A M E R I C A ’ S H O M E W A R R A N T Y C O M P A N Y S I N C E 1 9 7 1

PROTECTION PLANPROTECTION PLAN

HOME WARRANTYHAWAII

www.ahswarranty.com

Purchasing a home is a major investment. Manyof a home’s systems are hidden from view and areeasily taken for granted - until something goeswrong.That’s when your investment can take anunexpected turn!

An American Home Shield Home Warranty provides for the repair or replacement (for one full year) of an existing home’s covered mechanicalsystems and major appliances that break down due to normal wear and tear.

As a seller, you can help protect yourself by avoiding unexpected bills on coveredsystems and appliances during the critical period your home is on the market,and by reducing after-sale liability.

As a buyer, your newly purchased home will provide the comfort and joy youwere hoping for without the surprises of extra (and expensive) repair bills oncovered systems and appliances.

Don’t put your investment and security at risk.Ask for an AHS home warrantyplan as a fundamental part of your real estate transaction.

AHS HOME WARRANTIES:THE POWER OF PROTECTION

Why settle for less than the best? AHS founded the homewarranty industry in 1971, and has since brought responsive, high-quality protection to more than 6 million customers nationwide. On every key measure of service, from total dollars paid for repairsand replacements to the number of service

calls, we continue to set the standard.AHSserves customers an average of 2 times a year.

And, while some plans may cost less today,they could easily cost you more tomorrow.

A RECORD OF INDUSTRY LEADERSHIP

AHS BENEFITS BUYERS AND SELLERS

•

•

…estimated nationwideon repair and

replacement costs toour AHS customers

4National

Service Centers

For your convenience...staffed 24 hours a day, 7 days aweek to take

service requests

Throughout theyear’s contract, AHScustomers receive

service over 2 times per year*

*based upon AHS service work orders

(on average)

© 2003 American Home Shield Corporation

Over$232

Million

WE’VE GOT YOU COVEREDEach home is unique and so are the needs of each homeowner.This is the reason AHS hasdeveloped comprehensive home warranty plans to cover systems and appliances that are in yourhome.You can choose the home warranty coverage to fit your particular needs.

AHS SUMMARY OF COVERAGE

OPTIONAL LISTING COVERAGEFOR HOME SELLER

• Provides for the repair or replacementof basic covered items during the listing period (does not include options)

• Reduces the chance of a delayed closing due to the breakdown of a covered component

• Minimizes out-of-pocket expenses

• Helps keep home marketable and ingood condition while for sale

• Fee is paid only if (and when) homecloses escrow

O P T I O N A LCOVERAGE FOR HOME SELLER

AND/OR HOME BUYER

O P T I O N A LCOVERAGE FOR HOME BUYER

BASICCOVERAGE FOR HOME BUYER

AND HOME SELLER

There is a trade service call fee per repair visit, or actual cost ofservice, whichever is less. Please read contract for specific coverage,limitations and exclusions.

• Sump Pump• Window/Wall Air Conditioning• Ducted Central Air Conditioning• Ductless Split Air Conditioning• Ductwork• Swimming Pool/Spa Equipment• Water Heater

• Built-in Exhaust Fan• Garage Door Opener• Trash Compactor

• Ceiling Fans• Dishwasher• Garbage Disposal• Built-in Microwave Oven• Kitchen Refrigerator• Range/Oven/Cooktop• Clothes Washer• Clothes Dryer• Plumbing System• Built-in Whirlpool Tub• Electrical System

AHS has a long history of quality service and financial strength. AHS is a subsidiary of The

ServiceMaster Company, America’s Service Brandsfor Home and Business, serving more than 10.5

million homes and businesses each year.

TURN THE PAGE TO BEGIN YOUR COVERAGE TODAY!

IT’S EASY TO REQUEST SERVICE - 24 HOURS A DAY, 7 DAYS A WEEKWhen a covered item breaks down due to normal wear and tear, contact American Home Shield.

