RULES AND REGULATIONS STOVER HEIGHTS RETIREMENT COMMUNITY

RULES AND REGULATIONS STOVER HEIGHTS RETIREMENT COMMUNITY A. COMPLIANCE WITH LEASE AGREEMENT. 1. Tenant and Landlord. a. Tenant and Landlord concur that Stover Heights Retirement Community (SHRC) is a retirement community. b. The Tenant must comply with all terms and conditions of the written Rent Agreement and/or oral lease entered into with the Stover Heights Retirement Community owner(s) and/or manager(s), herein referred to as Landlord. 2. Rent. a. Monthly lot rent shall be paid in advance on or before the first day of each month. b. Monthly lot rent payments shall be paid to the Landlord at 4375 Northeast 29th Street, Des Moines, Iowa 50317 at the Stover Heights Retirement Community office. Alternatively, monthly lot rent may be mailed to 1503 Top-O-Hollow Road, Ames, IA 50010. Checks shall be made payable to Stover Heights Retirement Community. c. In the event that any lot rent payment is not paid by the 5th day of the month in advance, a late payment charge of one dollar ($1.00) per day will be imposed as liquidated damages and treated as additional rent due because of the delinquent payment. By acceptance of possession, the Tenant agrees that the actual damages occasioned by late payment are difficult to ascertain with certainty and that the amount of liquidated damages specified above is a reasonable estimate of such actual damages. d. An additional charge of thirty dollars ($30.00) will be assessed for return of any check marked insufficient funds. B. TENANT'S USE OF THE PREMISES. 1. Retirement Age Requirement. a. At least one Tenant residing in each manufactured home must be 55 years of age or older at the time the Rent Agreement is signed. b. The Landlord reserves the right to waive this rule at its discretion in compliance with applicable law. c. If only one Tenant in a manufactured home is 55 years of age or older and that Tenant leaves or dies, other Tenants in the manufactured home may remain unless by doing so they would cause SHRC to lose its status as "housing for older persons" under applicable law. In that event, the Tenants who are not 55

- 2 - years of age or older agree to vacate the manufactured home in a timely manner at the Landlord's request. 2. Children. a. No children are permitted to live or stay in SHRC except as temporary guests. b. All children must be under adult supervision at all times. c. Children are not allowed to play around utility buildings, in other Tenant yards, or in the street. 3. Tenant Occupancy. a. The Tenant shall personally occupy the Tenant's manufactured home only as a dwelling unit. b. Tenant may not rent the manufactured home to any person unless prior written consent is obtained from the Landlord. 4. Vehicles. a. Tenant(s) shall have a maximum of two vehicles parked at the manufactured home. Additional vehicles are to be parked in the overflow area. b. Occasional overnight visitors must park in the overflow area. c. Tenant must obtain a key from the Landlord to the entrance to the overflow area. This key is not to be reproduced and must be surrendered at the time the Tenant vacates the manufactured home. 5. Manufactured Home Placement. a. Because of the need for efficient management, the preservation of values, agreements and understandings with the various providers of utility services, it is necessary for the Landlord to supervise the placement of each manufactured home and the completion of all utility hook-ups. b. Tenants must comply with requirements designed to standardize the methods of utility connections. c. Charges commensurate with such services by the Landlord will be the responsibility of the Tenant. d. The Tenant will be responsible for all utility services to the Tenant's lot (except water, sewage, and refuse collection), and any deposits required by utility providers. e. Tenants must meet all requirements of the City and State Health Department in the use of the premises. f. Utilities may include without limitation sewer, gas, electric, telephone, and cable television. 6. Orderly Conduct. a. All Tenant(s) and their guest must avoid excessive noise, particularly after 10:00 P.M. and before 7:00 A.M. b. Any Tenant who is convicted of serious violation of the laws is subject to immediate eviction.

