1. EXISTING DAMAGE

      Bug Busters, Inc. is not responsible for the repair of either visible damage or hidden damage as of the date of this Agreement or occurring prior to the Repair Effective Date. Damage discovered after the Repair Effective Date with no verified live and active infestation present shall be deemed to have been caused prior to that date. Because damage may be present in areas which are inaccessible to visual inspection, Bug Busters, Inc. does not guarantee that the damage disclosed on the inspection graph represents all of the existing damage as of the date of this Agreement.

  1. FUTURE DAMAGE, LIMITATION OF LIABILITY

Under this agreement, Bug Busters, Inc. has not treated the property with termiticide, and is not required to treat the property and is only obligated to provide further Bug Busters, Inc. Termite Baiting System treatment if deemed necessary by Bug Busters, Inc. In consideration of sums charged by Bug Busters, Inc. hereunder and as a liquidated damage and not as a penalty, and NOTWITHSTANDING ANY AGREEMENT, TORT OR OTHER CLAIM THAT BUG BUSTERS, INC. SHALL NOT HAVE PROPERLY PERFORMED ITS DUTIES TO PURCHASER, THE SOLE RESPONSIBILITY OF BUG BUSTERS, INC. IN THE EVENT OF A CLAIM SHALL BE TO PROVIDE FURTHER BUG BUSTERS, INC. BAITING SYSTEM TREATMENT FOUND NECESSARY BY BUG BUSTERS, INC. FREE OF CHARGE AND TO ARRANGE FOR THE NECESSARY REPAIRS OR REPLACEMENT BY A CONTRACTOR OF ITS CHOICE AND PAY THE ENTIRE COST OF LABOR AND MATERIALS FOR NEW LIVE SUBTERRANEAN TERMITE DAMAGE OCCURRING AFTER THE “REPAIR EFFECTIVE DATE” TO THE EXTENT PROVIDED HEREIN. PURCHASER EXPRESSLY RELEASES BUG BUSTERS, INC. FROM, AND AGREES TO INDEMNIFY BUG BUSTERS, INC. WITH RESPECT TO ANY

OTHER OBLIGATION TO PURCHASER WHATSOEVER. Bug Busters, Inc. is not responsible for any repair or replacement of damage to the Structures unless arranged for by Bug Busters, Inc. or authorized to be performed in its entirety in writing by an officer of Bug Busters, Inc., and any other unauthorized repair and/or replacement will terminate the liability of Bug Busters, Inc. for the repair of any such damage to the Structures automatically without further notice. THIS PLAN DOES NOT GUARANTEE, AND BUG BUSTERS, INC. DOES NOT REPRESENT, THAT TERMITES WILL NOT RETURN.

  1. CHEMICAL INFORMATION WARNING

Virtually all pesticides have some odor which may be present for a period of time after application. If you or any member of your household believes you have a sensitivity to chemical odor or chemicals, Bug Busters, Inc. recommends that you not have an initial or a subsequent service performed at your premises until you have consulted with your family physician. At your request, Bug Busters, Inc will provide information about the chemicals to be used in treating the premises.

  1. WATER LEAKAGE

Water leakage in interior areas or through the roof of exterior walls of the Structures is conducive to a new infestation. Purchaser is responsible to making timely repairs as necessary to stop the leakage. Purchaser’s failure to make timely repairs will terminate this Agreement automatically without further notice. Bug Busters, Inc. shall have no responsibility for repairs with respect to water leakage.

  1. ADDITIONS, ALTERATIONS

This agreement covers the Structures described on the Inspection Graph as of the date of the installation of the Bug Busters, Inc. Termite Baiting System. In the event the premises are structurally modified, altered, or otherwise changed, or if soil is removed or added around the foundation, or if Purchaser installs spray foam in the structure, or if Bug Busters, Inc. Termite Baiting System Stations are disturbed, Purchaser will notify Bug Busters, Inc. prior to such event and will purchase the additional treatment required by the changes incurred. Failure to do so will terminate this Agreement automatically without further notice. In the event of any such change, Bug Busters, Inc. reserves the right to adjust the annual extension charge. The failure of Bug Busters, Inc. to notify any such changes does not release Purchaser from the obligations set forth in this paragraph. Additionally, the installation of an encapsulated crawlspace will result in the void of the termite warranty.

