** The treatment shown in this report carries a 2 (TWO) year service warranty. W.A. Stone Termite's Alternatives to Fumigation will provide localized control treatment as found necessary to control Drywood Termite infestations in the areas of the structure which were originally treated by our firm as noted in this inspection report. Limitations -- If infestations occur in other areas (not originally treated), they will not be covered by this warranty. Option -- Owner may purchase (at additional cost) an annual termite service agreement to provide service in other areas. Contact our or ASSURANCE PLAN- FOR SECONDARY/LIMITED TREATMENTS Your treatment provides for 1 check-up within one year post treatment at no additional charge. It is the property owners' responsibility to contact our office for the check-up. In the event the infestation persists in the areas of treatment or if infestations appear in other areas not originally noted or treated, 80% (eighty percent) of the funds for your secondary local treatment may be applied toward a fumigation or more all encompassing treatment by our firm. Fumigation pricing may vary during this period. This offer will expire 1 (one) year post treatment.

5 This is a separated report which is defined as Section I/Section II conditions evident on the date of the inspection. Section I contains items where there is visible evidence of active infestation, infection or conditions that have resulted in or from infestation of infection. Section II items are conditions deemed likely to lead to infestation or infection but where no visible evidence of such was found. Further inspection items are defined as recommendations to inspect area(s) which during the original inspection did not allow the inspector access to complete the inspection and cannot be defined as Section I or Section II. 5 of 7 SECTION: I DRYWOOD TERMITES Description of Findings Finding: 2A Evidence of drywood termite infestation was noted at the garage framing and the house substructure in the approximate area(s) marked on the diagram. OPTION-1 PRIMARY RECOMMENDATION FUMIGATION- Cover the entire structure and fumigate with VIKANE tm gas (sulfuryl fluoride) with chloropicrin (tear gas) as a warning agent, for the control of drywood termites. The estimated cost of fumigation to date is $ STANDARD FUMIGATION WARRANTY IS 3 YEARS. OPTION 4- SECONDARY/SUBSTANDARD LOCAL TREATMENT This option has been given as the areas of activity appear to be isolated. Utilize precision pressure injection technique/equipment to locally treat the known accessible areas of drywood termite infestations. Cover or remove fecal pellets after the treatment has been completed. See chemical usage information for treatment material to be used. NOTE: With local/limited area treatments- if infestations exist in inaccessible areas or outside of the treatment zone(s) they will not be exterminated. See Warranty information included in this report. The estimated cost of the local treatment to date is $ Price: $1, Finding: 2B Evidence of drywood termite infestation was noted at the substructure framing in the approximate area(s) marked on the diagram. Finding: 2C Termite damage was noted at the entry porch with inadequate overhead support as marked in the approximate areas on the diagram. Finding: 2D Termite damage was noted at the garage & house passage doors as marked in the approximate areas on the diagram. Finding: 2E Termite damage was noted at the wood floors as marked in the approximate areas on the diagram. FUNGUS/DRYROT Finding: 3A Fungi infected and termite damaged wood member(s) were noted at the garage overhead door and door jamb in the approximate area(s) marked on the diagram.

6 6 of 7 Finding: 3B Fungi infected and termite damaged wood member(s) were noted at the sole plate at the garage and house in the approximate area(s) marked on the diagram. FURTHER INSPECTIONS Finding: 5A Heavy storage and storage debris at the house and garage interiors impedes the Price: $45.00 inspection process. Conditions may exist behind or under these obstructions. Owner or owner's contractor to remove or relocate storage, then contact our office to schedule a further inspection of the areas made accessible. SECTION: II OTHER FINDINGS Finding: 4A Evidence of a faulty grade condition was noted at the garage foundation with plant overgrowth at the nw corner in the approximate area(s) marked on the diagram. Owner to contact a licensed contractor or appropriate tradesperson to inspect (or test) and make corrections as/if found necessary. W.A.Stone Termite does not warranty statements provided by or work completed by others. Finding: 4B Evidence of moisture intrusion and water damage was noted at the bathroom tub walls, the vanity cabinet and wood flooring in the approximate location marked on the diagram. Owner to contact a licensed contractor or appropriate tradesperson to inspect (or test) and make corrections as/if found necessary. W.A.Stone Termite does not warranty statements provided by or work completed by others. Finding: 4C Delamination/moisture damage was noted at the wood floors in the approximate location on the diagram. Owner to contact a licensed contractor or appropriate tradesperson to inspect (or test) and make corrections as/if found necessary. W.A.Stone Termite does not warranty statements provided by or work completed by others. Price: NO ESTIMATE Finding: 4D Water damage was noted at the window/wall areas in the approximate location marked on the diagram. Finding: 4E Plants located at the garage will be damaged or destroyed during the fumigation process if left in place. The plants may also impede the fumigation process. Owner or Owners' contractor to trim away plant overgrowth, detach trellis(s) and or relocate plants prior to arrival of the fumigation crew.

