LOS ANGELES REMODELING
DESIGN, BUILD & REMODEL
Design, build & remodel
Better quality... Beetter price!
ALL RIGHTS RESERVED TO KOBE ENTERPRISES, INC
Offering LOS ANGELES room additions, bathroom remodeling, kitchen remodeling, roofing, flooring, interior remodeling, exterior-
remodeling and general contracting for the Los Angeles area.
HOME IMPROVEMENT AGREEMENT

THIS HOME IMPROVEMENT AGREEMENT (hereafter the “Agreement”) is entered into as of
______________, 2006 by and between KOBE ENTERPRISES, INC., a California corporation (hereafter
“Contractor”) (State Contractor’s Board License Number: ______________), whose principal place of
business is located at ________________________, and ____________________, an __________  
individual (“Owner”), whose address is as follows: with reference to the following:

A.         WHEREAS, Contractor is retained by Owner to remodel/improve the real property with an
address of _______________________ (hereafter the “Property”) specifically to
______________________________________________ (hereafter the “Project”).  

B.        WHEREAS, Contractor and Owner have agreed upon, and wish to memorialize their agreement
concerning, cost, schedule of payments, schedule of work and responsibilities of the parties.

NOW, THEREFORE, in consideration of the mutual terms, covenants and conditions contained herein,
the parties agree to be bound as follows:

1.         Description of the Project.    Consultant and Contractor expressly agree that Contractor will
perform the following services with respect to the Project:  
(a)  ___________________________________; and
(b)  ___________________________________; and                 
(c) ____________________________________.

2.         Description of Materials.    

(a)  Contractor will provide the following materials with respect to the Project:
SEE ATTACHMENT

(b)  Owner will provide the following materials with respect to the Project and will specifically not be
provided by Contractor and are not part of this Agreement:

(i)  _____________________________; and
(ii) _____________________________; and
(iii) _____________________________.

3.        Allowances:        The following items are included in the Contract Price as allowances.  The
specific price indicated beside each item is the allowance for the purchase price of those items to be
selected by Owner. Should Owner select items that total more than the allotted allowance, Contractor
shall notify Owner of such overage and Owner shall either:  (i) select replacement items whose cost fit
within the allotted allowance;  or (ii) Owner and Contractor agree to adjust the Contract Price, in writing,
after verification of actual cost difference of said items selected by Owner.

(a) APPLIANCES:                        $___________
(b) LIGHT FIXTURES:                  $___________
(c) BATH ACCESSORIES:           $___________
(d) FLOOR COVERING:              $___________
(e) HARDWARE FINISH:              $___________
(f) OTHER:                                  $___________

**Finish hardware includes all knobs, pulls, hinges, catches, locks, drawer slide accessories or other
items that are normally installed subsequent to final painting. Light fixtures include only those fixtures
that are surface mounted. Bath accessories include medicine cabinets, towel bars, paper holders, soap
dishes, etc.

4.        Start and Completion Dates:  Work shall commence within ____ (__) days after the last to occur
of the following:

(a)         Receipt by the Contractor of all necessary building permits;

(b)         Owner compliance with all terms and conditions of this Agreement                         to date;

(c)        Receipt of all construction funds by escrow or funding control (if                                 any).

Subject to adjustment for the above conditions, work shall begin approximately on  ________ and be
substantially completed approximately on  ____________with additional time to be allowed as detailed in
Paragraph ___ entitled "Delays" of this Agreement.   Commencement of work shall be defined as (KOBE
TO BRIEFLY DESCRIBE TYPE OF WORK REPRESENTING COMMENCEMENT OF PROJECT)
__________________________________________________________________________________
_______________________.


5.         Contract Price.  Owner agrees to pay the total contract price for the Project of
____________________ ($__.00) (hereafter the “Contract Price”).   THE DOWN PAYMENT MAY NOT
EXCEED ONE THOUSAND DOLLARS ($1,000.00) OR TEN PERCENT OF THE CONTRACT PRICE,
WHICHEVER IS LESS. IT IS AGAINST THE LAW FOR A CONTRACTOR TO COLLECT PAYMENT FOR
WORK NOT YET COMPLETED, OR FOR MATERIALS NOT YET DELIVERED.  HOWEVER, A
CONTRACTOR MAY REQUIRE A DOWN PAYMENT.”
(a)  Down Payment.  The down payment shall be _____________ Dollars ($____.00).  The down
payment is due upon full execution of this agreement by the parties.  
(b) Schedule of Progress Payments:  The schedule of progress payments must specifically describe
each phase of work, including the type and amount of each proposed progress payment.  



