COMPLETE REPORT X LIMITED REPORT SUPPLEMENTAL REPORT REINSPECTION REPORT General Description: Inspection Tag Posted: SINGLE FAMILY DWELLING

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1 Building No. Street City Zip Date of Inspection 1795 Caloosa Court San Jose /27/10 1 of 7 Ordered by: Property Owner and/or Party of Interest: Report sent to: MaxReal Michelle Lin 1288 Kifer Road, Suite 208 Sunnyvale, CA Pinot Noir Court San Jose, CA Phone: Fax: Ken@KCTermite.com Registration # PR5416 c/o Agent Report # 1798 COMPLETE REPORT X LIMITED REPORT SUPPLEMENTAL REPORT REINSPECTION REPORT General Description: Inspection Tag Posted: SINGLE FAMILY DWELLING Garage Other Tags Posted: 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. Diagram is not to scale. Locations are only approximate. Subterranean Termites X Drywood Termites X Fungus / Dryrot X Other Findings X Further Inspection If any of the above 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: CARROLL, KENNETH State License No. OPR5895 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, California, 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 1795 Caloosa Court San Jose /27/ of 7 This is a separated report which is defined as Section 1 / Section 2 conditions evident on the date of inspection. Section 1 contains items where there is evidence of active infestation, infection or conditions that have resulted in or from infestation or infection. Section 2 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 areas(s) which during the original inspection did not allow the inspector access to complete the inspection and cannot be defined as Section 1 or Section 2. SECTION I: (1) SUBTERRANEAN TERMITES 1A. FINDING: There is wood lying on the ground and, therefore, there is earth to wood contact, with evidence of subterranean termites and fungus (dry-rot) in this wood in, and adjacent to, the attached shed. RECOMMENDATION: Remove the loose wood from the ground and dispose of this material. Section 1 Item. 1B. FINDING: There is evidence of subterranean termites in the soil at the left side of the structure in the area of the shed. RECOMMENDATION: Treat the soil adjacent to the foundation of the house in the area of the shed with the registered material Termidor SC (Fipronil), drilling through concrete where applicable and sealing the holes afterwards with mortar. Section 1 Item. NOTE: Local treatment is not intended to be an entire structure treatment method. If infestations of wood-destroying pests extend or exist beyond the area(s) of local treatment, they may not be exterminated. (2) DRYWOOD TERMITES 2A. FINDING: There is evidence of drywood termites in the structure as viewed from the subarea and the exterior. RECOMMENDATION: Due to the nature of these infestations, it will be necessary to seal the entire structure and fumigate it with Vikane (Sulfuryl Fluoride). We will use tear gas (Chloropicrin) as a warning agent. The entire structure must be vacant for for this process. We will use all due caution in our operation, however, we assume no liability for any damage to the roof coverings, solar panels, TV antennas or plantings adjacent to the structure. The occupants must sign the Occupants Fumigation Notice and comply with all of the instructions. Section 1 Item. NOTE: Instruction for preparation work will be forthcoming from the fumigation company and must be complied with in order for fumigation to commence.

