Dealer Homesite Rental Agreement

DEALER HOMESITE RENTAL AGREEMENT

THIS CONTRACT is entered into this / day of / , 20,
by and between
(Community) and
(Retailer).

WHEREAS Retailer desires to open a model center and to sell its homes in Community; and

WHEREAS Community desires to provide for standardization of Retailer participation within the Community regarding Retailer model centers and speculation (spec) homes;

NOW, THEREFORE, in consideration of the mutual obligations and covenants set forth below, Community and Retailer hereby agree as follows:

Model Center Homes: Retailer agrees to setup a “model center,” consisting of () fully-furnished show homes. Homesite charges (see paragraph 5) for model center homes shall begin after the homes have been on a homesite for thirty (30) days.

Spec Homes: Retailer will install a minimum of () spec homes. Each spec home will be fully setup, inspected, and ready for immediate purchase and occupancy. Homesite charges (see paragraph 5) for each of the initial () spec homes, as well as each replacement home under paragraph 3, shall begin after each home has been on a homesite for thirty (30) days.

Replacement of Sold Homes: As each spec home is sold, Retailer will place another new spec home on another homesite which will be fully setup, inspected, and ready for immediate occupancy within thirty (30) days of the closing on the previous spec home. In the event Retailer is unable to replace sold inventory within the thirty (30) days contemplated in this paragraph due to delays caused by the manufacturer, Retailer may procure an additional sixty (60) days to replace the inventory by performing the following:

a.Paying homesite charges on the replacement homesite beginning on the 31st day after the closing on the sold home, and

b.Providing Community with written confirmation from the manufacturer of the purchase order for the replacement home (containing the anticipated delivery date) as placed within the original thirty (30) day reorder requirement.

Hazard and Liability Insurance/Indemnification: Retailer will carry hazard insurance and liability insurance of $1 million per occurrence/$1 million aggregate on each of Retailer’s homes with Community as a named insured, and will indemnify and hold Community harmless for any losses resulting from actions or inactions of Retailer or its employees, agents, or representatives in connection with Retailer’s provision, maintenance, and sale of homes within the Community.

Site Charges: Retailer will pay Community monthly “homesite charges” for each home until it is sold. Homesite charges shall consist of:

a. / $ / for / months; from
month on, homesite fees are at prevailing rate

b.Utilities, including water and sewer

Community Setup Package: Retailer will also pay Community the sum of ($) per home for the “Community Setup Package” when each home arrives on the homesite. The Community Setup Package for each home will include:.

Community Standards: Retailer will ensure that all homes are setup to Community standards, at Retailer’s expense. Community standards require that the following items be accomplished by Retailer for each home:

a.Retailer shall construct deck(s) in accordance with the attached specifications (Exhibit A).

b.Retailer shall construct a shed in accordance with the attached specifications (Exhibit B). The minimum size of the shed shall be ; the maximum size shall be ; and the maximum height shall not exceed .

c.All home exteriors must be siding.

d.Placement of multi-section homes is encouraged; however, single-section homes will be allowed if the quantity and placement is approved by Community.

e.All roofs shall be constructed of .

f.All skirting shall be material, unless the homes are hardboard-sided, in which case hardboard skirting may be used only if installed to Community specifications (Exhibit C).

g.Retailer shall use a “hard wire” connection for the electrical hookup and shall bury the line between the meter and the home.

h.Retailer shall install a gas hookup from the meter to the home, if gas connection needed.

i.Retailer shall provide a home sewer hookup to the sewer drop.

j.Retailer shall provide a home water connection to the water riser and appropriate heat tape or insulation as spec home and installation may require.

Other Site Requirements: In addition to complying with the Community standards as set forth above, Retailer shall also comply with all applicable City specifications including, but not limited to, the Federal Emergency Management Agency (FEMA) requirements for homesites located within any area designated as a flood plain. Retailer will be responsible for lawn care at all model and spec homes.

