SILVER CONTRACT DESCRIPTION

Purchase of the residential service contract is optional. Buyer may purchase another service contract through other residential service companies or insurance companies authorized to transact business in Texas.

A. BASE CONTRACT COVERAGE

Everything Residential will arrange for a service contractor to repair, replace or maintain the systems and appliances set forth in the terms and conditions of this contract. These services will be performed during the period specified unless a renewal contract is executed or additional years are purchased at closing. Pre-service contract inspections may be required, at your expense, prior to claims being made.

COVERAGE INCLUDES ONLY THE ITEMS STATED AS COVERED (SUBJECT TO CERTAIN LIMITATIONS AND CONDITIONS) AND EXCLUDES ALL OTHERS. PLEASE READ YOUR CONTRACT CAREFULLY.

1. This contract covers a single-family residential unit. This unit may be a condominium, townhouse, a home or a single unit of a multiple structure.

2. All covered items must be within the perimeter of the home or garage (except: pool, spa, lawn sprinkler and air conditioning equipment and other elected options.)

3. For properties over the defined contract limits or multiple units please call Everything Residential for a quote.

4. Buyer's coverage begins at close of sale, provided contract fee is paid and accepted by Everything Residential, and continues for one (1) year after close of sale unless optional years of coverage are selected and paid.

B. DESCRIPTION OF BASIC COVERAGE

ELECTRICAL AIR-CONDITIONING SYSTEM(S)

NOTE: Not Exceeding Five (5) Ton Capacity Per Unit

COVERED: Ducted electrical central air conditioning, including heat pumps. All components and parts, grills, registers, inclusive of 13 SEER mandated equipment upgrades, except:

NOT COVERED: Electronic air-cleaners Condenser cooling pads Window units Humidifiers Geothermal systems Chilled water systems Gas air-conditioning systems Non-ducted wall units Flues Vents Filters Digital thermostats - Dampers, damper motors and special controls for zoned systems- Improperly sized or mismatched systems Any prior or pre-existing refrigerant leaks Failures as a result of rust and corrosion for the first thirty (30) days of contract Stoppages of condensate drain lines (unless optional stoppage coverage is purchased) Any masonry or carpentry repair or modification - Crane or any other excessive costs to service rooftop or otherwise unusually located equipment.

Note: In case of complete system replacement due to 13 SEER governmental mandates, the company will be responsible for a maximum of two (2) systems per contract year. If any carpentry, structural or roofing services are required due to specifications of the new equipment, Everything Residential will not be responsible for those items. Such items will be the responsibility of the contract owner. If Everything Residential’s work is contingent upon work by others, at the expense of the contract owner, then Everything Residential’s work will not be scheduled until said work is completed. Failure on the part of the contract owner to have the necessary work completed will void the responsibility of Everything Residential to perform the respective work.

HEATING SYSTEM(S)

COVERED: Ducted central heating systems including all components and parts necessary for the operation of the system (Including heat pumps which cool or heat the home), grills- registers, inclusive of 13 SEER mandated equipment upgrades, except:

NOT COVERED: Portable units Solar heating systems Fireplaces and key valves Electronic air-cleaners Clocks Timers Humidifiers Geothermal systems (all components) Treated or other heated water systems Boilers Radiant heating systems Wood stoves Pellet stoves Flues Vents Filters Pre-existing cracks or failures of heat exchangers Digital thermostats Dampers, damper motors and special controls for zoned systems - Failures as a result of rust and corrosion for the first thirty (30) days of the contract Any prior or pre-existing refrigerant leaks (heat pump related components). Crane or any other excessive costs to service rooftop, or otherwise unusually located equipment.

Note: In case of complete system replacement due to 13 SEER governmental mandates, the company will be responsible for a maximum of two (2) systems per contract year. If any carpentry, structural or roofing services are required due to specifications of the new equipment, Everything Residential will not be responsible for those items. Such items will be the responsibility of the contract owner. If Everything Residential’s work is contingent upon work by others, at the expense of the contract owner, then Everything Residential work will not be scheduled until said work is completed. Failure on the part of the contract owner to have the necessary work completed will void the responsibility of Everything Residential to perform the respective work.