AHS will contact an authorized service contractor who will call you to schedule a convenient time to diagnose the problem.

1-800-776-4663www.ahswarranty.com

Form No. 94105 HITD/275 07/03

When I purchased my home, my [agent] advised me to add an AHS Home Warranty Plan to the transaction.With all the other costs associated with buying a home, I was leery of spending the extra money. During thefirst year of ownership, I called AHS 4 times for service! Obviously, I'm very thankful I purchased the contractand have just renewed it for another year.Thanks to my [agent], I'm recommending an AHS Home WarrantyPlan to all my friends purchasing a home.

"…I'm recommending an AHS Home Warranty Plan to all my friends purchasing a home"

C. Allen, Homeowner

Through the REALTOR VIP® Program the NATIONAL ASSOCIATION OF REALTORS® has joined with more than 30 strategic partners to provide the National Association’s 800,000 members the benefits of groupbuying power, financial planning tools and means for expanding their professional knowledge. The National Association strategic partners, now including American Home Shield, are leaders in their industries andcommitted to providing NAR members with special offerings tailored to their needs.

Please note that the home warranty contracts are offered by American Home Shield and NAR is not an agent of or for American Home Shield in the sale of these contracts. For customer assistance, please contact 1-866-627-7253.

To learn more about a special offer from AHS, available only to home buyers working with REALTORS®, please call 1-866-627-7253 or visit www.ahswarranty.com/nar

THE VALUE OF AN AMERICAN HOME SHIELDHOME WARRANTY

Last year,AHS paid out over $232 million nationwide protecting our customers against thehigh cost of repairs and replacements for major systems and appliances. Just look how expensivetypical costs can be on these critical items.

WITHOUT AHS, THE AVERAGE REPAIR/REPLACEMENT COST* COULD BE:

Take advantage of our budget-protecting coverage now.

*Based on a nationwide survey of American Home Shield’s independent network ofservice contractors who estimated the range of retail costs (from low to high) for the repairsand replacements listed above. Pricing may vary in your geographic area.AHS reserves theright to provide cash back in lieu of repair or replacement in the amount of AHS’s actualcost to repair or replace such item, which at times may be less than retail value.

ITEM REPAIR REPLACEMENT

Heating System $81 - $640 $1,295 - $3,258

Central Air $85 - $930 $1,466 - $3,719

Plumbing $101 - $651 $471 - $1,982

Range/Oven $75 - $307 $397 - $1,598

Water Heater $82 - $197 $415 - $661

■■■ SELLER INFORMATION

SELLER NAME:

PHONE NUMBER: ( ) E-MAIL:

MAILING ADDRESS:

CITY: STATE: ZIP:

REAL ESTATE COMPANY:

AGENT NAME: E-MAIL:

PHONE NUMBER: ( ) LISTING EXP. DATE:

■■■ BUYER INFORMATION

BUYER NAME:

PHONE NUMBER: ( ) E-MAIL:

MAILING ADDRESS:

CITY: STATE: ZIP:

REAL ESTATE COMPANY:

AGENT NAME: E-MAIL:

PHONE NUMBER: ( )

CLOSING COMPANY INFORMATION

CLOSING COMPANY NAME:

PHONE NUMBER: ( ) FAX: ( )

ESTIMATED CLOSING DATE: CLOSING NO.:

CLOSING REP NAME: E-MAIL:

H O M E W A R R A N T Y A P P L I C A T I O N

STEP ONE – Choose the plan that is right for your home

STEP THREE – Tell us about yourself

TO REQUEST SERVICE – Visit www.ahswarranty.com or call 1-800-776-4663

Prices below are for single family dwellings under 5,000 sq. ft., condominiumsand townhomes. Call to obtain a quote on alternative dwelling types.

■■■ Basic Coverage for Home Buyer . . . . . . . . . . . . . . . . . .$275

■■■ Optional Listing Coverage for Home Seller* . . . . . . . . . .$75* Available only with the purchase of Basic Coverage for Home Buyer.