DUE/FOR (description of work):                DUE/FOR (description of work):
$                                        $                        
$                                        $                        
$                                        $                        
$                                        $                        
$                                        $                        
$                                        $                        

(c)         Owner specifically agrees that the payment of each progress payment outlined above
constitutes acceptance and approval of all work performed by Contractor to the date of each respective
progress payment.

(d)        Upon satisfactory payment being made for any portion of the work performed, the Contractor
shall, prior to any further payment being made furnish to the person contracting for the home
improvement a full and unconditional release from any claim or Mechanic’s Lien, pursuant to Section
3114 of the California Civil Code, for that portion of the work for which payment has been made.

(e)        Late Payments.  All payments must be made according to the Schedule of Progress Payments
within five (5) days after invoicing. Overdue payments will bear interest at the maximum legal permissible
rate. If any payment is not made when due, Contractor may cease work on the Project until such time as
all payments due have been made. A failure of payment for a period in excess of said five (5) days shall
be considered a material breach of this Agreement.

(f)        Change Orders.  Owner may not require Contractor to perform extra or change-order work
without providing written authorization prior to the commencement of any work covered by the new
change order. Extra work or a change order is not enforceable against Owner unless the change order
also identifies all of the following in writing prior to the commencement of any work covered by the new
change order:  (i) The scope of work encompassed by the order; (ii) The amount to be added or
subtracted from the Agreement; (iii) The effect the order will make in the progress payments or the
completion date.  Contractor's failure to comply with the requirements of this paragraph does not
preclude the recovery of compensation for work performed based upon legal or equitable remedies
designed to prevent unjust enrichment.

(g)        Escrow/Funding Control.  Contractor or Owner, prior to commencement of construction and
subject to lending institution (if any) approval, may request funds to be placed in an escrow or funding
voucher control service prior to commencement of work with funds to be disbursed to Contractor in
accordance with the escrow instructions or voucher orders signed by the Contractor.  In the absence of
an escrow or funding control service, funds will be paid directly to the Contractor in accordance with the
progress payments schedule referred to in Paragraph __ above.

6.        Contractor’s Duties and Responsibilities.  Contractor shall prepare and perform the following:

(a)         Contractor shall promptly notify Owner of subsurface or latent physical conditions at the site
differing material from those

(b)         Contractor shall obtain all necessary permits;

(c)         Contractor shall remove construction debris and leave Property in broom clean condition upon
completion of contract;

(d)        SUBCONTRACTORS. Contractor may subcontract all or any portion of the work required to
complete the Project pursuant to this Agreement.  Contractor shall have the right to stop work and keep
the job idle if payments are not made when due. Failure to make payment within five (5) days of the date
that payment is due will be considered a material breach of this agreement. If the work shall be stopped
for any reason, for a period of sixty (60) days, then Contractor may, at Contractor's option, upon five (5)
days written notice, demand and receive payment for all work executed and material ordered or supplied
and any other loss sustained including Contractor's usual fee for overhead and profit based upon the
contract price. Thereafter, Contractor is relieved from any further liability under this Agreement. In the
event of work stoppage for any reason, Owner shall provide for protection of and be responsible for,
any damage, warpage, racking, or loss of material on the premises.

(e)        Contractor, at Contractor's option, may alter specifications only so as to comply with
requirements of governmental agencies having jurisdiction over same. Any alterations or work
undertaken to further this end shall be treated as extra work and, depending on the scope of such extra
work, may not be included in the Contract Price of this Agreement.

