HOMEOWNER'S LIMITED TEN YEAR

STRUCTURAL WARRANTY

ROUSE/CHAMBERLIN HOMES

Revised 2/24/99

INDEX

Page
I. What is covered 3
II. What the Builder Will Do 4
III. Warranty Limits 4
IV. Exclusions 4
V. Resale 7
VI. How to Make a Structural Claim 7
VII. Mediation 8
VIII. Miscellaneous 9
Waiver of Trial Jury 10
Notice of Claim Form 11

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HOMEOWNER'S LIMITED TEN YEAR
STRUCTURAL WARRANTY
ROUSE/CHAMBERLIN HOMES

Rouse/Chamberlin Homes (the "Builder") warrants against loss to the Home you have
purchased ("Home") caused by Structural Defects, as defined herein, which first occur during
the Warranty Term under the terms and conditions stated below. When used herein, the term
"Homeowner" means the person(s) who hold(s) title to the Home.

1. What is Covered

A. This limited warranty covers Structural Defects in the Home which first occur during the ten
(10) year period commencing on the date of initial settlement of the Home (the "Warranty Term").

B. A "Structural Defect" is actual physical damage to the following designated load-bearing
portions of the Home caused by failure of their load-bearing function to the extent that the Home becomes unsafe, unsanitary or otherwise unlivable:

(1) Foundation systems and footings;
(2) Beams
(3) Girders;
(4) Lintels;
(5) Columns;
(6) Walls and partitions;
(7) Floor systems; and
(8) Roof framing systems.

C. Examples of nonload-bearing elements which would NOT be considered a Structural Defect
if they failed include:

(1) non-load-bearing partitions and walls;
(2) wall tile or wall coverings; plaster, laths, or drywall;
(4) flooring and subflooring material;
(5) brick, stucco or stone veneer;
(6) any type of exterior siding or finish;
(7) roof shingles, sheathing, or tar paper;
(8) heating, cooling, ventilating, plumbing, electrical and mechanical systems;
(9) appliances, fixtures or items of equipment;
(10) doors, trim, cabinets, hardware, insulation, paint, stains;
(I 1) basement and other interior ground-supported concrete floor slabs.

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II. What the Builder will do:

A. Subject to the warranty limits defined below, if a Structural Defect is covered by this warranty, Builder will repair, pay for and/or replace the Structural Defects or make arrangements for such repairs and/or replacement. Builder shall have the sole and complete discretion to determine the methods and manner for repairing and/or replacing Structural Defects. No repairs or replacements made under the terms and conditions of the warranty shall act to extend the Warranty Term.

B. The repair of a Structural Defect is limited to:

(1) The repair of defects in the load-bearing portions of the Home which repair is necessary to
restore their load-bearing function;

(2) The repair of nonload-bearing walls, floors, ceiling, windows, doors, electrical, plumbing, heating, cooling and ventilating systems of the Home damaged by the Structural Defect if such items make the Home unsafe, unsanitary or otherwise unlivable ("Related Damages") (An example of Related Damages would be failure of the electrical system resulting from a structural failure of the foundation in which case the electrical system would also be repaired.); and

The repair and cosmetic restoration of only those surfaces. finishes and coverings, original to the Home, damaged by the Structural Defect, or which must be removed in order to repair the Structural Defect.
Builder will not be responsible for removing, repairing, replacing or paying for any Homeowner-installed items such as fences, landscaping. sprinkler systems, furniture, rugs, wallpaper or other improvements installed by the Homeowner.

C. Within fifteen (15) days of receipt of written notice of a claim of a Structural Defect, Builder will acknowledge receipt of the notice and beam the investigation of the claim.

III. Warranty Limits

Builder's total liability for all Structural Defects arising during the Warranty Term is limited to the final sales price of the Home paid to Builder which includes the parcel of land on which the Home was constructed.

IV. Exclusions

This warranty does not apply to:

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A. Defects in outbuildings, including detached garages and detached carports, (except outbuildings which contain the plumbing, electrical, heating, cooling or ventilation systems which also provide service to the Home); swimming pools and other recreational facilities; driveways; walkways; patios; decks; boundary walls; retaining walls and bulkheads (except where boundary walls, retaining walls and bulkheads are necessary for the structural stability of a covered building); fences; landscaping (including sodding, seeding, shrubs, trees, and plantings); sprinkler systems; off-site improvements or any other improvements not a part of the Home;

B. Damage to real property which is not part of the Home covered by the home warranty and which is not included in the purchase price of the Home;

C. Bodily or personal injury of any kind (including physical or mental pain and suffering and emotional distress), medical, hospital, rehabilitation or other incidental expenses, damage to personal property, or damage to any property of others;

D. Any loss or damage which the Homeowner has not taken appropriate action to minimize as soon as practicable (see Homeowner's Responsibilities);