- 3 - C. IMPROVEMENTS. 1. Making Improvement(s). a. A Tenant may, and is encouraged to, make improvements to his/her manufactured home and/or lot space. b. Tenants must seek and obtain written approval of the Landlord prior to any such improvement(s) being made to either the manufactured home or the premises however. c. All improvements must be confined to the Tenant's leased lot. Upon termination of the SHRC Rent Agreement or SHRC oral lease, any improvements shall remain the property of the Landlord unless the Tenant pays for removal and restoration of the premises. 2. Attached Structures and Flora and Fauna. a. No bushes, hedges, trees, or fences may be planted or erected without prior written approval of the Landlord. b. Tenant shall not do any digging without written prior approval of the Landlord. c. All awnings, carports, garages, steps, porches, storage sheds, or other exterior structural improvements must be approved in advance by the Landlord and confirmed in writing. d. Trees, shrubbery or gardens may not be planted until Tenant has received written approval as to their placement, and shall remain the property of the Landlord unless the Tenant pays for their removal and the subsequent restoration of the premises. e. Tenant is responsible for complying with the city codes and locating utilities before constructing any approved improvements. D. TENANT'S DUTY TO MAINTAIN. 1. Lot and Home Maintenance. a. A Tenant shall maintain his/her lot and manufactured home, in as good a condition as when the Tenant took possession. b. A Tenant must comply with all obligations primarily imposed upon Tenants by applicable provisions of city, county, and state codes materially effecting health and safety. c. A Tenant must keep that part of the Community which the Tenant occupies and uses, reasonably clean and safe as well as disposing of all rubbish, garbage, and other waste as required by applicable local laws. d. The Tenant must maintain his/her lot in a clean and safe manner and not deliberately or negligently destroy, deface, damage, impair or remove any part of the Community or knowingly permit any person to do so. e. The Tenant must conduct himself/herself (and require other persons in the Community with his/her consent to conduct themselves) in a manner that will not disturb the Tenant's neighbors' peaceful enjoyment of the Community.

- 4-2. Noncompliance. a. If a Tenant s failure to comply with his/her duty to maintain his/her manufactured home and lot as noted above materially affects health or safety, or causes destruction or disrepair and the Tenant fails or refuses to correct such failure or make repairs as promptly as conditions require or within fourteen (14) days after written notice from the Landlord; whichever is first, the Landlord may enter the lot (and if also rented, the manufactured home) make the repairs and correct deficiencies, and submit an itemized bill of the costs as additional rent. b. Such costs due to failure of noncompliance shall be due on the first of the month following such submission and shall accrue interest at 12 per cent until paid in full. E. LANDLORD'S RIGHT OF ACCESS AND REPAIR. 1. Emergency Access. a. The Landlord shall have the right to enter a manufactured home owned by a Tenant if such access is necessary to prevent damage to a lot or is in response to an emergency situation. b. The Landlord will honor Tenant privacy as much as is possible in emergency situations. 2. Inspection and Repair. a. The Landlord shall have the right to enter a manufactured home leased by the Tenant from the Landlord to make reasonable inspections of the manufactured home, make necessary or agreed repairs or improvements, supply necessary or agreed services or exhibit the manufactured home to prospective or actual purchasers, mortgagees, Tenants, workers, or contractors. b. Furthermore, the Landlord shall have the right to enter any manufactured home located in the Community at any time when such access is necessary to make inspection or repairs. c. The Landlord may enter onto the lot in order to inspect the lot, make necessary or agreed repairs or improvements, supply necessary or agreed services or exhibit the space to prospective or actual purchasers, mortgagees, Tenants, workers, or contractors. If the Tenant refuses to allow lawful access to the manufactured home or lot, the Landlord may terminate the Rent Agreement and recover actual damages sustained. F. MISCELLANEOUS. 1. Adequate Anchoring. a. All manufactured homes shall be continuously equipped with adequate tiedowns as pre-approved by the Landlord or required by law. b. Annual inspections of anchoring systems may be required by the Landlord. 2. Sale of a Manufactured Home.

- 5 - a. A Tenant may sell his/her manufactured home if the manufactured home is to be moved from the Community. b. Should the Tenant sell his/her manufactured home to a person or persons wishing to live in the manufactured home in the Community, then the Landlord reserves the right to approve or disapprove the purchaser of such manufactured home as a Tenant. c. In the event of a sale to a third party and in order to upgrade the Community, the Landlord may require that any manufactured home in a run-down condition or in disrepair be removed from the Community within sixty (60) days. 3. Porch and Patio. a. Any home coming into the Community must have a Porch and Patio cover whose size will depend on the size of the manufactured home. b. Any manufactured home sold and allowed to remain in the Community must meet the same requirements as new manufactured homes coming in and have a Porch and Patio cover and approved vertical skirting. 4. Abandonment of the Manufactured Home. a. If a Tenant abandons a manufactured home on a lot, the Landlord may notify the legal owner and/or lien holder of the manufactured home and inform such owner or lien holder of the liability for any costs incurred providing space for such manufactured home, including rent and utilities due and owing. The legal owner and lien holder are jointly and severally responsible for payment of such costs. b. The abandoned manufactured home may not be moved from the lot without a written consent from the Landlord showing clearance for removal and that all monies due and owing have been paid in full, or an alternate agreement has been reached between the legal owner and the Landlord. 5. Termination of the Lease Period and Deposit Return. a. Upon termination of the lease period, the Tenant shall provide the Landlord with a mailing address or instructions as to how the Tenant can be reached. b. Within thirty (30) days of such termination and delivery of a mailing address or instructions, the Landlord will return the Tenant's lot rent deposit or a written statement of reasons for withholding said rent deposit or any portion thereof. c. If no mailing address or instructions are provided to the Landlord within one year of the termination of the tenancy, the rent deposit shall become the property of the Landlord. 6. Change in the Application and Registration Form. a. Tenant will notify the Landlord of any change in the information contained in the Application and Registration Form within ten (10) days of the change. b. Such changes must be given to the Landlord in a written form.