(f)        Contractor agrees to furnish the materials for the project and complete the work in a professional
manner. All materials furnished under this Agreement shall be construction grade and meet industry
standards. Where brand names have been specified, Contractor may select substitutes when such
substitutions are due to unavailability or other circumstances beyond Contractor's control. All
substitutions shall be consistent in quality and character to the selections previously specified. THE
LIABILITY OF THE CONTRACTOR FOR DEFECTIVE MATERIALS OR INSTALLATION IS HEREBY
LIMITED TO THE REPLACEMENT OR CORRECTION OF SAID DEFECTIVE MATERIAL AND/OR
INSTALLATION, AND NO OTHER CLAIMS, OR DEMANDS WHATSOEVER SHALL BE MADE UPON OR
ALLOWED AGAINST THE CONTRACTOR. THIS LIMITED WARRANTY EXTENDS ONLY TO OWNER
AND IS NOT TRANSFERABLE. THERE IS NO IMPLIED WARRANTY OR MERCHANTABILIY NOR ANY
IMPLIED WARRANTY OF FITNESS FOR ANY PARTICULAR PURPOSE. THERE ARE NO WARRANTIES
EITHER EXPRESSED OR IMPLIED. THIS WARRANTY SHALL TERMINATE ONE YEAR FROM FINAL
BUILDING INSPECTION OR THE DATE OF THE COMPLETION, WHICHEVER IS FIRST.  NOTE THAT
EQUIPMENT, ASSEMBLIES, OR UNITS PURCHASED BY CONTRACTOR, INCLUDED IN THIS
CONTRACT ARE SOLD AND INSTALLED SUBJECT TO THE MANUFACTURER'S OR PROCESSOR'S
GUARANTEE OR WARRANTIES, AND NOT CONTRACTOR'S. TO THE EXTENT PERMITTED BY
APPLICABLE LAW, ALL WARRANTIES GIVEN BY MANUFACTURERS PERTAINING TO MATERALS
USED BY CONTRACTOR IN CONNECTION WITH THE PROJECT WILL BE PASSED THROUGH AND
INURE TO THE BENEFIT OF OWNER.  

7.        Specifically excluded Items that will Not the Responsibility of Contractor.

(a)        EXISTING VIOLATIONS.  Contractor shall not be held responsible for any existing violations of
applicable building regulations or ordinances, whether cited by the appropriate authority or not.
Contractor is not responsible for any abnormal or unusual preexisting conditions or any unusual or
abnormal concrete footings, foundations, retaining walls, or piers required, or any unusual depth
required for same, such as, but not limited to that condition caused by poor soil, lack of compaction,
hillside, or other slope conditions. Correction of such violations or abnormal conditions by Contractor
shall be considered additional work and shall be dealt with as herein provided for under "Extra Work".

(b)        DELAYS. Contractor agrees to start and diligently pursue work through to completion, but shall
not be responsible for delays for any of the following reasons; failure of the issuance of all necessary
building permits within a reasonable length of time, funding of loans, disbursement of funds into funding
control or escrow, acts of neglect or omission of Owner or Owner's employees or Owner's agent, stormy
or inclement weather, strikes, lockouts, boycotts, or other labor union activities, extra work ordered by
Owner, acts of public enemy, riots or civil commotion, inability to secure material through regularly
recognized channels, imposition of Government priority or allocation of materials, failure of Owner to
make payments when due, or delays caused by inspection or changes ordered by the inspectors of
authorized governmental bodies, or for acts of independent contractors, or holidays, or other causes
beyond Contractor's reasonable control.

(c)        Contractor will endeavor to but is not responsible for matching existing paint or texture and
further, there is no guarantee against hairline cracks or discoloration in stucco or concrete.

8.         Owner’s Representations and Responsibilities.    Owner represents and warrants to the
Contractor as follows:

(a)         He or she is the sole owner of the Property; and

(b)         Owner shall point out and warrant property lines to Contractor;

(c)         Owner guarantees that he or she has adequate funds to comply with this Agreement; this
Agreement is a cash transaction.   

(d)         Owner shall remove or protect any personal property;

(e)        Unless Contractor is in material breach of this Agreement, Owner will not use the services of any
other contractor or entity with regard to completing the work contemplated with respect to the Property
hereunder.  Owner understands that such hiring of any other contractor or entity in violation of the terms
and covenants of this Agreement represents a material breach of this Agreement by Owner that may
result in consequential damages, including lost profits of Contractor;

(f)         Owner shall maintain adequate levels of homeowner’s insurance at all times during the term of
this Agreement. Such insurance will have course of construction, fire, vandalism, malicious mischief and
other perils, clauses attached. The insurance must be in an amount at least equal to the contract price
and provide that any loss be payable to the Contractor. The insurance is to cover the Owner,
Contractor, Subcontractor and Construction Lender in the amount of their respective interests. If the
Owner does not purchase such insurance, the Contractor, as agent for the Owner may purchase it and
charge such cost to the Owner.

