Congratulations on the purchase of your new Carolina Homes & Communites Home!

As part of Carolina Homes & Communites’s commitment to quality, value and integrity, your Home is covered by a limited one- year warranty on workmanship, a limited two-year warranty on systems and a limited 10-year warranty on structural elements (also known as the “Carolina Homes & Communites Limited Warranty” or “Limited Warranty”).

The Carolina Homes & Communites Limited Warranty is detailed in this document as to the scope of your Warranty coverage. Please take the time to become familiar with this Warranty document and read it in its entirety. It defines our responsibilities to you, and your responsibilities to your Home. Please keep in mind that the proper maintenance of your Home is vital, and if you do not perform the required maintenance on your Home on a regular basis, it can and will limit your Warranty rights.

While we are confident that Carolina Homes & Communites can resolve any Warranty items to your satisfaction, you should be aware that this Limited Warranty includes a requirement that all disputes be submitted to binding arbitration.

Carolina Homes & Communites is happy to answer any questions that you have about your Carolina Homes & Communites Limited Warranty or specific construction standards and how they apply to your Home. However, please know that the content of this Warranty Booklet controls Carolina Homes & Communites’s obligations to you and your Home to the extent that there may be any differences between the content of this document and your conversations with any of our Carolina Homes & Communites Associates.

Congratulations again - and enjoy your new Home!

EXPRESS LIMITED WARRANTY
THE “CAROLINA HOMES & COMMUNITIES LIMITED WARRANTY”

Under the Carolina Homes & Communites Limited Warranty, the seller of your Home (Carolina Homes & Communites) commits that the components of your Home will perform to the standards listed in this Warranty Booklet. Specific components of your Home are covered for either one, two or ten years under the Carolina Homes & Communites Limited Warranty, and Carolina Homes & Communites’s obligations are expressly limited to those standards and for only those time periods as explained below.

Please take the time to review the section titled “What Is Not Covered By The Carolina Homes & Communites Limited Warranty” which lists those items excluded from the Carolina Homes & Communites Limited Warranty. The Carolina Homes & Communites Limited Warranty commences on the date of closing of the original purchase of the Home (the “Closing Date”). The protection periods provided below are referred to in the Carolina Homes & Communites Limited Warranty as “Warranty Terms.”

WORKMANSHIP PROTECTION FOR YEAR 1

For one year from the Closing Date, Carolina Homes & Communites warrants that the components of the Home set forth in the Workmanship Standards found on pages of this Warranty disclosure will perform in accordance with those Workmanship Standards. If a component is not specifically listed in the Workmanship Standards, then it is not warranted under the Carolina Homes & Communites Limited Warranty or otherwise.

If a component is performing in accordance with the Workmanship Standards, then Carolina Homes & Communites has no further obligations under the Carolina Homes & Communites Limited Warranty. Carolina Homes & Communites reserves the sole right to determine the repairs and or replacements necessary to meet the Workmanship Standards. Please note that a limited number of items in the Workmanship Standards are subject to a one- time repair obligation.

SYSTEMS PROTECTION FOR YEARS 1-2

For two years from the Closing Date, Carolina Homes & Communites warrants that the components of the Home set forth in the Systems Standards found on pages 53 to 54 of this Warranty Booklet will perform in accordance with those Systems Standards. If a component is not specifically listed in the Systems Standards, then it is not warranted under the Carolina Homes & Communites Limited Warranty or otherwise.

If a component is performing in accordance with
the Systems Standards, then Carolina Homes & Communites has no further obligations under the Carolina Homes & Communites Limited Warranty. Carolina Homes & Communites reserves the sole right to determine the repairs and/or replacements necessary to meet the Systems Standards.

STRUCTURAL PROTECTION FOR YEARS 1 THROUGH 10

For ten years from the Closing Date, Carolina Homes & Communites warrants that the structural components of the Home set forth in the Structural Components Standards found on page 55 of this Warranty Booklet will perform in accordance with those Structural Standards. If a component is not specifically listed in the Structural Standards, then it is not warranted under the Carolina Homes & Communites Limited Warranty or otherwise.