E. Any defect in material or work supplied by anyone other than the Builder or its employees, agents or subcontractors, and any covered defect which was caused by defective material or work supplied by anyone other than the Builder or its employees, agents, or subcontractors:

F. Loss of use, loss of opportunity, loss of market value. loss of rental value or any other consequential loss (except to the extent that any such exclusion is not permitted by law)-,

G. Defects in any property which was not included in the original Home delivered for the original final sales price;

H. Any damage to the extent it is caused or made worse by:

(1) Negligence, failure to perform maintenance, improper maintenance or improper operation by anyone other than Builder or its employees, agents or subcontractors;

(2) Failure by the Homeowner to give prompt and proper notice to Builder of any defects;

(3) Changes of the grading of the ground, that do not comply with accepted grading practices, including the Homeowner's failure to maintain the original grade;

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(4) Loss or damage not caused by defect or deficiency in the design or construction of the Home by the Builder, or its employees, agents or subcontractors;

(5) Loss or damage externally caused, including, but not limited to, acts of God, riot or civil commotion, windstorm, fire, explosion, smoke, water, hail, lightning, falling trees or other objects, aircraft, vehicles, flood, mud slides, earthquakes, volcanic eruption, radon or other gases, abuse or use of the Home, or any part thereof, beyond the reasonable capacity of such part for such use, or by any other external cause;

(6) Changes in the level of the underground water table which were not reasonably foreseeable at the time of construction of the Home;

(7) Subsidence or soil movement which was not reasonably predictable through reasonable soil testing or other geographical investigation at the time of construction of the Home;

(8) Any loss, damage, defect, cost or expense which is caused, in whole or in part, by any peril or occurrence for which compensation is provided by state legislation, or which is covered by other insurance or public funds to the extent that such compensation is paid by such other providers;

(9) Insect damage, vermin, radiation, pollution. or toxic substances of any kind;

(10) Any loss or damage which arises while the Home is being, used primarily for nonresidential purposes:

(11) Any condition which does not result in actual physical damage to the Home,

(12) Costs of shelter, transportation, food, moving, storage, or other incidental expenses related to relocation during repair, or any other costs due to loss of use, inconvenience or annoyance;

(13) Normal wear and tear and normal deterioration;

(14) Dampness or condensation due to the failure of the Homeowner to maintain adequate ventilation;

(15) Failure by the Homeowner, or by anyone other than the Builder or its employees, agents or subcontractors, to comply with the warranty requirements of manufacturers of appliances, equipment or fixtures;

I. Glass breakage;

J. Failure of the Builder to perform any washing, cleaning or clean-up of any kind;

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K. Structural slab foundation systems that have experienced some movement but are within the foundation's design performance criteria;

L. Loss or damage not otherwise excluded under this Warranty, which does not constitute a defect in the construction of the Home by the Builder, or its employers, agents or subcontractors;

M. Any notice of claim received by Builder more than 30 days after expiration of this warranty;

V. Resale

All rights and obligations of the Homeowner hereunder shall fully transfer to each
successor in title to the Home, including any mortgagee in possession, for the remainder of the Warranty Term and any such transfer shall in no way affect or reduce the coverage under this warranty for its unexpired term. There is no limit to the number of such transfers during the Warranty Term, nor any cost hereunder as a result of such successions.

VI. How to Make a Structural Claim

A. Notice of Claim: All notice of claims against the Builder must be pursued by the Homeowner in writing on the attached form or other written notice that a claim is made under this warranty explaining the claim and Structural Defect in detail. All Notices must be sent to:

Rouse/Chamberlin Homes
500 Exton Commons
Exton, PA 19341
Attn: Warranty Claims

B. In response to receipt of a notice of claim, Builder will:

(1) Inspect the defect, damage or problem as reported by the Homeowner within thirty (30) days of receipt of the notice;

(2) Within sixty (60) days of receipt of notice, send Homeowner a brief narrative describing the problem as Builder understands it. as well as Builder's opinion as to the cause of the problem. The narrative will address whether a Structural Defect exists and either a description of recommended repairs of the Structural Defect or the reasons why the Homeowner's claim does not qualify for repairs under this warranty.

C. If Homeowner disagrees with Builder's analysis, Homeowner may arrange for an independent state-licensed engineer to inspect the alleged defects and report his/her findings in writing to Builder and Homeowner. The cost of such

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investigation will be born by Homeowner. If the engineer's report identifies Structural Defects (as defined herein), Builder will be entitled to arrange for its own independent state-licensed engineer to inspect the alleged defects and report his/her findings in writing or Builder may elect to correct the Structural Defect as described in Homeowner's report. If either engineer's report does not identify the problem as being a Structural Defect, then the claim will be deemed denied by Builder.