$50 Trade service call fee per repair visit or actual cost of service, whichever is less.

Additional charges may apply to certain repairs and replacements.

Please read contract for specific coverage, limitations and exclusions.

STEP TWO – Select your optional coverage

Optional Coverage Available to Home Seller and/or Home Buyer

■■■ Built-In Exhaust Fans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$10

■■■ Garage Door Opener . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$25

■■■ Trash Compactor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$10

Optional Coverage Available only to Home Buyer

■■■ Window and/or Wall Air Conditioning/Cooler . . . . . . . . . . . .$50

■■■ Ducted Central Air Conditioning/Cooler . . . . . . . . . . . . . . .$100

■■■ Ductless Split Air Conditioning System . . . . . . . . . . . . . . . . .$100

■■■ Water Heater . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$45

■■■ Sump Pump . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$10

■■■ Swimming Pool and/or Spa Equipment . . . . . . . . . . . . . . . .$160

■■■ Swimming Pool w/Built-in Spa Equipment . . . . . . . . . . . . .$160

■■■ Additional Swimming Pool or Spa Equipment . . . . . . . . . . . . .$50

4 E A S Y W AY S T O O R D E R Y O U R A H S H O M E W A R R A N T Y P L A N

Phone:1-800-SEL-HOME (1-800-735-4663)

Mail w/payment: AHS, P.O. Box 2803,Memphis, TN 38101- 2803

Fax: 1-800-FAX-AHS8(1-800-329-2478)

Confirmation # ______________________________________________(This will be provided when AHS receives your application.)

When a covered item breaks down due to normal wear and tear, contact American Home Shield. AHS will contact an authorizedservice contractor who will call you to schedule a convenient time to diagnose the problem.

Please do not call a contractor yourself. AHS will not reimburse for work performed without its prior approval.

Please check appropriate box for initiating agent.

© 2003 American Home Shield CorporationForm No. 94105 HITD/275 07/03

Mail w/o payment: AHS P.O. Box 849,Carroll, IA 51401-9901

PROPERTY ADDRESS TO BE COVERED:

CITY: STATE: ZIP:

STEP FOUR – Please check appropriate box(es) and sign

Plan fee is due at close of escrow.

I desire:

■■■ Home Seller’s and Home Buyer’s coverage

■■■ Home Buyer’s coverage

■■■ To decline the benefits of this coverage. I agree not to hold the above real estate company, broker and/or agents liable for the repair or replacement of a system or appliancethat would otherwise have been covered by this warranty plan.

Signature: Date:

Basic Coverage:

Optional Coverage(s):

4.16% HI Sales Tax:

CONTRACT TOTAL:

$

$

$

$

Online:www.AHSsales.com

1. You must notify AHS for work to be performed under this contract as soon as the problem isdiscovered. AHS will accept service calls 24 hours a day, 7 days a week at 1-800-776-4663 oronline at www.ahswarranty.com. Notice of any malfunction must be given to AHS prior to theexpiration of this contract.

2. Upon request for service, AHS will contact an authorized service contractor within four (4)hours during normal business hours and forty-eight (48) hours on weekends and holidays. Theservice contractor will promptly contact you to schedule a mutually convenient appointmentduring normal business hours. AHS will determine what repairs constitute an emergencyand will make reasonable efforts to expedite emergency service. If you should request AHSto perform non-emergency service outside of normal business hours, you will beresponsible for payment of additional fees, including overtime.

3. AHS has the right to select the service contractor, which may be a service companyaffiliated with AHS, to perform the service. AHS will not reimburse for services performedwithout its prior approval.