If a structural component is performing in accordance with those Structural Standards, then Carolina Homes & Communites has no further obligations under the Carolina Homes & Communites Limited Warranty. Carolina Homes & Communites reserves the sole right to determine the repairs and/or replacements necessary to meet the Structural Standards and may, at its sole election, implement repairs in phases to determine if structural components can be stabilized as part of meeting its obligations under the Structural Standards.

TRANSFERABILITY

All of your rights and obligations under the Carolina Homes & Communites Limited Warranty shall, unless previously released by you or your successor, fully transfer to each successor owner of the Home, including any mortgagee in possession, for the remainder of the applicable Warranty Term and any transfer shall in no way affect, increase or reduce the coverage under the Carolina Homes & Communites Limited Warranty for its unexpired term.

If you sell your Home during the Warranty Term, you agree to give this Warranty Booklet to the successor owner to inform the successor owner of warranty rights and to otherwise make it possible for the successor owner to fulfill the successor owner’s obligations under the terms of the Carolina Homes & Communites Limited Warranty. If you are an owner other than the original purchaser of the Home, you are bound by all the terms and conditions of the Carolina Homes & Communites Limited Warranty including, but not limited

to, claims procedures and the requirement to submit any disputes that may arise under the Carolina Homes & Communites Limited Warranty to binding arbitration.

REQUESTING CAROLINA HOMES & COMMUNITIES LIMITED WARRANTY SERVICE

If you believe that a component of your Home is not performing to the Carolina Homes & Communites Limited Warranty standards during the applicable Warranty Term, you must send the appropriate Notice of Workmanship/Systems Claim Form or Notice of Structural Claim Form (located at this back of this booklet)(“Notice of Claim”) to Carolina Homes & Communites. The Notice of Claim must list the specific warranty claim and the date that you first observed the condition that is the subject of the claim.

You must notify Carolina Homes & Communites of any observed component that you believe is not performing to Carolina Homes & Communites Limited Warranty standards as soon as possible and in no event later than the date the applicable warranty expires, by sending the Notice of Claim to the appropriate Customer Care office. We must receive your Notice of Claim not later than thirty (30) days after the applicable Workmanship, Systems or Structural Warranty expires or we will have no further obligation to you under the Carolina Homes & Communites Limited Warranty. Carolina Homes & Communites is not responsible for repairs or any other costs or expenses (including, but not limited to, attorneys’ fees and engineers’ fees) incurred by you prior to the date you give Carolina Homes & Communites a Notice of Claim.

In the event that you fail to notify us and give us the opportunity to inspect and repair the conditions giving rise your claim, Carolina Homes & Communites will not be responsible for any repairs or any other costs or expenses (including, but not limited to, attorneys’ and engineers’ fees) you incur to address the claim.

We will respond to a timely Notice of Workmanship or System Claim within thirty (30) days and complete any warranted repairs within sixty (60) days of receipt of your written Notice of Claim to us unless (i) you or other events beyond our reasonable control delay our completion (including a failure to allow prompt inspections of your home), or (ii) the condition reasonably requires more than sixty (60) days to properly repair.

If we determine that any of the Workmanship or Systems items you report to us are not covered by the Carolina Homes & Communites Limited Warranty, we will endeavor to advise you in writing within (30) thirty days of our determination of no coverage.

Additional time may be required for us to assess structural claims and evaluate our response. As such, we will respond to any Notice of Structural Claim within (60) days of receipt of your written Notice of Structural Claim unless you or other events beyond our control delay our response (including a failure to allow prompt inspections of your home). Additional time may be required to investigate, design, implement and/or complete structural repairs beyond the (60) days by which we commit to complete Workmanship/Systems repairs. If we determine that any of the Structural items you report to us are not covered by the Carolina Homes & Communites Limited Warranty, we will endeavor to advise you in writing within (30) thirty days of our determination of no coverage.

