K=Kit Purchase, L=Built to Lock-up , C=Built to Completion

1. Client discusses plans, site positioning, family requirements and budget for future dwelling
with a representative of Appalachian Log Homes.

2. L&C- Appalachian Log Homes performs a site inspection. This is a free service if the land
is in the Blue Mountains and the client owns the land (second inspections incur a $100 fee).

3. Appalachian Log Homes prepares a +/- 5% estimate.

4. Client accepts the estimate, pays $2000 plan preparation fee and a formal quote is drawn up. This quotation is valid for 30 days.

5. Client accepts quotation in writing and pays a 5% (less the $2000 plan fee) and signs an agreement to prepare plans for council submission. This deposit is non refundable but is included in the contract price.

6. Appalachian Log Homes prepares plans and forwards Home Owners Warranty application for owner to pay and submit. Home Owners Warranty is not included in the contract price.

7. Client approves plans

8. K-The client then signs an Agreement to Purchase a Kit contract. Appalachian Log Homes forwards the client all plans, specifications and Home Warranty Certificate required for council submission. (It is the client's responsibility to submit plans and to pay all required council fees) Appalachian Log Homes will liase with council on relevant building or technical requirements.

8. L&C- The client forwards cheque for all relevant council fees. Council fees are not included in the price, and must be paid by the client as no contracts have been signed at this stage. Appalachian Log Homes submits plans, engineering certificates, Warranty Insurance certificates and specifications to council.

9. C-Client and Appalachian Log Homes representative meet to discuss and choose PC items, electrical layout, paints and stains, kitchen layout and tile selection.

10. Council approval is received.

11. L&C-Appalchian Log Homes prepares contracts.

12. K-Client notifies Appalachian Log Homes in writing of desired delivery date, and forwards a detailed  map of access to the site for delivery instructions.

12. L&C-Client signs contract.

13. K-Appalachian Log Home advises client of delivery date.

13. L-Client organizes water and power to site.

13. C-Appalachian Log Homes commences building within 20 working days after signing contract and receiving notification to proceed from lending authority or evidence of ability to pay from client and proof of ownership of the land.

14. K-Client pays remaining balance at least seven days prior to delivery date into trust account or has a bank cheque ready for COD. Timber will not be unloaded from truck until payment is received.

14. L- Appalachian Log Homes commences building three weeks after signing contract and receiving notification to proceed from lending authority unless water or power to site are not organized.

15. K-Appalachian Log Homes delivers stage 1 materials to client's site.

16. K-Client notifies Appalachian Log Homes of the roofing iron lengths required at least five working days prior to roofing delivery, and pays final progress payment.

17. K- Appalachian Log Homes delivers stage 2 materials.

Appalachian Log Homes reserves the right to alter these procedures at any time.