3 1795 Caloosa Court San Jose /27/ of 7 2B. FINDING: Drywood termite pellets were evident in the subarea and at the exterior. RECOMMENDATION: Remove or mask over all accessible termite pellets. Section 1 Item. (3) FUNGUS/DRYROT 3A. FINDING: There is fungus damage at the wood members at the edges of the roof in the areas indicated on the diagram. RECOMMENDATION: Repair, replace and/or reinforce the damaged wood as necessary. Section 1 Item. NOTE: During the course of our wood repairs at the roof eaves we will be careful to avoid any damage to the roof covering, but if this material is old and/or brittle, or if there is current leakage, the roof covering may be necessarily damaged by this procedure. Our bid does not inlcude any roof covering repairs. It will be the owner's responsibility to contact a roofing contractor to inspect and to make the necessary recommendation to repair or replace roof covering if needed. 3B. FINDING: There is fungus damage and drywood termite damage noted to the wood siding at the front of the house and garage. RECOMMENDATION: Replace the damaged portions of the siding with new material using z-bar as needed to prevent future leakage at the junctions between the new and the older material. Section 1 Item. 3C. FINDING: There is fungus damage noted to the rim joist at the right side of the subarea. RECOMMENDATION: Repair, replace and/or reinforce the damaged wood as practical from underneath the structure. Section 1 Item. SECTION II: (4) OTHER FINDINGS 4A. FINDING: Vegetation was noted against the wood members of the structure. This condition can lead to infection and damage to the wood members. RECOMMENDATION: Prune away the vegetation from the wood members. Section 2 Item. 4B. FINDING: The garage door indicated on the diagram is deteriorating due to exposure to weather and/or pet(s). RECOMMENDATION: The owner should maintain the door as needed. Section 2 Item.

4 1795 Caloosa Court San Jose /27/ of 7 4C. FINDING: The front barge rafters are beginning to show signs of weathering. RECOMMENDATION: Repair, seal and maintain the exterior wood periodically as needed. Section 2 Item. 4D. FINDING: There is cellulose debris was found in the crawl space area, wood and paper resting on the subarea soil. RECOMMENDATION: Remove all cellulose debris of a size that can be raked and larger. Section 2 Item. 4E. FINDING: There are corroded galvanized water pipes in the subarea. RECOMMENDATION: The owner should have someone in this line of work replace the corroded parts with new material. Section 2 Item. 4F. FINDING: The stucco siding at the perimeter of the home extends below the soil level thereby preventing a visual inspection of the foundation. This condition presents a potential hidden passage for termite infestation through the void between the stucco siding and the foundation. RECOMMENDATION: Chemically treat adjacent to the foundation around the entire exterior perimeter as a precautionary measure using Termidor (Fipronil) to inhibit termite infestation, in addition to the area to be treated per item 1B, in connection with that treatment. Section 2 Item. Information: Please read the entire report to determine the limitations of the inspection. This inspection is limited to the visible and accessible portions of the structure as noted on the diagram only. Any reported pests pertain to wood-destroying pests and organisms and do not include reference to other structural pests that are not classified as wood-destroying pests. This inspection does not include opinions as to the condition of plumbing, roofing, electrical components, gas, heating, air conditioning, or other such structural elements. If such information is desired, we suggest that a qualified Home Inspector and qualified contractors be contacted. Inspection of fences and detached structures is not included in this report unless otherwise stated. In any slab floor areas or areas where stucco siding extends below the exterior grade level, it is possible for subterranean termite infestations to be present but not evident at the time of inspection. If during the course of any repairs, further adverse conditions are revealed, we reserve the right to issue a supplemental report of the further conditions found and costs may be additional.

5 1795 Caloosa Court San Jose /27/ of 7 Areas not inspected: The following areas were not inspected: Portions of attics, such as areas where insulation covers portions of the wood members; the interior of hollow walls; areas to which there is no access without defacing or tearing out lumber, masonry and finished work; built-in cabinet work, floor beneath coverings. does not make any guarantee against future or hidden infestation, infection, nor adverse condition present but not evident at the time of the inspection. Routine inspection does not include opening windows, opening all exterior doors, inspecting the interior of cabinets. Further inspection of any of the above areas, if requested after they are rendered accessible, may be completed at an additional expense. Certification: Certification applies to visible and accessible areas of the structure observed at the time of original inspection. This certification does not constitute a guarantee that parties in interest will not inherit hidden infestations, infections and adverse conditions. Ken Carroll Termite Company assumes no liability for such hidden conditions. If a problem is discovered that was not disclosed during our inspection, do not disturb the area. Contact our office immediately to inspect the problem area and allow proper determination. Reinspection: This Company will re-inspect repairs done by others within 4 months of the Original inspection. A charge, if any, can be no greater than the original inspection fee for each re-inspection. The re-inspection must be done within ten (10) working days of request. The re-inspection is a visual inspection and if inspection of concealed areas is desired, inspection of work in progress will be necessary. Any guarantees must be received from parties performing repairs. Exterior: The structure was inspected from the ground level only. Portions of the structure that extend more than 8 feet from the ground level were visually inspected only. Visual inspection above 8 feet is limited by height. Accuracy above this point cannot be guaranteed. Wood members showing visible signs of infestation or infection were pick-tested to determine the nature and extent of the finding. The inspector did not get up on the roof to inspect wood members accessible from the roof.