Investigation of claims often requires inspection of the Home, and under certain circumstances, invasive testing might be needed. We may request additional documents or information from you, and you agree as part of the Carolina Homes & Communites Limited Warranty to fully cooperate with the investigation of your claim.

By submitting a Notice of Claim, you agree to grant Carolina Homes & Communites and/or their representatives prompt and complete access to your Home during normal business hours of 8 a.m. to 5 p.m. to inspect, repair and conduct tests in your Home as we may deem necessary. If you refuse to allow us access to your Home, such denial of access shall void the Carolina Homes & Communites Limited Warranty with respect to your claim.

Carolina Homes & Communites reserves the option to repair, replace or pay you the reasonable cost of repair or replacement for any warranted and covered claim. Prior to Carolina Homes & Communites undertaking repairs, replacement or payment, you agree to assign to Carolina Homes & Communites all claims you may have against any other person or entity who Carolina Homes & Communites or you believe may have any responsibility associated with the warranted and covered claim.

If you believe that we have not met our obligations under the Carolina Homes & Communites Limited Warranty, you may seek resolution of any claim you may have pursuant to the mediation/arbitration provisions set forth in the following section of the Warranty Booklet.

MEDIATION /ARBITRATION OF DISPUTES

The terms “Buyer” and “Seller” as used in this section of your warranty shall have the same meaning as set forth in your Purchase and Sale Agreement. By purchasing a Carolina Homes & Communites home and receiving this warranty, Buyer specifically agrees that this transaction involves interstate commerce and that any Dispute (as hereinafter defined) shall first be submitted to mediation and, if not settled during mediation, shall thereafter be submitted to binding arbitration as provided by the Federal Arbitration Act (9 U.S.C. §§1 et seq.) and not by or in a court of law or equity.

“Disputes” (whether contract, warranty, tort, statutory or otherwise), shall include, but are not limited to, any and all controversies, disputes or claims (1) arising under, or related to, your Purchase and Sale Agreement, the Property, the Community or any dealings between Buyer and Seller; (2) arising by virtue of any representations, promises or warranties alleged to have been made by Seller or Seller’s representative; and (3) relating to personal injury or property damage alleged to have been sustained by Buyer, Buyer’s children or other occupants of the Property, or in the Community.

Buyer has executed this Agreement on behalf of his or her children and other occupants of the Property with the intent that all such parties be bound hereby. Any Dispute shall be submitted for binding arbitration within a reasonable time after such Dispute has arisen.

Nothing herein shall extend the time period by which a claim or cause of action may be asserted under the applicable statute of limitations or statute of repose, and in no event shall the Dispute be submitted for arbitration after the date when institution of a legal or equitable proceeding based on the underlying claims in such Dispute would be barred by the applicable statute of limitations or statute of repose.

Any and all mediations commenced by Buyer and Seller shall be filed with and administered by the American Arbitration Association or any successor thereto (“AAA ”) in accordance with the AAA’s Home Construction Mediation Procedures in effect on the date of the request. If there are no Home Construction Mediation Procedures currently in effect, then the AAA’s Construction Industry Mediation Rules in effect on the date of such request shall be utilized.

Unless mutually waived in writing by the parties, submission to mediation is a condition precedent to either party taking further action with regard to any matter covered hereunder. If the Dispute is not fully resolved by mediation, the Dispute shall be submitted to binding arbitration and administered by the AAA in accordance with the AAA’s Home Construction Arbitration Rules in effect on the date of the request. If there are no Home Construction Arbitration Rules currently in effect, then the AAA’s Construction Industry Arbitration Rules in effect on the date of such request shall be utilized.

Any judgment upon the award rendered by the arbitrator may be entered in and enforced by any court having jurisdiction over such Dispute. If the claimed amount exceeds $250,000.00 or includes a demand for punitive damages, the Dispute shall be heard and determined by three arbitrators; however, if mutually agreed to by the parties, then the Dispute shall be heard and determined by one arbitrator. Arbitrators shall have expertise in the area(s) of Dispute, which may include legal expertise if legal issues are involved.