  1. NOTICE OF CLAIMS, ACCESS TO PROPERTY

Any claim arising out of or relating to this Agreement must be made to Bug Busters, Inc. during the term of this Agreement. The only obligations of Bug Busters, Inc. to Purchaser arising out of or relating to this Agreement are to (i) install, inspect and bait the Bug Busters, Inc. Termite Baiting System and (ii) to arrange for the necessary repairs or replacement by a contractor of its choice and pay the entire cost of labor and materials for new subterranean termite damage occurring after the “Repair Effective Date” to the extent provided herein, and then only if a valid claim is made during the term of this Agreement. In the event of any claim by Purchaser for anything other than for Bug Busters, Inc. to install, inspect and/or bait the Bug Busters, Inc. Termite Baiting System and/or to pay the entire cost of labor and materials for new subterranean termite damage occurring after the “Repair Effective Date” to the extent provided herein. Purchaser shall pay all the costs and expenses to Bug Busters, Inc. including, but not limited to, attorney’s fees relating to or arising out of such claim. Purchaser must allow Bug Busters, Inc. access to the Structures for any purpose contemplated by this Agreement, including but not limited to reinspection’s, whether the inspections were requested by the Purchaser or considered necessary by Bug Busters, Inc. The failure to allow Bug Busters, Inc. such access will terminate this Plan without further notice.

  1. FORCE MAJEURE

The liability of Bug Busters, Inc. under this agreement will be terminated if Bug Busters, Inc. is prevented from fulfilling its responsibilities under the terms of this Agreement by reason of delays in transportation, shortages of fuel and/or materials, strikes, embargos, fires, floods, quarantine restrictions, earthquakes, hurricanes, or any other act of God or circumstances or cause beyond the control of Bug Busters, Inc.

  1. DISCLAMER

This Agreement provides for treatment and retreatment (using the Bug Busters, Inc. Termite Baiting System) for subterranean (ground) termites (Reticulitermes spp., Heterotermes spp.) only. This agreement does not provide any treatment for drywood termites (Kalotermes spp., Crypotermes spp.), aerial (above ground) infestations of any kind, Formosan termites (Coptotermes formosanus), beetles, wood destroying fungus or any other wood destroying organisms.

The Agreement does not cover and Bug Busters, Inc. will not be responsible for damage resulting from or services required for:

  1. Any and all damage resulting from termites and/or any other wood destroying organisms except as specifically provided herein.
  2. Moisture conditions, including but not limited to any types of fungal damage (fungal growth/Mold) and/or water leakage caused by faulty plumbing, roofs, gutters, downspouts and/or poor drainage.
  3. Masonry failure or grade alterations
  4. Crawlspace encapsulation installation
  5. Spray foam installation in/or around the structure
  6. Inherent structural problems, including but not limited to, wood to ground contacts and wood rot to structure.
  7. Termites entering any rigid foam, stucco, wooden or cellulose containing component in contact with the earth and the Structures regardless of whether the component is a part of the Structures.
  8. The failure of Purchaser upon notice from Bug Busters, Inc. to promptly cure at Purchaser’s expense any condition which prevents proper treatment or inspection or is conducive to termite infestation.

BUG BUSTERS, INC. DISCLAIMS AND SHALL NOT BE RESPONSIBLE FOR ANY LIABILITY FOR DIRECT, INDIRECT, SPECIAL, INCIDENTAL, CONSEQUENTIAL OR LOSS OF QUIET ENJOYMENT DAMAGES. THE OBLIGATIONS OF BUG BUSTERS, INC. TO PROVIDE FURTHER BUG BUSTERS, INC. TERMITE BAITING SYSTEM TREATMENT FOUND NECESSARY BY BUG BUSTERS, INC. FREE OF CHARGE AND TO ARRANGE FOR THE NECESSARY REPAIRS OR REPLACEMENT BY A CONTRACTOR OF ITS CHOICE AND PAY THE ENTIRE COST OF LABOR AND MATERIALS FOR NEW SUBTERRANEAN TERMITE DAMAGE OCCURRING AFTER THE REPAIR EFFECTIVE DATE TO THE EXTENT PROVIDED HEREIN AND AS

SPECIFICALLY STATED IN THE AGREEMENT ARE GIVEN IN LEIU OF OTHER OBLIGATION OR RESPONSIBILITY, EXPRESS OR IMPLIED, INCLUDING ANY REPRESENTATION OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.

  1. CHANGE IN LAW

Bug Busters, Inc. performs its services in accordance with the requirements of federal, state, and local law. In the event of a change in existing law as it pertains to the services herein, Bug Busters, Inc. reserves the right to revise the annual extension charge or terminate this Agreement.

  1. NON-PAYMENT, DEFAULT

In case of default by the Purchaser, Bug Busters, Inc. has the right to terminate this Agreement.