- 6-7. Change in the Rules and Regulations. a. The Landlord reserves the right to make changes, additions, deletions, or amendments to the Rules and Regulations governing the Tenant's use and occupancy. b. Notice of changes in the Rules and Regulations will be given to all Tenants thirty (30) days before they become effective. 8. Water Usage. a. Residents shall make all efforts to conserve water. b. Lawns shall not be watered, except with the prior written approval of the Landlord. c. Trees, shrubs, flowers, new sod, or seed may be watered, but not in excess. d. Motor vehicles may be washed only using a bucket of water. e. Washing clothes for non-residents is prohibited. 9. Guests. a. A guest is considered to be anyone other than the Tenant(s) listed on the Application and Registration Form. Only persons approved by the Landlord and listed on the Application and Registration Form executed by the Tenant(s) may occupy the manufactured home. b. Residents are permitted to have an occasional non-resident house guest for a period of up to two weeks at no additional charge. c. Tenants who wish to have guests longer than two weeks must obtain prior written approval from the Landlord and there will be assessed a minimum charge per month equal to one-half of the current month's rent which shall be due and payable in advance. d. Any arrangement for a visit of more than two weeks does not constitute acceptance of a non-resident guest as a permanent resident. e. The Landlord reserves the right to deny admittance to any visitor to the Community and to deny access to anyone that the Landlord reasonably believes will be disorderly or who will fail to abide by these Rules and Regulations. f. Tenants will be held responsible for the conduct of their guests. 10. Signs. a. No "For Sale" or "For Rent" signs or any other advertising signs are permitted anywhere in the Community. b. No peddling, soliciting or commercial enterprise is allowed in the Community without the written consent of the Landlord. Commercial enterprise includes, but is not limited to, babysitting for individuals other than registered Community Tenants on a regular basis. 11. Air Conditioner. a. Window air conditioners are permitted in the manufactured homes only with the prior written approval of the Landlord. Such units must not be installed in

- 7 - the front, "street" side of the home, and may not be located anywhere inordinate noise will be caused to the detriment of others. b. Central air conditioning is recommended for all manufactured homes in the Community. 12. Pets. a. Pets are not permitted (particularly dogs and cats) in the Community. b. Any Tenant who houses a pet will face immediate eviction from the Community. 13. Laundry. a. No laundry may be hung outside the manufactured home except on umbrellatype lines, which must be located at the rear of the lot. b. Laundry must not be left outside overnight. 14. Wheels and Skirting. a. Wheels must be removed before a manufactured home is blocked and tied down. b. All manufactured homes must be skirted and winterized within sixty (60) days of entry (weather permitting) using skirting approved by the Landlord. c. Tenant(s) must continuously maintain all skirting. 15. Water, Sewer, Gas Lines, Cable Lines, or Telephone Lines. a. Any maintenance or repair of water, sewer, gas, cable, or telephone lines above ground will be charged to the Tenant. b. Tenant water lines must be appropriately heat taped at all times. 16. Lot Maintenance and Manufactured Home Upkeep. a. It is the responsibility of each Tenant to keep his/her lawn mowed and trimmed using his/her own lawn maintenance equipment. b. The Tenant and must keep his/her space free from trash and litter. If lawn and lot maintenance are neglected by the Tenant, the Landlord reserves the right to perform this maintenance at the rate of $25.00 per hour (with a minimum charge of $25.00), which will be treated as additional rent due on the first day of the following month. c. All toys and miscellaneous items must be kept out of the front yards at all times, except when in actual use. d. The Tenant s yard and patio shall be kept clear of all lawnmowers, tires, tools, etc. at all times. e. There shall be no motorcycles, motorbikes, minibikes, mopeds, go-carts or snowmobiles allowed at the Tenant s lot in the Community without the express permission of the Landlord. f. Burning of trash or leaves in a Tenant s yard is not permitted. g. Exterior paint colors on manufactured homes, fencing, sheds, etc. must be approved in advance by the Landlord. Tenants will be responsible for exterior repainting required to keep the leased premises in an attractive manner and consistent with a uniform standard of appearance established by the Landlord.