All decisions respecting the arbitrability of any Dispute shall be decided by the arbitrator(s). At the request of either Buyer or Seller, the award of the arbitrator(s) shall be accompanied by detailed written findings of fact and conclusions of law. Except as may be required by law or for confirmation of an award, neither a party nor an arbitrator may disclose the existence, content, or results of any arbitration hereunder without the prior written consent of both parties. The waiver or invalidity of any portion of this Section shall not affect the validity or enforceability of the remaining portions of this Section.

Buyer and Seller further agree (1) that any Dispute involving Seller’s affiliates, directors, officers, employees and agents shall also be subject to mediation and arbitration as set forth herein, and shall not be pursued in a court of law or equity; (2) that Seller may, at its sole election, include Seller’s contractors, subcontractors and suppliers, as well as any warranty company and insurer as parties in the mediation and arbitration; and (3) that the mediation and arbitration will be limited to the parties specified herein.

To the fullest extent permitted by applicable law, Buyer and Seller agree that no finding or stipulation of fact, no conclusion of law, and no arbitration award in any other arbitration, judicial, or similar proceeding shall be given preclusive or collateral estoppel effect in any arbitration hereunder unless there is mutuality of parties.

In addition, Buyer and Seller further agree that no finding or stipulation of fact, no conclusion of law, and no arbitration award in any arbitration hereunder shall be given preclusive or collateral estoppel effect in any other arbitration, judicial, or similar proceeding unless there is mutuality of parties.

Unless otherwise recoverable by law or statute, each of Buyer and Seller shall bear its own costs and expenses, including attorneys’ fees and paraprofessional fees, for any mediation and arbitration. Notwithstanding the foregoing, if Buyer or Seller unsuccessfully contests the validity or scope of arbitration in a court of law or equity, the noncontesting party shall be awarded reasonable attorneys’ fees, paraprofessional fees and expenses incurred in defending such contest, including such fees and costs associated with any appellate proceedings. In addition, if Buyer or Seller fails to abide by the terms of a mediation settlement or arbitration award, the other party shall be awarded reasonable attorneys’ fees, paraprofessional fees and expenses incurred in enforcing such settlement or award.

Buyer may obtain additional information concerning the rules of the AAA by visiting its website at www.adr.org or by writing the AAA at 33 5 Madison Avenue, New York, New York 10017. Seller supports the principals set forth in the Consumer Due Process Protocol developed by the National Consumer Dispute Advisory Committee and agrees to the following:

Notwithstanding the requirements of arbitration stated in this Agreement, Buyer shall have the option, after pursuing mediation as provided herein, to seek relief in a small claims court for disputes or claims within the scope of the court’s jurisdiction in lieu of proceeding to arbitration. This option does not apply to any appeal from a decision by a small claims court. Seller agrees to pay for one (1) day of mediation (mediator fees plus any administrative fees relating to the mediation).

Any mediator and associated administrative fees incurred thereafter shall be shared equally by the parties. The filing fees and case service fees for any claim pursued via arbitration shall be apportioned as provided in the Home Construction Arbitration Rules of the AAA or other applicable rules. The fees of the arbitrator(s) shall be shared equally by the parties.

Notwithstanding the foregoing, if either Seller or Buyer seeks injunctive relief, and not monetary damages, from a court because irreparable damage or harm would otherwise be suffered by either party before mediation or arbitration could be conducted, such actions shall not be interpreted to indicate that either party has waived the right to mediate or arbitrate. The right to mediate and arbitrate should also not be considered waived by the filing of a counterclaim by either party once a claim for injunctive relief had been filed with a court.