7 Finding: 4F Water staining was noted from what appears to be a roof leak (past or present) at the interior ceilings_in the approximate location marked on the diagram. Owner to contact a licensed contractor or appropriate tradesperson to inspect (or test) and make corrections as/if found necessary. W.A.Stone Termite does not warranty statements provided by or work completed by others. Price: NO ESTIMATE 7 of 7 Section I Total: $1, Section II Total: $0.00 Grand Total: $1,765.00

8 W.A. Stone Termite & Pest Control, Inc.Alternatives to Fumigation License #PR Sterling Ct., Escondido, CA (760) or FAX: (760) Work Authorization Contract No work will be performed until a signed copy of this agreement has been received by our company. Property Owner: Johnson Property address: 1819 Edgemont St., San Diego, CA The WDO report dated 01/03/12 is incorporated herein by reference as though fully set forth in terms, descriptions and agreement. Item # subtotal TOTAL Item # NO ESTIMATE FURTHER INSPECT items TOTAL 2A $1, Professional Discount ($344.00) TOTAL $1, GRAND TOTAL: $1, B, 2C, 2D, 2E, 3A, 3B Section I 4A, 4B, 4C, 4D, 4E, 4F Section II No Estimate 5A $45.00 An estimate on these items is available upon request. *Discount(s) are valid only if payment is made within the payment terms below. Upon acceptance of this contract, W.A. Stone Termite agrees to the following: A. To be bound to perform this work for the price quoted. B. To use reasonable care in the performance of our work but to assume no responsibility for damage to hidden pipes, wiring or other facilities or to any shrubs, plants or roof. Floor coverings, roof repairs and plumbing are not included in this estimate. C. If any additional work is deemed necessary by the local building inspector, said work will not be performed without additional authorization from owner or owner s agent. Additional expense in this instance will be incurred. D. Warranty, if any has been outlined in the associated WDO report. This company makes no other agreements expressed or implied unless expressly included in writing. Property owner should review the WDO report associated with this work authorization for the specific warranty information. OWNER OR OWNER S AGENT AGREES TO PAY FOR SERVICES RENDERED; including any additional services requested by the owner or owner s agent. If W.A. Stone Termite is requested to perform a re-inspection of work completed by others, a fee shall be charged in the amount of $ for the first trip and $75.00 per subsequent trip (if needed). Furthermore, should a request be made after the original inspection that W.A. Stone consult with owner's contractor at the property there will be a $ per hour fee charged portal to portal and during regular business hours. The W.A. Stone repair plan used by our work crews is available at a fee however is available at no charge if this contract is accepted in it's entirety. If this contract is accepted and the work is cancelled by the property owner, owner agrees to return any supplies or equipment provided in good faith under the terms of the agreement. *NOTE* BECAUSE OF THE ADMINISTRATION AND SCHEDULING REQUIRED FOR YOUR WORK, INCLUDING MATERIALS PURCHASED TO COMPLETE THE CONTRACT, IT IS HEREBY AGREED THAT IF WORK IS CANCELLED BY PROPERTY OWNER OR AGENT AFTER THE CONTRACT HAS BEEN SIGNED THERE SHALL BE A CHARGE OF $ ASSESSED TO THE PERSON SIGNING THE CONTRACT. PAYMENT TERMS: A 50% deposit shall be due at time of scheduling and balance due upon completion. Balance on account beyond the payment terms shall be subject to removal of discount. Please keep this in mind when you are scheduling services to be completed. *LATE/NONPAYMENT: If payment is not received as described above, any discounts applied shall be removed and the full amount will become due. A service charge of one percent (1%) interest per month, or portion of any month shall be charged on any accounts exceeding the full payment terms stipulated above. If an account is more than 30 days past due, a mechanic s lien may be filed (see NOTICE TO OWNER below). Any fee s associated with the administration and filing of a mechanic s lien, with the minimum charge being $ will be at the expense of the property owner and will be applied to this account. AUTHORIZATION TO PROCEED We hereby acknowledge that we have read and understand the WDO report and this agreement. We have reviewed the Wood Destroying Pests and Organisms Inspection Report and together with this agreement authorize W.A. Stone Termite & Pest Control to proceed with the work. If the agreement indicates that a title or escrow company is to be billed for the work, we hereby instruct that title or escrow company to hold funds sufficient to pay the bill and to pay the bill upon receipt of the Notice of Work Completed or at close of escrow per the payment terms noted above. We understand, however that we are responsible for payment. If a discount has been offered and the payment terms are not met, the discount will be removed. Under the California Mechanic s Lien Law, any Structural Pest Control Operator has a right to enforce a claim against your property. This means that after a court hearing, your property could be sold by a court officer and the proceeds of the sale used to satisfy the indebtedness. This can happen even if you have paid your contractor in full if the subcontractor, laborers or suppliers remain unpaid. To preserve their right to file a claim or lien against your property, certain claimants such as subcontractors or material suppliers are required to provide you with a document entitled Preliminary Notice. General contractor s and laborers for wages do not have to provide this notice. A Preliminary Notice is not a lien against your property. Its purpose is to notify you of persons who may have a right to file a lien against your property if they are not paid in full. Submitted by: W.A. Stone Termite & Pest Control, Inc dba W.A. Stone Termite's Alternatives to Fumigation and Inspector noted in associated WDO report. Authorization: IF YOU WISH TO PROCEED, PLEASE LIST ITEMS & SIGN BELOW I AUTHORIZE W.A. STONE TERMITE TO COMPLETE THE ITEMS NOTED AT THE COST STATED AS FOLLOWS: X ITEM #'S TOTAL Signature of person authorizing Print Name/Title Date PAYMENT METHOD I wish to pay as follows (please mark box): [ ] Check / Cash Please give to technician at time of service IF YOU WISH TO PAY BY CREDIT CARD, PLEASE PROVIDE THE FOLLOWING INFORMATION: *You may also contact our office to provide this information. [ ] VISA / M/C / AMERICAN EXPRESS Card number Exp. Date Security Code (3 or 4 digits) Credit Card Statement Billing address: Zip code: W.A. Stone Termite is a professional pest control company committed to excellence in customer service. We are happy to provide estimates for any items not bid upon as well as other professional services offered by our company. Call today for more information on the services offered by our company. Thank you for your business!