This agreement is made and entered into by and between the homeowners, Xxxxxxxx and Xxxxxxxx ("Xxxxxxxxxxxxxxxxxxxxxx") and the builder, Richmond American Homes of Virginia, Inc., ("Richmond American")

WITNESSETH

WHEREAS, Xxxxxxxxxxxxxxxxxxxxxx entered into a Purchase Agreement with Richmond American dated May 14, 2000 ("Purchase Agreement"). The Purchase Agreement provided for the construction and sale of a new home in Prince William County, Virginia, having a street address of xxxxxxxxxxxxxxxxxxxxxx, Virginia ("Home"). The Home was constructed by Richmond American and settlement on Xxxxxxxxxxxxxxxxxxxxxx's purchase of the Home occurred on October 23, 2000; and

WHEREAS, Xxxxxxxxxxxxxxxxxxxxxx have notified Richmond American in writing that there are and or were certain defects and unsatisfactory conditions associated with the Home, including, but not limited to, the structure, flooring, covering draftiness, insulation and landscaping of the Home (the "Claims"); and

WHEREAS, it is now the desire and express intention of Richmond American to resolve such Claims, and Xxxxxxxxxxxxxxxxxxxxxx agree to the resolution of its Claims upon the terms and conditions which follow.

NOW, THEREFORE, for and in consideration of the foregoing premises, the promises set forth herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

1. Richmond American agrees that, at its sole expense, it shall perform the work (the "Work") required to correct the following defects and unsatisfactory conditions:

1. Corrections of building codes violations:
   1. Cuts in the floor joists
   2. Drain tile orientation and day light position
2. Squeaking and uneven sub-floors shall be repaired and adjusted on the 1^st and 2^nd levels; (Adhesives conforming to APA specification AFG-01 or ASTM D3498, applied in accordance with manufacturer’s recommendations, shall be used;)
   1. Defective subfloor and non CABO compliant panels shall be replaced with ¾" tongue & groove CABO compliant plywood sheathing.
   2. All subfloor panels shall be glued and screwed to the joists.
   3. Screws shall be positioned 3/8" from the edges of the panel.
   4. Screws shall be spaced 6 inches on center at edges, and 12 inches on center at intermediate supports;
   5. Screws attaching to the joists shall have a minimum engagement length of 1" into the joist;
   6. All screws shall be set below the surface
3. Overlay one half inch CABO compliant plywood over existing and repaired sub-flooring on the first and second floors; (Adhesives conforming to APA specification AFG-01 or ASTM D3498, applied in accordance with manufacturer’s recommendations, shall be used;)
   1. Overlay sheets are to be staggered, glued and screwed to the joists and the subfloor so as to form a composite section;
   2. Screws shall be positioned 3/8" from the edges of the panel;
   3. Screws shall form a grid with spacing not more than 6 inches on center;
   4. Screws attaching to the joists shall have a minimum engagement length of 1" into the joist;
   5. Screws attaching to the subfloor shall have a minimum engagement length of 9/16" into the subfloor;
   6. All screws shall be set below the surface;
   7. Glue between the overlay panels and subfloor shall form a grid with minimum spacing of not more than 6" between beads
   8. Glue bead diameter shall be not less than ¼" and shall be applied in a serpentine manner;
   9. Proper pitch of stair steps shall be maintained;
   10. Required height of railings shall be maintained;
4. Adjustment of the bottoms of doors after the installation of the one half inch plywood floorboards;
   1. Uniform gaps between newly layed floor and interior and entry/exit doors are to be maintained to allow installation of hardwood flooring and/or carpets without impeding the safe operation of the doors and proper air circulation of the HVAC system.
5. Replacement of existing carpet and padding with new carpet and padding of the same original selection shall be laid on the stairs and entire 2^nd floor except for the two bathrooms and laundry room;
   1. Padding shall be installed properly
   2. Carpet shall be properly stretched and installed without visible or felt seams
6. Replacement of existing vinyl with new vinyl of the same original selection shall be laid in the 2^nd floor master bathroom, hall bathroom and laundry room;
   1. The underlayment shall be nailed or stapled at least every 5 to 6 inches in the middle and every 3 inches along the edges
   2. Nails or staples shall be set below the surface
   3. Underlayment panel seams shall be staggered
   4. All joints between underlayment panels must be filled and leveled.
7. Draftiness and insulation problems of the home shall be corrected, especially in the areas of the Master suite, Fireplace, Front Door, Kitchen/Garage Door and Basement;
   1. The source of draft and heat loss shall be determined, and eliminated by additional insulation, gap sealing and/or house wrapping or such other actions as may be required.
   2. Exterior exit/entry doors shall be adjusted to close and seal properly and eliminate all existing gaps
   3. Fireplace exterior enclosure "dog house" shall have gaps at corners and roof lines sealed so that air infiltration into the house is eliminated
   4. Gaps between house frame and basement wall sills shall be sealed so that air and insect infiltrations are eliminated
8. Uneven bulges, seams, stud attachments and nail pops on all wall surfaces across the entire house to be repaired and/or adjusted;
   1. Ceiling and wall panels shall be screw fastened 3/8" from the edge and spaced 6 inches on center at edges, and 12 inches on center elsewhere;
   2. Tape, float, and paint surfaces to a flat finish without ridges, seams, or bulges
   3. All Corners shall be square
9. Family Room windows shall be repaired and/or replaced for proper operation to resolve binding and looseness;
10. Stained/Discolored and out of level fireplace stones shall be replaced;
11. Structural noise in the presence of wind shall be corrected;
    1. The source shall be determined and eliminated;
    2. Ensure proper installation of the thermal barrier material
    3. Ensure proper installation and rigidity of the roofing structure
12. Protruding, uneven, and out of square tiles in the Master Bathroom shall be corrected;
13. Trim finish in both upstairs bathrooms shall be corrected;
14. All existing lawn shall be properly replaced with new and healthy sod.
    1. Areas shall be properly leveled and graded prior to any work
    2. Areas shall be moistened prior to sod installation
    3. Sod strips shall be tightly butted and seams shall be staggered
15. Ailing/dead trees and plants at the front of the house shall be replaced with new healthy trees/plants of the same kind and species;
16. Properly level the driveway and apply the final top coat to the proper thickness, slope and pitch;
17. Stains on front concrete stoop shall be removed;
18. Install hardwood floors, Bruce Bayport Strip, CB-826 Square Edge, Butterscotch, on the entire first level.
    1. Subflooring shall be properly repaired
    2. A layer of 15# builder’s felt shall be used between hardwood and subfloor
    3. Installation of the hardwood floor shall not impede the future removal of the Dishwasher
    4. Proper operations of all exterior entry/exit and interior doors shall not be impeded after installation of the hardwood flooring
    5. Proper interior air circulation of the HVAC system shall be maintained after the installation of the hardwood flooring