4. You will pay $50 for each trade service call, or the actual cost, whichever is less. Additionalcharges may apply to certain repairs and replacements. The trade service call fee is for each call

dispatched and scheduled to be run (except as noted in Section B.5.) including, but not limited to,trade service calls wherein coverage is (in whole or in part) granted, excluded, limited or denied.Please note: the trade service call fee applies in the event you fail to be present at scheduled time ofthe trade service call or in the event you cancel a call at the time the contractor is in route to yourhome or the service contractor has already arrived at your home. The trade service call fee will bedue and payable to the AHS-authorized service contractor (or to AHS) at the time of thescheduled trade service call. AHS cannot respond to a new request for service when any previoustrade service call fee is outstanding. Certain repairs and replacements may require you to paya local or state permit fee to the AHS-approved contractor, at the time the work begins,and to allow a state or local building inspector access to your home. Failure to pay the tradeservice call fee or permit fee (if applicable), or to allow access to your home by the buildinginspector, will result in suspension of coverage until such time as the proper fee is paid or access isgranted (as applicable). At that time, coverage will be reinstated; however, the contract term willnot be extended.

5. If service work performed under this contract should fail, then AHS will make the necessaryrepairs without an additional trade service call fee for a period of 90 days on parts and 30 dayson labor.

1. During the coverage period, AHS will arrange for a qualified service contractor to repair orreplace the systems and appliances mentioned as covered in accordance with the terms andconditions of this contract so long as they:

A. Are located within the confines of the main foundation of the home or garage (withthe exception of the air conditioner and pool and/or spa equipment, if selected);

B. Become inoperative due to normal wear and tear;

C. Are in good working order on the effective date of this contract; and

D. Are properly installed throughout the term of this contract for proper diagnosis.

2. This contract only covers single family resale homes (including manufactured housing) under 5,000square feet, unless an alternative dwelling type (i.e. 5,000 square feet up to 10,000 square feet, ormultiple units) is applied for by phoning 1-800-735-4663, and the appropriate fee is paid. Coverage isfor owned or rented residential property, not commercial property or residences used as businesses,including, but not limited to, day care centers, fraternity/sorority houses, and nursing/care homes.

3. This contract describes the basic coverage and options available. For the specific coverageselection on your home, see the reverse side of this contract. Coverage includes only the itemsstated as covered and excludes all others. Coverage is subject to limitations and conditionsspecified in this contract. Please read your contract carefully.

4. Seller’s coverage for the listing and escrow period starts upon issuance of a contract number byAHS, and continues for 180 days or close of escrow or termination of listing (whichever occursfirst). In the event that close of escrow does not occur in such 180-day period, AHS may, in itssole discretion, extend the seller’s coverage period. If the application is received as a telephoneapplication, then coverage will start immediately upon issuance of a contract number by AHS.Seller’s coverage includes systems and appliances in Section C. and D.1., if appropriate fees arepaid. For the Seller to receive optional coverage (Section D.1.), the Seller agrees to provide theappropriate fees for the Buyer.

5. Buyer’s coverage begins at close of escrow, provided plan fee is paid to AHS, and continues forone (1) year after close of escrow. Any payments made by AHS during the seller’s coverage period(if applicable) for the repair or replacement of any covered item shall apply against any “percontract” or “per covered item” dollar limitations set forth herein. Any exclusion, denial orsuspension of service made by AHS during the seller’s coverage period of any covered item shallapply against the buyer’s coverage as set forth herein unless such item is repaired or replaced.

6. Lease option coverage (available for lessee only) begins upon receipt of application and contractfees by AHS and continues for one (1) full year.

S A M P L E C O N T R A C T

A. COVERAGE

B. CUSTOMER SERVICE – TO REQUEST SERVICE CALL:1-800-776-4663 OR VISIT www.ahswarranty.com

P.O. Box 849, Carroll, IA 51401American Home Shield Corporation (“AHS”)

The following systems and appliances are covered for home seller and home buyer.Certain limitations of liability apply to covered systems and appliances (see Section E).

1. CEILING FANSCOVERED: All components and parts.

2. DISHWASHERCOVERED: All components and parts, except:

NOT COVERED: Racks - Baskets - Rollers.

3. GARBAGE DISPOSALCOVERED: All components and parts, including entire unit.

4. BUILT-IN MICROWAVE OVENCOVERED: All components and parts, except:

NOT COVERED: Interior linings - Door glass - Shelves - Portable or counter top units - Meatprobe assemblies - Rotisseries - Clocks.