6 1795 Caloosa Court San Jose /27/ of 7 Second opinion: NOTICE: The structural Pest Control Board encourages competitive business practices among registered companies. Reports on this structure prepared by various 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 a right to seek a second opinion from another company. Roof covering: 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 Contractors' State License Board. Subcontracting: NOTICE: The charge for service that this company subcontracts to another person or entity 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 Ken Carroll Termite Company's bid or you may contract directly with another registered company licensed to perform the work. If you choose to contract directly with another registered company, will not be responsible for any act or omission in the performance of work that you directly contract with another to perform. Fumigation subcontractor: Best Care Fumigation, Inc., P.O. Box 14461, Fremont, CA (510) Repair subcontractor: Toledo Construction, 1209 Sagemill Court, San Jose, CA (408) Mill patterns: During the course of repairs we will replace material with current available stock. We cannot guarantee to match the existing material exactly. If special milling is required by interested parties in any wood replacement, costs for this service will be additional. Painting: Unless otherwise specifically stated in this report, our bid does not include any painting. It will be the owner's responsibility to paint repaired areas.

7 1795 Caloosa Court San Jose /27/ of 7 Guarantee: We guarantee treatments and repairs done by this company for one year from the date of completion. Fumigations are guaranteed for three years from the date of the fumigation. We cannot guarantee work done by others. We make no guarantee against future infections, adverse conditions or conditions present but not evident at the time of our inspection. Mold: This property was not inspected for the presence or absence of health-related molds or fungi. By California Law, we are not qualified, authorized nor licensed to inspect for health-related molds. If you desire information about the presence or absence of health-related molds, contact the California Department of Health Related Services. Pesticides: Pesticides are the products uses to control the target pests listed in your Inspection Report. Pesticides are indispensable tools our industry uses to control wood-destroying pests, thus protecting your property. When properly used, pesticides pose minimal risk to humans or the environment. Your Technician is a State certified applicator whose knowledge is constantly being upgraded through regularly training sessions. If you have any questions, please call us at (408) , visit our website at or write to us at, 8014 Pinot Noir Court, San Jose, CA will not apply any compound not authorized for use in California. Please refer to the Inspection Report above for proposed materials to be used. 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 Pesticide Regulation and the United States Environmental Protection Agency. Registration is granted when the State finds that based on existing scientific evidence there are no appreciable risks if proper use conditions are followed or that the risks are outweighed by the benefits. The degree of risk depends upon the degree of exposure, so exposure should be minimized. If within 24 hours following an application you experience symptoms similar to common seasonal illness, comparable to the flu, contact (408) , your physician, and/or your Poison Control Center. For the Poison Control Center, contact the following: ( ). For further information, contact any of the following: (408) ; for Health Questions-The County Health Department (408) ; for Application Information-The County Agricultural Commissioner (408) or (415) and for Regulatory Information-the Structural Pest Control Board (800) located at 2005 Evergreen Street, Suite 1500, Sacramento, CA