2. The Work shall commence on or before May ____, 2002, and shall be completed within three (3) weeks from the date of commencement. The failure of Richmond American to complete the Work within the time period set forth above shall constitute a breach of this Agreement.

3. The Work shall be performed to the satisfaction of Xxxxxxxxxxxxxxxxxxxxxx and shall be in accordance with (i) the standard in the building industry, (ii) the Uniform Statewide Building Code, and (iii) all other applicable regulations.

4. Richmond American shall warrant all Work for a period of one (1) year from the date of completion and the parties agree that, in addition, Xxxxxxxxxxxxxxxxxxxxxx shall retain all rights under the existing RWC New Home Warranty.

5. Xxxxxxxxxxxxxxxxxxxxxx hereby grant a license to Richmond American and its agents to enter the Home, solely for the purpose of making such repairs and replacements, except that entry shall take place only during weekday business hours, unless otherwise consented to, in writing, by Xxxxxxxxxxxxxxxxxxxxxx. Richmond American releases Xxxxxxxxxxxxxxxxxxxxxx from all liability incurred by Xxxxxxxxxxxxxxxxxxxxxx by reason of entry of Richmond American's authorized agents and indemnifies Xxxxxxxxxxxxxxxxxxxxxx against any and all losses or claims, including claims of subcontractors utilized to perform the Work. Richmond American further agrees that it shall correct to the sole satisfaction of Xxxxxxxxxxxxxxxxxxxxxx any collateral damage which occurs to the Home in connection with performing the Work.

6. Conditioned upon completion of the Work to the satisfaction of Xxxxxxxxxxxxxxxxxxxxxx within the time period set forth above, Xxxxxxxxxxxxxxxxxxxxxx agree as follows:

a. They will permanently remove, and forever not publish, all displays, e-mails, items, or matters regarding or related to the Purchase Agreement, and Richmond American from the website at http://mywebpages.comcast.net/orion77 (the "Website");

b. Except as to any disclosures which may be required by law, they shall not distribute or reveal this Agreement or disclose the fact, nature, terms or conditions of this Agreement to firms, organizations, or agencies.

7. Richmond American hereby releases Xxxxxxxxxxxxxxxxxxxxxx from any and all claims which arise or are in any way connected with the Website and its contents.

8. In the event of a dispute between the parties relating to this Agreement, the dispute shall be submitted to a mutually agreeable arbitrator. If the parties cannot agree on an arbitrator, then the arbitrator shall be selected by the Circuit Court of Prince William County.

9. In the event of a breach of this Agreement by Richmond American, Xxxxxxxxxxxxxxxxxxxxxx shall be entitled to an award of reasonable attorney's fees and all costs.

10. This constitutes the entire agreement between the parties and this Agreement may not be amended, altered, modified or changed unless such amendment, alteration, modification or change is in writing and is signed by all of the parties to be charged thereby.

11. This Agreement shall be binding upon the parties, their heirs, successors and assigns.

12. This Agreement shall be governed by and construed under the laws of the Commonwealth of Virginia.

WITNESS the following signatures and seals:

________________________(SEAL)                 Date: _______________

XXXXXXXXXXXXXX

________________________(SEAL)                Date: ________________

XXXXXXXXXXXXX

RICHMOND AMERICAN HOMES OF VIRGINIA, INC., a Virginia corporation

Date:_____________ By:__________________________(SEAL)

Butch Gearheart

Senior Vice President