5. ONE KITCHEN REFRIGERATOR(must be located in the Kitchen)

NOTE FOR HOME SELLER: Refrigerator is subject to a $250 maximum coveragelimitation during the listing period.

COVERED: All components and parts, except:

NOT COVERED: Racks - Shelves - Drawers - Ice makers, ice crushers, beverage dispensers and

their respective equipment - Interior thermal shells - Food spoilage - Freezers which are not anintegral part of the refrigerator.

6. RANGE/OVEN/COOKTOP (Gas or Electric)COVERED: All components and parts, except:

NOT COVERED: Clocks (unless they affect the function of the oven) - Meat probe assemblies -Rotisseries - Racks - Handles - Knobs - Sensi-heat burners will only be replaced with standard burners.

NOTE FOR HOME SELLER:Washer and dryer are subject to a combined $250maximum coverage limitation during the listing period.

7. CLOTHES WASHERCOVERED: All components and parts, except:

NOT COVERED: Plastic mini-tubs - Soap dispensers - Filter screens - Knobs and dials -Damage to clothing.

8. CLOTHES DRYERCOVERED: All components and parts, except:

NOT COVERED:Venting - Lint screens - Knobs and dials - Damage to clothing.

9. PLUMBING SYSTEMCOVERED: Leaks and breaks of water, drain, gas, waste or vent lines, except if caused

by freezing or roots - Toilet tanks, bowls and related mechanisms (builder’s standard is used whenreplacement is necessary), toilet wax ring seals - Valves for shower, tub, and diverter, angle stops,risers and gate valves - Built-in bathtub whirlpool motor and pump assemblies.

C. BASIC COVERAGE FOR HOME BUYEROPTIONAL BASIC COVERAGE FOR HOME SELLER

(AVAILABLE UPON PAYMENT OF ADDITIONAL CONTRACT FEE.)

NOTE: HOME BUYER may purchase any optional coverage for up to 30 days after closeof escrow. However, coverage shall not commence until receipt of payment by AHS andsuch coverage shall expire upon expiration of coverage period in Section A.5. Limitationsof liability specified in Section E shall apply.

1. BUILT-IN EXHAUST FANSCOVERED: All components and parts, except:

NOT COVERED: Exhaust fans used for radon - Heating or lighting components.

2. GARAGE DOOR OPENERCOVERED:Wiring - Motor - Switches - Receiver unit - Track assembly.

NOT COVERED: Doors - Hinges - Springs - Remote transmitters.

3.TRASH COMPACTORCOVERED: All components and parts, except:

NOT COVERED: Lock and key assemblies - Removable buckets.

D.1. OPTIONAL COVERAGE AVAILABLE TO HOME SELLER AND/OR HOME BUYER

(AVAILABLE UPON PAYMENT OF ADDITIONAL CONTRACT FEE.)

NOTE: HOME BUYER may purchase any optional coverage for up to 30 days after closeof escrow. However, coverage shall not commence until receipt of payment by AHS andsuch coverage shall expire upon expiration of coverage period in Section A.5. Limitationsof liability specified in Section E shall apply.

4. SUMP PUMPCOVERED: Permanently installed sump pump for ground water only.

NOT COVERED: Sewage ejector pumps.

5.WINDOW AND/OR WALL AIR CONDITIONING/COOLERCOVERED: All components and parts of up to two wall and/or window units (each

unit must have a rating of 10,000 BTU’s or greater for coverage to apply).

NOT COVERED: Central (ducted) air conditioning systems - Ductless split air conditioning -Ductwork - Air conditioners with a rating of less than 10,000 BTU’s - Air conditioners over thelimit of two unless additional fee is paid within 30 days from close of escrow - Heat pumps.

6. DUCTED CENTRAL AIR CONDITIONING/COOLER(Maximum of 2 systems)NOTE: Coverage available on cooling systems not exceeding a five (5) ton capacity.

