Subject to the exclusions and limitations listed below, Seller provides the following fit and finish warranty on the home you are purchasing (this "Warranty").

ARTICLE 1

DEFINED TERMS

As used in this Warranty, the following terms shall have the meanings described below.

1.1 Close of Escrow.: "Close of Escrow" means the date of recordation of the grant deed conveying the Residence by Seller to Owner.

1.2 Components.: "Components" means cabinets, mirrors, flooring, interior and exterior walls, wall coverings, countertops, paint finishes and trim.

1.3 Condominium: "Condominium" means the Residence in a condominium and the

interest in the Common Elements purchased by Owner from Seller.

1.4 Deficiency.: "Deficiency" means the Fit and Finish of a Component does not meet standards of quality as measured by acceptable trade practices or applicable industry standards, subject to the terms, conditions and exclusions of this Warranty.

1.5 Fit and Finish: "Fit and Finish" means the non-structural, cosmetic appearance or alignment of the Components, subject to the terms, conditions and exclusions of this Warranty.

1.6 Maintenance Manual.: "Maintenance Manual" means the maintenance manual provided by Seller to Owner which sets forth the obligations of the Owner for maintenance of the Residence and a schedule for such required maintenance .

1.7 Owner.: "Owner" means the purchaser or owner of the Residence.

1.8 Home Orientation Tour.: "Home Orientation Tour" means the walk-through inspection of your Residence, with a Pinnacle Representative, prior to Close of Escrow for the purpose of familiarizing you with the features and appliances in your home and during which the Fit and Finish of Components will be inspected and if any Deficiencies are discovered, they must be identified and reported to the Pinnacle Representative. If such Deficiencies are not reported at the time of the Home Orientation Tour, they may be excluded from coverage under this Warranty, as items of damage caused by Buyer or a third party.

1.9 Purchase Agreement: "Purchase Agreement" means the Pinnacle Purchase Agreement by and between Seller and Owner for the purchase of the Residence.

1.10 Residence.: "Residence" means the individual portion of a Condominium to be occupied or leased by an Owner for residential purposes which has been acquired by Owner.

1.11 Seller.: "Seller" means Pinnacle.

1.12 Unforeseen Acts of Nature.: "Unforeseen Acts of Nature" means a weather condition, earthquake, or manmade event such as war, terrorism, or vandalism, in excess of the design criteria expressed by the applicable building codes, regulations, and ordinances in effect at the time of original construction.

1.13 Warranty Period: "Warranty Period" means ONE YEAR from the Close of Escrow.

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ARTICLE 2

WARRANTY

2.1 Seller warrants the Fit and Finish of the Components to be free from Deficiencies during the Warranty Period, subject to the exclusions in Article 4.

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ARTICLE 3

SCOPE OF WARRANTY

3.1  Seller's Performance   During the Warranty Period, Seller will, within a reasonable amount of time, if repair or replacement is appropriate under this Warranty, repair or replace the affected Components at no charge to Owner. The decision whether to repair or replace the Components shall be within the sole discretion of Seller.

3.2  Owner's Responsibility   It is the Owner's responsibility to properly maintain the Components, to notify Seller as soon as reasonably possible after Owner becomes aware of a Deficiency and to provide Seller with the opportunity to investigate the Deficiency and/or repair or replace the Component, as appropriate. Owner's failure to fulfill these obligations may void this Warranty in accordance with the Exclusions in Article 4 and Section 3.6.

3.3   Repair Materials/Subcontractors   All repairs or replacements will be made with materials or components identical to, or of an equal or better grade or quality than the materials or components used in the original construction of the Residence. Seller has the right to choose the specific materials and components and the subcontractors used for repair or replacement work in accordance with industry standards. There could be color or texture variations with the new materials.

3.4  Assignment of Other Insurance and Warranties  In the event Seller repairs, replaces or pays the cost of repairing or replacing any Deficiency covered by this Warranty for which Owner is covered by any other insurance or warranty, Owner hereby assigns to Seller all rights, proceeds or payments under such other insurance or warranty to the extent of the actual cost of repair or replacement incurred by Seller, and hereby authorizes Seller to file a claim against any insurance or warranty on Owner's behalf. Owner shall cooperate with Seller, at no out-of-pocket cost to Owner, with respect to such claim. To the extent permitted by Owner's insurance, Owner agrees to look only to Owner's insurance coverage for covered claims and to waive any right of subrogation to the extent of such insurance.

3.5  DISCLAIMER OF IMPLIED WARRANTIES   EXCEPT FOR THIS WARRANTY, SELLER DISCLAIMS ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO, THAT THE HOME WAS DESIGNED AND CONSTRUCTED IN A REASONABLY WORKMANLIKE MANNER, FITNESS FOR A PARTICULAR PURPOSE, AND MERCHANT ABILITY.

3.6  LIMITATION OF AVAILABLE REMEDIES   OWNER AGREES THAT THE  SOLE AND EXCLUSIVE REMEDIES UNDER THIS WARRANTY SHALL BE TO REPAIR OR REPLACE THE COMPONENT. OWNER UNDERSTANDS THAT REPAIR OR REPLACEMENT UNDER THIS WARRANTY IS EXPRESSLY CONDITIONED UPON SELLER OR ITS AUTHORIZED AGENT, BEING GRANTED A REASONABLE OPPORTUNITY TO REPAIR OR REPLACE SUCH COMPONENT. SELLER, OR ITS AUTHORIZED AGENTS, AND NOT OWNER, SHALL DETERMINE THE MATERIAL AND METHODS TO BE USED IN EFFECTING SUCH REPAIR OR REPLACEMENT.