EASTERN SUBTERRANEAN TERMITE TREATMENT

NOTE: Available on single-family homes and attached mother-in-law units, only. Outbuildings are not included in this coverage unless they are included as an option.

COVERED: Treatment only for Eastern Subterranean Termite infestation limited to the termite infested area of the main foundation of the home, including the attached garage and attached mother-in-law unit, except:

NOT COVERED: Infestation in decks, fencing or any infestation outside the confines of the main foundation of the home or garage. Repair of damage caused by Eastern Subterranean Termites, consequential or secondary damage. If a Termite Inspection is requested, a $75.00 fee, plus applicable tax, will be due at the time of inspection. If termite infestation is found, a licensed pest control company will provide an acceptable partial treatment method to treat the area of infestation for $200.00 (subject to appropriate tax) and the Termite Inspection fee will be waived. Should repeat visits for Eastern Subterranean Termite infestation be required, the licensed pest control company will provide additional treatment of the infestation for the term of this contract at no additional charge. Other forms and methods of treatment (including treatment of the entire house) may be available from the licensed pest control company at additional cost. This contract does not cover such other forms and methods oftreatment including, but not limited to, any termite baiting system; it only covers the treatment method defined as partial treatment under the Texas Structural Pest Control Board Regulations.

DUCTWORK

NOTE: If defective ductwork is inaccessible in walls, ceilings and floors (except concrete encased) the company will access, repair and return opening to rough finish condition. If ductwork is concrete encased the company will pay no more than $600.00 per contract for access, diagnosis and repair or replacement. The company will close the access and return to a rough finish condition subject to the limitation.

COVERED: Ducts from HVAC unit to point of attachment at registers or grills, except:

NOT COVERED: Insulation - Improperly sized ductwork - Damage caused by structural movement - Damage caused by animals or Replacement of ductwork deemed defective due to manufacturer’s recall Cleaning Any masonry or carpentry related repair or modification.

PLUMBING

COVERED: Leaks and breaks of water, drain, gas, waste, vent lines (except if caused by freezing or foundation movement) Toilet tanks and mechanisms (except mechanisms for one piece toilets) Bowls Toilet wax ring seals Valves for shower Faucets Valves Angle stops Risers and gate valves Hydro-therapy or jetted bathtub motor and pump assemblies only (no other components) ,except:

NOT COVERED: Bathtubs and showers Shower enclosures and base pans Drain connection to shower pan - Sinks Toilet lids and seats Fixtures Tub and diverter valves Hose bibs - Caulking or grouting Septic tanks Water softeners Pressure regulators Inadequate or excessive water pressure Sewer ejector pumps Holding or storage tanks Collapse or damage to waste, water, drain, gas, vent lines caused by roots, freezing or foundation movement. Flow restrictions in fresh water lines and/or fixtures and toilets caused by rust, corrosion, or chemical deposits Gas leaks associated with flexible gas plumbing Fireplace key valves Fireplace gas logs - Any steam related plumbing or components Toilet to floor attachment Power flush toilets Electrically controlled or operated toilets Internal mechanisms for one-piece toilets - Consequential or secondary damage Any masonry or carpentry repair or modifications Flex water line to refrigerator.

NOTE: With respect to concrete encased or any inaccessible plumbing the company will pay no more than $ 600.00 per contract year for access, diagnosis and repair or replacement. The authorized contractor will close the access opening and return to a rough finish condition, subject to the limit stated above. With respect to hydro-therapy tub service, the contract owner is responsible for providing access and closing access to the equipment.

Note: Cracks in toilet tanks, bowls, and lids are not considered normal wear and tear items and are not covered.

SUMP PUMP
Permanently installed sump pump for ground water only.

COVERED: All components and parts, except:

NOT COVERED: Damage caused by power surge or failure Consequential or secondary damage..

WATER HEATER(S) (GAS OR ELECTRIC)

COVERED: All components and parts of a tank type water heater, except:

NOT COVERED: Solar water heaters Solar components Holding or storage tanks Flues and vents Insufficient capacity Smell Upgrade code requirements Any local requirements to obtain permit, when required Circulating pumps Premium for oversized (in excess of 50 gallon) water heaters and/or requiring two technicians to install Labor premium for unusually installed water heaters Tankless water heater Point of use appliances or heaters Consequential or secondary damage.

