The General Partner will provide a preliminary plat to all partners and Reservation Holders seven days in advance notice of the lot selection event. The plat will include a sales price for each lot available for commitment through a Deposit Agreement. The development plan may be phased such that only certain lots are included in the plat and selection process at each lot selection event. This process will be repeated as later phases are platted and priced. No lots will be offered to non-partners until the partners have first had the opportunity to participate in a lot selection process for those lots. No lots will be offered at a price lower than what has been first offered to the partners. If the price on any lot or group of lots is reduced, it shall first be offered to the partners at that lowered price.

At the lot selection event, 100 slips of paper will be put into a blind box and mixed well. Each partner will be assigned a certain number of the paper slips, according to that partner’s ownership interest in SM Ranch Partners, Ltd. If a partner does not wish to participate in the lot selection process, that partner may designate all or a portion of its participation rights to another partner or partners. (Click here to view the Assignment of Lot Selection Interest form.) If a partner does not wish to participate in the lot selection process or designate its selection rights to another partner, then that partner’s paper slips will not be placed into the box. Any non-partners who have entered into a Builder Commitment Reservation Agreement with a Builder associated with one of the partners will have their lot selection performed by the partner-sponsor of that Builder. The partner-sponsor selecting lots for individuals who have entered into a Builder Commitment Reservation Agreement may decide for themselves the order in which they will allocate the selection of their lots resulting from the selection process.

One slip of paper will be drawn at a time from the box. As each slip of paper is drawn, the partner (or that partner’s designee) identified on the slip drawn will have the right to enter into a Deposit Agreement for a specific available lot at that time. At the time a lot is selected by a partner, the non-refundable deposit of $10,000 per lot is payable according to the terms of the Deposit Agreement. If a partner selects a lot on behalf of a non-partner who has entered into a Builder Commitment Reservation Agreement with that partner, the subject Reservation holder must enter into a Deposit Agreement for the purchase of that lot at that time. If the partner identified on the drawn paper slip does not wish to purchase any more lots at that time, the paper slip will be discarded and another slip drawn to allow another partner to select. This process will repeat by drawing more paper slips until there are no more partners who wish to enter into Deposit Agreements on any more lots.

Within two days following the lot selection event by the partners, those non-partners who have entered into Reservation Agreements will be notified as to the remaining available lots. Each Reservation holder will be contacted in the order of receipt of their Reservation deposit to allow them to enter into a Deposit Agreement for a specific lot. If a Reservation holder does not wish to select any of the remaining lots available for Deposit Agreements at that time, they may choose to have their deposit returned and their Reservation Agreement terminated, or they may choose to have their Reservation deposit remain in effect for selection of a lot in a later phase.