COVERED: Ducted electric central air conditioning, ducted electric wall air conditioning, andwater evaporative coolers. All components and parts, except:

NOT COVERED: Gas air conditioning systems - Condenser casings - Registers and grills - Filters- Electronic air cleaners - Non-ducted window/wall units - Water towers - Humidifiers - Roof jacksor stands - Evaporative cooler pads - Flues - Vents - Improperly sized air conditioning unit -Chillers and chiller components - Ductless split air conditioning - Heat strips or heat pumps.

7. DUCTLESS SPLIT AIR CONDITIONING SYSTEMCOVERED: Ductless split air conditioners. All components and parts, except:

NOT COVERED: Ducted electric central air conditioning - Ducted electric wall airconditioning - Non-ducted self contained window/wall units - Condenser casings - Filters - Electronicair cleaners - Humidifiers - Improperly sized air conditioning systems - Heat strips or heat pumps.

8. DUCTWORK(AVAILABLE ONLY IN CONJUNCTION WITH CENTRAL AIR OPTION.)

COVERED: Ducts from heating and/or cooling unit to point of attachment at registers

or grills and flex ductwork.

NOT COVERED: Registers or grills - Insulation - Asbestos-insulated ductwork - Dampers -Improperly sized ductwork.

NOTE: AHS will provide access to ductwork through unobstructed walls, ceilings or floors,only, and will return the access opening to a rough finish condition.With respect toconcrete covered, embedded, encased, or otherwise inaccessible ductwork, AHS will payno more than $500 per contract term for access, diagnosis and repair or replacement.AHS’s authorized service contractor will close the access opening and return to a roughfinish condition, subject to the $500 limit indicated. AHS shall not be responsible forpayment of the cost to remove and replace any built-in appliances, cabinets, floorcoverings or other obstructions impeding access to walls, ceilings or floors.

9. SWIMMING POOL AND/OR SPA EQUIPMENT(excludes portable or above ground spas)COVERED: Both pool and built-in spa equipment (exterior hot tub and whirlpool) are

covered if they utilize common equipment. If they do not utilize common equipment, then onlyone or the other is covered unless an additional fee is paid. Coverage applies to above ground,accessible, working components and parts of the heating, pumping, and filtration system asfollows: Heater - Pump - Motor - Filter - Filter timer - Gaskets - Blower - Timer - Valves, limitedto back flush, actuator, check, 2 and 3-way valves - Relays and switches - Pool sweep motor andpump - Above ground plumbing pipes and wiring.

NOT COVERED: Lights - Liners - Structural defects - Solar equipment - Jets - Ornamentalfountains, waterfalls and their pumping systems – Pool cover and related equipment - Fill line andfill valves - Fuel storage tanks - Built-in or detachable cleaning equipment such as, but not limitedto, pool sweeps, pop up heads, turbo valves, skimmers, chlorinators, and ionizers - Disposablefiltration mediums - Heat pump - Portable or above ground spas.

10.WATER HEATERCOVERED: All components and parts, including circulating pumps, except:

NOT COVERED: Solar water heaters - Solar components - Holding or storagetanks - Noise - Fuel storage tank and energy conservation unit - Flues and vents - Thermalexpansion tanks.

D.2. OPTIONAL COVERAGE AVAILABLE ONLY TO HOME BUYER

E. LIMITATIONS OF LIABILITY

1. The following are not covered for the home seller or for the home buyer: malfunction orimproper operation due to rust or corrosion of appliances, air conditioning systems/coolers/splitsystems, or pools/spas.

2. Collapsed ductwork is not covered for the home seller, or for the first 30 days after close ofescrow for the home buyer.

3. AHS is not responsible for providing or closing access to covered items except as noted inSections C and D.

4.You may be charged an additional fee by the service contractor to dispose of an old

appliance, system or component, including, but not limited to the following items:condensing units, evaporator coils, compressors, capacitors, refrigerators, freezers, waterheaters, and any system or appliance which contains dangerous or hazardous materials.