ELECTRICAL SYSTEM

COVERED: All components and parts, including built-in exhaust fans (units such as combination fan/light/heater are considered fixtures and are not covered), except:

NOT COVERED: Fixtures Separate appliances, such as but not limited to: Intercoms Alarms Alarm wiring - G.F.C.I. A.F.C. devices - Central vacuum systems Garage door openers Gate openers Septic electrical equipment Sprinkler system electrical equipment Low voltage exterior lighting systems. Also, excluded are direct current wiring or components and electrical related equipment related to outbuildings or electric fences. This contract does not include coverage for special wiring such as but not limited to: Computer wiring Phone wiring Cable wiring Low voltage wiring Multi-media or theater wiring - Inaccessible aluminum wiring failures Full replacement of non-serviceable main panels (i.e. like Federal Pacific) - Doorbells. Any masonry or carpentry related repair or modification Consequential or secondary damage.

Note: Access to the equipment must be provided by contract owner.

DISHWASHER (BUILT-IN OR PORTABLE)

COVERED: All components and parts, except:

NOT COVERED: Damage caused by power surge or failure Racks and rollers - Consequential or secondary damage.

Note: Access to the equipment must be provided by contract owner.

GARBAGE DISPOSAL

COVERED: All components and parts.

BUILT-IN MICROWAVE OVEN

COVERED: All components and parts, except:

NOT COVERED: Damage caused by power surge or failure. Obsolete equipment will be repaired or rebuilt, if possible, but will not be replaced under this contract. If not able to be repaired or rebuilt, an allowance for the defective parts and associated labor will be provided.

Note: Coverage for diagnosis, access, repair or replacement of built-in microwave oven is limited under this contract to a maximum of $500.00 per contract year.

Note: Access to the equipment must be provided by contract owner.

RANGE/OVEN/COOKTOP (GAS OR ELECTRIC, BUILT-IN OR FREE STANDING)

COVERED: All components and parts.

NOT COVERED: Damage caused by power surge or failure. Clocks and timers. Obsolete equipment will be repaired or rebuilt, if possible, but will not be replaced under this contract. If not able to be repaired or rebuilt, an allowance for the defective parts and associated labor will be provided.

Note: Coverage for diagnosis, access, repair or replacement of appliances in this section is limited under this contract to a maximum of $1,500.00 per contract year.

Note: Access to the equipment must be provided by contract owner.

TRASH COMPACTOR (BUILT-IN OR PORTABLE)

COVERED: All components and parts.

NOT COVERED: Damage caused by power surge or failure.

ROOF LEAK COVERAGE
The service fee is $200.00 per occurrence.

COVERED: Leaks must occur during coverage period for coverage to apply. The repair of specific roof leaks that occur in the roof of the occupied living and storage area of the home. That includes garage and porches/patios but does not include outbuildings, unless they are selected as an option and paid for. The leak must be a result of normal wear and tear and/or deterioration and the roof must have been in watertight and otherwise good condition on the effective date of this service contract.

NOT COVERED: Leaks resulting from high winds or hail are not a part of this coverage - Leaks that occur in a deck or balcony when said deck or balcony serves as the roof of the structure below - Leaks caused by missing and/or broken shingles or tiles - Leaks that result from or are caused by roof mounted installations - Skylights Roof jacks - Improper construction or repairs - Damage caused by persons walking or standing on the roof - Failure to perform normal maintenance to roof and gutters - Leaks manifested prior to the effective date of the contract, or other casualty related damage - Chimney leaks and/or leaks caused by chimney movement Leaks caused by movement of the structure - Leaks related to flat roofs or metal roofs - Leaks resulting from the lack of or improper installation of flashing or counter flashing. LIMITS: This coverage is provided to repair leaks and does not include coverage to replace roof covering in excess of ten square feet (per claim) nor does it include coverage to replace any substructure including but not limited to decking and/or roof framing. In the event the roof has exceeded its’ life expectancy and must be replaced, this coverage does not apply. Roof repairs will be limited to $1,000.00 per contract for diagnosis, labor, and materials. This contract does not include consequential or subsequent damage from roof leaks nor does it include any cleanup coverage for roof leaks. This contract is not intended to overlap any other forms of insurance. Under no-circumstances will the dollar limitation be applied toward roof replacement.