WHAT ’S NOT COVERED BY YOUR CAROLINA HOMES & COMMUNITIES LIMITED WARRANTY

In addition to other limitations and exclusions set forth in this Carolina Homes & Communites Limited Warranty and the accompanying Workmanship, Systems and Structural Standards, the Carolina Homes & Communites Limited Warranty does not provide coverage for the following items, which are specifically excluded:

1. Damage to any property, fixture, structure, improvement or appurtenance that was not constructed by Carolina Homes & Communites. You shall be responsible for paying any costs required to remove such property, fixture, structure, improvement or appurtenance if Carolina Homes & Communites deems it reasonably necessary to address a warranty claim.

2. Damage to land, landscaping (including sodding, seeding, shrubs, trees and planting), sprinkler systems, outbuildings, carports, or any other appurtenant structure or attachment to the dwelling, or other additions or improvement not a part of your Home.

3. Loss or damage which arises while your Home is being used primarily for nonresidential purposes.

4. Damages caused by changes in the level of the underground water table which were not reasonably foreseeable at the time of construction of your Home;

5. Loss of use of all or a portion of your Home.

6. This warranty does not apply to any manufactured item such as appliances, fixtures, equipment (except as specifically defined in the Workmanship, Systems and Structural Standards) or any other item which is covered by a manufacturer’s warranty, nor does it cover conditions that are caused by failure of any such manufactured item. Appliances and items of equipment not covered by this limited warranty, include but are not limited to: air conditioning units, attic fans, boilers, burglar alarms, carbon monoxide detectors, ceiling fans, central vacuum systems, chimes, dishwashers, dryers, electric meters, electronic air cleaners, exhaust fans, fire alarms, fire protection sprinkler systems, freezers, furnaces, garage door openers, garbage disposals, gas meters, gas or electric grills, heat exchangers, heat pumps, humidifiers, intercoms, oil tanks, outside lights or motion lights not attached to the Home, range hoods, ranges, refrigerators, sewage pumps, smoke detectors, solar collectors, space heaters, sump pumps, thermostats, trash compactors, washers, water pumps, water softeners, water heaters, whirlpool baths, and whole house fans.

Please note that the Workmanship, Systems and Structural Standards include reference to some items covered by this paragraph but the inclusion of those items in the Workmanship, Systems and Structural Standards is not intended to limit this exclusion. Any equipment failure covered by this paragraph is excluded from the Carolina Homes & Communites Limited Warranty and covered only by a manufacturer’s warranty, if any.

7. Any condition which has not resulted in actual physical damage to your Home.

8. Any loss or damage that is caused or made worse by any of the following causes, whether acting alone or in sequence or concurrence with any other cause or causes whatsoever, including without limitation, negligence on the part of any person: a. Negligence, defective material or work supplied by, or improper operation by, anyone including you or your family other than Carolina Homes & Communites or its employees, agents or subcontractors, including failure to comply with the warranty requirements of manufacturers of appliances, equipment or fixtures; b. Change of the grading of the ground that alters the original grade or flow of water at your Home, or does not comply with accepted grading practices; c. Riot or civil commotion, war, vandalism, hurricane, tornado or other windstorm, fire, explosion, blasting, smoke, water escape, tidal wave, flood, hail, snow, ice storm, lightning, falling trees or other objects, aircraft, vehicles, mudslide, avalanche, earthquake, volcanic eruption or Acts of God; d. Abuse of your Home, or any part thereof; e. Microorganisms, fungus, decay, wet rot, dry rot, soft rot, rotting of any kind, mold, mildew, vermin, termites, insects, rodents, birds, wild or domestic animals, plants, corrosion, rust, radon, radiation, formaldehyde, asbestos, any solid, liquid or gaseous pollutant, contaminant, toxin, irritant or carcinogenic substance, whether organic or inorganic, and electromagnetic field or emission, including any claim of health risk or uninhabitability based on any of the foregoing; f. Your failure to minimize or mitigate any defect, condition, loss or damage as soon as practicable.

9. Any loss or damage caused by buried debris (unless such debris was buried by Carolina Homes & Communites or its employees, agents or subcontractors), underground springs, sinkholes, mineshafts or other subsurface anomalies.

