• Associated Dealers, INC. (ADI) will consign the Dealer (DLR) with up to two (2) homes for display and sale in a Community.  ADI will also provide DLR with a DEALER HANDBOOK that details the procedures and guidelines DLR agrees to follow in order to obtain the Written Authorization to Ship or Occupy, Display Homes and Retail Sold Orders (RSO’s).


• In addition to being able to sell the homes provided as display homes by ADI, DLR can also sell unlimited Customer Ordered/Retail Sold Orders (RSO's).

• DLR will be paid a Flooring Incentive of $1,350.00 per floor by ADI for each RSO invoice paid off in full by DLR.  Any flooring costs incurred on an RSO prior to pay off will be deducted from the Flooring Incentive paid to the DLR.  Payment to DLR will be made within fifteen days after ADI receives the Flooring Incentive money from the manufacturer.  The Flooring Incentive money is paid by the manufacturers on a calendar quarter basis.  The Flooring Incentive of $1,350.00 per floor is added to the price of each home.   Amount is subject to change with written notice.
• ADI generally receives a 10% Volume Incentive from the manufacturers.  Amount is subject to change with written notice.  ADI will pay the DLR a Volume Incentive based on the rebateable invoice amounts of all homes funded during a one year period of time established by the invoice date of the first home purchased by DLR.  The incentives will be paid quarterly (calendar quarters) and are retroactive back to dollar one as each Annual Purchase Volume Plateau is reached. If DLR sells product from more than one manufacturer, fundings from all manufacturers will be combined when determining plateau levels earned.  The Volume Incentive Program (VIP) starts over each year based on the invoice date of the first home purchased by DLR.
• The Volume Incentive earned by DLR is calculated in the same manner as the manufacturers compute the Volume Incentive for ADI. The Volume Incentive will be paid within 15 days after ADI receives the Volume Incentive from the manufacturer (paid on calendar quarters). 

• Provide ADI with a completed application and a video recording of the Community.  With this information ADI will determine to approve the DLR for the program. 

• ADI must confirm product availability for the DLR prior to approving the DLR for the program.

• The DLR must make a minimum deposit of $3,500.00, payable to ADI on each home.  ADI reserves the right to require more than $3,500.00 deposit depending on the cost and complexity of a home and on multiple purchases occurring within the same time frame. The DEALER HANDBOOK details the timing of the Deposit. ADI reserves the right to decline to issue a Purchase Order on any home that in the professional view of ADI is too costly or too complex.

• On all display homes provided by ADI, the Flooring Incentive of $1,350.00 per floor added to the price of each home shall be utilized to pay the flooring costs on the display home(s) provided by ADI for the first 150 days from the invoice date.  

• Should DLR fund the invoice on any display home to ADI prior to the Flooring Incentive dollars being exhausted during the 150 days, DLR shall be entitled to any unused amounts.  Payment to DLR will be made within fifteen days after ADI receives the Flooring Incentive money on the display home(s) from the manufacturer.  Beginning on the 151st day from the invoice date, DLR will pay a non-refundable monthly finance charge equivalent to the interest rate charged by the wholesale finance lenders to ADI on all display homes provided by ADI.  ADI will bill DLR by the 3rd working day of the month following the 150th day and each month thereafter, for payment via Automated Clearing House (ACH) by the 5th working day of each month. The Finance Charge rates are subject to change.

• If the DLR does not fund the total invoice amounts to ADI on display homes provided within 270 days from the invoice date, beginning on the 271st day from the invoice date, DLR agrees to pay via ACH, 1% of the total invoice monthly into a Security Fund until the display home(s) has funded, at which time a refund of the Security Funds (1%) will be sent to the DLR by ADI. If DLR has not funded the total invoice amounts to ADI on display homes provided within 365 days from the invoice date, beginning on the 366th day from the invoice date, DLR agrees to pay via ACH, 2% of the total invoice monthly into a Security Fund until the display home(s) has funded, at which time a refund of the Security Funds (1% & 2%) will be sent to the DLR by ADI.  ADI will bill DLR by the 3rd working day of each month following the 270th day and each month thereafter, for Security Fund payments due by the 5th working day of each month. The Security Fund payment is in addition to the monthly finance charge.   After 365 days, in addition to the monthly interest, the DLR will pay 2% of the invoice into a Security Fund.

• If DLR does not fund the total invoice amount to ADI on all display homes provided within 540 days from the invoice date of said display home(s), DLR must purchase the display home(s) by paying off the total invoice amount minus any Security Funds paid in and less the Deposit on the display home(s).  The display homes(s) will also be discounted for the amount earned in Volume Incentives by DLR.  Prior to the 540th day, ADI will send to DLR an invoice showing the payoff for the display home(s) net of the Security Funds, Deposits and Volume Incentives.  DLR agrees to make full payment of the amount billed to ADI within five (5) business days following the 540th day.  If the DLR fails to pay off the amount billed by ADI, the Security Fund, the Deposit and the Volume Incentives will be forfeited to ADI.  ADI will immediately take possession of the home(s).

• DLR will pay a $500.00 Transaction Fee to ADI for each home funded.  The Dealer Handbook describes the details on when the Transaction Fee is paid.  Amount is subject to change with written notice.  If DLR funds seven (7) or more homes during the one year period of time established by the invoice date of the first home purchased by DLR, then DLR shall receive a refund of all Transaction Fees paid in and DLR shall not be subject to Transaction Fee charges for the balance of the year. Collection of Transaction Fees on funded sales starts over each year based on the invoice date of the first home purchased by DLR.

• DLR will execute a Consignment Home Loss Agreement with the Community Owner.  In the event of default by the DLR, ADI begins operating under the Consignment Home Loss Agreement in place with the Community Owner. 

Let’s say you fund a total of 15 new doublewide homes in a year using $50,000.00 as the rebateable invoice amount of each home.   Of the 15 homes, 13 are RSO’s and 2 are the display homes.  In this example both display homes were sold more than 150 days after the invoice date.  How much would you earn in Volume Incentives? 

15 homes multiplied by $50,000.00 rebateable invoice per home = $750,000.00 in total rebateable invoices for the year.  Hitting this level earns you a Volume Incentive of 6% of the $750,000.00 or $45,000.00 in your pocket over the year!  And that’s not all!

In this example 13 of the homes were customer ordered or RSO’s sales.  Therefore you are also entitled to the Flooring Incentive of $1,350.00 per floor on each RSO.  As all the 13 homes sold were doublewides, the Flooring Incentive on each home is $2,700.00.  $2,700.00 multiplied by 13 homes = $35,100.00 in Flooring Incentives earned over the year!

The total Volume and Flooring Incentives earned for the year on only 15 sales are $80,100.00! 

Remember, this is in addition to the profit earned on the sale of each new home!