C. OPTIONAL COVERAGES

MULTIPLE YEAR OPTIONAL COVERAGE
Extends coverage for additional years.

POOL AND/OR SPA EQUIPMENT

COVERED: Both pool and spa (including exterior hot tub or whirlpool) are covered if they utilize common equipment. If they do not utilize common equipment, then only one or the other is covered unless an additional fee is paid. Coverage applies to all above ground components and parts of the heating, pumping and filtration systems. Also, includes all above ground electrical and piping.

NOT COVERED: Lights Liner Concrete-encased or underground electrical Under- ground plumbing or gas lines Cleaning equipment including sanitization equipment and specifically saline related equipment Chlorinators, ozonators and other water chemistry control equipment and materials - Structural defects Solar equipment Jets. In addition, disposable filtration mediums Pool sweep and pool sweep pump and motor - D/E filter grids Ornamental fountains or waterfalls and their related lighting, timer and pumping system Pool covers and related equipment Portable or above ground spas Computer control panels –Control panels or controls inside the home - Electrically operated values Failures caused by power surge or failure Training sessions Freeze guard devices Freeze damage Consequential or secondary damages.

Note: Pool/spa heater repair and/or replacement limited to $1,000.00 per contract year.

SECOND POOL AND/OR SPA EQUIPMENT
SAME COVERAGE AS ABOVE

KITCHEN REFRIGERATOR

COVERED: All components and parts, including integral freezer unit - Icemakers, except:

NOT COVERED: Ice crushers Food spoilage Beverage and/or water dispensers and their related equipment Liners Shelves - Racks Built in TV or audio equipment.

Note: Coverage for diagnosis, access, repair or replacement of refrigerators is limited under this contract to a maximum of $1,500.00 per contract year.

Note: The water supply line to the refrigerator is only made a part of this contract when associated refrigerator coverage is selected.

SECOND REFRIGERATOR/FREEZER
SAME COVERAGE AS ABOVE

GARAGE DOOR OPENER

COVERED: Internal wiring Motor Switches Receiver unit –Opener - Track drive assembly- Remote Transmitters, except:

NOT COVERED: Door All door components including springs, cables, tracks and rollers Door adjustments Door maintenance Units not meeting current safety standards Consequential or secondary damage.

CLOTHES WASHER/DRYER

COVERED: All components and parts, except:

NOT COVERED: Venting and damage to clothing Failure caused by power surge or failure.

STOPPAGE COVERAGE

NOTE: Accessible ground level cleanout required

COVERED: Clearing of stoppages in sewer, condensate drains and vent lines up to 100 feet from access, except if caused by foundation movement or roots, except:

NOT COVERED: Stoppages due to roots - Caused by foundation movement - Costs to access drain or sewerlines from vents or from the removal of a fixture - Costs to access or install a ground level cleanout - Septic tanks and/or septic tank pumping Consequential or secondary damage.

LAWN SPRINKLER SYSTEM

COVERED: All components of the lawn sprinkler system, except:

NOT COVERED: Municipal code requirements to upgrade system - Installation of equipment or components that were never a part of the system (example: backflow preventers or added heads for coverage) - Repairs required due to freezing, pet damage, damage by automobiles or lawn equipment - Modification of system due to electrical surge or insect damage - Any drip irrigation systems - Head adjustment Batteries Failure due to power surge or failure.

DETACHED BUILDINGS

NOTE: This includes garages, garages with apartment, cabana, guesthouse, shop, and shop with apartment. The coverage associated with the main contract applies. Options included in the main contract are also included at no additional cost in the Detached Building optional coverage. Each building carries its own option coverage.

COVERED: All provisions associated with the main contract apply - Optional coverage associated with the main contract applies as well as to the detached building, except :

NOT COVERED: All exclusions and limitations associated with the main contract apply - Additional exclusions are as follows: Inadequate water supply - Inadequate power supply - Inadequate wastewater capacity.

GATE OPENER

COVERED: All parts and components, except:

NOT COVERED: Gate components Damage by pets, animals, vehicles, misuse or abuse Also excluded are batteries and remote sending units and consequential or secondary damages Damage caused by power surge or failure Damage caused by gate or gate components.