8 WORK AUTHORIZATION CONTRACT Building No. Street City Zip Date of Inspection 1795 Caloosa Court San Jose /27/10 No Pinot Noir Court San Jose, CA Phone: Fax: Ken@KCTermite.com Registration # PR5416 For Report # 1798 ITEMIZED COST BREAKDOWN (Refer to items on the report) SECTION 1: SECTION 2: FURTHER INSPECTION: Primary Work Bid 1A: $ B: $ A: $ B: $ A: $ B: $ C: $ *** TOTAL: $ A: Owner 4B: Owner 4C: Owner 4D: $ F: $ *** TOTAL: $ NONE Secondary Work Bid NONE *** TOTAL: $0.00 NONE We have not quoted a price for "Owner" items. Any "Owner" items would be the owner's responsibility to correct, or to engage the services of the appropriate trades to correct. THIS IS A BINDING CONTRACT between Ken Carroll Termite Co. and, and incorporates our termite report # 1798 dated 10/27/10 for real property located at 1795 Caloosa Court San Jose CA Items on the report may contain provisions for additional costs over and above the original estimate. Please read the report carefully and completely. CONDITIONS: 1. This offer is limited to 4 months from the date of the report. 2. If further inspection is recommended, or if additional work is required, we will provide prices or recommendations for correction. Interested parties will be notified prior to any work being done. 3. Notice to owner of Mechanic's Lien as required by the Structural Pest Control Board: Under the California Mechanics Lien Law, any structural pest control operator who contracts to do work for you, any contractor, subcontractor, laborer, supplier or other person who helps to improve your property, but is not paid for his work or supplies, 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

9 WORK AUTHORIZATION CONTRACT Building No. Street City Zip Date of Inspection 1795 Caloosa Court San Jose /27/10 No Pinot Noir Court San Jose, CA Phone: Fax: Ken@KCTermite.com Registration # PR5416 For Report # 1798 with a document entitled "Preliminary Notice". General contractors 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. 4. We will use due caution and diligence in their operations and care will always be taken to minimize any damage, but assumes no responsibility for matching existing colors and styles, or for incidental damage to roof coverings, TV antennas, solar panels, rain gutters, plant life, paint or wall coverings. There may be health related issues associated with the structural repairs reflected in the inspection report referenced by this work authorization contract. These health issues include but are not limited to the possible release of mold spores during the course of repairs. We are not qualified to and do not render any opinion concerning such health issues or any special precautions. Any questions concerning health issues or any special precautions to be taken prior to or during the course of such repairs should be directed to a Certified Industrial Hygienist before any such repairs are undertaken. By executing this work authorization contract, customer acknowledges that he or she has been advised of the foregoing and has had the opportunity to consult with a qualified professional. 5. This report is limited to the accessible areas of the structure shown on the diagram. Please refer to the report for areas not inspected and further information. 6. TERMS OF PAYMENT. We agree to pay the sum of upon issuance of Notice of Work Completed. Accounts are past due thirty days after date of completion unless prior arrangements have been made. 7. We instruct, holder of escrow #, to pay the sum of $ upon close of escrow. Close of escrow date: Phone #. Escrow officer's name:, Escrow officer's address:. We understand that we are responsible for payment, and if escrow does not close within 30 days of completion of work we will pay the amount due in full, and upon notification late fees may apply if payment is not made. 8. We authorize this company to perform items for a contract price of. NAME OF PERSON TO CONTACT FOR ACCESS: PHONE # SIGNED DATE NAME OF SIGNER (PLEASE PRINT) It is assumed that if an agent orders work on the owner's behalf, and that they were notified prior by said agent, that if payment is not made by the agent or escrow company it will be the responsibility of the owner to produce payment.

10 8014 Pinot Noir Court San Jose, CA Phone: Fax: MaxReal Michelle Lin 1288 Kifer Road, Suite 208 Sunnyvale, CA Receipt Statement Date: 10/27/10 Report #: 1798 Service Address: 1795 Caloosa Court - San Jose, CA Date Description Charge Payment Balance 10/27/10 10/27/10 10/27/10 Termite Inspection CHECK 121 by Vincent Huang CHECK 657 by Xiao Lin Balance: $ 0.00 Thank You!