California Association Compliance Inspector Endorsement

In consideration of the premium charged, it is hereby understood and agreed that the definition of Professional Services is amended to include:

California Association Compliance Inspector

Section V. DEFINITIONS is amended to include the following:

" California Association Compliance Inspector " means one who for a fee for others:

Determines the number of memberships entitled to vote and the voting power of each, in accordance with the governing documents, including the Election Rules;

Determines the authenticity, validity, and effect of proxies, if any;

Receives ballots directly from members by hand delivery or by mail;

Hears and determines all challenges and questions in any way arising out of or in connection with the right to vote;

Counts and tabulates all votes;

Determines when the polls shall close, including a reasonable extension of the ballot return date as set forth in the Board approved Ballot;

Determines the tabulated results of the election;

Performs any acts as may be proper to conduct the election with fairness to all members in accordance with Civil Code Section 5105(a) and following, the Corporations Code and the governing documents of the Association regarding the conduct of the election that are not in conflict with Civil Code Section 5105(a) and following. Without limitation, the inspector or inspectors may appoint and oversee additional persons to verify signatures and to count and tabulate votes as the inspector or inspectors deem appropriate, provided that the persons are independent third parties;

Prepares and distributes an Annual Policy Statement pursuant to Civil Code §5310;

Prepares and distributes an Annual Budget Report pursuant to Civil Code §5300;

Advises the boards of the associations to review and approve the above reports and have them reviewed by their attorneys for compliance to state law before mailing to homeowners;

When a transfer of ownership within the association occurs, prepares and distributes a Disclosure to Prospective Purchaser document pursuant to Civil Code §4525; and,

Completes homeowners association certification documents which are requested during an escrow/property sale.

All other terms and conditions of the Policy remain unchanged.

California Association Compliance Inspector Endorsement (09/16)