FREE-STANDING ICEMAKER

COVERED: All parts and components, except:

NOT COVERED: Secondary water damage - Malfunctions or Repairs made necessary by mineral or chemical deposits - Noise - Insufficient capacity - Failure due to power surge of failure.

Note: Access to the equipment must be provided by contract owner.

SEPTIC TANK PUMPING
The service fee is $100.00 per tank pumped.

COVERED: Mainline stoppages from the limits of the foundation to the septic tank/tanks (accessible ground level cleanout is required). If the stoppage is due to septic backup we will pump the tank/tanks, except:

NOT COVERED: Collapsed or broken mainline from the limits of the foundation to the tank/tanks - Stoppage in the mainline caused by roots - Stoppage caused by mainline shifting due to foundation or tank/tanks movement or settling. In the case of abandonment of the septic system in order to hook up to municipal sewer the company has no responsibility. Tanks lateral or leach lines or beds, any mechanical/electrical pump or any components of the pumping system. Chemical treatment of the tank/tanks or lines.

WELL PUMP

COVERED: All parts and components of a well pump utilized as the main source of portable water to the home, except:

NOT COVERED: Any and all components other than the well pump - If the well pump failure is caused by deficiencies or defects in the system then said defects or deficiencies must be repaired prior to coverage of a new pump. Replacement of the pump may be the responsibility of the contract owner - Failures due to power surge or shortage - Failure or deficiencies caused by lack of capacity.

TWICE A YEAR A/C HEAT-SERVICE
NOTE: This service has no service fee.

COVERED: The company will schedule and perform, at the customer’s request, twice a year maintenance service on the A/C and heating systems.

D. SERVICE (TRADE) CALLS (or Customer Service)

1. The contract owner must notify Everything Residential of malfunction of covered equipment by calling (800) 592-7902 as soon as the problem is discovered. Everything Residential will not reimburse you for services performed without authorization. Everything Residential has the right to select the service contractor to perform the work. Evidence of recent attempted repair by others voids the claim. You must call us for service prior to the expiration of this contract. Notice of any malfunction must be given prior to expiration of contract.

2. Under normal conditions Everything Residential will initiate service within forty-eight hours during business hours (not including weekends or holidays).

3. The homeowner is responsible for paying a $35 service fee per claim for the first two claims. Service fees in excess of two will be a rate of $100.00 per claim. Failure to cancel a scheduled trade call by the contract owner, without a 4 hour notice to Everything Residential, will result in another service charge to be paid by the contract owner. The service trade call fee will be due and payable to Everything Residential before a contractor is dispatched. There is a one time $200 service fee for termite treatment and a $200 service fee for each roof leak service call, payable to the contractor. The customer will not be charged for more than one termite service call fee for the term of the contract. There is also a $100 service fee per tank for septic pumping, payable to the contractor.

4. Everything Residential will determine what repairs constitute an emergency and will make reasonable efforts to expedite emergency service. Overtime fees are the responsibility of the contract owner. If you should request Everything Residential to perform non-emergency service outside of normal business hours, you will be responsible for payment of additional fees, including overtime, based on contractor availability.

5. If service work performed under this contract should fail, then Everything Residential will provide a courtesy recall without an additional service call fee for a period of 30 days on parts and 30 days on labor.

E . CONTRACT TERMINATION AND CONTRACT TRANSFER
This contract is subject to cancellation if: contract holder defrauds or misrepresents information relating to systems or appliances covered under this contract, or if the contract holder fails to pay the service fee, or any other charge due under the terms of this contract including any portion of the repair that is the contract holder’s responsibility. If the contract is cancelled, the homeowner shall be entitled to a pro rata refund of the paid contract fee for the unexpired term, less an administrative fee of $30 and any service costs incurred by Everything Residential. If the covered property changes ownership during the contract term, please call (800) 592-7902 for further information to transfer coverage to the new owner.