Contractor Insurance/indemnification: Retailer shall ensure that all contractors hired in connection with the installation and setup of the homes carry Workers’ Compensation and General Liability Insurance. Retailer will provide certificates of Workers’ Compensation and General Liability Insurance for each contractor to Community prior to any work being done on Community premises. Retailer shall indemnify and hold Community harmless for any losses resulting from actions or inactions of Retailer or its contractors in connection with the installation and setup of Retailer’s homes in the Community.

Damage/Rent Deposit: Prior to or on the date of executing this Contract, Retailer will pay Community an initial damage/rent deposit of ($), representing ($) or () for each of the () homes Retailer is obliged to place on homesite under this Contract. In the event Community fails to honor its obligations to Retailer hereunder during the term of this Agreement (as set forth in paragraph 11), Community shall refund Retailer’s deposit, but shall not be obligated to pay any interest or penalties to Retailer in connection therewith. The damage/rent deposit will be refunded to Retailer ninety (90) days after the () show homes and initial () spec homes are setup by Retailer in compliance with this Agreement.

Term: This Contract shall remain in effect for a term of twelve (12) months.

Liquidated Damages: Retailer agrees that sums paid Community under paragraph 10 shall be retained as liquidated damages if any of the following occur:

a.Retailer fails to move the () show homes into the model center and prelease the () homesites within sixty (60) days of receiving written notification from Community that homes can be moved into the community. Retailer will be deemed to have received notification by the third (3rd) business day after Community has placed written notification in the U.S. mail addressed to Retailer at the address set forth in paragraph 17.

b.Retailer fails to setup the () show homes and sales office within thirty (30) days after moving them in.

c.Retailer fails to setup and maintain any home in accordance with community standards as set forth in paragraph 7.

Site Selection: Ordinarily, Retailer must install all homes on homesites selected by Community at Community’s sole discretion. However, Retailer may select for installation any homesite not previously reserved by providing Community: 1.) a Purchase Agreement for the home to be placed on the homesite which has been signed by Retailer and the purchaser(s), and 2.) the non-refundable payment, in advance, of the Community setup package charge under paragraph 6 for the home.

Community agrees that the term and conditions of all Dealer Homesite Rental Agreements for Retailers placing homes in the Community shall be identical.

Termination: Community may terminate this Contract for any reason prior to issuing notice to Retailer that homes can be moved into the Community by: 1) delivering written notice of termination to Retailer; and 2) tendering to Retailer a refund of any deposit paid by Retailer under paragraph 10, without interest or penalties in connection therewith. Such written notice and refund shall be deemed delivered three (3) business days after Community deposits the notice into the U.S. mail addressed to Retailer at the following address:

Time is of the essence in this Contract and in case any party shall fail to perform his/her obligations hereunder at the time fixed for the performance of such obligations by the terms of this Contract, the other party may, at its election, terminate the Contract or seek damages against the non-performing party.

This Contract is a legal document. Retailer and Community represent that they have each executed this document voluntarily and after consultation with such legal counsel as they deem necessary.

It is mutually understood and agreed that this Contract shall be governed by the law as of the State of , both as to interpretation and performance. In the event of any dispute arising pursuant to this Contract, the parties agree that the matter shall be submitted to resolution under the laws of the State of and decided in district court, and that the prevailing party shall be awarded its costs and reasonable attorney fees.

This instrument embodies the whole agreement of the parties. There are no promises, terms, conditions, or obligations other than those contained herein, all previous communications and negotiations between the parties, either verbal or written, not contained herein being hereby withdrawn and annulled.

The individual signing below as Retailer’s authorized representative represents that he/she has the authority to execute this Contract on behalf of Retailer and to bind Retailer to its terms.

WHEREFORE, Retailer and Community have appended their signatures as of the date set forth above.

Name of Retailer / Name of Community
By: / By:
Signature / Signature
Printed Name of Retailer’s Authorized Representative / Printed Name of Community’s Authorized Representative
Title of Retailer’s Authorized Representative / Title of Community’s Authorized Representative