VII. Mandatory Mediation

A. Should Homeowner disagree with Builder's decision to deny the claim, Homeowner shall request a mediation to be conducted by the American Arbitration Association or
other mediation service approved by Builder (the "Mediation Service") at Builder's expense. Homeowner will be required to refund the mediation administrative fee to Builder for any mediations requested by Homeowner at which conclusion it is determined that
every disputed item in the mediation is decided in favor of Builder. Homeowner will still be required to refund the mediation administrative fee to Builder even if some items of dispute are resolved between the parties before mediation but after the request for mediation is acknowledged by the Mediation Service. The mediation process will be conducted in accordance with the warranty conditions described herein and the rules and regulations of the Mediation Service. The mediation provided for hereunder shall not be legally binding. but shall be a condition precedent to the commencement of any litigation by any party to compel compliance with the warranty documents or to seek relief for any dispute arising out of this
warranty. A form to request mediation may be obtained by calling the American Arbitration Association at (215) 732-5260 or by calling such other service approved by the Builder. The completed request for mediation form must be submitted by Homeowner to Builder and the Mediation Service. The mediation hearing shall be arranged by the Mediation Service and shall be held at the residence, or any other location designated by the mediator. Unless an extension is agreed to by all parties, the mediator shall issue the decision within twenty (20) days from the date of the hearing. At the hearing, the parties may present evidence; however, formal rules of evidence will not be applicable. There will be no transcript or record of the hearing. All matters discussed at mediation are confidential, and nothing discussed shall be admissible in subsequent litigation.

B. Compliance Inspection Process

When Homeowner and Builder accept a mediation decision which requires Builder to perform repairs, Builder shall perform such repairs in accordance with the decision. If Homeowner remains dissatisfied after Builder has

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completed the repairs, then Builder will arrange with the Mediation Service, at Homeowner's request and expense, to have a compliance inspection conducted to attempt to resolve any remaining disputes resulting from the attempted repairs. Homeowner must request such a compliance inspection in writing no later than thirty (30) days after Builder has completed such repairs. If the inspection reveals that the work has not been performed properly, then the compliance inspection fee described will be refunded to Homeowner. If the compliance inspector determines that Builder has performed adequately, the inspection fee will not be
refunded and no additional repairs will be performed.

VIII. Miscellaneous

A. If Builder's performance of any of its obligations is delayed by any Excusable Delay (as defined below), Builder will be excused from performance until the affects of that event are remedied. Excusable Delays include, but are not limited to inclement weather, fire, storm, strikes, walk-outs or other labor disputes affecting Builder or Builder's suppliers of material or labor, delay in issuance of permits, acts of war, emergency proclamations, sewer moratoriums, governmental regulations, or other matters outside of Builder's control.

B. No one is authorized to change, alter or add to this warranty without the express written consent of Builder.

C. Homeowner will allow Builder, or its agents, employees or subcontractors access to the Home during normal business hours when Builder is repairing or investigating a Structural Defect claim.

D. Any item requiring repair or replacement which cannot be repaired or replaced with products readily and currently available in the standard marketplace will be replaced or repaired with products of similar kind and quality which are readily available.

E. The written warranty program provided by Builder is the only warranty made to Homeowner and, in consideration thereof, HOMEOWNER HEREBY WAIVES ANY AND ALL EXPRESS OR IMPLIED WARRANTIES FROM BUILDER AND BUILDER'S GENERAL CONTRACTOR (IF DIFFERENT THAN BUILDER) IN CONNECTION WITH THE HOME INCLUDING BUT NOT LIMITED TO ANY WARRANTY OF HABITABILITY, REASONABLE WORKMANSHIP. MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE WITH RESPECT TO ANY AND ALL PATENT (VISIBLE) OR LATENT (HIDDEN) DEFECTS. The written warranty program is in place of other express or implied warranties by Builder, Builder's agents or employees. or any other person. including any representation made in brochures,, drawings, renderings or other sales materials.

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F. After implementation of the mediation procedure set forth above, if a dispute still exists with respect to Builders performance of its obligations under this Warranty, Homeowner agrees that the Court of Common Pleas of Chester County, Pennsylvania shall have the sole jurisdiction over any suits or action filed with respect thereto. In addition, the Homeowner expressly WAIVES THE RIGHT TO A JURY TRIAL in any action or lawsuit filed in connection with this warranty program.

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TEN YEAR LIMITED STRUCTURAL WARRANTY
Rouse/Chamberlin
500 Exton Commons
Exton, PA 19341
Attn: Warranty Claims

NOTICE OF CLAIM FORM
Structural Claims Only

Please refer to Homeowner's Warranty Documents for mailing instructions and pertinent information.
Name:
______________________________________________________________________________
Property in dispute:
______________________________________________________________________________
Home Phone: _______________ Business Phone: ____________ Fax:___________________
Owner Address (if different than the Property):
______________________________________________________________________________

______________________________________________________________________________

Description of Claim: (Please be specific)
(Attach additional sheet or photographs, if necessary)
______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

Date: _____________________ ___________________________________________________
                                                            Homeowner Signature

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