5. AHS is not responsible for restoration of any wall coverings, floor coverings, cabinets, countertops, tiling, paint, or the like, nor the repair of any cosmetic defects.

6. Electronic, computerized or energy management systems or devices, or lighting and appliancemanagement systems are not covered.

7. AHS is not liable for consequential or secondary damages nor for failure to provide timely

NOT COVERED: Stoppages - Collapse or damage to water, drain, gas, waste or vent lines causedby freezing or roots - Faucets and fixtures - Bathtubs and showers - Shower enclosures and basepans - Sinks - Toilet lids and seats - Caulking or grouting - Septic tanks - Water softeners -Pressure regulators - Inadequate or excessive water pressure - Flow restrictions in fresh water linescaused by rust, corrosion or chemical deposits - Sewage ejector pumps - Holding or storage tanks- Saunas or steam rooms - Hose bibs - Whirlpool jets - Sump pumps.

NOTE: AHS will provide access to plumbing systems through unobstructed walls, ceilingsor floors, only, and will return the access opening to a rough finish condition.With respectto concrete covered, embedded, encased, or otherwise inaccessible plumbing systems,AHS will pay no more than $500 per contract term for access, diagnosis and repair or

replacement. AHS’s authorized service contractor will close the access opening and returnto a rough finish condition, subject to the $500 limit indicated. AHS shall not beresponsible for payment of the cost to remove and replace any built-in appliances,cabinets, floor coverings or other obstructions impeding access to walls, ceilings or floors.

10. ELECTRICAL SYSTEMCOVERED: All components and parts, except:

NOT COVERED: Fixtures - Doorbells - Alarms - Intercoms - Central vacuum systems -Inadequate wiring capacity - Power failure or surge - Direct current (D.C.) wiring or components- Built-in exhaust fans.

S A M P L E C O N T R A C T

G. MULTIPLE UNITS AND INVESTMENT PROPERTY

1. If this contract is for a duplex, triplex, or fourplex dwelling, then every unit within such dwellingmust be protected by an AHS contract for protection to apply to common systems. Should anyunit within such dwelling not be protected by an AHS contract, then there is no protection forcommon systems.

2. If this contract is for a dwelling within a multiple unit of five (5) dwelling units or more, thenonly items contained within the confines of each individual unit are protected. Common systemsand appliances are excluded.

3. Except as otherwise provided in this section, common systems and appliances are not protected.

1. If the covered property changes ownership during the contract term, please call 1-800-735-4663 for further information to transfer coverage to the new owner.

2. This contract may be renewed at the option of AHS and where permitted by state law. In thatevent, you will be notified of the prevailing rates and terms for renewal.

F. BUILDING AND ZONING CODE REQUIREMENTS OR VIOLATIONS

AHS is not responsible for any upgrades, work or costs required to comply with any federal,state, or local laws, regulations or ordinances or utility regulations, or to meet current buildingor zoning code requirements, or to correct for code violations. AHS is not responsible forservice when permits cannot be obtained, nor will it pay any costs relating to permits. AHS will

not contract to perform service nor pay costs involving hazardous or toxic materials including,but not limited to, asbestos, mold, lead paint, and sanitation of sewage spills, nor will it pay costsrelated to recapture or disposal of refrigerants, contaminants, hazardous, or toxic materials. AHSwill only pay costs related to freon recapture if it is part of your coverage plan.

Cancellation of Service Contract – The contract holder may return the service contract withinthirty (30) days of the time this contract is mailed or within twenty (20) days of delivery if theservice contract is delivered to the contract holder at the time of escrow. If no claim has beenmade, this contract is deemed void and the provider shall refund to the provider of funds the fullpurchase price of the service contract. If a claim has been made, any refund due may be creditedto any outstanding balance of the amount and any excess shall be refunded to the provider offunds. The right to void the contract is not transferable and shall apply only to the originalcontract purchaser and only if no claim has been made prior to its return to the provider. A tenpercent (10%) penalty per month shall be added to a refund that is not paid or credited withinforty-five (45) days after the return of the service contract to the provider.