- 8 - h. Manufactured homes cannot be moved in or out without the Landlord being present to supervise said movement. No manufactured home may be moved out of the Community without all sums of money due to the Landlord being paid in full. i. Yard lights must be kept clean and lit, where applicable. 17. Garbage Collection. a. Garbage will be collected from the curb at regular scheduled intervals. b. Garbage must be in plastic bags or boxes and placed in trash receptacles. c. Trash receptacles are to be kept at the rear of the manufactured home and enclosed so they are not noticeable except at the time of refuse collection. 18. Insurance. a. The Rent Agreement requires that the Tenant maintain liability insurance naming the Landlord as an insured as it relates to the manufactured home lot rented by the Tenant. b. Tenant will not use the premises for any purpose deemed hazardous by insurance companies carrying insurance thereon. 19. Overflow Parking Lot. a. Boats, travel trailers, campers, and motor homes must be parked in the north overflow lot only, in a uniform manner, and may be taken to the Tenant s lot only to load and unload. b. No Tenant shall have more than one vehicle in the overflow lot, and the vehicle must be currently in use, and may not be permanently stored in the storage lot. c. Any such vehicle must either be clearly marked with the Tenant's name or reported to the Landlord. 20. Water and Sewer Lines. a. The Landlord will keep the main and trunk sewer and water lines open and running free at all times. Any stoppage which requires 25 feet or less of sewer clearing will be the responsibility of the Tenant. b. Any stoppage of the branch line or freezing of water pipes is the responsibility of the Tenant. c. All lines must be properly protected during winter months by insulation and heat tape. The Tenant is responsible for periodically checking heat tape and replacing them as needed. d. No running water to prevent freezing of pipes will be allowed. 21. Parking. a. Tenants are not permitted to park in the street at any time. b. No parking is allowed on the streets during the night. c. Guests must park in the Tenant's driveway if there is room to do so. d. Under no circumstances will parking be permitted on lawns or where blocking pedestrian ways. e. Under no circumstances will parking of semi-trucks or semi-truck tractors be

- 9 - permitted on the streets or in any driveways. f. No large trucks are permitted to be parked at a Tenant lot in the Community. g. No parking on the street during snow removal is allowed. 22. Vehicle Repair or Non Running Vehicles. a. No repairing of vehicles or mechanical work on vehicles is permitted in the Community. b. Motor vehicles not able to run on their own power will not be allowed in the Community beyond a reasonable time period. c. After a reasonable time period, such vehicles will be towed away at the Tenant s expense and the towing charges immediately due with the next scheduled lot rent. 23. Snow Removal. a. The Tenant assumes responsibility for snow removal from his/her walk and driveway unless the Landlord agrees to do so at his election. b. No parking in the street is allowed during snow storms or snow removal. 24. Storage Shed. a. Each Tenant may have a storage shed of a design and constructed with building materials approved in advance by the Landlord. b. The storage shed must be placed at the rear of the home. Any other location for a shed must be approved in advance by the Landlord in writing. c. The storage shed must have a concrete foundation. 25. Local Ordinances. a. Stover Heights Retirement Community is considered a part of the City of Des Moines by annexation. b. Pursuant to Section 20-33 of the Fire Protection Ordinance of Des Moines, each home must be equipped at all times with one approved U.L. listed fire extinguisher of not less than 5-B-C rating. c. Smoke detectors should also be installed by each Tenant within the manufactured home. d. The speed limit in the Community is 10 miles per hour and must be strictly observed. 26. Accidents and Access. a. The Landlord and its agents will not be responsible for loss due to fire, theft, or accident, including any accident arising on the grounds of the Community if not attributable to negligence of Landlord. b. The Tenant will permit access under, around, and throughout the manufactured home, upon receiving notice (as is feasible under the circumstances) for the purpose of repairing or inspecting the water system, or inspecting, flushing, or tagging any water hydrant.

- 10 - G. SPECIAL PROVISIONS REGARDING ILLEGAL DRUGS. 1. Tenants are prohibited from participating in any illegal activity in the Community, including the use, transfer, possession, creation, or storage of illegal drugs. Any Tenant who violates this provision will have his/her Rent Agreement immediately terminated as allowed by law. The Landlord shall have the right to inspect periodically all common areas of the Community for evidence of illegal drug activity. 2. The Landlord will maintain a record of all suspicious activity suggesting the presence of illegal drugs and, if deemed appropriate, suspicious activity will be reported to the local police department and the federal Drug Enforcement Agency. H. LANDLORD AND TENANT RELATIONS. 1. Tenant cooperation in following the Rules and Regulations is sincerely appreciated and the Landlord will be happy to discuss any questions regarding the Rules and Regulations, Tenants may contact Mr. Kim Sharp and/or Mrs. Janet Sharp at 515/233-1285 or toll free at 262-6939 with questions. 2. Any exception to the Rules and Regulations must be in writing from the Landlord. I. ACKNOWLEDGEMENT AND ADHERENCE. 1. I acknowledge receiving a copy of the Rules and Regulations. 2. I agree to adhere to the Rules and Regulations. 3. I agree that non adherence to the Rules and Regulations may constitute adequate reasons for immediate eviction from the Community. Tenant Date Tenant Date Tenant Date Landlord Date