(g)         If the project or any portion of it is destroyed or damaged by fire, storm, flood, landslide,
earthquake, theft, or other disaster or accidents, any work done by the Contractor to rebuild, etc., shall
be paid for by Owner as an Extra and dealt with as herein provided for under "Extra Work.” In the event
of any of the above occurrences, If the cost of replacement work, for work already done by the
Contractor, exceeds twenty (20) percent of the contract price, the Owner has the option to cancel the
contract but, if the Owner cancels, the Contractor shall be paid for all costs incurred plus Contractor's
usual fee for overhead and profit for all work performed by Contractor to date of cancellation.

(d)        Owner shall indemnify and hold harmless Contractor, its affiliates, directors, employees, agents,
successors and assigns, from and against any and all claims, liabilities, damages, costs and expenses,
including all attorneys’ fees, arising out of or resulting from any breach of any representation, warranty,
covenant, obligation, agreement or duty under this Agreement.  

(e)        Owner represents that the property being improved does not contain asbestos and/or other
hazardous materials. This Agreement does not contemplate the removal of, testing for appropriate
corrective work and any other additional expenses incurred by the corrective work.

(f)        Owner is responsible for water, gas, sewer and electric utilities, from the appropriate agency to
the metering device, unless otherwise agreed to in writing. It is the Owner's responsibility, at Owner's
expense, to provide electricity and water to the site as needed by the Contractor.

(g)        Owner agrees to keep driveway clear and available for movement and parking of trucks and
other equipment during normal working hours. If Owner denies access to any worker or material supplier
during the scheduled working hours, the Owner will be held in breach of the Agreement and will be liable
for such breach.

(h)         Owner agrees to sign & record a Notice of Completion within five (5) days after the Project is
substantially completed and ready for occupancy. Failure by the Owner to do so authorizes Contractor
to act as Owner's agent to sign and record a Notice of Completion. This agency is irrevocable and is an
agency coupled with an interest. Contractor has the right to bar occupancy of the project by Owner or
anyone else until Contractor has received all payments due under the Agreement and the Notice of
Completion is recorded.  If a funding or joint control is used it is agreed that the control shall act as
Owner's agent and sign and record a Notice of Completion.

(i)         Prior to construction Owner is to give Contractor a copy of any casements, restrictions or rights
of way relating to the property. If Owner does not do so, Contractor will assume that none exist.

(j)          Unless specifically agreed upon in writing between Owner and Contractor, and made a part of
this Agreement this agreement does not include any engineering or geology surveys, drawings, studies,
reports or calculations as may be required by a public body or building authority as a condition for
issuance of building permit or as a condition to securing final building inspection. The cost of any such
required professional services shall be paid by Owner.

9.        Items Specifically Excluded.  Unless specifically agreed upon in wntmg between Owner and
Contractor and made part of this Agreement, under "Description of Work,” "Description of Material,"
"Specifications,” or "Plans,” this contract does not include:

(a)        Plumbing, gas, waste and water lines outside foundations of existing buildings or any required
relocation or replacement of any such existing lines that may be discovered within the boundaries of any
new ground floor addition.

(b)         Electrical service, other than addition of circuit breakers or fuse blocks
to distribute electric current to new outlets;

(c)         Any work which may be required regarding cesspools or septic tanks;

(d)         Rerouting, relocating or replacing vents, pipes, ducts or conduits not
shown or those encountered during construction or changes required to existing wiring, vents, pipes,
ducts or conduits in areas undisturbed by construction.

(e)        Unless specified elsewhere, existing wiring and electrical systems are represented by the Owner
as adequate to carry load for existing structure and work to be performed herein;

(f)        Any additional work required for excavation or foundations due to inadequate bearing capacity or
rock or any other material not removable by ordinary hand tools

(g)        Any work to correct damage caused by termites or dry rot;

(h)         Changes or alterations from the specifications which may be required by
any public body, utility or inspector.

(i)        Painting, preparation, filing, finishing, grading, retaining wails, new or relocating gutters and down
spouts, screen doors, weather stripping, staining, seeding. Landscaping or decorating.

Any work necessary to correct, change, alter or add the above items will be considered additional work
and shall be dealt with as herein provided for under "Extra Work” in Paragraph 10 below.

