THE WORKMANSHIP AND SYSTEMS WARRANTIES. Correction of Workmanship/Systems Defects is the responsibility of the Member. The Insurer is a surety securing Member’s obligations under the Workmanship/ Systems warranties only if the Member defaults on its obligations. If Insurer’s surety obligation is triggered due to the Member’s default, the Insurer (in its sole discretion) will adjust the claim or suit, determine the scope of warranty coverage and settle, repair, replace or pay the cost of repair, including the manner and method of any repairs for any item(s) included in the Member’s Workmanship or Systems Warranty. In the event of Member’s default, Member waives all rights in law and equity, agrees the Insurer is subrogated to Homebuyer’s rights against Member and agrees to indemnify Insurer for any damages incurred in performing Member’s obligations, including but not limited to, costs of materials and labor; cost of inspecting the Home and servicing the claim; reasonable fees incurred for engineers, for independent inspectors, and arbitration costs paid by 2-10 HBW or Insurer; and any and all costs, including reasonable attorneys’ fees, incurred in collecting such expenses from the Member.

THE STRUCTURAL DEFECT WARRANTY. Insurer indicated on the signature page is the Insurer of the Structural Defect warranty. Insurer (in its sole discretion) will adjust all claims, determine scope of warranty coverage and settle, repair, replace or pay cost of repair, including, the manner and method of any repairs. Insurer will only be liable for the cost of those repairs related to Structural Defects which Insurer investigates, designs and approves in writing. Member agrees that it will not repair a Structural Defect without the Insurer’s prior written consent. A Member may make a Structural Defect claim on a Home transferred to unrelated third party; a Member may not make a Structural Defect claim on a Home while he owns or has title to the Home.