If the provider cancels the contract, the provider shall mail a written notice that states the effectivedate of cancellation to the contract holder at the last known address of the contract holdercontained in the records of the provider at least five (5) days prior to the cancellation by theprovider. Prior notice is not required if the reason for cancellation is nonpayment of the providerfee, a material misrepresentation by the contract holder to the provider, or a substantial breach ofduties by the service contract holder relating to the covered product or its use.

If the contract is cancelled by the provider, the provider of funds shall be entitled to a pro ratarefund of the paid contract fees for the unexpired term, less administrative fees of up to $30.00 forissuance of this contract, and less any balance owed to the provider including claims costs.

H. TRANSFER OF CONTRACT AND RENEWALS

I. CANCELLATION

Obligations of the provider under this service contract are backed by the full faith and credit ofthe provider.

J. MISCELLANEOUS

© 2003 American Home Shield CorporationHIH103

Form No. 94105 HITD/275 07/03

service due to conditions beyond its control, including but not limited to, delays in obtaining partsor equipment and labor difficulties.

8. AHS is not liable for repair of conditions caused by chemical or sedimentary build up, misuseor abuse, failure to clean or maintain, missing parts, structural changes, fire, freezing, electricalfailure or surge, water damage, lightning, mud, earthquake, soil movement, storms, accidents, petdamage, pest damage, acts of God, or failure due to excessive or inadequate water pressure.

9. AHS has the sole right to determine whether a covered system or appliance will be repaired orreplaced. AHS is responsible for installing replacement equipment of similar features, capacity,and efficiency, but not for matching dimensions, brand or color. AHS is not responsible forupgrades, components, parts, or equipment required due to the incompatibility of the existingequipment with the replacement system or appliance or component, or part thereof or with newtype of chemical or material utilized to run the replacement equipment including, but not limitedto, differences in technology, refrigerant requirements, or efficiency as mandated by federal, state,or local governments. Nor is AHS responsible for the cost of construction, carpentry, or othermodifications made necessary by existing equipment or installing different equipment.

10. AHS is not responsible for repairs related to inadequacy, lack of capacity, improperinstallation, previous repair or design, manufacturer’s defect, and any modification to the systemor appliance. AHS does not perform routine maintenance.You are responsible for providingmaintenance and cleaning on covered items as specified by the manufacturer to ensure continuedcoverage on such items. For example: heating and air conditioning systems require periodiccleaning and/or replacement of filters and cleaning of evaporator and condensing coils. Waterheaters require periodic flushing.

11. AHS reserves the right to obtain a second opinion at its expense.

12. AHS is not responsible for repair or replacement of systems and appliances classified by themanufacturer as commercial.

13. AHS is not responsible for any repair, replacement, installation, or modification of any coveredsystem or appliance arising from a manufacturer's recall of said covered items, nor any covereditem while still under an existing manufacturer's, distributor's, or in-home warranty.

14. AHS reserves the right to provide cash back in lieu of repair or replacement in the amount ofAHS's actual cost (which at times may be less than retail) to repair or replace such item subject tothe terms of the contract.

15. AHS reserves the right to rebuild a part or component, or replace with a rebuilt part or component.

16. AHS is not responsible for the repair or replacement of any system or appliance or componentor part thereof that has been previously, or is subsequently, determined to be defective by theConsumer Product Safety Commission or the manufacturer and for which either has issued, orissues, a warning or recall, or which is otherwise necessitated due to failure caused by themanufacturer’s improper design, use of improper materials, formula, manufacturing process orother manufacturing defect.

17. AHS is not under any circumstances responsible for the diagnosis, repair, removal orremediation of mold, mildew, rot or fungus, or any damages resulting from or related to mold,mildew, rot or fungus, even when caused by or related to the malfunction, repair or replacement ofa covered system or appliance.

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