10.          Extra Work and Change Orders.  Extra Work and Change Orders shall become incorporated
to and  part of this Agreement once the Change Order is prepared in writing and signed by all parties
hereto prior to the commencement of any work covered by the new Change Order. The order must
describe the scope of the extra work or change, the cost to be added or subtracted from this
Agreement, and the effect the order will have on the Schedule of Progress Payments. Failure to have
written authorization shall not be deemed fatal to the collection of the extra work.

11.         Corrective Work.  If minor corrective or repair work remains to be finished after the Project is
ready for occupancy, Contractor shall perform work expeditiously and Owner shall not withhold any
payment pending completion of such work. If major corrective or repair work remains to be finished after
the building is ready for occupancy, and the cost exceeds one (1) percent of the gross contract price,
the Owner may withhold payment sufficient to pay for completion of the work, pending completion of the
work, but may not withhold an amount which is greater.

12.         Governing Law and Jurisdiction.    The parties acknowledge that this Agreement is made under
this jurisdiction of the Contractors State License Board of California and shall be governed by the laws
of the State of California and of the United States.  The courts of the State of California, Los Angeles
Superior Court, or the United States District Court for the Central District of California, as appropriate,
shall have exclusive jurisdiction and venue over any case or controversy arising out of this Agreement.  

13.         Costs of Suit.        In the event that litigation arises to enforce any provision of this Agreement,
the prevailing party shall be entitled to recover all of its costs of suit, including reasonable attorneys’
fees, from the non-prevailing party.

14.         Total Integration.    This Agreement constitutes the entire agreement between the parties and
cannot be altered, modified or amended except by a written instrument signed by both parties.

15.        Severability.    If any of the terms of this Agreement are found to be invalid, illegal or
unenforceable in any respect, the remaining provisions shall nevertheless be binding with the same
effect as if the invalid, illegal or unenforceable term or terms were originally deleted.

16.        Successors and Assigns.    This Agreement shall be binding upon and inure to the benefit of the
parties to this Agreement and their respective predecessors, successors, licensees, heirs,
representatives, agents and assigns.

17.        Notices.  

(a)        Contractors are required by law to be licensed and regulated by the Contractors' State License
Board which has jurisdiction to investigate complaints against contractors if a complaint regarding a
patent act or omission is filed within four years of the date of the alleged violation. A complaint regarding
a latent act or omission pertaining to any structural defects must be filed within 10 years of the date of
the alleged violation. Any questions concerning a contractor may be referred to the Registrar,
Contractors' State License Board, P.O. Box 26000, Sacramento, California 95826.

(b)        You, the buyer, may cancel this transaction at any time prior to midnight of the third business
day after the date of this transaction. Or, if this is a contract for the repair of damages resulting from an
earthquake, flood, fire, hurricane, riot, storm, tidal wave, or other similar catastrophic occurrence for
which a state of emergency has been declared, you the buyer may cancel this transaction at any time
prior to midnight of the seventh business day after the date of this transaction. See the attached Notice
of Cancellation form for an explanation of this right.

(c)        You, as Owner or Tenant, have the right to require the Contractor to have a Performance and
Payment Bond.

(d)        You are entitled to a completely filled in copy of this agreement, signed by both you and the
contractor, before any work may be started.

(e)        The law requires that the contractor give you a notice explaining your right to cancel. Initial this
Paragraph f the contractor has given you a Notice of Your Right to Cancel.  ____  ____ [Owner must
initial here]


**Do not sign this Agreement before you read it or if it contains any blank spaces.  Owner acknowledges
that Owner has read and received a legible copy of this Agreement signed by Contractor, including all
terms and conditions herein included, before any work was done, and that Owner has read and received
a legible copy of every document that owner has signed during the negotiation.  If owner cancels this
agreement after the right of recession has expired, and before commencement of construction, Owner
shall pay Contractor the amount of expenses incurred to that date plus loss of profits.


BY SIGNING BELOW, both parties agree to be bound to all of the terms and conditions contained
hereinabove.


KOBE ENTERPRISES, INC,                        [INSERT NAME(S) OF OWNER]
“Contractor”                                        “Owner”

By: ________________________                _______________________


Its:                                                                  _______________________        
            
AGREEMENT
818-339-6165