RESIDENTIAL CONSTRUCTION CONTRACT FIXED COST

1 INITIALED FOR IDENTIFICATION_____/_____OWNER _____BUILDERPage 1 of 761 8 5 C edarPoint D rive L ivingston Texas 7 7 3 5 1 9 3 6 .6 4 6 .6 7 6 7 Fax 9 3 6 .6 4 6 .7 9 7 0 TRC C 2 8 1 3 8 RESIDENTIAL CONSTRUCTION CONTRACT FIXED COSTTHIS DOCUMENT CREATES IMPORTANT LEGAL OBLIGATIONS THAT YOU SHOULD UNDERSTAND PRIOR TOSIGNING. IF YOU ARE UNCERTAIN ABOUT YOUR RIGHTS OR OBLIGATIONS UNDER THIS AGREEMENT, YOUMAY WISH TO CONSULT AN Home Builders, Inc.(the Builder ) and _____(the Owner ) (the Owner and Builder together will be referred to as the Parties ) are entering into this residentialconstruction CONTRACT (referred to as the CONTRACT ).

2 The purpose of this CONTRACT is (i) to establish and define theconstruction activities that the Builder will perform, (ii) to delineate the general obligations and responsibilities of AND GENERAL SCOPE OF THE WORK TO BE agrees and promises to payBuilder the cost of the Work , as specified in Paragraph three (3) of this CONTRACT , plus any additional consideration of such payments, the Builder hereby agrees to furnish certain labor, services,equipment, materials, and other related activities (collectively referred to as the Work ) for the CONSTRUCTION of certainimprovements, generally described as a single-family residence (the Home ), on Lots _____BlockSection____, out of the _____ Subdivision that is located in _____ County, Texas, and havingthe following street address_____(the Property ).

3 The Original Value of this CONSTRUCTION CONTRACT is _____payable in US Home will be constructed in substantial compliance with certain schematic drawings that have been or will beprepared by, Von Schmidt Design Group dated, _____, 20, and consisting of ____pages, that have been initialedby the Parties for the purpose of identification and which by this reference are incorporated in this CONTRACT (the Plans ). In addition to the Plans, CONSTRUCTION of the Home shall incorporate certain materials and equipment, andcomply with certain procedures and requirements (collectively referred to as the Specifications ) which are detailed inthe attached Exhibit A.

4 In the event of a conflict with the Plans and Specifications, the Specifications shall a detail of the CONSTRUCTION not be provided within the Plans and/or Specifications, or should an alternativeINITIALED FOR IDENTIFICATION_____/_____OWNER _____BUILDERPage 2 of 76building practice be available lieu of a specified procedure, the Builder may select a CONSTRUCTION procedure thatcomplies with applicable building Plans and Specifications may be modified, limited, or negated as the Parties may subsequently agree in writingthrough change orders as defined in Paragraph 8 in this compliance of the Plans and Specifications with all applicable building codes, regulations, restrictive covenants orany other condition affecting the Property (including easements and zoning requirements) shall also be the Owner otherwise specified, material used by the Builder in CONSTRUCTION of the Home shall be as prescribed in the Plansand Specifications.

5 In the event specified materials are not reasonably available, or if the procurement of such itemwould cause undue delay to the progress of the Work, Builder may substitute materials of comparable grade in material, equipments, or service specified by Owner shall include the manufactures number and this number notthe written description shall be the basis of the identification of the items by Builder. The CONSTRUCTION of the Home isalso subject to changes is the Plans and Specifications as may be required by Federal, State or Local substitutions or change shall be specified in a change acknowledges that thesesubstitutions and or changes may occur during CONSTRUCTION and agrees that so long as the Home is built in substantialcompliance the Plans and Specifications, acceptance of any such minor deviation will not be unreasonably OF THE WORK/BUILDERS Owner agrees to pay Builder (i) the CONTRACT Price ,and(ii)

6 Ifapplicable the cost of the lots included in a separate lot sales agreement prepared in accordance with the standardTexas Real Estate Commission form. The Owner agrees to pay the Builder as follows:(a)The sum of $_____ (the Commencement Fee ) shall be payable upon execution of this CONTRACT ,and shall be applied against the CONTRACT price due to Builder under this CONTRACT . The commencements fee is andnonrefundableunder any circumstances and is paid as consideration for the Builders efforts to prepare this CONTRACT , toformulate a CONSTRUCTION budget, perform research related to specifically fabricated items, and define any materialsrequired for this project as well as any deposits.

7 (b)The remainder of the CONTRACT price shall be paid in accordance with a series of written requests forpayment (each to refer to as a Draw request) submitted to Owner by Builder on the basis of the payment schedule setforth in the attached (Exhibit B) as the Builder contracts for/or purchases materials, and as work is performed within thevarious categories referenced in the payment schedule, Builder periodically shall submit to Owner a Draw request tocover the cost of materials ordered/purchased, amounts payable to subcontractors for the Portion of the workperformed, and the Builders overhead and profit as associated with the various components the work.

8 The actual Drawamount will be calculated but multiplying the percentage of Work completed and materials purchased for the variouscategories the work listed on the payment schedule by the specified value [ Assigned Value ] shown in the paymentschedule for those categories. Owner shall pay to Builder, within Five business days of the submission of a Drawrequest, the amount then requested under the payment schedule. Draw requests not timely paid shall begin to accrueinterest at the rate of 12% per annum on the 10thday after FOR IDENTIFICATION_____/_____OWNER _____BUILDERPage 3 of 76(c)Owner shall pay the remaining balance [ Final Payment ] of the unpaid portion of the CONTRACT priceupon substantial completion of the work [as defined in paragraph 8].

9 The existence of minor cosmetic repairs andadjustments shall not delay substantial completion and the payments due Builder at that time. Upon full payment ofsums due Builder, Owner shall be entitled to the Builders Indemnity against liens and affidavit of BILLS-PAID [a copy ofwhich is attached as exhibit C] under no circumstances shall the Owner be permitted to occupy or use the home withoutpaying in full the CONTRACT price [as modified by any change orders].Sums to be paid by the Owner that are not part of the CONTRACT price [loan fees, utility hookups] will be paid directly bythe Owner, who will provide the Builder with proof of payment upon parties have agreed to a specific budget ( Allowances ) for certain amenities andmaterials be incorporated into the home, all of which are detailed in the attached Exhibit J.

10 The sums allocated to eachlisted allowance are included within and part of the CONTRACT price. Each Allowance listed includes the components costof material and labor (if any), plus any appropriate sales tax, delivery and other costs associated with allowances are also premised on the understanding that purchases will only made from suppliers typically used bythe Builder, and do not contemplate the payment of deposits, service fees, or the delays that may be encountered whenother suppliers are used. As Builder incurs material and labor cost with respect to specific allowance those costs shall beapplied against the applicable the event an allowance for an item is exceeded, the overage shallconstitute an increase in the CONTRACT price and shall be set forth in a change order as prescribed in paragraph 9 of thiscontract.