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ARTICLE 4

EXCLUSIONS

4.2 Owner's Failure to Properly Maintain. Any Deficiency, loss or damage caused by lack of reasonable care and maintenance, failure to follow a manufacturer's maintenance recommendations or schedule, Seller's maintenance requirements or schedule, or commonly accepted Owner maintenance obligations. Seller has provided a description and list of suggested Owner's care and maintenance items and procedures in the Maintenance Manual, including schedules. From time to time, Seller may perform a maintenance task for the benefit of Owner at no charge; however, performing a task does not imply or require that Seller will perform a similar task at a later date, nor shall such performance extend the Warranty Period.

4.3 Casualties or Unforeseen Acts of Nature .. Any Deficiency, loss or damage caused by Unforeseen Acts of Nature, casualties normally covered by homeowner's insurance, or any other cause not under the control of Seller. Damage of this sort may be covered by your homeowner's insurance. You should contact your insurance carrier for any such damage.

4.4 Abuse of Residence .. Damage caused either by the misuse, abuse, neglect or the use of the Residence in a manner which was not intended.

4.5 Materials Furnished by Owner.. Any work done by or at the request of Owner or including any work done by anyone other than Seller or the employees, agents or subcontractors expressly selected by Seller. Any Deficiency caused by material furnished by or at the request of Owner.

4.6 Variations in Natural Materials .. Variations in natural materials, such as stone, marble, wood grain and color of stained wood used in cabinets, paneling, siding, doors and wood trim. These variations are inherent characteristics of natural materials and are not a Deficiency.

4.7 Failure to Give Timely Notice .. Any Deficiency, loss or damage caused or made worse by Owner's failure to timely notify Seller of any Deficiency.

4.8  Failure to Mitigate Damages .. Any Deficiency, loss or damage caused or made worse by Owner's failure to minimize or prevent damages in a timely manner.

4.9 Refusal to Allow Repair.. Any Deficiency, loss or damage caused by the Owner's failure to allow reasonable and timely access for inspections and repairs.

4.10 Owner or Third-Party Negligence .. Any Deficiency, loss or damage caused or made worse by the negligence of Owner (or Owner's agent, employee, subcontractor, independent contractor, or consultant) or a third party.

4.11 Successful Repair .. Any Deficiency, to the extent that such Deficiency has been successfully repaired or corrected.

4.12 Released Violation. Any Deficiency, for which liability has been released by Owner pursuant to a release agreement with Seller, Seller, a manufacturer or any other third party.

4.13 Warranty Period. Any Deficiency that occurs after the Warranty Period.

4.14 Statutory Claims .. Any claims for Deficiencies, loss or damage governed by California Civil Code Sections 895 through 897, as may be hereafter amended.

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ARTICLE 5

PROCEDURES FOR FILING A WARRANTY CLAIM

5.1 How to Request Warranty Service .. To assure quality, and to allow Seller to maintain a complete file on your home, all requests for warranty service under this Warranty must be submitted in writing to Seller. Please use a copy of the Warranty Service Request form which is attached to the back of this manual.

If the form is not available, you may send your request by letter or e-mail. Warranty Service Request Forms and letters can be mailed to:

 

or telefaxed to (619) 231-7073. Please complete the form fully and describe the location and nature of your problem in as much detail as possible.

ALL SERVICE REQUESTS MUST BE SUBMITTED WITHIN 30 DAYS AFTER THE DISCOVERY OF A DEFICIENCY, BUT IN NO EVENT LATER THAN THE EXPIRATION OF THE WARRANTY PERIOD.

5.2 Warranty Service Schedule .. Upon receipt of your request, Seller will schedule an appointment to have one of its Customer Service Representatives inspect the problem and determine whether the item is covered by this Warranty. In most cases, Warranty inspection appointments will be scheduled to take place at your home within 14 days of the receipt of the request.

If it is determined that the problem is covered by this Warranty, Seller will attempt to schedule the repair work to take place within the next thirty (30) calendar days. Repair work is generally done Monday through Friday from 8:00 a.m. to 4:00 p.m.

5.3 Time for Corrective Work. Seller intends to fulfill its obligations for a particular service request within (30) days of its receipt of a written request so long as Seller is given reasonable cooperation by Owner. However, Owner recognizes that a thirty (30) day period for certain covered repairs or replacements may be insufficient and it may be necessary to extend that thirty (30) day period.

5.4 Service Requests Not Covered by Warranty .. If Seller determines that a particular service request is not covered by this Warranty, Seller will provide Owner with a notification describing why the Owner's service request is not covered. Failure to send such a notice shall not be deemed evidence that a service request is a covered Deficiency. If a service request is governed by California Civil Code, Section 895, et seq., the Purchase Agreement will apply to such service request, instead of the procedures set forth in this Article 5.

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ARTICLE 6

GENERAL PROVISIONS

6.1 Applicable Law.. This Warranty is made in the State of California and is to be interpreted and constructed in accordance with the cases and laws of California.

6.2 Interpretation. Whenever the context requires, the use herein of one gender includes both genders and the singular number includes the plural number.

6.3 Modification. No modification or change of this Warranty is valid unless it is in writing and signed by Owner and Seller.

6.4 Captions .. Captions are inserted for convenience of reference only and do not define, describe or limit the scope or intent of this Warranty or any provisions hereof.

6.5 Time of the Essence .. Time is of the essence on all matters of any nature arising under this Warranty.