F. LIMITATIONS OF LIABILITY

THIS CONTRACT IS NOT DESIGNED, NOR IS IT INTENDED, TO INCLUDE OR OVERLAP ANY COVERAGE THAT IS INCLUDED IN OR IS AN OPTION TO YOUR HOMEOWNER’S INSURANCE CONTRACT OR ANY OTHER FORM OF INSURANCE OR SERVICE CONTRACT, INCLUDING YOUR BUILDER’S WARRANTY AND ANY RESIDENTIAL SYSTEM OR APPLIANCE MANUFACTURER’S WARRANTY (COLLECTIVELY KNOWN AS “EXISTING COVERAGE”.) YOU SHOULD CONSULT YOUR EXISTING COVERAGE DOCUMENTS PRIOR TO EXECUTING THIS CONTRACT

This residential service contract is designed to repair or replace items or systems that become defective or inoperative through normal use or wear and tear, and that are included in the coverage of this particular contract and that are installed correctly and in good working order at the time the contract is issued. It is the sole discretion of the Company whether to repair or replace. The company reserves the right to have a component or part rebuilt or replaced with a rebuilt, or otherwise functioning component or part. An option to upgrade an appliance or equipment may be provided in certain instances but would be at the customer’s expense.

This contract does not include coverage for consequential or secondary damage or damage resulting from failure of items that are included in the coverage of this particular contract. This contract does not include coverage for systems or components that have been recently taken apart by others or that have missing parts. When and if our repair is contingent upon, or dependent upon, access and or repair by others in order to facilitate our repair, the repair will not be done until others do the contingent work. We will not be responsible for the payment of a service fee by the property owner. Failure to pay the appropriate service fee or any other charge due under the terms of this contract, including any portion of the repair that is the contract holder’s responsibility, will result in the contract being put in suspension until payment has been made. This may, at the discretion of Everything Residential, result in the cancellation of the contract. The expiration date will not change due to said suspension. The contract does not include protection from primary or secondary or consequential damage associated with black mold or any other mold or any other substances deemed as hazardous or dangerous. This contract does not include any form of masonry or carpentry related repair or modification.

This contract does not include coverage that would protect against or repair damage from the following: hurricanes, tornadoes, high wind, lightening, electrical failure or surge, mud, earthquakes, hail, water penetration, floods, acts of God, vandalism, pestilence or pest damage. Nor does it cover intentional or accidental damage done by the following: any person, foundation movement, pet or other animal damage, homeowner negligence, design flaws, building code violations, misuse or abuse, fire or freezing, or damage due to excessive or inadequate water pressure or substandard water quality. This contract does not include coverage or responsibility for repairs due to inadequate or lack of capacity or improper installation. There is no coverage for equipment that is apart or has had repairs begun by others. There is no coverage implied or provided for any item or system unless it is specifically stated. If the equipment in need of repair or replacement is under any form of manufacturer’s warranty or contractor’s warranty, the property owner will convey those rights to the Company and furthermore perform everything in his/her power to see that said rights are executed.

This contract does not include coverage or responsibility for upgrades, work or cost required to comply with any federal, state or local laws, regulations or ordinances or utility regulations, or to meet current building or zoning requirements, or to correct for code violations. The Company is not responsible for service when the proper permits cannot be obtained, nor will it pay for any costs relating to permits. This contract does not include coverage or responsibility to remove or dispose of or replace hazardous or toxic materials including asbestos. However, Freon or other refrigerant recapture is included and is made a part of this coverage. This contract is limited to a total expenditure of any and all service up to $25,000 per contract year.

G. RENEWALS
This contract may be renewed at the option of the Company. Contract holder will be notified of the prevailing rates and terms of renewal.

H. WAIVER
If Everything Residential waives a right under this contract, it does not waive any future rights or other rights.

I. OTHER TERMS
In the event of a dispute over coverage or claims, contract owner agrees to file a written claim and allow ten (10) working days after receipt of same to resolve the dispute. In the event that is not successful, the parties agree to mediate in good faith prior to resorting to litigation. Contact address is 519E. Abram St., Arlington, Texas 76010. (800) 592-9702. www.everythingresidential.com.

This contract is issued pursuant to license granted by the Texas Real Estate Commission, and complaints in connection with this contract may be directed to the Commission at P.O. Box 12188, Austin, Texas 78711, (512) 465-3917.

For Sales or Service, call: (800) 592-9702