  1. ENTIRE AGREEMENT

This Termite Plan, these Terms and Conditions and the Inspection Graph constitute the entire Agreement between the parties and no other representations or statements will be binding upon the parties.

  1. MEDIATION/ARBITRATION

THE PURCHASER AND BUG BUSTERS, INC. AGREE THAT ALL MATTERS IN DISPUTE BETWEEN THEM, INCLUDING BUT NOT LIMITED TO ANY CONTROVERSY OR CLAIM BETWEEN THEM ARISING OUT OF OR RELATING TO THIS AGREEMENT, TO ANY WOOD DESTROYING INSECT REPORT WITH RESPECT TO THE STRUCTURES. ANY SERVICES PROVIDED BY BUG BUSTERS, INC. OR OTHERWISE TO THE STRUCTURE IN ANY WAY, WHETHER BY VIRTUE OF AGREEMENT, TORT OR OTHERWISE, SHALL BE SETTLED EXCLUSIVELY BY ARBITRATION. THE PARTIES ACKNOWLEDGE, AGREE AND UNDERSTAND THAT BY AGREEING TO MANDATORY ARBITRATION, THEY ARE FOREVER FORGOING THEIR RIGHT TO

BRING THEIR CLAIM IN COURT AND TO HAVE THEIR DISPUTE DECIDED BY A JUDGE OR JURY. Such arbitration shall be conducted in accordance with the Commercial Arbitration Rules then in force of the American Arbitration Association. The arbitrator(s) shall be bound by rules of substantive law and shall not be bound by the rules of evidence, whether or not set out by statue, except for provisions relating to privileged communications. The arbitrator shall give effect to any and all waivers, releases, disclaimers, limitations and other terms and conditions of this Agreement. Therefore, the award shall not, and the arbitrator shall not have the power or authority to hold Bug Busters, Inc. responsible for (i) the repair or replacement of any termite damage to Structures other than to arrange for the necessary repairs or replacement by a contractor of its choice and pay the entire cost of labor and materials for new subterranean termite damage occurring after the “Repair Effective Date” to the extent provided herein (ii) loss of anticipated rents and/or profits or loss of quiet enjoyment, (iii) punitive, exemplary or treble damages or (iv) attorney fees. Each party shall be responsible for paying any attorney’s fees, expert witness fees and other expenses it incurs on its behalf in connection with the arbitration, plus one-half the arbitrator’s fee and one half of any expenses incurred by the arbitrator, and the award shall assess the arbitrator’s fees and expenses accordingly. Any award of damages pursuant to such arbitration shall be included in a written decision which shall state the reasons upon which the award was based, including all elements involved in the calculation of any award of damages. The decision of the arbitrator shall be a final and binding resolution of the disagreement which may be entered as a judgement by any court of competent jurisdiction. Each party consents to the personal jurisdiction and venue of the courts arbitration provision or of the arbitrator’s decision and a party violating this provision shall pay the party’s costs, including but not limited to, attorney’s fees, with respect to such suit and the arbitration award shall so provide. The parties acknowledge that this agreement evidences a transaction involving interstate commerce. The Federal Arbitration Act shall govern the interpretation, enforcement, and proceedings pursuant to this agreement.

  1. LIMITED ASSIGNABILITY

This Agreement is assignable by Purchaser to a new owner of the property for a period of one year from the effective date of this Agreement and thereafter, upon the written request of the Purchaser, and only in the sole discretion of Bug Busters, Inc. after its inspection of the property which consent, if given, shall be in writing signed by Bug Busters, Inc. and accepted in writing by Purchaser.

  1. OWNERSHIP OF BUG BUSTERS, INC. TERMITE BAITING SYSTEM COMPONENTS

The Purchaser understands that all of the components of the Bug Busters, Inc. Termite Baiting System (“Components”) are and will remain the property of the manufacturer. The Purchaser has no ownership rights to any of the Components, other than the right to their use as installed by Bug Busters, Inc. under this Plan on the Structures. Upon the expiration or termination of the Plan, Bug Busters, Inc. or its authorized representatives are authorized by Purchaser to retrieve from Purchaser’s premises the System Stations and other Components contained therein for appropriate disposition. If Bug Busters, Inc. for whatever reason, ceases to use the Bug Busters, Inc. Termite Baiting System, Bug Busters, Inc. will:

  1. so, notify Purchaser.
  2. offer Purchaser the alternative of either using a different system of termite protection or control or discontinuing this Plan; and

retrieve the Components from Purchaser’s premises.