Entrance Fee Agreement

ENTRANCE FEE AGREEMENT

This Entrance Fee Agreement ("Agreement") is entered into as of by and between Community Name: , a provider of residential and care services whose principal place of business is located at (hereinafter "Operator"), and Resident Name: , currently residing at (hereinafter "Resident"). Operator and Resident are each a Party and together the Parties.

RECITALS

WHEREAS, Operator owns and operates a residential community offering housing, amenities and certain care or support services for eligible persons; and

WHEREAS, Resident desires to obtain a right of occupancy and access to community services in exchange for payment of an entrance fee and compliance with the terms of this Agreement; and

WHEREAS, the Parties intend that the entrance fee payment will secure the Resident's right to occupy the assigned unit subject to the terms set forth herein.

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, the Parties agree as follows:

1. DEFINITIONS

In this Agreement, unless the context otherwise requires: "Entrance Fee" means the gross amount payable by Resident under Section 2; "Net Refund" means the amount, if any, payable to Resident or Resident's estate upon termination or resale as computed in Section 5; "Unit" means the residential accommodation described in Section 3.

2. ENTRANCE FEE PAYMENT

2.1 Entrance Fee Amount. Resident shall pay to Operator an Entrance Fee in the principal amount of (the "Entrance Fee").

2.2 Payment Terms. The Entrance Fee shall be paid as follows: Deposit of upon execution of this Agreement, with the balance due in full on or before . Operator may retain interest earned on funds prior to application.

2.3 Security Interest. To secure obligations under this Agreement, Resident grants Operator a security interest in any refundable portion of the Entrance Fee and any rights thereto, to the extent permitted by applicable law.

3. RIGHT TO OCCUPANCY

3.1 Unit Assignment. Operator shall assign to Resident the Unit described as .

3.2 Occupancy Date and Term. Resident shall be entitled to occupy the Unit commencing on and continuing for the Resident's lifetime or until earlier termination under this Agreement.

4. SERVICES, MAINTENANCE AND FEES

4.1 Services Included. Operator shall provide the following services as part of the Entrance Fee and ongoing service fee obligations:

4.2 Monthly Service Fee. Resident shall pay a monthly service fee for routine services and utilities in the amount of , payable in advance on the first day of each month.

5. RESALE, REFUND AND NET REFUND CALCULATION

5.1 Refund Policy. The Entrance Fee shall be refundable non-refundable. If refundable is selected, the Parties agree that the Net Refund shall be calculated as provided in Section 5.2.

5.2 Net Refund Formula. If applicable, upon termination of occupancy and following resale of the Unit, the Net Refund payable to Resident or Resident's estate shall equal the Entrance Fee multiplied by (expressed as a decimal), less any amounts due to Operator for unpaid service fees, repairs for damage caused by Resident beyond reasonable wear and tear, and any unpaid obligations under this Agreement. The obligation to pay a Net Refund is conditioned upon resale of the Unit at fair market value.

5.3 Refund Period. The Parties acknowledge that resale and refund events may occur over time and that Operator shall make commercially reasonable efforts to resell the Unit promptly. The refund calculation period shall be years for purposes of certain promotional refund guarantees, if any.

6. DEFAULT, REMEDIES AND TERMINATION

6.1 Events of Default. Resident shall be in default if Resident fails to pay any fee when due, materially breaches a covenant under this Agreement, engages in conduct that endangers others or the Unit, or otherwise fails to cure a breach within days after written notice from Operator.

6.2 Remedies. Upon an Event of Default, Operator may pursue any remedies available at law or in equity, including termination of occupancy, eviction where permitted by law, setoff against any refundable amounts, and recovery of damages.

7. TRANSFER AND ASSIGNMENT

7.1 Assignment by Resident. Resident may not assign or transfer Resident's rights under this Agreement except as expressly permitted in writing by Operator. Any attempted assignment without consent shall be void.

7.2 Assignment by Operator. Operator may assign its rights and obligations under this Agreement, provided that any assignee assumes Operator's obligations hereunder in writing and provides written notice to Resident.

8. NOTICES

Notices shall be in writing and delivered personally, by certified mail (return receipt requested), or by overnight courier to the addresses set forth above or to such other address as either Party may designate by written notice. Notice shall be effective upon receipt.

9. AMENDMENTS; WAIVER

This Agreement may be amended only by a written instrument signed by both Parties. No waiver of any breach shall be effective unless in writing; a waiver of one breach shall not constitute a waiver of any other breach.

10. GOVERNING LAW; DISPUTE RESOLUTION

This Agreement shall be governed by and construed in accordance with the laws of the State of , without regard to its conflict of laws principles. Any dispute arising out of or related to this Agreement shall be resolved as follows: the Parties shall first attempt good faith negotiation; if unresolved, the Parties may pursue mediation or litigation as permitted by applicable law.

11. ENTIRE AGREEMENT; SEVERABILITY

11.1 Entire Agreement. This Agreement, together with any exhibits or addenda executed by the Parties, constitutes the entire agreement between the Parties regarding the Entrance Fee and the matters addressed herein and supersedes all prior agreements and understandings, oral or written.

11.2 Severability. If any provision of this Agreement is determined to be invalid or unenforceable under applicable law, such provision shall be modified to the extent necessary to render it valid and enforceable or, if modification is not possible, severed, and the remaining provisions shall remain in full force and effect.

12. MISCELLANEOUS

12.1 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which constitute one instrument. Signatures delivered by electronic means shall be effective as originals.

12.2 Interpretation. Headings are for convenience only and shall not affect interpretation. The words "includes" and "including" shall be construed without limitation.

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