10. Any request for warranty performance submitted after an unreasonable delay from notice of the condition or, in any event, later than thirty (30) days after the expiration of the applicable Warranty Term.

11. Conditions consistent with or caused by normal wear and tear, including normal wear and tear caused by weather and/or other environmental conditions.

12. Any condition caused by the Homeowner's failure to properly maintain the home.

13. Any and all exclusions set forth in the Workmanship, Systems and Structural Standards.

LIMITATIONS ON CAROLINA HOMES & COMMUNITIES LIMITED WARRANTY

Homeowner obligations. You are obligated to care for your Home in such as way as to prevent or minimize damage to it and to properly maintain the Home. You should be aware that all homes go through a period of settlement and movement. During this period, your Home or components of your Home may experience some material shrinkage, cracking and other events which are normal and customary. Remember that you are responsible for proper maintenance of your Home including maintaining the original grades around your Home, planting trees and shrubs at a proper distance from your Home and conforming to generally accepted landscape practices for your region. Changing the drainage and grading patterns or trapping water near your home as a result of homeowner changes in grades and landscaping may cause damage to your foundation.

Disclaimer of Implied Warranties. Except as prohibited by laws of the state in which the Home
is located, all other warranties, expressed or implied, including but not limited to any implied warranty of habitability, are hereby expressly disclaimed and waived. The terms of the Carolina Homes & Communites Limited Warranty shall not be added to or varied either orally or in writing, and you agree to immediately notify Carolina Homes & Communites if you believe any employee or agent of Carolina Homes & Communites has added to or varied, either orally or in writing, the terms of the Carolina Homes & Communites Limited Warranty. Such notification shall not be deemed as a modification of the agreement regardless of whether Carolina Homes & Communites responds to the notice either verbally or in writing. In the event that any provision of the Carolina Homes & Communites Limited Warranty is determined to be unenforceable in your state, such determination shall not affect the validity of the remaining provisions of the Carolina Homes & Communites Limited Warranty.

Cap on Carolina Homes & Communites Limited Warranty. Carolina Homes & Communites’s total financial obligations under the Carolina Homes & Communites Limited Warranty are limited to the original sales price of your Home. This cap is calculated based on the cumulative total of all repairs, replacements or payments made during the Carolina Homes & Communites Limited Warranty. Our costs of designing, accomplishing and monitoring repair to your Home are included in this cumulate total.

Consequential Damages Not Covered. Carolina Homes & Communites shall not be liable for, and you expressly waive recovery of, any consequential damages that may result from the condition of any component of the Home, including but limited to: any diminution in value of the Home before or after repairs are performed; lost profits; damages to personal property; any personal injury of any kind including physical or mental pain and suffering and emotional distress, and any medical or hospital expenses; costs of food, moving and storage, relocation expenses, or rental value of the Home or any other costs due to loss of use, inconvenience or annoyance during repairs. Carolina Homes & Communites will, however, reimburse you for reasonable costs of temporary hotel accommodations and a reasonable daily food allowance for such period

of time that the repairs required by the claim are so extensive that you cannot reasonably reside in the Home during the repairs.

Other Coverage. Carolina Homes & Communites shall not be responsible for, and the Carolina Homes & Communites Limited Warranty shall not cover, any damages, costs or expenses that are covered
by your homeowners’ insurance or other insurance, government, or third party reimbursement programs. To the extent permitted by law, Buyer and Buyer’s insurance carrier waive any right of subrogation that Buyer or its insurance carrier may have in relation to any claim that may be made under this Warranty.

Not an Insurance Policy. The Carolina Homes & Communites Limited Warranty is not an insurance policy and Carolina Homes & Communites does not provide you any insurance through the Carolina Homes & Communites Limited Warranty or otherwise. You should always obtain Homeowner's insurance to protect your Home, and your bank or other mortgage provider may require Homeowner's insurance if you have a mortgage.

Discretion to Repair, Replace or Make Payment.

Carolina Homes & Communites reserves the option, at its sole discretion, to repair, replace or pay you the reasonable cost of repair or replacement for any claim made under this Carolina Homes & Communites Limited Warranty. The design method and manner of any repair shall also be at Carolina Homes & Communites’s sole discretion.

Warranty Terms Not Extended. The warranty terms of the Carolina Homes & Communites Limited Warranty shall not be extended by any repair, replacement or payment made under the Carolina Homes & Communites Limited Warranty. There shall be no warranty, express or implied, arising from repair or replacement work performed by or on behalf of Carolina Homes & Communites except for the remaining original warranty term.

Limitations on Structural Repairs. Structural repairs are limited to only those (i) repairs of damage to load- bearing portions of your Home that are necessary to restore their load-bearing function; (ii) repair of those non-load bearing portions damaged by the condition that gives rise to the claim and whose repair is necessary to make your Home safe, sanitary or otherwise livable; and (iii) repair and cosmetic correction of only those surfaces, finishes and coverings, original to the Home, that were damaged by the condition giving rise to the claim or by the repair of the condition giving rise to the claim.

Limitations on Post-Repair Condition of Home.

Repairs undertaken under the Carolina Homes & Communites Limited Warranty are intended to restore the Home to approximately the same condition as existed prior to the claim, but not necessarily to like-new condition.

Previously Known Conditions. The Carolina Homes & Communites Limited Warranty covers only those conditions which first occur during the term of the Carolina Homes & Communites Limited Warranty. In addition, any conditions you knew about prior to the Effective Date of Carolina Homes & Communites Limited Warranty such as items identified in the “walk-through,” “punch-list,” or in the case of a previously owned home, conditions that were identified on a home inspection report or were apparent through any reasonable inspection are not covered by the Carolina Homes & Communites Limited Warranty.

STATE SPECIFIC LIMITATIONS AND CLARIFICATIONS

Certain states have special laws that impact new home warranties. If your home is located in one of the states listed below, the information set forth for your state modifies or adds to the terms of this Warranty. If your home is not located in one of the following states, the following language is inapplicable to you and your Carolina Homes & Communites Limited Warranty. To the extent any applicable state statute invalidates any specific provision of this Warranty, the remaining provisions of the Warranty shall remain in full force and effect.

South Carolina. This agreement is subject to arbitration pursuant to the uniform arbitration act, section 15048-10, et. seq. code of laws of South Carolina , 1976, as amended .

CAROLINA HOMES & COMMUNITIES WORKMANSHIP, SYSTEMS AND STRUCTURAL STANDARDS

The following Workmanship, Systems and Structural Standards have been developed and accepted by the residential construction industry in general. The following Standards are expressed in terms of required standards under the Carolina Homes & Communites Limited Warranty.

Carolina Homes & Communites shall correct any condition that does not comply with these standards that occur within the applicable warranty term. Carolina Homes & Communites will attempt to match and replace with Homeowner's original choice of colors and materials, except where Homeowner custom-ordered the items.

Carolina Homes & Communites is not responsible for discontinued items, changes in dye lots, colors or patterns, or items ordered outside
of the original construction and does not guarantee an exact match to any paint color or other finish.

Structural components covered by the Structural Standards set forth on the following pages shall only include:

1. Foundations systems and footings
2. Beams
3. Girders
4. Lintels
5. Columns
6. Roof sheathing (only if your Home has original FHA/VA financing still in effect)
7. Load bearing walls and partitions
8. Roof framing systems
9. Floor systems
10. For the State of Colorado, basement slabs for the first four years of the structural warranty period but only if your Home has original FHA/VA-insured financing.

The following components are NOT covered under the Structural Standards set forth on the following pages:

1. Non-load bearing partitions and walls
2. Wall tile or paper
3. Plaster, laths or drywall
4. Flooring and sub-floor material
5. Brick, stucco, stone, siding or veneer
6. Any other type of exterior cladding
7. Roof shingles, roof tiles, sheathing, and 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
11. Basement and other interior floating, ground- supported concrete slabs
12. Any item covered under the workmanship and systems standards.